VALUELESS CHEQUES.

Auckland Star, Volume LIII, Issue 120, 23 May 1922, Page 7

VALUELESS CHEQUES.

ADMISSIONS BY BANKRUPT. CREDITORS TAKE ACTION. (By Telegraph—Tress Association.) WELLINGTON, Monday. ' At a meeting of creditors of James Fraser, restaurant keeper, his statement showed that unsecured creditors hud claims of £3336 and secured creditors £225. The assets, including furniture and cash in hand, were estimated at £053. Bankrupt attributed his faiiure to loss of business after the Theatre Royal closed down and the opening of new restaurants. He was questioned as to a number of valueless cheques alleged to ha\e been issued by him, and admitted he knew these cheques could not be met. A racehorse leased by him was said to have won £10! M) since September, but when asked what had become of the money Fraser said a racehorse could not be run for nothing. He denied making a statement that he had £250 in gold stowed away. He admitted he had told one creditor lie had £3000 locked up in Government bonds and could not get the money, which was not correct. One creditor suggested that bankrupt had spent his creditors' money on horse racing instead of giving his attention to business.

Fraser was asked why he had not more to show for the good years in restaurants during the war. He stated lie had been losing money on shilling meals in 101S and had to increase to I/O and afterwards to 1/9.

The Official Assignee said he thought bankrupt came under the penal clauses of the Act. acting under false pretences right through, making false statements and giving valueless cheques. As a matter of fact he was bankrupt in 1910 on his own statement. He should have closed up then. The case should go before the Crown Law Office for ful ther proceedings.

It uas then moved that all papers should be handed to the Crown Prosecutor to institute proceedings. The motion was carried uiianiinouslv.