“IRRESPONSIBLE MUDDLER”

Greymouth Evening Star, 26 May 1928, Page 7

“IRRESPONSIBLE MUDDLER”

MOTOR-SERVICE FAILURE DRIVERS “ON GOOD WICKET” (Special to “Star.") AUCKLAND, May 25. Although he was in Auckland, Albert Edward Maggon, motor service proprietor, of Te Kuiti, failed to put in an appearance at the meeting of creditors in his bankrupt estate this morning. It was said on his behalf that he was under the impression the meeting was set down for two o’clock this afternoon, but some of the creditors were inclined to the view that, he had absented himself intentionally. Any comment concerning his conduct, however, was reserved till he had an opportunity to explain his affairs.

At the adjourned meeting, later in the day, bankrupt’s schedule disclosed that £3962 was owing to unsecured creditors, while others were secured to the extent of £793. The securities were valued at £3,775, while other liabilities totalled £1,125. The assets aggregated £5,269 and included stock £616, book debts £1453, surplus of assets £2981, cash £lO4, and furniture, etc £ll3. Bankrupt’s statement, which according to the D.0.A., was “remarkable not for what it said, but for what it did not say,” explained that he began his service in Te Kuiti about eight and a half years ago. He then had £l3OO in cash. He'built a house and later a garage. The latter necessitated his securing an overdraft of £lOOO, but he was in a sound financial position as the business was expanding rapidly. He disposed of a farm property for £l5OO and placed the money in the concern. At the beginning of the present year, he found himself in difficulties, and since February, trustees, consisting of his creditors, had carried on his business. He attributed his failure to a falling off in business, during the last holiday season, and to the termination of an agreement with a rival on the Te Kuiti-New Plymouth run which resulted in unprofitable competition, to the cutting of fares by his rivals, to an extended service to Rotorua, and to loss on the garage venture.

“The business had lost heavily through insane competition, and general mismanagement,” commented Mr R. A. Spenley in his report traversing the business carried out by the trustees. Investigations, he added, showed a lack of system of issuing and collecting tickets, and the faulty dispatch of cars, which necessitated driving them at high speed and their consequent greater depreciation. In addition to this, bankrupt’s cars were not regularly repaired or washed, and there was a lack of uniformity in the business. The drivers were unkempt and decidedly slack. “Limousine cars demand uniformed drivers and clean habits,” commented Mr Spenley. “Tourists do not expect to see cars costing £l4OO driven by unshaven chauffeurs with rolled up sleeves and without waist coats, showing third rate braces, suspending slop made trousers.” The office control, he said, was weak and the book keeping was not up to date. The bankrupt attended the afternoon meeting.

A creditor: What method did you have of checking cash from drivers? —There was no method at all. They just sent it in. There was no accounting between you and them? —No. The Assignee: They would be on a very good w'icket. as it were. You let them do just as they liked. I suppose you would not have many claims for overtime in these circumstances. There would be no dissatisfaction among the drivers? —One man left, but he came back again. The Assignee said that bankrupt had shown himself to be absolutely irresponsible and could only be described as a financial adventurer., The following resolution was passed: In view of the conduct of bankrupt in not affording the creditors every assistance they had the right to expect, and in view of the fact that he has proved himself an irresponsible muddler in business, the creditors request the Official Assignee to take such steps as he considers necessary, and to oppose bankrupt’s discharge. The meeting adjourned pending further investigation.