BANKRUPT BUILDER.

Star (Christchurch), Volume LXVI, Issue 20222, 5 February 1934, Page 7

BANKRUPT BUILDER.

Creditors Seek More Information. MEETING ADJOURNED. A meeting of creditors of William Miller, a builder, living at 56, North Road, Papanui, was adjourned for the second time this morning, so that further inquiries might be made into bankrupt’s affairs. The Official Assignee, Mr J. H. Robertson, presided. Before proceedings commenced, bankrupt said: I would like to ask whether these reporters have been allowed to come here. The Official Assignee: “Yes.” Bankrupt : 44 So long as they make a proper report, thev are all right.” The general statement of bankrupt’s affairs showed that he owed £JO9O 13s 6d to unsecured creditors, and £IBOO to secured creditors, being mortgages on properties. The estimated value of assets was £IBOO, leaving a deficiency of £IO9O 13s 6d. Bankrupt had no other assets. Bankrupt stated that he was fortyfive years of age. a married man with no family. He had been in New Zealand for 32 years, and for the last 20 yea rs had been in business as a builder, on his own account. He had nad no great measure of success, and had not accumulated much in the wav of property. Purchase of Property. In 1914 he had purchased a property in Springfield Road fo r £135, had improved it from time to time, and on his return from the war had raised a soldier’s mortgage of £4OO. In 1925 he had built a house on the North Road costing about £1250, most of the money being raised from the bank on an overdraft. At the time of building he owed £2OO to £3OO, and had considered himself solvent at that time. He had never owned any other properties. and had always lived in the North Road property. Since 1926 he had built about four houses, which had shown little profit, and he had done mostly jobbing and alteration work. For some years he had had a fair amount of current indebtedness, possibly about £IOOO, but prior to the start of the depression he had considered his property equities would cover this amount. When property values fell, however, he could see that he was in difficulties unless values rose. He carried on and paid what debts he could. In 1930 he visited England, and was away for about nine months, the cost being met by his relatives. All amounts received by him had been, paid into the bank. The only other books he had kept had been statements of work done. He had never prepared balance-sheets, but had always known approximately how he stood. He had not been fully employed during the past few years. He attributed his position to the lack of work during the past few years, and to the decline in property values, which had destroyed his equities. He had never lived extravagantly and his insolvency was not due to gambling. He had merely drifted into debt, due to some extent to severe competition in the building trade. He could make no offer to his creditors. The Official Assignee stated that bankrupt was secured for £1174 in the National Bank, which held a mortgage over a property at 56, North Road, valued by bankrupt at £I2OO. The Land and Survey Department held a mortgage of £4OO over a property in Springfield Road, and Baker Bros, held a second mortgage of £2OO. The property was valued at £6OO, so that this property was fully mortgaged also. Books debts amounted to £B3 6s, but bankrupt doubted if they would yield anything. Assignee's Questions. Examined by the Official Assignee, bankrupt said that he owed £IO9O because he had not been paid for jobs he had done. When asked what jobs there were, no reply was given. He stated that he had not owed as much in 1929 as he did now. The Official Assignee: My suggestion is that you have been insolvent for a good while. Questioned about his trip to England bankrupt stated that he had paid no money for the trip. The entry of £24 to the Union Company for March £2G would not be part of his fare. The Official Assignee: I suggest it was. Bankrupt: I do not think it was. The Official Assignee : I think it was. And is the withdrawal, dated April 1, of £lO3, a boat fare, too? Bankrupt: No. I cleared up some of my debts with it before I left. The Official Assignee: I still suggest it was a boat fare. Bankrupt admitted that he had had debts amounting to £142 2s for goods bought in Scotland. He said he had done some building there. He had received £2OO as a result of his father’s death, while he was in England, but had paid it into the bank in London. The Official Assignee: So that the net result of your trip to England was that 3 r ou received £2OO, had your fare paid, and left Scotland with £l5O in debts. It would, have been the honest thing to have paid your debts with the £2OO. Bankrupt (smiling) :Yes.

The Official Assignee: It is not an occasion for mirth, and I must ask you to take this thing more seriously. After more questions as to bankrupt’s expenses, a creditor asked him how much he had spent in hotels. Bankrupt: About £2 a year.

Bankrupt admitted that there was a small house on the back of his property, but the tenants had not paid any rent for five years. A creditor: Why didn’t you turn them out? Bankrupt: I couldn’t. This is a civilised country. Another creditor stated that he had been promised his money when bankrupt had raised the second mortgage on the Springfield Road property in 1931, but he had not seen the money. Bankrupt: I do not remember promising you the money. It all went to the bank. Distribution of Receipts. Bankrupt stated that when he received a cheque he spread it round his creditors. A creditor: Whom did you pay? You said you spread it round, but no one here seems to have seen any of the money. The Official Assignee: There is not a complete record of every penny that you have received. Your creditors are entitled to know every detail. All I can see is that this is most unsatisfactory and you have a lot to explain.

Bankrupt: That should not be very ' hard. 44 1 think it is the least you could do to give an accurate record.” Bankrupt stated that he had worked for four weeks, with four men. putting in a petrol tank and this had taken all of the £66 cheque he received. A creditor: You are dodging, Mr Miller. All your cards are not on the table. It is no use beating about the bush. As a friend I say this. Bankrupt stated that his books were on the table. The Official Assignee: The discussion is becoming heated and I think it would be better to adjourn. I suggest a small committee be appointed to go into the matter. I agree th2t the bankrupt has not made complete statements and they are most unsatisfactoryA committee of two was set up to confer with the Official Assignee.