CRITICISED BY ASSIGNEE.

Press, Volume LXIX, Issue 20862, 23 May 1933, Page 7

CRITICISED BY ASSIGNEE.

BANKRUPT ENGINEER. ALLEGATIONS OF DISHONESTY. Strong terms were used by the official assignee (Mr J. H. Robertson) in describing some of the dealings of Reginald William Norman, an engineer, aged 30, at a meeting of Norman's creditors yesterday. Norman, who was represented at the bankruptcy meeting by Mr W. J. Stacey, | carried on business for some time as; the Car Disposal Company. "I consider this one of the most unsatisfactory bankruptcies that have come before me for some time," said the assignee. "Some >of bankrupt's, dealings have been dishonest, and I feel inclined to go further and say there has been almost barefaced dishonesty. There is no question but that the bankruptcy must be investigated further, and it may be necessary to take further action of a more serious nature."

The amount shown as owing to unsecured creditors was £441 lis. The assets consisted of furniture valued at £4O and book debts of £32, leaving a nominal deficiency of £370. History of Business. In his official statement, bankrupt sot out that he had started business in 1930 in Durham street for the buying and selling of used cars, in association with Clarence Dalley. The capital of the concern was about £SOO in cash and £2OOO raised later as debentures. It was registered as the Car Disposal! Company, Limited, and carried on business until December, 1931, when it went into voluntary liquidation. His interest in the concern had been 249 fully paid £1 shares, which were in turn mortgaged to C. Dalley for the advance of a similar amount. The company was now in process of being wound up. In January, 1932, he went into business in his own account in Worcester street, under the name of the Car Disposal Company. For the purpose of this business he borrowed £IOOO from W. L. Clifford. Dalley had been associated with this business at first, but had left it in April, 1932, when it was discovered the profits were insufficient for two persons. From that time bankrupt had carried on entirely on his own. until January.

1933, when he was obliged to assign the whole of his assets, comprising book debts, to Clifford, in settlement of bankrupt's indebtedness to him. For the first five or six months of 1932 the balance-sheet showed a profit of about £4OO. He had hoped to discount ihe greater part of the terms with the New Zealand Guarantee Corporation, Limited, but after negotia-, tions the corporation declined to accept the agreements. By this time business was gradually falling off, and he was hard put to it for ready money to meet commitments. Until Clifford took action against him he had not realised how serious the position was. Later Activities. Later he transferred a car to his lather in payment of arrears" of rent and advances over a period of three years, lie spent £220 in acquiring a radio agency, and a further £l3B in travelling expenses during the last Inree or iour months. .Cross-examined by the official assignee, bankrupt said he was 30 years of age and was living apart from his wife/ ISio assets had been concealed or put out of reach of his creditors in the last year. For a start he had been drawing £6 to £7, but later he Jiad been drawing about £4, supplementing this from the petty cash. Replying to a question, bankrupt admitted he still owed W. L. Clifford £750. The official assignee: That is not shown in your schedule. It will bring your deficiency to more than £IOOO. Bankrupt: I regarded it as a personal loan.

Connexion with Cabaret. Norman was questioned by the assignee concerning his connexion with the "Red Devil" cabaret. He denied that he was in the cabaret business, stating that this cabaret was run by a friend of his. The assignee: Some of the transactions concerning the cabaret have been in your" name? Bankrupt: No. The assignee: Would you be surprised to know that the gas account is in your name. Bankrupt: It might be so. I go out there three or four nights a week, but that is just for amusement. I am not paid anything for what I do there. I have no official connexion with the cabaret. The assignee: Isn't there a pianola there belonging to you? Bankrupt: It isn't mine. It is on hire purchase. The only money of mine invested in it is the sum of £32 mentioned by Mr Stacey. Some of his creditors cross-exam-ined Norman at length, Mr M. J. Burns commenting that it seemed strange that one car had found its way into the possession of bankrupt's father, and three others into the hands of former employees. The whole circumstances of some of these recent dealings with cars, he said, were very unsatisfactory. The official assignee then made his comments on bankrupt's affairs, and added, "I might say that my remarks refer in no way to Dalley, who was not connected with any of the dealings about which they were made." The meeting was adjourned to enable to the assignee to make further investigations.