A BANKRUPT BOARDING. HOUSE-KEEPER.

Gisborne Times, Volume XLV, Issue 3990, 24 July 1915, Page 3

A BANKRUPT BOARDING. HOUSE-KEEPER.

CREDITORS WANT TO KNOW WHERE THE MONEY HAS CONE. ASSIGNEE DIRECTED TO LOOK FURTHER INTO THE .BANKRUPTCY. The first meeting of creditors in the estate of Victor Fiori, boardinghouse keeper, of Ngatapa, was held, at'the office of the Official Assignee (Major A. <L Deere) yesterday afternoon. Bankrupt’s statement showed that the total debts amounted to £.310 19s 9d, while the assets were set down at £l(i (stock in trade £O, and book debts £4B 2s lOd, estimated to produce £10). '

There were present: Bankrupt and bis solicitor (Mir Chamberlain), K. ()• Do Cent and If. E. Bright (representing the Co-operative Meat Company), Parsons, O. Roane, A Scrngg, v .P. I). Thompson, and Russell. Examined by the Assignee, the bankrupt said be bad been about 10 years in Gisborne. He was cooking at a boardinghouse before coining to Gisborne. The books produced were all he kept while in the boardinghouse. He had no bank account, and did not keep'a cash book. All be kept was a record of what boarders lie bad in the house, but did not show what they had paid Idm. The only cheek be kept on his expenditure was Ins receipts. AR his liabilities were incurred after he commenced business at Ngatapa. The Assignee said that bankrupt had been in,, business less than four months, and had apparently gone to the had over £2oO. Bankrupt admitted that this was correct. In reply to the Assignee, bankrupt said that at the time he incurred the debt of £9O he expected to be able out of what lie made from the hoarders to pay off so much a month, lie confessed judgment on Thompson’s account on May 27. He only owed £3 for wages, lie had 2.3 boarders when he closed up. His statement included a full list of bis creditors, as far as lie could remember. The Assignee said that a further claim for £4 10s 2d had since come in from Mr Slone. Bankrupt said he attributed his bankruptcy to the attachment orders which bad been obtained. The boardinghouse was just about keeping tilings square. He did not take any money out for himself. In reply to Air Bright, bankrupt said he was in business about three months. During the iirst month lie had about 43 boarders. lie charged 18s a week. During that month no would have taken about £IOO, £l3O during the second month, and about £.35 (luring the third. Mr Bright pointed out that during that time bankrupt should have taken about £330 to £4OO. in replv to Air Bright, bankrupt said he incurred the Meat C'o.’s debt in May and June. The sum of £O4 was taken by attachment orders. Mr Bright said that bankrupt was then going back at the rate of about £Bd a month, and must have known he was in low water. Bankrupt said he boned to be able to pay the Meat Co. Mr Bright: Yes, as long as vou could get people to give you credit. Air Bright: Have you any record of what is owing to you or what is owing by you f

Bankrupt: No. Air Bright: lon have no record in your books oi your cash transactions s

Bankrupt : No. In reply to Mr Bright, bankrupt said that lie did not Tell the Aleat C <>. bis financial position when be went to them for credit, lie gave an order to the Meat Co. to collect money from bis boarders, but admitted that be bad collected money from the boarders himself after giving the order. Two of the hoarders whose names ho gave to Air Do Cent, secretary of the Aleat Co., were included in the attachment order.

Air De Cent said bankrupt arranged with the Company’s foreman tor credit. and promised to pay at the end of the month. Bankrupt gave witness an order to collect board from Cockindoll. who was paying bankrupt cash each week, and held bankrupt’s receipt. Bankrupt gave him an order on Cqckindoll, when the latter did not owe mm anything for board. Bankrupt said be bad no intention to give the Meat Company an order. He gave Air Do Cent a list of bis boarders, so that the Company could collect from the boarders themselves. He was asked to sign the list, and did so, but did not know that he was being asked to sign an attachment order.

In reply to Mr Chamberlain, bankrupt said that lie lost about £'b() through boarders going away without paving. Mr De Cent : Do you remember telling rue when endeavoring to arrange for further credit that if your back creditors would allow you ro carry on you would bo making £2O a month. M r Chamberlain : How long har e you boon naturalised. Bankrupt: I am not. naturalised. I have not a good knowledge of English. Mr Chamberlain : You therefore, did not know that you were giving tbe Meat Company an attachment order. Bankrupt: No. ~ir Bright : He has a very good knowledge of the credit custom of the country, anyhow. (Laughter.) Mr Russell : Do you think it was a fair thing for you to come up to my shop and ask for a month’s credit when your credit had boon stopped by the Meat Company.

Bankrupt said he had ho intention of beating anybody: be honestly thought he would be able to pay. Mr Parsons asked bow much bankrupt took from the casual boarders. Bankrupt said no onlv took a few shillings. Mr Parsons said that Mrs Fieri bad told him tlfat bankrupt took .-£l2 from casual boarders during the first weoK lie. was in "the house. . Mr Thompson said that Mrs Fieri had told him that £l2 was taken from casual boarders during the first week. Bankrupt said that this was ridiculous. Pie had never handled the money. Bankrupt (to Mr Thompson): Did you ever take £l2 a week when you had the houseP Mr Thompson: Yes: 1 think I did. Mr Scragg asked if the bankrupt did not know he could not pay when he got credit from him. Bankrupt said that he could have paid everyone if it was not for tlio attachment order. In reply to the Assignee, bankrupt said he was now working on the railwav line. He could not make any offer, and had even had to go without his dinner that day, as ne had not a shilling to pay for it. Mr Do Cent said that even if bankrupt had been paid he was losing m trading about £7O a month. mr Bright: It certainlv shows, reckless trading. . . . 'i do Assignee said that it certainly did appear "that there were one or two matters' which had been brought out in evidence which would have to be looked into. . , Mr Chamberlain said that bankrupt, had acted honestly all through. It was only his ignorance which had brought about his failure. Mr Dc Cent moved: . “That the Assignee take legal advice to see it the bankrupt had brought bimse.t within the penal provisions ot tno Bankruptcy Act.” Mr Scragg seconded the motion. The Assignee said that, proofs bad only been put in by two creditors, and ».ue motion could bo voted, on. They could make a rccomniondation to tho same effect’as the mot ion if it was so desired. * .. ~ This course was adopted., and the recommendation carried, Mr Lnane be ing the only dissentient. ;