CANVASSER'S FAILURE

Evening Post, Volume CII, Issue 150, 22 December 1921, Page 8

CANVASSER'S FAILURE

"A SCANDALOUS BUSINESS"

COMMENTS BY THE ASSIGNEE.

"I think this is a scandalous business. Here is a man with no one dependent on him with 71 creditors representing £342. I don't think, the BankruptcyAct was intended to protect a man like this." These? remarks were made by the Official Assignee (Mr. S. Tanaley) yesterday afternoon at the meeting of creditors of Thomas Joseph Levett, insurance canvasser. Bankrupt was represented by Mr. W. Brown. It was shown that there was owing to unsecured creditors a sum of £342 13s 6d, made up of various amounts' ranging from 13s 6d to £25 ss. Hotel bills accounted for some part of the deficiency as well is moneys owing to tailors and mercers. I

Bankrupt, in his statement, said that he left New Zealand with the N.Z.E.F. in August, 1916, and returned in October, 1917, from. Egypt, having been accidentally wounded in the scalp. At the end of October, 1918, he commenced business as a commission agent with a Mr. K. Pitt. He put £40 into the business and his partner £20. The business was not a success, and Pitt left him within three weeke of commencement. He had a few debts before going into business, but that threw him into further debt. The business was taken over by a Mr. O'Farrell, for whom he signed an 1.0. U. for £20 in order that he could defray hie debts in the business. Pitt was not financial, and paid none of the debts. After leaving Dwan Broß. in October, 1919, he went to Wairoa (Hawkes Bay) and worked on a farm for £1 a. week. Whilst in Wairoa he was wrongfully charged with stabbing a Maori, and. the legal expenses in defending the charge ran him into considerable debt. He was at present in the employ of an insurance company. He had no assets whatever, but was willing to pay a certain amount per week towards the reduction of his liabilities.

The Assignee commented on bankrupt's hotel bills, and remarked that Levett seemed to have run round the country, and walked into hotels and out again without paying anything. "I think it is a disgraceful state x of affairs for a single man," observed Mr. Tansley: „ . . "I think it is pretty rough on the creditors." In reply to the Assignee, bankrupt said that the majority of the debts represented borrowed money. The Assignee: " What did you borrow it for —to pay someone else?" Bankrupt: " Yes." Levett informed another creditor (Mr. W. G. Mellish) that he did not gamble, but admitted that he drank.

Mr. Mellish suggested that drink was the " gist of the whole business." After the Assignee had drawn attention to the fact that bankrupt seemed to have enough clothes, boots, and gloves to stock a,, shop, Levett said he admitted that lie had been reckless. He was prepared to devote 25 per cent, of his monthly earnings from life-insurance commissions to paying his creditors. In the past three months his earnings averaged about £4 to £5 a week. It was stated in the subsequent proceedings that bankrupt's employer would hand over Levett's monthly earnings to the Official Assigne.3 in order that the 25 per cent, might be deducted. " You had better darn up your old socks, because I am noi going to give you much a week to l'.ve on," said the Assignee to bankrupt, who admitted that £135 out of the £342 was borrowed money. ■ "The other is board, taxis, solicitors, dentists—and don't forget the tailor," Mr. Tansley added.

Mr. C. B. Walker, who appeared on behalf of several creditors, said that many a man was imprisoned for doing less than what bankrupt had done. " That is my opinion of what you deserve for lack of conscience," said Mr. Walker.

"It is lack of thought," replied bankrupt. The I creditors agreed with Levett's proposition that be should take out a prohibition orde? against himself, and, on the motion o! Mr. Walker, it was decided that 25 per cent, of bankrupt's weekly earnings up to £4 should be paid to the Official Assignee, and that if the earnings exceeded £4, then 50 per cent, of thb excess should be paid over: Bankrupt ia to be allowed a minimum of £3 per week •for his keep and expenses.