AFFAIRS OF A BANKRUPT

Taranaki Daily News, 17 August 1933, Page 5

AFFAIRS OF A BANKRUPT

ALLEGED FAILURE TO DISCLOSE. CHRISTCHURCH MAN ACQUITTED. By Telegraph—Press Association. Christchurch, Last Night. A charge against John Crawley Rex, bankrupt hotelkeeper, of not disclosing all his - property to the official assignee, was heard in the Supreme Court to-day. The prosecution alleged that the prisoner tried to conceal the fact that he had a £7OO investment. Rex was found not guilty. , « - • James Hope Robertson, official assignee, said he first became aware of the £7OO when one of the creditors informed him that the sum was represented by a debenture in Colosseums, Ltd. Witness interviewed bankrupt, who made a statutory declaration that the sum belonged to his mother. Mrs. Rex made a similar declaration, and witness decided, not to pursue the matter further. William John Stacey, solicitor, said Rex interviewed him in December, 1930, about a sum of £7OO. Rex said he had £7OO in the Post Office. His financial position was bad and he asked whether in the event of his bankruptcy the money would be traceable to him by the official assignee if it were in the Post Office. Witness said it would. Rex at a later conversation asked if the money could be placed in the trust account of witness’ firm, and if it were there would it -be traced by the assignee. Witness told him it would be traceable. Rex asked whether it could be put in in another name. Witness said it could not. Later Rex brought in £7OO in notes and the money was credited to Rex’s account. Rex did not tell witness the money was his mother’s. The money was paid out in two sums under authorities signed by Rex, and in effect was lent by Rex to A. F. Stacey, witness’ brother, who was concerned with Colosseums, Ltd. Two months after the money had been paid out witness suggested to Rex that he get security for the loan, and witness prepared a debenture over Colosseums, Ltd. For the last year the debenture had not been of much value. Cross-examined, witness said he would have nothing to do with the scheme suggested by accused to defeat his creditors. He was certain at the time that the money was Rex’s. Before the bankruptcy Mrs. Rex was claiming money. In May, 1932, a few days 'before Rex went bankrupt witness entered into an agreement to pay the money to Mrs. Rex. After the agreement was made difficulty was experienced in meeting the payments and a writ was threatened. His partner, C. S. Penlington, then made a statement of the facts to the official assignee. He would agree that possibly if there had been no threat of a writ no disclosure would have been made to the assignee. Cecil Spenser Penlington, solicitor, partner of the witness Stacey, gave supporting evidence, and Peter George Harle, public accountant, told of the part of the transactions of which he had knowledge. No evidence was called for the defence. The jury found Rex not guilty.