LICENSEE LOSES £2,000 IN HOTEL DEAL

Sun (Auckland), Volume I, Issue 223, 9 December 1927, Page 13

LICENSEE LOSES £2,000 IN HOTEL DEAL

BANKRUPTCY FOLLOWS WIFE’S VIEW OF FAILURE “I Have been the worker and if I had had my way his money would have been in a savings bank and not in freezing works shares and useless building sections. I have tried hard to keep his head above water.” » That was Mrs. Jessie Campbell’s despairing account of her endeavours to keep her husband, Peter Campbell, out of bankruptcy. He was a publican, formerly of Maketu and Raglan, and now living in Auckland. Campbell appeared this morning before the Official Assignee, Mr. G. X. Morris, to explain his failure. Debtor's losses were all incurred in connection with the Raglan Hotel. He went there with £2,000 cash and left penniless. He owed £464 to unsecured creditors, £521 to secured creditors and had assets consisting of property valued at £1,200. A nominal surplus of £233 was shown. Campbell said that he purchased the Royal Hotel, Raglan, in 1923 for £2.000 cash. The hotel was in a bad way and needed re-furnishing. His wife lent him £BOO to renovate it and to buy furniture. The rooms were closed for two months in consequence. He alleged that the vendor represented the takings from £SO to £IOO a week, but actually the first month’s receipts were £ 46.

Steps were taken to proceed against the former licensee, but it was learned he had no money and the action was dropped. In 1917 he bought nine sections at Te Puke for £1,220 and had to pay interest and instalments out of the hotel earnings and further borrowing was necessary to meet bills. Eventually the lease, furniture, etc., was sold for £BOO, out of which £4OO was repaid to his wife and other debts liquidated. His wife was now running a boardinghouse and did most of the work, while he did odd jobs. Regarding the sections, Mr. Morris said that he knew things did not turn out as expected at Te Puke and could understand that they were not worth what was hoped. The only creditor present said that, in his opinion, the case was one of misfortune.

The meeting was adjourned sine die.