“VERY BAD CASE”

Sun (Auckland), Volume II, Issue 400, 7 July 1928, Page 13

“VERY BAD CASE”

BANKRUPT RACE-GOERS ROTORUA BOARDINGHOUSEKEEPERS (From Our Own Correspondent.) ROTORUA, Friday. A meeting of creditors in the estate of R. and L. McDermott, boarding house-keepers, was held to-day before Mr. J. H. Robertson, official assignee, of Hamilton. Louise McDermott said she had had considerable success with the house at times. In January last she knew she owed her creditors about £ 400. She had attended several race meetings. She did not bet much. She had never bet more than £2 at a meeting. BIGGEST BET £3 R. McDermott, her husband, said he worked about the house. His wife kept the books. Receipts for money paid out were kept. He had attended race meetings at various places, sometimes with his wife, sometimes alone. His biggest bet at any one time was £3. The cost of a trip to Opotiki, where he sent his wife to get a tip for a winner, was £lO. Bankrupt said he leased a racehorse for two years, with the right of purchase. Ho had no knowledge of having given £ 5 to a stout man to invest for him at a Rotorua race meeting. He had no money other than that disclosed in his statement. He would make an offer of 10s in the £ before applying for his discharge. “GREATEST PREVARICATORS” A creditor said he had applied for payment several times, and bankrupts said it was all right. He considered the bankrupts were the greatest prevaricators he had ever met. He thought some action should be taken. The bankrupt had attended race meetings, where he spent his creditors’ money. Mr. Robertson said it was a very bad case. The books kept were unsatisfactory. The proper procedure for business people was to bank all moneys and pay by cheque. He was of the opinion that there was a great deal of evasion in the financial statement. From, a casual e’Xjminatlon made by him, he found that Mrs. McDermott had taken £250 in December, and paid into the bank £l6l. A. resolution that the official assignee the C*own Prosecutor with a view to prosecution, was carried without dissent.