“NOT EXTRAVAGANT”

Sun (Auckland), Volume 1, Issue 46, 17 May 1927, Page 14

“NOT EXTRAVAGANT”

HAMILTON MAN’S BANKRUPTCY RECEIVED SALARY OF £4OO (From Our Own Correspondent.) HAMILTON, To-day. The statement that he thought a single man required £3OO a year to live on was made at a bankruptcy meeting in Hamilton yesterday, when William Leslie Carr was examined by the deputy-official assignee, Mr. V. H. Sanson. Bankrupt’s affairs were not at all pleasing to Mr. N. Johnson, solicitor, who appeared on behalf of the only creditor.

Mr. C. Armstrong appeared for the bankrupt. Bankrupt’s schedule showed debts amounting to £1,093 18s 6d, of which £SOO was secured by a mortgage of £SOO, leaving a deficit of £593 8s 6d. A horse named “Jock,” aged 21 years, and 50 shares in a box company possessed by bankrupt were declared to be valueless.

Bankrupt submitted a written statement to the effect that he was single, 33 years of age, and in the employ of the Farmers’ Co-operative Auctioneering Company, at Hamilton. He joined as a junior 16 or 17 years ago, and had been with them continuously in the stock department. The immediate cause of his bankruDtcy was the purchase of a four-acre freehold property on Peach Grove Road, which he acquired in June, 1920. The price was £1,150, of which £2OO was cash and the balance of £950 secured by first mortgage repayable on June 1, 1924. with interest at 6 per cent. The purchase was made in the “boom” period and the only improvements were some fencing. The value had dropped in common with others, to £SOO. There was no market for that class of property.

He paid interest to July 1, 1924, and £2O on account of the half-year due January 1, 1925. In January of this year he was sued for £94, being the balance of interest to July 1, 1926, and he confessed judgment. He was unsuccessful in an effort to obtain a reduction of the mortgage. He purchased the land in anticipation of receiving money from another source, but was disappointed. He had not been extravagant and had no debts other than the mortgage. COUNSEL INVESTIGATES

Under examination by Mr. N. Johnson, bankrupt stated that he bought the land when he was receiving £250 a year. For the first two years he had drawn £4OO per annum, but this salary had two months ago been reduced to £275 a year. Have you banked any of your salary?—No, as soon as it comes in one pocket it goes out of the other. Bankrupt proceeded to explain that he raced a horse called Pancheta, which he sold for £25, while another £4O was expended in the purchase of a hack which proved to be useless.

Did you buy the property as a grazing paddock on which to run your horses ?—No*.

The total cost of the horse Pancheta was £325 18s 6d, stated bankrupt. That included the initial purchase price, .training, payments and nomination fees. About £IOO was earned in place money. “Do you mean to say that for the first few years you have been paying off back debts, or living on too high a scale?” asked Mr. Johnson of bankrupt—“ Too high a scale, I suppose,” replied the latter. MORE EVIDENCE WANTED Mr. Johnson said it was incumbent on bankrupt to show more evidence concerning his expenditure before asking the indulgence of the Bankruptcy “Can you make a do of it i.n future on £275?” asked Mr. Johnson. “I don’t know how I am going to,” responded bankrupt. “What you do consider a fair average for a single man to live on economically and yet enjoy himself?” “£300.”

“Do you think £3OO is necessary for ordinary requirements??” again suggested Mr. Johnson. Bankrupt: I think that is somewhere near the mark. It was stated that when he was receiving £8 a week bankrupt was contributing £4 to his parents for their support and his board.

Mr. Johnson pointed out that a widow was dependent on the interest payable by bankrupt on his mortgage. Mr. Johnson stated that the trustees regarded the whole position as very unsatisfactory, even recognising bankrupt’s obligations, and they would oppose his discharge. “Never in my experience have I found a single man with £4OO a year filing: his petition in bankruptcy without some extraordinary expenditure,” commented Mr. Johnson. The trustees for the mortgage would not facilitate bankrupt’s discharge unless an offer was made.