UNPROFITABLE HOTELS.

Auckland Star, Volume XLV, Issue 153, 29 June 1914, Page 6

UNPROFITABLE HOTELS.

LICENSEE IN BANKRUPTCY. ( iIA-IXC IT THE "BUSHIER" A bankrupt hntclkeeper. William L. Denncrlev. ol 'lhame-. met iii- creditors ihciore tiie Uiibial A-oitrnee (Mr. \V. S. 1 '.--boil th',. morning, ilia total l:a----i : ;iit;..- t., unsecured creditors were i slat- 1 to be tM'.li I-"'/!'- while the a-3et.i wen: -el down at £50(1, inclusive ol bo"k debts amounting to £ 11"". etftimated to pl-"dllii' i'SOO. I Iv hi- - -oru statement, the bankrupt i„a forth that he started business at : Cunitow n in I.Mis. paying a rental of Oi I per week for the hotel, aud handing over | a .-urn of -Jlbio 13/4 lor goodwill. After j the piimdigsin™ business had gone back 'ho -old the hotel business f or ililllj 11 o Later oti l,e tick over the Pacific Hotel. at a rental of ill per week, and conducted it until he sold out in March !la-t. lie then had no money but bad a ! wiie and niim children to keep. ! Mr. T. N. llolnidcii a.ppcared on behall l"f Ilan-o-k and Co.. and Mr. Y. Ivowrie I tiir l . Levers and Co. I'nder examination llio bankrupt state i thai out of a bonus o: .CS4. vvhi.-h he obtained from the owner l Mr. Maurice O'Connor) on leaving the Pacific Hotel. Thames, he paid iCi'i to |a widow win. wins as poor as ho. 'Pie .V-ignoo: In other words you I gave her preference. 1 understand that t'ae debt was not her' 6 but Speight and 1,,.'-'.- -she told mc that she was re-poiti-iblo for that amount. Mr. l.owric: Were you solvent when yon left t.umtown? —Yes. allowing for cook debt- in respect of board and li.|lior. There should be about .L.")") to come from t'ae "busbies."' They will 'pay all right. I liave not had the money to < iia.-e them up. Mr. Cowrie: How long had the ]>re\ious lessee oi the Pacific Hotel been iti the 'place.—Twelve months and he had j 10-t t-oUIJ. i And you found that the Pacific Hotel I won!.l not pay the £27) jier month lor I which you are responsible?— Yes, bul '.Mr. Maurice O'Connor treated mc very I well by paving a bonus of .LSI without j Were you not interested in a racej ho--,-, ■■: - \ ,-. I bought a third share in I the racehorse Seaman for £33 aud sold jit lor Coll after having it for a week. The A.-signoe: Did you bet milch? — 1 never bet more than £o on one day in my life. Hid you bet Cl on many days?— No. I never squandered anyone's money. Mr. Lowrie: What did Mr. Maurice O'Connor advance you to go into the Pacific? — hist over' .CSOO. Apart from thai I was owing him CSli from tho Ciimtown bu.-iit.--s. Do yon owe him anything now?—\o. A creditor: What was the £2n per nionih which you paid to O'Connor in connection with ibe Pacific?— For principal and interest. Mr. llolmden: Who was your landlord at (I unit own?—l did not know for sonic time, but l then found out that ii w.iUuncork and Co. What i- the use of talking rot. You know quite well it w:is Michael ()"Con-nor?-l -igned the lease to Hancock and Co. Mr. O'Connor told mc it was a matter of arrangement between them. How could you run up debts amounting to LlillO for -supplies ar, a small place like Gumtown?—l have all mv papers to show that. In reply to one of the creditors-, the Assignee stated that tho law required hotelkeepers to keep books showing fully t.te nature of their transactions. The judges had recently found that certain small businesses were exempt, but that would no; apply to hotelkeepers. Mr. llolmden expressed the opinion ihat something should be done with regard to the Cumtnwn books. Either his .laughter, who kept them, should come before the creditors, or the bank hooks should be produced. The .\--ignae said that be Lad already had ;o obtain an advance to pay the bankrupt's travelling expenses ' from Thames. If the creditors wished he '•mild g" into the question of failing ,„ keep proper books. Mr. llolmden thought something should be done. I 'Ihe A.-iirnee s;,i,| that personally he held ou; little hojc of realising much on ihe book debts. However, if anything was lor:!: -ornuut. it would bo divided among ihe etclitors. Ine Hireling wis adjourned sine die. I lie .Wig!;,.,, undertaking to invcsiiga...