BANKRUPT IMPORTER

Otago Daily Times, Issue 23811, 18 May 1939, Page 2

BANKRUPT IMPORTER

ALLEGED BREACHES OF ACT NINETEEN CHARGES PREFERRED ACCUSED COMMITTED FOR TRIAL Alleged to have concealed from the Official Assignee at Dunedin assets of a total value of £BO3 5s 6d, Harry Vivian Smith, an importer, of Dunedin, who was adjudged bankrupt on January 27 of the present year, appeared before Mr J. R Bartholomew in the City Police Court yesterday to answer 19 charges of breach of the Bankruptcy Act. The list of counts against the accused included 12 charges of failing to disclose to the Assignee goods in his possession after his bankruptcy, four of fraudulently removing goods after his bankruptcy, two of failing to disclose material details of his business in his filed statement of affairs and assets, and one of failing to keep proper books. The accused was represented by Mr O. G. and Mr H. S. Adams appeared for the OfficiaJ Assignee. Financial Position The first witness to be called was James Milne Adam, official assignee at Dunedin, who gave evidence of having removed certain books of account from Smith’s office. These, Smith informed him, were all the Looks he had. Smith was adjudged bankrupt on January 27, 1939 When he filed- his petition, he put in the estimated value of his stock-in-trade at Castle street at £ 100, of his bookdebts, at £77 8s 7d, and his surplus from securities at £ 150. His statement showed a deficiency of £1145 Is 6d. Since the date of the accused’s filing his petition witness had taken possession of certain goods. Leonard M. Satterthwaite, an accountant, said that his examination of the books mentioned by the assignee disclosed that they were not books in the proper sense of the word. At a minimum, one would expect to find, in the business of an importer, a cash book, a journal, and a ledger, but such books as witness had found were not sufficient to answer this test, and, moreover, they did not contain the transactions of the owner of the business, nor did they disclose his financial position. Transfer of Goods Angus McLeod, warehouse manager for Messrs Thomson, Bridget - . Ltd., hardware merchants, gave evidence of having, in February of the present year, on behalf of the official assignee, inspected a quantity of goods at Marshall’s Chambers. He valued them, and later inspected further lots of goods at the stores of Messrs Tilbury. Ltd., and of the Gain Forwarding Company. In a shed in Gladstone road, Mosgiel, witness examined further goods of a total value of £44 15s 6d. Evidence of having, on January 24 of the present year, removed a quantity of goods from the accused’s office to his company’s store, was tendered by Joseph Richard Tilbury store manager, of the Tilbury Forwarding Company. These goods still remained in the store. Arthur Vincent Gain, managing director of the Gain Forwarding Company, gave evidence of having, on August 8, 1938, cleared a shipment of goods for Smith, on condition that they were allowed to remain in the company’s store until an account owing to the firm by the accused was reduced. Subsequently these goods were removed from the store, with the exception of three cases, which were still held on the accused’s account by the company Detective Russell gave evidence of having taken possession of an oil regenerator at the Silver Fern Taxi Company’s depot in Princes street, and of a large quantity of agricultural implements and hardware stored in a shed at Mosgiel. He later interviewed the accused at his office in Castle street and took a statement from him. Charles Lester Mitchell, a taxidriver, told the court how, on January 30 of the present year, he had hired a truck on the accused’s behalf, and with it shifted a load of hardware from Smith’s private residence in Mosgiel to a shed in Mosgiel. Other goods were brought to Smith’s office in Castle street, and an oil regenerator was dropped at the Silver Fern Taxi Depot. Cornelius Francis O’Connor, owner of the shed mentioned by the previous witnesses, stated that he had allowed Smith to store the goods there, on the understanding that he was to have the job of delivering them, at some future date. Alleged Admissions

Thomas McKenzie Brydon, at present a clerk in the office of the court at Invercargill, but formerly a member of the staff of the Official Assignee’s office at Dunedin said that after Smith’s bankruptcy he had been placed in charge of the bankrupt’s affairs, On January 27 he went to the accused’s premises in Castle street, but there was no one at home. In a shed, the window of which was uncovered and broken witness noticed a quantity of hardware which he took to be the goods mentioned in bankrupt’s schedule When questioned, bankrupt submitted what he said was a complete list of his assets, but further investigation revealed that there were goods stored in various places which had not been disclosed Witness took possession of these goods and Smith, at one stage, said Tie had lost his head and that he “ did it to save the old man.” He later told witness that he had sufficient goods to cover his New Zealand creditors On May 17, the accused admitted to witness that he had removed goods from various places, and also admitted ownership of the goods. Plea of Not Guilty Mr Stevens entered a plea of not guilty on behalf of the accused, who was committed to the Supreme Court for trial bail being allowed in his own recognisance of £SO on each charge, and one surety of £SO on the first charge, conditional on his reporting daily to the police.