BANKRUPT CONTRACTOR.

New Zealand Herald, Volume LXVI, Issue 20405, 6 November 1929, Page 16

BANKRUPT CONTRACTOR.

/ OTHER VENTURES FAIL.

LOSSES IN CLOTHING FIRM

A meeting of creditors in the bankrupt estate of W. H. Craig, contractor, of Neftton, was held yesterday, the official assignee, Mr. A. W. Watters, presiding. A considerable number of the creditors present had claims against the partnership of Craig Brothers and it was decided to hold a private meeting of the partnership creditors to obtain further information.

The statement of W. H. Craig showed a deficiency of i'3o2. The liabilities, debts to' unsecured creditors, totalled £402 arid the only asset was book-debts estimated 'to produce £IOO. It was noted that bankrupt had a probable liability as a partner in 'Craig Brothers, the amount being dependent on that realised for the assets of Craig Brothers. A list of partnership liabilities totalling £5968 was given. Bankrupt stated that a balance-sheet of Craig Brothers in June, 1923, showed a surplus of assets amounting to over £IO,OOO. For the purpose of putting money into a clothing manufacturing business, which proved a complete failure, in addition to drawing against his share of the partnership assets, he, jointly and severally with two others, entered" into a guarantee for £3OO to a bank and h'e persuaded his wife to lodge the title deeds of her property with the bank to enable him to borrow £950. All this money ho put into a company, which was formed to take over the manufacturing business. "When the latter went into liquidation the bank agreed to transfer the overdraft to Craig Brothers. At the same time the hank began to press the three guarantors far the £3OO and finally one of them paid the whole sum and took judgment against bankrupt, not pressing his claim against the third guarantor, and eventually took bankruptcy proceedings against Craig. Craig Brothers paid fhe bank, but on its , being found that the position of the partnership was not as good as had been previously thought bankrupt's brother refused to allow the latter to draw further. . Examined by the assignee, bankrupt caid that he was a sleeping partner, with a half-interest in the clothing business. Mr. Glaister, representing the bankrupt, said that the two contracts mentioned could not bo completed while a sum of money lying to the credit of tlio partnership was tied up. _ Questioned regarding his expenditure, bankrupt said that he drew £3 a week from the partnership, but never drew "a farthing" from the manufacturing .venture. The assignee said that there was some suggestion that the partnership assets would lie insufficient to pay the creditors ' in full, but there should be a substantial amount