WOMEN AND MONEY

Sun (Auckland), Volume IV, Issue 985, 30 May 1930, Page 12

WOMEN AND MONEY

UNUSUAL TRANSACTIONS REVEALED

WOMAN CLERK BANKRUPT Extraordinary transactions over -he lending of money, in which three women participated, were repealed to Mr. Justice Herdman, in the Supreme Court today, when a summons issued by Mrs. Emily Alway for the adjudication as r* bankrupt of Winifred Baker, a clerk, of Auckland, was considered. The judge made an order adjudicating the debtor bankrupt. \I R. CO< 'KEK, lor the petitioner, said the debt was for £625, representing' money advanced. Two nets of bankruptcy alleged against the debtor v.'ere that she had called a meeting of her creditors and had notified that she intended to, or had suspended payment •A her debts. The petition was resisted I»y' Mr. Terry, who said it was alleged that the petitioning creditor had been making loans for at least two years at excess* ive rates of interest, and that she was an unlicensed moneylender, and there* tv re the debts were not recoverable at law. The petitioner claimed £625 was owing, but this she had to prove. Counsel argued that all the alleged creditors. who attended the meeting, would bo in the same position if this contention was upheld. Emily Alma Alway. petitioning creditor. who with her husband, conducted :i drapery business at Grey Lynn, said th. t. in September. 1928. Miss Smith, •i friend of hers, approached her to boi row sums on behalf of Miss Baker, who was a friend of Miss Smith’s. Witn< - never offer *i money for loan ex- • pt on request. and through Miss Smith, who suggested the rates of interest. She advanced to Miss Baker am- of £2OO in October. 1928, £250 in I Vbninrv. 1929. and £IOO in April this year. There was no security for the amounts, but the acknowledgments l ;:n been signed by Miss Baker for thorn as guarantor. Of the £550 ad'•aneed she had received back £175 interest. which had been paid in v eekly sums, blit none of the princiI >a 1. The witness said that although Miss Smith, who was a Queen Street coniv ciioner. had a hanking account, she Iso banked in another account in the t ame of “Emily Smith” money which belonged to witness. Miss Smith’s ramo of “Emily Smith” money which Hi plantation of having this account was that she wanted to ave some money of her own, which ; bt saved from lu-r wages, Miss Smith banking it for her in the name of “Emily Smith.” Mrs. Alway further admitted that she used the name Cov.-clray in her business. His Honour: You have two names, Miss Smith has two. How many has Miss Baker? (Laughter.) INTEREST RATES

Questioned by Mr. Terry *3l rs. Alway said the interest rates charged •-•n the sums were 25s weekly, £2 weekly and 30s weekly, representing 32i p r cent., 52 per cent, and 7S per cent. Mr. Cocker said that until recently Miss Baker was a servant in the office of a City registered money-lender. Isobcl Smith, a confectioner, and a friend of both parties, said that when Miss Baker approached her for a loan >he put Mrs. Alway in the way of what she thought “a good thing.’" His Honour: "What did Miss Baker want the money for? —She was loaning it out on little transactions on her own account. “t can't fathom it yet.” said his Honour. “I can't understand why Mrs. Alway loaned the money without security. It’s a most extraordinary thing. Coming as Ido from Otago, the lending of money in this way is strange,” added the judge, amid laughter. Mr. Cocker said i hat all the creditors who had advanced Miss Baker had no security. Huw she induced them to do so ho could not understand. Miss Smith further stated that when Miss Baker paid back certain sums she paid them into “Emily Smith's account. or rcloanod them to Miss Baker. A solicitor, William John Spring, who represented Mrs. Alway and two or three creditors at the meeting of Miss Baker’s creditors, said the debtor did not attend, but was represented by -Mr. Terry, who said she would be in tear?. Counsel could give practically no information and said his client could make no offer, though l;e thought it possible, if the creditors agreed, that her relatives might offer 10s in the £. Miss Baker had since lost her position. The creditors were indignant at being called to the meeting and wanted to insist on Miss Baker being present to explain where the money had gone. The creditors declined to entertain Mr. Terry’s suggestion and passed a resolution calling upon her to file failing a satisfactory* offer by next afternoon. The offer was not forthcoming and Mr. Terry* did not attend. The amount involved was over £2,000. For the defence. Mr. Terry contended the debt was doubtful as being recoverable and submitted the creditors should be referred to action by writ. He pointed to Miss Smith’s admission that she had reloaned moneys out of the “Emily Smith” account without reference to Mrs. Alway as being evidence of money-lending as defined by the authorities. “If ever there was a case where a woman should be. adjudicated bankrupt it is this one,” said Mr. Justice Herdman. “She has been borrowing money right and left apd now after using other people’s money she has no books, statements of account or records.” There was nothing to show Mrs. Alway had systematically carried on the business of a money-lender, he said. The interest was high, but it would be open to the official assignee to thoroughly investigate the transactions and reduce the interest rate where it was harsh or unreasonable. In his opinion the debt was payable to the petitioner.