BANKRUPTCY ACT BREACHES

Press, Volume LXXXIX, Issue 27035, 9 May 1953, Page 2

BANKRUPTCY ACT BREACHES

SENTENCE PASSED ON BUILDER IMPRISONMENT FOR SIX MONTHS (New Zealand Press Association) WANGANUI, May 8. A sentence of six months’ imprisonment with hard labour was imposed by Mr Justice Hay in the Supreme Court today on Arnold William Reed, who had been found guilty by a jury of four charges laid under the Bankruptcy Act. Reed, now of the Thames district, but formerly of Taihape and Morrinsville, was a builder and contractor in Morrinsville. It was stated by the prosecution that his business had a turnover of between £65,000 and £70,000. It was stated by the Official Assignee at Taihape that the proofs of debt totalled £32,000, but that-about £5OOO of this would be disallowed. The accused was found guilty on charges that he. failed to keep proper books of account as required by the act, that he pawned, mortgaged, or pledged otherwise than in the way of trade property which he had obtained from a firm for which he had not paid, that he contracted a debt when he did not have a reasonable or probable expectation of paying it. and that he made a payment of £413 10s lOd out of the regular course of his business in partpayment for a motor-car, such payment not being for the ordinary expenses of himself or his family. ' Sentencing Reed, Mr Justice Hay said: “I am taking the view in your favour that you are not a rogue in the ordinary sense of the word, but that you are a man of knowledge and ability who ought to have known better than to have -done these things.”