The Hawaiian gazette., 1914-04-14
ANOTHER CHAPTER
TO Bankruptcy
court Rules That N. Q. willfong
rdust Return $1,000 70 ~
General Assets.

WINDING - tOld IN ueciBOn which
Judge 1arsons delivered last week in
the ease Of John D. Eastou, trustee 10
bankruptcy Of the partnership and Of
the partners, against Nc. WfIlfong.
Easten's prayer that wnlfong return
TO the general pot the thousapd dollars
which his son, George willfong, gave
him when the partnership went on the
rocks, was granted.
Tho decision may be likened INTO a
funeral service, and il brings ont the
details OF the unfortunate venture more
accurately than they have been gener-
ally Known heretofore.
1t describes how the partnership be-
gan July l, 1912, win L. Desha contrib.
nting $4,000 and George Willfong $1,000,
with the understanding that the profits
and losses should be shared in proper
ton 10 the amounts contributed BY the
respeetive partners. Willfong got his
$1,000 from his father, N. G. Willfohg
ia Reckless Buyers.
''The partnership shortly after July
l,i9le, says the decision, ftbegan the
purchase Of materials and supplies for
their business, paying therefor forty or
fifty Per cent more thnn the price for
which THE saline goods could have been
obtained by more experienced dealers.
Part OF the machinery purchased at n
considerable expense was OF little or no
service IN the business IN which Dssha
and WillfonR were engaged. One mill
ing machine intended for the wholesale
trade was purchased for about $1,000:
the machine here in Hilo was worth be.
tween $500 and $1,000 and was Of little,
Il any, use to the Arm Of Desha 4 Will,
fong. ~.
The partners disagreed almost from
the beginning Of the co-partnership.
Desha spent much OF his time in Homo.
lulu, playing baseball, and devoted
very little Of his time to the eo.pqrtner-
ship business. He drew checks in The
name Of the firm without the consent
or knowledge of bis copartner.
On September IS, 1912, a little over
two months from its formation, the co.
partnership was dissolved, George w.
Willfong taking as his share Of the as
sets a cbattel mortgage executed BY
Gcnichi Dol, SECURED BY fourteen prom
issory notes of .$75 each. This mort
gage and these notes containing the
firm endorsement Of Desha and Will
fong were delivered the same day by
George w. Willfong to his father, NJ.
FC, WillfOng, the defendant herein, in
payment OF the $1,000 Heretofore nd
sanced by n. z. wflIfong too. w Will
rs y oO-partnsrship Diss1iysd. ~ r
The lugubrious tale goes on. A check
was dishonored beenhse there were no
funds.in the bank with which to meet
it. The co-partnership was dissolved,
and the creditors brought attachment
proceedings; Judgment was obtained,
|execution was issued and the property
81 the eo-partnerfhip was levied upon.
The tear.stained record continues.
The partners were adjudged bhnkrupts
both as partners anil AZ individuals
upon a petition iiled by their creditors,
The referee in bankruptcy ordered the
suit against the elder Willfong brought
"At the time Of the dissolution Of
the co-partnership its assets were OF
the value OF from $500 20 5000, y says
the decision in describing the remnants
upon which the creditors were invited
TO slake their appetite. 'eThe liabili,
1--WE tAttuhlNO VI un lAuObtt0uNrh "
Mrs. Allen, which will require separate
consideration, were $37S1.50.
Certain evidence was introduced by
tho defendant tending TO show that the
frm owed nothing to. Mrs. Allen, but
that the amount advanced by her,
hamely $4,000 WAS by way of a ioau
TO w. n. Desha, one Of the partners,
This evidence, however, is not CON
vineing, In view of the fact thst W, T..
Desha WIS not called 10 testify in rel
gard to the transaction nor his fail
ure TO give testimony accounted for,
and in view Of the further fact that
the $4,000 was entered in the hand
writing of q. w. Willfong in the books
of the firm as q firm liability.
'tIn view Of. these circumstances and
or the adindfeation Of insolvency by
the fedsFait court, which adjudication
applied TO Facts which the evidence
does not show TO have changed, between
September IS, 1912, and November IL,
1912, the court finds that the Indebted,
ness to Mrs, Allen was a Arm indett,
edness, making the liabilities OF the
concern $9SSf.50. Phe expensss Of the
bankruptcy proceedings, exclusive Of
dividends, have been $2400. One divi.
dend Of twenty, per cent has been de-
clared, and the final dividend will not
in any event amount TO more than
twenty-five per cent.
Had Endorsed Their Loans.
"The evidence shows that n. q. Will
fong, because of his financial interest
and because Of his relationship and I'M
timaey with the said g. W. Willfong,
was in a position to know Of the fnan-
cial condition of the firm during IT'S
Eexistence. II was shown that he oc-
casionally visited their place Of bust
ness; that on at least two occasions
he endorsed their paper, and that H.
was in daily communication with his
sen. The defendants name appears IN
the schedule Of creditors. ~
In eoAelusion the court finds that on
September IS the partners were insol
vent and that Inc transfer made by
young Willfong to his father ON that
date gave the latter greater percent
age of his debt than any other cred
itor Of the same class could receive
thereby creating preference in favor
1 OF N, q. Willfdng, while on the DAFT
named be had reasonable cause to be
llieye that the transfer would result II
such preference. Judgment Is there