£5577 DEFICIT

Timaru Herald, Volume CL, Issue 22065, 11 September 1941, Page 6

£5577 DEFICIT

City Land Agent’s Bankruptcy

Prosecution Likely

(P.A.) CHRISTCHURCH, Sept. 10. A total deficiency of £5577 8/6 was shown in the statement of affairs of William John Spratt, land agent, of Christchurch, at a meeting of creditors to-day, when the Official Assignee <Mr G. W. Brown) presided. Spratt filed his petition in bankruptcy, said Mr Brown, and his statement of affairs showed unsecured creditors at £5768/10/3, there being no secured creditors. Assets were shown nt £l9l/2/9, of which furniture accounted for £lB9/9/-. Unsecured creditors were divided into three classes—trust account, business debts and private debts. J ... The bankrupt attributed his position to a large extent to heavy loans borrowed in the last 10 years, mostly at 10 per cent. He stated that he had been in business as a land agent in Christchurch for 22 years. Since 932 he had made defalcations from his trust account, having made transfers by commissions to the general account. The present shortage in the trust account was about £l9OO. His books Lad never been audited, and he lived at the rate of £428 per annum. The Assignee explained to the meeting- that every land agent was obliged under the Land Agents Act to enter into a fidelity bond of £5OO. That had been done in Spratt's case, but it as a question whether that sum would be available to pay the creditors m the trust accounts. At the present time several charges were pending against Spratt, and the police were making inquiries. . J To Mr Brown. Spratt said he could produce no balance-sheet for any ; car showing assets and liabilities. He had not prepared one for years. Several hundreds of pounds more had '■ ?en borrowed than was shown in his statement. To Mr H. O. Jacobson. Spratt said he had never been interested in horse racing, and he did not think he had lost any money by gambling on cards. Mr Brown said it was obvious that the creditors would receive a small dividend, if anything at all. The creditors passed a resolution granting bankrupt’s wife a further £5O to cover personal furniture.