BANKRUPT BUILDER.

New Zealand Herald, Volume LXVII, Issue 20562, 13 May 1930, Page 10

BANKRUPT BUILDER.

TERM OF IMPRISONMENT.

FAILURE TO KEEP BOOKS.

MOVE FOR NEW TRIAL.

APPLICATION BY COUNSEL.

1 Three months' imprisonment without hard labour was the sentence passed by Mr. Justice Smith in tho Supreme Court yesterday on Clarenco William Bruce, builder, who was found guilty on a charge of failing to keep proper books within three years prior to bankruptcy. This was the second of two charges, sentence on tho first, that of wilful failure to ko.ep proper books, with tho intention to conceal tho true state of his affairs, being deferred pending Ilis Honor's decision on an application by counsel for tho defence for leave to apply to the Court of Appeal for a retrial.

Mr. Jordan, for tho defence, asked that tho loss of a certain book should be taken inlo consideration as mitigation of tho penalty. Bruce had left no unsecured creditors, and thero was no evidence of deceit about his financial standing. He was only 26, and his previous record was unblemished. Counsel produced a doctor's certificate that Bruce suffered from rheumatoid arthritis. Whatever punishment ho was likely to reccivo would have further effect, as ho had yet to apply for discharge from bankruptcy. "Something Not Yet Explained."

For the Crown, Mr. Hubble said tho jury had been told clearly that if it camo to tho conclusion that tho prisoner had kept tho missing book ho must bo acquitted. Tho trial had demonstrated tho difficulty experienced by creditors when proper records were not kept. Breaches of tho Bankruptcy Act should not bo dealt with by probation or the suspension of discharge.

His Honor said the circumstances of llio book made matters very difficult. 110 realised tli.it there were no unsecured creditors, but there was something in tho case which was mysterious, and which had not yet been explained. 110 would tako info account tho fact that tho prisoner was.suffering from rheumatism, but it was not usual to grant probation in bankruptcy cases.

When tho case was concluded last week Bruce was found guilty oh a charge of wilful failure to keep proper books, with tho intention to conceal the true state of his affairs, which, in reply to His Honor, tho foreman of tho jury said really involved finding him guilty on tho second count of failing to keep books within threo years prior to bankruptcy. Leave to Appeal Sought. Mr. Jordan said he was unable to accept tho verdict of tho jury, and ho asked leavo to apply to tho Court of Appeal for a retrial. 110 said his appeal was on tho ground that tho verdict was against tho weight of evidence. 110 submiited that Ihero had been no evidence before the Court that accused had wilfully sought to conceal his affairs or wilfully failed to keep proper books of account. In traversing many points of evidence in support of his submission yesterday Mr. Jordan said thero was no evidence to show that the prisoner had suppressed or omitted to record any records from which tho cash book or book of primary entry could be compiled. Mr. Hubble said he thought there wail no ground on which tho Court of Appeal could grant a new trial. He admitted that intent had to bo proved, but it might bo proved by inference from other proved facts. It was clear that the jury was entitled io find that tho creditors had not received tho proper information, and, in fact, that tho prisoner had concealed the truo stato of his affairs. Thero was tho definite evidence oi accountants to show that tho true state of affairs had not been placed before tho Court or tho official assignee. His Honor said ho would consider the matter and givo his decision as soon as possible.