CONTRACTOR'S FAILURE

Poverty Bay Herald, Volume LXVI, Issue 19918, 21 April 1939, Page 11

CONTRACTOR'S FAILURE

OVER £2OO DEFICIENCY VALIDITY OF SECURITIES MEETING. OF CREDITORS An intimation that the validity of certain securities given to a creditor, Mrs. W. E. Thomson, would be questioned was given by Mr. D. W. lies, solicitor for one of the creditor's at a meeting of creditors of George Murland, Gisborne, contractor, held yesterday afternoon.

The acting official assignee, Mr. C. P. Simmonds, presided, and the bankrupt was represented by Mr. J. de V. W. Elathwayt. Unsecured creditors were shown to total £387 9s lid, and secured creditors nil. Books debts we:-3 shown on the credit side to be £137 14s Id and the value of tools of trade £7. Unsecured creditors were as follows:—Mrs. W. E. Thomson, £130; Vacuum Oil Company, £B4 10s; Derby street Tyre Station, lis (id; Murray Roberts and Company, £l3 4s 7d; Tiniroto Motor Service, £l3 2s 4d; Allen Bros: and Johnston, £l3; H. Miller £36 13s; G. Willan, £l7; Owen Bros, £8; Poverty Bay and East Coast Carriers Association, £7 8s 6d; A. W. J. Mann, 15s 9d; W. F. lies, 18s Gd; W. Norman, £9 7s Gd; New Zealand Breweries, £3 2s Gd; Gardner's Motors, £2 17s Gd; Cook Hospital Board, £1 Is; T. Munro and Son, 17s; Stewart and Taylor, Wairoa, £4 10 Gd; Dr. Hallwright, Wairoa, 10s Gd; I. D. Brafnwell, lis Gd; Common, Shelton and Company, £3G 3s Gd; D. Urry and Company, 12s; Uptons Tyre Surgery, 18s; D. Watt, £2 lGs; Ancell and Company Makaraka, £24 fcs. 3d; HaMenstein Bros. £3 12s t'c; Gisborne Wairoa Inland Motors, Wairoa, £26 13s lOd; P. Goldsmith, £l4 lis lOd; C. McKinley, £lO IGs 8d; D. Harris, Waingake, £8 Is 8d: W. Wells, £. r ) Gs 8d; B. Wilson, £5 6s 8d; In his statement Murland said that previously 'he had been a waterside worker, but had been contracting for the Cook County Council for three years, lie attributed his difficulties in the first instance to the purchase of a motor truck and secondly to an accident which he suffered and which prevented him supervising his contract work. His position in each succeeding year became progressively worse. He was a single man and had •now lost the truck which he at one time owned. Sale of Truck Murland said he had sold the truck, but could not remember the date of the sale, which he thought to be in February of this year. From the sale of the truck he received £355 is. He paid off some of this on his truck and most of the balance to

a secured creditor. Other than a sum of money due to him from the Cook County Council, he had no other moneys due from contracts. Five of his workmen had not been paid for work on his contracts.

The bankrupt was questioned by Mr. D. W. lies, on behalf of one of the petitioning creditors as to money borrowed from a creditor, Mrs. W. E. Thomson. The amount borrowed was £l3O, witness saying that this was borrowed to pay the wages of his workmen. He had twice borrowed money to make up this sum, first receiving £BO and a second time £SO. On the first occasion he had had prepared by a solicitor a document offering security and on the second occasion had prepared a document of security himself. Witness said he had never received money from this creditor before and had not received any since the bankruptcy petition was lodged. He had not told another creditor that he had given Mrs. Thomson money to hold for him.

Murland denied that after the truck was sold he had had three solicitors acting for him, and said he would not object to one of the solicitors named producing the proof of security named in the first instance. Proof of these securities was handed in by Mr. T. S. Wauchop, appearing for Mrs. Thomson. Borrowed Money Pressed by Mr. lies, the bankrupt said that with a further £2O borrowed he had paid wages to his men and also other debts. Security for this £2O was sought by Mrs. Thomson but, after promising this, bankrupt had not given it. He was unable to say whether she had received £l3O 10s 2d from the sale of the truck. He denied that he had tried to borrow money on his truck since he had borrowed money from Mrs. Thomson. Mr. lies: "Why did you pay Mrs. Thomson first? Bankrupt: Because she was a woman and I felt that she should be paid first. Had I not been forced into bankruptcy I could have paid everyone. To Mr. Dickinson, on behalf of the Tiniroto Motor Service, the witness said he had been on insurance for 14 weeks and had received £l6 3s which Mas not paid into his bank account. 'Travelling accounts for his men and charged to him were admitted by the witness who stated that the men concerned had not paid him for the fares. The inquiry was adjourned sine die.