BANKRUPTCY ACT CHARGES

Taranaki Daily News, 9 July 1930, Page 15

BANKRUPTCY ACT CHARGES

BERT THOMAS BEFORE COURT ATTEMPT TO DEFRAUD ALLEGED ONLY ONE MORE WITNESS. The lower court trial of Bert Thomas on six charges relating to his bankruptcy was continued before Mr. R. W. Tate, S.M., in New Plymouth yesterday. Briefly, it is alleged that Thomas put James McNeill, one of his creditors, to unnecessary expense by a frivolous, and vexatious defence to an action brought in the Magistrate’s Court to recover . £2lO 10s. Id., the action being removed by Thomas to the Supreme Court ; that, with intent to defraud his creditors, after one of them, Samuel Oliver, had obtained judgment against him, he removed the proceeds from the sale of his farm; that with intent to defraud his creditors Thomas did not fully and truly disclose io the assignee all his property to the best of his knowledge; that he failed to give possession to the assignee of part of his property divisible amongst his creditors, the proceeds from the sale of his farm, stock and. chattels; that within two years of the presentation of a bankruptcy petition against him on February 4, 1930, he fraudulently removed part of his property valued at' £lO or upwards; that on or about January 31, 1930, he left New Zealand; taking part of his property, £2O or upwards, that should have been divided among his creditors. Before the hearing commenced Mr.i F, S. Grayling mentioned that when the eafee was' commenced it was on the understanding that the charges were to be taken separately. Samuel Oliver, the first witness, therefore gave evidence on his first information only, while the others were examined in relation to the whole proceedings. It would therefore be necessary to recall Oliver. Mr. C. H. Croker agreed to 'this, and after all the other witnesses had been called yesterday a remand was granted till July 16, when Oliver will be heard again. Thomas was readmitted to bail on the same terms as previously. Constable Davis said he escorted Thomas back to New Plymouth from Sydney. The constable produced the depositions made when Thomas was charged in Sydney, bank books, etc., and £2 4s. in cash. On arrival in New Plymouth on May 14, he said, a further 2s. Id. was taken from Thomas. He had been arrested in Sydney on April 24. Mr. Croker: You know that Thomas can neither read nor write? —I don’t know that. You filled in his declaration forms and he signed them ? —Yes. You did that because he asked you to? —Yes. RELATING TO THE BANKRUPTCY. John Spencer Selwyn Medley, deputyofficial assignee, said the first intimation of the bankruptcy of Thomas was the court adjudication of February 26, 1930. Thomas did not file a statement of his affairs within three days of his adjudication, as required. Following formal evidence of subsequent proceedings towards a prosecution, witness said that the first meeting of creditors was held on March 12, Thomas was not present. Proofs of debt were then filed by Joseph Swainson (New Plymouth), £1 45.; Taranaki Hospital Board, £25 Bs. 2d.; Charles J. Southcombe, fanner, Kent Road, £3 18s.; Samuel Oliver, merchant, New Plymouth, £lBO 10s.; James McNeill, New Plymouth, grocer, £219 9s. Id.; Newton King, Ltd., New Plymouth, £2l 7s. fid. No other creditors had proved since then, On May 27 Thomas filed a statement showing assets as cash in hand and in court £lO 10s., which had since been altered to £2O on the information of Messrs. Croker and McCormick, and £2 6s. 2d. in the hands of the police. The debts shown in the schedule were: James McNeill, amount unascertained; Samuel Oliver, £lBO 10s.; Newton King, Ltd., £2l 7s. fid. No other books or papers had been produced to the assignee, Nor was there any statement attributing the cause of bankruptcy. He had no money or property in his hands belonging to the bankrupt estate. Answering Mr. Croker, witness admitted that the schedule could be filed only in three days, assuming .Thomas knew he had been declared bankrupt, . ■ Counsel: You have no knowledge that Thomas .knew of his bankruptcy in the begininng?—l advertised it. But you since have learned that he was out of New Zealand? —Yes, but I did not know when he left. Witness said it was common knowledge that the house in Mangorei Road formerly occupied by Thomas had been destroyed by fire and rebuilt by MacDonald. If Thomas’ books and papers were there they would have been destroyed, too. McNeill was very active in having Thomas adjudicated bankrupt, he said. He had not told the assignee that he or Oliver kept Thomas’ books until sometime in 1927. Unless specially asked for, there was no duty on the bankrupt to supply a statement of the reasons for his bankruptcy. Thomas had not been asked for one.

DATELESS PJIOOF OF DEBT. .Mr. Croker observed that the proof of debt filed by Swaihson bore no date, though the amount was. £1 4s. for cabinet photographs. Counsel exhibited two receipts from Swainson for a sum totalling £1 ss, The date, he said, was indistinct, though the figures “1928” appeared. Newton King, Ltd., had not withdrawn proof of debt, as they would have done had the amount owing been paid since the meeting of creditors, said witness. The Hospital Board account was for maintenance, but gave ,no further particulars. Henry Gilmore Smith, registrar of the Supreme Court at New Plymouth, gave formal evidence of court and bankruptcy proceedings, including Judgment given to Oliver for £lBO 10s. Oliver filed a petition to have Thoimas adjudicated bankrupt. “If all witnesses gave their evidence as clearly as that the time of the court would not be wasted,” said Mr. Croker, as Mr. Smith was about to leave the box. “I have no questions.” F. W. Southam, bailiff, said that when he served two summons on December 30 Thomas said: “They will never be paid.” lie had had some difficulty in locating Thomas but eventually found him at Mrs. Carrington’s, Fuz-roy On January 27 he served Thomas with a bankruptcy notice, and on being requested to do so advised him to take the documents to his solicitor. In February he

endeavoured to serve Thomas with the papers concerning the bankruptcy petition. He discovered bankrupt had gone to Auckland. Cyril Lash, of the New Plymouth Savings Bank, produced four bank books showing that on December 4 "homas opened an account, and on the same day £7OO was deposited. This was paid by a cheque drawn by Croker and McCormick. From the cheque £7OO was deposited and change given for the balance in the form of a cheque for £362 16s. He ascertained from the marks on the back of that cheque that it v.\s cashed in three £lOO notes, one £5O note, one £lO note, two single notes and 16s. in coin. Thomas’ account at the savings bank was closed on January 24, when a cheque was issued him f.or £702 12s. 6d.- the additional amount being interest. That cheque was cashed at the Bank of New Zealand in seven £lOO notes, two single notes and 12s. 6d. in change. To Mr. Croker: The withdrawal slip for £702 12s. fld. was signed by Bert Thomas." Each of the four passbooks produced represented a separate account in the savings bank. With, regard to one of the books the account would appear under the title of “Bert Thomas (Mrs. Isobelle Thomas).” A second book referred to an account for “Bert Thomas (Mr. William. Thomas)”; the third account would be in ■ the name of “Bert Thomas (Mr. James Thomas)”; and the fourth: account would be in the name of “Bert Thomas” only. : The cheque for £702 12s. od. was drawn in favour of 1. D. Thomas or bearer. There was nothing on that cheque to indicate that Bert Thomas personally handled any of the money. The withdrawal slips would have been signed at the bank that day by Thomas, or else brought in by Mrs._ Thomas after they had already been signed by Thomas. Guy Macallan, solicitor, gave evidence concerning the results of a search of the transfer on December 5 of the farm from Thomas to A. E. McDonald, McDonald took a mortgage for £9.oQ..and paid £lloo.jn cash. ..Witness acted for' McNeill in . obtaining judgment-against Thomas. Thomas had filed a defence and the claim was removed to the Supreme Court, thereby putting McNeill to additional expense.