DISCHARGE GRANTED

Wanganui Chronicle, Volume LXXXIII, Issue 19827, 29 April 1927, Page 6

DISCHARGE GRANTED

A BANKRUPT BUILDER COMPETITION in TRATTR, ONUS ON CREDITORS. [Per Press Association.] AUCKLAND, April 28. When application was made to Ms Justice Stringer in the Supreme Court to-day for the discharge from bankruptcy of Daniel C&rline, builder, of Auckland, objection was made by the } Official Assignee. ; Mr. Johnstone, for petitioner, said i Carline w*as adjudicated a bankrupt in 1922. Ho had since made restitution. The Official Asignce said there had been a large number of builders going bankrupt. Almost without exception, they were very difficult cases to deal with, for their assets were nearly always subject to second or third mort gJtges aud were difficult of realisation, with the result that dividends of a few pence in the £ or nothing at ail were paid. Many builders who were 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, haC mg few resources, an unsuccessful ven lure landed them into the Bankrupt Court. His Honor; That’s all very well, b. creditors should protect themselves b. being more careful. The Official Assignee: The legitimate builder complains tnat ho is not getting a fair run, because there are always men prepared to under-cut prices. Carline nas been convicted oi failing to Keep proper books and also of übtauniK' credit without having a reasonable prospect repayment. His Honor; Yes, and he has purged himself of his offence by going to prison. The Official Assignee submitted that suck a builder snuiuu not be allowed to resume operations, particularly in view of the present state of trade in Auckland. Outline was U good uadpsman and apparently he hao earned good money, for he had made restitution and had managed to live on the balance. If this discharge was gnanted, there would be a number of oilier similar applications for discharge. His Honor: 1 don’t taunk so. Each case is dealt with separately and considered on its merits. This man n-is been suspended from business lor live years, and 1 think be is entitled to re- ' some. j The Official Assignee: Yes, sir, but possibly times tire harder now than tney were five years agu. in granting discharge, His Honor said that what the official Asiguee hid submitted was probably quite right, but it was very largely due to creditors who gave credit without due inquiries being miade. Creditors must d® something to protect themselves. After ail, Carline had been punished for his offences, and had made restitutiiu, and there was oo reason why his diTcharge should bfl delayed. “In this case,’’ added His Honor, “the creditors seem to have acted very foolishly, allowing large credit with out taking due precautions. ”