LAW AND ACCOUNTS

Otago Daily Times, Issue 18352, 16 September 1921, Page 7

LAW AND ACCOUNTS

At tlie monthly meeting of the Otago Branch of the New Zealand Society of Accountants last night (Mr J. G. Paterson, president, in the chair), Mr J. J. Tregear, solicitor, delivered a lecture on, “Law and Accounts ” As the title indicates, the lecture was very largely a technical one, and for the most part intended purely for accountants, it was to them a highly interesting and informative one. While it does not lend itself to reporting for the public, there were two points raised of interest to tradesmen and householders. One of these was that it was the duty of the debtor to seek out the creditor, and the fact that no account had been rendered would prove no defence to an action for the recovery of a debt. It would be incumbent upon the debtor to ascertain the extent of his indebtedness. Another point was that interest cannot bo claimed upon overdue accounts unless there is distinct proof that the debtor was informed beforehand that interest would bo charged failing payment; but if accounts were frequently sent out, notifying that in them interest was charged, and the debtor took no notice of these, the interest would be allowed in a court of law. In answer to a question, Mr ■ Tregear .stated that if billheads bore a specific statement that interest would bo charged if the account remained unpaid after a certain date, that would be accepted in a court. It would be advisable to send the account as a registered letter. Mr G. M. Mao Lean stated that he had listened with very great pleasure to the lecture. He remarked that it was probable that the Companies Act would bo brought up for revision early in the coming session of Parliament, and the local committee had invited suggestions from accountants and other financial experts. A member asked the lecturer whether, if an invoice were sent out notifying that 10 per cent, discount would be allowed if the account were settled within a mouth, the full amount duo could be recovered on an action if the account were not paid within the lime specified. • Mr Tregear said he had no doubt whatever that it could, but if a trade custom were pleaded it would be necessary to establish the fact that the trade custom was fully established. Mr Mac Lean quoted the case of bonds purchased at £Bi, which were redeemable in 17 years. That meant that, while they were nominally paying 4-i per cent., they were actually returning per cent, by reason of the 1 per cent, annual accretion until they reached maturity. Should that 1 per cent, not be added to capital? Mr Tregear thought it should. He referred to the case of a house bought for £6OO. The life tenant, who received the rent from it, had recently died, and the house was sold for £I4OO. Though it was apparently unfair to the life tenant, the whole of that accretion went to the beneficiaries under the will.

The chairman read an opinion regarding a share bought at £IOO and sold at £lO5. The life tenant was entitled only to the interest that the share returned and not to any portion oi the accrued value, which went to capital. 0 Mr Waltet Green moved a hearty vote of thanks to Mr Tregear for his lecture, which, ho was sure, had given a great amount of pleasure to all who had heard it.' He suggested that it ho published by the society; if Mr Tregear would kindly assent to that course. As the lecturer was not a member of the society, members were the moi*e indebted to him for the trouble to which he had gone, and the large amount of valuable information he had given them. Mr P. Hercus seconded the motion, which was carried by acclamation. In, responding, Mr Tregear remarked that he had derived great pleasure in preparing the lecture, and, after he had “touched it up’’ a little, he would be pleased to hand it over to them for publication.