SERVICE CAR FAILURE

New Zealand Herald, Volume LXIX, Issue 21254, 6 August 1932, Page 13

SERVICE CAR FAILURE

BANKRUPT PROPRIETOR DEFICIENCY EXCEEDS £IOOO * Dissatisfaction with the bankrupt's position was expressed yesterday at a meeting of creditors of Lawrence William Pickett, service car proprietor, of Mount Eden. According to bankrupt's statement, debts to unsecured creditors totalled £983, while there was a deficiency of £4O on a secured liability. There were no assets, leaving a total deficiency of £1023. Prior to March, 1931, he had been a taxi-driver, driving a cab which his wife held on a hire purchase agreement. This car had been traded in for a seven-seater vehicle. In March, 1931, bankrupt had commenced operating on the Auckland-Napier run. In August he had taken over under hire purchase a car for £751, at £3O a month, and in September a third car on hire purchase at £978, or £3O 10s a month. At this time all payments on the cars had been met, and only one other debt, for a tyre, remained outstanding. To cater for Christmas and New Year holiday traffic he had later taken over a fourth car for £225. He had instructed his drivers to pay cash for all expenses. The anticipated holiday trade did not eventuate, and much of the traffic was spasmodic, requiring many empty return trips. The service had lately been showing improvement. Bankrupt estimated that his personal withdrawing:* since March, 1931, had not averaged more than £3 a week. He attributed his bankruptcy to unexpected debts incurred by his drivers, to the failure of Christmas trade, and the slack period during February and March, and to the bankruptcy of six of his agents, which had, in addition to money losses, seriously affected his bookings in their towns.