TROUBLE OVER DEBTS

New Zealand Herald, Volume LXIX, Issue 21248, 30 July 1932, Page 11

TROUBLE OVER DEBTS

TWO BANKRUPT BUTCHERS BREACHES OF ACT ALLEGED COMMITTAL FOB TRIAL [nY TEr.KGIt.M'I! —OWN COIIBESI'ONDENT] NEW PLYMOUTH, Friday Charged with conducting business in a manner which brought them within the provisions of the Bankruptcy Act, William Edmund Reesby and Thomas Charles Reesby, formerly butchers of New Plymouth, were to-day committed for trial by Mr. 11. W. Tate, S.M. They pleaded not guilty to eight charges. The charges were that the accused had on various dates contracted debts with individuals and firms without at the time having any reasonable or probable expectation of being able to pay those, as well as all their other debts. They were each charged with failing during a period of three years prior to the commencement of the bankruptcy to keep proper hooks of account. Tho amounts involved totalled £lOl7, the debts, it was alleged, being contracted between May and August, 1931. S. G. Cooper, manager at Eltham for the New Zealand Loan and Mercantile Agency Company, Limited, gave evidence of tho contracting by tho accused of a debt with his company/ of £259. Witness said the debt was still owing. It was incurred between July 13 anil August 1, 1931. So far as witness knew there had been no previous transactions between the accused and his company. Stock was sold and delivered to accused and not paid for. Evidence ol Other Debts John Forbes, farmer, Normanby, said lie had had no dealings with accused prior to August 3, 1931. Between that date and August 10 ho sold stock to theni for a total sum of £lO9. Judgment was obtained against them on October 7. The debt had ijot been paid and was still owing. They nad not told him anything about trouble they were having with the Loan and Mercantile Company, on account of non-payment of debts. No term of credit had been arranged with the purchasers. Mark 11. Barnitt, stock dealer, New Plymouth, said he had had dealings with accused for two Or three years. Between April 13 and July 1, 1931, they incurred a debt with him of £242 for stock. Witness said the debt had not been paid. He had supplied them with stock since that time, but on a cash basis. J. S. S. Medley, deputy-official assignee, said that statements made by the accused after their adjudication in bankruptcy showed that they owed unsecured creditors £1697 and secured creditors nil. Book debts, £47, were estimated to produce £37, leaving a deficit of £1660. W. ! E. Reesby showed unsecured debts £33, and secured creditors £BBS. The estimated value of the security was £llsO, and the surplus £231. T. C. Reesby showed unsecured creditors nil, and secured creditors £IOSO. The estimated value of the security was £1350, and the surplus £3OO. Position of Properties Proofs of debfc lodged against Reesby Brothers amounted to £2207, continued the witness. There was no value in the accused's house properties above the amount of tho mortgages, and he (witness) did not regard them as assets in tho estate. Book debts realised only £4 Is lid. Books of accounts as produced consisted of a bank pass book, two day books, a monthly account book, and a time and wages book. Bankrupts said they had never taken out statements of account or a balance-sheet and that they kept no record of their stock purchaser From the particulars supplied to him witness was unable to ascertain either their assets or liabilities. From statements made by bankrupts he learned they had been in business since 1925. In April, 1931, they gave their father security to obtain £985. At that time they owed the bank on overdraft £493 secured by debentures to about that amount. They each owed money on their house properties, but witness did not think there was any equity in them now for the bankrupts,. They owed unsecured creditors from £SOO to £6OO in April, 1931, but witness was not able to confirm that figure from the bookg and papers in his hands. At the first meeting of creditors bankrupts stated they owed unsecured creditors about £ISOO. said witness. He was of the opinion that in April, 1931, they were insolvent, even allowing some equity under their mortgages. Their position became worse in succeeding months. Tho accused were committed for trial.