MORRIS BANKRUPTCY,

New Zealand Herald, Volume LXI, Issue 18710, 16 May 1924, Page 7

MORRIS BANKRUPTCY,

CASE FOR THE DEFENCE.

QUESTIONED AS TO FLIGHT.

"AT A LOSS TO EXPLAIN."

The trial of George Morris, builder, who was charged with having left the Dominion while insolvent, with £20 that ought to have been divided* among his creditors, and also with having concealed property belonging to his estate, and having incurred debts when he had not reasonable or probable ground for ' believing that he would be able to pay • them, was continued in the Supreme Court, before Mr. Justice Herdman, yesterday.

In opening the defence, Mr. Finiay submitted * legal point, which he asked the Court to reserve, namely, that the debts of accused were incurred in discharge of an obligation already estabhshed by contracts. His Honor noted the contention.

I Addressing the jury> Mr - Fioky said the banks' markings on the cheques placed before the Court showed that they had been cashed in notes of small denominations and other cash, in a way that made it obvious that accused was using them for the payment of -age* •Morri^V 8 Shvn M evidence that ISS i a 1" mak:n S his Payments, could have had no f money with him when ho left the country— had taken nothing and concealed nothing. As to the charge «.SShf' mCUn ' ed debls when *™ h »d no reasonable expectation of being able to meet them, the fact was that in the rush and complication of the four large contracts on winch he was engaged, L had no chance of balancing fail accents and ascertaining hew he stood George Arnold, who was Morris' loreman painter, David . Simpson, foreman carpenter Albert L. Rogers, %X Arthur Bater, building foreman/ and .£ &ma f, Ba ,» carpenter, were called to show the largeness of Morris* expenditure on labour. .Rogers, who -had often helped accused in making up his paysheets, said the amount ordinarily was from £180 t0,£200 a week and on one occasion as high at £260.

Accused in Witness-box. Accused, in evidence, said he came to Auckland five years ago, worked for three years as a journeyman and then two jears as. contractor. When he took the contracts for balding houses for Messrs. Walker, Hodgson, Wake and Thomas, he was, he believed, in a' perfectly sound cl hl m posifc i on '^ , } t 'A™ «»*«*ts X? X. ™ tnal balance made in December, 1922, showed him to bo solvent. The mam cause of his bankruptcy was that , merchants took his orders for goods and then, without Indicating such intention, failed to deliver them, or delivered them late. The result was" that the men on all his jobs were without sufficient pressure of work, He also believed now that his contracts were taKen at a low price. Mr. Justice Herdman asked if that S™ ®, enfc to M count for the loss of £4000 in four months. ..-■■■ Accused said he could not believe his deficiency was so great as £4000. His own last trial balance showed only £2300 of deficiency. • His Honor: Where are your books I cannot say. I left them behind in a drawer of my desk, in my office on New North Road.

Mr. -Frnlay pointed out that figures supplied by the official assignee's office showed a reduction in the total of the shortage in the estate by £1502. - . "What Made You Go?"

Further .examined, accused said 'his receipts between January ■ and May amounted t0,£5083. 'The amounts paid out through his bank accounts were £wl and cash payments, which he particularised, totalled £2042. His payments for wages amounted to' nearly £200 a week. All his wages debts . were paid up to April 27, .1923 with the possible exception of £15. When he arrived inWellington from Auckland he had only £4 16s in .hi 3 possession. ■ By working in Wellington he earned the cost of his passage to Sydney. Had the . merchants stood by him in the supply of material he was , sure he would have fulled through his difficulties. With all the architects, except one, lie had trouble in getting certificates for reasonable proportions of the amounts earned. On May 8 he completed a trial balance which showed that he was £2300 in arrears. ' It was that, night that he went away— he had not contemplated it till that day. • His Honor: May I ask what made you §? "—That is the remarkable thing, Your Honor. .J am at: a loss to explain that. An irresistible impulse, : perhaps 7— Well, it is the only thing I am ashamed of, I was certainly not in my right senses. ' .. ■ ...

Accused said that on arrival in Melbourne he took a job and at the time of hiß : arrest he "was ' actually working 'as a bricklayer. Of the £750 \he drew • from one banking account practically the whole, went in wages. : He took no money awaj\ with him and concealed nothing of his assets: iAU i. his took and i appliances were left in the state. of a going concern. ;;V Mr. Finlay: ; Your : losses accrued mi quickly that ;it was urirealisable on it went ; on?—ThatV is " so. -*"~ ''■:•*'■ "' ~ '

Started With £36 Capital. ■-.;'. To "Mr. Paterson (for /the Crown) t> When he started business on his own account he : had ;'£3s of capital. Subsequently he" put into the c: business £300 that ■.. was cabled to him from Australia by his mother, money which he had previously left with her. Hodgson's job was kept by J:the merchants waiting, for timber for four. months. > The men were on the job all this . time and his foreman assured him :he had sufficient work to keep them ; going. r -fi' V; ••; Asked by His Honor : how this "fitted; in with the statement that the job, was waiting for timber, accused said he had jan explanation, but had not sufficient command of English to make _ it. - 'In; reply to a series of questions frcm Bench and counsel as to what name ha gave to the people whom he lodged with or worked for in differtnt parts of Wellington, accused's regular answer was "I haven't the slightest idea." Nobody, no explained, had sufficient interest in him to ask his name—either landlord or employer. - ■•„-'/ \ - Under further -. crosfe-exa|inmatlon, accused denied he had lived with a certain widow, or corresponded with .her while away," but afterwards ■■■ admitted that she followed him to Melbourne and was living with him as Mr. and Mrs. Leslie Darris at the time of his arrest. It was not true he had-sent her money, or that she had handled any of his money. , ■ -, ° - To. Mr. Pinlav : He v had searched for his books since* his return to Auckland and could find no trace cf them. , Mr. Finlay having addressed the jury for the defence, the Court adjourned till: tbfts morning. '-■ ■ . ■■■i' : '- : ;;..;" \