‘OUT OF HIS DEPTH’

Dominion, Volume 16, Issue 224, 9 June 1923, Page 8

‘OUT OF HIS DEPTH ’

BANKRUPT TAXI DRIVER NO FUNDS IN THE ESTATE CREDITORS DECIDE TO PROSECUTE The practice of embarking upon large business transactions without keeping proper books was severely condemned at a meeting of creditors yesterday during investigation into the affairs of a taxi proprietor. At the close of a searching examination, the creditors decided that the matter be placed In the hands of the Crown law officer with a view to instituting proceedings.

The estate was that of Charles Edward Donnelly, taxi proprietor, and the meeting had been adjourned from Mondav last in order that counsel for the wife of the bankrupt might have an opportunity of examining the bankrupt. ' Debts to unsecured creditors were shown as £242 14s. 6d., to secured creditors £375. and the estimated value of securities at £3OO, leaving a deficiency of £317 14s. 6d. The only assets were hook d n hts, £6 165., and cash in hand, Is. 7d. The Official Assignee (Mr. S. Tansley) presided, and there were also present the bankrupt and his sol-’citor (Mr. W. E. Leicester). Mrs. Donnelly and hqr solicitor (Mr. C- A. L. Treadwell). Messrs. H. Salmon (representing Messrs. Bannatvne and Hunter). Egny (Mr. H. H. Coote). E. Palliser (Messrs. W. A. Arnold, Ltd.), and Slatford. Reasons for the Failure.

Mr. Leicester said that'there were, three main reasons, which accounted for the bankruptcy. Firstly, the taxi business did not turn out as successfully as hnd been antinieated; secondly, he had been unfortunate in property speculations, and,, lastly, he had been very unfortunate in his family affairs. He stood at one time to make £4 per week from one of the three shops he had rented. If he had been able to carry on he would have been in a fair way to make a good deal of money. Unfortunately the. slump had seriously affected the taxi business. This was not a cape of reckless expenditure, but rather a case ofl a man getting out of bis depth through no fault of his own. Soma Questions. Mr. Palliser asked if bankrupt had a sigped agreement regarding the shops "he had taken oVtv? Bankrupt said the arrangement was that he was to pay £4OOO for the shops, with a deposit of 10 per cent. Mr. Treadwell: When, did you get this dairy business? Bankrupt: About April, 1920. How much did you pay down ? — “Practically nothing.” Did vour wife have anything to do with it?—“My two sisters ran it for the first eight months.” After that did your wife take it over?—“Yes.” , .. “Did you keep any books?” was the next question. Mrs. I 'Donnelly: He would not keep any books. ' Mr. Treadwell:, What did you average for the six months after you took over the Hudson? Bankrupt: About £6 a week clear. z If your wife says you made £lO, a week clear,, is that .right? —‘She knows more about my business than I do.” When your wife got an order m the Court against you, did you keep up the payments? —“As well as I was able.” Since the order was made against you, have you made a trip up to Rotorua In a motor-car with a lady? —“Certainly not.” - iL . Were you within the last year with a in the vicinity of Rotorua? — When 1 you went to Auckland, who did you go with?—“l, went withjmy sister and Miss .” ■ i Who was Miss ?—“You know who she is. You subpoenaed her in & CBBO. Did you pay Miss ’s fare to Auckland? —“No.” • When you came back, did Miss come with you?—“Yes.” Did you pay her fare back?—“Certainly not.” Is it not a fact that yon have been living with this lady for some time. — “No; .it is a lie.” The Offical Assignee: Ido not think that this has anything to do with the bankruptcy. Mr. Treadwell: Oh, yes; it has. I want to show how this man became bankrupt. His Wife’s Claims. Mr. Treadwell (to bankrupt): When you went up to Auckland to your parents’ golden wedding, did you order a suit costing £l6? Bankrupt: Yes. For the first twelve months, what did you average for th® dairy ? “About £2.” . If your wife says it was £3. what would you say?—“She is liable to say anything.” Where are the goods which Mrs. Donnelly claims belong to her?—The list was very unreasonable. I could not find half of the things she claimed.” When ycu came back from Auckland with this shining £l6 evening suit, did you go to the race club ball r—“Yes.” , ~ Was this the . very day your wife left for Auckland.—“ Yes.” lliis would cost you two guineas, would it not?—“Yes.” And yet you only wanted to give your wife £l, but she eventually got £2 out of you.—“l gave my wife £5 ” Mr. Palliser: You could afford' to go to a ball which I have never had enough money to go to, though your financial affairs then were in a very bad state. , Mr Treadwell: Did you keep any record of your takings as a taxidriver?— “No; I had a book, but it was stolen out of the car.” Mr. Egay asked if any other payments had been made on a Hudson Mr. Slatford said that £305 was still owing upon the car. "Scandalous State of Affairs.” Mr. Palliser said it was a scandalous state of affairs that a man trading in such a large way as Donnelly was should not have kept proper hooks. The books he had produced were worthless. The Official Assignee: He has practically kept no books nt all. There are pages missing in some of the Mr. Treadwell said that if this sort of thing was allowed it would only bring the Bankruptcy Court into ridicule. The bankrupt had kept no . books, and had given neither his wife

nor his creditors any money, except what had been squeezed out of him. Mrs. Donnelly stated that on one occasion an account for £l2 for wines had come in from the Customs. Bankrupt said that there was a mistake in this; it should only have been for £4. . Mr. Treadwell said that if x nis mstructions were correct there was another reason for the bankrupt s failure. Mr. Palliser: Are there any funds in the estate? . Tho Official Assignee: None at all. (To the bankrupt): Can you make any offer? Bankrupt: No. If my creditors give me a chance I might be able to do something.Mr. Egay: Can you give us any explanation as to why you did not keep proper books? Bankrupt: I can see my mistake now. , The Official Assignee: Perhaps proper books were not kept for a reason. Mr. Palliser: There wave been plenty of warnings to tradespeople lately as to the necessity for keeping proper books. The Official Assignee: Yes; and I think the only way to compel business people to do so is to prosecute those who do not keep proper books. Decision to Prosecute. Mr. Palliser said this did not. appear to be a case where a man was struggling along and trying to lead a good life. He had . had plenty of warnings, but had disregarded them. They had a duty to the community in the matter. He moved that the matter be placed in the hands of the Crown law officer to prosecute. Mr. H. Salmon seconded the motion, which was carried.