BUILDER'S FAILURE.

New Zealand Herald, Volume LII, Issue 15964, 8 July 1915, Page 5

BUILDER'S FAILURE.

TOO MANY CONTRACTS. QUESTION AS TO LIENS. A meeting of creditors in the estate of Charles Edward Wakelin, builder, of Epsom, was held yesterday afternoon. The official assignee, Mr. VV. S. Fisher, presided. Bankrupt's schedule showed that a sum of £1901 18s 8d was owing to unsecured creditors, and an amount of £399 15s 6d to secured creditors. The securities were valued by bankrupt at £500. The assets were set down at £1142 6s 9d, made up of amounts due on contracts, £1012 2s 3d; surplus from securities in the hands of secured creditors. £100 4s 6d ; book debts, £27 ss, estimated to produce £10; and cash in hand, £20. The nominal deficiency was £759 lis lid.

In his statement bankrupt said he was i 29 years of age, and wad married. He I had been in Auckland for years. He | had had a thorough training in the buildj ing trade, having learned the business ! with his late lather in Wellington. When he j came to Auckland lie had a capital of • £190, and he commenced work un the raili ways. About three years ago he took up ; his trade again, and purchasing two sec- ' tions at Epsom he built on them as a | speculation. He hnd since purchased other I sections, on which he. had built, or sold, ;or exchanged. About November. 1914, , as .speculative building was not good, he ; gave it up and entered into building on ; contracts for .Mr. Sheath. He then had ! about £40 cash. These jobs were prac- ; tieally all going on at once, and he attri- ; huted his present position to tho fact ■ that he had too many jobs in hand, and I that the contract prices were too low. j Liens began to come in, and after several j meetings of his creditors he was compelled to file. He had practically no assets out- ! side the moneys payable on his contracts, I and these, he understood, would be dis- , tributed among those having liens, or I orders.

The assignee pointed out flint if the statement supplied was correct there would be nothing for unsecured creditors. Examined by the assignee, bankrupt said the furniture in his house belonged to his wife. He hnd been married for five years. Bankrupt's father made most of the furn'tiire and gave it to Mrs. Wakelin, bankrupt's wife, as a wedding present. It was insured for £150. Before the date of a private meeting of his creditors his wife gave a bill of sale over the furniture, and obtained a sum of £80. This was used to pay off nrivate accounts. When he commenced the contracts for Mr. Sheath he took steps to ascertain that he was solvent.

Mr. .T. J. O'Brien, representing the Auckland Rimu Timber Company, remarked that in his opinion bankrupt had been too easy coin;:, and in the case of Mr. Sheath had taken too many contracts at the one time. Still, he thought the prices for those contracts PrP fair. On the motion of Mr. O'Brien, seconded bv Mr. J. B. Johnston, the creditors decided to adjourn the meeting until certain matters relating to liens are settled.