IN BANKRUPTCY.

Northern Advocate, 30 July 1924, Page 6

IN BANKRUPTCY.

KAIKOHE CONTRACTOR'S

FAILURE

A meeting of creditors in the bank rupt estate of Walter Vivian Eoberts, builder, of Kaikohe, took place in the office of the Deputy Official Assignee, Mr. Ramsey, Whangarei, yesterday afternoon, the creditors present being Messrs. McCallum, Goodhue, Spinley, J. McCallum, and J. Reid,, all of Kaikohe. Mr. Harrold, appeared on behalf of

bankrupt . The file showed that amounts owing to secured creditors totalled £201 5s 3d und to unsecured creditors £992 Is lid, the chief items being—F. T. Goodhue £184 Is 10d, J. McCallum £179 Is Id, Kauri Timber Co. £175 19s sd, Dalgety and Co. £162 18s 2d, Wingate and Co. £54 13s 6d, N. A. Farmers' Co-op. £51 6s lid, Admorea £23 18s sd, Hill and Plummer £22 17s 10d, H. Hooker £16 5s od, and Dickeson Bros., Ltd. £15 10s 10d. The assets totalled i £227 8s 2d, leaving a nominal deficiency of £823 14s 6d. Bankrupt had started business in Kaikohe in November, 1922, with a capital of £40, and was not in debt at the time. For five weeks he worked on wages and then undertook contract- < ing, and a fortnight later a proper set ' books had been opened for him, but he had not been told how he stood until he asked for the information eight months ago. Four of five contracts undertaken had shown loss, all having been undertaken at about the same time. The last contract had shown a profit, of approximately £50. Bank-

rupt found that he was in difficulties about eight months after starting,. I when Dalgety's approached him regarding his account. Finding that the position was not good lie called a meeting' of creditors on the advice of Mr. Guy, who had had ;i .full list of them and had sent out the notices. That meeting had appointed supervisors and had agreed that bankrupt should carry on for six months to see how matters went. Bankrupt had felt confident when the last contract had paid that, if he worked on the jobs himself and did not take more than one at a time, he would be able to make good. As regards Vernon's security, it was over a workshop and cows which Mrs. Roberts had allowed him to mortgage. Tlie National Hardware Co., held security over a saw--bench. Dalgety's had security over an engine, which last evening had been removed by their

agents.

As only £15 had been paid off the purchase price of £100 it was considered that the equity in,the engine was insufficient to bother further with, unless the bill of sale was not in order as a hire purchase agreement.

Bankrupt had signed a number of cheques and hud left them with the supervisors, appointed by creditors to fill in and "pay what accounts they J wished. Dalgety's agent at. Kaikohe, I Mr. Pole, had retained the cheque book, -and Mr. Ellery, bankrupt's accountant, had informed him that lie had had difficulty hi getting it from him. Bankrupt declared that he had filed because he did not consider he was getting a fair deal from Dalgety's, who charged him retail prices, and allowed him no trade discounts. The creditors were.satisfied that the furniture was the property of Mrs. Roberts. Mr. McCallum prop'osed that no opposition be made to bankrupt obtaining hia discharge, providing that he agreed to a judgment being lodged against him. Bankrupt said that ■ rumours that Mrs. Roberts had or was likely to come int© a large amount of moner were erroneously bftsedl.

Mr. Harrold said that since his first meeting with his creditors bankrupt had worked night and day on Gammon's job. It had been arranged that lie was to get £5 a week as wages, but there was really £(59 owing to him on that score. After inquiry concerning this matter of wages and the manner in -which the accounts concerning Gammon's contract had been kept it was decided that bankrupt should secure a statement concerning the contract and its results. I