BANKRUPTCY OF BUILDER

Taranaki Daily News, 6 February 1931, Page 13

BANKRUPTCY OF BUILDER

D.O.A. THREATENS ACTION

DISSATISFACTION expressed.

STATEMENTS NOT AVAILABLE.

LIVELY MEETING OF CREDITORS.

Dissatisfaction with the lack of any statement setting out his assets and liabilities was expressed at a meeting of the creditors of George Beamish, a bankrupt builder of New Plymouth, yesterday. A public warning that if schedules were not deposited with him withiu the Statutory period in future prosecutions would be made against offenders was mad© by the deputy official assignee Mr. J. S. S. Medley. - ThoSe present were the D.0.A.,-Messrs. A. L. Roberts, C. E. Monaghan ' (Marks Bowsers, Ltd.), L. H. Carrel (Geo. Syme and Co.), E. C. Hay ton, G. Macallan (New Plymouth Sasli and Door Co.), A. Adam (Kibby piid Calgher), P. E. Stairiton, 0. Haiinan (Darby and Hannan, Ltd.), G. Millar (Rollo and Millar), G. Pullen (H. BroWn and Co.) and A. Cassie. Mr. J. H. Sheat represented the bankrupt. The debts totalled £3Bl Ils lid and assets £63, leaving a deficiency of £3lB Ils lid.. The amount owing to unsecured creditors was £3BO 10s lid, and to secured creditors £9Ol Is, less the estimated value of securities, which was £9OO. The assets were made up of stock in trade valued at £33 and book debts, totalling £56 17s 7d and estimated to produce £3O. The bankrupt’s written statement said that about three years ago he found himself in financial difficulties and assigned his estate for 1 the benefit of his creditors. The creditors agreed 1 o hand him his machinery on hi A agreeing to pay £2OO for it. Shortly afterwards a fife destroyed his workshop and the whole of his machinery, the insurance on the machinery being received by the creditors. From th&t time he had never been a'ble to get ahead 'but the final cause of his bankruptcy had been a heavy logs sustained on a building contract with a Mr. Hoffmann.

He sold the whole bf his machinery a few,months ago in an endeavour to right matters but the amount realised was not sufficient and for moqths past he had been receiving summonses from various creditors. He had tried to avoid bankruptcy in the hope of being able to pay his creditors but finally distress warrants were issued oii judgments obtained by two creditors and he felt compelled to file, t Latterly-' he had been dmrking on wages only and regretted, that at the present time he could make no offer .to his creditors. DEBTS SINCE ASSIGNMENT. Mr. Medley said creditors who hail agrfeed with Beamish that his estate 'be assigned and who had received a dividend could not prove as creditors then unless the debt had been incurred since the deed of assignment. Mr. Shcat said most, debts of the £3OO owinjf to unsecured creditors were incurred since thfe bankrupt’s assignment. At the time of the assignment the debts roughly totalled £l5OO and the creditors hjid received only 2s in the £l. He thought the bulk of that payment had come from the bankrupt’s insurance money, there was a small amount in hand on account of the trustees of the assignment from a second mortgage which could not be sold. Bankrupt, under oath, stated he was married with one child. The safe of his fUvniturd and machinery on July 29, 1930, in an endeavour to right matters had realised £lO9. The money obtained had been paid into his bank and to his creditpts to meet current liabilities.

The b.0.A.: Have you a bank book to show these payments? —Yes. D.0.A.: Wjiy is it not here? Mr. S'heat: It can be obtained from the bank.

D.0.A.: But it should be here now. Bankrupt is required by law to provide mo with a schedule within three days of filing. No schedule has been put in till just before this meeting and I have had no opportunity of examining the position. Bankrupt has rendered himself liable ’to prosecution by his failure to furnish details and though no action niay be' taken this time I have nd hesitation in giving a public warning that if the law is not complied with in future I will prosecute. Mr. Sheat: My firm has been trying ever gince th ehian filed to get the books from Mr. W. P. Nicoll. MR. HAYTON’S ALLEGATION. My. Hay ton stated Mr. Nicoll was looking after Beamish’s ‘books. He had been told by Mr. Nicoll that Beamish was in serious trouble and he could not get any money from him. He had heard from Mr. Nicoll, and he would ask bankrupt if it was true, that bankrupt had been carrying enough money in his pocket to pay but would not. D.0.A.: Did you employ Mr. Nicoll to conduct your affairs? —Yes. D.0.A.: Did you hand over the money or keep it in your pocket?—l did not keep it in my pocket. Mr. Sheat said Beamish did pay some people for timber in Stratford but gave a statement of it to Nicoll. It was unfortunate that Mr. Nicoll was not present to explain matters. Mr. Medley thought Mr, Nicoll could be summoned to appear before him and bo examined but creditors could not be present. Mi'. Sheat, to Beamish: You had a job outside Stratford and hijd to buy the material in Stratford ?

Mr. Macallan: And he used the creditors’ money to buy it. Mr, Sfyeat: You came here and got an advance from a New Plymouth firm, took it to Stratford and spent it?— Yes.

To Mr. Hayton Beamish said that happened in August or September. Mr. said thirt on July 22 he met Beamish and spoke to him about the amount owing to him. Beamish pulled opt a roll of notes and said he could pay then if he liked but Mr. Nicoll had his affairs in hand and wouh

make the payment. Mr. Nicoll had said that Beamish was heading for imprisonnient. He was dissatisfied with the affair, Mr. Hayton continued. It was a disgrace to business altogether. He would like to ask Beamish if it was a fact that he had been before the court in connection with a liquor case at Tarikl.

Bankrupt: . That is a fact. Mr. Hay ton: And on November 12 the papers said you were before the court again in a liquor case? —That is true. Mr. Hay ton: That was after the assignment I think it very discreditable. If this goes through unnoticed anything can go through. lam satisfied that the 'bankrupt has not made a proper effort to pay his way and we have no’t had a fair run at all. I have no confidence lin a man who is drunk in charge of a car.

Mr. Stainton: We all regret to see any man in financial difficulty through no fault of his own. But there should be a clear statement of affairs so that the creditors can see what the position is. The D.O.A. has not had this. It makes the meeting farcical as no books are available. It must be unsatisfactory. The creditors are entitled to more consideration from the bankrupt than they have received. Can we not wait till we have a statement before us? D.0.A.: Beamish is not capable of making up a proper statement. ’ A creditor: Then he should not be in business. The D.O.A. explained that Mr. Nicoll did the books and said the difficulty was for him to see Beamish.

Mr. Macallan suggested an adjournment for a week 'but Mr. Medley expressed doubts whether that would be sufficient time. It was three years since he had touched the 'books, said Beamish. Mr. Sheat said Beamish could not make out a statement because the books were in Mr. Nicoll’s hands. Mr. Stainton: We all know Mr. Nicoll well enough. If the information had been supplied him the books would have been in such order as to be understandable. Mr. Carrel entered a protest against the position. He had coinc from Hawera for nothing. He would not go so far as to follow Mr. Medley’s suggestion that Beamish be prosecuted. He would be satisfied if a balance-sheet were produced at a future meeting. Mr. Medley thought such a course would be ‘best.

Mr. Hayton said Mr. Oarrcl might perhaps not know as much as he ( did. He would like to move a vote of censure on the bankrupt. A vote of censure was finally moved by Mr. Carrel and seconded by Mr. Hayton, who said he ivould like to see incorporated with the motion some reference to tl;e manner in which Beamisn had conducted his business since his assignment. Was it n °t reasonable, he asked, that if Mr. Nicoll was keeping the books and Beamish could not give and- explanation, Beamish should have brought Mr. Nicoll with him to explain? Mr. Monaghan asked why bankrupt should be censured when the books were there, but the D.O.A. explained that the law had not been complied with. Mr. Monaghan: Bpt if after investigation the books are found not to be in order then it will bo time to censure.

Mr. Hayton asked if Beamish had been collaborating with Mr. Nicoll in keeping the books. He thought Mr. Nicoll had been unable to find Beamish.

Beamish said they had worked together but he had been in the country a great deal. To a question from Mr. Stainton Beamish said he did not know he was required to put in a statement to the D.O.A. within three days.

Mr. Sheat took the responsibility, stating lie had been trying to get material from Mr. Nicoll.

“NOT AS BAD AS IT LOOKS.”

Mr. Stainton said the position of bankrupt was not as bad as it had appeared. He proposed the matter of a censure be left over until the position was properly investigated. Beamish might not 'be as much to blame as it appeared. He suggested the motion be withdrawn.

The mover and seconder agreed to the withdrawal. On 'behalf of Beamish Mr. Sheat said Beamish personally was not to blame, whoever else was.

Mr. Hay ton: Who is? Mr. Sheat: I am not prepared to blame anyone. As far as Beamish is concerned he has nothing he wants to hide.

Mr. Hay ton asked if it would not be possible to censure Beamish for his action in not handing over the money when he had it. He was satisfied Beamish had not forwarded the money to Mr. Nicoll properly and thought an opportunity of reprimanding him should not be lost.

To Mr. Pullen the D.O.A. explained that tho effect of a censure Would be that there might be some delay in bankrupt’s obtaining a discharge when he applied for it. On the motion of Mr. Stainton, seconded by Mr. Roberts, the meeting was adjourned for a fortnight to enable bankrupt to prepare a' balance-sheet of his assets and liabilities to be considered by his creditors.

The unsecured creditors were:—hl. J. Erceg (Waitara) £9 Is 3d, Taranaki Brick and Tile Company (New Plymouth) £8 3s 3d, Egm on t Brick and Tile Company (New Plymouth) £l5 Is 7d; Murk’s Bowsers Ltd. (New Plymouth) £1 IGs 6d, Messenger, Griffiths and Taylor (New Plymouth) £3 3s, Bruce and Feakins (New Plymouth) £ll 10s, Geo. Syme and Co. (Hawera) £46 17s Id, Vojco Paint and Lacquer Company (Auckland) £8 4s fid, St. George and Son (Waitara) £2, Rollo and Millar (New Plymouth) £8 9s lid, W. H. Broome (New Plymouth) £1 Is lid, Darby and Hannan (New Plymouth) £4O Jis 10d, James Wren and Co., Ltd.. £lO 10g fid, Erneny and Co. Ltd. (Douglas) £4 10s, T. Roberts (N,ew Plymouth) £35, N.P. Stish and Door Co £l9 13s sd, Kibby and Calgher Ltd. (New Plymouth) £l9 13s ad, Smart Bros. Ltd. (New Plymouth) £63 13s fid, F. 0. Hayton (New Plymouth) £lB Is 4d, Carter and Sons Ltd. (New Plymouth) £8 19s 7d,. Coal, Oil (N.Z.) Ltd. (New Plymouth) £8 15s, Henry Brown and Co. ltd. (New Plymouth) £l9 1-is, A. Cassie (New Plymouth) £lO 13s. Hygienic Bakery (New- Plymouth) £2 3s 2d, Criterion Motors Ltd. (New Plymouth) £2 5s 2d-

Stainton and Co. Ltd. (New '-Plymouth) £l5 12s 7d. The secured creditors were Mrs. M. A. Allen (New Plymouth) 1700 and H. Brown and Co. Ltd. (New Plymouth) £2Ol Is.