BANKRUPTCY.

Sun (Christchurch), Volume I, Issue 31, 13 March 1914, Page 5

BANKRUPTCY.

' JOHN FREDEEICK VOGT. A meeting of the creditors of John Frederick Vogt, builder, was held at the office of the Official Assignee this morning. - j, • Mr A. T. Donnelly appeared for the debtor, and Mr E. T. Harper for the petitioning creditors, Messrs W. White and Co. The statement, as prepared by the administrator, showed:—-Unsecured debts, £847 2/5, and assets £142 12/2, leaving a deficiency of £704 10/3. The assets comprised: Stock in trade £25, book debts estimated to produce £35 10/-, furniture £l6 16/-, and surplus from securities in the hands of secured creditors £65. The principal creditors were.:*W.' White and Co. £306 6/11, C. S.'M'Cully and, Co. £127 6/10, Mason, Struthers and Co. £6B 13/1, Large and Allen £29.7/6, C. H. Moir £25 11/5, E. Beattie £25 17/6, Green and Pratt £25 9/-, Scott Bros, Ltd. £l9 5/-, Fama Stonewood Co., Ltd. £l9 2/10, F. L. Patrick £l9 16/6, A. Lees £l7 10/6, Harper and Yeoman £l4, L. A. Poison £l7 10/6, J. Carpenter £l4 7/-, Bradley Bros., Ltd. £l4 14/8, W. Sey £ll 14/11, Beath and Co. £ll 3/6, Reese Bros. £lO 3/8, and Homebush Brick and Coal Co. £ll 1/4, H. Jaeobsen £l4 9/9, Carson £l2 3/6. The bankrupt, in his sworn statement, said he was a married man 37 years of age, with a family of five children. He worked for wages until August, 1911, and then commenced building on his own account. His first contracts were for the erection of houses for his sister-in-law and his wife. He had then about. £SO capital. Other contracts were entered into, but he only made a profit out of four or five of them. He had paid ail moneys into his bank account after October, 1911, and had drawn out sums not averaging more than £3 weekly for his own use. In all he had 16 contracts. The contract price for his sister-in-law's house was £404. He had prepared a statement showing the expenditure on the work. The contract price of his house was £450, but he had not kept an account of the contract. He had prepared a statement showing that, exclusive of his own wages, the cost was £417 16/4. Last winter he found that he was in financial difficulties, but kept contracting. He placed his position before the two largest creditors, and they advised him to '' hang on.'' Since last winter he had taken four contracts, and on two had lost money. He had not lived extravagantly, and attributed his failure to the underestimating of contracts and to illness in his family. At the present time he was working for wages. There were no benefits accruing or to accrue to him from any source. The Official Assignee explained the position to the creditors, stating that the bankrupt had kept some books, but they had not been very reliable. He had a sworn statement from the wife stating that, the only real estate was a quarteracre sectioir, on which was a six-roomed house with outbuildings, which hall been erected at a cost of £450, the money being paid in instalments through a building society. The house now carried a mortgage of £4OO. Her husband had always paid the rates himself, and had given her about £4 a week to maintain the house and family. There were no other assets except the furniture, the full value of which was £IOO.

The Assignee stated that he had sent one of the staff to the house to make an examination of the furniture. Most of the effects belonged to the wife, but there was a Dresden piano for which payment was being made on the instalment principle. Thirty-six monthly payments had been made, and there was still £l9 owing on the piano, the total cost of which was £54. The bankrupt had opened a bank account in October of 1911, and the last entry had been made on January 10,1914. Judging by the bank book, bankrupt had lived during the two years and three months at the rate of £SOO a year. A creditor stated that he had examined the bank books, and Vogt seemed to have been living at the rate of £42 per month. In his sworn statement bankrupt had stated that he had not been drawing more than £3 per week, his wife had stated she had been getting about £4 per week, while the bank book showed the expenditure to have been £42 per month. The bankrupt seemed to have been living very extravagantly at the expense of his creditors. The Official Assignee stated that the value of the property seemed to be little more than that of the land and buildings. He would find out the value of the improvements in the matter of the laying out of the grounds, etc. hold out but poor prospects of a dividend. It was decided, oh the motion of the

representative-bf W. White and Co., seconded by the representative of M'Cully and Co., that the Official Assignee consult with the Crown Solicitor for the purpose of ascertaining if in his opinion a breach of the penal clause of the Bankruptcy Act dealing with extravagant living had been committed, and if so that the necessary steps be taken and action be instituted in the matter. The meeting then adjourned sine die.;