HOTEL VENTURE FAILS.

New Zealand Herald, Volume LXIII, Issue 19471, 29 October 1926, Page 15

HOTEL VENTURE FAILS.

WINTER INACTIVITY BLAMED. BANKRUPT WITHOUT ASSETS. Attributing his failure as manager of the Okoroire Hotel to the inaccessibility of the establishment in winter, John Chalmers appeared before a meeting of his creditors yesterday. Bankrupt's schedule showed unsecured liabilities amounting to £1167 and no assets. In his statement bankrupt said he had persuaded an Auckland syndicate to purchase the property five years ago and lease it to him. Both ho and his wife had worked hard to make the hotel pay, but as it was four miles from the railwayit was only popular as a summer resort. The roads were very bad in winter, but as improvements were expected, bettor trade was anticipated. Bankrupt said that early in the present year ho was convicted of three minor breaches of the Licensing Act. The police raised objections to a renewal of the licence and at the annual meeting in June the licensing committee was advised of his financial position and a renewal of the licence was refused. Bankrupt added that he was confident he could have overtaken tho arrears in another two years. In cross-examination, bankrupt said the losses were sustained during the last two winters. An accountant had supervised his books. A creditor said bankrupt had been extravagant in purchasing two motor-cars. Bankrupt said two cars had been necessary to maintain a mail contract ill addition to providing transport for the hotel requirements. He had paid £875 off the cars, and only £2OO was owing. The vendors had nevertheless seized both cars to cover the debt. Questioned regarding a gift of nine turkeys to a friend, bankrupt said he considered the gift was an advertisement, as the recipient was in a position to encourage patronage of the hotel.

Another creditor said the rent was 18 months in arrears, and he thought the affairs of bankrupt should be investigated by an independent accountant. A motion to this effect lapsed, there being no seconder, and the meeting adjourned.