BANKRUPT IN COURT.

New Zealand Herald, Volume LXVI, Issue 20257, 17 May 1929, Page 15

BANKRUPT IN COURT.

[HEAVY DEBTS CONTRACTED.

MOTOR SERVICE FAILURE.

ACCUSED GRANTED PROBATION.

Stated to have commenced a servicecar business with a capital of £l2O, and to have filed in bankruptcy, a year later with debts totalling about £llOO and no assets, lan Mathcson Nairn was ghargnc! in the Police Court yesterday with failing to keep proper books and with contracting debts when he could have no reasonable prospect of paying then:. Accused pleaded guilty to both charges.

For the Crown, Mr.- Hubble stated that Nairn had commenced a service car run between Auckland, To Aroha and Waihi in July, 1927, with a capital of £l2O. He had ceased the service in January, 1928, but did not file until the following July, when there were some £llOO of debts, while there were no assets. His creditors would get nothing, as the cars had been seized. He had kept no proper set of books, the only record being a bank passbook in his wife's name, which he operated under a power of attorney. There was nothing iu the account. At the end o! November, 1927, Nairn owed sums totalling £236, and his only asset apparently was the service, which was worth nothing. After that date accused hud contracted debts totalling £BOO. Did the money go into the business or in fast living?" asked the magistrate, Mr. F. K. Hunt.

" Into his business," replied Mr. Hubble. " There has been a suggestiou that his drawings had been heavy. At a meeting of creditors it was moved that the case should be placed in the hands of the Crown solicitor, but it was not seconded. The official assignee felt that lie should take some action in the matter on his own. The position is a difficult cue, as accused has a wife and five children, the children all being under six years of age. The youngest are twins about two or three months old." Accused was not at present living with his wife, added Mr. Hubble, and the latter was Struggling along with the children. Mr. Bryce Hart said accused had made provision for the family. The wife collected £3 a week from Nairn's present employers. Nairn at present was engaged in driving a service car, and lived at Te Aroha, at the other end of the run. Leniency was asked for on account of the family. In admitting accused to probation Ur two years the magistrate made a special condition that he should live with h:hl maintain his family. Should he fail to May with his wife, action would be taken immediately.