IN BANKRUPTCY.

Hawera Star, Volume XLVIII, 12 March 1925, Page 7

IN BANKRUPTCY.

AFFAIRS OF A SOLICITOR

PUBLIC EXAM IN AT) ON

(.BY TELEGRAPH PRESS ASSOCIATION

WANGANUI, Maroll 12. TliOi public examination, of George William McCaul, a bankrupt, formerly in business as a solicitor in, partnership with a Mr. Collins, commenced this morning. Evidence of a preli mi nary nature dealt- with the formation. of’ the Security Building Society, which McCiaul and Collins were the only partners. The society carried on business for l a year and their developer into part of McCaul and Collins.’ business, with which was closely associated the purchasing .of mortgages at discounts and reselling. .An audit, as provided by the Act, of the affairs of the society, was never taken. Collins, who kept’ the books- of the society, left New Zealand in October, 1923, and lias not returned. MoCnul admitted begot the sum of £I4OO from a coldier Who was about to- leave for active service in 1918. He believed some of this money went into the- society, but he did not know how much. The society had a- trust (account with McCaul aiid Collins. The ledger showed the purchase by the society of a> mortgage from -a client for £llOO. This- was siold to another client for £ISOO, and the £4OO profit went to McCaul and Collins. Counsel, mentioned that the mortgage had been released and the man made ia considerable loss. Continuing, bankrupt isia.id that thi : - money was invested when the owner went into camp. He- invested £6OO for a Hnnterville client in December, 1919, -and he believed this money was invested in a. farm, near Douglas which belonged to one- Jone.s. He- saw the farm himself, but did not know wh e - ther the farm was bought from McCaul and Collins, or from Collins. Subsequently other securities were 'assigned to the- client for money. He did not- know whether the Douglas farmer repaid the £600; he did not believe he- did. He- could not say who received the £6OO, and did not know whether the £6OO was ever paid to Jones. He knew that the £6OO was paid into, the building society, which was McCaul and Collins. an .entry in the ledger of £575 to ■Jones, and an entry in. the, cash book Would appear to show* that this sum went -out of the building society ihfx> the account of McCaul and Co. Subsequently the Hnnterville iii/Yestor was given, other securities by the society. The examination wa.s adjourned till to-morrow.

BANKRUPT CHINESE. FORMERLY OF HAWERA. COMMITTED FOR TRIAL. “ A.case of interest to this district was tried in Auckland on Monday, when an undischarged Chinese bankrupt, Chan Shin Fong, aged 26, appeared before Mr J. W. Poynton, S.M., charged with fraudulently obtaining credit for £B6 3s 3d from Mabky, Logan, Caldwell, Ltd., and for £B2 19s Id from Ross; and Giendining, Ltd., and with failing to keep proper books, contracting debts without reasonable expectations of being able to pay them, and two charges of obtaining credit for amounts exceeding £2O, being an undischarged bankrupt. Mr Hubble, wlio prosecuted for the Deputy Official Assignee at Hawera., said that in 1922 accused was in business as a fruiterer at Hawera, but he disappeared about October of that year. In the previous month A. B. Donald, Ltd., merchants, obtained a judgment summons against him for £7O, and .subsequently issued a bankruptcy petition. However, they were unable to locate accused until July, 1923, when they found they were dealing with him under the name of G. Sun, at Morrinsville. The petition was. accordingly served, and accused was adjudicated bankrupt at Hawera oil August 28, 1923. He vanished again, but was traced at Wellington and examined by i his creditors at Hawera in December, 1.923, when it was found lie had no assets and no prospects of paying a dividend. | Apparently, said counsel, accused then went to Whangarei, and from July to August, 1924, traded under the name of Yeug Hay and Co. as a fruiterer. During last October and November. it was alleged he obtained credit from Ross and Glendining, Ltd., and Maclcy, Logan, Caldwell, Ltd., warehousemen, on the > representation that he was a partner in the' Shanghai Trading Co. at* Whangarei. lie did not-mention being an undischarged bankrupt, and when this was later ascertained he admitted the fact, and said he was not a partner in the Shanghai Trading Co"., but the manager, earning a salary and commission. '"After detailed evidence bad been heard accused pleaded not guilty, reserved liis defence, and was committed to the Supreme Court for trial. Bail was allowed.