IN BANKRUPTCY

Manawatu Standard, Volume XLIX, Issue 21, 22 December 1928, Page 4

IN BANKRUPTCY

MEETING OF CREDITORS.

IN BUILDER’S ESTATE

A meeting of creditors in the bankrupt estate of Ernest Leopold Ranfurly Hocking, of Palmerston North, builder, was held yesterday, Mr C. E. Denipsy (D.0.A.) presiding. After a lengthy cross-examination of bankrupt, the meeting was adjourned sine die. The total debts in bankrupt s schedule, all to unsecured creditors, were shown as £1370 4s, while assets were estimated to realise £630.

The creditors present were Messrs TV. Hayworth, F. Martin, TV. Turner (Justice and Edmunds, Ltd.), TV. Bodel (Auckland Tile Co.), A. Hopwood, J, Gordon (Taringamutu Sawmilling Co.), R. A. Brace (P.D.C.), L. Simmons (Tiratu SawmiTling Company), and TVills (Wills and Smytlie). . STATEMENT BY BANKRUPT.

In a written statement, bankrupt | said he was a married man with three ] children, and came to Palmerston ( North from Napier two. years ago, i whfen he was unemployed. His father offered him a house free and he paid : rates and insurance and effected im- : provements to the property. He considered that, under such arrangement, he could effect improvements in Ins spare time, and that rent would then work out at approximately 15s per week. For some time he could not find work in Palmerston North, and then it was only occasional. Ho was a master builder and thought there would be a good opening in Palmerston North for a joinery factory. He approached his father on the matter and he agreed to build a factory and. find necessary machinery; bankrupt said he was to pay rent as agreed upon at 10s per week. Apart from several small jobs, he did not work in the factory for several months. His father then employed him as a foreman in renovating one of his houses in College Street. On the completion of that work, he commenced toy making, but owing to employees being inexperienced there was no profit in it. About that time, early in January, 1928, he obtained a contract to build a house at Stanway. From that contract lie obtained three others, but apart from one contract he had lost money. He attributed his losses to bad weather and wasted time. For instance, one contract, estimated to be completed in seven weeks, took 14 weeks. Bankrupt had had a lot or sickness in his family and had encountered considerable difficulty in obtaining payment of contract moneys, and thereby had lost trade discounts. He liad called a meeting of his creditors, when his father offered to make arrangements whereby approximately £J2o would be available for the creditors in addition to book debts and a deed of composition, blit the creditors passed a resolution requesting him to file in bankruptcy. He understood that his father was still prepared to make such arrangements if his discharge were recommended by the whole of the creditors. SUGGESTED ADJOURNMENT. The D.O.A. sugested that the meeting should be adjourned to enable him to obtain full information, as he had only just received the books, and consequently was not in a favourable position to do full justice to;the creditors. “1 think you were quite right,” commented Mi Gordon. “1 don’t think that bankrupt lias been quite satisfactory in his answers to creditors.” A series of questions was then asked of bankrupt who stated that the machinery had been bought by liis father, with whom he had no agreement in writing. His bank account was closed in September last and there had been no transactions since then. The D.O.A: How did you get into this heavy debt? How long has it been accumulating?—About two years. The D.O.A: Did your father take a deed of security on the machinery he provided?—lt is on his property. Bankrupt stated that he had no interest whatever in the machinery, which was bought in his father’s own name. He had worked practically on his own and the business was entirely his. Mr Ray worth: Then, why did you put up your name as manager?—l later thought it was misleading and advertised the business as a straight-out concern of my own. I cannot say exactly when I did that. Mr Rayworth: Why did you not take down the misleading sign?—l never thought of it. Replying to the D.0.A., bankrupt said that, as far as he knew, Ins books dislosed all figures in connection with the business. The working premises were known as the West End Joinery Factdfy. His father’s only interest in the factory was his ownership of it. Bankrupt stated that a machine costing £45 had been installed at his own expense and was included in the assets Anyone dealing with him might possibly think that the machinery _ was his He did not advertise the business as his own in order to lot anyone else out of a difficulty, but because he considered the title of manager was misleading. Mr May worth: What about the additions to the back verandah of the house in which you are living? That was done with timber left over from What is.the shelter which looks like an ice-cream stall?—That is a playhouse. HIS DAUGHTER’S LORRY. The D.0.A.: For th<f children or yourself?—The children. Mr Rayworth: You built this after

you knew your position. Did you think you were solvent in July P—l would not guarantee that. You say the motor lorry belongs ..o your daughter, who is eight years of age ?—Yes. Did you think you were in order in putting on a set of tyres for the lorry owned by your daughter when you could see what your position wasp—l had to do it 'for working purposes in order to complete a job. Some of your creditors were pressing you for payment of accounts at that time?—Not then. Several creditors interposed that bankrupt had mis-stated the position, and he replied that one or two had approached him. Mr Rayworth: To whom do the tyres now belong P—The lorry—my daughter. Mr Rayworth: Yes, and my tyres are on it. You gave them to your daughter when you had no hope of paying for them.

. Bankrupt, further questioned, said he did not' think ho owed more than £IOO when he first came to Palmerston North.

The D.0.A.: I think that we had better adjourn the meeting. The creditors expressed a wish to obtain all the evidence available to assist them in future investigations.

Bankrupt said that he made no arrangements with his father when he came to Palmerston North. He denied that his father had said he could have the house in connection with which he stated he had incurred a debt of £IOO for plumbing. Replying further to the D.0.A., bankrupt said that the property was in such a bad way that he had to do something before he could live in it. Consequently, he had spent £IOO on plumbing, £4O on timber, and- about £l9 on plastering. He had added two rooms, a bathroom, wash-house and verandah in his spare time. The D.0.A.: Did you consider you were justified in doing all this'?—l thought so. ill- Kyle: You thought this homestead was not good enough for you to live in after coming away from Napier owing money?—Yes. Why did you go and spend all that money on the place if it was not yours"?—l had to carry out improvements just like paying rent. _ , But you never paid for the improve-' ments, and you admit that you worked for different employers when you came to Palmerston North. * Bankrupt replied that he worked as foreman for his father for two months and was paid. 1 Mr Kyle: Does that not show that your statement is incorrect?—l was not working regularly. A MONTH’S EXPENDITURE.

Bankrupt, replying to another creditor, said that, in dune and July of this year, he had bought furnishings valued at £33 9s from a local firm, tie had paid over to another for a gramophone. If the creditors had accepted his father’s offer, the house property would have been transferred to him on the condition that a niort-

gage was raised to pay for the machinery. His father would not, however, agree to the raising of more than £t>oo.

Mr Hayworth: You drew about £5 a week for wages, you say, but for the month of May. £62 was drawn to meet personal expenses. The D.0.A.: Have you any explanation to make concerning that?—No, I paid for benzine and oil out of that. Mr Martin: Did your father ask you to file when you were in Napier?—Yes. The D.0.A.: How much did you owe there? It is nonsense to say that you do not know. Bankrupt: Ido not know. The D.0.A.: That is a most unsatisfactory answer. Bankrupt: My solicitors advised me not to file at Napier. Bankrupt said that since he had been in Palmerston North had had paid a few of the Napier debts, but lie did not know the total amount in r volved. On the motion of Mr Gordon the

creditors passed a resolution to adjourn the meeting sine diei The D.O.A. intimated that another one would ho convened early in the New Year. Bankrupt was represented by Mr G. Tremaine.