MARINER'S INSOLVENCY

Evening Post, Volume CXIII, Issue 75, 30 March 1932, Page 8

MARINER'S INSOLVENCY

UNPROFITABLE INVEST-

MENTS

A motion opposing the bankrupt's discharge until he has paid 7a 6d in the pound off his debts was passed unanimously at a meeting this morning of the creditors of Captain Frederick William Ness, of Wellington, before the Official Assignee, Mr. S. Tansley. The Official Assignee said that the position so far as the creditors was concerned was "pretty hopeless," and Captain Ness told his creditors that he could make no offer, as he would be out of work at the end of next month and had no prospects at the present time of securing further employment. The amount owing to unsecured creditors was £419 7s sd, the principal items being F. J. Pinny, Ltd., £70 12s; National War Funds Council, £59, and F. Price, £43 0s 9d. The total liabilities weye £4C9 7s sd, and the assets nil. "In order to appreciate the causes leading up to my bankruptcy it is necessary to go back to 1924. Up to that time I waa in a sound financial position and was employed as a dredge master by the Napier Harbour Board," stated the bankrupt in his sworn statement. In 1924 he took up £700 in contributing shares in the Australasian Insulating Company, Ltd., and became a director in the concern. The company failed, and he lost all he had put into it and came out with liabilities amounting to £200. Shortly after this, in 1925, he was dismissed from the Harbour Board under a retrenchment scheme. He had £50 and went to Auckland to take up a position as branch manager of the Automatic Tire Company, and to obtain the position had to take up £150 in shares. His salary was paid on a percentage of the profits, and during the seven months the company was in operation did not amount to more than £2 per week. The company then went into liquidation and he again lost all he had, and came out with further liabilities Dor 18 months, until the end of 1926 lie was out of work and, for the last three months of the period, in hospital. His only income was a pension of £3 per month from the New South Wales Gov. eminent. When he went into hospital this was increased to £5 6s. In 1927 he obtained employment with the Union Steam Ship Company at £4 7s 6d per week and set about reducing his liabilities, which then amounted to over £500 \}^ !he sec,u" d his Present position with Holm and Company at a salary of £7 per week, and although he made some headway, in paying off his debts he was handicapped by being compelled to borrow at high rates of interest to meet th° pressing claims of creditors and avoid publicity. Last August his salary was reduced to just over £6 per week, and at the same time his pension was stopped In November he called a meeting of his creditors and made a promise to pay £1 10s for a pro-rata distribution among his unsecured creditors, and £1 per week to the mortgagee of his furniture. He kept these payments up for three months and then gave up his house and sold his furniture, paying off the mortgagee and distributing the rest of the proceeds anion-' his creditors. Ho was left with only ]~s per week after paying board for his wife and family and eventually it became clear that he could carry on no longer. He had received a month's notice of the termination of his employment;, had nothing in view, and was accordingly unable to make any offer to his creditors for the present.