RECKLESS BANKERS.

New Zealand Herald, Volume LXI, Issue 18771, 26 July 1924, Page 11

RECKLESS BANKERS.

SERIES OF LAND DEALS, * I H. P. ■'MORTENSEN'i ' aMjHS. f DISCrIARGE REFUSED BY JUDGE. \ ;/'Such :^a;n|aiß;Js': 'Bpt' 8t to carrv on p husinoiss on his own account and mcur liability," said Mr; Justice Stringer at a | bankruptcy sitting at the Supreme Coort | yesterday, when refusing a diecharge to | Haas Peter Mortenson (Mr. Acdareon). Sir. Newberry, on behall of the official \i at;{«gnee and certain creditors, opposed | tile apphcatiori. while Mr. Irider, repre- • | senting three creditors, supported it. .'•'."- | Mr. Andersion said that when banlsrupt ; was Adjudicated bin schedule sitowed that he had assets which were mora than sufficient to meet, all bis liabilities!: His estate consisted mainly of property at J. Cheltenham Bieach and a quantity of grasa-eeed- on a farm in the King Ooun- ! try. He made efforts to. ■reaclb a com.- I premise with: hia creditors, and nearly every one consented to receive 4s in the £. It was, however, impossible to carry if | out the compromise.- The Cheltenham i ! property was eubiect to two mortgages, j one for £5500 and the second for £2400, .. jThe second mortgage was held by a man named Rassie, described as a Syrian banker, and this mortgagee realised under his; mortgage, and himself became the pur- j. chaser. Rassie sold the propertv at auction, wild it fetched about ; £12.'300, The grass seed, which bahkrupt valued at £500. was Bold by the official assignee for £10, Prior to making application for his discharge, counisel continued, bankrupt had ; | offered to give promissory notes to his > creditors, payable in 12 months' time, for 4o in the £, which previously they had • agreed to fcslie. At a meeting of creditors ; a vote againiit facilitavtin}[ bankrupt's die- I charge was recorded, the most considerable voter being Ro&sie. Counsel con- . tended' that- Rassie iihoald have been elinv i iriated from voting as ho had realised . .'{ under; his security. Apart from thai, there was ii fiiabstantlal vote in favour oli! facil- . I itating the dischargu. ''fhere was lio sUg- . i that Morteneen had committed, any i offence against the bankruptcy laws. ! Statement by Bankrupt Bankrupt, in evidence, said that he estimated his assets at £18,000 at the time of his adjudication, and his unsecured debts at £4000. - The Cheltenham . property had been valued at £12,282, *nd allowing for the two mortgages he had :<•:■'■ an equity of about £4000. The actual j" cash advanced by Rassie was £1000, the balance, £1400, being a bonus. In other words, he only obtained £1000 for the ; £2400 mortgage,;, i.bu'jj'i;.iat. the time he deemed it good busin,esa to make that deal; "!-■;'., -, ./■ .■■■.■ To Mr. NewbaiTy, bankruptwdd J he ex>pected to get; some money from nhi mother's 'estate. -■!» ?-. •■ -Mr. Newberry: It would belong to this : bankrupt estate. Continuing, counsel suggested /that; bankrupt was offering promissory notes in * a pure gueea as to what he might receive. '. - Bankrupt said he was not at all.- He : :had got his information from' relatives.] His mother died when he waa seven years old. V How much/iare you going to get?-s'-X «Jo not know what it will be. but titer* will ,be enough to pay 4s! in-the fi. Counsel aubmittidvthat men like Mori tensen should not be freed to inflict debts on ; the public arid \the business community. '- ;■'■';". i: •' • "Ohanca of Mr. Inder said he supported the application because his clients saw a chance ®i getting something ; from bankrupt. It was -to the advantage/of: creditors . thut the .discharge ':• be' granted. Mortenaes a punishment would then be that he was fined ■4a In the £. { ■'■;, -HjsiHonohryWhatdsjhis trade? Mr. Anderson gaid it was difficult to , - define it, but he had a very special, knowledge, of , valuea,. jiand; recently had been eniployed'by'aVpnhcipal' 'of Mr., Nsvrberry's firm. ; There was no evidence that, banlcrupt had preyed on the community. <'!" ; ' ~* ■ : . r, Hia Hcnor, ; in refusing the application, said theiofficial assignee's report .showed that affe- bankrupt's .assets ;had been his liaMHUesV .were : £7405,:, gad O .his assets. £38. .', -vProbably ■ there-was: a .good reasori.why £10 v was taken for the 'grass seed. Enuring the past five yeaxa Mortenseni /pad systematica'ly gambled in - f land, .and:. Appeared to have :.. put through 22 trahsacti/snsjfhis capita! being an equity in a property. He had kepi no books, ■,' and ft wftstiimpossilile to trace moneys'received or paid, away: A, subutantia] num- : her of Ibis vcreditors, and the official assignee, were opposing :his discharge. His Own admission: that he wan - prepared to :.; bprrbw|£looP; and; pay ■ a bonus of £1400 : ; for the advance showed his utter reckiess-;: • ness; His. absurd , optimism was, Hiu Hpndrlthought, shown,/by the fact; that ho was prepared to pay 4s In 4 the £i fdurided on .an : expectation- urider his -. mother's will, althijogh he did nbti know ! how. much he wa^'; to get. If; he. had ■:';'.; .talents in buying and selling property he should ba retaintjd by A s6ine responsible . ;! peroon, v.'ho .would.give him employment. ■ mes. V MdETSKSsf 'si,' : v : ";. ■ no opposrnox' to discharge. : When Katherine Annie Mprtenserij:(Mr..--'..: : Gatenby),!wife of;'Hans Peter Mortensen, " i applied for a discharge in bankruptcy, the • official assignee said there' was no cause ; why-her applicfttbn! should hot brgrantedi,! provided she gave an understaridirig pot to aUow lier name to ber:used in any transaction iybdbre her husband got his discharge. He was, however, assured that there was no chance of the parties coming together again- .>-'•■.• His Honor said: such an tmderstahding : would be nothing ];but a moral obligation. ; ; He could not; bind : the applicant. : No;: cV>ubt her Bolicitor would caution'her; Ho : . granted the" discharge.