BANKRUPT DIRECTOR

Dominion, Volume 27, Issue 188, 8 May 1934, Page 2

BANKRUPT DIRECTOR

Former Head of Boys’ Institute CREDITORS DISSATISFIED Dissatisfaction with the affairs of a bankrupt, William John Jordan, formerly director of the Boys’ Institute, Wellington, was expressed by his creditors at a meeting held before the official assignee, Mr. S. Tansiey, at. Wellington, yesterday. Mr. D. IV. Virtue appeared for Bankrupt. Jordan was question at length by Mr. Tansiey and b.v several creditors, and the following resolution was passed without dissent: “That the matter of the bankruptcy of William John Jordan be placed in the hands of the Crown Solicitor.” The statement of accounts showed: Amount owing to unsecured creditors. £783/19/8; assets estimated at £270 2/6; deficiency, £528/17/2. The principal unsecured creditors were Mrs. K. C. Campbell (Eastbourne), £200; Turnbull and Co., grocers. £80; P. Brown, grocer. £6O; W. H. Graham, £55; Mrs. V. C. Greer, widow. £53/5/-; Sir A. Robin, £2O: J. Lyinons (Foxton), £5O; T. C. Brash, secretary, £39/1/9; J. Davidson, caretaker, £l5; J. Harrison, motor mechanic, £4O/10/6; J. A. Logan, grocer, £36; R. Osborne, £ll/11/6.

Up to June of last year, said bankrupt, in a statement, he was in tne employ of the Wellington Boys’ Institute as director. He held the position for approximately eight years, during which time his salary fluctuated. but averaged approximately £360. Up to the end of 1929 he had no difficulty in providing for his wife, bis daughter, and himself, out of his salary, and incurred substantially no debts. About that time, however, his wife had a serious illness, which involved him in heavy expense,''including hospital and doctors’ fees. Ou his wife’s recovery to some extent, they decided to move temporarily to Mahin’a Bay. with a view to giving her every chance to recover. They were there for approximately six months, during which time his house in town was let, but the tenant failed to pay the rent, and the bankrupt lost substantially the rent for the whole of that period. Wife’s Health.

A material factor in his decision to shift to Mahina , Bay, said bankrupt, was the fact that it had been suggested to them that if bls’ wife’s health permitted she should take over, the duties of matron at the institute. That would mean that they would be in receipt of a salary of approximately £350 per annum, with free quarters. On their return to town his wife’s health was still indifferent, and he shifted to Rona Bay, where they remained for about 18 months. During that time the house in town was let, and the rent was paid satisfactorily. During that time his wife’s health was indifferent. On their return to town, his own health, which had been bad, gave way, and he was compelled to take things easy for live or six months. The position, however, did not improve, his own health got worse, and he was obliged to tender his resignation to the management ot the institute.

Bankrupt said that .during his period as director of the institute there were always heavy drains on his pocket, which he could not recover from the institute. The management of the institute suggested that' he should, for his duties, acquire a car, which he did, tne institute allowing him 15/- a week toward its running expenses. Since 1928 he had paid approximately £5 a monOi tp the motor company in reduction of the price of the various cars.

The bankrupt attributed his failure to the fact that to a large extent lie had to borrow to live at Eastbourne with a view to hdving his wife sufficiently recovered to take on the duties of matron of the institute, which job unfortunately did not materialise. In addition, liis duties as director of the institute meant that he was obliged op many occasions to provide boys with money or clothes. He had not been guilty of any extravagance, nor had he spent his borrowings or salary in any direction other than was indicated in his statement. Loss of Memory. ■ The Official Assignee said it appeared that extending over a certain period the bankrupt had borrowed about £6ll. It looked as if during that time Jordan had lived on loans. In reply to Mr. Tansiey, bankrupt said his memory was not good after his illiless, and he could not give details in connection with his borrowings. He ad-, mitted borrowing £2OO from Mrs. Campbell and also having borrowed money from other creditors, but he could not recollect what he did with the money or the balance of the amounts still unpaid. He denied that he gambled or drank; the money* was spent in the ordinary way of living. Bankrupt admitted that statements made in letters written by him to creditors —promises to repay money—were in some cases untrue, and were only “blinds” to put the creditors off. The Official Assignee: It seems to me, to say the least of it, that bankrupt has been dishonest. After some discussion the motion was carried placing the bankruptcy in the hands of the "Crown Solicitor.