BUILDER'S BANKRUPTCY.

New Zealand Herald, Volume XLIX, Issue 15133, 25 October 1912, Page 5

BUILDER'S BANKRUPTCY.

• ' :■-.* . ''.. ~:.-. .^■■<- ... ..' .*,.'..-■■"•■■' •'.,:; ; :;:-'-.'- ; .;': | A QUESTION OF ACCOUNTS. ASSIGNEE'S . STRONG COMMENT.; ; [BY ' TELEGRAPH.-—OWN ■ ; COREESPOOTEKT.] Hasoltok, Thursday. A meeting of creditors in the. estate of William John AUerton Farrelly,. contrac-.' tor, was held to-day. when a .dozen creditors were prest.it., Mr.. W. S. Fisher, official assignee, conducted the 'inquiry. The amount due to' unsecured creditors was assessed by bankrupt;;, at = £1774, aTi " though, this sum was considerably increased ; when the- whole of the p, claims o ! ,were proved. The -deficiency was estimated by; ■ bankrupt at £692, ■I 1 Bankrupt, in his statement, said he was adjudged a , bankrupt in Wellington ;; in December, 1906, and in 1910 he handed over his property to his creditors to : satisfy accounts against him.. He then came to the Waikato and had been unsuccessful in his contracts, owing to the fact that he was hampered for want of capital. Certain creditors began pressing him, arid at • ■ the time' he - called a meeting of .'• his creditors. : His plant .; had been seized by the holders of a bill of 6ale over It, and he had the bailiffs in his house. The evidence went to show that bankrupt had a number of contracts,; including one - for the Hamilton Municipal Baths, in hand, , but as it was; certain , a dead | loss would be made on each of . them, the; creditors, on the advice of the assignee, ; decided not to undertake completion of ; any : of. them. • : '-- " z The assignee pointed? out ' that -^ if the: j owners of the houses • , baths; etc., under, construction had to complete the work themselves,, and made ' a loss, they could come on the estate for >i the loss made through , breach.' of ; contract by ; bankrupt, but he did not think '.estate would suffer, much as there was nothing to come on. ' ■ :,\ ".' ' /•;■■ ';.. lii cioss-exarirination by ; the assignee, banlpupt said he had ,riot received ;' any official discharge from bis -bankruptcy" in .Wellington," but was under the impression that he had obtained his discharge. "He kept a ledger and • a wages ; book, ;•; but no cash:book;;" Tbre*; months ago' ho' had mads up a rough balance-sheet, l.and ; thought he was on.the right side, but he could not produce it, nor could; he give any account of hits disbursements or ..the ; number and amount of the orders -which he had given to local tradesmen 'on 1 account of current accounts. ..... ..The assignee :said that any man who be- ; haved like bankrupt was a menace to the community. This was the second '"trine he had sought ..the protection of the Court; arid apart from any personal; feeling the creditors might have he thought/ they should take into consideration whether, in ; the interests of the general public, this sort of thing should.be allowed to go on. P The question of - prosecuting 'bankrupt for keeping :imprpper: ; books was left in. the' hands of the.assignee. Another meet- 7 ing of creditors will pwibablyv be called at an, early date, at which bankrupt will be; expected to produce a statement of his dis- 1 bursements during the time he has been in Hamilton. ' : : ' Tlie assignee remarked that: he: did not think there was much prospect or a dividend.;: - ' ■•■'" '~.