The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1886-03-03
BANKRUPTCY PROCEEDINGS.
Examination Of .. J. Levey of the
Firm Of =. J. Levey d Go.

Following is consecutive report of the
examination in the Supreme Court, before
Mr.. Justice Preston, of S. J. Levey, senior
partner in the bankrupt firm Of S. j. Levey
& Co., Honolulu, to obtain, if possible, an
explanation of the cause of the deficiency
in the firms accounts between January 1,
1885, and the date of suspension in Septem-
Der of the same year. Mr.. Cecil Brown,
attorney for the assignees, conducted the
examination, and Mr. F. NJ. Hatch ap-
peared for Levey.
FRIDAY, February 10Th.
Samuel J. Levey sworn, states: am
one of the bankrupt firm of S. ]. Levey d
Co. / arrived here in the Islands in
August, 1879. My first occupation was
luna on the Wailuku plantation at $50 per
month. Was there one year. Came to
Honolulu and went clerking for A. w.
Bush-the first four months at SIS, then
500, then $125, then $50. From the time
left Wailuku till Bush died did not save
much money; had only about $500 or $500
at any one time. 1 had about $500
when 1 arrived in the country. bought
Bush out about one year before he died.
DOuHDI
schedule of assets and liabilities made from
his books and $4,000 bonus. paid $1,000
in cash ana So 900 in notes of 81 900 each.
The cash l borrowed of Mrs. COney's
money in Cartwright's hands. 1 paid
| $4,000 for the good will of the business. L
do not remember the value of the stock or
the business. Stock and book accounts l
think were about $3.50, 900. There was owing
by Bush about same amount. paid the
debts of $4,000 from money received in
! course of business and out of money Dor
rowed afterwards from Cartwright. Have
had former experience in grocery business
| in Australia. Consider myself competent
| to conduct business. l had a perfect
knowledge of the grocery business as con-
| Quoted by Mr. Bush. The average value
| of stock we carried was $4,000 to so 900.
Sales per annum averaged about 800, 900.
| 1 cannot say positively about what amount
was profit. On invoice cost profit was
say 90 to 25 per cent. Do not recolaaS-
penses of running. Could tt.g.siI 1l h., roforr;,
- - 4zsSh@+oh ny IoA0Alh
10 Dooks' ~jessproyed competent boo
neepers. l paid one, Buchanan, $175 p
d month 1 employed also three, sometim
L four, statesmen, at $40, $50, 500 and 81
n per month. Our rent was 81 800 p
= annum. Received $25 per month for su
leasing. Rent was say $2,1O0, for 1 pa
$25 per month for use OF yard at bac
y Other expenses were keep of two horse
2 $50 per month each at livery stable, UNI
g I got the back yard. would not like
2 say now, for do not recOllect, what W
hoo
% keepers never gave me trial balanc
3 kept putting me off. L have made SO
% of balance on statement from the boo
y which have showed around-not a reg
z lar or complete balance. Never knt
y actual condition of my business from n
= books from the time I bought till failul
y 1 tried often to get a balance from n
20 bookkeepers. The statements l have ma
. to parties in town would be sustained
70 the books OF course stock estimate W
Is approximate. We took stock once yes
y Did not compare annual stock taking wi
= books to see if it agreed About middle
1895 first became aware my business W
% going behind-from the books, conditiC
= of stock, etc Took no trial balance the
Have had two partners, Henry Macfarla
and w. H. Aldrich. Macfarlane was n
partner when bought out Bush. He p
in So 900, namely, he Endorsed the notes
i that amount given to Bush. He had
o half-interest. Macfarlane Endorsed 9th
d notes owed by Bush which we assume
e for which he paid out So 800 cash, as tn
:. became due. He was my partner un
. about July or August, 1884. The notes
, Bush were paid out of the business; 49,
was all the cash Macfarlane put in. B
sides the So 300 the business borrowed S1(
600, / e., each of US individually bOrrow'
5000 from Cartwright in 1884, son
months before Macfarlane went out of Il
business. At or about this time l think
I gave Cartwright statement of the bui
: ness, showing we were solvent, stat
D ment of accounts due the concern al