FINANCIAL FAILURES.

New Zealand Herald, Volume LII, Issue 156, 30 June 1914, Page 9

FINANCIAL FAILURES.

MARINER'S) BANKRUPTCY.

LOSSES IN BUSINESS.

HISTORY : OF MISFORTUNES

A MiiEriNO of creditors, was held yesterday in the bankrupt estates of James Phillip Edlington, mariner (formerly a farmer), and his wifo, Harriett Eleanor Edlington, of Auckland. Mr. W. E. Hackett appeared for the bankrupts, Mr. E. A. Singer for Mr& R. W. Skinner, a judgment creditor to the amount of £104 Is, and Mr. G. Mnlgan for Mr. G. Paykol, the original vendor of a property in which tlw parties were Interested. '' The statement of Mrs. Edlington was to the effect, that she married James Phillip Edlington on February 26, 1913,! at which time her husband was farming at Great Barrier Island. The farm was one which her husband hold under hia father's will, which contained a provision enabling him to purchase it at a certain price. About August, 1913, hor husband exercised uls option and sold the property, and with tho excess o'f the price be obtained from tho purchaser (Jensen) they shifted to, Auckland, arid bought from Mrs. Rayuorj Woolfo Skinner her interest, undor an agreement for sale and purchase, in a houso in Williamson's Avenue. Mrs. Skinner had agreed to buy tho house from Mr. George Paykol, and had paid on ac« count of the purchase money of £950 a sum of £150. Bankrupt* paid Mrs. Skinner £175, representing the amount she had paid Paykcl, and a premium of £25. They also agreed to buy the furniture from Mrs. Skinner, and paid her £54 on account. Her husband and herself were both stricken with illness, but after she recovered from an operation which she had

to undergo, she opened a refreshment shop j ,»ear the Exhibition. The business was a | failure, and when she afterwards removed the business to Queen Street she again lost.money. .Tho reason why she and her husband had filed their petitions was that Mrs. Skinner had obtained judgment against thorn for iilo'i Is, balance alleged to be due in respect of the furniture agreed to be sold to thorn. They wanted to pro- ' tect the other creditors. They offered to allow Mrs. Skinner to take back the furniture and retain the £54 if she would accept that in satisfaction of the judgment, but she refused to do so. Her husband was mate on a steamer, and earned £12 a month. At the time she married him he had four children.

The principal creditors in the estate of ; James P. Edlington were : —x>nckJaaid and Sons, auctioneers, £188; Mrs. Skinner, : , £104 is; Robert.Row, grocer, £20; Smith : and Caughey, £16; and Lily Brown, Par-J nell -£13. The deficiency was set down j as £*249 17s 7d- The total debts amounted I to £667 12s XI, owing to unsecured creditors. The only secured creditor was Mr. G. Paykol, to whom £825 10s was shown to be owing. The estimated value of the security (the house) was £975. Asset* amounted to £117 15s, made up of furniture (half interest) £45, and surplus from securities in the hands of secured creditor*, £72 15s. The assets in the wife's estate ware the same as those of the male bankrupt, but the total debts amounted to £136 19a 6d, owing to unsecured creditors, the principal of whom were:—Mrs.! Skinner, £104 Is; Hudson and.Company, i manufacturers, £12; Entrican and Company, Ltd., merchants, £8 14s; and Robert Barber, confectioner, £7 14& 6d. James Phillip Edlington stated that the sale of the farm at'the Groat Barrier realist £*!000. Of this sum he. received! £950 in the shape of a mortgage, and lie discounted this for £850. Ho owed debts in respect to an illness which his first wife had suffered; also £50 wag/ due to th« caretaker of the farm. He paid the caretaker £36. The total amount which he owed at the time he sold the farm was £300. He paid £175 to tho sub-vendor of the Williamson's Avenue property, £54" for the furniture, and the balance wont in meeting doctor's and living expenses. He did Sjot keep any books. The most of tho monev connected with the farm was paid to the National Bank. The assignee announced that tho house in Williamson's Avenue bad been valued, and the valuer.had stated that nobody would live in it until it was renovated. In the face of that fcrro assignee did not .propose to do anything with the property. The' furniture was valued at £9&

Mr. Hackott announced that each bl tho bankrupts ; was claiming furniture to the amount allowed by statute (£25); The assignee said he would havo to ascertain',whether this was legal;. The' meeting 'vas adjourned till July 13, at 10 a.m.,- in. order that the bankrupts nifty orodnce -books and accounts showing the .state of, their affairs.

PUBLICAN'S BANKRUPTCY.

■ DEBTORS IN MANX PLACES The affairs of William L. Dcnnerley. hotelkeeper, of the Thames, a bankrupt, wore investigated at a meeting of creditors held in the, office of the official assigneo (Mr. W. 8. ■ Fisher) yesterday, Mr. T. N. Holmden appeared for Hancocfc and Co., brewers, and Mr. F. Lowrie for C. Lovers and Co. . The bankrupt's liabilities amounted to £49? lfo 9d, owing to unsecured creditors. The assets in the estato were set down at £500. comprising book debts, entered at £1100 and estimated to produco £500. The principal unsecured creditors were: —Hancock and Co.,.brewers, £127; Young and Co. r Wellington, brewers, £70; R. Kflgour, agent, Thames,' £50; A. H. Nathan and Co.', £40; Mrs. Melrose, agent, Thames, £35; Great Northern Rrawerv. £29; John Connolly, butcher, Thames'. £20; J. Rend and Co., £15; and Campbell and Ehrenfried, £12. Series ( <A Misfortunes. In the course of his statement the bankrupt set forth that he commenced business as a hotelltoopei' at Gnmtown on August 12, 1908, paying a rental of £6 por* week. He also paid valuation and goodwill, £1133 13s 4d. Circumstances afterwards led to tho gumdiggors leaving the district, and business decreased. Bankrupt tried to obtain a reduction in tho rent, but ho was not successful. An other loss which lie sustained wns duo to tile Licensing Committee compelling him to erect, at his own expense, fire-escapes and other conveniences. Finding a buyer he sold the hotel for £606 lis sd, the loss on the transaction being £527 la 9d. He was given another start in business by a publican, and bought the le.ve of an hotel, which was patronised by the Waihi strikers (the Pacific Hotel, Thames). As the strike continued the strikers' means

became reduced, and when the trouble ended he v.as again left without money. Matters became worse, a bailiff was put into tho hotel, and ho finally sold it out in March last. He had no money, but had a wife and nine children to keep.

To Mr, Lowrie: Whon he left the hotel at Gum town ho had £25, and had he beon able to get full value for book debts ho would have been able to pay his creditors j in full. Tho debts were tor liquor and ' board. Bankrupt assured the creditors j that all the men to whom he had given ; credit would pay their debts if they could bo found. The trouble was that they were scattered over the couutry. He had not pressed them very hard for money because tho general election of 1911 was approach- j ing, and ho was apprehensive of what would j happen if ho forced the men to pay. He had found that the Pacific Hotel, Thames -his second venture—could not pay £25 per month. He considered that if he wore able to got all his hook dobts in he would bo solvent. Mr. Michael O'Connor, of Gumtown, had advanced him about £763 to go into the Pacific Hotel, at Thames. O'Connor had lent him over £800, but he did not owe O'Connor any money now, as the latter bought tho Pacific Hotel frcm him. He had paid £25 per month to O'Connor, to cover principal and interest. Mr. Maurice O'Connor, of Auckland, had given him a bonus of £84 when ho left Thames.

Who Was Landlord? To Mr. 1 Holniden : When at Gumtown he was unaware for some time who the' landlord of the hotel wag, but ha subsa-1 quontly found out that Hancock and Com-: pa.iy were the landlords. He should have I known when ho signed the lease who the landlords were, but ho did not know, Mr. HoJmden: It is no use talking rot. You signed the lease to O'Connor. Bankrupt: I signed the lease to Hancock and Company. Mr. Holmden: Hancock and Company could not reduce the rent without O'Connor's permission. Bankrupt stated that it was at Gumtown that he lost the most of his money. ! About £600 was due to him for beer supplied at Gumtown, and he lost about £400 at the 1 names. Mr. Holmdon said that Hancock and Company charged the bankrupt for insurance and rent, and exactly the amount thoy had to pay Michael O'Connor they collected from bankrupt. When bankrupt went behind it was for goods supplied and mooey out of pookot. After further questions, tha assignae said that he did not see much hope of assisting I the creditors. ■ The meeting was adjourned sine die,