PROSECUTION URGED

Poverty Bay Herald, Volume LV, Issue 17108, 14 November 1929, Page 4

PROSECUTION URGED

V SHAEEMILKEE'S FAILUEE j FIVE HOURS’ EXAMINATION CREDITORS DEMAND ACTION | After an examination of the bankrupt of over five hours' duration, creditors in the bankrupt estate of Richard Galyer, of To Artti, sharemilker, with one exception voted that the matter should be placed in the hands of the Crown Prosecutor with instructions for criminal proceedings to he taken under the penal section of the Bankruptcy Act. The meeting opened at 11 a.m, yesterday, and continued until after 5.30 p.m., and during the whole of that time the bank- . nipt underwent a searching examination by the Official Assignee, Mr, J. N. Naider, and several of his creditors. I Mi'. J. S. Wauchop, who appeared on behalf of several creditors, continued his examination yesterday afternoon. I Mr. Wauchop: Mr. Kidd informs me that you told him some time ago that j Mr. Black was counselling you to go J bankrupt 1 Bankrupt: No. Mr. Kidd: You said, “Do you know what he wants me to do? He wants me to go bankrupt to beat Mr. .Earle for his money.” Witness: I deny that. Mr. Kidd: You said it, /or I immediately warned Mr. Earle. Mr. Whitehead: None/of the matters disclosed here to-day was disclosed to me when I filed your petition ? Bankrupt: None. Mr. Black: Have you ever paid me : one penny interest on advances? J Witness: No. ! At whose suggestion was the chattel j security prepared ? —I went to Mr Burnard about it. Did you see me about it prior to the time you saw Mr. Burnurd? —No. Is it not- a fact that I did not vftint to advance you the money?—Yes. But you said you could not get an advance anywhere else? —Yes. And I came to your assistance? —• Yes. Did I got an advantage from advancing that money? —Unless you thought the value of the chattels was more than the amount of the advance. Did I receive any benefits from the advance? —No. Before the purchase of the first car did yop previously go to other garages about the purchase of other cars? — Yes. ‘ Was not Mr. Wilkinson one who, first suggested the purchase of that car'? —Yes. , x He saw me and asked me to buy the ear and advance the money to you?— I thought he was going to sec if he could finance the car through you. The reason why I bought the car was because no one else would finance you?—Yes. 'Who was the first person who advised you to sell the car ? —Mr. Wauchop said you’d have it as sure as eggs were eggs, so I saw that you didn’t get ;t, and sold it. When you sold the car to Blackburn did I have anything to do with the transaction?—No. ’ ;

What was the transaction? —I sold him the car and took his in part payment. Did I have anything to do with the transaction in connection with the purchase of the third car?—No. Had it not been for the purchase of those cars and the losses you sustained on them you would lie in a better financial position now? —Naturally. The third car is mentioned in the chattel security?—Yes. Did I try to force you to sell the first car?—No; you tried to block mo from selling it. Before the purchase of the car did I not suggest that you should take my buggy and pair for nothing?—There was some suggestion about a buggy, but I don’t remember about the pair. Did I not inform you that I did not like a man on my property who owned a car? —-Something like that. Was I instrumental in your purchasing a car?—No.

I told you that owning a ear might lead to 'the stock being neglected?— Yes. 11 Further examined by Mr. Black, bankrupt said he bought the milking plant from Earle and sold it to Black. Mr. Black: Did Mr. Wauchop draw up a hire-purchase agreement in connection with the machine between Earle and you and your wife? Witness: I instructed him to.

Did you sign it?—No. If you had .signed it you would have been buying something you already 'owned ?_Yes; it appeared that I was the owner of the machine. It was a peculiar position? —Yes. I could not understand it. I had bolioved that Elarle was the owner of the machine. Did you get further legal advice about tlie machine? —Yes; from Mr. Burnard. He told me to sign nothing, for Ive believed you held too strong a hand. “Even Mr. Burnard appears to have been afraid of Mr. Black!” interjected Mr. Wauchop. Mr. Black: Did you receive payments equivalent lo £BO in connection with the plant?—Yes. Do you think you got a fair and reasonable price for the , got less than what I paid for'it, so I can’t think much of the deal. *

Mr. \Vauchop said I made a suggestion . that you should never pay Earle; did I saV that?—l can’t say that you did.

In face of a letter you received in March,’how can it be said that inv intention wtjs to defeat Earle?—l don’t see how I can answer that. Is it correct that T informed you not to pay?—No.

Do you tell me your business? Do I know how you stand in your ordinary affairs? —No; it wouldn’t do to tell you. Did I know you were going bankrupt?—No. .Since the court case have I ever suggested that you should go bankrupt?— Not since the bust-up on Mr. Burnafd’s stairs. Mr. Wauchop: In connection with the hire-purchase agreement, didn’t you come into our office with Earle and Mrs. Galyer?—Yes. We were acting for Earle in an endeavor to get payment?—Yes. You instructed us to draw up the hire-purchase agreement on terms arranged between you and Earle?—Yes. At that time Mr. Burnard was your adviser? —Yes. It was long after that that you brought me your papers and asked me to keep them in safe custody?—Yes. You remember when yon were discussing the selling ofl the car; did you not say “crank” (the word you always used for Mr. Black) would not let you sell it, and that if you could you would be able to pay Earle? —Yes. At that time I was pressing you to make arrangements to pay Earle?—Yes. ] had written and asked you to come ifl and discuss it?—Yes. ■ l said you couldn’t afford to have a car when Von couldn’t pay Earle?—You said something about that. Williamson told , you if you could sell and buy a cheaper car you would be in a better position?—Yes; he was trying to sell it for me. in all the interviews I had with yon [ W as acting for Earle in an endeavor to get the money for him?—Yes. This concluded the examination, and Mr. Findlay moved that the file of the bankruptcy should be handed to the Grown .Solicitor iwithf insUriMions to take proceedings against the bankrupt for breaches of the penal section of the Bankruptcy Act, “What offences , does the mover think have been disclosed?” asked Mr. Burnard. “It is for the Crown Prosecutor to go through the evidence,” said Mr. Wauchop. * Mr. Burnard: It seems to be the hope of the. creditors that the bankrupt can bo convicted of soln&hing. Mr. Findlay said the bankrupt obtained goods the day before he filed, and had no intention of’ paying for them. Mr. Wauchop: He obtained £69 a few days before his bankruptcy, and deliberately spent it. Mr. Burnard : He lias done his best all through.' Upon being put to the meeting, the motion, which was seconded by Mr. Earle, was canned, with Mr. Black as the only dissentient, and the meeting was adjourned sine die. *