NOT SATISFACTORY

Evening Post, Volume CIX, Issue 120, 25 May 1925, Page 6

NOT SATISFACTORY

EXPLANATION OF BANKRUPTCY

AN INSOLVENT BUILDER,

Creditors were" not at all satisfied with, the explanation of his bankruptcy given by Abraham Levy M'Duff, a builder, at a meeting of creditors held before the Official Assignee (Mr. S. Tansley) to-day. After bankrupt had been exhaustively cross-examined, the meeting was adjourned to enable him to produce a comprehensive statement of his business transactions over the past three years. Unsecured creditors were shown at £2083 4s 8d; secured creditors at £225; less estimated value of securities, £375; surplus to contra £150; tctal debts, £2083 4s Bd. The assets shown were: Book debts, £654 5s lOd, estimated to produce £550; cash on trust with the Commercial Agency, £130; property, £700; surplus from securities in hands of secured creditors, £150: deficiency, £553 4s Bd.

The principal unsecured creditors were: J. A. M'Gregor, plumber. £376^ ss; J. M'Donald, bricklayer, £115; II T. Barnes, architect, £190; E. W. Mills and Co., Ltd., £161 14s 2d; Captain D. Donaldson, £335 12s 8d; Evans Bay Timber Company, £408 10s; Moran and Gilling, builders, £84 8s 7d; W. Wells, electrician, £56 10s.

The bankrupt, who was represented by Mr. Linklater, arrived late at the meeting, and the Official Assignee asked if he had any excuse to offer for not being punctual. "You are Mate with your papers and late for the meeting," *Mr. Tansley observed. "I would like to mention to the creditors, that the bankrupt lias only put in his papers this morning, and then I can't make' head or tail of them." WOULD HAVE BEEN ABLE TO PAY. In the course' of a long statement dealing with his business transactions, the bankrupt remarked that had he not been pressed by some of the larger creditors, he would have been able to pay all his creditors in full within twelve months. Owing to his financial position, he had not been able to buy in the b_est markets, and had consequently not been able to reap the fullest benefit from the work in which he'had been engaged. • He was at present employed by Mr. E. Foster, supervising the erection of a residence. His wages averaged £7 4s per week.

The Official Assignee : "You say that, if you had not been pressed by some of your creditors, you would have been able to pay . twenty, shillings . in the pound. My opinion is that if you had not been pressed you would'be owing £5000." ;.■■;■ ' ■

In reply to a'question, the bankrupt said that lie did- not keep books, but the trust account .kept by his solicitors would show a correct record on his business dealings. Cross-examined by Mr. J. O'Donavan (representing J. M'Donald), bankrupt said that during the past three years he had built six houses on the Stellin Estate at Kilbirnie, three at Miramar, three in Aro street, and one at Rona Bay. He had probably built in. all about eighteen houses. Ho had aimed at a profit of from £150 to £200 on each job, something like £3600 for the lot. On some of the contracts he lost money.

"WHERE HAS ALL THE MONEY

GONE?"

Mr. O'Donovan : "What has happened to your profit ? Where has all that money gone?" Bankrupt :"I did not get it. It was not there. I lost money on some of the jobs—lost heavily." He agreed that the profit on several of the jobs would total something- like £1200. Mr. O'Donoyan pointed out one house where bankrupt had on paper made a profit of £10, and yet he-put his loss down as £300. M'Duff explained that this place, which was in Hataitai, was vacant for twelve months. He had been obliged to pay three commissions on it.

You took £300 from Captain Donaldson in connection with a property in ■Hataitai, and, I understand you told "him that this money was to enable you to make a start on the place?"—" Yes that IS SO."

Mr. O'Donovan showed that the bankrupt had spent only £125 at the very outside on "making a start," and he wanted to know what had become oi the balance of the money. Mr. Wallace • "Do you gamble? Or to put it plainer, do you play poker?" lhe bankrupt said that Mr. Wallace was misinformed if he had been told that he, M'Duff, lost large "sums at a sitting at poker. • Mr. O'Donovan: "Do you drink?" Bankrupt: "I suppose' drink doesn't wed- "° m°re than ten shilliu Ss a

"Then you drink very cheaply," observed Mr. O'Donovan. Mr. J. J. Clark said that he probably knew more about M'Duff than did any of the other creditors. The trouble h the man was that he was an "unmitigated liar. that!" O'Do" ovall: "^ all know I Mr Clark : "If on]y he had ' , d thegame everything, as he says, mfeht Slav H ng^- H° wo»ld "°( fltlt ■ I g1" 1C- ,The I1!0ney f''°» the latest job always had to be used to pay off he work about three jobs back." enable the bankrupt to compile a detailed statement in connection with all years °"S duri "S the I"»t- t^ee