UNDER ARREST

Evening Post, Volume CIX, Issue 25, 30 January 1930, Page 10

UNDER ARREST

BANKRUPT EXAMINED

FURTHER ACTION LIKELY

There were about eighteen creditors or their representatives at a' meeting this morning of the creditors of John Albert Bitters, a builder, of Lower Hutt, who was arrested at New Plymouth recently at the instigation of the Official Assignee (Mr. S. Tansley). As the bankrupt, who is still under arrest, had not got his books available, he could not present the creditors with an accurate statement of his assets and liabilities, and the creditors had to be content with questioning the bankrupt about his position generally, and what he had done since he left Wellington. During the course of this examination Mr. Tansley had occasion to warn tho bankrupt for his refusal to answer several questions.

In answer to questions from the Official Assignee, and the representatives of the various debtors, the bankrupt said that when he left Wellington he considered that there were enough assets to pqy his creditors, and that they would take action to realise for themselves. He did not go under another name to hoodwink his creditors, but for private reasons. Ho was managing a cabaret in New Plymouth, and did not put any money into it. When he left Wellington he drew roughly £200 from the bank. He had £40, and at present he refused to say to whom he had paid the balance of the £200. The cabaret was run in his name, and ho borrowed money from a friend to start it. There would be about £40 or '£50 worth of assets there. The bankrupt refused to give the name of the man who lent him the money, as the man had said he did not want to appear in the matter. In February, 1929, he bought a new car at a cost of £305, paying £100 down. He needed the car for his business, and since his bankruptcy he had paid £39 on the car. This money came out of his earnings as manager of the cabaret. He owed about £27 in connection with the cabaret, and there was a balance in the National Bank at New Plymouth. The money was in tho name of Bert Stafford, his friend, having advanced Idm £160. Tho takings of the cabaret averaged about £9 or £10 a week when open, which averaged about two nights a week. He drew £7 a week from the cabaret, and he also paid interest in cash on the money lent. He kept a takings book and a bank pass book at New Plymouth. He had a Post Office Savings Bank account at one time, but it was closed in October, 1929. In that

I month he drew £G0 from the Post Office, which he used for his own private purposes. Whilo he was in New Plymouth he sent his wife £30.

The meeting was adjourned sine die in order to allow the Official Assignee to obtain the bankrupt's books and prepare a statement o'i his position. It was mentioned that further action might be taken.