WAIKARI BANKRUPT

Star (Christchurch), Volume XLIV, Issue 752, 4 May 1933, Page 12

WAIKARI BANKRUPT

Seventeen Years Clerk to Waipara County. STARTED GARAGE BUSINESS. William Thomas Lindsay, garage proprietor, of Waikari, who was for seventeen years until last July clerk to the Waipara County Council, met his creditors in bankruptcy this morning. Bankrupt had controlled a garage at Waikari and also conducted the motionpicture business in the public hall there. Among other causes he attributed his failure to loss of employment with the county council. Unsecured debts amounted to £IOBO 14s 3d and debts to secured creditors to £777 0s 6d. The estimated value of securities was £1420 12s 6d. Total assets were set out at £944 7s, including £l5O stock-in-trade, £l3B 17s 7d for book debts estimated to produce £IOO, 15s cash in hand and furniture £SO. There was shown a nominal deficiency of £142 7s 3d.

£450 for Some Years, “ I was for seventeen years clerk to the Waipara* County Council until in July last I lost the position,” began bankrupt’s statement. “My salary was £450 for some years, but was reduced to £4OO about the beginning of 1932. A month prior to my dismissal, I purchased a garage business at Waikari for £BOO with £3OO as deposit and the balance to be paid by £SO instalments, interest at 7 per cent reducible to 5 per cent. The £SO instalment due in December last year I could not pay and I was sued for recovery.”

The statement continued:—l purchaser! the business with the idea of establishing my two sons in it. I endeavoured to raise money on a plantation of 14 acres, of pious insigrnis at Rolleston, but could not do so, and ultimately borrowed £325 from my father-in-law -without security. The business went on satisfactorily for a time until I found there was a shortage of capital and a decided falling-off of business. I was getting into debt and was not able to pick up. To obtain supplies of petrol and oil I gave the Texas Co. security for credit, which was stopped at £l7 0. That was security over the plant and the motion picture plant, and I consider there was a £SOO surplus on the security. For five years 1 carried on the motion picture business at Waikari. which showed a profit until last year, when the returns fell away considerably. The plant was valued at £2OO, but was held by the Texas Co. as security. I hired the Waikari Public ITall from the Waipara County Council at £1 a night, but the rent was considerably in arrears.” Pour Causes of Failure. Bankrupt added that he attributed his position to four causes:—(l) Loss of employment with the Waipara County Council: (2) having to fall back on tho garage business for maintenance and the support of his family; (3) insufficient capital to carry on business; (4) falling-ofC of business in the garage and motion-picture undertakings. He had a wife and two children of sixteen and nine years dependent on him. In reply to the Official Assignee (Mr J. 11. Robertson) bankrupt said he had insurance policies mortgaged to the bank. They were £4OO and £250 life policies and a £SOO endowment due in about nine years. All his savings wentj into the picture business and the Rolleston plantation. His two sons in the garage business were aged 23 and 21; one had twelve months’ garage experience and the other none. He himself knew nothing about the business. The business was put in the name of the Waikari Motor Co. with Lindsay Bros, on the bill-heads and debts were contracted in either name. Mr Robertson: Why did you not file your two sons as well?—As it could be proved it was my business, I did not see that was necessarju My sons are unmarried and have no property. I got £4 a week out of the business. Closely Examined.

Bankrupt was closely examined by the Official Assignee and creditors as to his position. To Mr Sim he said he had started the picture business in 1928. He did not drink, smoke or go to races. His money had been spent on the businesses, the plantation, the insurance policies and in bringing up a family. Also, when in the employ of the county council, he had had to keep more or less open house. Mr Robertson: You must have been embarrassed by the lack of working capital from the outset?—That is so. Lindsay stated that at the end of six months he found the business was considerably behind. About the end of February it became apparent that he would not be able to introduce more capital. A writ for £SOO damages following a collision had finally dashed his chances of securing more capital. Mr Robertson: It was mainly optimism and hope that vou were living on for a long while?—Yes. Mr Robertson: That is very poor consolation for your creditors. It may have kept you going, but it is not going to give them a dividend. You were before the Suprerne Court at the last August session?—Yes.

Mr Robertson declared that the laxity in the bookkeeping methods of the business made further inquiry advisable. On the face of it it seemed one of those cases, which were all too common these days, of a man going into business with insufficient liquid capital and little experience. On the suggestion of Mr Robertson, two creditors were appointed to act with him as a committee to make further inquiries and wind up the estate.