A BANKRUPTCY CASE.

New Zealand Times, Volume XXIX, Issue 6326, 28 September 1907, Page 8

A BANKRUPTCY CASE.

CRIMINAL PROCEEDINGS.

CHARGES OF IMPROPER TRADING.

PHESS ASSOCIATION. AUCKLAND, September 27.

Several charges under the bankruptcy •Act 1892, were laid against Alexander Paterson at tho Police Ctfurt to-day before Mr Dyer, S.M. The accused, who had lately boon trading in Hawera under th© name of » rt-.oii Bros., drapers, was adjudged a bankrupt in September of last year. His liabilities totalled <£IB,6SB and assets XY3Io, leaving a deficiency of £11,343. Mr Fallon appeared for the Official Assignee. Mr J. R. Reed appeared for accused. . Mr Fallon, in opening, said the proceedings were taken under section 137 of the /Bankruptcy Act, 1892, .subsections 3,4, 9, and 11. Three of the chaigts were laid under subsection 3. Accused was charged with contracting debts "without any reasonable or proper expectation of being able to pay. Under this heading there were three sums, as follows:—Heath, Schio?G and Co, £IB7B, James Hodgson £2O, Sargood, Son, and Evven £52, It was alleged that there was rash and hazardous speculation, and accused was further charged with failing to keep proper books and failing to discover property to the extent of £53. Tho investigating accountant had been unable to discover the bankrupt's position from tho books. Ernest Gerard, Official Assignee, said he examined the books after the bankruptcy, but found them to be in such a state that he could not make anything of them. At the time of the bankruptcy the creditors desired to make a private assignment of tho estate to witness, but he objected. It waa then suggested that bankrupt should file. He at first refused, but was afterwards persuaded to do so. .

Mr Reed: Do you suggest that bankrupt in any way misappropriated moneys to his own use?—No, ' not to my knowledge. William McCutcheon, a public accountant, at present accountant for Bowron Bros., Christchurch, said he went to Hawera, and found the books produced, but could not make an accurate statement as to Paterson’s position. Ho considered accused a man capable of carrying on the business, and one who should know his position. In a conversation with the accused, witness said it was a pity he did not make known his position some two or three years before, and the reply was that he was “hoping against hope” to recover himself. To Mr Reed; Having gone fully into this matter, and inquired into' all circumstances, witness had no reason to believe that accused had misappropriated either money' or goods. Tho personal expenditure on accused's family for their, upkeep did not exceed £3OO per year. Accused pleaded not guilty, and reserved his defence. He was committed for trial. Bail was allowed.