BANKRUPTCY OF ARTHUR FUNSTON

Manawatu Times, Volume LV, Issue 7294, 2 August 1930, Page 3

BANKRUPTCY OF ARTHUR FUNSTON

Creditors’ Meeting A meeting of creditors in. the bankrupt estate ot' Arthur Funstou, storekeeper and carrier, of Colyton, -was held in the Feilding Courthouse yesterday afternoon Mr F. C. Litchfield, acting-deputy official assignee, presiding. There were also present, Messrs C. E. Taylor (representing Hodder and Tolley Ltd. and the Oroua Autos Ltd.), J. H. Thompson (Foilding Sash and Door Co. Ltd.), A. H. Maguire (Levin and Co. Ltd.), .T. M. Mason (Ct. M. D’Ath), L. Pierard (Broadway Motors), and J. H. Wilson (builder, P.N.). Mr J. Grant appeared for the bankrupt. Bankrupt’s Statement. Bankrupt stated ho had been a. resident of Colyton ior the past 16 years and nine years ago he purchased the general store at Colyton which he carried on until some three years ago. It was not a very good business andowing to the slump and to thu general falling away of country store business, he accumulated a lot of bad debts. He had worked up a carrying business in conjunction with the store and, the two together, made a good business. In April 1927 ho received an offer for the store, but. tho purchaser had not sufficient money to purchase the carrying business as well, so ho eventually sold the store and retained the carrying business. which he had conducted, ever since. The store business was sold for about £6OO of which £OOO was paid down and the balance paid by instalments over a period. At tho time he purchased tho store he also purchased a house property at Colyton which he was at present occupying. When he sold tho store he owed a considerable amount of debts which 1 ho had been gradually reducing. The carrying business had been quite profitable but recently some of his creditors had been pressing him. and as he was not able to pay them, ho resolved to seek the protection of the bankruptcy court. In October last ho raised a mortgage from the Fell ding Building Society to pay off an existing mortgago and to paint and renovate tho house. Tho cost of renovations proved to be a good deal tuoro than was anticipated. In eouneeton with the carrying business he had two motor trucks, but for the last twelve months he had only in uso at a time. In April last there was a balance of £SO odd owing on the smaller truck under hire purchase agreement. The balance was demanded and ho also had to pay £-10 for repairs to the other truck. To meet this he raised £.IOO on the smaller track from the Palmerston North Loan Coy. and gave that company a bill of sale for £l2O, which was repaid by monthly payments of £lO of which ho had only paid one; installment. In addition to the house and the two trucks he had an interest in an estate the value of which was about £6OO. Ho also had another old truck, an Austin car an l a sheep) frame for the lorry. The furniture iu the house belonged to bankrupt and was unencumbered. He had book debts esbim- . ated to realise £ISS. Ever since ho had sold the store lie had had difficulty with his creditors and had been striving to pray off - back debts. Ho had worked hard with this end in view but certain of his creditors forced him to file. Ho was a married man with five children the eldest being 14. Two years ago he had to undergo a severe operation which had put him to considerable expense. Bankrupt Questioned.

To Mr Taylor: He had been up against it for the last two years and he had incurred further credit, to carry on, while lie was in financial difficulties. While he was in financial difficulties in October last year ho arranged a loan from the Bedding Building Society to purchase his house and to efficict 'improvements to it. The alterations included the installation of an electric range. He got this :in preference to purchasing a new lire range. He reckoned oil the wool season and other work putting him in the position of being able to liquidate his liabilities. Ho admitted that ho owed Oroua Motors Ltd some £2OO when he rearranged his finance regarding his home. Up to tho time of filing ho had hopes of being able to meet the position. but bis expectations had not been realised. To Mr Mason: tie borrowed £SO from Mr D’Ath because he was hard up and in spite of that lie had gouc on with alterations and additions to his homo. He received £SOO from the Gibbons estate about twelve months ago, the bulk of which was used to

satisfy a mortgage to one Parkinson. The A-Usitin ear which he drove lie had had for five years. The additions to tl;c building were necessary to accommodate his family. To Mr Pi era id: Ho had taken one of his trucks to Palmerston North to tho Broadway Motors to have it repaired at a cost of £4O odd and had taken delivery of it some two or three days before he filed. Ho had not gone to a Palmerston, garage because he could not get credit in Building. This was due to tho fact that tlio Oroua Motors were too busy to do tho work. To Mr Taylor: He paid the Bank of Australasia £6O in June in consequence of a letter from the bank requesting him to reduce his overdraft. Ho was not threatened with proceedings by the bank. To Mr Grant; He had lived in the house for 16 years and the recent renovations were the first that had been undertaken. The provision of- a sleeping porch was necessary as accommodation for his boy. The £6O he paid to the Bank he borrowed from his wife. About £SO of the loan ho had obtained from the Bedding Building Society had been set aside for the alterations to his house. At tho conclusion of the examination, Mr Taylor said he had no desire io sec bankrupt's furniture touched*

Counsel would have to consult his clients, but in the meantime he felt that bankrupt might endeavour to carry on and meet his creditors. Mr Taylor thought that bankrupt’s action in filing was precipitate an.l also that bankrupt perhaps realised now that ho had done wrong iu having £2OO worth of work done to his house at a time when his finances would not stand it. It was agreed to adjourn the meeting till September to allow bankrupt, to make an offer to his creditors.