NO OFFER POSSIBLE

Taranaki Daily News, 13 February 1935, Page 9

NO OFFER POSSIBLE

BOARDINGHOUSE PROPRIETRESS. BANKRUPTCY AT HAWERA. No offer could be made to creditors by Mrs. May Laing, proprietress of Wharekoa boardinghouse, Hawera (Mr. M. Niccoll) when she was examined in bankruptcy by the Official Assignee, Mr. C. O. Pratt, at Hawera on Monday. She attributed her failure to lack of capital, too high an overhead and falling number of boarders. Creditors present were Messrs G. Hardenburg, T. Adams, A. Thompson and A. Stevens, and Mr. J. Edmonston, representing Mr. H. S. C. Havyatt and Mr. W. C. Nicholson representing Mr. G. V. Jackson. The amount owing to unsecured creditors was £463 2s 9d. To secured creditors the sum owing was £l2O, less the estimated value of securities totalling £231, leaving a surplus of £lll. Stock jn trade was estimated at £7O and book debts at £35 10s lOd. making the total assets £216 10s lOd. The deficiency was IS £246 11s lid. Unsecured creditors ineluded H. C. S. Havyatt, G. Hardenburg, Hawera, Comerford and Thomson, Hawera, T. Adams, Hawera. Hawera Gas Company, A. Payne, Manaia, and J. Edmonston, Hawera. In a statement Mrs. Laing said she began business on March 5, 1933, with Lily Lavinia Sparks, the rent being £4 10s a week. Furniture was bought from Syme and Co. on hire-purchase, to be maid off at the rate of £6 10s a month; a piano on the same system at £1 13s Id a month, and an Electrolux at 10s a month. She started with £5O cash and

took £SO worth of furniture and fittings into the business. In all she had put £l5O into the business, Mrs. Sparks bringing nothing, except labour, for which she was paid. Business went fairly well for a short time despite heavy overhead. About October, 1933, she became dissatisfied with Mrs. Sparks’ work and conduct and they parted company. Up till October Mr. G. V. Jackson had kept the books and handled the monies received, but from then on Mrs. Laing kept the books, paying accounts as she received the money. On taking over the books she found that the rent had not been fully paid and that some of the household accounts were in arrears. She had had to borrow £SO on an unregistered security from Mr. A. Payne, Manala. In 1934 the average number in the house dropped from 14 to nine, and the result was that payments on the hire-purchase agreements, wages and necessary outgoings took all that was coming in. Mrs. Laing said she found that she was getting into arrears with her household accounts, as well as the rent, though she was keeping up the instalments on tire furniture. Therefore in January, when the landlord pressed for a deed of lien over the furniture for arrears of rent she filed in order that the unsecured creditors might secure something. “The main trouble as I see it,” said Mr. Pratt, “is that Mrs. Laing had insufficient capital at the start.” If she had had more, and sufficient to purchase the furniture on entry, she would not have had to make recurring payments. There does not appears to be any great profits in keeping boarders.” After the assignee had mentioned that

the possibility of a sale of the boardinghouse as a going concern had not been realised the creditors decided that the furniture should be sold by public auction.