MORAL OBLIGATION

Sun (Auckland), Volume III, Issue 689, 14 June 1929, Page 10

MORAL OBLIGATION

BANKRUPT TO REPAY WOMAN’S FAILURE Considered to have a moral obligation to a woman who lent money without any conditions, Harriet A. Moorhead, bankrupt confectioner. of Karangahape Hoad, was instructed at a meeting of lier creditors this morning to make repayment before applying for her discharge. Miss Moorhead had borrowed the money to begin a business, but, for the lender, Mr. L. F. Rudd explained to the deputy-official assignee. Mr. V. R. Crowhurst, that the lender’s life savings had been put into the business. Mr. L. E. Manning, explaining the bankrupt’s position, said that there were no prospects for her at the present time. Miss Moorhead said that she had nothing in view, and she had put everything into the business. She had been forced to sell out at a. low figure because the lender sought her money within three months. To unsecured creditors, £222 was owing and, to secured creditors, £945. The securities were £I.OOO, the total assets £9l, and the deficiency stood at £l3l. Bankrupt said that her failure was due to sudden pressure for money, poor trade and decreased rentals. Bankrupt said that for some years prior to 1928 she was employed in domestic service. She was able to save a little money, and about live years ago bought a section in Bavview Road. Takapuna. A house was built and was let for 35s a week for three years. At the end of the term rents dropped, especially at Takapuna. Last October she made the decision to buy the Karangahape Road business and borrowed £2OO. The purchase price was £175, the balance being put into stock, and the weekly rental was £3 15s. For three months she was just able to pay expenses, but business fell off. She was asked to return the borrowed £2OO, and the lender would not accept the transfer of the Takapuna property in settlement. She eventually sold the business for £SO.