MEETING OF MR SCOTT’S CREDITORS.

New Zealand Mail, Issue 761, 1 October 1886, Page 29

MEETING OF MR SCOTT’S CREDITORS.

The adjourned meeting of creditors in the estate of Robert Scott, publican, was held yesterday week. There were about twenty creditors present, and the Official Assignee presided. Mr Skerrett appeared for several creditors, and Mr Jellicoe for the debtor and several creditors. The Assignee read a statement drawn up by the debtor, from which it appeared that Mr Scott took possession of the Duke of Edinburgh Hotel in Feburary last, buying the lease, stock furniture, etc., for £IOSO, one half to be paid in cash, and the other by bills at three, six, and nine months, at 8 per cent, interest. He also got an advance of £95, on bills to be endorsed by Mr Bertie. Having but little money of his own, Mr Scott oblained from Mr Bertie an advance of ahout £4OO to make up the second half or the purchase money, on bills at four, seven, and ten months. Mr Bertie was to receive for this the rent of three shops adjoining the bote’, which amounted to about £IBO per annum. The debtor paid Mr Bertie £4O by way of bonus. Knowing that Mr Scott would not be able to' meet his bills, Mr Bertie promised to make no use of the bills, but to lock them up in his safe and also to assist him with respect to Gilmer’s bills. Because, he said he had got plenty of money. The debtor spent about £l3O in improving the hotel. In July last Mr Bertie procured him an overdraft of £SOO, taking a. bill of sale over the whole property. On the 9 th of September Mr Bertie informed him that he had discounted a bill for £139 which would be due on the 19tb, which he expected him (Mr Scott) to meet and the debtor said he would not be able to do it ; and Mr Bertie said he would not give him a penny, aud would enter into possession on the bill of sale. The debtor then filed his petition of bankruptcy. When he went into the hotel he owedr; between £4OO and £SOO, which, however, was not pressing. No other creditors but Mr Bertie were pressing him. The Assignee said he had prepared a statement of the estate. He found that the total receipts from the hotel for seven months were £2900 '}a 6d. When Mr Scott started the business he had £177 cash in hand paid into the bank. He received sundry other amounts—£2so from Mr Bertie ; £502 from the National Bank ; £4B from the Bank of New South Wales ; sundry advances £261, or a total of *£lo6l. The total [receipts were thus £4139. Other liabilities of £I3OO made the total £5439. The payments, exclusive of the stocJK and current expenses, were—purchase money, £702 ; license, £4O ; rent, £4O ; house in CnbaBtreet, £123 ; furniture and private expenses, £2OO ; total, £llOO. The private expenses disbursements included the payment of renewal of old debt 3. Thus the other expenditure on rent, stock, &c., was £4329, which, lei s the valuation of stock in hand, £225, was £4104, and average of weekly expenditure of £136 16s, which was about £4O a week in excess of the takings. He (the Assignee) had made an estimate, based on Mr Scott’s figures, of what the expendi-

ture should be weekly, and he made it £9O. as against £136 actually expended. With regard to Mr Bertie not renewing the bills, he might say that Mr Bertie gave Mr Scott a £SOO advance, which was more than equivalent to the amount of the bill, .An argument ensued as the proposals made by Mr Bertie to the debtor. Mr Scott said Mr Bertie wanted him to transfer the license to him, and let him take possession of the house before the petition in bankruptcy was filed. Mr Bertie denied this, and Mr Skerrett said that in his presence the debtor had obtained £SOO from Mr Bertie on the distinct representation that he (Scott) could carry on if he 'got that amount. Mr Scott squandered that money in six weeks, meeting only or.e bill that bore Mr Bertie’s endorsement. Then ho proposed that Mr Bertie should “square” his creditors in order that he (Mr Scctt) might avoid a proper settlement. Mr Scott denied this.

Mr Fielder : What about this bill of sale ? Mr Jelilcoe : It is absolutely void, and the creditors will parfcic ; pate in the estate. No one knows that better than Mr Bertie,

Mr Skerrett objected to this, and said it was nonsense to say Mr Bertie knew it. M r Jellicoe uno'eratood that the Assignee had taken independent advice—had consulted Mr Travers. _ < Mr Skerrett said his clients intended to fight the matter. Mr Jellicoe raid if the bilt was bad the advice must have been had Mr Skerrett: The innuendo is characteristic of my friend. The debtor was examined by Mr Skerrett with regard to six or seven sides of bacon wLich had been banging up in the kitcheD, and which had disappeared. He did not know anythiug of them, he said ; he had not taken them away, nor did he know how they had gone, by whom they were taksn, or where they were. Mir EL Wright remarked that according to the statements submitted, it appeared that an hotel doing one of the best businesses in the city was worked at a great loss. Mr Skerrett : A loss of £4O a week, after deducting a fair margin for expenses. The Assignee remarked that they knew what Mr Gilmer made out of the hotel. Mr Jellicoe : But all men are not born publicans. Mr S. Waters said there was a great deal in that ; anyone pasainer the Duke of Edinburgh Hotel could nee Mr Scott was not cut out for a publican. Mr T. W* Young suggested that the Assignee should furth-.r investigate the estate, anti see whether tha money had been properly expended. This was agreed to.

The question of whether a public examination before the Bankruptcy Court should be asked for, was raised. It was decided to leave it over.

The meeting was then adjourned till further notice.