ALLEGATION OF FRAUD.

New Zealand Herald, Volume LX, Issue 18551, 8 November 1923, Page 11

ALLEGATION OF FRAUD.

A COMPANY PROMOTER.

MELBOURNE CASE OPENS. DEALINGS IN NEW ZEALAND. An allegation of fraud was made against George Cooper Bond, a company promoter, when a compulsory certificate application was heard in the Insolvency Court, in Melbourne, last week. Judge Moule presided. Mr. Menziea represented Bond, and Mr. Walker appeared for the trustee and the National Bank, an opposing creditor. Mr. Walker said the National Bank made an allegation of fraud against Bond. In March, 1919, insolvent was carrying on business in Melbourne under the name of the Bond Manufacturing Co., of which he was the sole proprietor. He had a private account at the Elsternwick branch of the bank, and opened a business one in that month. The bank alleged that Bond gave it a draft on Brown and Dureau, a New Zealand firm, for £517 ,16s lid, and the document was returned dishonoured. f Judge Moule said as a rnlo such an offence was tried before a jury, but if in his opinion it merited punishment, that would bo less severe than if a jury had considered the case.

Mr. Walker said he asked his Honor to deal with Bond. Insolvent had had transactions with New Zealand firms, which had rejected the goods sent, six months before. On March 31, 1919, his private account was overdrawn, and to make it look well on that date he put in another draft for £1425 on Hislop and Co., a Brisbane firm of high standing. His own books showed that that company did not owe him anything. That draft was also returned dishonoured on April 11, on which day he lodged another one, on Wills and Co., of Brisbane, for the same amount. In the space of a fort night Bond got something like £4000 from the bank. It was a bold act, and was done quickly. Instead of dealing drastically with him, the bank sent for him to see what he could do. He lodged search warrants for 1000 cases of salt, which he said were of considerable value. 'They, however, realised only a small sum.

Comments by Judge. Judge Moule remarked that if a man had broken into a house and stolen £1000 worth of goods there would Be columns in the newspapers. This man, if Mr Walker's allegation!! were true, had got to the bank for £3000, but the puolic heard nothing of it for years. It was just, as bad as burglary. His Honor ,could not understand how an institution could be taken down in this way. The fraud put was the most shocking fraud that could bo imagined, and yet nothing was done.

Mr. Walker supposed that the bank thought that it would be better to try to get money from him instead of putting him in gaol. •Mr. Mcnzies: There never had been any allegations of fraud made by the bank.

His Honor said the best insurance a, bank could have would bo to punish a man while his offence was fresh. ' Mr. Walker said there was no semblance of reason for Bond drawing against the firms. Ho called on Bond to enter the witness box.

Mr. Menzies objected, and said {he allegations should bo proved before insolvent was subjected to a fishing inquiry. It was grossly unfair that a man charged with a criminal offence should bo put in the box in such circumstances.

Insolvent Gives Evidence. Insolvent gave his name as George Cooper Bond. Mr. Walker: Were you ever known as Arthur? Witness: No. When did you become George Cooper Bond?— I was confirmed, I believe. Witness added that be opened a new account with the Elsternwick branch of the bank on his return from Mew Zealand in March, 1919. He had had accommodation up to £400 without security. He asked Mr. Jones, the local manager, for an overdraft up to £4000, as he had a contract with the. Farmers' Co-operative Federation of New Zealand which ran into a gross total of £30,000 and a net profit of £5000. Witness had secured an order for salt from that firm, and foCa 1 a contract for its purchase from the Standard Salt Co. of Adelaide. Jones suggested that security should be lodged, but witness told him it was encumbered at the Bank of Victoria.

Mr. Walker: Had the Bank of Victoria been dishonouring your cheques? Witness : Yes. You were drawing cheques or; that bank and cashing them in New Zealand? —Yes. Witness added that he cabled to Jones and a friend. The latter paid the money necessary to cover the cheques. About £160 was involved. On the case being adjourned, Mr. MenHires mentioned that Bond would have to appoHr in the Practice Court regarding a habeas corpus application between insolvent and his wife concerning a child.