BANKRUPTCY.

Gisborne Times, Volume IX, Issue 849, 25 March 1903, Page 1

BANKRUPTCY.

MR T. STEELE’S ESTATE.

A meeting of creditors in the bankrupt estate of Thomas Steele, late licensee of the Albion Hotel, was held yesterday afternoon at the Deputy Assignee’s office, when there were present Messrs D. Barry, Oatridgo, Ormond, Cogar, Sheridan, Harper, Wakclin, Davys, Nolan, Pettie, Colley, debtor, and his solicitor (Mr L, Eccs). Tho Assignee stated tho liabilities amounted to £073 3s 7d; assets, book dobts, £221 10s Bd, estimated to produce £150; deficiency, £523 3s 7d, f Debtor, being examined by the Assignee, stated that ho came down from tho coast, to commence hotel-keeping in Gisborne, five years ago. 110 had up to that time been overseer on Waipare station, and was earning £IOO a year and found. He came to Gisborne to carry on hotel-keeping, going to Kaitaratahi first. He commenced with about £6OO capital. He remained thero about 18 months, and made money. He came to Gisborne to the Albion Hotel, having then a capital of about £I2OO. He paid to go into that hotel £2645, £IOOO being for goodwill and £1645 for stock and furniture. He added some furniture, but could not state the amount. He had recently sold out of the Albion. The price was £450 for goodwill and stock, and furniture at valuation. The goodwill, valuation, and adjustment of rates and insurances amounted to £1459 Bs. He •handed that money to his guarantors. Mr Sheridan remarked that tho valuation of tho furniture came to much less than £1645. He thought that more than £IOOO was paid by tho debtor as goodwill. The Assignee asked debtor if ho could account for having given £1645 for the furniture and stock. Debtor said he could not. He was no scholar, and know nothing of books. He thought tho businoss was doing all right. Tho Assignee : I suppose you have no offer to make to your creditors ?

Debtor: No, sir, none. The Assignee: Did you not have some land at Kaiti ? Debtor : No, my wife had some. I did not.

Tho Aesignee said unless the creditors had anything to say he saw nothing for it but to collect tho book debts and wind up tho estate.

Mr Rees, referring to tho difference in the amount paid by Mr Steele and what he sold it for, said that the debtor undoubtedly paid too much to go into tho hotel, and the value of his interest had decreased considerably, owing to the strong feeling in regard to prohibition. Mr Sheridan : There is no doubt about his paying too much to go in, but lie has sold out at about the same proportion. He actually paid more money, but his leaso bad shortened. Mr Bees said that it was close on £4OO that Mr Steele had spent on tho hotel.

Mr Sheridan said the deficiency amounted to about the sum Mr Steele had put into the property. He would have come out about square if ho had not improved other people’s property. A creditor asked what had become of the £I2OO he put into tho business. Mr Sheridan said debtor owed £2OO Kaitaratahi debts, whicli brought it down to £IOOO. Debtor said he reckoned he bad £I2OO clear cash when he started at Gisborne. Mr Rees : You have had law-suits, have you not V Debtor said he had a law suit for £2OO with Mr Joyce, which he won, and lie actually got £4s—the lawyers got the rest.

Mr Oatridgc: He has lost actually about £4OO a year.

~ Mr Sheridan doubted whether Mr Steele had, as stated, made a profit of £4OO a year at Kaitaratahi. Mr L. Rees said the initial step in taking the hotel at the price he did seemed to have been the fatal one.

Mr Sheridan said the lease was too short to offer to anybody. The Assignee : I suppose when you did not sell you did not know what your position was. Did you know you were bankrupt Debtor : I did not. Mr Nolan said he had acted for Mrs Downes, who bad complained when she took the furniture at a valuation of £6OO or £7OO. She sold out to Mr Stcelo for a lump sum.whbh she had estimated to the speaker at £ISOO. How it had been divided afterwards ho did not know. There was never any valuation of the furniture. The only valuation was for the stock, which came to the odd money. Mrs Downes wanted £2500 to walk out. She put in a lot of new furniture, and cleared nearly all the old furniture out. No doubt the price paid by the debtor was too much.

There being no resolution proposed, the Official Assignee said that he would take steps to colleot what book debts ho could and wind up tbp estate in the ordinary way.