BANKRUPT BUILDER

Evening Post, Volume CVIII, Issue 45, 21 August 1924, Page 6

BANKRUPT BUILDER

BUSINESS WITHOUT CAPITAL

DISSATISFIED MEETING OF CREDITORS.

- Ail endeavour to carry on his* business, as a builder without having the necessary capital resulted in Thomas William Welch drifting into financial difficulties, and to-day the meeting tit creditors in his bankrupt estate was held. The Official Assignee, Mr. S. Tansley, presided. •

I Ihe principal creditors were:—The Westiand Timber Co., £205 13s 7dGeorge Haigh, £248 Os 2d; C. W Martin plumber £273 10s; E. W. Mills and Co Ltd., £134 0s lid; Stewart | timber, Glass, and Hardware Co., Ltd £51 17s 9d; Harry Fisher, £51 17s 9d; ,g^"'llfe Co., £67 7s sd*; Coutts Bros., iM 5s 3d. Unsecured creditors were few 1/ 11 o^ 8 7s 8d' secllred "'editors £458 4s 9d, less estimated value- oi securities £708 4s 9d, surplus to contra £250, other liabilities £3507. 5s lid Assets included stock-in-trade at Devon street, City, and Ava street, Petone, *±65; book debts £50, furniture'£2o property £19E0, mortgage £950, surR I !ec,°f es in hands o£ creditors £250; total £3385. The deficiency was shown as being £122 5s lid. In his sworn statement, the bankrupt said that early in June/ 193 he considered that he. could make money by agreeing to buy sections on a small deposit, build on sections,, raise a first loan from the Government, and arrange for second mortgages, and' on a sale of the various properties to. pay for . all materials, etc., to be supplied, and reap' a profit on each transaction.. Ho was told by a solicitor that he would have no -difficulty in arranging temporary finance pending Government loans be"ing granted for any building agreements he might enter into to follow one another in rotation, but after he had committed himself by entering into agreements to build one bungalow at Petone and another at Lower Hutt, he was informed that, his clients, upon whom lie was relying for-the finance, had invested the money in War Bonds. It was not until October that he could arrange through another firm of solicitors, who deSnitely promised to finance him, only to be again disappointed after he had ordered the timber for one of the bungalows. It was not until the middle of January this year that he was able to make- a start with the first building after a delay of six months. Since then lie had built and completed two bungalows and more than half-finished another, -in Devon street, valued recently as it stands for mortgage purposes at £1220, and estimated cost of completion at £400.

In tlie middle of last March, the statement continued, bankrupt became ill and was ordered by a doctor to a private hospital, and since then he had only been able to attend to business intermittently, and in a perfunctory manner. Delays and sickness referred to coupled with heavy domestic expenses through family illnesses and troubles, all combined (which cost in all £630) led to the present unfortunate position, and t.ut for these, on the lines he was working, bankrupt was confident he would »aye had a fair surplus of assets over liabilities, and the necessity of filing his petition would not have arisen. He had drawn out of the business about £300 since June, 1923, and most of this had gone m medical, hospital, and dental expenses.

t Mr. J. O'Donovan (for Harry Fisher): What were you doing last year?" Bankrupt: " I was looking for finance. iwo lawyers disappointed me." "Did you have any income?"—"No 1 was looking for money for fully six months." "How did you spend £300 on doc- • ,7" lilele was ovel' in medicines.

" How much did-you spend on drink?" — ( Very little." ': Wasn't drink the trouble?"—" No " Mr. A. Blair (for Mr. Martin)- "I ,S Ur OWn fl Sures: There is £2000 of which you tcok£62o for yourself and family. That leaves £1670* that you spent somewhere else. Is that cor-

Bankrupt: "Yes, that is so" Mr. Blair: " Well, you owe £1800 to your creditors-add to this £1670, and that makes a total of £5470. It must sent"' ei' e: In What. " H «P«-

_ Bankrupt read his statement of assets m regard to his properties, but Mr Blair remarked': "Those are only paper ™™f« Want hard Cash- Yo" eitn«' spent the money or you owe it " Bankrupt: "I have received £2300 ess £630 that I have-drawn, which leaves £1670, the balance of what I received. If you add the £1800 it makes it confusing." Mr. Blair: "It may .confuse you, but it does not confuse the creditors. . What "Jinn. 1." the Lower Hutt Property?"—

"All right. That's £303. How about letone? ■ '

Bankrupt attempted to make some explanation in regard to equities, but Mr Blair interjected. "Don't talk equities, h e said. "How much did you pay for those sections. You paid £5 each didnt you?"—"I paid £24 for the sections.

Mr. Blair said that £820 had been SJ^!i °n }} ie D? V011 street Proporty and ib/4 on the suburban lands. This was a total of £1494 to represent £3470 the bankrupt had spent." Mr.' D. Jackson (for the bankrupt): Its the same old thing. A man who starts in business without the necessary capital is looking for .trouble." It Was stated that the Devon street property was the bankrupt's only real asset. It would take £4QO to complete this, and it would then h e worth £1600 Here at least was £300. It was finally decided that the Official Assisrnee should offer bankrupt's interest in the Devon street property for "sale and endeavour to make a definite allocation to the Evans Bay Timber Company, the holders of the mortgage on the property.