IN BANKRUPTCY

Southland Times, Issue 18965, 12 June 1923, Page 3

IN BANKRUPTCY

EX-HOTELKEEPER FILES. A meeting of creditors in the estate of Alfred Stephen Archer, ex-hotelkeeper of Bluff, was held yesterday at the office of the Deputy Official Assignee, there being present Messrs J. T. Lilbume of Thomson and Co., represented by Mr O'Byrne, Mr Meredith representing Ryan and Co. Bluff, Mr Bray of Messrs Bray Bros., and Mr Nichol representing bankrupt. Bankrupt’s statement showed the amount owing to unsecured creditors at £526 14s lOd; assets £ll5, leaving a deficiency of £4ll 14s lOd. The principal unsecured creditors were Thomson and Co. Ltd., Invercargill, £271 5s lid, Speight and Co., Dunedin, £lO4 15s 6d, Ryan and Co. Bluff, £49 12s 4d, Nichol Bros. £24 15s Bd, Bray Bros. Ltd., Invercargill, £lO 16s lOd. In his statement, bankrupt said that up to the month of July, 1921, he carried on business in Dunedin. On October 1 he entered into possession of the Golden Age Hotel at Bluff, the goodwill, stock and furniture of which he purchased. He paid, in cash £lB5l and raised the balance on mortgage and bill of sale. He paid into the hotel every penny he owned, and his wife also sold her furniture and the mpney was put into the venture. As his book. debts from his previous business were paid he from time to time used such moneys also in the business. The former proprietor was a man of wide experience as a publican and very popular in the district, and the business had become to a great extent a personal one. He found he could not keep all his customers and through lack of experience and possibly a mistake in judgment he allowed a different class of people to become customers at the hotel. He had been told that this kept others away. After he had been there for 10 months he was compelled to sell out at a sacrifice. He submitted a statement to his creditors who asked him to pay more than he was able. He wished them to be treated all alike and to be saved the costs of bankruptcy, including his expenses, but he had been compelled to file. After leaving the hotel he was idle for five months but was now working for wages at his old trade. He had no furniture and the only assets he had were the balance of the cash remaining from the sale of the hotel and some book debts to come in. He was paying 35/- a week for rent, and regretted that at the present he could not see any prospect of paying liis creditors. He ascribed his failure to his inexperience in licensing law and the business of a publican. Questioned with regard' to irregular takings as shown in the bank deposit, book from week to week, bankrupt said that there were weeks when the takings were considerably more than at other times, for instance at regattas, visits of naval vessels and shipping. At other times things were often very slack. The only amounts that did not go into the bank were for wages, and small amounts in connection with the running of the hotel. In answer to the statement that in nine months, according to the books, there was a loss of £2400, bankrupt said that £9OO of that went in the goodwill. He and his wife had put every penny into the business and things would have come out right if it had not been for their lack of knowledge of the licensing law. They had lost all their money and it was not true that his wife had money in the post office savings bank. After a lengthy discussion it was decided that the Deputy Official Assignee should look fully into the bankrupt’s business since he held the hotel, particularly regarding railway freight, legal expenses and mortgage, and to engage assistance if necessary. It was also decided that the accountancy fee of £7 7s in connection with the work of preparing a statement from bankrupt’s books be paid.