BANKRUPT SOLICITOR

Southland Times, Issue 19500, 14 March 1925, Page 6

BANKRUPT SOLICITOR

THE WANGANUI CASE. EXAMINATION CONTINUED. (Per United Press Association.) WANGANUI, March 13. The public examination of George William McCaul, bankrupt, formerly in business as a solicitor in partnership with Collins, was continued to-day, bankrupt being examined extensively in relation to transactions in connection with various mortgages. The bankrupt admitted receiving amounts of £l7, £8 2/6, £9, £3 5/6, £57 and £l4 for stamp duty and transfer fees and these transactions were never completed, the money going into the trust account.

■ On March 31, 1923, his books were sent to audit and were completed in November. The audit showed that on March 31, 1923, he had £943 5/- balance in the trust account of which £Bl3 4/8 represented trust monies he had in hand, the balance being his own. On March 29, 1924 he had received from Mr Z. £377 4/8 for repayment of a mortgage and that went into his trust account and was not included in the £Bl3 trust monies shown by the audit of March 29. An entry in his cash book showed to the effect that £377 4/8 was lent him without security by Mr Z. He got the consent of Mr Z. in writing off £943 and no portion of the £347 was included. On April 9, he paid £391 3/4 to Mr Z. out of his trust account and he assumed he had more money in the trust account belonging to himself than he actually had at that date. He paid another £57 on April 19 to Mr Z. The explanation for this was the same as in the previous instance. He did not keep a close' check on the trust account. He had only one girl and he was not a good bookkeeper himself. Sometimes he transferred sums from the trust account to a private account but very rarely costs went into the trust account. Office expenses went out of it. Any interest he owed himself went out of it while his private account was used for small matters not connected with the business.

In April, 1923. he was being pressed for re-payment of £6OO private moneys he owed and those moneys were repaid out of the trust account. On April 10 he paid to the Magistrate’s Court £93 3/9 on account of a claim against himself personally. That came out of. the trust account. In April he paid out of his trust account £1036 6/11 payments on his own account without having any specific sums put into the trust account to meet them. His audit for November, 1923, showed that he had only £123 to his credit.