IN BANKRUPTCY.

Gisborne Times, Volume XXVI, Issue 2341, 6 November 1908, Page 4

IN BANKRUPTCY.

JOSEPH BURKE, The foliowing statement has been filed with the Deputy-Official Assignee (Mr. J. Coleman) by Joseph Burke, late licensee of the Record Reign Hotel, Gisborne, now bankrupt : _ . . •*I started business m Gisborne in February, 1904, with £OOO capital. I took over a lease of the Record Reign hotel and furniture for £2OOO, with stock at valuation. I -financed the balance with bank overdraft. The business was a paying one, and the proceeds of the business went m reduction of the hank overdraft. In November, 1906, a fresh lease wa.s arranged, and £IOOO goodwill paid for fresh lease from 1/11/06. Business was run profitably until February, 190 S, when an action for libel was brought against me, and I became liable for over £4OO. An action brought by mo in September, ISOS, resulted in a loss to me of about £2OO, and I was forced to scCl out my hotel lease- In January, 190 S, my balancesheet showed value of goodwill of lease at £9OO. In October, when 1 was compelled to sell out, the goodwill was valued at £650, of which only £250 was paid, £4OO remaining in suspense account. This sum is a contingent "asset. The two actions and the compulsory sale of the hotel lease I estimate to have cost mo over £IOOO. considerably more than double the deficiency shown in my statement. I made strenuous efforts to arrange with some of my principal! creditors to givo me time, but was unsuccessful, and owing to pressure from- creditors I was compelled to lile. During the last few years I and members of my family have suffered much from sickness, and! my medical expenses have been very heavy. I have no property other than that specified in my statement, and I have mo offer to anake to my creditors.” The liabilities are set (lown . at £BOB 7s Sd, and assets at £4SO 3s 4-d, leaving a deficiency of £328 4s 4d. The chief creditors are: Mrs. H. M. Burke £129 18s, L. D. Nathan and Go. £l7l 9s 7d, DeLautour, Barker and Stock £130,, Common, Shelton and Co. £64 19s Sd, Income Tax Department £42 3s 6d.