IN BANKRUPTCY

Manawatu Times, Volume XLIX, Issue 3478, 14 October 1926, Page 9

IN BANKRUPTCY

PUBLIC EXAMINATION. A DANNBVIRKE CARPENTER. At the Palmerston North Courthouse yesterday, before Mr. G. S. Clark, acting registrar of the Supreme Court, a public examination was hoH into the affairs of John Benjamin Mantton, carpenter, of Danncvirke, who filed a petition of bankruptcy on June 29, 1926. Mr. F. H. Cooke appeared for the District Official As signeo (Mr. C. E. Dempsy) and Mr. A. M. Ongley for the bankrupt. Answering to the questions of Mr. Cooke, bankrupt deposed that ho had como to Dannevirke in October, 1925, and had set up business as a builder and contractor; he had had no assets when ho started in Dannevirke. and he had proceeded to take contracts, which, however, had not altogether paid. In December he had realised that he was insolvent, and the statement he had made in the examination before the D.O.A. to the effect that ho could not pay his creditors in December, was correct. Ho could, however, have paid a little in January The debts owing to unsecured creditors amounted to £1,049, and he had practically no assets.

In January, 1926, ho had obtained credit from the Dannevirke Woodwork Co., to the extent of £57, and in February a further amount of £ll2 Ss lOd. These amounts had been used for obtaining timber and supplies. Mr. Cooke: “Did you tell Mr. Craven, manager of the company, that you held the freehold of a section in Dannevirke ?”

Bankrupt: “It would have been freehold. When Mr. .Craven asked me if there were any mortgages on the section I replied that there were none of which I knew.”

Explaining the exact position in regard to his property in Danncvirke, bankrupt said that ho had bought three-quarters oi an acre of land for £3OO, but had paid no deposit on it. He had erected two sheds, valued at £OO each, on the section, with timber from the Woodwork Co. In regard to a debt of £153 owing to Mr. C. B. Andrews, bankrupt stated that ho had had a disagreement with Mr. Andrews about a number of toy horses for which he was acting as agent. After January he had bothered no more about the horses, and, in regard to the debt, which he confessed he was unable to understand, ho mentioned that there was credit owing to himself from Andrew’s for material supplied. The debt had been incurred first of all in November, and had mounted in the months of December and February. Bankrupt admitted a debt of £145 11s 9d owing to Mr. D. Drummond, 'w'hich had been incurred between January and March, for building ma ' torial, machinery, and hardware. At tho time ho had thought that ho would bo able to pay, for he had explained his position to a Mr. Gillan, who had obtained £IOO for him. No security had been offered Mr. Gillan, but he had taken a rough estimate of what he hoped to make out of selling toys, and this had been all the security. He had given Mr. Gillan a list of creditors, and tho £IOO borrowed had been paid out, tho Woodwork Company obtaining £SO.

Bankrupt admitted debts owing to Messrs. Barraud and Abraham (£SS), to Briscoo and Co. (£56 6s 6d) and to R. E. Tingoy and Co (£46 6s). In March ho had incurred a debt to Mr. .0. P. Barber, for 4000 feet of limber, which had been used in making furniture, and for work on his section. Ho had offered to pay Barber cash, when ho took the first load, but Barber had made the suggestion to square up when all the timber had been delivered. He really thought that he could have paid cash, because although thero was no promise, he had thought ho would be able to got the money from Mr. Gillan. There had been a half formulated plan of Gillan and ho entering into partnership.

Bankrupt admitted purchasing a car from a Mr. Watson, and had paid for the vehicle by a cheque which was not met. When he issued the cheque he had £415 in the bank. In reference to the sheds built on his section, bankrupt stated that one had cost him £95 and the other £6O, but as he had paid nothing on the property the estate lost the value of the erections. In reply to a question from Mr. Cooke, bankrupt stated that ho had lost £7O on one contract alone, and on the others close on £l6 0. Ho had made profits on some contracts, amounting to about £35, but this did not affect the loss of £l6O. Mr. Cooke: “Can you tell mo what you have done with all your money?" Bankrupt: “The only way I can account for it is my losses incurred by the high cost of labour.” Ho admitted that for all his various jobs ho must have collected close on £SOO. Mr. Cooke: “You have lost £155 on the sheds, and £l6O on your contracts. That makes £315 accounted for, but it leaves nearly £I2OO unaccounted for. What has become of the rest of the money ?” Bankrupt: “Well I must have paid put £4O a week in wages; except for this I cannot account for the money.” In reply to Mr. Ongley, bankrupt paid that when ho had gone to Dannevirke, ho had had considerable contracting experience in Wellington. There he had been able to pay his way only. After Gillan and ho had separated in March, he had gone on right up to the time of filing and had paid cash. His hack debts ho had been unable to moot, so he had decided to file. The debts incurred between January and March, he had understood, had already boon mot. This concluded the examination.