CREDITORS MEET

Evening Star, Issue 20255, 16 August 1929, Page 3

CREDITORS MEET

BUS PROPRIETOR'S FAILURE A meeting of creditors in the bankrupt estate of Edward M‘Fee, juu., bus proprietor, of Kaka Point, was held before the Assignee (Mr J. M. Adam) yesterday afternoon. Six creditors were represented. Mr C. J. L. White appeared oil' behalf of tho bankrupt. The total amount owing to unsecured creditors was £sll ss. The principal creditors were:—D. Wright (Houipapa) £24 8s 4d, Otago Farmers’ Co-opera-tive Association £22. Keith Webling and Co., Ltd., £3B, Ford Motors, Ltd., £37, Markham Motors, Ltd., £4B, Bell and Eidgweli (Balclutha) £3O, Thomas Wheeler (Sawyers Bay) £22, Eobert Brunton £175. The only asset specified was £SO in personal furniture. In his statement the bankrupt said that in 1923 Leslie Brooks and he purchased a farm at Tawanui. For three years they carried on in-part-nership, but could make no headway, and finally abandoned the property to the mortgagee. For twelve months after leaving the farm bankrupt worked for wages at various places. In September, 1927, he purchased a touring car on the hire fiurchase system, and began a passengsy service between Kaka Point and Balclutha. Business was very promising, and he found it, necessary to purchase an International passenger bus, which was also bought on a small deposit. A short time after he purchased an Austin and a Hudson, and began a passenger service to Owaka and Tuapeka Mouth. This was tho beginning of his trouble? as he found that after paying wages he had very little left. In December, 1928, with the promise of a big tourist season at Kaka Point, he traded in the old International for a new one, and also purchased a Eeo bus, both of which were acquired on tho hire purchase system. The tourist season was disappointing, and he did not make what be expected. In February of this year the Austin car was destroyed by fire in the. garage at Kaka Point. The contents of tho garage, inelu ;l ing all his tools, books, etc., were also destroyed. There was a mortgage of £4OO on the Austin. The insurance, company refused to pay out thj total claim on the car, and the mortgagee put the bailiff in. Bankrupt was being pushed by several of his. creditors in connection with old farm debts, and as he was unable to pay them his only course was to file. He was a married man with four young children, and had nu assets whatever. Ho considered that if the insurance company had paid the full claim for the loss of his car he would have been able to carry on. Examined by the Assignee, the bankrupt said that Brooks, his partner in the farm venture, had made an offer of 5s iu the £ to some of his creditors, and this had been accepted.

Mr White asked whether such an agreement was not sufficient to release the bankrupt from those debts. The Assignee said that if such was tho case, it was a pity that he had not raised that defence years ago. After the bankrupt had been closely examined with regard to his motor business, the matter was left in the hands of the Assignee, and the meeting adjourned sine die.