BANKRUPTCY IS FACING BUS PROPRIETORS.

Star (Christchurch), Issue 17905, 22 July 1926, Page 11

BANKRUPTCY IS FACING BUS PROPRIETORS.

EVERYBODY SHOULD BE WARNED IN TIME. Press Association. AUCKLAND. July 22. An economic reaction affecting not the tramways but the bus proprietors themselves was described at a meeting of creditors in the estate of a bankrupt proprietor as being a new situation in the Ims competition that foreshadowed sensational developments throughout the country. The necessity for reducing his fares to bring them into line with the tram rates, and the opposition ottered by two private bus concerns that amalgamated. were attributed by George Henry Bowler, who recently had a small fleet of buses running between Mount. Albert and New Lynn, as the cause of his filing with liabilities totalling £2.590 4s sd. and only £SO in assets.

“ That is the true position. ” remarked a creditor. “It is well that everybody should be warned in fair time'. There will be a lot of other bus concerns in the country finding themselves in the same position before the year is out. The competition has become too red hot. ”

Bankrupt stated that he was only twenty-nine years of age. and although he claimed to have a life-long experience of motors, he admitted that before entering the bus trade he had had no business experience. His statement described the history of the concern from its Origin in August. 1924 with one bus bought on the stalment plan with £75 deposit. Until after two had been disposed of and one burned, there was a fleet of four last February. He was advised to go into business in Wanganui, and went there in May. taking two buses. lie left the other two on the best run in Auckland, to Blockhouse Bay. Later he heard they were not paying, and he then returned from Wanganui. In reply to the Official Assignee, bankrupt said he had kept a record of his takings but none of his payments except occasionally when he bought new buses. The Assignee expressed the opinion that bankrupt had acted recklessly. It also appeared to him that the creditors had taken extraordinary risks. One creditor from whom bankrupt had bought the omnibuses said that when he went into bankrupt’s affairs it seemed he was quite solvent, and the investigation led him to extend credit. The Assignee: If a man like you thought that I suppose the other creditors could not be blamed. Another creditor said that bankrupt was quite honest, although he migh* have been reckless and stupid. “ T know I was taking a risk. " the creditor said. “ but it was the only way. Bankrupt had to take his chance. He had either to go on or go under. " The Assignee said he did not doubt that the bankrupt had been honest, but he thought he should not be at liberty to trade for a while. He should be obliged to work for wages. “It seems extraordinary that a man should go in to such a business practically without capital, said a creditor. “Wc cannot expect anything else. ” No resolution was passed.