IN BANKRUPTCY.

Manawatu Herald, Volume XXXI, Issue 453, 27 April 1909, Page 3

IN BANKRUPTCY.

ESTATE OF SPARKS PHIDP. A meeting of creditors in the bankrupt estate of Sparks Philp, hotelkeeper of Foxton, was held at the office of the D.O.A. on Friday. Creditors present were Mesdames Philp and Cullen, and Mr Moore (Foxton).

BANKRUPT’S STATEMENT. Bankrupt iu his sworn statement said that his bankruptcy was mainly due to a judgment for about obtained agaiust him in the Supreme Court at Wellington by Grace Eogan, for alleged assault. The case against him in the Supreme Court amounted to and on a majority verdict, damages was given with costs This judgment alone was enough to make him insolvent, but further, the lease o! the Manawatu Hotel was represented to him by the agent, Mr Pearce, as having two years and one month to run, and on that understanding he gave for it. It was only after the sale was completed that he found the lease only had 18 months to run. He paid the purchase money under protest, reserving the right to issue a writ against the vendors for misrepresentation. This was accordingly issued against Mrs Cullen and Pearce (her agent) for £soi, and the case will come on at the Wellington sitting of the Supreme Court iu May. This claim was not inserted as a debt because the result was uncertain. Owing to this misrepresentation, he paid out to £SOO more than the lease was worth, and this contributed to his insolvency. The lease of the hotel contains a clause for its forfeiture in case of the bankruptcy of the lessee. In addition to other difficulties, he was twice summoned by Mrs Caroline Cullen, from whom he bought the hotel, for two amounts, nsßd and costs £2 6s, and £sz 33 9<i and costs £2 , for which judgment was entered. The first claim was paid into Court under distress warrant and by order of the Magistrate to remain in Court until the Supreme Court case against Mrs Cullen is decided. The other judgment was included in the financial statement.

For 14 years prior to going to Foxton, bankrupt carried on business as a butcher in Wellington. He was started in the business by his wife, and she retained possession of the funds throughout. The business was carried on by him, on behalf of his wife as owner of the business. When he took over the hotel he was quite solvent, and Would have been so, but for the facts before stated. He was unable to make any offer to his creditors, as he was absolutely penniless, as all the money lost in the hotel business belonged to his wife. The hotel had since been sold for £770 to Mr Hadfield. Mr McGrath said that bankrupt’s case was the hardest he had ever known. Before being proceeded against by Bogan, he was in comfortable circumstances. Bankrupt asserted positively that he was not guilty of the assault, and he (Mr McGrath) was convinced that this was the truth. A jury had seen fit to award damages and costs amounting to about and as Philp had been unable to meet the amount, he had since been declared bankrupt on the plaintiff’s petition. If bankrupt had been given time, the receipts from the hotel were easily sufficient for him to pay the amount off and retrieve the position, but as it was, he was a ruined man through sheer bad luck. The D.O.A. said he would not continue with the case against Mrs Cullen unless the creditors guaranteed the costs. Mr Moore said bankrupt’s position was solely due to misfortune, and he moved that his discharge

at the next Palmerston sittings of the District Court be recommended. Mrs Cullen seconded, and the motion was carried.