EXTRAVAGANCE DENIED.

Auckland Star, Volume LXI, Issue 186, 8 August 1930, Page 9

EXTRAVAGANCE DENIED.

BANKRUPT UNDER CROSSFIRE

QUESTIONS ABOUT CIGARS

LIVELY MEETING OF CREDITORS,

Allegations of extravagant living were denied by Ernest Cecil Adams agent, of Auckland, who met his . creditors to-day before- the Official Assignee (Mr. A. W. Watters). After a sitting lasting an hour and a half it was . decided to adjourn until August 26 for the production of books and documents relating to the case.

Bankrupt's financial statement showed assets nil, and claims of unsecured creditors amounting to £BG3, this being the deficiency.

Adams, said the principal, cause ©f his failure was ill-health. He was down with influenza, for a long period in 1918, and important, contracts had to be cancelled The slump of 1920 occasioned serious losses, and again'iin 1925 business was ve'rv bad

Replying 'to the Assignee, bankrupt said he was solvent until March, 1929. A certain amount was owing 'to him, as he was working on commission. He was not certain whether there- were book debts owing. In order to arrive at a decision that he was solvent up till that date, he had -to conclude that certain old debts had been satisfied.

The Assignee: Jf you consider ' all your legal obligations, you have been insolvent for a number of year's?

Mr. Thwaites (representing bankrupt), replied to the question. He said Adams honestly thought he was justified in concluding that the debts he owed had been finished with. It had been necessary to explain to debtor that the debts were still owing.

Further questioned, Adams said the last year in which he was absolutely solvent was 1925. At that time he had no complications regarding debts.

Cross-examined by Mr. East (representing one of the principal creditors), debtor said he had not lived extravagantly. The causes he had given for his bankruptcy were tine. He had.been compelled, 'by circumstances, to live quietly. Mr. East: Do you drink at all?

Debtor: Occasionally I have a drink in a social way, but never to excess. I have occasionally had a drink with I my creditors; there is no harm in having a drink as I did. Do you gamble at all?—I admit I have been to race meetings, and at one time I 'had an occasional bet when I could afford it. I have certainly _ not had any bets of late and the only times I have been to the races lately have been when I have had tickets given to me. More than once I have stayed in town, working, when I could have gone to the races. I stayed in town on the day of the Great Northern Steeplechase. One of the creditors asked debtor whether he felt justified'in smoking expensive cigars at a time when he could not meet his debts. To this Adams replied that he did not smoke excessively. "At one time," he said, "I did smoke cigars, and perhaps I smoked too many, because I got nicotine poisoning: I gave it up. I can assure you that if a man is seen smoking a cigar in Queert Street*'nowadays it is bblieved that lie- has beeil I '' smoking expensive" cigars all his life. (Laughter). Another Creditor: I would like to know where that money Adams got as commissions lias gone. Debtor: It is all in my statement. The Creditor:' That statement is wrong. Debtor: I deny that most emphatically. Mr. Tlnvaites explained that he had not had an opportunity of going fully into the case. Debtor had nothing to hide, and was willing.to do everything he could to help the assignee. The meeting was adjourned as stated.