BANKRUPT'S CONDUCT.

New Zealand Herald, Volume LXVII, Issue 20482, 6 February 1930, Page 9

BANKRUPT'S CONDUCT.

COMMENT BY MAGISTRATE.

BREACHES OF THE ACT.

SHORT TERM IN : PRISON,

[BY TELEGRAPH.—-riBESS ASSOCIATION.] GISBORNE, Wednesday.

Strong comment was made, by the magistrate, Mr. Harper, in the Court to-day in imposing sentence' on Ellis Fenwick Martin, a. bankrupt pastrycook. Martin had pleaded guilty, to two" charges, (1) that being a bankrupt ho did, within tlireo years of tho commencement of his bankruptcy, fail to keep proper books or accounts, and (2) that he incurred a debt of £l9 19s 6d when he had no reasonable or probable expectation of being able to pay it or other debts. The second charge related to the installation of fittings in a second shop run by bankrupt, it having been arranged that he should pay cash. .The, magistrate said it was a very grave breach of tho Act. Accused started in business with little or no capital and from the first his business seemed to havo been a complete failure. Instead of trying to curtail expenses as much as possible, however, accused launched out and opened another branch shop, from then on apparently living on credit obtained from tradesmen and other creditors.

"111 July last, when his position was quite hopeless, ho incurred a debt of £l9 19s 6d, which he promised to pay forthwith," continued tho magistrate. "He must have known he "had no prospect whatever of' paying this debt and his action is tantamount to obtaining goods by false pretences. It seems to mo, judging from the number of bankruptcies we read of in which it is shown that no books are kept and credit is obtained wlien bankrupts have no expectation of being able to pay the debts, that the public have come to look upon tho provisions of the Bankruptcy Act as a dead letter. This is not so,' and I think tho only thing I can do as a penalty for accused and as a warning is to impose a short term of imprisonment." '

On the first charge accused was sentenced to 14 days' imprisonment with hard labour,' and on the second charge he was convicted and discharged.