Docks dispute blamed for bankruptcy
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• Labour disputes at Hull docks and the changeover from carriers' to operators' licences, followed by fierce competition and rate-cutting, were given as the reasons for the failure of a local haulier at Kingston-upon-Hull bankruptcy court last week.
The debtor was Donald Barker of Cranbrook Avenue, Hull, formerly trading as Donald Barker (Transport) Ltd.
Mr Barker told the Registrar, Mr E. D. Gosschalk, that before 1965 he earned £20 a week as a long-distance lorry driver. He commenced trading as a haulage contractor from his home address although without capital, borrowing £200 from a relative for use as a deposit on a lorry bought on hire purchase.
Operating under B licence, he traded profitably and in 1967 obtained a second lorry under hire purchase and employed a driver. Office premises were rented in Hull, in May. 1968 and the following year four A licence vehicles were purchased again through HP.
With a larger fleet, said Mr Barker, he had to concentrate on administration and employ drivers but he found the business was not making enough unless he drove himself.
Trading declined, however, because of the troubles at Hull docks where a large part of the business was carried on. When A licensing was abolished competition was so fierce that much of the work was lost through undercutting. Heavy maintenance costs under 0 licensing also affected profitability.
The company ceased trading on February 18 1972 and was in liquidation with debts of £14,277 and a deficiency of £11,300. Many creditors had looked to him personally for goods and services rendered to the company and he had to file his own petition. Gross liabilities were £2145, assets £371 and the deficiency £1774.
Mr Barker attributed his failure to negligence and lack of business acumen in failing to ensure that debts incurred by the limited company were not in his own name, and guaranteeing the company's overdraft. He admitted knowledge of insolvency since April 1971.
Referring to labour troubles at Hull docks, he said the vehicles were never able to work regularly because it was not known what the position would be from day to day.
The Registrar said he had a certain sympathy with the debtor over the docks question, as no one starting out in business as a haulier in 1965 could anticipate the business would be affected in this way in 1971. There were also increased costs through inflation.
The examination was closed.