BANKRUPTCY.

New Zealand Herald, Volume XLIV, Issue 13523, 22 August 1907, Page 7

BANKRUPTCY.

A MISCALCULATING CONTRACTOR

A MEETING of creditors was held yesterday forenoon in the estate of John William Hill, a labourer, of Ohinewai, bankrupt. The official assignee (Mr. E. Gerard) presided. Mr. Neumogen appeared for the bankrupt. Mr. Gerard said the statement of. the bankrupt showed £216 5s 9d duo to unsecured creditors, and assets consisting of stock-in-trade £11 10s, book debts £51 19s, and also a surplus from a security in the hands of secured creditors valued at £85, representing a deficit, provided the assets were correctly shown, of £67 17s 9d. The statement made by the bankrupt was to the effect that he had been contracting during tho last 12 months in ploughing, clearing land, etc., and had also been engaged on road contracts. fie miscalculated tho profits ho would make on these contracts, and had not now sufficient funds to pay his debts. Two creditors had taken proceedings, and in order to prevent the whole of his property being absorbed to tho detriment of all the creditors, he filed. Mr. Gerard added that he had received a letter from Messrs. S. Vailo and Son, stating that the bankrupt had property at Taupin, comprising 5624 acres, title o.r.p. In August, 1905, they sold the property for £450, obtaining "a deposit of £150. This left a balance of £300. Tho buyer took over a Government mortgage of £90, leaving again a balance, of £210, which was secured to the bankrupt by a second mortgage of tho lease, payable in September, 1910, bearing 5 per cent, interest. Upon the second mortgage of £210 they had lent £125, due in November, 1908, at 8 per cent. They thought if they were authorised to put up tho security for sale there would be a margin in it for the creditors. The preference creditors decided to request the official assignee to realiso on the equity of tho Taupiri property at once, and also dispose of the other assets. The bankrupt, on oath, stated that he had given his wife £60, portion of the proceeds of the mortgage, on which she had to maintain herself for six months. He agreed to hand over a mare that was in his wife's name for the benefit of the creditors. The meeting then adjourned sine die.

CASE OF A PAINTER. The first meeting of creditors in the bankrupt estate of John R. Caston, painter, of Newmarket, was held yesterday afternoon. Four creditors were present, and Mr. E. Gerard, official assignee, presided. Liabilities duo to unsecured creditors wero shown to be £345 18s 2d, and to secured creditors £290 19s 6d on a security valued at £450, which with other assets valued at £8 13s, left a nominal deficit of £178 4s Bd. ' Bankrupt attributed his failure to losses on small sub-contracts, and owing to competition, illness, and other causes, he had been unable to picik up his position. He had been struggling since 1900. He gave up business lately, and had since been working as a journeyman, paying off some of his liabilities as his wages allowed. Had ho been uiven time, ho could, by selling his bouse and land, havo satisfied the claims in tho estate. The official assignee, said thero was nothing to be done apart from the realisation of tho surplus. He added that it was a very serious thing for a man to continue in business while he felt he was insolvent, but it would be difficult to frame legislation in the direction of stopping such a thing. Probably from 20 to 30 per cent, of tradesmen were in financial trouble at one time or other, but then they had reasonable grounds for believing they would retrieve their position. What the assignee strongly objected to in a contractor was, after losing on small contracts, to then take n bier fat contract, with the alleged idea of pulling himself toother. That sort of thing should br> stopped by law, as it amounted to "heads I win. tails you lose." It was constantly practised. A man who had failed several times in making a success of small contracts wa« not- justified in plunging into a large, one, ii) order to recover his posiTho creditor- decided to leave the matter of reali-ilig the assets in the e.-tn'e in the hands of 'lie assignee, and to allow bankrupt to occupy the house free of rent for the present.