IN BANKRUPTCY.

Gisborne Times, Volume VI, Issue 210, 11 September 1901, Page 3

IN BANKRUPTCY.

The following is the report of the Deputy-Assignee in the estate of V illiani Oswald Skeet, of Gisborne, builder, for the information of the creditors, to be presented at the special meeting this afternoon :

Waiapu Bridge Contract. —Mr P. McLoughlin was the sole contractor for this work. On the 22nd December, 1900, he entered into an agreement with the debtor, whereby in consideration of the debtor giving his whole time and attention, with the exception of four days each month, to the superintendence of the work, lie was to receive £2 per week as wages, and half the net profit on the final completion of the contract. In ease of any default or breach of the agreement lon his part, the debtor was not to be entitled to the sum of £2 per week, or to any of the profits, or to any other reI muneration whatever. After giving his services for a month, the debtor left the works, whereby he committed a breach of the agreement, and forfeited all claim to any remuneration or to a share in the profits. Under the agreement, Mr McLoughlin was to supply all timber and material required for the contract. The timber used was totara, iron bark, and kauri, which was ordered by the debtor on Mr McLoughlin’s account from Messrs Holmes and Grierson, of ~nd, and , was consigned by them direct to Mr MeLoughlin, at Tokomaru. Some white pine for men’s whares was supplied by i Mr William King, of Gisborne, and , charged by him direct to Mr McLoughlin. ] The debtor or his estate did not supply i any timber or material for the contract. t

Hatuon's Buildings.—The work done by :he debtor for Mr Hatuon consisted firstly of four small buildings on Mr Hatuon's section in Gladstone road, and a stable on his property at Whataupoko. the total price for which, including a small account for timber, was £2BO os,’for which paymem was made by Mr Hauion giving the debtor three promissory notes as under : August 14th, 1900. i'.N. due 17 11 00. £9l •Is: April ldth, 1901, j'.n. due 16.7 01. £100; June 4th, 1901, i-.x. due 7 10 01, £B9 : total, £260 os. The promissory note; were discounted for the debtor in the ordinary way by his bankers.' The boot shop occupied by Mr Yowles has since been built, the price being £3O, which Mr Hatuon has paid me since the date of bankruptcy. Hood's Contract.—The price for this contract was £B6O. The cost of the material and labor supplied to date of bankruptcy was £420 3s lid. The amount received by the debtor on account of the contract was £175. The loss is £250 3s lid. The contract is dated 10th .January, 1901. The penalties are £5 per week after ten weeks if the material is not on the ground, and £5 per week if the contract is not completed after 31st May. The fines accrued to the date of bankruptcy amounted to £l5O. The estimate of profit that would have accrued to the estate on completing the contract as from the date of bankruptcy, providing the fines were not enforced, was £lO5. The value of the material supplied to this contract within one month of the bankruptcy, of which the sureties get the benefit, amounted to £6l 19s Ud, the largest item being £26 0s 4d for tiles supplied nearly a full month before the bankruptcy.

Payments and Assignments.—The cash payments made within one month of filing amount to £629 16s 4d, and appear to have all been made in the ordinary course of business. They consist of twenty-one payments to ordinary creditors, amounting to £287 7s lOd, and the balance is for wages amounting to £342 8s Od. There were no assignments of payments coming to the debtor made within one month of filing. The last assignment was made on 25th May, and amounted to £568 10s on account of three contracts. Sections 228 and 229, Palmerston road. —These sections were purchased by Mrs Sheet from Mr Ilamon, on 14th March, 1900, for £l2O. The purchase money was paid half by cash, drawn from Mrs Sheet's account at the Post Office Savings Bank, which had been deposited there out of moneys received from her father, and the balance by the debtor’s promissory note to ill- Hauion for £62, which was renewed and finally paid on 19th September, and which the debtor states he gave in consideration of moneys previously received by him from his wife and put into his business. The timber, ironmongery, and plumbing work, and part of the labor for the dwelling-house on these sections were supplied by the debtor at cost price as follows : Timber, £125 19s 4d ; ironmongery, £-1-1 9s Til: labor, cartage, etc., £43 17s 3d : total, £214 0s 2d. The payments made by Mrs Skeet in settlement of this account were : December 10th, 1900, £150: January 15th, £l2; April 13th, £35 ; May 20th, £18; total, £215. Mrs Sheet's son, Cecil, did most 'of the labor for her, and she has yet to pay for the painting. Sections 323 and 324, Gladstone lload. —These sections on which the workshop and plant are situated were leased by the debtor from Mr Newton for ton years from Ist November, 1891, at a rental of £lO per annum, payable half-yearly, the lessee to pay rates, love] the sections, and erect and keep in repair the fences. By memo, of transfer dated the 27th May, 1901, the debtor in consideration of £SOO transferred ail his interest in the lease and all machinery, tenant’s fixtures, and plant on the above described land to Mr F. Hall. The estate therefore has no interest in the building fixtures or plant.

Bank Guarantees. —There were two guarantees given to the Union Bank, one dated the 20th February last by Messrs D. J. Barry and five others for £2500, and the other dated the sth March by Mrs A. R. Skect for £ISOO. The Bank also held security over the debtor’s freehold property being part of Section 5tM, Disraoii street, and his leasehold interest in section 363, Gladstone road, valued at £420. They also held a mortgage over Mrs Sheet’s freehold property in Upper Palmerston road, valued at £ISOO. The Bank have called up both guarantees, and I understand that a sale of Mrs Sheet's property and the Disraeli street section lias been effected for £2OOO, which amount will be applied in reduction of the moneys owing to the Bank. Deficiency.—lt is practically impossible to ascertain from the books kept by the debtor what his position was at any time. The contracts book is the only, one that gives any satisfactory groundwork on which to form an estimate of the profits of the business. For the seven years from 30th June, 1892, to 30th June, 1899, the profits on contracts averaged £479 per annum, from which must bo deducted the cost of supervision and olliee expenses. There would also bo some profit arising from sales of timber, etc. I think it may be safely said that during the period mentioned the debtor’s not earnings did not exceed £4OO per annum. An allowance must also bo made for bad debts. For the last two years the contract book has not been written up, and it is evidently chiefly during this period that the deficiency shown in the debtor’s accounts lias been made. It would bo too expensive a matter now to work up the contract book, but I have had most of the contracts done since January last made up, with the result that eleven contracts, for which the contract prices amount to £2277 0s lOd, show a profit of £225 4s lOd, while eight contracts, for which the contract prices amount to £2098 11s 4d, show a loss of £540 3s 4d, the net loss being £314 lbs Gd. To this amount must be added the cost of supervision and office and household expenses. For the last two years the debtor's business lias evidently been carried on at a heavy loss, but it would be impossible, except at considerable expense, to workup the details of losses for that period.

Tho difference of £IOOO in the bank overdraft since the transfer from the Bank of New South Wales was made, is apparently attributable to the payment of pressing engagements. There is no appearance of money having been drawn out of the ordinary course of business, and none of the payments could bo classed as preferential. As to tho difference in the balance-sheet of 00th November last, and the statement filed by tho debtor at the date of bankruptcy, the debtor gave no explanation other than that the item of .£2300 shown in the statement of 30th November as estimated value of contracts in progress, has not realised his expectations, and that there has been a considerable writing down in his filed statement in comparison with that of tho 80th November. Furniture. —The furniture shown in the debtor’s filed statement as £4BO, comprises household furniture £4OO, and office furniture £3O. Mrs Sheet claims that her father made her a present of all the front room furniture, and also gave her a piano and a buggy. The value of the furniture and piano claimed by Mrs Sheet is about £IOO. The £4OO appearing in the debtor’s schedule as the estimated value of tho furnituro includes that claimed by Mrs Skeet, and is in my opinion its full value.