GENUINE MISFORTUNE

Wanganui Chronicle, Volume LXXXII, Issue 19439, 27 October 1925, Page 4

GENUINE MISFORTUNE

GUARANTEE CAUSES BANKRUPTCY. SYMPATHY OF THE COURT. A case of genuine misfortune came before the Bankruptcy Court, Auckland, on Thursday, when William Thomas Burnett, builder, of Auckland, with a nominal deficiency of £2015 18s 9d in his estate, gave an explanation of his affairs to the Official Assignee (Mr W. S. Fisher). There were no creditors present.

“The Bankruptcy Court is intended quite as much to relievo the distress of people unfortunate in business as for punishing wrong-doers,” said Mr Fisher, “and it is not fair that a cruel slur is cast upon a man who is unfortunate in business.’ William Thomas Burnett stated in his schedule that his liabilities to unsecured creditors wore £2095 .18s 9d, and his total assets were valued at £BO. He attributed his present position to several losing deals in farms. His first disastrous venture was at Wellsford, where he bought a farm of JOO acres and milked a herd of 42 cows. Upon selling that farm at slump prices he lent £1650 on it oft second mortgage. This mortgage ho afterwards exchanged in complete payment for another farm; but at the same tim< ho undertook an obligation as guarantor for the mortgage. It was subsequently bought up by the petitioning creditors and the mortgages had sued bankrupt on his guarantee. He had absolutely no money at the present time and after the last sale was unable to purchase a kit of tools. After living in a tent for some time with his wife and family he had been able to shift into a house that his wife had built. Tho only property he held now consisted of three sections at Onerahi, valued at £5O each, on which there was a mortgage of £52 10s. Under examination the bankrupt said he bought tho Wellsford farm for £22 an acre; but it. went down by half its value as a result of the slump. On that account ho lost about £llOO and a further loss of £3OO resulted through the slump in stock. None of his money had gone into any of tho material used in building his wife’s house; and he was now working as a carpenter for 18s a day. The meeting lapsed for want of a quorum, the Official Assignee remarking that it was a case of genuine mis fortune.