BANKRUPTCY.

Colonist, Volume XXXVII, Issue 8061, 4 October 1894, Page 2

BANKRUPTCY.

Be OiTo^HiASEi hotelkeeper, Riohmond, a bankrupt. Thefirst meeting of creditors in tho above state waa held in the office of Mr A. A. loaife, Deputy Offioial Atsig^.ee, yesterday if ti moon. Th 9 following creditors were represented : r. M. Croucher, £3 13a 3d; J. Shield?, £24 )s 3d ; McGavin and Co. (Mr F. Turner). £19 7s ; W. B. May, £71 10 a sd; G. Ingram W. R. May), £2 16s 6d; Bond Finney anl jo., £5 15 31; J. Hami ton, £23 4s ; T.H. ffarey, £25 ; Hanoook and Co. (Mr F. HamItor,), £45 15s 6d. Mr Harley appeared for the bankrupt. Mr Scaife said that, by bankrupt's statement, debts due to unseoured creditors amounted to £361 19s 103, to secured creditors £74 93 4d ; while the assets were put down as stock, £20 ; book debts, £40 ; license £33 15s ; horses, £20 ; oow, £5 ; and the contentß, furniture, etc., ol the White Hart Hotel over whioh the secured creditors held a bill of sale, were valued at £330. A surplus of £12 5s lOd was shown. Wbeo bankrupt filed, he (Mr Soaife) found the baliffs in possession for rent and also on acoount of the bill of sale, the total debts due in respeot to the two being £116 le, which be guaranteed to prevent a forced sale, and the creditors' interests in the assets being thereby sacrifiatd. The question wpb askeJ, if thero were any oredit^is bayond thoae mentioned in bankrupt's statement? It was found that there were debt 3 amounting to about £30 not included, tbe bankrupt saying that he had not the accounts, and had therefore overlooked them. Mr C. i. Harley said that bankrupt attribu ed his position to the faot that the house did not pay, and he, going into the house £50 in debt, had gradually got behind, with the re3alt tbat he had been sued, and the baliff 8 put in. Mr May said that he lent bankrupt £15 in Marob, and was told that this was the last payment on the furniture. Bankrupt said tbat this was not so, the £15, whioh had besn repaid, was for change. Mr F. Hamilton Eaid that Hancock and Co. sold bankrupt a billiard table, and, bef ;re any ai rangement whatever had been made for payment, a bill of sale was given over the table. Tb.9 Bankrupt, examined by Mr Scaife, said ', I commenced business in Richmond in August, 1892. For s'x months previous to that I had not done anything, and before that I kept an accommodation house at Kaituna. On going into the hotel I borrowed £60 from my b(Other-in-law, Arthur Hounsell, giving him security over a piano and a little furniture I had. I was to pay £75 per year rent, and was bound to take beer at £5 13s the hogshead from Mr T. H. Harley. I paid £3G cash for the license, and had to get furniture on bills, which with the £36 made £70. I produce my cash book; I show a balance each month, and each balance is accounted for. (Mr Scaife said the balances bs roughly taken out showed £3002 to have been received, and only £2201 paid away.) I kept my books regularly. In 1893 I had a booth at the races ; I don't think I made £5 out of it. I received £114, including some board accounts paid to me on the course. I did not net £50 over the Agricultural and Pastoral Show ; I dont know exactly what I made. Mr May said that bankrupt bad shown him an account, kept in a separate book, which showed that a net profit of £80 h.d teen (' made over tbe Show. Bankrupt denied that be had euoh a book. By Mr F. Eamilton: I bought a billiard table and some beer from Hancook and Co» There was a dispute over the table. I paid £15 cish on account; I cannot say that it was on the 20th June, the day I paid my license. I gave the bill of sale, in which the billiard table is included, on the Uth of June. I did not know it was in the bill of sale, it was included by Mr Henry Hounsell, who made the valuation. Mr Hamilton said the facts of the matter were tbat there was a dispute about the table, and bankrupt had refused to aooept it. Bancoek & Co asked him to arrange with bankrupt about it, and on the 21st June an arrangement was come to that bankrupt should take it, and he then paid £15 on' account, but the table was included in a bill of sale given on the 9th June, at which time bankrupt refu-ed to accept ifc. Mr Hounsell sud that the table was fixed and being played upon when he made his valuation on tbe Ist June. Mr T. H. Harley said that bankrupt had not banked any money from 7th April till 31st August. Mr F. Hamilton and Mr Scaife said that bankrupt had made many payments of cash in that period. In reply to Mr Thomas Harley, bankrupt said tbat his children had accounts in the Post Office Savings Bank, but they did not amount to £6 in all, and he had not given them the money. One boy had earned some money for himself by harvesting, but ha did not know how much. Mr S.aife said he had seen the bank books, the total amount was about £6. Mr Thomas Harley wished for an account to be given cf the total amount of wines, spirits, and beer drawn since bankrupt had been in tbe house. .Mr May wished to know if bankrupt could not make an offer. Bankrupt rep'ied that times seemed to be improving, and if he was given time and the rent was reduced, he could be depended upon to do the best possible for the creditors. He could not carry on at the present rental. Mr Shields said that there were not three hotels in Nelson putting through the amount of liquor that bankrupt had done in his trade. Mr Thomas Harley said that the percentage of profit was very high, otherwise people would not go into the business ; he thought it was very nearly 100 per cent. Mr Scaife said that was not borne out by his experience in the administration of such estates; more than one-third profit could not be looked for. Mr C. J. Harley concurred with Mr Scaife, Mr Thomas Harley said thai the arrangement for bankrupt to pay £5 13s per hogshead did not last long, and he had the beer at his own price after. Bankrupt owed for six months' rent, so the rent did not send him to tbe wall. Mr Scaife said tbat from Ihe 24th September to tbe 2nd inst, bankrupt had been keep-* ing tbe house open under his direction, and the receipts in that time had been £18 17s 6d and payments £12 83 3d. Bankrupt said tint this included the day of the horse parade, when £5 was taken. In reply to a creditor Mr Scaife said that bankrup.had kept his bocks systematically, bat the informat on asked for by creditors was not in a tabulated form, and it would take sometime to extract it. Some di3Cufcßion took place upon the valuation of £330 pieced upon tbe furni ure, etc. by Mr Henry Hounßel), and it was considered nearly tbe exact value at a sale. After a further discussion of a conversational niture it was reßolved that the estate ehouid bo offered to bankrupt at 10s in the £, he to bs liven one we.k in which to make arrangements. Bankrupt said that he would try to make the teceßsary arrangements. It wab understood that if bankrupt oould not t;ka up the offer, that tha eslate should be realised by Mr Soaife as soon as possible, ibe mce'.ing then lapsed.