SCHEME FROM SYDNEY.

New Zealand Herald, Volume LXVII, Issue 20626, 26 July 1930, Page 11

SCHEME FROM SYDNEY.

"THRIFT SERVICE" FAILS.

BANKRUPT SEEKS DISCHARGE.

NINE MONTHS' ADJOURNMENT.

"Traders who succeed with their business operations as this man has done ought not to be treated with tho utmost leniency of the Court. That is my view of the proceedings," said Mr. Justice Smith yesterday, in adjourning for nine months a petition for discharge from bankruptcy. The petitioner was Edwin Walter Brinsden, of Auckland, taxiproprietor (Mr. Zirnan), and his application was opposed by the official assignee, Mr. A. W. Watters.

Mr. Ziman said the ground of the opposition was tho giving of a second mortgage by the bankrupt to his wife. Tho bankrupt, who had had a great deal of experience in the motor business, came back from Sydney with £4OO and' with the idea of a "thrift service." which ho had found was working successfully . in' Sydney. He enrolled as many members ns ha could get at an annual subscription of £2, and in return ho gave subscribers petrol and tyres at cost. Ho got the scliemo well started, but complaints were made by other traders to the oil company that supplied him, and apparently at their instigation it cut off his supplies.. H© found himself saddled with heavy responsibilities under his lease, and was unable to carry oil. One creditor brought about a sale of tho business. ; » ® His Honor: Tho assets realised £1 0s 6d.

Mr. Ziman said tho business was a total failure, because the schema of it. was gone. As an honest man, bankrupt refunded all. the subscriptions ho had taken. It was quite true that ho had given * " second morlgngo to his wife in tho December prior to 'tho bankruptcy. Bankrupt said ho was pressod for months beforehand to give that security. t> __\ Tho official assignee said the giving ofthat mortgage was the only objection. If the bankrupt made an offer ho would not oppose the application. " Mr. Ziman said his client could not I mako an offer. • > r,

His Honor said the unsatisfactory ■ feature of the ease was that a man who entered into trading operations showed assets of £1 Os 6d, and could pay;;'no dividend whatever. Hero was a man who entered into business on what purported'to he a fairly extensive scale, find showed his general business capacity by arranging his affairs in such a way that he went bankrupt and showed assets of £1 Os 6d. The proper course would be to adjourn the application for nine months, and it could bo brought before the Court (i gain.