MUSHROOM BUILDERS

Timaru Herald, Volume CXXIII, 29 April 1927, Page 10

MUSHROOM BUILDERS

CUTTING PRICES IN AUCKLAND. By Telegrauti—Press Association. AUCKLAND, April 29. "When application was made to Mr Justice Stringer in the Supreme Court for the discharge from bankruptcy ot Daniel Carlinc, builder, objection was made by the Official Assignee. Mr Johnston, for petitioner, said Gnrlino was adjudicated bankrupt in 1922. He had since made restitution. The Official Assignee said there had been a largo number of builders going bankrupt-. Almost without exception, they wore very difficult cases to deai with, for the assets were nearly always subject to second or third mortgages, and wore difficult of realisation, with the result that dividends of pence in tho pound, or nothing at all, were paid. Many builders carrying on legitimate business were being subjected to unfair competition by men of little trade experience. who Habitually cut the price of timber. With no experience of contract work, and but little of costing. they entered into contracts, and, having few resources, an unsuccessful venture landed them in the bankruptcy court. His Honour: “That's all very we’l, but creditors should protect themselves by being more careful.” The Official Assignee: “Tile legitimate builder complains that he is not getting a. fair run, because there are always men prepared to under-cut prices. Carline has been convicted of fading to keep proper books, and also of having obtained credit without having reasonable prospect of repayment.” His Honour: “Ves, and he has purged himself of the offence by going to prison.” The Official Assignee .submitted that such a builder should not be allowed to resume operations, particularly in view of the present state of tho trade in Auckland. Carline was a good tradesman, and apparent'y lie had earned good money, for he had made restitution, and ha dnianaged to live on the balance. Tf this discharge was granted, there would he a" number of other similar applications for discharge.

His Honour: “Oil, J don't think so. Each case is dealt with separately, and considered on its merits. This man has been suspended from business for five years, and I think he js entitled to resume.” The Official Assignee: “Yes, sir, but possibly times are harder now than they were five years ago.” In granting the discharge. His Honor said that what the Official Assignee had .submitted was probab’y quite right. It was very largely duo to the creditors who gave credit without due inquiries being made. Creditors must do something to protect themselves. After all, Carline had been pu'in.licd for his offences, and had made restitution, and there was no reason why his discharge should be delayed. “In this ease,” added His Honour, “creditors seein to have acted verv foolishly, al'owing large credit without taking due precaution.”