The Hawaiian gazette., 1886-03-02
Examination in Bankruptcy.

On the 18th INST. His Honor Judge Preston held
an examination, in the Intermediary Court, Of the
senior partner of the collapsed firm of S J. Leyey
Co., formerly doing business as retail grOcers on
Fort street. of this city, and who with but little
warning closed their doors, on September sd as
insOlyeut debtors to the amount Of $4,000
At the time there was considerable comment
among business men and others relative 10 The
sudden failure as, but short time previously
new partner had been added to the firm who was
stated 10 have placed $500 IN cash to the credit
side of the business.
5. ]. Levey. the aforesaid partner, on this exam
iuatiOn testified that he was member of the firm
that be arrived here, on the Islands In August!
1879, and first worked q luna on plantation at
$50 per month. He afterwards became clerk in
grocery store, and added but little money TO his
savings never having more than 500 or 500 to
gether at any one time. Later on be bought out
the business of the store that he was employed IN
paying bonus of $1,000 settled by payment Of
5000 IN cash and 5000 in notes. The cash, wit
| ness stated, was borrowed from lady. The stock
and book accounts at the time amounted to about
| 5000 and the business owed about the same
amount; the sales per annum amounted to about
$4,000 The rent of the establishment was about
S2,lOO per annum, the average expenses were not
/ known.
Witness further stated, tina, although he paid
/ his bookkeeper $40 per month he never obtained
trial balance from him, being continually put oil
and he never knew the actual condition of his bus
] mess from his books from the time he bought in
until failure. Account of stock was taken once q
| year but the returns were not compared with the
| books TO see If they agreed. About the middle of
/ 1855 he first became aware that his business was
/ going behind, but even then no trial balance was
| taken. He had had two partners, Henry Macfar-
| lane and W. II. Aldrich. Macfarlane put in 5000,
| that IS, he M. endorsed notes to that amount;
| $500 was all the cash put in by Macfarlane. We
each borrowed 5000 from Mr.. Cartwright in 1881,
| for the beneht Of the business only few months
| before Macfarlane went out. Borrowed also So
/ 600 from Bishop Co. This latter amount after
/ Mac Via had srarr nf
| the firm at nv request, wanted TO control the
| whole business. ] bought him out paying him
| $1,000 III notes, secured by second mortgage on
| stock. No trial balance was even then taken.
Gave MacfaTlane a bonus Of $1,000 that is, paid
| him $4,000 altogether. Mr.. Adrich became part
ner with me January J. 1855, he paid me 5000 for
| a half interest He was to have put III Sl0OJJ but
his father In conversation with me objected. SlOl
per month was all that either Of vas allowed 70
| draw from the business.
| Mr.. Deyey continuing, said that his personal e1'
penses. including self and family, were about ST.
| 500 per wear, and there was plenty to spare NJ
that" He did not know how to account for the
deficiency from the time that Aldrich became p ut
ner until failure He married in June, 1881, his
wife had means of her own: she had between S5,uJ
and $1,000 in the hands of Mr. Preston, also money
of her own real estate in Hilo, etc. The property
| was sold after marriage. At the date OF fallurt
the furniture was insured for 5000, and housC
for 5000 Contributed but little towards the fur
nlture mostly bought by his wife Sent WIfc lllt
family to Europe in July. 1884 trip cost about
81 800 paid for it out of salary manager OF th'
business. Witness was not able to say whether
stock account had been shown to Mr.. Cartwright
His private liabilities amounted 10 about Sl30O. o
which 500 was for doctors bill IN San Fran
cisco.
At this stage of the inquiry Judge Preston de
cided that the matter had assumed such Impor
lance that it would require further hearing ana
accordingly notice was given to Mr.. E II. Hatch
counsel for bankrupt, that day would be set.
4 further hearing took place before Judge Pres
ton yesterday and was continued until today a
| one O'Clock.