GOODWILL IN HOTEL PREMISES.

Dominion, Volume 3, Issue 847, 20 June 1910, Page 2

GOODWILL IN HOTEL PREMISES.

EXPLANATION BX A MAGISTBATE,

(By TeleEra-nh—Press Association.) Hastings, Juno 19. At tho Magistrate's Court, Hastings, oa Saturday, Mr. M'Crtrthy, S.M., made an explanation regarding the statement made by him from the bench on the occasion of tho annual meeting of the Hawko's Bay Licensing Committee. He, said: "I wish to make a slight correction of tho statement mad© by me last week aa chairman of the Hawke's. Bay Licensing Committee. The statement made was that tho children of. certain widows had been deprived of goodwill ' in certain hotel premises. This was not strictly accurate, Tho facts are that somewhere about the 7ear 1898 a hotel was taken up by the husband of a widow, at a rental of about £3 per week. Then came tho floods, and, as a coneequenco of tho damage done, not only to the hotel but to-tho district, the rent iva'a reduced. Shortly afterwards the owners were compelled by tho Licensing Committee to rebuild a portion of the premises. Afterwards the rent was raised trom time to time until it reached MS to .£9 a -week. During the whole tinio there was no lease, and all tho interest the husband, and subsequently his widow, had in tho business was a monthly tenancy. To that extent, and to that extent alone, would it be correct to saythat there was no goodwill. It is, however, within my own knowledge that tenants with monthly tenancies have sold out a goodwill, finding persons willing to take the business on'those terms. After the widow's death the executors had arranged to sell out, including furnituro and goodwill, at somewhere about. .£SOO. The owners intervened, and pointed out that there was no goodwill, and the sale -was not completed. That transaction consequently fell' through. Ultimately the owners" leased the premises to the person with ivhom tho executors had been in treaty, and the executors only got about .£l5O for the furniture. Tho Licensing Committee wished to emphasise two things: First, that persons, who carried on or created-the business should be the ones, and the only ones, entitled to goodwill; and, second, that by unusually high rents and premiums and serious disabilities licensees of tied houses arc under, there is strong temptation for licensees to carry on illicit trade, and for owners to wink at that trade. As matters now stand, in order to meet, their financial engagements, licensees had to push the sale of intoxicating liquors far beyond legitimate limits. From these two points, the committeo did not recede."