IN BANKRUPTCY.

Stratford Evening Post, Volume XXXIV, Issue 26, 24 September 1912, Page 5

IN BANKRUPTCY.

MEETING OF CREDITORS OF H EXRY JAKES, SIABLEivEEPER

A mooting of creditors in the bankrupt estate of Henry Jakes, stablekeeper, of Whangamomona, and late of Stratford, was held in the D.O.A.'s oifice yesterday afternoon. There were present, Messrs Court (Court and CotLiar), j! McCluggage, T." Lamason? G. Morrison, F. Webb, and H. Bookman (A. Hatrick and Co.). Mr. Anderson appeared for the bankrupt. Bankrupt's statement showed unsecured creditors £1.7-3, .secured creditors £903, less estimated value of securities £95-1, surplus to contra £sl. Total debts £476. The stock-in-trade was estimated at £234, book debts £440, estimated to produce £275, cash in hand £l4'7s, furniture £ls, making total assets £355 7s, leaving a deficiency of £l2O 13s.

' The list of unsecured creditors ineluded Messrs Court and Cottier, V\ han ramomona. £l6 2s 3d; A. Hatrick and Co. (Waitara), £7l 15s : ; W. G. Fargio (fanner), £39 Is 6d; William Evans (groom, wages), £65; Samuel Morrison (Toko), £25 3s; Lamason aid Melville (Stratford), £2l lis -id: Owen McAloon (To Worn), £2O; F. Webb (.Douglas), £ll 12s 6d; George Morrison (Toko), £2l; Samuel Mornson (Toko), £25 3s; Dr. T. L. Paget (Stratford), £23 9s. - I In a lengthy statement, debtor said that three- and a Half years ago h( j exchanged his equity in a freehold j farm of about 111 acres at Flint and Monmouth Roads, Stratford, for the livery stables business and chattels a. 1 a going concern, at .Whangamoniona. with the lease and goodwill of the Commercial Stables, Stratford. Tin v duation for the purpose of the exchange was £ISOO. It was a level ex change—nothing was paid for eqita i;y The Whangamoniona stables were sub jeet to a mortgage of £l4O to the Advances to Settlors Office. He was thei in a financial position, but had very little capital, and owed n few small do.bts. Ho took Mr. Charles Beniamir into partnership, but the partner pui no capital into the business. They made an arrangement that they shouh each draw £3'a week, and Benjamii was to pay £1 a week into the bus'nes towards his share of the capital. The> ran mail contracts between S': ration and AVhangamomona and Whangamomoiia and Tahora, and employed gov. i al.men in the stables at from £2 10; to £3 10s per week. He had charge oi the stables at Stratford with a. groom to assist him. The Whangamomoii; stables wore in charge of two men and Benjamin drove the coach. Fo about twelve months they paid theii way, but the expenses were ver heavy. Then they dissolved oartner ship, and debtor took over the bus; ness himself. ~ Benjamin had uotpah anything towards his share of capital a id received no consideration for Id share when he went out. 'Debtor car ried on the business for about nin months. He leased livery stables a To Wera from Mr. O. McAloon at £'" por week, and employed a groom i< look after them at £2 10s per week He continued to manage the Stratford stables, with the assistance of ; gfoom, whilst the Whangamornom stables wero in charge of j two men and a groom drove the coach at £3 10 por week and house free. Matters dh not go well. 'The expenses wore to<, heavy, and he had to pay a very big! price' for the cartage of feed, some times £lO per ten . from Douglas t> Whangamoniona. He also had to ti'ils: too much to his,employees to look at tor the business, and they were some times» carol*"! Srtjd*- fie#eeM. 'A ciie end of the nine months he.wa about £IOO or so in debt. Ho had boot debts against this amount, but the. were very difficult to collect. He wa lired of the business, and exchange the livery stable business, stork am chattels-,., with Mr. John Wylie, it the equity in a freehold farm 6 aoout 7& acres at Omata, includin, cows and stock. Wylie had to pay hin iidii by way of equity,, and gave lib bills for the amount, but he did no dispose of his equity in the ireehot of the stables to Wylie, Bankrup leased the stables to Wylie for £1 o per week. Ho then commenced La.ni mo-, milking-seventeen cov\s, out w u disappointed with the farm, as it di not come up to expectations, and a was not successful. Ho disposed itiie equity in the farm tor an equity i house property at Petone. About tin: time he was £2OO in debt. In tht meantime Wylie was not successiu with the staoies, and these lie too.. over for'£6oo, £350 of which he raiset on second mortgage from the Bank o iNiew Zealand, and about £IOO iron Mr. Newton King. He again manage, the Stratford stables, but on aceoun of the cancellation of the mail con tract he had to give them up, ana wen oat to Whangamomona to manage th stables there. Bad roads and dear feet wero against him, and added to tin: he had to compete with the Bublu Works Department, who were convo.y ing passengers between Te Wera an the 33-mile siding. This meant a goo deal to him, as lie relied principalis on tho passenger traffic and there wavery little in the carriage of mail". H: wife had a long illness, and died, am cue business gradually went from ba» to worse. He had- struggled <n, but was forced to file. He summed up tin reasons for his position thus: Compe fcition from the Public Works Depart ment, heavv expenses of stables, am fearful condition, of roads, high pne for the cartage of feed, having to gw too much credit, inability to read o; write, expenses through long illnes of his wife, loss of horses owing t. accident (he lost eight horses in 1911) and lastly, the wet seasons. The D'.O.A. said the statement of accounts was unfortunately incomplete. The state; of the account of tin houses at Potone was not yet known there might or might not be an equity There was also interest due on t.n mortgages, "of which he had not par ticulars. He understood that the n.ort gigors had given notice that the chat tels were to lie sold first, so that ther was-little hope for the creditors. Tin book debts and cash in hand (£l4) wa: all there was for the creditors. Th stables were boneless. Referring to th bankrupt's books, he said they wer in a bad condition, and had not beewritten up for eighteen months, an; some of the accounts were perfectly aood. There was a question wbetbe bankrupt exercised proper control care and caution, over his but they must remember that he war illiterate, and could neither read nowrite.

Tn answer to the D.O.A. dehtor sai; £lB was duo to •him at the end of thi month for mail contracts. The D.O.A. explained that Mr. Jos pph McCluggage. as guarantor for Hv •nail contract, had had for the las' month to take over the contract, The D.O.A. : Did Renjaroin eo mfc of the partnership of his own accord? Bankrupt: No. The D.0.A.: Did yon have any sqimrinc np? Did ho s-im.ply walk out? Bankrupt: Yes: he walked out. The D.0.A.: What was the reason he left? Bankrupt-: T thought T was not treated risrht, and T asked him po out. Tie had no money in it We had

no row, or anything, and he was quite willing to go out. Ho came on again, but this time on wages--£3 10s a week and found. I found him in "tucker" at both ends for a time, and then at the Whangamomona end. The D.O.A.'questioned as to the weekly earnings of tho coach, but could not get any definite answer ,rom the bankrupt, who had no definite knowledge on the matter. It was a condition of the contract that (be coach had to be fun; he could pack in bad weather, but bad to get special per-

mission. , . Tho D.0.A.: When did you (mt; vou wore getting in a bad way? ' Bankrupt: About twelve months ago'. I was not bankrupt two \canago, if 1 could have got my book debts in. in answer to a sanes of •|U^ft v ms, bankrupt admitted knowing not'n ig if how much His man at Whanga moment had taken in wages, or what he (bankrupt) now owed him. The 'D.O.A., addressing the c d.tors, said he knew the run of the country—the Court knew it better than he did—and he was satisfied in his own mind as to the cause of the bankruptcy. . ■ Mr. Court: Do you think t was a fair thing that you should have made innumerable trips across the road to the hotel, on your creditors' money I' Bankrupt: l'never went unless some ,'kxlv asked mo. Mr. Court: You mean you. got a'i your drinks free i Bankrupt: I won't say that I d'd that. What I drank wound hurt; no one. You can't accuse me of that. Mi Court. I took it simply for tho si;k Vf business. Mr. Court: You mean to v for that For the past few months >ou have paid for no drinks? Bankrupt: More than half of teem vere on the cheap. Mr. Court: What about when you and Evans went over together? Bankrupt: It was very seldom we vent over together. Mr. Court: I have seen you and .Evans going over together half a dozm times a day. Bankrupt: You must have aad n-.-thing else to do than watch us. Mr. Court: And now do you think :t was a fair thing to purchase nea«, goods on credit right up to the time of your filing? Bankrupt: These were on y small matters. Mr. Court: Ours amounted to £l4. laid from another creditor, on belmli if whom I am speaking) you purchased to the extent of £2B. A discussion ensued as to Mr. E• • ins' claim on the estate ,and ihe opinion was expressed that this oroditoi should show why he was justified in making this claim on the estate. Mr. Evans, being duly sworn, gave evidence relative to bis claim for vages. He stated that ne had sole marge of the books, and ihis war, < n< af his duties. He did the best he could with them, and to the best of his ability. The D.0.A.: What time did y-o spand on the books? Mr. Evans: I can't say; it's impossible.

Continuing, Evans said he sometimes put in seventeen hours a daj ■it the stables, and averaged ovei twelve. But, he did not average more than one hour at tho books. He was never directed to send the account! out by Mr. Jakes, and was iji-nn- c ! i footed to confine his attentions r.ori ;o the books and less to tiie stables. Re had been told by Mr. Jakes tha/' the money should be got in. He knew that the books were as much as 18 months in arrears, in the case of some iccounts. He could not say who took the daily .takings. (Exclamations from creditors)/ Bud he himself _ jotted down in a note book what takings he. took. Tne D.0.A.: Where is the note

,oo k? Witness-. At home! The D.0.A.: You took some of tin jash and Mr. Jakes took tiie rest? Witness: tf.es. , , The! D.O.A.': In what hook was tin noney entered tiiat Mr. Jakes took r , Witness: It was not put in tlu oook.„ Mr. Anderson: But you kept tin jooks, and you know how to keep „aem. You have had a good educa'.ion. Why did you not see that tliej ,v ere entered '& Witness: Mr. Jakes put them u; the safe and 1 put the money in tin jank. I was not there all the time. The D.0.A.: Did you think it wa> a right system not to enter them iv the boolvs? Witness: I know it was wrong.:,! would not enter them because i did aot know from where they came. The D.0.A.: Why did you not ask Mr. Jakes? Witness: I was doing my othe, ivbrk. 1 can't answer these ques

Clous'. Mr. Anderson: During the pas. twelve months the boys have been doing more work than you have. Mr. Evans : Oh! The D.0.A., to Mr. Jakes: Was he rushed off his legs with work. Mr. Jakes: :\o! Evans refused to state that he wa: overworked or otherwise. The 13.0. A. : I have never seen any great rush at those stables. I line: 7our evidence most unsatisfactory. Have you spent much time at the. hotel during thelast four months? Witness: Xo! The D.O.A. : How many times a day?

Witness: I may go over forty times a day. (Laughter.) But may go ovei twenty times and never have a drink. L had to take the cordials over. The D.0.A.: Did you spend much money at the hotel? At'this stage the D.O.A. desisted in his examination. Mr. Bookman moved that the meeting l)e adjourned to a date being sub ject to the result of certain negotiations. Tnis' was carried, and the meeting iccordinglv adjourned.