FALSE BALANCE-SHEET

New Zealand Times, Volume XXIX, Issue 6225, 3 June 1907, Page 3

FALSE BALANCE-SHEET

STOCKTAKING IN DUPLICATE. A DRAPER CONVICTED. The defence opened on Saturday, before Dr McArthur, S.M., in the bankruptcy case against Arthur Eley Waugh, a draner, lately of Palmerston North, charged with having incurred, after September last, debts -which ho had no reaeonable prospect of paying, and with having obtained goods from Arch. Clark and Sons bv means of a false balance-shoot. Mr Myers prosecuted for the Official Mr Harden, accused’s counsel, said that bankrupt's position at the time of filing, in February, was no worse thou in the September preceding. The balance-sheet woe furnished at the request of Arch. Clark and Sons, and was prepared by bankrupt’s accountant, on whore work he fully relied. Ho had no idea that the balance-sheet was inaccurate, or that ho was unable to me'* ‘ .1 -b-’-tus he contracted. In regard to his future, he had a very good opening offered him if lie could get away to-day to fill it. Ho was a married man with a email, young family, and he now threw himself entirely upon his Worship's mercy. No doubt he had been foolish: he did not face his position as ho should have done, and did not check his stock properly. At the same time,, ho was not guilty of any criminal offence or intention. He had been over-confident, out should not he branded as a criminal. If however, hie Worship decided to convict, he would ask for the greatest leniency, to enable the bankrupt to avail himself of the position now open to him, make a now start, and possibly in time repay his creditors. . Bankrupt gave evidence that in- September ho fully believed that, instead of being -£3O to tfia bad. he was -6522 to -he good At the stocktaking, effected by himself and his dork, the value was mcorrectly apscertfiined to be .£1226 14s Ojd. The orror wne due to his clerk addinff to the items dictated in the stocktaking not onlr the invoices of goods not so included but also invoices of the goods that were included —so that some of the items were counted twice. In February when ho discovered his true position, ho wired to his creditors, and at Sargood. Son and Gwen’s suggestion immediately filed. Percy Cable, tho accountant, gave corroborative evidence. His Worship said ho was satisfied that Waugh knew that he was not in a position to *o cm trading, and pay his creditors, and, further, that he had the chief hand in the preparation of the balancesheet. When asked by Mr McOosh Clark to furnish a balance-sheet, he should have been epedallv careful that it should be correct. He was, however, the very last in tho world to hinder a young man from going ahead, and would meet the case by convicting him and ordering him to ooma up for sentence if called on. Mr Harden, in thanking his Worship, anid he hoped to bo able in the future to announce that some, at least, of the luooer owed to creditors would ba paid. It mi the debtor's Inflation to do so. His Worship arid this woe id V* a very eeursa, afid would net be the fiist installea of the Had. Those Were a number of honourable “““ who, after ndeiarttma, had kin W far a tiraa and then paid off their wsedkosa in finU. He counsel on the Sr-iondly .way in which the aaso had be& cocdoct- : ed, pad aspWsead a hope that So Would iCr Haraaa heSata tip Cpurt on ’OtUCfl wwskffifi.