MISSING BANKRUPT.

Waikato Times, Volume 103, Issue 17384, 21 April 1928, Page 8

MISSING BANKRUPT.

A MORRINSVILLE CASE. LEASE OP PRIVATE HOTEL. STATEMENT TO BE PREPARED. (Special to Times.) MORRTNSVILLE. Saturday. A somewhat unusual ease nf bankruptcy proceedings was held at the Courthouse. Morrinsvillp, before the Official Assignpp, Mr Robinson, the bankrupt, Arthur Pickering, not being present, and his whereabouts being unknown. The bankrupt's wife, Mrs Pickering, for whom Mr King appeared, was present, and Mr David Begg. the only creditor, was represented by Mr McGregor. The bankrupt's statement was as follows:-—"On May 31. 1922, I agreed to guarantee the lease of a private hotel at Morrinsvillp, known as the Royal Hotel. David Begg was the owner of the premises. T guaranteed the lease, which terminated on April 11. 1927. At the termination of the lease there was an amount of £970 13s owing for rental. My wife was primarily responsible for the amount, and as T had guaranteed the amount. I was also liable. Begg issued a summons against my wife and myself, and I was compelled to allow judgment to go by default. lam not in a position to carry on with the judgment hanging over my head, I should get into difficulties with my creditors. I have nothing to do with the running of the boarding-house, and during the term of the lease I have bpen working as agent, engaged by Wilson Canham and Co. on commission. My weekly income from this source amounts approximately to £2 10s per week. The work is only available during certain seasons of fhevypar. and at, other times T have been doing odd jobs around the boarding-house. I am physically unable to do any heavy work, and T havp been compelled to carry on with light, work." The total debts were, slated to be £304 ss; assets, stock in trade, £2O; cow, £5; total £25; deficiency, £279 ss. David Begg is the only creditor, £304 ss.

Mrs Pickering's Statement. Mrs Pickering, in examination, said that the statement put in as to the cause of bankruptcy was true and correct. For the first 12 months after taking the Royal Boardinghouse it was fairly full. When she gave up in 1927, there were 13 or 14 boarders; 30s per week was charged to boarders. She banked the money taken in Mr Pickering's account at the bank, and he paid out'cheques. She employed one or two people in the house, and wages were about £2 10s per week. . She left the same amount, of furniture at the Royal that she took over. Mr Pickering paid for the furniture in their new house. She could show the accounts, about. £IOO worth. The piano belonged to Mr Palmer. She had never signed a lease for the present house, as they could not agree to the price. Her takings had been about, £22 per week, and her expenses for labour, rent, groceries, meat, bread, lighting, milk, etc., absorbed the whole of the receipts.

Mr Begg, who had run the house for a short time, admitted that he had made no profit, as his interest amounted to £125 per year.

Official Assignee's Statement.

The Official Assignee said that their business was to find out if Mrs Pickering's statement that she could not make the house pay was correct, and from an examination of the books it appeared scl Could Mr Begg show that the statement, was wrong, and she had done something that she ought not to have done? Mr Begg referred to some money said to belong to the daughter. Mrs Pickering explained that her daughter had purchased a ticket with her money and won £4O, and put it into the Post Office, with some other money that she had, making £52. She had no other assets, and had made no payments that would defraud her creditors. She was always anxious about the amount she. was owing Mr Begg. When they had spoken to him ahout it, and suggested leaving, he had said he would not press them. She had made Mr Begg an offer of £IOO some time ago. She was getting the loan of the money. The offer was not now open. She did not know where her husband was, and had no communication with him. She had four children, and could not, expert any financial help from outsiders, and had to keep her family. Begg never took steps to force payment, and when they suggested leaving, he said "Go on." She wanted to leave four years ago. and Begg wrote and asked them to stay on. She left in September. 1027, There was no talk of legal proceedings. Summonses were issued, proceedings taken, and judgment given oil March 12, 1928. At one time she offered to buy the Royal Hotel for £2OOO, but, Scholium wanted £6OOO, with a £SOO deposit.

The Official Assignee asked for a statement of receipts and disbursements for the last, three years, also an account of goods purchased, an accountant, to go through the books and accounts and prepare a statement.

Mr Begg said he would not oppose a discharge if the statement was satisfactory.

The assets are to be sold