RACING COST £l0,000

Star (Christchurch), Volume XLIV, Issue 458, 20 May 1932, Page 3

RACING COST £lo,ooo

Timaru Bankrupt Closely Questioned. CASE TO CROWN SOLICITOR. (Special to the “ Star.”) TIMARU, May 19. A detailed statement of his racing and financial transactions will be demanded from Elwood Cuthbertson, a bankrupt restaurateur, who met his creditors to-day. The deficiency was £lslß 3s lid and the creditors passed a motion that the Official Assignee hand over all papers to the Crown Solicitor with a view to prosecution under the Bankruptcy Act. Bankrupt is a married man, twenty-two years of age. Cuthbertson estimated that racing had cost him £IO,OOO in three years. Bankrupt’s financial statement showed unsecured creditors amounting to £IO7B 15s Bd, which, added to a deficit of £274 8s 3d on securities and a contingent liability of £240, left a total indebtedness of £1593 3s lid. Assets were shown as: Stock-in-trade £SO and book debts estimated to produce £25, resulting in a deficiency of £lslß 3s lid. Questioned by Assignee. The Assignee said that the assets were practically nil, the £SO stock-in-trade representing goods used in the restaurant, being doubtful, unless the bank which held a chattel security handed them over to the creditors. There was little liope of the creditors receiving anything from bankrupt’s share in his father’s estate. Under examination, bankrupt stated that from the time he left school he had earned his living by horse-racing and then became a financial agent. He did not do much business in this line and reverted to racing, and then became a restaurateur. He had worked in his father’s stables and then became an owner. He first acquired Shortly for 300 guineas, paying £157 10s by cheque and when the horse "won £SOO in stakes paid the balance in cash. Most of his drawings were on account of racing. In the first year from May, 1929, to May, 1930, he drew £4 86 for racing, but he had actually spent about twice as much. The Assignee: Where did you get the extra money;—l got it elsewhere. Who gave it to you?—l suppose my father did. The Assignee pointed out to banklupt that he should assist the creditors l»y volunteering the information instead of having to have it dragged from him. Bankrupt: I don’t know if you have had much experience in racing, but it is very costly. He added that his father, who had about twenty horses at one time, allowed him to sell them for him. His betting might run into thousands of pounds, his transactions* in 3 929 being about £IOOO. He might have put on £IOO at the Dunedin Jockey Club’s meeting. He was ahead on betting on Shortly until the horse was poisoned. He had wen £IOOO in one dav on the horse, putting £SO on him, the dividend being £2O. He put this money into his pocket and spent it on bets on other horses, and lie could not say how long it took to “ cut it out.” The Assignee: What did you do with the £1000?—I put it on Shortly in the Winter Cup. How much did you put cn?—£2oo. One thousand pounds would have paid all liabilities?—At that time it would have taken £SOOO. To whom did you owe that?—A man in Australia for deals in horses. How* much was it?—Well, over £2OOO. Did you pay him?—No. So he is a creditor?—Yes, but he won’t prove. It is a gambling debt?—Yes. Bankrupt had paid £4OO for another horse and spent £IOOO on him, and won £SOO or £6OO on him, and then gave aw*ay the horse. He bought Oriflamb for 250gns, won three races, totalling £IOOO, and sold the horse for £IOO. He put £IOO on Oriflamb at Gore and spent the balance in different ways. He onlv laid bets cn his own horses. Financial Agency. Bankrupt was closely questioned concerning his venture as a financial agent. He denied that the suggestion that so long as he was receiving money he did not worry over his creditors. He denied that he knew in February this year that his position was hopeless. He admitted that he had received £l2O on a promissory note from Mr Cartwright, but he contended this was not for the business, but for racing. The business was losing about £5 a w*eek. He had gone to Australia on a holiday on the doctor’s orders, having had a breakdown as a result of worry over racing and his father’s death. He had also visited Auckland, intending to stay there two months.' When he left for Auckland he left a signed order to sell the car for £250, and the vehicle was disposed cf for £l5O. Questioned by Mr Young, bankrupt said that he owned Erin Go Bragh in 1929. He denied that he had offered to put down £45 on a £145 car in March, though he admitted his wife might nave done so. He admitted that lie had spent £SOO he had borre-wed on racing. Refusal to Answer. Mr Young questioned bankrupt concerning a property on the corner of Princes and King Streets, which was not disclosed as an asset, Cuthbertson declining to answer the question. The Assignee: You are here to answer questions. It seems useless to ask questions. There is only one way of dealing with this man. Bankrupt said that in purchasing the restaurant business he was led to believe that the takings were about £7O a week and the receipts would be £lO to £2O clear. Replying to Mr Lindsay, he that he had no intention of going to Sydney, though he agreed he had gone down to the U.S.S. Company and made inquiries regarding a passage, though he had done so fc-r a joke. “ I am not going to answer any more questions by this man, he is hostile,” said bankrupt. “ I’ll make you answer in another way,” said Mr Lindsay. He denied that he had bought any of his wife’s dresses in the past few months. She ran her own business. Questioned by Mr O'Connell, bankrupt said that he went to Australia a week after his marriage, borrowing £2OO fc-r the purpose. Several creditors expressed the lions, Mr Watson suggesting it was a case for further action. The motions quoted above were carried.