NOT SATISFACTORY

Evening Post, Volume CXIII, Issue 48, 26 February 1927, Page 9

NOT SATISFACTORY

! BANKRUPT TRADER APPLICATION FOR DISCHARGE . ' ' •. ' (By Telegrapfi;) , (Special to "The Evening Post.") . ' , AUCKLAND, jhis. Day. At'the Supreme Court yesterday, John Kuthorford made an application for discharge from his bankruptcy. Mr. Justice ,'Herdman, who was on the bench, said that it was a most unsatisfactory bankruptcy. Mr. Knlay, for the debtor, said there was a somewhat clarifying explanation. The whole position was symptomised by the attitude of tho creditors in the estate. When the bankrupt filed they expressed profound indignation as to the nature and characteristics in the general sense of the bankruptcy, but after investigation they had wholly relented, to such an extent that most of them had signed what amounted to be a petition that the discharge be granted.

His Honour said the bankrupt started business in 1918. His liabilities had amounted to £13,13,6, and his assets had realised only £837. He asked whether the National Bank was a signatory to the petition. . Mr. Finlay said it was not. Out of 213 creditors, some; of. them' for small sums amounting only to shillings, only 13, including the Tjank, had failed to sign tho petition. The general manager of the bank had explained that it was not its policy to sign such a document. The bank had offered no objection to the discharge. The ActingOfficial Assignee, guided by the dry bones 1 of the records, had lodged- a report which, on the face of it, was entirely; unfavourable.

His Honour said the icport showed tho debtor's 1921 balance-sheet did not disclose a liability for £2000 which h had borrowed to buy out his former partner.

Mr. Finlay said the document was the balance-sheet of Messrs. J. G-. Kiitherford and- Co. The £2000 was a strictly personal debt, and had nothing to do with the business. i

. His Honour: "It-is the duty'of the CourJ; to try to check reckless -trading:?' 1 Mr. Fihlay: "Well, the best judge of reckless trading is the-man who has lost .Ms 1 money: through it. 3' ■ ''■: ■ ...His; Honour:. "I don't know. : Thepp.don't:seem to\miiid nowadays." It' used to be'considered an everlasting disgrace to come into the Bankruptcy Court, but it is not so now.'' :...-; . ■ ■■• -: ' '■

Mr. Finlay said the bankruptcy was attributable to a,peculiar faculty Eutherford .had for selling. He had sold thousands of pounds worth.of stock that he was not in a financial position .to supply and consequently had created tremendous overhead expenses. ;; :lii ieply to his Honour, Mr. G. N. Morris (Official - Assignee) said he had no personal knowledge of the case. Mr. W.S. :Fisher. (the late Official Assignee) had expressed the opinion that it would be his duty to oppose the discharge, no mazier what the attitude of the creditors was....

His Honour: "Quite rightly,"Mr.; Mqr'ris .said he did not understand : tin}' creditors.', attitude—whether it was duo: to short memories or to sheer .benevolence, or whether they expected to get a dividend in case the debtor-should succeed in future businesSi : „ ■:.'"'.'■' . ' . '

His: Honour adjourned the application for three months and asked the Official Assignee to submit a supplementary report in the meantime.