LOSSES ON CONTRACTS.

Waikato Times, Volume 100, Issue 16788, 4 May 1926, Page 5

LOSSES ON CONTRACTS.

HAMILTON BANKRUPTCY. A LARGE DEFICIENCY SHOWN. BANKRUPT'S F.XI'LANATIO.V With liis stalcmcnl of accounts showing ,-i deficiency of £IiOS :is sd, and Hie |.o I ill assets COG, ;i contractor of lliiinillnn, William Pereival Cullon, \\iiu lias filed a petition iii bankruptcy, and attributes his position to luhour troubles, had wrallicr, and losses imidi! during llio season 102 5-25, was oxainincd hy Ids creditors at tlic Uaniill.'in Bankruptcy Courl Ihis morning. There was a largo altendance, over wliicli the Deputy Ortlcial Assignee (Mr V. 11. Sanson) presided. Mr Powell appeared on behalf of the bankrupt. The statement showed that £1285 was owing to 02 unsecured creditors. To secured creditors there was owing £3 i 1 :is :>d, llic securities held being valued al £2K> lis sd. The debts totalled £lsOl 3s sd, while the assets were £!)<>, consisting of hook debts, estimated to produce £3O, cash in hand !.''',. and furniture £GO. liankrupl. explained that, he had two ■ o.iiraels with the Kawhia County Council last year. (Hie at Oparau, al a cost of £2300, '.as not-completed because Ihe engineer requested him to slart (be other contract, which was idioul ten miles away. This second contract was not completed because of Ihe road being cul up through carting and making the going so slow that he was losing whal he was making on Ihe job. The council also considered Ihe trucks were 100 heavy, and complained Unit the work was not being completed rapidly enough, lie dropped Ihis contract, and Mien, with Hie council's consent, returned to the one at Oparau, where he made a further slart to finish it, when Ihe engineer slated that bankrupt would have to recondition the road over which he was carling before carrying on. lie filled up ihe depressions in Ihe road, hut the cnunlv engineer would not, pass the work-.' Service cars and general IrafTlc had largely affected the road, and the engineer 'expected it brought, up to camber and grade. This would have cosl him £2(io. He told Ihe engineer he had not the finance lo carry on, and Ihe official replied that the best thing to do would be to throw up tho job. This he ultimately had lo do. He laler met the council to see if they could assist him, bul they look the work out ol' his bauds and re-let the job.

Claims by Employees.

II was admitted by bankrupt during examination that dummy wages claims were pul into the Kawhia County Council by some of his employees. The D.0.A.: Do you lliink Ibis had ,inv effect on the council coming lo its decision Lo cancel the ciimels'.' liauknipl: No, I don't think so. The- D.0.A.: Did you endeavour to gH these moneys through with a view io depleting the fund that the orderholders bad? Bankrupt: My food supply was topped by the storekeeper at Oparau, and that is why I did it. ~„. (l . rjox (representing J. J. Myen iiijii 0.. Ltd.): Do you consider that corftluct honourable? IJunkrupt' No, not altogether, but l lle „-,,,„ |,ad to live; the amount involved was about £lO. Cross-examined by Mr Noel Johnson, representing J. J. Cochrane and Co., hunkrupl said be did not gel the money

himself. . Mr Johnson: You knew you were insolvent nl Iho end of February this year?

Ilankrupl: Yes. You ailverliscil your trucks for sale in llic Waikalo Times '.'—Yes. Why did you not immediately file, instead ot waiting till Ibis stage?—! llioughl t could pay off some of the creditors by the sale of the trucks. II was on February 2i this year you advertised the trucks for sale?—Yes. Three davs later, on February 2i, you obtained benzine from the Texas Co and yet you knew you were insolvent on the 2-ith?—Yes. Did you tell the Texas Co. you were insolvent?—No, Bankrupt added that through his solicitor lie consulted his creditors at Iho end of July last year. He had en- ' lered into special arrangements with some of his creditors, which had not lieen carried out. Mr Johnson remarked that bankrup could not he. properly examined until Hie creditors knew exactly what had hcen paid out by the county, and had the bank pass-hook, which bankrup .slated he had opened at Kawhia last -ovembcr. Should Work for Wages. Mr Cox remarked that bankrupt had hcen in three previous ventures, and lie did not seem to have made a success of any of them. He was a man that should have gone out to work for wages. . Culler, went on lo slate that his wife had no bank pass-book or any money at all. Willi the exception of payments from the council he had no / source of revenue. All the money he drew from the contracts went back into wages and the concern. Mr Johnson: In oilier words you have not kept proper books. Bankrupt: Yes, l am afraid I have

Mr Cox: What was your object in not keeping a bank book for about jdx months?

Bankrupt: I had not much money |o handle.

Mr Johnson moved Ibat I lie bankrupt be asked to prepare and supply ,; (dear and full statement of an moneys due by him for wages since Iho commencement of the Kawhia contract showing individual wageearners and amounts earned by each

This resolution was carried. Bankrupt staled that prior lo going to Kawhia he had a banking account. For a considerable lime a.l Kawhia he had no hank book, lull an liccounl was opened at the Kawhia bank last November. ' a creditor: For [he lasl three years ■.:,,);• credit has been stopped in Vfiri,'iis places in Hamilton. ■\ I ,■ Powell [examining the schedule): it doesn't seem like it,

Mr Sanson pointed out, however, H UI I niaiiy ol' Iho dehls bad been incurred outside Mamilion. -|- (l |in- Deputy official Assignee liankrupi slated llial al all limes durlll;. || H ; lasl three years his position had not la-en altogether iinhoalihy. It had, however, linancialiy been more or less of a hnnd-10-mnulh existence. Mr Johnson said it seemed as ir bankrup! bad conimitlee three ol'r.'nres failing lo keep proper book.". Incurring credil wlie.n insolvent, and prising pr'-l'erenee. ' \ ~; ■ ■•'dii.e- remarked thai Cullcn had been :■>*-> optimistic. .(Continued at root ot next column.)

Deputy Official Assignee: Yes: Hie bankrupt admits thai. Mr Johnson: He leaded on the forbearance of his creditors. The examination was finally adjourned till Monday next, Ihe bank pass-book from Kawhia to be obtained in the me.anllraa.