CONTRACTORS’ FAILURE.

Gisborne Times, Volume XXVI, Issue 2204, 30 May 1908, Page 2

CONTRACTORS’ FAILURE.

STATEMENT OF BANKRUPT.

Iho Deputy-Official Assignee (Air. J. Coleman) lias received tho following statement from Air. Peter T. Keam, as to the cause of the bank-" ruptcy of tho firm of Messrs Ckamb- ’ era and Keam, builders and contractors, or Gisborno. 'file statement sets forth the unsecured creditors’ list to amount t-o £551 Ills lid.; the stock-in-trade (shop, Kaiti) is estimated at £175 7s, book debts (271 12s -91) are estimated to produce £2lO, furniture £ll 10s; to tal assets, £390 17s. The deficiency is wet down at £155 2s lid. The unsecured creditors are: Alpha Sawmills Co. £llß 2s Bd, Peacoeke and Co. £124 15s 4d, F. HalJ and Sons £lOl 12s sd, Queenin and Boland £34 12s 2d, A. AVade £2O, J. D. Tustin £2O, E. AV. Burton £ls 7s lOd, J. and AV. Bissett- (AVainiata) £2O 6s 7d, E. S. Evineon (To Karalca) £8 9s 3d, G. Diinberlino (bricklayer) £l2, AA’illiams and Kettle £3 16s 4d, 11. Anderson _ £1 7s Cd, Horno and Gray £2 2s, Davys, Third and 'Mitchell £5 0s lOd, Niven and Co. 19s 9d, G. F. Prcddy 19s Gd, Evans, Nield. and Co. £lO, F. AV. Smith £3. 13s 3d, :Gisbora© “Times” £4 17s 6d, H-Buslmell 17s Gd, Clayton Bros. £4 Gs 9d, 11. E. Hill £l4 12s 6d, G. Alorrison £1 13s, J. Dalrymple £3, C. B. DcLautour £4 18s Id. G. Brocklebank 18s Gd, Hart (cargeuW) 10s 9d...Newing (carpen-.■pT-Titof) 10s, AV. Webb and Sous £7 i 6& Liabilities: Sub-contracts in connection with work done for Air. Al. H. Strachan, of AVaimata, sheepfarmer (these are secured by lien): Alfred AVade (plumber) £53 0s 3d, J. D. Tustin (painter) £55, Joseph Alo- ■ ris (bricklayer) £35 14s 9d. In addition judgment has been obtained in the Alagistrate’s Court, and an order made under “Tlie Workmen’s Wages Act, 1893,” for the following amounts (including costs), these being also an connection with work done for Air. Strachan:JErnest Tanner (carpenter) '£73 18s 7id, Joseph Stevenson (carpenter) £44 Is Gd. (All these amounts have been allowed for the general statement, and only the balance of moneys due has been claimed). Total, £261 15s lid. The personal statement of Peter Thomas Keam is set forth thus: Liabliities, nil. Credit : Stock-in-trade (tools) £2 10s, cash in hand £l, furniture £2 10s; total £6; surplus £6. Bankrupt Peter Thomas Keam, in his written statement, says: “I arrived in Gisborne in ALay, 1907, intending to take up a small farm'. I had capital of about £390 when I landed, and no liabilities. At the boarding-house at which I stopped I made the acquaintance of one James Chambers. Ho represented himself to be a thoroughly practical tradesman, desirous of starting in business. He told me bo had some capital, but had it all out at the time. In narticular, he said_ he had lent his uncle at Patutahi £SOO, which was not immediately available, but would be in a short time. In addition, lie said he had considerable property in or near Belfast. I was not a tradesman myself, but, trusting to his being so, and believing iii his resources, I entered into partnership with him on June 17, 1907. We traded under the firm and. style of Chambers and Keam as builders and contractors. By our agreement each partner was to put the sum of £250 into the business. As Chambers’ money was not available, I put £3OO • into the Bank of New Zealand to start our account. In addition .to that sum I have since put in £7O, making a total of £370. Chambers only put £4 odd in till _ November last, when he borrowed £SO from his uncle and put that in. AA r e did well out of our first contract, but lost money over most of tlie subsequent ones. I realised at tlie end of December, 1907, that the business was not paying, although the firm was then solvent. I told Chambers that unless lie could put .bis money in we must close up tlie business. Chambers told me he was certain that his capital would be available at the end of February, 1908, at the latest. He made similar assertions in the presence of several creditors. Trusting to this statement I consented to keep on. AVe took a sub-contract in connection with the Borough Council Chambers, and wc had at the time some work ill progress for Alessrs Strachan,; Bell, and others. AVe lost money oil all of these. I was working at Air Stracliaii’s from February Bth t-o Alarcli • 25tli. When I returned I found the business had been badly neglected .and the books not kept up to date. AVlien I made them up I found we were very considerably behind hand. Chambers still declared his money was on its way. He offered to try and -borrow some from his uncle, but had no success. On April Ist I saw him in the afternoon. He told me he might bo late that night. That- was the last time I saw him. I spent a- day or two making inquiries, and then arranged a meeting with my chief creditors. This took place on Friday, ApJOUi. Our creditors expressed the wish that the estate should ho wound up in tlie usual way. It was explained to them that in the absence of Chambers I could not petition on behalf of the firm, and it was liccesasry for some of the creditors to .take action. The firm was adjudicated bankrupt on May 26. I regret tho long delay in adjudication, and have done all I could to expedite -matters. If uny petitioning on my own behalf would have helped at- all I would have done so long ago, hut- as my statement shows, all my capital has been put into the firm and lost-. 1 feel iny present position very keenly, as I have never been in debt before. I attribute the firms’ failure direct.lv to the statements of my partner as to his capital and competency as a tradesman, and secondly to Ins neglect of t-lio business during the venr. I am very, sorry that lie has 'Tone away, as I feel that lie has been ■mainly responsible for tlie loss our creditors - have suffered.