DOGGED BY BAD LUCK

Dominion, Volume 20, Issue 297, 14 September 1927, Page 15

DOGGED BY BAD LUCK

OTAKI BOARDING-HOUSE PROPRIETOR BUILDING CONTRACTS FAIL A meeting of tho creditors of Albert Palliser, of Otaki, boardinghouse proprietor (a bankrupt), but formerly of Wellington, builder, was held before the Official Assignee (Air. S. Tansley) yesterday. Bankrupt was represented by Mr. W. ID. Leicester. Liabilities were eet down as follow;— Secured creditors: B. Brown (Otaki), two mortgages totalling £2580 15s. 6d.; Bank of Australasia (Otaki), £157 3s. 2d.; S. S. Williams, Ltd., £llO 12s. 3d., making a total of £2BlB 10s. lid. The balance available for unsecured creditors amounted to £2431 Is. 9d.

The assets were as follow:—Properly at Otaki, £4000; motor-car. £150; furniture an deflects (Otaki), £486; sundry debtors, £686 12s. 3d.; shares, £2l; total, £5317 12s. 3d.; balance from securities, £2469 Is. Id.; deficiency, £1026 19s. 9d. Tho principal unsecured creditors were Coleman and Coleman, £557; McLeod. Weir, and Hopkirk, £390; Booth and Co., £383 Os. Bd.; A. Tyler, £341 19s. od.; Bank of New South Wales, £307 14s. 3d.; F. Marshall, £lB3 os. Bd.; George Haig, £124 9s. 4d.; W. P. Kelly, £120: Smith and Smith, Ltd.. £lOl 4s, lOd. Bankrupt, in bis own statement, said that he was the proprietor of the sea side boardinghouse at Otaki, having pur chased it from Mr. Byron Brown. He came to New Zealand from Canada in 1922, and between June, 1923, and 1926 most of his building contracts turned out on tho wrong side, including two for people who became bankrupt, and were thus iinablo to pay him. His income from' business and private sources since 1922 and the time of going to Otaki was £17,012 Its. Id., which included £3492 19s. 3d. from the Palliser Estate, which sum went into tlu> businesses. Of the total his private drawings amounted to £2o°6. or £4OO a year. He purchased for £3750 in February, 1927. the Otaki property, the vendor allowing him £l6OO on his (bankrupt’s) Miramar property, and taking a first mortgage for the balance of £2 : 50. The Government valuation of the propertv was £3676. Bankrupt's wife was to bo allowed not less than £lO each week for running the business. Actually she drew nothing. Bankrupt did not realise his full position until he njaced his affairs in the hands of his solicitors. Tie was called on by his creditors to file, though he had never been anxious to do so, hoping to be allowed’ to carry on the boardinghouse and allocate to his creditors not less than half the profits each year in linuidation of outstanding debts. He stated he had not vet bad an opportunity of showing what could be done at Otaki because when he took over at the end of February the dead season had commenced. Also, the nlace was shut un for nearly two months for renovations and furnishing and until the end of August there was no one staying there. Thiring tho fortnight of the last school holylavs he averaged £4O a week, the exnenses beinc' only £l2 a week. The possibilities of the establishment could only be reached hv the takings from now till February Mr. Leicester suggested that bankrupt be allowed to carry on over the busy On the motion of Air. T>. Vl Hne. seconded by Air. Farnshaw, the Official Assignee was directed to take steps to wind up the business as soon as possible and to call for tenders. If the offers were low he was to c-nll another meeting of creditors to consider whether the business should be continued over the busy season. . . The meeting, was adjourned emo die.