IN BANKRUPTCY.

Hawera Star, Volume XLVI, 25 January 1927, Page 9

IN BANKRUPTCY.

ESTATE OF LUCY BRADLEY O 'DOM' D. A. meeting of creditors iu the- e-date of Mr-s. Lucy Bradley O’Dowd, boarding house keeper, of Hawera., was held, in the office of the Deputy Official Assignee, Mr. R, S. Sage, this afternoon. Bankrupt was represented by Air. D. G. Smart. Air. H. Taylor represented Airs. Alary Morgan. The list- of unsecured creditors was as follows: Airs. Alary Morgan (Hiawera), £46; H'alliwell, Spratt, and Co. . v solicitors, £9 19s 7d; J. Titldy (Hawera), £5 4s 8d; Hawena Borough Council, £lO 9s 9d ; Patea- County Council (Patea), £1 19. s 3d; —. Geary (Hawera), coal merchant, £5 2s; W. A. Parkinson, and Go-. (Hawera), £3 12,s 6d; Dillon and Alas-lin (Hawera) plumbers, £8; L, I. Marker (Hawera), £11; Electric Light Co. (Hawera), 1,7 s 4d; Nelson Bros., (Wellington) £1 16s; P. T. Donnelly (Hawera), stationer, amount not specified; total £IOO 8s 7d. There were no secured creditors and no assets.

The bankrupt, in her statement, said that on January 14, 1924.. she took a lease- of the Heather-lea boardinghouse, in Wilson Street, from) the owner, Airs Mary Morgan, for a term of five- years, at a- weekly rental of £3 til,', Julie 1, 1924, and thereafter at a rental or £4. In. addition -she- had to pay rates, the insurance, and cost -of painting at the end of three years. After she .had been in the house for a few months she- found the conditions different to wnat she had expected. In order to compete with other boardinghouses she had to expend money on repapering, repairs and improvements, also in installing c e-ff rie light in the upstairs portion, of tire house. As time went on, "lie teund it was impossible to make anything out of the- business, and twelve mouths ago, when the -slump was severely let, she had to call upon her savings to make up her losses. Her financial worries had a serious effect upon her health, with fne result that in July last she had a serious breakdown, and was an imr.a’e of the Hawera Hospita' for three weeks. Since coming out of hospital she had not been able to do hard work ,and had been obliged to employ extra lie'p. She then realised that unless her landlady made a considerable -concession her position would he hopeless. The landlady offered to reduee the rent- by iOs per week, and insisted that the bankrupt should paint the house, which ■would have entailed an expenditure of £65. Bankrupt asked the landlady to accept a surrender of the lease. The reply was' that the matter was in the "hands of the landlady’s -solicitor's, who sued lot arrears in rent. Bankrupt could, make no offer to her creditors. Bankrupt- presented a statement of receipts and expenditure since ,she had taken over the boardinghouse. These showed receipts of £786, £7OB, and £723 in the three years she had been in business. Her deficit over this period amounted to £474 3s Bd. The outgoings in the second year were £997. Mr Taylor raised the matter of how many relatives lived in the house with bankrupt. Mrs O’Dowd said her father ■j/d had his food in the house for a lew months. Her daughter had paid visits to her. One of these lasted from August to February. On the average thiei domestic staff ooTisist-ed oil bankrupt- and one assistant. A woman came in to wash. All wages, were paid to date Thai boarders varied in- number from five Howards. The average was about 12 at 25s a week. There were no bad debts. Air Taylor -said Airs Morgan had made a handsome profit out .of the boardinghouse, and had turned it over as a full concern. In response to Air Smart, bankrupt said Airs Morgan, had not suggested, bankrupt would get more hoarders than she -actual v did. Air Taylor: “You go to race -meetings a lot, don’t von, Mrs O’Dowd T’ “1 have not been to a race meeting for twelve months.” “Do von lose much money at races.

“No.” . Bank runt- said th? offer of a reduction of I.os per week on the rent was made- verbally. She did not accept this Mrs Morgan on one occasion paid halt a plumber’s bill. Witness did not have a- bank hook. •

Mr T'avlor: “Have you ever given your husband any money?” “Sometimes.” ... „ ‘•How much? What- tor? . A few shillings, if lie was short.” Mr Smart: “Did your husband ever give you any money, Mrs O’Dowd?” ‘‘Yes.** Bankrupt, further examined bv Mr Taylor, said she" bought- furniture with her husband’s money. Mr Taylor said certain parts of the statement seemed intended to represent Mrs O’Dowd as a:n. injured person. All iris client was interested in nas getting a fair deal. Not too much notice should be taken of “hard luck” stories at these meetings. The D.O.A. : “You know it is customarv for a bankrupt to make' the best of a, 'bad job. There seemed no reason for any suggestion, and none seemed to be made, of misrepresentation as to the value of the boardinghouse. (Left sitting).