BUSINESS FALLS OFF.

Taranaki Daily News, 16 December 1924, Page 8

BUSINESS FALLS OFF.

PRIVATE HOTEL VENTURE PROPRIETRESS BANKRUPT. LARGE AMOUNT OWING. A meeting of creditors in Hie estate of Lillian Hill, dining-room proprietress, of New Plymouth, was held yesterday 'before the D.O.A. (Mr. J. S. S. Medley). Mr. L. R. Hughes represented bankrupt, who was also present. A financial statement produced by bankrupt showed that £721 17s 4d was owing to unsecured creditors Assets were set down at £lB9 15s, being furniture and ffrtings in the Dcvoaport Hotel. This left a deficiency of £532 2s 4d.

The following is the list of unsecured creditors, all of whom arc o: New Plymouth except where otherwise stated: A. C. Bendall, £l7 4s 4d; Bendall’s, Ltd., £8 6s; J. Lobb, £1 Ils Gd; White’s Ltd., £l3 Os 4d; New Plymouth Hardware Co., -5s €d; Roy, Nicholson and Bennett, £5 12s 6d; May and Arrowsmith, £8 17s lOd; W. Smith, £4 19s 6d; J. S. Watson, £1 19s 6d; Thos. Awery and Sons, Ltd., £1 17s 7d; Bellringer Bros., Ltd., £5 14s Id; R. Hughes (City Cash Storej, £26 Ils HJd; Sturm and Phillips, £4 ls 6d; Herald, £5 4s 8d; Daily News, £l‘2 9s 9d; -Sporting ami Dramatic News proprietors, Auckland, £5 12s 6d; Railway Department, £3 10s; Smart Bros., £5 Is 6d; C. Bond, £27; W.'C. -Henshaw, £25; B. Blackhall, (Lepperton), £2; W'. Horner. £4 9s 8d; V. C. Stevens, £G ,1s 9d; W. G. Mack, £2O 7s Id; A. B. Waldie, £481; City Cash Store, £2 10s Id; New Plymouth 'Gas Co., £1 13s; Willie Wong, £1 15s 4d. Total £721 17s 4d. This amount was subsequently amended to about £784 4s 4d after some of the individual amounts owing to certain creditors had been checked. FEW ASSETS. In reviewing the position, the D.O.A. did not hold out much hope of relief to the creditors. He considered :t was a most unfortunate -position for them, as although nearly £B9O vas owing the assets were few. being only tae value of the fittings and furnitur?, which the bankrupt alleged, Lad been seized by the landlord.

‘T commenced -business in New Plymouth in October. 1923, as lessee of the Devonport Private Hotel, owned by Mr. A. B. Waldie,” stated bankrupt in a written statement. Previous tj this 6-he -had a boarding-house at Vvanginui for two years and more and did well. Her husband assisted her there, but on his health giving way she moved Io ?Jasterton, where she) was a matj-nity nurse for .sixteen years. Bankrupt took over the lease of the Devonport Hotel about a year ago from Mr. Wjddie. At the time she had only £lO capital of her own. Mr. Waldie lent her £3OO, which she spent in furnishing. He afterwards lent her a further £5O and guaranteed bankrupt's account with the I'nion Bank. The bulk of the furniture was obtained from Pursers. Ltd., at a cost of £650. She gave them a bailment for the balance owing. A HAIRD FIGHT. The business was not an established one, the .statement continued, and bankrupt had to work hard and continuously io build it up. She was paying a rental of £26 per month (£6 per week) and employed a union staff, tv whom £IG iper week had to be paid in summer and £7 per week in winter. Bankrupt always did the work of one of the employees, did all the cooking herself and in addition attended to the office and cash desk. Books showing receipts from dining-room and lodgers and expenses paid out to the staff were kept. No wage was drawn for herself, except oufficient money to cover her immediate wants.

The balance of the receipt; after payment of the above expenses were .paid into the bank as shown by deposit receipts which were held. Monthly payment- were made from the bank in satisfaction of creditors. None were paid in tuli. but the various accounts ware reduced by instalment payments.

The business was good in summer months, but the wet winter and the fact that the hotel was in a back street considerably curtailed the patronage. Great loss wan suffered by the fluctuation of custom, which bankrupt found to be the general experience with a new business in its early stages.

Bankrupt then became in arrears with the rent, added t-he statement, but ahe had hoped for the benefit of the coming Christmas season. Bankrupt alleged that a creditor put in the bailiff, and -she immediately left the place, “acting under a senee of panic in so doing.” NO OTHER ASSETS. Examined under oath bankrupt swore the statement produced was true. She had not lent her daughter or son-in-law money since she had been in t-he hotel. Neither had her son received any money from her. Mr. Wald s ' and herself were not partners in the business. She had no other property or money other than that shown in the financial statement, and although hw husband was still alive he had never made her any allowance. No arrangement hud been made for maintenance when they separated.

The DjO.A. pointed out that bankrupt had not made out a detailed statement regarding the true amounts of receipts and expenditure. The booku produced <lid not reveal anything unless a considerable amount of time was spent in going through them. Proper books had not been kept and any of the creditors were quite within their rights to move for a prosecution. He was of the opinion that a statement should be prepared. A motion to this effect was adopted.

Mr. L. C. Hughes eaid he would undertake to see that such a statement was prepared. Continuing, he s-aki he would like to point out that bankrupt wits a hard working woman, and she always conducted the house well and kept a good table. ‘She regretted that she had no offer to make to the creditors.