MEETING OF CREDITORS.

Otago Daily Times, Issue 14682, 16 November 1909, Page 6

MEETING OF CREDITORS.

HOTKLKEBPER'S BANKRUPTCY.

(Fuou Oop. Own- CojtitrsroxnEXT.)

INVERCARCILL, November 15. A meeting of creditors of interest to some Dunedm people was held here to-dav i W As,^ oncc^ li, ; s ,he bankrupt estate of ,Jas - M Hotmail, liotelkceper, Lmnsden. ami was attended by Messrs G. Johnson, T. A ! C MI f- R - lm : tel ' J,,a - Mo,lc «' and A. Mollctt (representing W. J Molfctt and U).). Mr John Moffett professionally represented bankrupt, while Mr .T S Neavc watched proceedings on behalf of Messrs Moflett and Co. Mr Eustaco Russell was present as agent for Mr W. L. Moore, who >vas solicitor for Mr Millar (Dunedin). Mr Russell asked if the meeting could not be adjourned, us Mr Moore was on the express, and would have been at the meet'lff had the train not been delayed at Mosgiel, so that it would not reach Invorcargill till 4 p.m. He understood that it was fl matter of great importance to Air Moore, as there was some contest between him (on behalf of his client) and Messrs W. .7. Moffett and Co. as to whether the lease had been terminated. Mr J. Moffett questioned Mr Russell's status, w Mr Millar was not an unsecured creditor, and had lodged no proof of debt. .The Assignee said that the matter lay with the creditors, who t'Hereupon intimated that they desired the meeting to go on. Mr Russell retired.

The statement of assets and liabilities showed that tho liabilities amounted to £311 7s 6d. The assets were £148, the deficiency being £163 7s 6d. The assets comprised: Stock in trade. £55: furniture, £20; property (three horses £50, and an eNpvess £10), £65; book debts, £30 (estimated to produce. £10); and cash in hand £3. William Millar (Dunedin) was a secured creditor to tho amount; of £652. The unsecured creditors were Messrs Simpeon, Hart and Go. (Lawrence), £74 12s 6d • Thomson ami Co., £12; A. Taylor and Co' (Ditnedin). £60; A. R, Porter, £12; \\ ,j' Moffett, £40; John Moffett, £21; Rattray and M'Donald, £15 15s; Neill and Co. (Dunedm), £35; Geo. Johnson, £20; T A. Henry (Luiusdon), £10; Ktracluw. and Co. (Dunedin), £8.

The bankrupt, having been sworn, stated that he had purchased the good-will of the lease and tho furniture from P. J. Rodgers about 18 mdjiths ago for £750. He paid £80 cash and gave a bill of sale for the balanco Included in the bill of sale was furniture in the hotel, valued at £225 and his private furniture valued at £175! The latter belonged to his wife, but hs had her consent to include it. After buying iho furniture from Mr Taylor (his wife's father). He subsequently gave Taylor a mortgage over it, and this Taylor later gave, to his daughter (Mrs M'Dougall). the old lease had about 15 mouths to run, and debtor considered that ho had paid far too much for the good-will. He had paid Rodgers further sums totalling about £60. He afterwards got a new lease from Moffott and Co. for live years Iho lease was dated 31st October, 1908. He gave Rodgers a security over this lease and the bill of sale was not executed till the new lease came into force. He had found out that on October 4, 1909, Rodgers had transferred his interest in the sewiritiee to Win. Millar (of Dimodin). ' He had no notice or 'knowledge of this at the time. The first notice he got was some days afterwards (in October), when a clerk »f Messrs Moore and Moore (solicitor' Dunedin) called on him at Lumsdcn ill company with a Mr Collins, and intimated that, in default of immediate payment of a. demand, which the clerk hawed to him the premises were sold to Mr Collins, and that Mr Collins was preyed lo take possession at once. The dork said that in order not to bo harsh they would give him time to go out and a cash bonus of *•&> if he gavo up peaceable possesion. He retuscd to do this. The prmcimd moneys had become due to Rodgers before this tune, but no written demand for them had been made. He had put everything into the business, and had had a struggle wiili it, and was just beginning to niaJtc it pay when this demand came, and ho had no option but to file.

fho Assignee mentioned that he had an ofter from Mr Moore to take over tho plant and stock-in-trade at a valuation, and to pay all the back rent, provided he got possession.

Mr J. Mofl'etf said that that was the point—the possession which affected the uns3oitr v vl creditors.

Continuing his slafcmems, debtor said that he thought the goods received from Neill and Co. included in the list of liabilities came to hand some four or five days after ho had lilod.

On the motion of Mr Johnson, it was decided tliat tenders be called for the three horses and the express and trap. On Mr Porter's motion, the meeting decided to put bankrupt in charge of the hotel and stock-in-trade in place of the ballilV' (now in charge) until the assignee relinquished possession. Mr Johnson to supervise. _ Debtor intimated (when the question of remuneration was mentioned) that he, would manage the place without remuneration, as his desire was to have the matter settled and io get his discharge. Mr Johnson moved that the bankrupt bo allowed all furniture outside the bill of sale, and that he \x recommended for his immediate discharge. Mr Henry seconded, and the motion was carried unanimously. The meeting then adjourned sine die, after it had been arranged that Mr Johnsoil should get from the baililt in charge a statement of accounts showing the business done since he went, in, and forward the statement to the assignee.