HOTEL KEEPER BANKRUPT

Taranaki Daily News, 3 October 1929, Page 12

HOTEL KEEPER BANKRUPT

HIGH OVERHEAD EXPENSES. NO OFFER TO CREDITORS. No creditors attended the bankruptcy meeting called in connection with the estate oi Ernest E. Vince, formerly lb censcc of the Alt. ILgmont- Hotel at Alidhirst, when the Deputy Official Assignee. Mr. <l. S- S. Medley, attended to°day. The meeting was adjourned sine die. Bankrupt, who was represented by Mi\ N. H. Moss, submitted the following written statement: — About May. 1927, I took over flic Jhnnont Hotel, Alidhirst, on a lease for a term of five years. I. paid LSOO cash towards the goodwill of the lease, which was £l6OO. the balance of the goodwill being spread over the term by promissory 0 notes. I also paid £2OO cash for the furniture and stock-in-trade, and a further £7O on that account was paid by promissory notes. The £BOO paid for goodwill was* obtained by me on bank overdraft ou the guarantee of Mr. D. J. Malone and Airs. C. Rothery. The rent under the lease was £0 per week plus rates and insurances, I owned a house property in Regan Street, Stratford, and soon after taking over the hotel property I had to rearrange the second mortgage on it by getting Airs. Rothery io advance the money, £9OO. The payments for goodwill,* interest and rent were a heavy cliarge, and took pi’actcially nil my takings. After I had been in the hotel for twelve months the Licensing Committee insisted on certain improvements which were carried out by the landlord at an expen ' of £75. I was sued for the cost by the landlord, and the court held that I was liable to pay. It became quite evident, to me this year that I could not, carry on under "the conditions I was placed in financially, I transferred the lease, stock-in-trade and furniture to the guarantors of my bank account. I also got into arrears with the interest on my house property and the second mortgagee is now in possession. The trade of the hotel was much less than I expected it would be, and this, combined with the heavy payments for goodwill, etc., ca used my failure. I have drawn very little for myself out of the takings of the business and have not wasted any money in extravagant living. I have no assets, and am unable to make any offer to my creditors. I am now employed on wages at 15s 4d per day and have a wife and one child to keep. Examined under oath, bankrupt said he now lived at Eitzroy, New Plymouth, where he was employed by the borough council. He could not make any offer, as it took all his wages to keep himself and family. Secured creditors were owed £l2OO, that- sum representing the estimated value of the security. The amount due to unsecured creditors was £2Ol 0s Bd. to meet which there was £2B 6s 2d in book debts, estimated to produce £l5. leaving a- deficiency of £lB6 0s Sd,

EYES, FACE AND HAND INJURED. COAL EXPLODES AT TANGARAKAU. The explosion of a shovel full of coal when it was placed on the forge fire he was blowing into flame, caused severe injuries to the eyes, face and hands of Jacob Wildermoth. an employee at the railway construction works at Tangarakau. The sufferer was admitted to the Stratford Hospital on Tuesday, and is in a critical condition. It is not known whether the explosion originated from the sudden release of gasses or from some explosive in the coal.