POULTERER'S FAILURE

Evening Post, Volume CXI, Issue 108, 7 May 1926, Page 8

POULTERER'S FAILURE

SEO.UEL TO BANKRUPTCY

EXAMINATION BEFORE MAGIS-

TRATE,

An examination under the provisions of the Bankruptcy Act, 1908, was made in the Magistrate's Court to-day. The principal witness was Mrs. Florence Groves, and the allegation is that she was a partner in the business of J. C. Frost, poulterer, of Wellington, who recently filed a petition in bankruptcy. Mrs. Groves claimed as a creditor at the bankruptcy for £316. Mr. W. G. Eiddell, 8.U., was in the Bench. Mr. P. S. K. Macassey, Crown Prosecutor, appeared for the Official Assignee (Mr. S. Tansley), and Mr. H. F. O'Leary represented Mrs. Groves. In evidence Mrs. Groves said she went to live at Frost's place in June, 1924. She then had about £70 in cash, and about £65 to £70 in the Savings Bank. An arrangement was come to that she should receive £500 from her hufeband, from whom she had since been divorced. For a start she received £200, and on 6th June, 1924, got £175 from her solicitors, part of the £200. To Mr. O 'Lcary, witness said that before she went to the shop in Molesworth street Frost discussed with her the question of starting business. Witness suggested that she invest her money at interest, but Frost said he had something better. He wanted witness to go into a pork butchery business. Witness agreed to lend him money at 8 per cent., and altogether advanced him £333 6s. She opened a bank account, and signed the cheques as a security. The account was used by Frost as a business account. Up to 23rd April, the date of the bankruptcy, she had received no interest on her money, and had only received one payment of £10. When Frost went bankrupt she drew £164 out of her account. Frost told her he had seen a lawyer, who had advised her to draw out the money. Mr. Macassey: "Did he mention the lawyer's name?" —"No, he did not." Witness said that Mr. O'Leary had advised her to hand the money to the Official Assignee, which had been done. Pearce had bee* paid £30, and £13 had been disposed of to pay small debts. She knew that Pearce had lent Frost £150, and the money was the balance due to Pearce at the time of the bankruptcy. To Mr. Macassey witness said she made no arrangement with Frost that the money from the shop should bo paid to her account. She denied that the receipts for her loans to Frost had been made out after the bankruptcy, or shortly before. She denied she was running the shop in partnership with Frost. She had the rent of the flat free, but gave Frost his meals in exchange. Mr. Macassey: "You remember when Mr. Waiinvright was asked to leave? You asked him to come back, and stated you were the boss?" —"No, I never told him I was tho boss." Witness said she did not tell Wainwright she was running the shop or financing it. She wanted Waii.wright to come back to do the books. Evidence was also given by George Thomas Pearce to, the effect that ho had advanced Frost £150, and that it had been repaid. (Proceeding.)