MRS. COCKAYNE AND HER CREDITORS.

Dominion, Volume 5, Issue 1248, 4 October 1911, Page 8

MRS. COCKAYNE AND HER CREDITORS.

—. — EXPRESSION OF SYMPATHY. IMMEDIATE DISCIIAKGI-' TMXOMME.N'DEU. A meeting of creditors of .Mr-. Kllon Cockayne, bankrupt, wa.s hold yesterday. The Officuil As.-igiK'O (Mr. Sin:ji.-oii> presided, and thorp were prevent Mcvwr.-. Fleming Eos?,' W. .f. Slater, Y\. .lonmii, Hoilipon (Cioorje ar.d Ker.-'.cy, and Sims Hardware), 0. Oldham (Kwlricr Lnujidry), W PI. Gilford ("Now Zco'.r.cd Times"). M. Sea Ist, G. Xiu-h, .1. W. Ltcade, and W. G. Xieliolls (J. Smith, Ltd.). Mr. \V. n. D. 801 l append in the interests of the Official A. ; .-.jgnee, Mr. K. C. Levvcy represented tho bankrupt. and Mr. P. L:-vi the Sydenham and Suburban Money Club.

Tho estate is indebted lo unsecured crc-ditoi-3 to the, extent of J:GOS7 ()•:. ldd., against which are set amounts totallios .£7O 3s. fid. —stock-in-trade r„i Tr-nc-iiilrro, .£SO; book debts of ,C2li:l 'Is., c-fii-i.ifed to produce ,£2o'; and cadi in hand, 3s. fid. Among tho unfj-ciiTed creditors were Oiiyon Seater and Co., .£75 Hs. 3d.; W. JI. •lame?, «£"2!) lGs. Id; 0. W. Oldham, ,£111!)«; State Coal Depot, ,C 22 9?.; Dfrk-wcn (butcher), c £3:s 125.; W. Ilurccmb and Co., ,£l9 Ss. 6d.; "Xew Zealand Times," ■£lli 10s.; George and Kersley, ,£IS Is.; Jes.son and Co., ,£22 lis. 2d.; G, Xash, Xl 7 os. Gd.; Fleming Koss, .£2O 55.; E. C. Lovvey, «£l(i 155.; Ridley and Co. (in liqiiitl.ition), <-£12 ISs. Oil.; .James Smith and Co., Otago Moat Co., ,t')G 13s. id.; Fitzgibbon and Perry, .£1") 135.; Gilmer and M'Guiro, .£SO; Mis. ]j. ileii(lor>:r., .£ls (all the foregoing aTe of Wellington) ; Official Assignee of Geo. Pinwte's estate (Supreme Court -judgment), ,£5lB 17s. 5d.; and Sydenham Monev Club, ChristchuiT.il (Supreme Court judgment), JiSOCO. There-ltero no secured creditors.

i Business Transactions. In a statement, presented to the meeting Sir?. Cockayne said that she started iu busi- • ness over, twenty-five years ago as aboard-inghouse-keeper. In 190.3 she lve.gt into ' the Leviathan Hotel, C'lirisfehiirch, which was built for her by Mrs. A. J. White. Of this she had a fifteen year.-' She furnished the whole of the building (about 100 rooms) 011 the hire-purehr.se system, at a cost- of about <£2500. By 190S she had cleared off all but X7OO. In 1908 the business of A. J. AYhite's estate required it to bo wound up. and she was called upon (0 find this <£700, and she then came into touch with the' Sydenham Money Club. Prior to that date' she had done very well in the hotel, and out of her savings had purchased two farms for <£1450 each, ono of twenty acres and one of 18.! acres. She stocked the farms and furnished their dwellings. She valued the farms at <£'80 an acre, each'. . On uno she had paid wC3SO, and 011 Hie other X 250 cash. ' The balance of the purchasemoney was on mortgage.' The stock was .clear,_aud when 'willed 0:1 to clear off the ~£7OO owing for the furniture, she approached the Sydenham Money' Club, and arranged to borrow up to about <£1100. The club was. to pay oft the <£700 edd and other accounts amounting to about JMOO. As 1 a' security' the club took a transfer of the bailment over the furniture, and she gave them a second mortgage over' the two farms, and a mortgage over tho hotel lease .and furniture. The interest was to be <£10 per cent, per annum. She was to pay off .principal and interest Inpayments of .£l2 a week. She had also a current account with the Money Club. Her account was sometimes large, and sometimes small, but at 110 time did it escejd <£-100 D,' which she maintained was paid off by her, although v,-lien she went out of the hotel the club claimed about <£5050. She always- paid up the weekly <£12, and at no time made aav default to the club. In October! 1909, 'she was informed by the Money Club that thevhad a purchaser for the leviathan " Hotel at <£3500, and they wanted her to sell to this purchaser, and ;o clear off any monoys owing to the club. After discussing' the "matter with them, she refused to sell, and from that tiine the club did its best to harass lior and wreck her business, and at last began Supreme Court proceedings for her ejectment from t!:o hotel, on some wrong ground oi alleged default. ' She had, at the iclub's request, signed numerous documents, and she could not possibly remember the contents', but she was entirely unaware that she had in any way "made a default, and the club was more than well scciiml. She refused to go out in spito of the fiction brought by the club, until, in December 1909, she was informed that if ,'ilic gave up possession quickly everything would be squared up and settled' and that after 1 all accounts had been paid and adjust•nt'ents made, there would bo n balance of about <£1000 coming to her, which she would get on the final • settlement. Ou that understanding she went' out of pos- ' session.

Further Troubles. After leaving the Leviathan Hotel, and while waiting the payment's expected, she i'ceoived a letter from' Mr. Pinnock ask-ing-her to , take; over the_ "Trocadero," Wellington. She came to Wellington, saw the place, and agreed with Mr. Pinnock that she should take the place furnished, she relying on his representation that everything was complete and in good order. Therefore, sho signed the agreement. On May 18, 1910, she took stock and found the linen, etc., very incomplete, but was assured that the niattc-T would be put right. She took possession on March 23, 1910. The first time it rained she found that half the rooms leaked, and also most of tho rooms were infested with vermin. Between tho leaks and tho vermin the greater part of the rooms were empty for months. She had the building cleansed of vermin at her own expense, but nothing was done to remedy the leaks till December, 1910, when the owner of tho building took over the lease that had been granted Mr. Pinnock. During that time flie had nothing but expense, which should have been Ixirne by Mr. Pinnock, and her losses, owing to dirt and leaks, sho estimated at some hundreds of pounds. Owing to th'sa losses she was unable to pay up the rent duo to Pinnock's estate, and after lengthy attempts to settle (he matter amicably, the -Official .Assignee of Pinnock's estate proceeded in the Supremo Court against her for this rent. She lodged a claim for the damages through dirt and leaks, but the Supremo Court decided against her claim, and gave judgment against her for the rent aud' costs. Owing to this judgment and these losses she had got behind with her ordinary payments, and it was (o these- facts she attributed her bankruptcy. In tho meantime (after the above case had been decided against her) the Sydenham Money Club- suddenly issued a writ against her foj- over =65000, on grounds that were, in her opinion, absolutely unfair and wrong. She instructed her solicitor to file a "defence, but through lack of money was unable to go further and tight the'action. The club obtained judgment by default. She honestly and truly believed that tho club owed her at least ,£IOOO, and possibly more, and an examination of the accounts from the beginning would show that. Had she not expected that money she would not hive come lo Wellington and started in tho "Troeadero." As soon as bankruptcy proceedings were begun against her she informed the lessors of the "Trocadero," and they cancelled her agreement for lease. Now she had no property on which she could realise.

What the Meeting Thought. The Assignee said that, in justice ti her creditors Mrs. Cockayne should have placed the position r>f the Sydenham mntter before them. If what, flic said was correct, she had good ground for action, and the creditors might have recovered. He did lint know that anything could bo done now.

Mr. Bell: "She seems to complain that io was unfairly treated by tho Assignee.

. . . . 'Die rent was reduced on this account (her complaints about bugs anil leaks), and she didn't pay up then, and when she was sued she raised a counter claim . for damages, but, of course, we succeeded.".

Mr. Levvev: "She still maintains that her dispute was an honest one."

Mr. -Levi said that. Mrs. Cockayne's statements regarding the transactions with the Sydenham Club were disputed, nnd someone remarked that an' investieation of the books would clear up everything.

Mr. Levvey said that he had ask'ed Ihe club if they would let the matter he Tnvestiaated from the start, and thev had rcnlied in the negative; they would permit it only from the. time, of a confirmation.

'L'iio Assignee said it. wa.s for the creditors U'i say whether they would or would not wowii the matter of tho Sydenham Club, it would be the only asset. As

far as his expedience of the "Trocadoro" wont, h<* did not think it was worth anything. .Mrs. Henderson (bankrupt's daugiitf'i'K In* believed, had taken over a fresh lea**' at i\ lower rental. Mr. Lewey: "liven now it is 50 per cent 100 high." Tim Assignee; "And Mrs. Henderson is not In pay rates which is a saving of «£lßfl to ,£jfl|) :) year." r J'ho As>i«juoe psked if ho should take a opinion (jii the. Sydenham Club irntUr. A creditor: "Was the place (the "Levj.nthan*") paying when you cave it up?" Mr?, Cockayne: "1 was in ?. better position then than at any othor time." A creditor: "It seems to be that the uunvin has-been robbed. Why didn't you Mrs. Cockayne: '*1 hadn't the mouev IV Mr. Levvev. "Wo filed o defence aliening fraud." Mrs. Cockayne was sworn. She was r|tie>tio'ied by Mr. Levi. .Mr. I.eyi: "Had the Sydenham Money Club a bill of sale over your furniture?"

"Wore there a large number of articles ill the bill which wi.to not in tho house?" —"When 1 left tho house it was left to anybody and everybody." "Do you deny that you took anything trp.ui tho house:"—"Yes; not a stick. .12von my bedstead I carried about . . . . tlioy took from me." "Do v-:u remember making a statement to anybody?"—" No." "Do you know Mr. Frank O'C'onnell?" "Is that a private detective? Yes." "Did you tell him that the. creditors were very slow: that the missing tilings were within 200 yards of the house?" — ,tlo suggested that to me." Jlr. Levvey: "It is a direct allegation of theft against the woman!". Mrs Cockayne: "There was only ono little thing, and no man liviiur will got that. It was a little plaque of Bobbie Burns given me by my daughter, and I brought it out and brought tho hammer to. a:td said that if lliev got it they would Ret it in pieces." Mr. Levi: "It is not about a little thing like that I am inquiring." Mrs. Cockayne:' "Well, that is the only tiling. I should like to be a man for some of these things." Mr. Fleming Ro?s: "Did you take any money when you went out of the Leviathan "Xo." "How did you pay your passage money up here?"—"l borrowed it." "It was subscribed by your boarders?"

-"Yes." Tho Assignee: "If they didn't take stock of the goods in tho hotel. at the time, whatever is missing they are responsible for, not Mrs- Cockayne." A creditor: "Dees this gentleman (Mr. Levi) suggest that the lady took the things av.-a.y?" Mr. Levi: "I don't suggest anything." Tho creditor: "It is a cowardly' thing. You caii suggest a thing by insinuation. It is si dirty contemptible way, and if he can't substantiate what he says ho ought to be checked." Mr. Levi (smiling): "I put a perfectly fair question in a fair way." Mrs- Coekavue.: "I am not blaming the gentleman; it is tihe club." Mr. Fleming lioss: "The position is that Mrs. Cockayne thinks she has a good claim against the Sydenham Club. I don't think it is worth spending more money on tho matter; let it drop. Mrs. Cockayne has suffered a gocd deal, and we all sympathise with her. I have known her.for a good many yews, and she has always borne a name most wo-me.-j would be proud of. I move.—'That the creditors present express' full sympathy with Mrs. Cockayne in her misfortune, and recommend her for immediate dis-eliarje.'"

Mr. No.sli seconded the motion. A creditor remarked jocularly that li supposed Mrs. Cookayno was the fir: woman . who had ''beaten the Assignee. She r.ivc liira a ran for" his money. Mrs; Cockayne: N "It'-would be a pjoo thin? if everyone eot a run for" the: llinnO.T," Tho Assignee: "I think it is a are; pity you didn't tell' us something aboi this Sydenham Money Club matter, Mr Cockayne. Wo might have done soim thir.j if you had."' Mrs. Cockayne: "Well, if you had cive me any encouragement I would have do.: £0." ■ ■ The motion was carried unanimous!,?.