BANKRUPTCY.

Wairarapa Age, Volume XXIX, Issue 8308, 11 December 1906, Page 5

BANKRUPTCY.

ESTATE OP R. J. HODGINS. The fir it meeting of creditors in the bankrupt estate of R. J. EJodgihs, late hotelkeeper, of Mas tertun, was held in the Masterton CourtbouFe, yesterday afternoon, before Mr W. B. Ohennells, D.O.A. The following creditors were either present or represented.:—W.F.O. A., Masterton Farmers 1 Implement Co., Ocilvy and Sons, B. UrorJie, J. Dixon and A. Fraser. Mr B. J. Doian appeared for the D.0.A., and Mr H." C. Robinson for the bankrupt, Liankropfc submitted a written statement, in which it was Bet out that he started business in the Central Hotel, Masterton, on January 23rd, 1903. He paid for the lease of three years and six months, and the goodwill and furniture, the sum of £3,350. lie paid £SOO cash, and gave a mortgage of hfc third share in the Sbamrook Hotel, Wellington, to secure a guarantee account of £BOO, which was also paid on account of purchase money. The sum of £I,OOO remained with Staples and 00. on mortgage of lease and furniture, etc., and Messrs T. and W. Young took a second mortgage for £650. He borrowed the num of £4OO on P.N's. for the balance. In addition to the foregoing nurobase he gave P.N's. for £412 for purchase of stock. He did fairly well the first year or tw,o in the botel,and during that period paid off the stock P.N's. and the P.N's. for the £4OO he had borrowed. He also paid off a considerable amount of bis indebtedness to Messrs Youug and Staples. During the last 15 months of his tenancy the business began to slacken, and be got behind in his financial position. Business continued to steadily deorease, and la February, 1906, Messrs S'ajles and 00. sold all his interest in the hotel to Messrs T. and W. Young, and Messrs T. and W. Young subsequently sold ro the present lessee, and both they and Staples aud 00. realised sufficient to pay off their securities. Bankrupt came out of the hotel practically penniless, and since then, be bad repeatedly tried to get something to do, but had been unsuccessful in respect. He had also uspd every effort to realise on bis interest in the Shamrock Hotel, end pay off his creditors, but that fan bad beep unable to do. Under these circumstances, and on account of persistent pressure on the part of several of his creditors, he bad fceen oumpelled to file. Bankrupt, on oath, stated that bis statement of liabilities and assets was correct. His one-third share in the Shaurock Hotel, Wellington, was mortgaged to Levin and Co., and the only other encumbrances on the property wore incomes of £IOO and £l2 pet yoar, respectively, to two relatives of bankrupt. Bankrupt had tried to realise on his share in the hotel, but was uneu/ioessful. Mr Gaselberg said he understood that the bankrupt had a phaeton, pair of horses and harness. Bankrupt said that they were tfhe properly of his wife. The phaeton was at, her residence in Chapel Street, and the horses Sn a paddock. The D.O.A. intimated that it was his intention to seize the property, as he understood that it was a present from the bankrupt to his wife. It would have been all right to make such a present had the bankrupt been able to pay 20s in the £. Banurupt considered that his wife waa entitled to the property for her services in the hotel; but the phaeton and horses were at the creditors' disposal whenever they wished. , Mr Robinson remarked that if it did happen that the property belonged to the bankrupt's wife and the D.O.A. seized it, he would be liable to an aotion from Mrs Hodgins. He asked the D.O.A. not to seize the property until after the next meeting of creditors, iiud this Mr Chennells oonaented to do.

The meeting then adjourned until a date to be fixed to allow Mr Robinson to cotnmunioate with the bankrupt's brothers in order to get them to purchase the bankrupt's interest in tne SbamrocK Hotel, Wellington,