CREDITORS CRITICAL

Evening Post, Volume CXI, Issue 121, 25 May 1931, Page 10

CREDITORS CRITICAL

PLASTEKER'S FAILURE

PERSONAL EXPENSES

Creditors of Charles Thomas Emeny, plasterer, at a meeting held before the Official Assignee- (Mr. S. Tansley) today commented adversely on the mac lier in which the bankrupt appeared to have spent money on himself during the past few months. "It seems to me you made a welter of it while the going was good," remarked Mr. Tansley. "You would.have- done better to have paid some of your creditors." Tho bankrupt, in. his sworn statement, said that for ten years he had been engaged exclusively as a sub-con-tractor of the Hansford and Mills Construction Co., Ltd. (now in liquidation). He gave the company prices for work and. entered into contracts in tho ordinary way. The company paid the wages and supplied the materials and plant. Every fortnight or so the accounts were settled. His accounts were kept by the company, and he kept no books himself, but had his own banking account. In January, 1931, he was unable to obtain from the company £1049 owing to him, and ho issued a writ and obtained judgment by default. A charging order was issued, against money, due to the company, but before anything was recovered a receiver for the debenture holders was appointed, and the company then went into liquidation. He was advised that the charging order would not hold against the receiver and liquidator. He understood no money would be available for unsecured creditors. However,. £37 19s 3d would bo available under a charge established in connection with the War. Memorial job. As part of his. price for work on the Hotel St. George he took shares in a building project to a nominal value of £.1500, but was unable to realise on them or on 200 £1 shares in a restaurant. He sold 100 £1 shares in a gold dredging company for £85/ The bankrupt attributed his failure to the money not being paid by Hansford and Mills : and to the building shares being valueless. The amount owing to unsecured creditors was shown at £.1144 los 2d, the principal creditors being the Carrara Ceiling Co., Ltd., £699 4s 4d; and Clifton Estate, Ltd. (in liquidation), £200. Book debts were estimated to produce £322 19s 3d, and shares £300, making the total assets with Is lid in tho bank £623 Is 2d. Tho deficiency was £521 14s. Examined by creditors' representatives, the bankrupt said that he had lent his daughters about £100 over two years ago. He denied that he had squandered money on "joy. rides" round the country. A TRIP TO ROTORUA. Questioned regarding the..expenses of a trip to Rotorua last December, Emeny said that he was financial then. Hansford and Mills owed him a considerable sum. Mr. S. A. Wiren (Carrara Ceiling Company): "Everybody knew that Hansford and Mills were experiencing difficulty in December." The bankrupt: "That does not get away from, the fact.that they owed me over £1000." Mr. A. T. Young (South British Insurance Company) asked the bankrupt whether he thought it was reasonable to have spent £145 on a trip to Rotorua when he was in debt. "I had no idea that Hansford and Mills were going into liquidation," replied the bankrupt. Mr. Wiren: "It looks as if from the beginning of December to the end of March you spent about £400 on yourself." The bankrupt said that he had paid off a number of debts with part of the money. He was perfectly financial «ntil Hansford and Mills went into liquidation. "Surely from December you have been suspicious about. getting your money from Hansford and Mills?" — "They assured me the money would be all right." The Official' Assignee: "I should say you have had a pretty hectic time since December last, spending about £.25 or £30 a week on yourself." The bankrupt said that he had had to go round the country looking for work. ■ Mr. Wiren: "Since 23rrl February, when the receiver was appointed, you have known that your prospects of getting your money were doubtful?"—"l began to think it was serious then. Mr. Wiren moved, and it was decided, that the Official Assignee make inquiries regarding payments made by Emeny to his daughters since May, 1929. Mr. Tansley undertook to obtain a statement of the bankrupt's dealings with Hansfor.d and Mills, and Emeny ' was instructed to prepare a statement of his receipts and expenditure during the past year.