BUILDER FOUND GUILTY

Auckland Star, Volume LXII, Issue 258, 31 October 1931, Page 12

BUILDER FOUND GUILTY

DID NOT KEEP PROPER BOOKS

CHMSTCHURCH LAND DEALS

DEFICIENCY OF £10,000.

(By Telegraph.—Press Association.)

CHRISTCHURCH, Friday.

The trial was commenced at the Supreme Court to-day of Frederick Ashley Neale, builder and dealer in land, a bankrupt, on a charge of failing to keep proper books and on two charges of contracting debts without expectation of ability to pay.

For the Crown it was stat«l that accused could be described as a-dealer in land. It was obvious that the slump was the'main cause of his failure. -When he filed, lie listed his assets as £18,540 and his debts. to unsecured creditors as £10,310, leaving a nominal surplus of over £SOOO. Actually, there would be a deficiency of £10,000 and the dividend would be from 2/ to' 4/ in the pound. Accused's assets were in the form of land property and houses, the value of which had slumped enormously.

It was stated that money liad not been frittered away. The debts were to builders and timber merchants.

Evidence for the prosecution was given by the official assignee and two accountants. They stated that Neale's books were inadequate and it would be impossible from them to make out a balancesheet.

| In evidence, Neale said he had sold 05 houses in a single year. He had lived on '£6'per'week and had always known his position .perfectly. In April,. 1929, he had assets worth £23,000. In November, 1930, witness made out a balancesheeet, in which, v after writing down farm properties £3200 below cost, he showed a surplus of assets of £13,540. The slump did not affect him until this year or about November of last year, when he found it was impossible to get in mortgage moneys.

Ernest William Lewington, accountant, said in June, 1930, he examined accused's hooks and concluded his assets exceeded his liabilities by, £15,000.

John Ball Jones, manager of Packer and Jones,. Ltd.., said his linn had purchased two properties out of Neale's estate, selling one three days later at a profit of £125. On the two properties, the estate had lost £700. . The jury found Neale guilty of having failed to keep proper books and not guilty on the other charges. Sentence was deferred.

(Published By Arrangement.)