CASE OF ILL LUCK

Evening Post, Volume CXII, Issue 56, 3 September 1926, Page 8

CASE OF ILL LUCK

PRIVATE HOTELKEEPER'S VENTURE UNFORTUNATE MORTGAGE ' TRANSACTIONS. , A meeting of creditors in the bankrupt' estate of Mrs. Lizzie M'Millan, boarding-house proprietress, Eastbourne, was held to-day; Mr. S. Tansley, Official Assignee, presiding. 'The secured creditors were:—A. Dunn, solicitor,' £1100; W. Smart, pawnbroker, £2350;' State Advances Office, £954; Radford and Co., £140. The total value of securities was: £4544. The unsecured creditors were: Picot. Bros., £10; Brandon, Ward, and Hislop, £19; Thompson Bros., £22; Walling,. £20; Cowan.and Palmer, £36; F. de J.,.Clere, £75. The estate.showed a. deficiency of. £610. In her sworn statement, bankrupt said that in 1918 she bought a property, on which..the. Eastbourne Hotel is situated, at about £600, and in 1919 built a garage for £100. In 1922 she paid the section off, and then decided to build the hotel. Mr. Clere prepared the. plans and specifications, and called for tenders for the building. The lowest tender was for. £3188, by Mr. Fisher, who constructed, the building. . Mrs. M'Millan obtained an advance from the State. Advances Department for. £1000, and an advance from Mr. Alexander Dunn for £1100, but when the State Advances valuers examined the building the Department refused to pay • out the money'as it was stated that the building was faulty. Mr. Fisher, sued, bankrupt, and Mrs. M'Millan lost the case. In order to pay the judgment, Mrs. M'Millan raised another mortgago from Mr. W. Smart for £2350. - There were a number of smaller creditors. The second mortgagee was now exercising his power of sale, and in fairness to her other creditors, bankrupt felt bound to file her petition. Mrs. M'Millan said that her other creditors had been very patient, and she felt confident that had the second mortgagee waited till after tho Christmas season she would have been able to clear all her liabilities. She attributed her failure to the bad. seasons, consequent on the.infantile paralysis epidemic, the Exhibition' periods, and (she, alleged) to the bad workmanship put into the building, which rendered part of the building practically'useless. . In reply to questions, bankrupt stated that when sue started originally she had £4000; and all of that had now gone. In the course of her building and business operations the sum of £1100 was borrowed, but she had only received £650 of that, amount. She had, she asserted, paid £100 procuration fee for obtaining .lie money.. Mrs. M'Millan gave particulars of her borrowing and"_n6rtgage'"tra_isactions. Mr." C,; A. Treadwell,' who appeared for bankrupt, said there was no chance of Mrs.' M'Millan being able to make any offer. Business during the winter months. *faa poor, and Mrs. M'Millan had had a desperately bad time. The only suggestion counsel could make was that an investigation bo made of the various mortgages and the amounts paid under them. - Mr. S. Tansley (Official Assignee) said he was of opinion that the borrowing arrangements were tho cause of the whole trouble from the start. Personally, he thought bankrupt had had a "rough spin" owing to the mortgages. He did not seo. that anything more could be done at present. The meeting was adjourned sine.die.