CASSIN’S BANKRUPTCY.

Gisborne Standard and Cook County Gazette, Volume II, Issue 249, 19 January 1889, Page 2

CASSIN’S BANKRUPTCY.

A COMPOSITION AGREED TO. A meeting of creditors in the estate of F. Cassia was held yesterday afternoon. Pre sent: Messrs W F Crawford, T Chrisp, W O Skeet, J Cassin, T Adams, E Chrisp, J W Smith, E ff Ward, John Allen, Shelton, South, Williams, F. Ball, Finn, Muir, and Lunn. Debtor said he filed because he could not meet his liabilities. He attributed his loss in business to insufficient trade and not having sufficient capital to turn over. The abstract of payments showing he had paid away from Sept. 16, 1887, to Deo. 31, 1888, £4670, was correct. Gave up the dining room, which he had been running since October, 1887,0 n August 22. Lost £328 19s 6d over the dining room. Considered the estimate cf receipts and expenditure monthly a fair one. The estimate was : receipts, £228 Si; expenditure, £155 7a 2d. He estimated the value of the furniture at £llOO. It was secured for £575. Messrs Crawford and Shelton put £450 worth of furniture in the hotel, and some was got on a bailment over everything; the remainder he had put in since, roughly speaking £7O or £BO worth. Had not taken any articles out of the hotel since ho filed. A few days before he filed, he assigned the furniture to Mr Crawford. Mr Crawford asked why a deed of some property, given by Allan McDonald as security for his hotel expenses, was not mentioned in the assets ?

Debtor said he parted with that a few days before filing. Mr Crawford : You led me to believe that you held that as security, and got an advance from me on the strength of it. Debtor: I told you that as soon as I got the Bank squared up, I would see you paid. Mr Crawford ; You increased my account £4O or £5O on the strength of this deed, I want to know what has become of it, I alwaya looked upon that ae security for Mr McDonald's account.

Debtor; Mr John Clark bought it to get hie own account paid, and paid me the balance of £4B.

Mr Crawford: What has become of the £4B!

Debtor : I paid £l7 to the Bank, £23 for wages, and £5 for bankruptcy fees. Mr Crawford: You told me the deed was worth £2OO.

Debtor : I never did, I told you I had a mortgage of £l5O, and there was an agreement that tbe amount was to secure Mr McDonald's board.

Mr Chrisp : Who negotiated the sale! Debtor: Ido not think 1 need answer that. Mr Chrisp: You paid £5 for fees. Did you pay your solicitor anything ? Debtor: I have no solicitor for the bankruptcy. Mr Crawford: Have you no idea of tha amount paid by you for meat and groceries ? Debtor: About £46 per month. la answer to the Assignee, Mr Crawford said he had received £368 altogether from Cassia for supplies, and Mr Shelton Slid he had received £1278.

Mr Crawford asked where the difference between money paid to Mr Shelton and himself and the money shown to have been spent by the debtor—£666 —had gone ? The Assignee pointed out a slight error in Mr Crawford’s figures, which reduced the amount to £527.

Debtor said he had gone over the books with Mr Croft.

The Assignee said* Mr Crawford’s figures were certainly wonderful. Mr Crawford said he had only received £3Bl. Accounts showed that ho had received £278 from August 11: that would mean that he only received £lOO for the previous eleven months. He (Mr Croft) had cheques to show that this was not correct.

Mr Crawford said he had made a mistake in calculating the time debtor had been in the hotel. The real amount received by him was £4Bl, on account of supplies. Debtor still owed him £319.

Debtor: My bank books will show that I have paid you more than that.

This matter was then allowed to drop, the different accounts having evidently been mixed.

| Mr Crawford asked why debtor had made his mind to take the benefit of the Act, seeing that he called his creditors together and made them a definite offer, and why he had not tried to carry out the agreement with his creditors, and not rash precipitately into bankruptcy, when no pressure had been put upon him ? Debtor said he found he could not get anyone to help him, so he filed. He wanted, more than anything, to secure the servant’s wages. Mr Crawford : You did not even allow me the opportunity of settling with your creditors !

Debtor: I did not wish to go out of the hotel burdened with debt.

Mr Chrisp said it appeared that the only asset was the balance of the bill of sale on the furniture, and it was quite clear that the Assignee could not touch that. He agreed that it was quite unnecessary that the estate should have been rushed in'o bankruptcy. He did not blame Mr Cassin, who probably thought it was bast to make a clean sweep of the affair. It would only have required £6O or £7O to pay 10s in the £ to outside creditors. Ho thought the only way to get anything out of the estate was to take it Out of bankruptcy, or else It would he eaten up by solloltor’k costs, He belisved If Mr Shelton or Mr Crawford were to make an offer it would be accepted. If they attempted to do anything with the furniture there would be ligltation and the estate would be swallowed up. Mr Shelton: I do not intend to make an offer. I have lost too much altogether, and do not intend to lose any more. Mr Crawford would like to say a few words about the matter. Mr Casein went into the house at his suggestion. At that time Mr Cassin had practically nothing. He (Mr Crawford) was under the impression from what he knew of Mr Cassin that he could carry on the business and make a paying thing cut of it. Mr Cassin tried hard and paid his way for two or three months up to about February. In February his (Mr Casein's) account began to go behind and from that time till July Casein was behind to the amount of £BO, in the general aooount, and also in tha rent account. On August 1 Mr Shelton and he examined Oassin’i aceoiihts, and decided to giro

another trial to keep the house on, Casein agreeing to pay for his stuff as it went into the house, but this agreement was not fulfilled, and his account was increased by £l2O. In December the account was increased by £5O on Cassin showing him a deed from McDonald which had been given as security. There was something about the deed that he /Mr Crawford) did not like and he told Cassin that he could not pay for his supplies when they went into the house he would have to have a change. He was rather taken aback to find that in addition to Mr Shelton and himself, Cassin had outside creditors to the amount of £l5O, as he had baen under tbe impression that Mr Shelton and he were the only creditors. Told Cassin that he (Mr Crawford) was very much ashamed of having an interest in the house under the circumstances. Told Cassin he would far rather see him take a little bit of the burden on his own shoulders and try to get assistance from oatside. Casein then agreed with him, and called his creditors together and made them an offer, which they accepted. Told Cassin he was getting someone else into the house. When hs brought the man into the' house Casein rushed into bankruptcy, never giving him a cbanoe to take the burden on himself. He (Mr Crawford) was willing, sooner than have any trouble about the thing, to give them a small amount for their debts, and take the assets over, it was either that or let the estate go to the birds of prey Mr Ward: Who are you alluding to as birds of prey ? Mr Crawford: You for one. Mr Ward : I don’t know ; I paid half a crown in the £, and you only paid a shilling. Mr Smith : Who did yon pay it to? Mr Ward : Everybody who wanted it. Mr Smith: Rid you ? The Assignee: I won’t have any persona remarks here.

Mr Crawford concluded by saying that there was something about that document of of Mr McDonald’s which wanted enquiring into. . Mr John Cassin said there was nothing to ’ be ashamed of in the bankruptcy, and as there had been an insinuation thrown out bs thought the matter should be gone into. He had let his wages run on in trying to help his brother, and the other servants were owed wages, Mr Crawford said there was nothing like fair play. He told Cassin the wages would te paid if ho had anything to do with It. They forgot altogether the mesa he (Hr Crawford) was in, and it was hardly fair for Mr John Cassin to ask for £4O wages all in a moment. Debtor said hs had been entirely in Mr Crawford's hands. When Mr Shelton and Mr Crawford came to him and went fully into figures, they expressed themselves perfectly satisfied with the thing. He had not attempted to hide anything, and yet Mr Crawford tried to say there was something wrong about it. When he went out of the house four or five people said he was afraid to let the light of day into his transactions. Mr Crawford asked how the debtor accounted for losing £l5 a week in the bous*. ? Mr Shelton wished to know whether they were keeping the hotel open, The Assignee said at the request of Mr Crawford he had allowed Mr Harding to take possession, and hs was now running it tor the creditors. All the creditors were against the funds being spent in running the hotel. It was then proposed by Mr Skeet, seconded by Mr Smith, that if Mr Crawford make an offer of 2s 6d in the pound, and it bs accepted, the Assignee be instructed to sell the assets in the estate to Mr Crawford. Mr Williams thought it very hard that ha should provide Mr Casein's lodgers with food and then not get paid for it, especially ae in moet oases the lodgers had paid Mr Cassin tor their board. Mr Skeet said be had to supply material and labor, and Mr Smith said he had to do the same. The resolution having been agreed to, Mr Crawford said he would accept the proposal, making one proviso—that Mr Caisin have all facilities given him to make up his books, and show him, or anyone elsa who wanted to see, the position of affairs. He would like this more on Mr Casein’s account than his own. What had been said was not wilfully reflecting on Mr Cassin, who, he found, had always done his best, but he wished to know all about the figures which had been laid before tbe meeting. It was understood that Mr Crawford was to pay the wages due. and expenses in connection with the bankruptcy.