BANKRUPT ESTATE.

Otago Witness, Issue 3775, 20 July 1926, Page 5

BANKRUPT ESTATE.

CAVES, LIMITED. A meeting of creditors in the bankrupt Estate of Henry Walter and Thomas Rupert Winter was held on July 12, when the official assignee (Mr E. W. Cave) presided over a large meeting of creditors. Mr W. L. Moore appeared for the bankrupts, and Messrs Peter Anderson, H. L. Cook, E. J. Anderson, J. EL Stevenson and Fairmaid appeared for various creditors. The bankrupts' statement showed that £1538 6s 4d was the amount owing to unsecured creditors, and that £660 2s 9d was owing to secured creditors. The assets consisted of stock in trade, furniture, plant and fittings of the value of £924 12s 9d, a deficiency of £613 13s 7d thus being disclosed. The chief creditors were Messrs Wood and M'Cormack (£162), William A. Bolwell (£180) O. U. Cooper Clothing Co. (£94). Messrs Tucker and Co. (£73). Taieri and Peninsula Dairy Co. (£B6), Messrs Manhire and Hinchcliff (£B4), Mr Manuel Hyman (£52). The official assignee read the following statement submitted by the bankrupt:— “We arranged in June of last year to take a lease of the premises now known as The Oriental Caves, the lease commencing on July 1. The capital we put into the business was some bonds in the Canterbury Farmers’ Co-op. belonging to Henry Walter Winter. At the beginning we arranged a bank overdraft on the security of these, which was subsequently paid off when the bonds were realised. They brought £347. The lease was for five years, with the right of renewal. We found that the premises required a considerable sum spent on them to fit them up, and we endeavoured unsuccessfully to cancel the lease. We spent £SOO on fitting up the premises. We obtained goods on the hirA purchase system from Laidlaw, and Gray. A. and J. Watt. Avery Scales, National Cash Register, Howell Piano Co. L. R. Gardiner and Edison Phonograph Co., and made payments on account of them all. Some of the goods not purchased on this system were included in a bill of sale given' to Mr Gardiner. Business at the beginning appeared to be satisfactory. We were running the place as a marble bar and in November we thought the Exhibition trade would allow us to serve meals, # ?but we found this trade very erratic and it did not pay. In December Henry Walter Winter had judgment given against him in Dunedin _ for a private debt, and the creditor threatened to distrain dir the plaintff. We, accordngly, formed the business into a limited company, to prefect’the. partnership creditors. At the close of the ‘Exhibition we decided to run the place as a cabaret, thinking that better business would result. We engaged Manuel Hyman’s band for a fortnight at a cost of '£7o per week for a trial. He told us that he thought a lot of his patrons would follow him, but we found that our own customers Jeft, and his followers only came in f out complimentary tickets supplied by him. The takings dropped from £l3) to £2s for the week. The creditors pressed usr and we called a meeting and decided liquidate the company. The list .of creditors in our statement is a list of the boith of the company and ourselves. . Thomas Rupert Winter paid into ihe 1 business the rent received froin a house in Filleul street, less the payments for instalments due by him. We consider the bankruptcy is due to starting on insufficient Capital and the supplying of meals, and" the attempt to run a cabaret. ' We , are now working it as we did at the be ginning, and the place shows a profit, and we are satisfied that if given time and opportunity we can eventually make a success of it.” _ Mr Moore explained that the creditors might have claims either against the Oriental Caves Company or against the parfhorihip. The company had gone into liquidation, and it seemed to him that it would be fairer if the creditors were to combine and allow the assignee to realise .on the assets, the liquidators of the company . signing any necessary documents. The Assignee said that in order to en lighten ihe creditors as to the position he would read the private statement of H. W. Winter. Tho statement was as follows: —_ “I started farming in 1903 on a smad farm at Mount Cargill. I put no money of my own into this farm at the time, having borro ved £l7O to buy the piece of land-, which cost me £l6O. I met with fair succe3B at farming, my position gradually improving, until in March. 1920, I owned altogether 204 acres of freehold, and 30 acres of leasehold lands valued in all by the»#aluer at £3OOO. Unfortunately, about the same time, I mot with a serious accident to my leg, and, as I could not go back to the farm. I had to sell out, the stock realising £I7OO. Owing to the injury to my leg I was unable to do any work for the following two years, and altogether during that time had to spend about £SOO in one way or another. In February, 1923, I jvent into a partnership with my nephew, Mr T. R. Winter, and leased the Gladstone Hotel, purchasing the goodwill and furniture for £3500. I had to borrow £I2OO on the security of my farm to find the necessary finance for this dekl, and in addition I put in all my other assets with the exception of £4OO, which I had invasted in Canterbury Farmers' Cooperative Bonds. We carried on the hotel for one year and six months, when we dissolved partnership. I paid my nephew £l5O. and carried on by myself for four months longer. I sold out for £2150, and after payment of commission and debts had £I6OO. I myself lost £ISOO on the hotel. In order to help my nephew, who had lost £6OO on a loan to a travelling theatrical show, I then advanced sufficient money to the company to pay their passage from Dunedin to Invercargill on the understanding I was to be repaid when they arrived there. Previous to this, and while 1 was still in the hotel, I had sent £IOO to the North Island to the same company. I then received a wire from the company that there were warrants out for the arrest of some of them, and with the idea of protecting mv previous advances I advanced more. I then theught it might bo better if I took over the show myself, a.id accordingly I took all their goods, not on bailment, paying out about £4OO for them. I then gave security to Kearns, Woodward, and Dexter on December 23, 1924, so as to enable me to tako the goods to Australia. I found later that all Hie goods which I had taken over had been previously mortred under a different name to people Auckland. The oompany went Jo Mel-

bourne, and I went with them. In Melbourne they ordered goods lor their act, and charged them up to me. When all preliminary negotiations were practically completed the company refused o perform, and we had to put all the mods in a store meanwhile. I copyrighted the play, so that they could not use it. I then came back to Auokland to see Messrs Kearns, Woodward, and Dexter about their aocount, and arranged Terhally for them to wait until we could get a show running at the Exhibition, Coming on to Dun-

e3in, I then arranged'for space at Exhibition, but before we got the show started Kearns, Woodward, and Dexter issued a writ against me for the whole amount of their aocount, consequently ending all negotiations to get the goods returned. I have eince heard casually that the goods have been sold, but do not know for certain. I then tried to sell my Canterbury Farmers’ Co-op. bonds, but as no buyers were forthcoming I arranged with the bank for an overdraft on the seourity of them, and, in partnership with

Y my nephew, started In the premises now known as the Oriental Caves. 1 attribute mry bankruptcy to mv combined losses on the hotel and tho theatrical show, followed by tho action of Kearns. Woodward, and Dexter in closing on me before I had had an opportunity to get any return out of the theatrical show, and so leaving me. with insufficient working capital to give the Oriental Caves an opportunity to redeem the expenditure at the outset for fitting, eto."-

Tlie Official Assignee said that he had run the Caves for one week, and that il had Bhown a profit of £5, this not inolud* ing on liens to the seoured creditors, which would total £6O per month* Mr Gray said he thought the busineaa should be carried on a little longer. It was decided that the official assignee carry on the business for not more than a month, and that is the meantime ha should call for tenders for it as a going concern, i Tho meeting then adjourned*