CONTRACTOR’S FAILURE

Taranaki Daily News, 1 June 1935, Page 5

CONTRACTOR’S FAILURE

MEETING OF CREDITORS DESCRIBED AS “SUPER OPTIMIST.” , ■ _ FACILITATION OF HIS DISCHARGE. ■.. ■ • ■> . ■. A “super optimist” was the description applied to Wilfred Lionel Larsen, con-., tractor, Waitoitoi, at a meeting of the creditors in his bankrupt estate at New Plymouth yesterday. Larsen’s schedule showed debts owing to unsecured creditors amounting to £4lB 8s Bd, although, ■ it was stated that the' amount was substantially more than that figure, and' assets, expected to realise £4l 9s lid, leaving a deficit of £376 18s 9d. The .13/ creditors’ representatives present passed, a motion agreeing to facilitate his discharge, Mr. P. E. Stainton saying that in all his ventures Larsen had worked hard to make them a success, but that he had ; been too optimistic. Those present were the deputy-official assignee, Mr. J. S. S. Medley, and Messrs. G. Smethurst, J. Wiley and N. Knofflock, Uruti (represented by Mr. C. H. Strombom), C. T. Meredith (Uruti), R. A. Lar- ; sen (Uruti), J. Pickering (New Plymouth), Dixon (Shell Oil Co.), P. E. Stainton (New Plymouth), G. Macallan (representing Derby and Co., New Plymouth, and Messrs. Govett, Quilliam and Hutchen), A. G. Anderson (representing Messrs. A. Miles and F. Barrell, Awakino), S. E. Nielson (representing the New Plymouth Finance Co.) and M. F. Lobb (Taranaki Daily News). ' Larsen in his statement said he left Tangitu in 1924 with a Ford truck, on which £7O deposit had been paid. He took over the balance of £2lO, but after three months found the truck was not / suitable and. traded for another, which was also unsuitable After trouble •with tyres, the truck was possessed, he having in the meantime secured , a contract to carry Uruti factory produce. On the strength of that, with a loan of £l6O, which he had subsequently repaid, he bought a larger truck and >. truck for timber cartage. These were destroyed by fire in 1928. ! The trucks were then paid for, but the insurance was uhly sufficient to pay deposits on two new trucks. \ In 1929 he raised a farther loan of. £3ooo'"from the New Plymouth Finance - Company to play for the trucks and houses and to buy a new truck for al'/ timber contract at Rahotu, which ended after'lB months. , - TWO TRUCKS ACQUIRED. -■■■’ .'• ■ . He then acquired two large trucks for a metalling contract at Uruti, losing/ £360 on the contract. From a contract at Okau he made £5OO, the profit being absorbed in repair bills for the trucks. In 1933 oii a contract on the Otaraoa Road he had two engines with and with breakages and repair bills, fires and accidents, had a hard time. ■ In' 1934 he sold the business for £450 and started a sawmill, which was profit-/ able. However, the pressure of back s debts was too great, ’ If he could carry - on at the sawmill with an expenditure of £7O to £BO he would be able to pay a dividend. There was about £2OO owing on the mill and he had spent between/£4OO and £5OO on it. He estimated he could make the mill return from £2 to £3 a day. He would require a wage of £3 a week. After Larsen had been put on oath Mr. Stainton said that two years ago Larsen’s estate had been assigned, but the creditors had decided to let him 1 carry on as he hoped to reach a position in which he would be able to pay more than the 10s in the £1 that would have been possible then. At that time his wife had waived her claim for a'. £lOOO mortgage, and a large part of his debts, particularly to oil companies, had been paid off. Larsen could easily have filed at that time, but preferred to carry on in the hope of recovering all his ground. • • In answer to a question it was stated that in the area in which the mill was to have operated there was 1,000,000 feet of white pine and 2,000,000 feet of rimu. Mr. Medley added that there was more than £9O due in wages, which would have preferential claim. The assets, M thought, would scarcely realise the amount estimated. ' /J ':'4 To Mr. Strombom Larsen said he kept no account books in connection with the mill, but he could make out a statement; of his receipts from the dockets received.' There had been a debt to’Henry Brown, and Co. which was being reduced by the supply of timber. That had been done since work at the mill was commenced? in February. He paid £145 cash for the milling plant, which was obtained on the hire purchase system. . • — LARSEN’S PERSONAL HABITS. i Mr. Stainton said Larsen was not lazy or extravagant in his personal habits. “All his life he has been a ist,” said Mr. Stainton, “and it is/ just the same with the mill. He is convinced that, the mill can be made * success, even if he has to work 18 hours a day, but others are doubtful of its possibilities.” It would probably have been better if the position had been faced two years ago. It was to Larsens credit that he had done his best. . ; Mr. Strombom said his clients felt that current wages should have been paid to them before Larsen gave promissory notes guaranteeing his brother in’ part’’ settlement of, wages. Larsen said current wages had absorbed 85 per cent, of the receipts from the mill. Mr. Stainton explained on Larsen’s behalf that the first two months had been occupied' in the erection of the mill, there having been little output during that period. Mr. Stainton: The sale of the truck parts would probably bring in about £35. The debt will be wiped off in any case. I move that the meeting the discharge of bankrupt. ; / Mr. Strombom opposed the motion. Larsen: I would ask the creditors ? to? bear in mind that I have lost 11 work and that I will have ■ to start off behind scratch. • '■-'LL’t It was unanimously decided to recommend that Larsen's discharge be facilitated provided he produced a statement of his receipts in connection with the sawmill enterprise, creditors vetoing a suggestion that Larsen should be allowed the £7O or. £BO further capital required to continue operations. Unsecured creditors to whom amounts of more than £5 were owing were: W. ; E. Richardson and Son (Auckland) £39 9s 2d, Mr. C. T. Meredith (Uruti) £9 7s 2d, Bellringer Bras. (New Plymouth) . £5 10s 6d, C. Swanson (New Plymouth) £9 12s Id, L. Thomas (New Plymouth) £5 15s, M. Erceg (Waitara) —, Al Andrews (New Plymouth) £l6 4s 3d, Boon Bras.. (New Plymouth) £5 16s 3d, Derby andCo. (New Plymouth) £34 6s 7d, Stain-, ton and Co. (New Plymouth) -» Steel (New Plymouth) £5 ss, J. Bell (Uruti) £7 19s, Commissioner of Taxes (Wellington) £7 Ils Bd, N. Sutton (Uruti);; £5 ss, J. Wiley (Uruti) £4l, N. Knofflock (Uruti) £l9 16s Bd, G. Smethurst (Uruti) £l7 10s, A. Miles (Awakino) £14,. F Barrall (Awakino) £7, G. Fairweather (Urenui) £29, 3s, J. B. Mac Ewan and; Co. (New' Plymouth) £ll 2s Bd, Govet,* Quilliam and Hutchen (New Plymouth) £lO 13s Bd, Wright and Johnston ’ (New. Plymouth) £7 10s, R. A. Larsen CUriiti) £52 Hs. Secured creditors’ amounts, with the estimated value of securities:ln brackets, were: New, Plymouth Finance Co. £695 (£695), Appleton and . Co.* (Auckland) £l6O. ’ • ’