IN BANKRUPTCY.

Wairarapa Daily Times, Volume LVI, Issue 8629, 11 December 1906, Page 3

IN BANKRUPTCY.

Estate of R. J. Hodgins

A meeting of creditors in the bankrupt estate of R. J. Hodgins was held at the Magistrate's Court, Masterton, yesterday afternoon, before Mr W. B. Chennells, D.O.A.

Mr 11. C. Robinson appeared for the bankrupt, and Mr B J. Dolan was also present on behalf of the Deputy Official Assignee.

The bankrupt's position was shown to be as follows :—Secured creditors, £1631 17s Sd;less estimated value of securities, £3000; unsecured creditors, £903 10s Gd ; assets, £70.

Binkrupt, in his written statement, said he had started in business in the Central Hotel on January 23rd, 1903. He paid for the lease of three years and six months, with goodwill and furniture, the sum of £3350. He paid £500 ca=h, and gave a mortgage on his one-third share in the Shamrock Hotel, AVellington, to secure a guarantee! account of £800, which wa* also paid on account of purchase money. The sum of £1000 remained with Staples and Co. on mortgage of lease and furniture, etc., and Messrs T. and W. Young took a second mortgage for £650. He bor-

rowed the sum of £100 on promissory notes for the balance. In addition to the foregoing purchase he gave promissory notes for £412 for purchase of stock. He did fairly well the first year or two in the hotel, and during that period paid oil' the stock promissory notes for the £400 he had borrowed Also paid oil a considerable amount of indebtedness to Messrs Youug and Staples. During the last fifteen months of tenancy business began to slacken, aud he got behind in his financial position. Trade continued to steadily decrease, and in February, 1906, Messrs Staples and Co. sold all his interest in the hotel to Messrs T. aud W. Young, who subsequently sold to the present lessee, and both they and Staples and Co. realised sufficient to pay oil their securities. Bankrupt came out of the hotel practically penniless, and since then had repeatedly tried to get something to do, but had been unsuccessful. He also used every effort to realise on his interest in the Shamrock Hotel, and pay oft his creditors, but this he had been unable to do. Under these circumstances,

and consequent on the persistent ores-sure on the part of several of his creditors, he had been compelled to iile.

Mr _J. Caselberg asked bankrupt if he had not in his possession a buggy and harness, with a pair of horses.

Bankrupt replied that they belonged to his wife.. The buggy and harness were at her residence, and the horses in a paddock. They were a present from him to his wife.

Mr Chennells said he would seize them, as he considered lie had a right to do so in view of the bankrupt's financial position.

Mr Dolan mentioned that if the property, after seizure, was shown to have been that of Mrs Hodgins', the D.O.A. was liable to an action prosecuted by her.

Bankrupt pointed out that he could have sold the said property months ago if he had wished to defraud his creditors. However, it was there for them to seize if they wished. Mr Robinson asked the [>.O.A. not to seize the property until after the next meeting of creditors, to which Mr Chennells consented. An adjournment till next week (definite date to be fixed by the D.0.A.) was agreed upon, bankrupt in the meantime to endeavour to realise oa his interest in the Wei-

lington business