BANKRUPT MOTOR MECHANICS

Otago Witness, Issue 3768, 1 June 1926, Page 68

BANKRUPT MOTOR MECHANICS

MEETING OF CREDITORS. A meeting of the creditors of Andrew Lilburne Hood and David Albert Edward Hood, motor mechanics, of Milton, who were recently adjudged bankrupt, was presided over on Tuesday afternoon by Mr E. W. Gave (Official Assignee). About half a dozen creditors were represented or present. The bankrupt’s debts were set down as £207 158 7d, and the assets (comprising mostly book debts) amounted to £94 Is 2d, leaving a deficiency of £ll3 14s sd. The principal creditors were Keen and Weddell (Balclutha), £46 17s 4d; Michelin Tyre Company (Christchurch), £4l 4s; British Imperial Oil Company (Dunedin), £3l 7s 6d. The only secured creditors were W. A. Scott and Sons (Dunedin), £66 9s lOd. Andrew Lilburne Hood, in a written statement, said he commenced business in October, 1921, as a taxi-driver in Milton, with a capital of £BO and an Overland motor car, on which he owed £lO. He paid off this amount after his brother joined him. He then borrowed £9B from W. A. Scott and Sons, at 8 per cent, interest, and was supplied with goods to the value of £75. They paid 12s weekly for their premises at Milton. He later borrowed £3OO, and purchased the building, paying £IOO for the equity and £2OO for additions. He immediately commenced the repayment of the borrowed money. Subsequently motor accessory and cycle prices fell considerably, and trade and work fell away as a result of a very wet winter and spring. He had difficulty in getting money owing him. He sold the p enises and the balance of his stock in December, clearing only £33 14s 9d. He then began work as a motor mechanic, hoping to pay his debts with his wages and his book debts. Several judgments were given against him. and he w r as eventually compelled to file. He said he was married and had three children. His wife had been in hospital for nine months, and he had had to pay £3 10s per week for the maintenance of himself and bis children. He attributed his failure to the fall in motor accessory values, bad weather conditions, sickness in his family, and a lack of capital. David Albert Edward Hood said he joined his brother in business about January, 1922, putting £l2 into the concern. He assisted his brother in the business, and when things slackened off he used to accept employment driving cars for others. He boarded with his mother. He severed his connection with the business in September, and was now bootmaking for Mr Reid and running the business for him at £3 per week. The Assignee asked if anyone had any objection to the younger Hood applying for his discharge as soon as possible, as he seemed to have had only a very slight interest in the firm, and in addition he was a minor when he first went into the partnership. Mr Keen said he had no objection to the boy taking steps towards discharge. He had turned 21 only in October, and had taken no active part in the partnership, and he would like to see the boy freed immediately. The Assignee said lie did not think they ccfuld do that now.

AJr Scott supported the previous speaker’s opinion that the boy should be allowed to make an immediate application for discharge. It was decided that the boy be allowed to make application forthwith.

The matter was left in the hands of the Official Assignee to administer to the best advantage.