IN BANKRUPTCY.

Hawke's Bay Tribune, Volume VI, Issue 354, 13 February 1917, Page 2

IN BANKRUPTCY.

DUNCAN AND ABBOTT

A meeting of creditors in the estate of Duncan and Abbott, builders and conttaetors, was held at. the Hastings UcfliHhouse yesterday, the Deputy Official Assignee (Mr. Somerset-Smith) presiding, Mr. ]). Scannell represented bank, nqifs, Mr. Parkinson appeared for the Bank of New South Wales. Air. E. J Hallett for J. Cain and the Cement Pipe C</.- Air. Duff for Mr. A. Wade, and Mr. Neil for Miss Duncan.

The following concludes the report of th'- examination of Air. Abbott.

The Deputy Official Assignee having been advised by his solicitor .that the retirement of Air. Duncan trom the meeting could not be legal- . 1,, demanded, the examination of Air. ■Abbott was cmtinued. His partner had put notliifig into the business, and they both shared equally in the profits. Proper books wer« kept by Mr. Stewart, accountant. They always had a man to write up the books. He had seen a copy of hah’iie" sheet about a year and 10 months ago. but could not say if it vas certified to. The balance sheet was prepared by Air. Stewart. Both partners had been engaged continulously in partnership business, but had bought, suburban land at Hastings with a view to speculation. No other ventures were engaged ni I outbid*’ rim ordinary scope of their busines'. Each partner had separate jobs apiece on each contract. There were two bank accounts ot the firm, one at Hastings, on which Loth partners could draw, and one •at Featherston in the Bank of Ney ’Zealand in witness’ name. This latter was really the firm’s account, and was used exclusively for the firm's business. There was a credit balance of 86 in this account. He kept, a rough day book of extras anil I also a wages book at Featheteto , i. as well as a cheque book, bank book I and a file of accounts. He ahi ai s knew what was coming out of each contract from memory. It was about the third week in Januaix he knew the firm was on the losing side of the ledger. The tendering calculations were done by each partner. The drawings for the partnership were arranged so that the partners drew so much per week. At the end of the year the balance would adjust matters. No other money was put in by him. He had lived in Featherston for nine months. Never balanced up a contract at Featherstqn and he could not tell how it would come out. All progress pajinents went through the Hastings Bank account. There were three Featherston jobs. The last progress payment went into the Bank of New Zealand at Featherston on December 22, 1916. He instructed that the payment should be made there. The wages bookshowed wages paid and all moneys received by him, except cheques. Had not advised bis partner of these drawings. There we,re several drawings not shown in the wages book, but they were shown on the cheque butts. The partnership had two (motor cars, one in Featherston and one in Hastings. He did not know anything about the conduct of the Hastings business. He did not have any private -property nor any money ■in any institution. His wife did not iliave any landed property. His wife had also Jived at Featherston. They had been living at the hotel .there. Had mostly lived in rooms (since he was married. Had furnishIcd two rooms in Hastings. The furniture was still in the house, which 'was on the land bought from Air. Newrick. He had not: made a list .of the furniture. Had not put any ’money out of his drawings in the bank. Tn answer to Air. Holt, witness ' said the work required to be done in the firm’s Bank of New Zealand contract at Featherston would he about £3O. £l4BO was to come on that contract.

The further examination of 11. W Abbott was adjourned.

I Alexander Scott Duncan, examined, said be was a member of the firm of Abbott and Dunean, and that they commenced business as builders anil contractors about April, 1910. He fited before April, before. Had not put any money in. Took over the assets of the previous partner three months before he filed previously . Did not take over the assets after his bankruptcy. The drawings of each partner were shown in the books. Had no private estate. The former partnership, Bonnor and Duncan, had bought some land in Station street from Mt John Humphries for about. £2OOO. Had paid a deposit of £lOO down, each £5O. Mr. Bonnor had paid the last money due. Had signed a document at Cotterill and Humphries’ office. Napier, transferring his share to Mr Bonnor because he could not ' meet his payments. Had tried to sell the property through land agents. There was no other transaction. Was living in a house in Oniahu road belonging to Mrs. Dunean, his wife. Tne furniture also be. loiig<>rl to her. Mrs. Duncan had I brought the land and house for £6OO. Ipuying £2OO deposit. No further | pay incut had been made No money | had been expended on tlie property i t<n tlnee or four yeai'. He had a 1 pro ate banking account at Hastings iin which there was to his credit, about 9-. He had not spent £2O on iurniture since, living in the house. His wife had priiate mean'. Some ! oi h'-r money was put into his bnsii r.ess. between £l5O and £l7O. Sjie 1 had been repaid about £l5O. Bal got engaged in any speculations, except having shares in the Motor Transport Co. The last balance sheet was made out about a year or ten months ago by Mr. Stewart, which as far as he knew was correct. Did not know finally till a fortnight after Christinas the firm’s position. His creditors were pressing the firm and cheques were dishonoured. He attributed the failure to the contract for the National Bank. They must have lost fully £2OOO over that contract. He could not prove there was a loss. There were so many contracts going on al the same time that he could not give the loss on a separate one. It was more of a guess. He also attributed the bankruptcy to land speculations, rates, interest, etc. He employed a competent bookkeeper. The examination of this bankrupt was also adjourned. As reported in yesterday’s issue, on tho suggestion of the Deputy Official Assignee, owing Io the insufficiency of information, the creditors unanimously appointed Mr John Holt and one other to be chosen by the Deputy Official Assignee, as supervisors of the estate. Authority was also given to the Deputy Official Assigrfee to appoint an accountant, * I

The meeting then adjourned sme die.