GIRL TYPIST BANKRUPT

Greymouth Evening Star, 14 January 1933, Page 9

GIRL TYPIST BANKRUPT

HOUSE BOUGHT AS SPECULATION LONDON, December 2. The financial transactions of a City typist with a salary of £l9O a year were revealed at Croydon Bankruptcy Court yesterday, when Miss Gladys Josephine Mackay, of Lynwood, Brighton-road, Parley, was examined. Miss Mackay attributed her position to payment of heavy interest on borrowed money, and to the fact that she was the sole support of her family. Her gross liabilities, it was stated, were £2,459/10, of which ’ £1,402 was expected to rank. Her assets were estimated at £543 7/6, which left an estimated deficiency of £B5B/12/6. In. reply to the Official Receiver (Mr. C. Roy Waterer), Miss Mackay said, that in 1930, when she lived at Streatham, her father and brother became unemployed, and she became their solo support, as well as having to keep herself. She resorted to moneylenders, her first loan being used for payment of rent. In February last she desired to buy c. house in Streatham, for which she offered £l.OOO. This was a speculation, her idea being that if she obtained the property she would re-sell at a. profit and meet her debts. She went to a moneylending company, who agreed to loan her £1,200, for which she was giving no security until she received the deeds of the house. They did not ask her for any other security, she said, but made it a condition that previous loans would have to be repaid. However, instead of £1,200 the company advanced her in instalments amounts totalling . £950. by which time she found that the house had been sold. Meanwhile she had been spending the borrowed money. In August she bought a house, in "which she now lived, paying £lOO deposit and leaving £l,OOO on mortgage. She then spent £l5O on modernising the property, in the hope of selling it at a profit, but she had been unable to do so. The Official Receiver: Was not that speculating with other people’s money?—l was quite sure that I would make a profit. Your insolvency is attributable, is it not, slightly to supporting your family, but very greatly to the speculation you indulged in and to your extravagance?—No, definitely no. How do you justify taking on these heavy liabilities as a speculation with your salary of £l9O a year?—l thought 1 would clear myself.

Miss Mackay added that a pianoforte, bought on the hire-purchase system for £5O, had been returned. The Official Receiver asked whal justification there was for buying a wireless set for £l7/2/6. Miss Mackay: 1 suppose none; that was an extravagance.

The Official Receiver: The whole of the last £9OO borrowed has gone since February. Why did you spend it like this?

Debtor said that, she had bought, nothing she considered unnecessary except the wireless set. The £950 was lent, without any security. She used part in paying interest on other loans. She became guarantor for a loan of £lOO to a cousin, but never for a moment thought that she had made herself responsible if he wa.;: unable to repay it. The Official Receiver: Had you any money at that time from which you could have paid this £100?—Oh no. I didn’t know when I went to the moneylenders that they were going to charge 60 per cent. What did you expect to pay?—F’ortveight per cent. That’s pretty high, isn't it? —Well, I still think I could have made a pro-

And yon did all lliise entirely on your own? —Yes. Debtor denied the suggestion that she never seriously intended i<> buy the Streatham house, but got the money for other purposes. She added that she and another girl in the office had borrowed from each other. Under pressure for repayment of loans she tiled her petition. Th' 1 examination was adjourned.