BANKRUPT BUILDER

Evening Post, Volume CXII, Issue 95, 19 October 1931, Page 8

BANKRUPT BUILDER

SURPLUS ON BOOKS

DEPRESSED MARKET BLAMED

The present state of the market, -which made it impossible to realise certain assets at their true value, was the reason given by William Henry Edwards, a bankrupt, builder, of Lower Hutt, for his inability to pay his creditors in full at present. A meeting of the creditors of the bankrupt was held, in the office o£ the Official Assignee (Mr. S. Tansley) to-day, arid after thel bankrupt's position had been gone into the meeting was adjourned sine die

In his sworn statement the bankrupt said that he was nearly 71 years of age, and throughout his life had been connected with the building,trade. Until 1924 he was in partnership with his son, Harold Edwards, and when the partnership was dissolved his assetg were valued at over £5000. The bankrupt carried on, but found that most of the business went with his son. Prices fell, and be lost a considerable sum of money he had invested in properties at Lower Hutt. His wife, who died in March last, kept all his books of account and looked after all his money matters. He believed that some of his assets had become mixed with those of his wife, against whose estate ho thought he had a good claim to the extent of £800 or £900. He, attributed his position to the fact that in June, 1930, lie entered into an agreement with J. J. Cronin for the purchase from him for £500 of a two-thirds share in the Australian rights, of a patent refrigerant; He raised a mortgage for £650 on his property at Lower Hutt, and paid £250 to Cronin as the first instalment, using part of the balance to pay a representative to go to Australia to make arrangements for the demonstration and sale of the patent. He seemed to be continually paying out on account of _ the patent, and got nothing at all out of it. At a meeting in June, 1931, his creditors, with the exception of J. J. Cronin, decided to assign his estate to W.H. Naiikervis, as trustee, ahd'this'was done in July. Cronin, however, took bankruptcy proceedings, and he was adjudicated bankrupt in October. None of his debts vrero what might be called trading debts. The largest amount owing to any creditor was £567 10s 9d to his son, which was actually money paid on the bankrupt's behalf or advanced on loan. It was his belief that he had assets which, with the money owing to him by his wife's estate, were sufficient to pay all creditors in full, but the present state of the market would not permit the assets to be realised at their true value.

The amount owing to unsecured creditors was shown at £961 13s 6d, and £2550 to secured creditors. The securities had an estimated value of £2850, leaving a surplus of £300. Tho assets were reckoned to produce £1430 11s lid, leaving a book surplus of £468 17s sd. ;

The principal unsecured creditors were Harold Edwards, £567 10s 9d; James J. Cronin, £263 16s; D. Robertson, £28 30s; James Robertson, £28 10s; Findlay, Horgard. Cousins, and Wright, £25 6s; Frank Holdsworth, £19 Is 7d; H. F. Johnston, £15 15s; W. H. Nimmo and Co., £13 4s 2d.

The secured creditors were National Mutual Life Association, £1100; Trustee in West Estate, £800; 'Arthur Dorset, £650.