PROSECUTION OF BANKRUPT BUILDER IS RECOMMENDED

Manawatu Times, Volume LIV, Issue 6815, 19 January 1929, Page 10

PROSECUTION OF BANKRUPT BUILDER IS RECOMMENDED

Creditors Dissatisfied

DEBTS INCURRED WHEN NO PROSPECT OF PAYING

When Ernest Leopold Ranfurly Hocking, a bankrupt, builder of Palmerston North, met his creditors on December 21, it was obvious that those affected by his insolvency were far from satisfied as to its causes. On the opening day of the meeting, it appeared that timber supplied to bankrupt and still not paid for wai used in improving bis father’s prop or tv, in building a playhouse, and that bankrupt’s infant daughter was the owner of a motor lorry. The adjourned meeting was completed yesterday, when, after bankrupt's affairs had been thoroughly probed, the creditors assembled passed without dissent the following resolution. Whereas it appears to this meeting or creditors that the bankrupt has systematically attempted to defeat his creditors, that the bankrupt’s statements are unsatisfactory, incomplete and incorrect, that proper books of account have not been kept, that reckless liabilities have been incurred without reasonable prospect of paying for them and that bankrupt’s personal drawings have been excessive, this meeting resolves that the Officia, Assignee take the necessary steps by giving the Crown Law Office all information in his possession with tho obicct of prosecuting bankrupt. “ The D.O.A. (Mr. C. E. Dempsy) presided over the following creditors, Messrs W. Rayworth, W. A. Kyle, ,F. Martin (Martin Bros.), W. Turner (Justice and Edmonds Ltd.), W. Bo-dc-U (Auckland Tile Co.), A. Hopwood, J M. Gordon (Taringamutu Sawmill Co.) Wills (Wills and Smythc), R. A. Brace (P.D.C.), L. Simmons (Tiratu Sawmill Co.) Bankrupt was counselled by Mr. G. TrCmainc.

The Examination. The meeting once constituted, Mr. J. M. Gordon took up the examination. In reply to questions, bankrupt stated of the £45 worth of in his house, his wife owned about £5 or £6 worth. The gramophone wa3 the property of his wife. He had paid for it. To Mr. Gordon: Witness bought some of the furniture; some ho had made. Regarding a debit entiy for £65 in his bank pass book, the amount was in repayment of a loan to the Manaivatu Loan Co. Tho loan was to Mrs. Hocking, the furniture being the only security given. On being asked as to whether he had given any further security, after some hesitation bankrupt replied that he had included his lorry. When arranging for the loan, Mr. Cronin, of the Loan Company, inspected the security. Bankrupt denied telling Mr. Cronin that the machinery was his or that he offered it as security. .

Previously Insolvent. A debit in his pass hook for £l2 ISs Sd marked J.H.H. was for rent and insurance due to his father. He did not know how the amount was apportioned. Tho house and factory were insured. He did not know to which item the money was applied. He drew £32 in August, and in September, £29. He had no record to show how the money was, spent. He kept no books other than those in the possession of the D.O.A, No cash book was kept. He had had a meeting of his creditors in Napier in August, 1922, when his debts totalled about £SOO. He had heard nothing of that meeting since. His creditors suggested that his father might help him. At tho time he had no assets. Bankrupt admitted having a dwelling house which went hack to the builders. Ho denied that at the time he had any equity in land in Palmerston North. £750 Debts Still Unpaid.

In reply to a question as to how much of the £BOO had since been paid bankrupt said about £SO. The rest of the amount was still owing, though now irrecoverable, owing to the Statute of Limitations. Hocking thought he had a right to give a security over the lorry, as he was his daughter’s guardian. Payments made into his account by his father were in connection with alterations to two houses. Bankrupt was handling all the moneys in connection with that work.

To Mr. Kvlc, bankrupt stated that he had a property in College street before going to Napier. He had a loan of £IOO on the land, which subsequently went back to his father. When he came back from Napier there was no arrangement whereby bankrupt was to get his father’s old homestead in payment .for labour put into a . house he built for his father, for which he had not' been paid. His banking account was closed on October 27 last. ITa had done no contracting since. Hu could not deny working for a Mr. McLean for eight months and drawing £165 5s 6d in wages.

To questions by Mr. Rayworth, bankrupt stated that last Easter he went a holiday to Napier in a car borrowed from Adams, Ltd. He did not pay for the use of the car. The trip might have cost £35. With regard to tho motor lorry, it was not his to deal with. It was his daughter’s. Ho started tho West End Sash and Door factory. His father was not in the business, beyond owning the plant and property. Hocking denied paying anyone £6O for a machine, also that ho had told one creditor that ho would be paid in full and that the rest could go. £74 drawn in May, 1928, according to the pass book, was used for personal expenses.

To Mr. Turner, bankrupt, said that he was insolvent when he left Napier in 1926. His Father Benefits. Further examined by Mr. Gordon, bankrupt estimated tho ‘total value of improvements to Ills father’s property et £250. His rent would have been

higher if he had not, improved the place. Ho had never discussed rent with his father. A fair rental for the piece would bo about 30s a week, without the improvements it would be £1 a week. The offer by his father to compromise with his creditors had now been withdrawn. On the completion of tho meeting, tho motion set out above was passed unanimously. The creditors further decided that the Official Assigne take immediate steps to seize the furniture and plant at present on the premises in College street; that the Official Assigne be instructed to take action against J. T. Hocking (bankrupt’s father) for the recovery of expenses of tho improvements to his property made by bankrupt, for which he had not been paid.