RISKS OF RACING.

New Zealand Herald, Volume LII, Issue 15915, 12 May 1915, Page 4

RISKS OF RACING.

UNSUCCESSFUL PARTNERSHIP

" BAD LUCK AND HIGH INTEREST."

PROCEEDINGS IN BANKRUPTCY.

A MEETING of creditors in the (state o? Charles and John Nicholson, triding as Nicholson Brothers, horse-owners., of Te. Papapa, Onehunga, was held at the office of the official assignee, Mr. NY. S. Fisher, yesterday.

The official assignee said that the debtors had represented to him that they had no private liabilities and no assets, and ha had therefore only required them to make out the one schedule.

The statement filed by the debars showed Hie liabilities to be as fellows — Unsecured, £409 6s : secured (with securities valued at £1350). £1079: leaving a nominal surplus of £271. To this surplus there had to be added assets in the shape of book debts amounting to £27. Ihe total assets were, therefore.. £298, leaving a nominal deficiency of £111 6s. The secured creditors were Dr. Bi'o kwv/, £404 ; Mr. R. W. Brown, £280 and Dr.* Gore Gillon, £395. Dr. Brock way was secured by a bill of sale over the horses in the possession of the debtor?, Mr. Brown by a first mortgage over propertr in Robert Street Ellerslie, and Dr. (inra Gillon by a second mortgage over the same property.

The debtors stated that they started training and owning trotting horses about five or six years ago. The first trotting horse they owned proved a success and with a portion of their winnings they bought other horses, namely, Madame Melba and Captain Bell. Madame Melba proved a success but the other did not and was sold for £65. In Christohurch thev bought the horse Monica for £75 and with it won £100 in Auckland. Then they purchased a bay mare. Sylvie, and she paid for herself in the same year. They bought a half-share in Golconda for £81 ss, giving a promissory note for six months and the horse turned' out a success, In May, 1912, they went to Christohurch with Monica and Golcondu, but the animals caught colds and had no chance of winning. The trip to Christchurch represented a dead loss of £194 6s. Subsequently, in Auckland, Golconda won a stake of £85 but the horse was disqualified by the stewards and the race awarded to the second horse. In February, 1914, they borrowed £80 to buy the horse Stop It but some weeks later she dropped dead while working on the track. Bad luck and heavy interest payments had caused their bankruptcy. he debtors in explaining certain borrowing transactions with Dr. Brockwav and Mr. N. Cohen, said that on February 17, 1913, they borrowed from Dr. Brockwav £100 for' six months. Repayment fell due in August. 1913, but the loan was renewed for a similar term. It fell due in February, 1914. and was taken over by* Mr. Cohen, jeweller, the amount being now £152 14s, le;u £10, leaving a balance of £142 14s. Another loan of £80 to buy Stop It increased the total to £222 14s. Insurances and expenses, £13 16s, carried the amount to £236 10s, and another £50 to be paid for interest at the end of the term, which fell due on August 11, 1914, brought it up to £286 10s. There were no race meetings at the time, and they wore unable to pay, and on the 'suggestion of Dr. Brockway the loan was again renewed, with £100 as interest, for another, six months, making the total now £386 10s. During this period £50 was paid off, leaving a balance of £336 10s. In February, 1915, at the expiration of this term, the bill of sale was again drawn up lor a renewal for six months, with £100 interest, but owing to the excessive interest they had it renewed for three months only," with £50 interest, making a total of £386 10s, which fell due on the 24th inst.

Charles Nicholson said no record had been kept of their receipts in the way of winnings or their outgoings in the way of entrance fees and so forth. They never had a banking account. All profits were practically swallowed up in expenses, 6uch as entry and nomination fees, and, of course, in buying other horses. They had gone to the bad in the course of three years to the extent of £409. In Christchurch in May, 1912, they fell short of ready money, and were compelled to borrow £75. To meet this liability they had to sell Sylvie. They had since then experienced a certain difficulty Si paying their way, but they did not regard themselves as insolvent until about six weeks ago, when the horse Stop It died.

A creditor asked whether the horse was insured? The debtor said that they were under the impression that the "horses were all insured. When Stop It died they rang up Dr. Brockway. The reply was: "I let the insurance run out." At the same time they had been charged for insurance. A Creditor: The mare was worth £200. The debtors said the mare had be.m insured with the Liverpool and London and Globe Company. When Mr. Cohen took over the bill of sale they were charged £13 16s, representing insurance and other expenses. The official assignee said that ho had had some experience -of the insurance charges for racehorses, and he knew how high they were. The sum of £13 would cover a very small sum. Addressing Dr. Brockway, who was among the creditors present, the official assignee said he had lent the debtors £166 10s, of which the latter had repaid £60. These transactions tool; place two years ago. Dr. Brockway now made a claim against the estate for £404. In the face of this he would require a full statement from Dr. Brockway as to his dealings with the debtors. "Was there ever any insurance over these horses," asked the official assignee. Dr. Brockway: Yes. The Official Assignee : Did ypu get anything from the insurance company in respect of the death .of one of them ? Dr. Brockway replied in the negative. The Official Assignee : The debtors allege they were charged for the insurance premium£

Irr the course of further discussion. Dr. Brockway said that the amount of indebtedness had accumulated by reason of insurance and legal expenses, and not so much by reason of interest charges as alleged. In answer to the official assignee the debtors estimated that the horses remaining in their possession would realise £500 at a sale by auction. The official assignee said that if there were a surplus from the sale he would require a full statement from Dr. Brockway regarding his account with the debtors. According to this statement the amount charged for interest was tremendous.

Dr. Brockway : It is incorrect. It is admitted 50 per cent, was insurance charges. The Official Assignee: It is not admitted so far as I know. Proceeding, he said there should be £500 worth of assets. Dr. Brockway claimed for £404, and a, large portion of this appeared to be made up of exorbitant interest charges. He would therefore require a full account, and if exorbitant interest were proved he would, if necessary, go to the Court for relief. Dr. Broekway said lie was prepared to put in the full statement required, aid the meeting was adjourned to a date to be fixed.