The Hawaiian gazette., 1886-03-09
The S. j. Levey & Co. Bankruptcy.


His Honor, Judge Preston continued the hearing
in Chambers on the Ist and 2nd insts in the mat
ter OF the bankruptcy of 5. J. Levey 81 Co. the SEN
Tor partner of the firm again being placed in the
position of narrator of his knowledge Of the causes
which led to the disastrous and as vet uneXplaln-
able collapse. The developments which are being
gradually made show that the assignees of the cs-
tate, Messrs. w. G. Irwin and A. j. Cartwright,
were right IN their theory that examination was
necessary, before the discharge of Leyey from
bankruptcy. The examination held on the 1st
inst, was rs follows:
MONDAY, March Isl.
s. J. Bevey examined Macfarlane did not with
draw because the business was going behindhand.
l went to him and proposed to buy him ont. have
no diamonds. ! did have set of shirt studs be-
fore my bankruptcy, but sold them to my brother.
HOffnung never advanced 5000 nor one cent to
me. Until four or five months before / failed
hadn't overdrawn a cent.
Mr. Cecil Brown here stated that the books
show from September 30th, 1888, to October 9th,
1884, S5O35.90, and from September 3Oth 1854, to
date of failure Sl0,9SllG was charged to Leyey's
account. and S946.0S credit.
Examination continued: don't know what that
credit item is. The charges of SlO,9Sl.l6 to my
account are wrong All drew in cash or merchan-
disc was charged up. Think drew $1,000 year
till Macfarlane dissolved. This was charged to
expense account and credited to me. ! owned the
California Produce Company business. There
was not much stock. Sold it out to Davis in july
1885, for 81 000. Think he paid about $500 before
We failed. Have never sold horse or wagon to
Davis for 500 since bankruptcy, nor before. Sold
him horse before 1 failed which belonged to my
wife. have now note of Davis on which he
pays me $50 weekly instalments.
The Court here says that Leysy must give up
that note to the assignees.
Examination continued: This note was not for
a horse and wagon, but for money lent Davis
nearly year ago, before be bought me out. l
have now no interest in the California Produce
Company. Have no agreement with Davis to be
come partner again after a certain time. ! had
not $50 in my own possession when failed. Some
500 or over was turned over to the assignees. |
have no other property which thought l might
keep except the carpets. / don't deal in lottery
tickets. Have had some in Louisiana lottery.
Have none now. 1t is a week since had any. /
had 80 at 81 apiece. Got them from New Orleans.
Borrowed money to buy them after bankruptcy
from John Patty, Lyons security as indorser on my
note. / disposed of the tickets here to different
people, one, two SO at time at Sl.JO each. Paid
50 cents each for them there; they send them here
ut that rate. Before bankruptcy did not CJnsigu
any of my goods TO any one here for sale. be-
lieye that my clerk Miller did cOnsign cigars
to Wlseman while was away in San Francisco.
Have not demanded payment for those cigars since
bankruptcy. Have had transactions with Luning.
owe him nothing now. Have borrowed from
him 500 for thirty days and paid him 50; once /
think / paid him $40. Borrowed on account of
the business, and charged TO bills payable The
original note of Davis was about $500. 1t amounts
to about SUI now. Have received payments sluce
bankruptcy. think first cost of house where l
now live was about 5000. Mr.. Preston paid for
it out of my wife's account. Don't know where
my wife got the money she paid for the furniture.
She said she had some from her father and some
i'll bank before married her. She received 1926
after marriage from sale of land. Over $500 was
paid for furniture before marriage, and about 4G0
after. Some of the things in the house still be-
long to the COney estate. Never received any
benefit from the California Produce Company; 1t
Just about paid. did not add 5000 to merchan-
disc account when making out statement at any
time
Cross examined by Mr. Hatch: made nothing
by selling my diamond studs. l used the money
obtained for them. With regard to the sum of
$1,000 and over charged to my account, Just be-
fore failing, some debts / owed were paid and
charged to my account. Did that because Aldrich
was drawing heavy from his account Aldrich
paid nothing for himself and wife while he lived
with me. They were to pay $50 per month rent
and pay each One-tlird expenses, but did not.
Aldrlch drew $500 or $500 while III the business
Many of our accounts could not be collected be-
cause Aldrich owed them. Had 10 personal diff
ference with Aldricb, but was continually after
him for drawing so much money. He got angry
when instructed the book keeper not to Day him
any more. My interest account and expenses the
last II months in business was nearly $1,000
Adjournment was now had until the next day.
On the 2nd inst, the hearing was continued
). j. Ieyey being again examined but previous
to which Mr. Cecil Brown stated that; from Cxami-
nation of the books we find that the expense ac-
count from the time Levey bought out Bush to date
of failure, two years and eleven months was 81
36S.O6. Interest and discount for same time was
S9,53y.62, rents S6,59i23, making total expenses
SJOl.0I. Merchandise sales were S356,J95 We
figure gross profit on sales S67,3l9. Besides this
SIS 900 was paid into the business in cash, as fol-
lows: From Macfarlane. $4,000; Cartwright. $l0,-
600; Bishop d Co., 5000; Leyey himself, 5000
and Aldrich 5000. Now after using all the as
sets, there is still over $S 600 due creditors. This
would show a deficiency of $79,Sl9, or leaving out
$4,000 paid Bush, S69,Sl9. On January LIST, Levey
says his business was $4,000 to the good. Aldrich
put in 5000. His profits on sales for the eleven
months of 1885 must have been about $4,000
Deduct $4,000 for expenses and there is then
deficiency of $1,000.
S. j. Levey, the bankrupt, was then examined
Cannot account for this deficiency except what
shows in books. l never had any idea anybody
was rObbing me- l should like to have this def.
cheney explained myself. Miller kept daily cash
sales while there, and bookkeeper copied into
the regular cash book. / never entered in regular
cash book, only in blotter. Sales for cash varied
$40, Sl5, $50 sometimes only IS daily. Have not
fully discovered cause of my failure yet l have
never gone through the books thoroughly; took
my bookkeeper's word for it. Don't think now
they are correct.
The Court at this stage ordered the examination
to stand over till called up again in order TO give
Lsyey time for an examination of his books.