BANKRUPTCY

Grey River Argus, 20 October 1934, Page 2

BANKRUPTCY

CASE OF A BUSHMAN Creditors' Meeting A meeting of creditors in the bank rupt estate of Alex. Roy Greatbach, bushman, of Kumara, who filed his petition on October 10, was held yesterday afternoon at the office of the Deputy-Official Assignee (Mr A. Naylor). Bankrupt was represented by Mr T. F. Brosnan. Creditors present were Messrs S. Case, T. McGrath, and F. W. Wise (all of Kumara3( and E. Mordaunt. Bankrupt’s total indebtedness was shown as £364 4s lid, whilst assets were shown as nil. Debts to secured creditors (Midland Sawmilling Co., Ltd., bill of sale over Caterpillar tractor) amounted to £275, less estimated value of securities £2OO, leav ing a deficiency of £75. Amounts owing to unsecured creditors totalled £291 18s lid. The list of unsecured creditors was as follows: —Shell Company of N.Z., Ltd., £l2; R. Ronchi (Waiuta), £18; Dr. Basil Wilson (Hokitika), £4 4s; Grey River Argus Co., Ltd., £2 15s; Harold Bros. (Reefton), £23; Thomas Dellaea (Reefton), £3 10s; H. Leggoe (Ikamatua), £18; Renton and Co. (Hokitika), £3 10s, Dr. L. G. Bel), £1 10s; Graham Bros| (Waiho), £3B; Atlantic Union Co., £9 10s; J. Morgan (Hokitika), £75; Greymouth Motors, Ltd., £5 14s; Dr. L. Wicken (Reefton), £3 10s; F. W. Wise (Kumara), £6; S. Hayward (Waiho), £6; 11. Hayes (Kumara), £1 10s; E Mordaunt, £2l; S. Case (Kumara) £l2; W. Stewart (Kumara), £10; Dr. Menzies (Kumara), £6; Gage Bros. (Dobson), £2 8s; Addisons (Hokitika), £6 3s nd; Thomas McGrath (Kumara), £2 14s; total, £291 18s lid.

Bankrupt in his statement said:—“In July, .1932, my brother, John Greatbaeii, and I took a bush contract at Mawheraiti and Hukarere. We purchased standing white pine, and logged it for Stratford Blair and Co., Ltd. When we commenced our contract, we were using a steam winch, which we hired from Stratford Blair and Co. The winch was too expensive for our work, so we decided to get. a tractor. We purchased a. second hand tractor from the Midland Saw milling Co., Ltd., for £3OO. The purchase price was to be paid at Is per 100 feet of timber logged. When we acquired the tractor ft was to be put in good working order. New rollers were to be put in the tractor, and it was expected that this would be completed within a fortnight. Instead, the rollers had to be procured from America, and it was over three months before the parts arrived. During the time we were using the tractor, it cost us nearly as much in repairs as ive were earning. My brother withdrew from the contract about December, 1932. I continued with the con tract until March, 1933, when 1 be-

came ill and was under treatment by D.. Wicken. 1 then went to work at Parker Bros.’ mill at Blackwater, near Kumara. I worked for Parker Bros, for about 12 months at 16s per day, but had to relinquish the job on account of ill health. I was idle about one month, and then went to work as a bush man for Gilbert and Tomasi. 1 am still working for them at a wag-' of 15s per day. I average about four da vs per week. I am married, with a wife and one child. My wife has been iq ill health for a considerable time, and I attribute my failure firstly to the loss sustained on the logging contract, and to the expense incurred by reason of my wife’s ill health. Owing to summonses being issued against me by some of my creditors, and with no prospect of being able to pay same, 1 have filed in bankruptcy. The tractor purchased from the Midland Saw milling Co., Ltd., was secured to them by instrument by way of security, and the Company resumed possession of

Mr Wise asked why bankrupt came to Kunuira, fully knowing his financial position, and then get into debt with the business people in Kumara. He did not think it was honest. Bankrupt then stated he got into trouble through his wife’s illness, but. he had not paid anything, even his wife’s confinement. He would like to know what bankrupt, had done with the money he had earned. He considered it was a bit of dirt, bankrupt coming into his place, |and wanting to be “flash” going away with the Coast, cricket team, had booked clothing, which he (Mr Wise) had to send away for specially; telling him (Mr Wise) he would make payment the next week.

Bankrupt said he could not pay when everybody was pushing him. Mr Case said that bankrupt came into his shop after he had received a letter from his (Mr Case’s) solicitor, and said, “Why did you force me? If you hadn’t done so, I had £3 for you, but now you won’t get it.” If bankrupt had not worked six days a week it was his own fault. If bankrupt paid 10s a month of his account, it would not have been so bad. Bankrupt had simply got his money and they would like to know what he had done with it. That was what he had come there to find out—what he had done with his money during the past IS months.

To Mr Brosnan: He only drew £27 in nine months whilst on the bush contract. He took ill and had to receive treatment from Dr. Wicken. It was not possible to get in six days a week at the sawmill. Mr Case; What have you done with the money you have earned during the four days each week? Bankrupt: I have lived on it. 1 have to pay 6s a week rent, which had been paid. Mr Wise: Where has the money gone to? Bankrupt: I don’t know. I haven’t got it. To Mr Brosnan, bankrupt said he had bought over £3O worth of meat from Stewart, and paid fdr £2O worth.

He had been trying to pay some back accounts, and was getting behind with accounts accruing. If he had had the idea of going bankrupt, he could have gone through'for thousands of pounds, not hundreds. He had .knocked out 30s a day on bush contracts, and was hoping to get back on to such con tracts again.

To the D.0.A.: At Kumara he was paying accounts owing before he went to Kumara, at which time he owed about £3OO. That was why he had gone behind at Kumara, as the creditors of the old accounts were forcing him. The D.0.A.: They have been carrying you on their backs in Kumara, while you have been paying off old accounts! Bankrupt said he could not pay everybody at once, and it had been necessary to file as he was being- pushed. Mr Wise: No one would push yon in Kumara, even if you paid a small amount weekly. Bankrupt: No one would push me in Kumara, but what about others? Mr Brosnan: Has anything been paid off these accounts here? Bankrupt: No, nothing has been paid off them. Mr Wise said the unfortunate part was that the men they trusted, made men in business go bankrupt. Mr McGrath: We are only losing time. Mr Wise: Yes. The D.0.A.: It seems one of these unfortunate cases. Mr Wise: One of those who go bankrupt like Greatbach is a lucky man. It. is a happy position for a man to get head over heels in debt with everyone he meets, and then politely files. It is a happy position, indeed! How many men got into debt to the extent of £3OO and can get out of it? Mr Brosnan said there had been an economic depression. (To Mr Wise): Do you suggest bankrupt should have tiled before he came to Kumara.’

Mr Wise: Yes. It seems a rotten law for a man to be able to go bank-

rupt. The D.0.A.: It is not fair for me to express an opinion, but I could. Mr Brosnan: Bankrupt has a wife and child, and if he did not file, he would have had to go to gaol, probably. Mr McGrath said the unfortunate part was that Greatbach was heavily indebted before he came to Kumara. The D.O.A. said bankrupt seemed to be unfortunate with the contract, only drawing £27. Mr Wise: Do you think it was wise to have hung to the contract ? Bankrupt said that the timber was cut and the tractor broke down, and they had to wait for parts. 'lTie D.0.A.: [ can't see any prospects. Bankrupt has no assets. Mr Wise: You can’t strike a dividend. The D.0.A.: Not unless bankrupt gets a good contract. Can you get a good contract? Mr Case said a man had said to him only that morning, “If you have got £7 file in bankruptcy.” Bankrupt: What do .1 get out of it? Mr Wise: You have freed .yourself of the monies you owe. Mr McGrath: It is no good talking about it. You can’t get anything out of it. Mr Mordaunt said that as bankrupt said he had nothing, they could nor expect to get anything, lie would b« satisfied with £5. Mr Wise: Could not bankrupt pay something into the D.O.A. each month? He is square, and starting off again? The D.0.A.: He is not square, lie is just where he was. He still owes this money. Bankrupt said he did not see how be could pay anything. His wife had been ordered into hospital. Mr Brosnan said bankrupt had n > chance of getting any further credit now. Mr Case said the mill was working six days a week, and was getting plenty of orders. Bankrupt said he had not averaged more than four days since last Christmas. Mr Wise: I still maintain bankruot ought to lie made to pay so much tu Mr Naylor, even if it is only to pav the wages claim. Bankrupt; I have worked for nothing. Mr Case: We work for nothing too. Mr Wise suggested bankrupt pav 10s a month. The D.0.A.: The estate would go-on for 200 years before it. was cleaned up. Mr Wise: Never mi ml. Bankrupt: If I got into a good po-d lion I would do something. Mr Case; You could not do nr uh better than you are doing now.’

Bankrupt: What, couldn’t. I! You forced me the day after my monthly account was due. Mr Case; No, I gave y ui a week's credit, but as you didn’t come along with any money, I had to stop your credit, as I knew you had been paid. When bankrupt came to Kumara, a storekeeper from Ikamatua told me to “look out for Greatbach when he came to Kumara.” I had an idea then that Greatbach would file in bankruptcy. Bankrupt paid cash for a start and also the first month’s account of £9, and then just carried on. Why didn’t bankrupt pay cash at my shop? Bankrupt owed money and then left you. The man could work six days a week and came here and says he is only earning £2 a week. That is all I have got to say about it. Mr Wise: I still maintain bankrupt should make an offer. I have been to a few bankruptcy meetings and Mr Greatbach has taken it the easiest of all I have seen. “Y r ou laughed and smiled all through the meeting?” Bankrupt: Do you expect me to burst out crying? Mr Wise: No, but you have laughed and smiled all the time. The D.0.A.: It is no good, 10s a mo nt h. Mr Wise: Well, it will do for my son. The D.0.A.; T can’t accept it. It would take too long. Mr Wise: 1 quite understand that it can’t be done. I do not want or

expect anything, but. the position seems an unfair one to me. The D.O.A. said he had to accept bankrupt’s statement that his wife was ill, and that he was only getting £3 a week. Bankrupt; If things are better later on, I will be in a better position to pay. Mr Brosnan said that before bankrupt obtained his discharge, he could be examined by his creditors, and they could then see the position and what could he done. Air Wise: I think Air Greatbach -will be in Australia before that. Air Case: That is what I heard too. Air Wise: We got it from your own family. The D.0.A.: T will declare the meeting closed. Air McGrath: Final? The D.0.A.: If necessary I can call another meeting in the interests of creditors. Of course, J have to consider both bankrupt and the creditors. The meeting then terminated.