BUSINESS FAILS AT GORE

Southland Times, Issue 24004, 20 December 1939, Page 5

BUSINESS FAILS AT GORE

Saw Miller Files In Bankruptcy MEETING OF CREDITORS ADJOURNED A meeting of the creditors of Campbell McPherson Lumsden was held in the Gore Courthouse before the official assignee (Mr A. E. Dobbie). The bankrupt was represented by Mr R. B. Bannerman. The only secured creditor was McLeod Bros. (Dunedin) for £444/6/and the unsecured creditors were: R. L. Peterson £6B/19/6, F. Rakiraki £25/10/3, J. R. Scott £34/18/3, W. A. Macnee £5, R. D. Macnee £B/17/6, A. L. Cassie Ltd. £l7/16/5, L. Galt £52/11/5, L. C. Chittock £75, H. C. Mclntyre £l4/18/-. Total, £748/3/4. In his sworn statement bankrupt stated: “I am a married man, aged 26 years, and I have been saw milling at Kaiwera and Waikoikoi for one year and a-half. I own a saw-milling plant worth £BOO and it is mortgaged to McLeod ’Bros., Dunedin, for about £5OO. I was laid' up for about six months this year as a result of accidents, and I consider this handicap, combined with breakages on the mill engine, responsible for my present financial position. My debts amount to £748/3/4 and my assets consist of my present plant, which is worth about £BOO. I have no other assets. I have been paying £lO a month off wages tax, £lO a month oii accident insurance and £25 a month off McLeod’s Bros.s account. I am at present working for wages at Owaka and the plant is at Kaiwera. I consider I would-have been able to carry on and meet my liabilities but for the fact that the mill engine was condemned and required retubing. The lorry also requires new tyres, and I am not in the position to pay for them nor the cost of retubing the boiler.” 12 YEARS IN INDUSTRY Under examination, the bankrupt stated that he had been engaged in saw milling for about 12 years. For three weeks last February he was in the Gore hospital. He began saw milling on July 14, 1938, being financed by Mr Young, who owned the mill previously. The price of the mill was £4OO, including plant. _ The bankrupt purchased belting, engine, lorry and two extra saws. The engine was practically paid for, while there was nothing owing on the lorry, which was now mortgaged to McLeod Bros. The royalty on the first plantation was 2/- a 100 feet super, but this was reduced to 1/- and 1/6 according to the nature of the plantations handled. The cost of Pining the > mill, including wages and oil, but not royalties, was between £l6O tw £lBO a month. The mill was cutting about 150,000 feet a month. The timber sold at 8/- a 100 feet. During the first four months the business showed a profit of about £2O a month, without wages for himself. After that there was no profit. The monthly wages amounted, to £l5O. In September he found he could not pay his employees their full wages. The bankrupt said he sold timber to McLeod Bros, and he also sold to farmers. In August 1939 he was advanced £lOO on security by McLeod Bros., who also paid off Mr Young’s security of £lBB/7/11 and £27/13/4 owing to the Public Trust, which had security over extra plant. The motor-car in his possession was used for business purposes. It was valued at £l6O. McLeod Bros, had security over the truck and Mr Taylor over the motor-car. The bankrupt said he had no assets, no money in the bank and no money due to him from any estate. Mr P. S. Anderson, who represented McLeod Bros., said that the bankrupt had stated that his plant was valued at £BOO. This was his own valuation. He had paid only £4OO for it in the first place and it was not likely to be worth, any more now. It would cost £6O to retube the boiler. The meeting was adjourned sine die.