WHAKATANE BANKRUPT

New Zealand Herald, Volume LX, Issue 18531, 16 October 1923, Page 9

WHAKATANE BANKRUPT

SPECULATIONS LAND. EFFECT. OF THE SLUMP. PAINTER'S • VENTURE FAILS. A meeting of creditors in the bankrupt estate of Daniel Patrick Hall, painter and paperhanger, of Whakatane, was held yesterday, ' tho ' official assignee, Mr. .W. £>• Fisher, presiding. Two creditors were represented, and tho bankrupt and his solicitor were present. . : , Tho bankrupt's schedule disclosed liabilities to unsecured creditors amounting to £618, and to secured creditors £178 f, the value of securities being £2640.' Other liabilities were net down at £350. In® assets, including £853 surplus from securities, were estimated at £2398, leaving an apparent surplus of £1430. , The debtor's statement set out that ho started business at Whakatane in 1916 with a capital of £250. He purchased land, - which, he subdivided into building sites. As the land proved to be unsaleable, he commenced to erect dwellings upon it. Several sales were then effected, but he received only a small amount of cash. lo continue his operations he was compelled to mortgager several of the properties.. A serious slump occurred in the building trade, and bankrupt was unable to dispose of the houses tie had completed. He ceased building at this stage, as' his capital was exhausted Some of;the houses were let, but his income barely, sufficed to pay interest on the mortgages.^ .About 10 months ago he considered that if the prospects improved he would be able to pay all his debts. He accordingly asked his creditors to permit him. to carry on, but as one objected he was prevented from carrying out his intention. _ On realising that his failure «JVas imminent, he offered to make a deed of assignment, but this was rejected. ' In reply to the assignee, bankrupt said he was making headway until early last year. ■ •' . ■ The Official Assignee : "Do you honestly think your valuations are reasonable, and that the estate will pay 20s in the £." Bankrupt:" Yes, I have based my calculations upon my actual expenditure upon the properties." . ;•.>■■■ Mr. Fisher: "In that case your calcula tions are of little use to your creditors.. You cannot compute your assets upon that basis."; • - The official assignee said he , feared there was no hope of realising upon the properties owing to the heavy mortgages.. "If anyone were to come forward and offer 5s in the £ for the assets of this estate, I would be prepared to advise the creditors to • accept the offer," said Mr. Fisher ' '. * ■„ Bankrupt said he was sure the estate would realise its full value if. the properties were held until the market .was firmer. The official assignee remarked that this could not be done,. as the bankrupt could pay neither interest nor rates. Referring to ! , Hall's 4 mention of . the slump, Mr. Fisher, said the speculation in which 'bankrupt had indulged was precisely- the type of property dealing which had been responsible for. the fluctuation in land values. : •" ' : As the majority of the creditors were not represented at the meeting, no decision was reached is> regard to the realisation of the-assets. ■' ' •