IN BANKRUPTCY

Southland Times, Issue 21580, 18 December 1931, Page 5

IN BANKRUPTCY

■ GOBE BUILDER FAILS ESTATE OF W. SHORE. A meeting of creditors in the estate of William Shore, builder, Gore, was held in the Gore courthouse on Wednesday afternoon. The deputy-official assignee, Mr H. Morgan, presided over the following creditors: —Messrs R. W. McCreath, G. Speden, C. Duncan, H. D. Stewart, A. McKinlay (Gore), G. Poole (representing Poole and Sons, Invercargill) and H. Aitken (representing Briscoe and Co., Ltd.) The amount owing to unsecured creditors amounted to £2268 14/8 and the estimated value of securities amounted to £1465 9/-, leaving a deficiency of £783 5/8. The unsecured creditors were:—T. G. Briggs, (Invercargill) £5; H. E. Bacon (Gore) £3 15/5; W. Christie (Gore), 19/-; Briscoe and Co. £llB 3/4; Dunn Bros. (Gore) 13/6; Dominion Electric Co. (Gorei, £207 2/6; Duncan and Sons (Gore), £143 2/7; Farmers’ Central Garage (Gore), £2l 4/11; Green and Co. (Gore), £lO 16/8; J. Gilchrist (Invercargill) £1; J. Holland (Gore), £47 14/1; J. Hoffman (Gore), £3 6/9; E. B. Jones, Milton, £7 3/2; Little Bros. (Gore), £8 11/6; T. Middlemuss (Gore), £6 3/3; Murray ‘and Robertson (Gore), £8 4/5; McKinlay and Murray (Gore), £l6 19/-; D. McDougall jnr. (Gore), 10/-; Dr. Macdonald (Invercargill), £53 11/-; McCartney and Gaskill (Gore), £32; Norton and Son (Pukerau), £45 7/-; N.Z. Express Co. (Gore), £2 10/-; Petersons (Gore), £156 12/6; T. L. Piller (Gore), £8 15/-; G. Poole and Son (Invercargill), £337 16/11; Petrous Tile Co. (Invercargill) £22 0/2; M. Robertson (Gore), £ll 8/7; Dr. Rogers (Gore), £l7 6/3; A. A. Rose (Gore), £3 3/3; R. L. Reid, Waikaka Valley), £4 7/-; E. Stevens (Waikaia), £lB 10/-; Southland and Otago Timber Co. (Invercargill), £223 8/11; W. Speden (Gore), £27; T. J. Stark (Gore), 17/6; J. Speden and Son (Gore), £ll2 18/11; W. L. Shaw (Arthurton) £5 10/-; Smith and Dolaniore (Gore), £66; A. Thomson (Gore), £163 12/-; Thomson and Beattie (Gore), £3 17/6; A. W. Thomson (Gore) 18/6; United Trading Co. (Gore), £340 12/3.

In respect of some of the above debts charging orders had been lodged by claimants.

The estimated value of property, house and section was £l4OO, less security to the bank of £938 6/2, leaving a balance from that source of £461 13/10. The following were other assets: Stock in trade £lOO, book debts £683 2/6, cash in hand £5 12/7, furniture, etc., £2OO, section £2O, motor car £l5. The dificiency was £783 5/8. The following was debtor’s statement: “I have been in business at Gore as a builder for the past 17 years. I carried on business successfully until I contracted to build a house for one Isaac Butler, of Ardlussa, farmer, fori the contract price of £1250. I practically finished this house, but did not receive any payment for it owing to Butler becoming bankrupt and his farm not realizing sufficient to pay the mortgages on the property. I never recovered from this setback, and I estimate the loss made by me on this job amounted to over £llOO. Since then I have had to depend more largely on credit, and what with increased competition and bad trading conditions I have found it difficult to carry on, especially during the last year. I have suffered from bad health, and I had to go into a hospital about 12 months ago for ear trouble. I had a severe operation on this account last April. I have not been well since, and am still undergoing medical treatment. I am married and have a family of four children aged 17, 15, 10 and four years. I have been put to considerable expense owing to ill-health in my family. I own the house I occupy in Devon Street, Gore, and an adjoining section with workshop thereon. I value' this property at £l4OO. It is subject to a mortgage to the National Bank under wihch I owe approximately £940. This amount is also secured by a life insurance policy and by an order on one of my trade debtors, but the amount of the latter account is is dispute and has not yet been finalized. I also own a vacant section in Joseph Street, Gore, worth about £2O, an 01/i motor ear worth about £l5, and sundry building equipment and timber valued at £lOO. I also own the household furniture. The book debts owing to me are in an unsatisfactory position and I estimate that they will not produce more than £683 2/6, and part of this amount is subject to claims for contractors’ and workmen’s charges. I placed my position before my creditors over two months ago. They appointed trustees and thoroughly investigated my financial position, but it was ultimately considered that it would be in the best interests of my creditors and myself if I filed my petition in bankruptcy.”

The debtor, in reply to the assignee, in his evidence said the statement and schedules just read were correct. In valuing his furniture he included all that was in the house, including £25 put in by his wife when they were married. The ornaments and pictures were his wife’s and were given her by different people. She also claimed a sewing machine as hers. His furniture had been insured for £2OO ever since he had been married 18 years ago. The section and workshop thereon were secured to the bank on mortgage. He assigned his life in. surance policy also to the bank. He had not reached finality with Dr Stokes over the building of his house. Several other accounts were in dispute. He had no prospects from relatives. He was not a gambler and did not attend race meetings. He had had a drink or two, but did not drink heavily. If he had a drink it would be at Mandeville or Riversdale. Stevens’ account at Waikaia for £BO was for board while working there. He would deny drinking to excess. He could not make any offer to his creditors.

In reply to further questions bankrupt said he made an assignment of the money due on Stokes’ house to the bank at the request of the bank manager. He could not do otherwise, as he was up to his limit. He already had promised that money to some of his other creditors. He gave the security because he thought it might help him to get a little more money from the bank. The assignment was given two or three months ago. That was before he had a meeting of his creditors. He never prepared a balance sheet. He kept his own books. He did take a balance-sheet out on some of his contracts to see how he stood. He had has bank book to guide him in his work. He had not paid any income tax because he had nothing to pay. A £3OO cheque was collected by Speden and Son and held by them for timber while witness was in hospital.

Mr Poole said he would like the matter of drink inquired into. He understood a considerable sum had been spent in liquor.

Debtor denied this. To Mr Poole he said he lost over £llOO on Butler’s job. He valued his house at £l4OO.

Mr McCreath moved that the assignee mquire into the position of the several accounts in which debtor stated settlements had not been made, and, if necessary, take the necessary legal action to recover same. Mr Poole seconded the motion, which was carried.

Messrs A. McKinlay and G. Speden were appointed to value and assist the assignee with the disposal of the stock-in-trade.

It was decided to allow the debtor and his wife the furniture in the house, and that debtor be charged 22/6 per week rent while in occupation of the house. On the motion of Mr Poole, seconded by Mr Aitken, it was decided that, owing to the debtor’s carelessness in sending out accounts and not looking after and collecting same, hi* discharge be opposed until he pays 2/6 in the £ over and above the amount realized by the sale of his assets. Mr Poole said the way debtor had managed his business was disgraceful. He did not appear to care how things went.