A BANKRUPT’S EXPENDITURE.

Hawera Star, Volume XLVI, 13 June 1927, Page 9

A BANKRUPT’S EXPENDITURE.

INVESTIGATED BY ACCOUNTANT. (BY TELEGRArU—PRESS ASSOCIATION.) DANXEYIRKE', June 11. When the creditors in the estate oi Thomas Montgomery Webb, a farmer and. com mission agent, of Dannevdrke. met in May last it appeared as if the bankrupt, who showed -a substantial deficit to unsecured creditors, -had gone back to the extent of £20,000 in -about eight years. They desired to, know where it had vanished, and authorised the employment of an accountant to make investigations on their behalf. This was done, and the -accountant's report was submitted to another meeting of creditors to-day. Commenting upon the position, the Deputy Official Assignee, Mr. A. J. C. Runcinian, said -so far as he could see in 1919-1920 Webb made an exceptional income, and it -appeared in that year he was very extravagant in his expenditure and probably was entitled to be as he was apparently at that time pefectly solvent. Unfortunately -he spent a very considerable sum in -investments, which -had proved worthless, -and that was where the trouble had arisen.

During the -succeeding years, perhaps, some items of expenditure might have been questioned, but they would understand that during that period Webb was endeavouring to pull off one or two deals which if they had c-ome off, would have put- him right. Under the circumstances "Webb thought it necessary to expend a good sum of money. During 1919-20 Webb could have paid his creditors and did pay them, but be had been unfortunate in his investments, and during the last four or five years the farm, had not been a payable proposition by any means. T-he -statement submitted by the accountant might be considered satisfactory to the creditors and to be bankrupt, for -at first glance it seemed inexplicable that a large amount of money should disappear. The statement” as submitted by the accountant to the creditors had .shown where the money went. A creditor: “Where it disappeared! 1 cannot see where it went.”

Steps are to he taken to wind up the e■state in the usual manner.