GROCER’S DEBTS

New Zealand Times, Volume LII, Issue 12195, 21 July 1925, Page 6

GROCER’S DEBTS

CRIMINAL PROCEEDINGS “NO REASONABLE EXPECTATION OF PAYING" CHARGES AGAINST MAILMAN . Charges of incurring debts without any reasonable or probable expectation of being able to pay them as well as all his other debts, were preferred against Alfred Eaton Mailman at the Magistrate’s Court yesterday before Mr F. K. Hunt, S.M. The debts were £56 3s 3d from Ellis and Manton, £lO4 5s 8d from Buiok and Co., from J. B. Mcßwan and 00., Ltd., £lB 3s Bd, and from A. 9. Trengrove and Co. £29 8s 6d. Mr P. S. K. Macassey appeared for the Crown, and Mr C. A. L. Treadwell fox the defendant. Outlining the case for the prosecution, Mr Macassey said that the informations were laid under the Bankruptcy Act, and, the defendant was liable to two years’ imprisonment. In October, 1923, Mr Moore, the largest creditor, took out a statement, of the bankrupt’s affairs, and this showed that the liabilities exceeded the assets by £6OO. Subsequent to this the debtor still carried on business, and when he filed his petition in May, 1924, he gave his liabilities as £971 4s Id and his assets as £4lO 16s. The actual liabilities were proved to be £985 14s lOd, while the amount realised on the assets was £214 17s lOd. TWO SHILLINGS IN POUND These .statements were endorsed by Samuel William Ruiju Goring Tansley, the Official Assignee, who detailed the minutes'of the meetings oif creditors held at his office. Mr Macassey: What has the bankrupt paid up to the present? Witness: Two shillings in the pound Frederick William Moore said that he was a creditor to the extent of £645. In February, 1923, he became anxious about his account, and drew the defendant’s attention to it. The latter stated in ' reply that the position was quite satisfactory as he was expecting money from Wanganui, and was sure that ho would be able to make a full settlement. They, then agreed to allow the account to stand over for the time being, and it was arranged that he should pay cash for his purchases in the meantime. In October, 1923. witness investigated the defendant’s position, and . found a deficiency of £690. Mailman was informed of the Btate of his affairs, but gave no reason whatever as to how it had come about.

Mr Macassey.: You stopped his credit in October, 1923? Witness: Yes.

Mr Treadwell: He kept his arrangement that he was to buy only from you?—Yes, for the lines we could supply- . .

Mr Macassey : When you went into his. affairs in April, 1924. how did you find them? —Worse than before. SERIOUS ALLEGATIONS Charles Bridgjer Walker, solicitor of the previous, witness, said that he had helped to investigate the defendant’s position. He. had insisted that the -losses could . not have possibly been #made during the ordinary course of trading, and alleged that money had been improperly . withdrawn from the business. • He told the defendant that he must take proper steps to put the money back- into the b ual . n © Sß > and a promise, to that effect had been given. On November loth, 1923, he again saw the' defendant, who was again unable to make any explanation. Witness then informed him that unless several hundreds of pounds were put into the business forthwith bankruptcy proceedings - would he taken, and that these would lead to a public examination. Representatives of the firms mentioned in -the- charge testified to the amounts stated above. STATEMENT OF AFFAIRS 'Arthur James Petheriok, a public accountant, said that he prepared a statement of the defendant’s position in June, 1924. He said that the defendant started business in February, 1922, with capital amounting to £55 11s sd. , Mr Macassey: Did he make any profits t Witness: No, he had a loss. Mr Maoassey: What were his own expenses? Witness: From, February, 1922, to the day af bankruptcy they amounted to £142 8s lOd. The magistrate: From the hooks did he appear to he solvent? Witness: From the books he appeared to be insolvent. Mr Macassey: What profit: should a grocer make? Witness: Twenty per cent. gross profit on his turnover. Mr Macassey: What was bis turnover ? Witness: £5821 Is 3d. The magistrate: That should show a profit of what? * Witness: £1164 4s Id. whereas his trading account showed a gross profit of £237 10s sd. His Worship: There must be somo mighty cheap groceries in those parts. Mr Treadwell: Mr Petherick’s idea of profits is a little gross. Mr Macassey: What were his exf**Witness: £6Ol 7s 4d. That equals 10 per cent, of his turnover, and results in a net loss of £363 16s lid. What was the amount of cash not banked ?—£1434 18s Id. What was the amount not accounted for ?—£24B 8s 2d; out of the amount not banked £llß6 9s lid was paid out in cash payments, and the amount not accounted for is the difference. The loss of capital was £SOO, and during the period the bankrupt was £750 to the bad.

Mr Treadwell: Did you know he came from a business in Karori, which he left with a-debit of £170? ■ Witness: Yes. He had debts amounting to £162 15s lOd when he started, part £ll 11s private debts. Mr Treadwell: Then he did not have any capital when ho started at Island Bay P Witness: He had liquid assets amounting to £67 9s 7d in the hank. This concluded Hhe evidence for the prosecution, and the defendant, who pleaded not guilty, was committed to the Surpmee Court for trial. Bail was r’ l —•‘“l at £IOO on his own recognisance. - 1 .