IN BANKRUPTCY

Northern Advocate, 6 February 1928, Page 6

IN BANKRUPTCY

CONTRACTOR’S MISFORTUNTES.

Two creditors, Messrs H. N. Geissler ami H. 0. Wolfe, attended the meeting in bankruptcy this morning of Thomas Wells, a well-known contractor and taxi proprietor. His debts amounted to £391 19s 9d and'his surplus from securities in the hands of secured creditors to £217 35s lOd, the deficiency stated being £B4 3s lid. In his statement bankrupt declared that most of his debts were incurred during 1927. In summer time he had been in the habit of taking contracts with the County Council. During the winter he ran a taxi to keep things going. Adverse weather over a year ago had led to three weeks being spent in camp at Hukerenui without any work being done, and the contract was a failure financially. That was followed up by unremunerative contracts at Kaimamuku and Waipu. Then a contract job at Maunu was washed away by a flood and it had to be done again. Most, of the accounts owing were for horsefecd connected with these contracts. Had the weather been favourable, bankrupt felt sure that he could have made the contracts pay. Fire had destroyed his shanty and books. He had hoped to recover by taking more contracts, but competition was too keen. When pressed for payment of instalments on his car, he sold four horses and a dray to his mother for £2OO, and afterwards hired them from her. Three of his own horses died within last year. In June, 1926, he bought a house and paid £250 deposit, having made that amount by contracting. Payments under the mortgage had not been kept up, but recently bankrupt had not incurred any further debts. In answer to Mr E. P. Ramsey, Deputy Official Assignee, bankrupt stated that he had been solvent until 1927, when he took on contracting and had expected to make £3OO for the year’s work. Prilor to that time he had paid his way by running a taxi and by contracting, He lost three horses, but had sold a horse, a plough, a scoop, and t some old harness to his mother.

With reference to some accounts owiiirg for use of the taxi, jMr Wolfe said that it was reasonable to write off 7i> per cent of the total as irrecoverable. That was- his experience. . Bankrupt had OAvned bis car for nearly three years. He paid £440 lor it, and it had done about 40,000 miles. Offers of purchase had been received. The rest of his assets Avcre not Avorth more than £2O.

As there Avas no quorum no resolution Avas recorded, but it was -decided that the Deputy Official Assignee should dispose of the assets as best he could in the interests of the creditors.