BANKRUPTCY.

Dominion, Volume 3, Issue 787, 9 April 1910, Page 13

BANKRUPTCY.

MR. C. PINNOCK'S AFFAIRS,

MEETING OP CREDITORS,

An adjourned meeting of the creditors of George Pinnock, ex-licensee of the Commercial Hotel, was held yesterday, the Official Assignee (Mr. A. Simpson) presiding. Mr. Herdman appeared for tho bankrupt and Mr. Dalziell for the petitioning creditors.

Bankrupt's Statement. The bankrupt, in his written statement said:—"l have'been adjudicated a bankrupt upon tho petition of Messrs. Gilmer and Maguiro under circumstances which I shall detail further on in this statement. I betievo that, given opportunity, I could have eventually disposed of tho lease of the Commercial Hotel and paid all my debts with ease.

"1. I commenced business in Wellington fourteen years ago in the old Trocadero-in Willis Streot, having then' about £470 in capital. Whilst carrying on. business there, out of my earnings I furnished and fitted out the Bodega, afterwards disposing.of it to.Mr. Brice for, I think, between £600 and £600. -Then there came a fire, the old TroO cadero was destroyed, -and I received about £1200 in respect of insurance upon my furniture and belongings. "2. I leased tho Trocadero Hotel on Lambton Quay from Messrs. Gilmer and Maguiro on March .24, 1902," paying them, by way of premium for the lease, £500; and about £700 for the furniture which was then in it. I added to tho furniture in this place from time to time out of my earnings, and when the big fire took place on Lambton Quay a few years ago, my belongings were in- I snred for £2000. I was paid this amount ' im. res P? ct of insurance after that fire. Iben the present building was erected, and my rent was increased to £25 18s. 3d. per, week. On the furniture of the new establishment I spent the £2000 received from the insurance companies, and a further sum of £2000 out of ray own moneys. When I had the Trocadero only, I prospered. My financial position steadily improved, and I was able out of my profits to buy interests in farms at the Upper Hutt and in properties ] situated in Perth, Mein Street: Kintoul Street, Dixon Street, and Mir'-' 1 amar Junction. The Dixon Street proP®W;was sold at a' profit of £IUOO. AYith the exception ,of tho Perth property all these lands are subject to .mortgages. Tho Trocadero lease has two years_to run. Shortly after I went into the Commercial Hotel,, I.leased the t T£ eT f t ?, one at a rental 1i - , 7d - I* r week - La ter on he agreed to buy for £6000, but he did not-keep up his payments, and went SSSn??' - -* 1 f m yself hable for' iboo for rates and rent which Almond should have paid At the time of my bankruptoy the Trocadero was leased to a Mrs. Cockayne,as a weekly tenant. My agreement with her.can be terminated at any-time.-' . .-'.. "3. Towards the end of the year 1908 I was persuaded to buy a lease of five years ,of - the,. Commercial Hotel. This step has involved me iri my present difficulties. The following are some of the' principal features of the arrangement which I entered into with Messrs; Gilmer and Maguire:-(1) I .was to' pay tor. the goodwill of-the lease £4500. The payment of this amount was to extend over five years. (2) The rentreserved by the lease is £75 per week r but it was understood that,l was to pay £65 per .week;.only-;so long as 1 1-took beer exclusively from Staples and Go: ; (3) The lease was.-to be for •^-period uFfivo years. (4) I was to -pay rates, -taxes, and insurance, and.l was to receive all rants irom the shops connected with w , hotc ,L\ J® J w as to furnish the hotel. (6). I agreed, after I had been m hotel for about two months to pay £1650 for stock in baud and silver and'plate ordered, and other items. I gavea-p.n. for £1650, payable in six months. Since taking the Commercial Hotel. I.have paid Messrs. Gilmer and Maguire £1000 off the p.n. given for 7 6 A O, t!^ 61 '' l have P aia in cash to the DA.il. on account of furniture ordered for the Commercial Hotel by M „°sfs.; Gilmer . and ■ Maguiro about £2300, -and. h have paid £138 in'cash for a piano.- For alterations, additions, and other furnishings I have paid away approximately £500.

;.■■ .The past year has not been a good one in the hotel business, and I now find that when I went into the notell undertook obligations which could hot .he discharged,by mo in the first twelve :months of tho occupancy of the hotel. Calculated at so much per week, the following payments will help to illustrate the difficulty of my po6itiou :—I 2n- e to .P a y f<" rent per week £60, for rates and, insuranco per week £12, on account of goodwill per week £18, on account of wages por week £35 —a total per week of £130. "4. Mrs. Pinnock has'an interest in nine motor-cars. Three of thom wore bought with money which 1 gavb hor about two years ago. The remaining six have,been bailed to hor by Messrs. Inglis Brothers. Mrs. Pinnock has been advised by my solicitor that she should forego her claim'to the three cars first mentioned. She therefore ' abandons her'rights, and agrees to the cars being included in my assets. I have made a full statement about the motor-car business to the Official Assignee and his solicitor, and will gladly supplement that statement if "any further information is required. ..'.■' < "5. On February 5 last, a little over twelve months after I went into the Commercial Hotel, Messrs. Gilmer and Maguire served me with two writs—one for £1046 Is., the amount of a dishonoured p.n. due December. 18, 1909, i given for the,first instalment-of goodwill; tho other for £093 lis., the,balance of a p.n. originally given for £1650. I could not meet these bills, and Messrs. Gilmer and Maguire would not renew them. Thus I find myself in my present position." The Official Assignee said the debtor's statement showed unsecured creditors £14,065, secured creditors £8571. He gave other details, the outcome, being that the bankrupt showed a surplus of £1362 16s. lid. He (the Official Assignee) had called for tenders for the loaso of the Trocadoro and tho Commercial Hotel, closing on Monday next. Mrs. Cockayne., the lessee of the Trocadero, denied through her solicitor that'sho was willing to give up tho lease. Mr. Pinnock had no right to givo tho lease, added Mr. Simoson, and the creditors would havo to" consider' the position.. Arrangements would havo to be made about the arrears of rents. Mr. Fitzgibbon (for Mrs. Cockayne) said his client desired him to state that hor dealings with Mr. Pinnock were perfectly fair and honest, and sho did not wish-to assume a hostilo attitude. Tho Official' Assignee said things were now going smoothly at tho Commercial. Mr. Pinnock had been fined for Sunday trading, and _ would havo to pay the fine out of his own pocket. It would bo well for tho creditors to appoint two of their number to help tho Assignee in regard to tho tenders, and tho lease of tho hotels. Mr. A. M. Lewis was one of tho biggest creditors, apart from the landlords; tho amount owing to 'him was £1075. Messrs. Lewis, T. Madden, and J. U. Turnbull wero appointed to act with the Official Assignee in tho matter referred to. The Official Assignee, in answer to Mr. Dnlsiell, said that Messrs. Gilmer and Maguire desired to assist the creditors in every way possible. Thev had, of course, tho right to refuse the admission of any proposed lessee of whom they, disapproved.

Mr. Hordmnn said when Mrs. Cockayne asked for tho lease of the Trocadero, Mr. Pinnock had not abandoned hope of Bottling with Messrs. Gilmer and Maguire. Tho arrangement was exceedingly favourable to the creditors, but ' if the agreement was illegal, Mrs. Cockayne wonld havo to go out. In making tho arrangement, Mr. Pinnock was acting quite bona fide and in tho interests of his creditors. In regard to the taxicabs, the Official Assignee said that by advice of his solicitor ho had taken possession of three cars, including one' which he was having put into running order. Another car was not in good order, but it would not cost much to havo it put into order. Mrs. Pinnock still claimed six cars, and Inglis Bras, had taken possession of thorn on the ground that the contract had not been carried outMr. bilmor was quit* prepared to find the money for the cars, provided that he would have a first charge on them m the event of sale. The debtor, after being bworn, stated in answer to a creditor that ho was in a good financial position before he took tho lease of the Commercial Hotel. Everything he had now he-had then, ft" property" was worth about £30,000, <ri e - c mort S a ? e s of £7500. i Pvpal'Assignee said he would make full inquiry into the state of attairs as between Almond and Pinnock.

j>-™ e ,. (Jebt:)r sald he received about i'oo from Almond while he (Almond) was in the Trocadero. That was for rent, and ho received about £200 on the mortgage. It was all put into the

Mr. Maguire stated that the arrangement with Mr. Pinnock was that he was.to pay £45.f0r the hotel; the shops were additional. ■-.""■ :_Mr. Pinnock said ho only received £11 a week from the shops, and an extra £2 for a brief period. Mr. Dalziell stated that Messrs. Gilmer and Maguire had been extremely fair to Mr. Pumock. The debtor, in answer to Mr. Dalziell, said that some four months ago Messrs. Uilmer and Maguire advised him. to go out of the hotel, or give them Becun'ty tor the unsecured money. Ho said he would give' security over the hotel, but not over the furniture. At that timo he believed he had considerable equity in the property. He put tho hotel into an agent's hands, '■ asking £11,500 ,or £10,500 (he was not suro which) as. tho .price -for' a going concern. At that time ho was going behind all the timo. The Official Assignee: On January 10, 1910, you'got £1000 from Messrs. .Thomson and Lewis?— Yes.

The meeting again auiournod sine die... • ' ..;'■-