LEASE OF AN HOTEL,

Waikato Times, Volume 109, Issue 18309, 21 April 1931, Page 7

LEASE OF AN HOTEL,

BREWERY COMPANY SUED. TAKING OF ACCOUNTS WANTED. AUCKLAND, Tuesday. In the Supremo Court yesterday, William George Abbott, formerly a hotel proprietor and now a farmer, and his wife, Ella Augusta Abbott brought an action against Hancock and Co., Ltd., brewers, Ernest Davis, company director and William Whittaker Warnock, company director. The statement of claim asked for the taking of accounts between the parlies, judgment for amounts said to be due to the plaintiffs, for damages amounting to £18,500 lo William G. Abbott, and £3OOO to Elia A. Abbott and the reassignment to Airs Abbott of a property at Epsom. The claim slated that Hancock and Company as owners of the Commercial Hotel, Te Awamutu, leased it to Abbott in July, 1917, and sold him the furniture and stock In trade. Abbott paid £SOO In cash, and Hancock and Company took security for £515 for the balance due to them. Abbott carried on the hotel business until October 10, 1917, when lie assigned it to Hancock and Company in trust to carry on for the benellt of his creditors until they had been paid 20s in the £. The business was then to be reassigned to Abbott. Messrs Davis and Warnock were made trustees for the creditors.

Allegations Against Company. Plaintiffs made allegations against defendant company In regard to the conduct of the business after tint assignment and the accounts _rendered to plaintiffs. Counsel for plaintiffs, Air Sullivan, traced their connection with the Ohaupo Hotel and later with the Ngaruawahia Hotel, which was burned down in 1917. After that, he said, Abbott was approached by Hancock and Company to take over the Commercial Hotel at Te Awamutu. The rent was £32 a week, reduced to £IG in consideration of Abbott procuring all bis liquor from the defendant company. Abbott found after two months that lie was going hack, and contlded his position to the defendant Ernest Davis. Airs Abbott had lieen induced to assign lo her husband, to whom she owed nothing, a valuable equity at Epsom, a leasehold property at Pakuranga, and a valuable property and furniture. The inducement was that Hancock and Company were to see that Abbott was not made bankrupt. Ills Honour said it appeared that the real question between the parties was whether the accountkeeping stopped when the lease terminated in October, 1918, or whether it still went on.

The plaintiffs had gone to a lot of unnecessary trouble and made a lot of unnecessary allegations. "I do not know what the action for damages is about," ho continued. “I cannot make head or tail of it."

Returns Disputed,

Mr Sullivan said the £18,500 was for profits Hancock and Go. had received since 1918. 11c disputed the quantity of liquor staled as supplied to the hotel, and said that whereas the profit was shown to be 27 per cent, it should have been 41 per cent. In answer to a further inquiry from His Honour as to the £18,500 Mr Sullivan said the ledger of Hancock and Co. showed a profit of just on £3OOO a year, which would bring it to £18,500 from 1918 lo 1923. Evidence for Plaintiffs. Counsel for plaintiffs called Harry Somers Gulliver, public accountant, formerly in the employ of Hancock and Co., who said that on October 8, 1917, lie had suggested to Abbott that he should hand over the business to witness on behalf of Hancock and Co. and the other creditors. Abbott eventually agreed, and a meeting of creditors was held. A balance sheet from November 9, 1917, lo September 15, 1918, showed a loss of £745. A further balance sheet to' October 10, 1918, showed a loss of £1052, the loss for an additional 13 days being about £3OO. After lengthy legal argument as to tile exact date when the trust commenced Lo operate, His Honour ruled that witness was not able lo give evidence on Hie point as questioned by Mr Fiddes. “Let us get on to something definite,” lie said. “Ask Hie witness another question. If you are not ready lo question Hie witness we will take tho adjournment now.”

PROSPECT OF A SETTLEMENT. C O L'XSE L CON FE R RIN G. (Bv Telegraph—Special to Times.) AUCKLAND, Tuesday. The ease, William George AbliOtl and Ella Augusta Abbott, (formerly lessees of the Commercial Hole! at To Awamulu) v. Hancock and Co., was not resumed to-day, rounsel spending all the morning conferring with a view to a settlement.