BANKRUPT BUILDERS.

Otago Witness, Issue 3765, 11 May 1926, Page 17

BANKRUPT BUILDERS.

MEETING OF CREDITORS. A meeting of creditors in the bankrupt 1 estate of Ivon and Lance Murdock, builder#, of Dunedin, was held before the Othcial Assignee (Mr E. W. Cave) on Friday. Mx W. A. Moore appeared for the creditors and the bankrupts were represented by Mr G. T. Beylee. The principal unsecured creditors are as follow:—J. Scott and Co., £204 Gs; Hogg and Co., £139 2a sd; J. and T. Christie, £203 17s 3d; John Edmond (Ltd.), £BO 16s 2d; Simpson and Barnes, £6l 8s sd; D. MKen.zie, £6l 16s; Hammond and Bain, £46; Moore, Moore, and Nichol, £32 17s; M’Callum and Co. (Ltd.), £33 13s lOd; Smith and Smith (Ltd.), £29 12s lid; Laidlaw and Gray (Ltd.), £29 14s 2d. The secured creditors are: Edmund J. / Smith, £451 (estimated value of security / £1300); David Leslie, £7OO. Ivon Murdock, in his statement, said that he commenced business in Dunedin with, his brother Lance as builders in May of last year. They had no capital to start with, but their mother gave them a contract to build a house for her, and they made a profit of £IOO after paying all outgoings, including wages, for themselves, for which they allowed £6 a week each. They purchased, a section at Kaikorai for £IOO, which sum ; they borrowed from their mother They proposed to buy three other adjoining sections for £IOO each, and paid £5 as an option on them. Their idea was to build a house on the first section and when they had sold it build on the second, and so on. They commenced, building and found that they would have to borrow money to complete, and they arranged a temporary murlage for £7OO. A third of that was paid as soon as the roof was cn, and another third was payable when the job wa3 completed, and the final third one month after the job was ' completed. When the house was finished they obtained a further payment, making m all £4lO, and they should have received £466, but the paths were not in, and therefore the balance was withheld. Out of the moneys received they paid all wages and accounts- as far as the money would go. Creditors began to press them and as they had not sold the house and the creditors were thrcitening proceedings, they decided to file Their liabilities were £1064 7s 9d and assets £2lO ss, according to their statement, but they claimed that certain moneys were not paid out, and that there was a surplus of about £9OO over and above the mortgage on the property. He would say that after completing their mother’s house the plumber, the electrician, and the painter had not been paid in full, and there was about £l7O owing to them. Lance Murdock corroborated the above statement, and added that with reference to his private estate, when in Christchurch his wife bought a house out of her savings for them to live in. She paid a deposit of £ls n and also bought the furniture. This was in 1921, and since then she had continually been making improvements and spending her money on the house. The furniture all belonged to her, as it was bought with her own money, and she had also paid the interest on the mortgage.

In regard to Mr D. Leslie’s connection with the business, Ivon Murdock said that the first he saw of Mr Leslie was on the job. He understood that he was employed by Mr Moore. He had received neither written nor verba' notice of liens on the house. His brother and himself had completed the work, the material having been obtained from Mr Scott. This was before the mortgage was signed. Bankrupt said that he was the business man of the firm. He understood that the mortgage was given to protect Mr Scott and Hogg and Co., the former having given the timber when he knew they were in trouble. There was no amount specified when bankrupt signed the mortgage. They started without any capital, but their mother financed them in their first building venture. Mr Scott said that the brothers had got themselves into such a mess than they did not know what to do He knew them, and in order to get the house finished, he had suggestod that the best thing for them to do was to get a second mortgage so that they could get the house sold. After the deed had been signed he supplied £SO worth of material

Examined !y Mr M’Cormack, Lance Murdock said that the house built for his mother was on contract, and they received £1650 for it, that being the price. The Assignee said that the liabilities were £lO6l, and according to the bankrupts their assets were £143.

At. this 6tage Mr C. J. L. White, who appeared for Lance Murdock’s wife, said that lie desired to look into the legal position. His time nad been occupied in the Supremo Court lately, and he had been too busy to study the case. Mr Cave suggested that the meeting should be adjourned pending an inquiry. Mr Leslie said that Lance Murdock had come to see him, and had said that Mr Moore had suggested that he should go into the position with him. Mr Smith had hesitated paying out on the job, and it was only through the speaker’s personal undertaking that the work progresoed, Mr Moore: You must take into consideration the fart that the bankrupts have not kept books. Their statements are not at all satisfactory. The meeting wua then adjourned till May 28, at 2.30 p.m.