Llanwern Haulier's "Rash Speculation"
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IN a "rash and hazardous speculation" 1 a, 37-year-old Newport man incurred liabilities of over £10,000 in the business of hauling shale to the Llanvvern Steelworks, Newport Bankruptcy Court was told last week.
Appearing for his public examination was Douglas Whitehead, of Hill Street. NeWport, Mon, described as a company director, born in Leeds. His deficiencies amounted to more than £9,000.
From 1938 until June, 1960, he had been errand boy, tram conductor, bus conductor and works policeman, it was stated. In June, 1960, he went into the shale haulage business and committed himself to hire-purchase agreements on six vehicles without any "free" capital. Deposits on the vehicles he borrowed from banks. Most of the vehicles were 'valued at £1,600. He bought them all in seven months and also bought a house.
He agreed it was in the hope that the running expenditure of the vehicles and the discharge of the hire-purchase and maintenance would be met by the considerable profits of the business.
"When we were just getting right into It my solicitor died. Things got in such a state," he said. He realized now it was a rash and hazardous speculation. He was now driving a bus for Newport Corporation.
His failure was due to cost of repairs to vehicles and repossession of vehicles by hire-purchase companies.
Mr. A. J. Seldon, assistant official receiver, said Whitehead's downfall was due to "irresponsibility, recklessness, and lack of business integrity."
The examination was closed subject to the signing of the notes.