A BUSH CONTRACTORS DIFFICULTIES.

New Zealand Herald, Volume XL, Issue 12240, 8 April 1903, Page 6

A BUSH CONTRACTORS DIFFICULTIES.

ESTIMATED ASSETS EXCEED LIABILITIES BY £2600. A meeting of the creditors of John Black, bush contractor, of Auckland, was held yesterday, before the official assignee (Mr. J. Lawson). There were present, in addition to the debtor and his solicitor (Mr. Hanna), .Messrs. Gray (for the D.S. Co.), Bell (for Mr. Chadwiek), Hanna (for Self and T. and S. Morrin, Limited), Tewsley (for Sar'erood, Son, and Eweu), Hamblin, Wright, and Lumpkin. There were also present, informally. Messrs. MacCormic 1 (for the Kauri Timber Co.), and McGregor (for Horton Bros.) The official assignee read the -debtor's sworn statement, also correspondence with the Kauri Timber Company. After some considerable discussion it was resolved, on the proposition of Mr. Hanna, seconded by Mr. Tewsley, "That the official assignee be instructed to take legal advice on Mr. Black's claim against the Kauri Timber Co., and if such advice be satisfactory that proceedings be instituted to enforce same, and that the creditors ratably agree to indemnify the official assignee against all costs which he may incur, to the extent of £75." On the motion of Mr. Grey, seconded by Mr. Tewsley, it was resolved, " That Mr. Black be handed back his tools of trade, horse, and bridle." The debtor made the following sworn. statement before the official assignee :—" I am a bush contractor, and have been so engaged for several years. When I entered into my last contract with the Kauri Timber Co., on June 19, 1901, I had a capital of £800, money earned from a previous contract with the same company, and had no indebtedness. This money has all been absorbed, and my present liability is solely in connection with the last contract referred to, which was worked for about 12 months, during which time I felled some 4,500,0000 ft of timber, at the contract rate of 2s 3Jid per 100 ft, and on account of which I received advances to the amount of £3080 5s lOd, which was disbursed in wages, stores, etc., and in household expenses. A heavy deduction for damage to logs was made by the company. The amount of this deduction was enormously in excess of the actual damage to the timber. This deduction amounted to about 20 per cent, of the logs actually delivered, and as they refused to give particulars I declined to go on with the work. My contract was for 16,000,000 ft, and under the circumstances it could not possibly be carried out successfully. In respect to these deductions I had resolved to bring an action against the company to recover for damages and work done, "etc., to the amount- of £3000, but this has been forestalled by the action of a creditor, who had me adjudicated a bankrupt on February 27 last. My unsecured liabilities to 14 creditors, amount- to £486 10s 6d, and mv estimated assets (including £3000 due by the Kauri Timber Company) to £3128 Os'lOd; surplus, £2641 10s Id. I have disclosed everything I possess, and the nature of assets. His solicitors advised him that he had a good case against the company named, and he believed that his just debts would be paid in full.