LAW AND POLICE.

New Zealand Herald, Volume XXXI, Issue 9480, 9 April 1894, Page 3

LAW AND POLICE.

SUPREME COURT.— Sittings.

Saturday. [Before His Honor Mr. Justice Conolly.] Breach of the Bankruptcy Act.—Walter Tibbutt surrendered to his bail, and was indicted on a charge of committing a breach of the Bankruptcy Act, 1892. The charge was that on the 18th December, he was adjudicated a bankrupt, and that within three years', to wit, from the Ist of April, 1893, to the Ist of October, 1893, he unlawfully failed to keep proper books of accounts, usual iu his business, and such as to disclose his true financial position. The prisoner, who was defended by Mr. McGregor, pleaded not guilty, and was permitted to take a seat behind his counsel, for the purpose of instructing him. Mr. Tole prosecuted on behalf of the Crown, and opened the case. The accused was charged with not keeping his books sufficiently well to set forth his business transactions, and disclose his financial position, as required by the Bankruptcy Act, 1892, which made the offence a misdemeanour. He was not charged with with any intent to defraud, only that he had been careless and irregular, and made omissions ot a serious character. In this case the main irregularity charged was that the accused had kept no cashbook for a period of seven months prior to his bankruptcy. Then in his ledger there were no entries of his private drawings, nor anything in any of his books to show his takings out of his business. It appeared he was in the habit of taking money from the till when he required it. Amongst his papers was found a balance-sheet showing the bankrupt's assets, liabilities, stock, book debts, etc., and when this was compared with his books it was found that they did not tally by a considerable amount. The ledger, also, had not been kept from day to day, and bore the appearance of being written and posted up at one time. The books and statements had been investigated by an outside expert accountant, in accordance with a resolution of the creditors, and he found that it was impossible from the books supplied to the Official Assignee to say with any degree of accuracy, the true state of the bankrupt's position. Mr. Lawsoa, Official Assignee in Bankruptcy, gave evidence as to the state in which the accused's books were found by him. The so • called cash - book furnished by the accused he could not make head or tail of: it was not, iu fact, a cashbook at all. The balance-sheet referred to was also put in and read, and witness said a stock list had been found amongst the papers, and corresponded with the balancesheet in respect of stock and fixtures, but in respect to the book debts, shown in the balance-sheet to be £314 18s lOd, he went through both ledgers, with the result that £242 17s lid was shown as all the debts owing. Witness was certainly of opinion it would be utterly impossible to arrive at the bankrupt's financial position from those books handed to him. The witness was cross-examined. He had not himself compared tho day book and ledger or the bank books, these being placed in the hands of the expert accountant, who went fully into them. Mr. A. Grierson, a professional accountant, said he had examined the books of the accused. The ledgers did not show the gross profits of the business, and it appeared as though the ledger had been written up several months at a time. After some further evidence the accused was sentenced to seven days without hard labour, the term to begin from the opening of. the Court. The result of this was that the accused was at once discharged. In passing sentence, His Honor said it must not be supposed because he intended in this case to pass any more than a nominal sentence, that he would be disposed to do so in everv case. In these two cases of the kind that had been before him, there was really nothing except the omission to keep a book which, although no doubt useful, .was not absolutely essential. The fact that a person neglecting to keep books usual in their trade rendered them liable to two years' imprisonment with hard labour ought to be generally known. More care was needed by a person in keeping books, in case they became bankrupt from any cause whatever. If they do not become bankrupt it did not matter if they kept books at all. He (Judge Conolly) need hardly say in the accused's case, as he had already intimated to the jury, he should only pass a nominal sentence. He was glad the jury had convicted.