BANKRUPTCY.

Evening Post, Volume LXXIX, Issue 82, 8 April 1910, Page 7

BANKRUPTCY.

MR. G. PINNOCK'S ESTATE. FULL STATEMENT BY THE DEBTOR. An adjourned meeting of creditors in the bankrupt estate of G. Pinnock, exlicensee of the Commercial Hotel, was held this morning, the Official Assignee (Mr. A. Simpson) presiding. Mr. Herdman appeared for tho debtor and Jlr. Dalziell for the secured creditors. BANKRUPT'S STATEMENT. In his statement the bankrupt said :—: — "I have been adjudicated a bankrupt upon the petition of Messrs. Gilmer and Maguire under circumstances which I shall detail further on in this statement. I believe that, given opportunity, I could have eventually disposed of the leise of the Commercial Hotel and paid all my debts with ease. " 1. I commenced business in Wellington fourteen years ago in the old Troeadero in Willis-street, having then about £470 of capital. Whilst carrying on business there, out of my earnings I furnished and fitted out the Bodega, afterwards disposing of it to Mr. Brice for, I think, between £500 and joGOO. Then there came a fire, the old Trocadero was destroyed, and I received about £1200 in respect of insurance npon my furniture and belongings. "2. I leased the Trocadero Hotel on Lambton-quay from Messrs. Gilmer and Maguire on* the 24th day of March, IQO2, paying them, by way of premium for the lease £500. and about £700 for the furniture which was then in it. 1 added to the furniture in this place from time to time out of my earnings, and when the big fire look place on Laanb-ton-quay a few years ago my belongings were insured for £2000. 1 was paid this amount in respect of insurance after thafr fire. Then the present building was erected, and my rent was increased to £25 18s 3d per week. On the furniture of the new establishment I spent the £2000 received from tho insurance companies, and a further sum of £2000 out of my own moneys. When I had the Troc» Nro only 1 prospered. My financial petition steadily improved, an'i I was able out of my profits to buy interests in farm? at the Upper Ilutt and in properties situated in Perth. Meinstreet, Rintoul-street, Dixon-strect. and Miramar Junction. The Dizon-street property was sold at a profit of £1000. With the exception of the Perth property all thess lands are subject to mortgages. The Trocadero lease has two years to run. Shortly after I went into the Commercial Hotel I lea.-cd the Trccadero to one Almond at a rental of £57 7s 7d per week. Later on he agreed to buy for £6000, but he did not keep up his payments, and went bankrupt. I found myself liable for £600 for rates and rent which Almond should have paid. At the time of my bankruptcy the Trocadero was leased to a Mrs. Cockayne as a weekly tenant. My agreement with her can be terminated at any time. "3. Towards the end of the year 1906, I was persuaded to buy a lease of five years of the Commercial Hotel. This .«-tep has involved me in my present difficult i«F. The following are some of the principal features of the arrangement which I entered into with Messrs. Gilmer and Magnire :— (1) I was to p.»y for the goodwill of the lease £4500. Tha payment of this amount was to extend ever five years. (2) The rent reserved by the leas* is £75 per week, but it was understood that I was to pay £65 per 1 week only to long as I took beer inclusively from Staples and Co. (3) The lease was to be for a period of five years. (4) I was to pay rates, taxes, and insurance, and I was to receive all rents from the shops connected with the hotel. (5) I was to furni-h the hotel. (6) I agreed, after I had been in the hotel for about two months, to pay £1650 for stock in hand aad silver • and plate ordered, and other items. I gave a p.n. for £1650, payable in «x months. Since taking the Commercial Hotel I have paid Messrs. Gilmer and Maauiro £1000 off tho p.n. given for £1650Further, I have paid in cash to the D.I.C. on account of furniture ordered for the- Commercial Hotel by Messrs. Gilmer and Maguire about £*2300, and I have paid £138 in cash for a piano For alterations, additions, r.nd other furnishings I have "aid away a'.ioioximately £500. "The past year has not been a good one in. the hotel business, and I now fird that when I went into the hotel I undertook obligations which could not be discharged by me in tho first twelve months of the occupancy of the hotel. Calculated at so much per week, tho following payments will help to illustrate th« difficulty of my position: — I have had to pay for rent per week £65, for rates and insurance per week £12, on account of goodwill per week £18, on acount of wages per week £35 —a total per week of £150. "4 Mrs. Pinnock has an interest m nine motor cars. Three of them were bought witn money which I gave her about two years ago. The remaining *ut have been bailed to her by Messrt. Inglis Brothers. Mrs. Pinnock has been advised by my solicitor that she should forego her claim to the three cars first mentioned. She therefore abandons hei rights, and agrees to the cars being inculded in my assets. I have made a JolJ statement about the motor car business to the Official Aseigneo and his solicitor, and will gladly supplement tnat statement if any further information is required. "3. On the sth of February last, a httlo over twelve months after I went into the Commercial Hotel, Messrs. Gilmer and Maguire served me with two writs — one for £1046 Is, tho amount of a dishonoured p.n. due 18th December, 1909, given for the first instalment of goodwill; Use other for £692 11b, tha Balance of a p.n. originally given for £1650. I could not meet these bills, and Messrs. Gilmer and Maguire would not renew them. Thus I find myself in my present position. THE DISCUSSION. Ihe Official Assignee said the debtor's statemeut showed \unsecured creditors £14,065, secured creditors £6571, estimated at £13,600. He gave other details of the bankrupt's position, the result being that the bankrupt showed a. surplus of £1362 16s lid. He had called for tenders for the lease of the Trocadero and the- Commercial Hotel, closing on Monday next. As to the lease- of the Trocadero Hotel, Mrs. Cockayne, the lessee, denied through her solicitor, that she was willing to give np the lease. Mr. Pinnock, he added, bad no right to give the lease, and it was for the creditors to consider the position. Arrangements, however, would have to ba made about tht arrears cf rent. .Mr Fitzgibbon said Mrs. Cockayne desired to state that her dealings with >lr Pinnock were perfectly fair and houcst. She did not desire to take up any hostile attitude. \i\e Official Assignee said that things were icoing smoothly at the hotel. Mr. Pinnock hid been fined £10 for Sunday trading ; he (Mr. Pinnock) would have to pay that out of hi* own pocket. He thought it would be well for the creditors to appoint two c-f their number to help him in regard to the. tenders, and s: icgard t$ the lease of the hotels. Mi .

A. M. Lewis was one of the biggest creditors, apait fiom the landlords; the amount owing to him w?s £1075 It was decided that Messrs. Lewis. T. Madden, and J. U. Turnbull act with the Ollkial Assignee in the matters referred to. The Official Assignee, in answer lo Mr. Dulzidl, said that Messis. Gilmer ;>nd Majui»e desired to assist the creditors in every way possible. They had, of course, the right to refuse the admission of any proposed lessee of whom they disapproved. In legard to the lease of -the Trocadero, Mr. Herdman said when Mis>. Cockayne asked for the lease. Mr. Pinnock had not abandoned hope of settling with Messrs. (Jilmer and Maguiic. 1 . The ari?>igemtnt was exceedingly favourable to the creditors, but if tlie agreement was illegal, Mrs. Cockayne would have to go out. In making the Eiiani;ement Mr. Pinnock was acting quite bona fide and in the interests cf his creditors. The Official Assignee went in considerable detail into the assets of the debtor, and referred to the taxi-cab.«. By ad\ice of his solicitor, lit' (the Official Assignee) had taken possession of three cars, including one which he was having put into running order. Another car wa.s not in good order, but it would not cost much io have it put into order. Mtf. Pinnock still claimed six cars, and Inglis Bros, had taken pos^e^sion of them on the ground tJiat the contract had not been carried out. Mr. Gilmer was ouite prepared_ to find the mon°y for tne -cars, provided that he wo^d have a first charge on them in the c-vent of sale. The debtor was sworn. In answer to a creditor, he siid he was in a good financial position before he took the lea«e ot" the Commercial Hotel. Everything be h?d now he hid then. His property was worth about £30,000. subject to mortgages of £7500. The Official Assignee said he would make full enquiry into tho *tate of affairs as between Almond and Pinnock. The debtor said ho received übout £700 from Almond while ho. (Almond) v.-os in the Trocadero. That was for rent, and ho received ?bout £200 on the mortgage. It was all put into the btiiik. Mr. Maguire stated that the arrangement with Mr. Pinnock was that he was to pay £45 for the hotel ; the shops were aftUtlunal. Air. Pinnock said he only received £11 n week from the shops, and an extra £2 for a brief period. Mr. Dalziell stated that Messrs. Gilmer and Mastu're had been extremely fair to Mr. Pinnock. The debtor, in answer to Mr. Dalziell, said that sonic four months ngo Messrs. Gilmer and Maeuire advised him to go out of the hotel, or give them security for the uusecured money. He said lie would give security o\er the hotel, but »iot over the furniture. At that time he believed he had considerable equity in the property. He put the hotel into an aeent's hands, askins £11,500 or £10,500 (he was not sure which) as the price for a goiii" concern. At that time he was going behind all the time. The Official Assignee : On lOth Jannary, 1910, you got £1000 from Messrs. Thomson and Lewis? — Yes. At that time were you not in difficulties T — Yes. After further discussion the meeting was again adjourned to a date to be fixed.