MEETING OF CREDITORS.

Wairarapa Age, Volume XXXI, Issue 9030, 22 February 1908, Page 6

MEETING OF CREDITORS.

ESTATE OF FRASER M. ROSS,

A meeting of creditors in the bankrupt estate of Eraser Mana Ross, publican, of Mauriceville, was held in the Courthouse, Masterton, yesterday, before the Deputy Official Assignee (Mr W. B. Chennells). The following creditors were present:— Messrs J. Dixon, Alex. Donald, A. Larsen, A. Petersen (a director of the Mauriceville Co-operative Store), W. Fisher, F. W. H. Kummer.

Bankrupt was represented by Mr C. A. Powrall. whilst Mr B. J. Dolan appeared for the Deputy Official Assignee. Mr D. K. Logan was present on behalf of the Mauriceville Co-operative Store Company.

The D.O.A. stated that the unsecured debts amounted to £458 10s 4d. The assets consisted of £B7 8s Id cash in hand, and £l2 in the bank, the deficiency being £359 2s 3d. Mr Pownall said a sum of £8 12s 5d in the bank had been omitted from the statement.

Bankrupt's written statement was to the effect that he paid £1,450 to go into the hotel. He detailed several financial arrangements made by him to raise the money to take over the business, which he found did not come up to expectations. The trade was found only sufficient to pay current accounts, and eventually bankrupt was forced to sell out and file, through creditors pressing.

Debtor, examined by Mr Dolan, said he was a livery stable keeper at Feilding prior to taking over the Mauriceville Hotel, in partnership with his father-in-law, Mr Signall. £250 of the £3OO cash paid by bankrupt to go into the hotel was from the proceeds of the livery stable business. Bankrupt had had no previous hotel experience. Went into Mauriceville hotel in June, 1906. Had only kept a bank-book and a p.n. book. Kept no books at Feilding, nor did his partner. Kept no record of cash takings from day to day, paying everything into the bank. Hoffeins, bankrupt's vendor, represented that the takings were about £45 per week. The first month's takings bankrupt found to be less. They were paid into the bank, as were all other takings. Had taken, more than £45 per week, and once as low as £24 per week. Bankrupt could not say what the average takings were during the time he was in it. Expenses for running the hotel wen about £l4 per week —that was for rent, rates, insurances and wages. Five hands were employed at the hotel, and Mrs Ross assisted in the general management. The hotel had been on the market ever since shortly after bankrupt took it over, being in several brokers' hands for £1,700. One offer of £1,550 was made for the business about five months ago, and this was the biggest offer made for the hotel. Creditors started to press after a recent Police Court case against bankrupt. The Mauriceville Cooperative Company first sued, and bankrupt called a private meeting of creditors, to which all but one small creditor were invited. By resolution the meeting at first desired bankrupt to file before he sold, but they altered their minds afterwards. The hotel was sold for £1.350. Mrs Ross possessed only a horse and sewing machine before going into the hotel, and she possessed no separate estate now. Mr Signall was at present paying the rent of a furnished cottage at Seatoun.

By the D.0.A.: He did not keep books because he was unable to do so. Bankrupt could write, but knew nothing about books.

By Mr Logan: About a month ago bankrupt's brother took the chatte's over which he held an unregistered security, consisting of a horse, piano, sewing machine, and phonograph. Bankrupt could not account for the discrepancy between his estimate of what Levin and Co's account would be and what it was. Thought it was about £175, but it proved to be over £9OO. Bankrupt admitted (hat he did not know how he stood from time to time, through having kept no books. The question of whether a lease held by bankrupt from a man named Jacobson should be handed back, on Jacobson agreeing to repay the rent paid k him was fully discussed. Mr Dolan said that he was acting for Jacobson, and would give a guarantee that the costs in a Supreme Court action pending over the lease would be proved for in the estate, and on this being done it was unanimously decided to hand back the lease on the £lB rent being repaid. Mr Logan said it was the general desire of the creditors that bankrupt should be publicly examined. Bankrupt had made, he stated, serious admissions.

The D.O.A. said he had had a good deal of experience in these matters, and he fuund that little good came out of these examinations unless there was a suggestion of fraud. He further said that he would not prosecute bankrupt on the admissions, but of course he would bring the mattur up on bankrupt's application for a discharge. Considerable legall discussion took place over this question, which was finally held over until a meeting held later in the day. At this it was eventually decided to sell the assets privately or publicly, according to the discretion of the D.O.A.