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A BANKRUPT HOTELKEEPER.

WITH ONE CREDITOR. i

A PECDUAE POSITION.

I A peculiar case of bankruptcy was heard before toe Official Assignee thie atternoon. The bankrupt, William George Gilbert Watson, hotel-keeper, Whangamata, was in the singular position of having only one creditor, Messrs. L. J>. Nathan and Company. The firm was represented at the meeting by Mr. H. W. Hudson (secretary of the company) and Mr. E. N. R. Russell (solicitor). Mr. Pullen appeared for the bankrupt. Bankrupt's unsecured debt*, as discovered, were £394 8/6, and the assets £176 9/-. There was also one secured debt of £240, an amount equal to the value of the security. Bankrupt stated that he took over the business on the Ist February, 1908, and handed it over to the Official Aseignee on the 29th May, 1909. He commenced business with £27. He found the premise* in a shocking state, and as he expected to receive financial assistance to the extent of £150 from his brother, and did not get it, he had had to spend all his money for the first few months on improvements. He attributed his failure to his inability to obtain financial assistance, to the slackness of trade, the cost of packing, and the slump in gum, and to his creditors having pressed him for payment.

The Aseignee said tint the case was a most peculiar one. There had been a petition out against bankrupt, and ho (the Aseignee) had been appointed receiver. Before the petition came on for hearing, bankrupt filed, and lie (the Assignee) would be glad to hear from him what hi* reasons were for Sling.

Bankrupt). I filed to save expense to the estate.

Mr. Pullen: I advised him to file. He would have been bankrupt next, day, •iod I advised him to file himself.

The Assignee: Did it not occur to 70U that, it was an injustice to the other creditors? He files hie own p iti i>l with toe knowledge that he is ini".ir'' :-xpen6e which will come out of civ i pts of hie creditors. Xir. i'uUsui I didn't consider that at all.

The Assignee: You thought it proper to injj:t them with two eeta of costs?

Mr. Pullen: He hae done as h» was entitled to do.

By this time the proceedings were not by any means slow, and questions were asked bankrupt and hie solicitor in rapid succession as to why he had chosen to file. Eventually Mr. Pullen admitted that it had been done "to slate L. D. Nathan and Company."

The Assignee to Bankrupt: Was that position pointed out to you by Mr. Pullen before you filed? Mr. Pitflen says it was done for the purpose of slating L. D. Nathan and Company.

Bankrupt: He didn't use those words, but I think it was to save the estate.

After a little more cross-queetioning, and an explanation of a few facts by the Assignee, he aeked what the creditors proposed to do with the estate. The representatives of Meesrs Nathan and Company replied that they would leave the realisation of it to the Assignee. The Assignee: This is a most peculiar position. I hare to realise for one creditor only. I have been in a great many peculiar positions as Assignee, but thia is the most peculiar up to the present. Hr. Pullen: The less said about it the better. Mr. "Russell: I paite agree with you. At this stage bankrupt was put on oath, and subjected tc crocs-examina-tion.

Bankrupt said that lie never had received a shilling from his brother in his life. He did not cay to Mr. Hudson before he entered the kote' that he had £150 of his own. lie had never represented that he had lent £150 to hia brother.

Mr. Hudson: Did not your brother offer to back a bill for the amount as an acknowledgment of the debt?

Bankrupt: I don't know what he did.

Mr. Hudson: I can only say, Mr. Chairman, that he told us his brother had borrowed this money, and that his brother would be quite prepared to endorse a bill for that amount if it would be an advantage to us.

Mr. Pullen objected that all etatements such at these should be made on oath.

Mr. Hudson: Iβ it reasonable that we would put a man into a place, and give him stock, and leave him to risk nothing in capital of his own?

The question was never answered, owing to a etorm of objections from Mr. Pullen.

Bankrupt, in answer to another question, said: "I never had any transactions with my brother. I might have borrowed a pound from him, but that's all. I tell you I never owned a hund:pd pounds in my whole natural. I've afvvays been a working-man.

Then followed more talking at croespurposes about documents and other things. As far as a mere listener could ascertain, Messrs. Nathan's representatives were by no means satisfied about the £150 which they eaiii bankrupt had lent to hie brother. In order to satisfy the Assignee as to the bona fides of their etory, they Mked that an opportunity be given them to produce as witnesses other members of the firm's staff.

The Assignee decided that another meeting would be necessary, and adjourned the inquiry sine die.

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Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/AS19090610.2.38

Bibliographic details

Auckland Star, Volume XL, Issue 137, 10 June 1909, Page 5

Word Count
880

A BANKRUPT HOTELKEEPER. Auckland Star, Volume XL, Issue 137, 10 June 1909, Page 5

A BANKRUPT HOTELKEEPER. Auckland Star, Volume XL, Issue 137, 10 June 1909, Page 5