ALLEGED BREACHES OF THE BANKRUPTCY ACT.

New Zealand Herald, Volume XXXIX, Issue 11871, 24 January 1902, Page 3

ALLEGED BREACHES OF THE BANKRUPTCY ACT.

The hearing of four informations, : charging Charles Albert Bloomfield with broaches of the Bankruptcy Act, monopolised the attention of Mr. 'J. Gordon and the Hon} Shrimski, J.P.'s, practically the whole of yesterday' at the Police- Court. < The charges were S that accused, on September 9, 19U1, was adjudicated;: a bankrupt, and ; that the jbankruptcy was; attributable to rash and hazardous speculations ; and that he, being a .'person adjudged a bankrupt, he did, .between the months of Juno and July, 1901, ; unlawfully contract a debt' for the sum of . £20 :5s 5d with the firm of Little and Little, and for the; sum iof : £89 ': 3s : 3d"; with the Loyland and O'Brien Timber Company, Limited, ". and with the Waitemata Sawmills Company for £29 6s when he "could; not have had at ,the time reasonable or probable grounds of expectation of being able to pay the same as well as his other debts.'',.

s Mr. Blair >(instructed by the Hon. J. A. Tolo, ? Crown Solicitor) represented the prosecution, ; and Mr. Brookfield defended accused, who ■■■ pleaded not ■ guilty to all the I charges. -.':'_ ';.*■ ■>■■=- '.■■ - a:; ;,. .■.../:;.■; ■ ~:; . : ' [ Mr. Brookfield read a passage from the |, Bankruptcy v .< Act,' which stated that cases similar to the present ones under the revision of the Court; were permitted by. the Act to bo dealt with in the lower Court, and in consequence ho would apply to the Bench to have the cases dealt with summarily. Mr. Blair' said that the cases were of considerable importance to the whole community, and for that particular ; reason-he thought that 7 they should go before a jury in the Supreme Court. ;,.•• After ,a brief argument by counsel, 'the Bench agreed to deal with the cases summarily. ~.'.;'■■■■;';. :;'v:,. ; ,;' : . . '■ ■'. H "'■ In outlining ; the ; case for the Crown Mr. Blair said that the primary particulars of the proceedings were that accused was adjudicated , a bankrupt on creditors' petition on September 9, .of last year. His liabilities to unsecured"' creditors were £249 15s ,4d, showing assets of £156 8s 2d, leaving a deficiency in his estate of £93 7s 2d. .It would be shown that his assets only realised £58 16s sd, which left a deficiency of £190 19s lid to i unsecured creditors, ; which it was anticipated would only realise a dividend to the creditors of 2s 3d in the £. Previous to - June iof 1901, the .bankrupt had been in business in Whangarei, and when he left that town he owed the sum of £86, and, as was ascertained, he had -no; assets. Some of these creditors had sued for their money, but with no effect. In the month of October, 1900, accused purchased from Messrs.'Ewington and Baker three allotments of ; land in , Haslett-street, Auckland, for £70, paying £10 deposit. ' There was no evidence to show ■ how, accused received ■ this £10.' Shortly afterwards, - accused : commenced building on the sections of land, and one house built, and when the other was in the course, of., erection the accused was adjudicated a bankrupt. -It would seem!from; the evidence that as soon as accused got the first house; built he mortgaged it for £150, j 'and then paid off £50, the balance for the; purchase .. money [of 7 the land: , There ; was' also a second mortgage of £100 for the; section. ' Accused : incurred debts amounting to £138 13s lOd with Little and Little, Leyland and O'Brien Company, "■ and the Waitemata Sawmills Company; all of which were unpaid. * The proceedings . were instituted under sec-' tion 137 of .'sub-section. 2 of the. Bankruptcy ' Act. Mr. * Blair 7 submitted that it would be; | clearly - shown '. that previous to accused en-j tering info these''contracts he had no money with which he could pay the debts. There was'j evidence ho had been sued for amounts, which would show that bankrupt must have' known at the time he incurred the debts that he had no reasonable : or probable ground of expectation of being able to pay them. The statement by Mr. Blair was to a certain extent corroborated by the official assignee (Mr. John Lawson), who stated- beyond the other particulars that, being intimately acquainted with accused's affairs in general, he would not hesitate in saying that; bankrupt at the time he' contracted the debt ; with the Waitemata Sawmills Companj had no reasonablo or probable expectation of being able to settle same as well as his other debts incurred.

Charles C. Baker, of Ewington and Baker,' deposed to selling the three allotments of land in Haslctt-street. to accused for £70. Witness was of opinion that accused's speculation in the sections would probably prove a profitable one. V , ,

Win. C. Daldy, jun.. accountant in the firm of .Leyland and O'Brien Timber Company, deposed that accused had incurred two. different debts. with the company. The fixs't transaction accused had made a settlement in, but the other forming the present debt, he had net settled. ."

Wm. Tackle, accountant of the "VYaitemata Sawmills Company, gave evidence describing the accused's transactions with the company. David Little, of the firm of Little and Little, stated that accused had incurred a debt with his establishment for houscfurnishings to the extent of £20 3s sd. Jolui Mercer said that accxisediwas indebted to him for a sum of £2 -lis lOd for housefinishings, etc. Evidence was also tendered by Mrs. Pettie, who.deposed that she had lent accused £20, of which -accused had returned only £6. She was to receive. £5 interest on the money. This closed the case for the prosecution. Mr. Brookfield,■ in his address on behalf of the defence, said that accused might have reasonably believed that when he entered into the building transaction, that he would make a profit which would enable him T to pay the debts contracted in building speculations, and also his back debts, which were only £43, not £86, as had been stated. The Bench held that the accused might have reasonably considered that his transactions would prove entirely profitable and satisfactory, and• that he 'had reasonable grounds to think that he would be able to settle his back debts. The case of the Waitemata Sawmills Company was dismissed, and the other threecharges were adjourned for a week.