BREACHES OF THE BANKRUPTCY ACT.

Wairarapa Age, Volume XXXII, Issue 3119, 20 February 1909, Page 5

BREACHES OF THE BANKRUPTCY ACT.

CHARGES AGAINST A MASTERTON TOBACCONIST.

Daniel McFarlane, tobacconist, of Masterton, a banKrupt, was charged before Mr W. f. James, S.M., at Masterton, yesterday morning, with four breaches of tho Backruptcy Act as follows—On loth of July last by means of a false representation obtaining from Sargood, Son and Ewen, Ltd., property on credit to the amount of £52 Is 9d; for having within three years before his bankruptcy failed to keep proper books; with carrying on business by means of fictitious capital; within or about June and July last contracted debts to the amount of £52 Is 9d from Sargood, Son and Ewen, £29 19s 9d from Levin and Co., Ltd.. £9 2s 2d from Warnock and Aclkin, without having at the time reasonable or probable expectation of being able to pay tor the same.

Mr A. R. Bunny appeared for the Official Assignee (Mr W. B. Chennells), and Mr J. M. Coracrine for defendant, who pleaded not guilty to ail the charges. Mr Bunny, in opening, said accused took over the business of his father on March 2nd, paying for it practically £227, raising this amount on the security of the business from Mr Gawith. Prior to this the defendant had purchased, on a deposit of £25, a property valued at £425, which was not of the value defendant paid. Thus defendant had all his capital, little as it was, tied up, and to cairy on his business he made representations to Hayman and Co., obtaining certain goods for which less than half the value was paid. In July, when Hayman and Co. were pressing, defendant obtained goods from other firms. On bankrupt's statement it would be shown that when he went to Sargood, Son and Ewen and obtained goods to the value of £52, his business takings had dropped by half. This sum was still owing. In June defendant went to Levin and Co.'s local branch and opened an account amounting to £ls 16s 4d, when he was then owing £74 odd to Hayman and Co. Further liability to the amount of £l4 3s 5d was still later contracted with Levin and Co. On July 24th he obtained goods from Warnock and Adlcin to the extent of £9, making his total indebtedness £156 odd, while his business had drifted down to half. It would be shown that bankrupt kept > no books, and that he had made up I a book irom mainory just before his | bankruptcy, by which he attempted to show his takings during the business.

Michael Foley, Registrar of the District Couit, deposed that defendant was publicly examined before the Court, witness producing bankrupt's depositions. William Boyce Cbennells, D.O.A. at Masterton, said that bankrupt's liability to unsecured creditors amounted to £lßl 7s 9d. The estate realised £3O odd, excluding secured assets. Witness enumerated the various amounts due to creditors. Mr Gjwith's debt, excluding the security, was estimated at £IOO Is Bd. The only assets possessed by bankrupt were his mortgaged interest in the business, and the £25 deposit he had paid on a house property. The latter proved of no benefit to the estate. Bankrupt had kept no books such as would disclose hi 3 financial position, nor any bank account. Witness gave further evidence on the lines of counsel's opening.

By Mr Coradine: Bankrupt had handed jver some of his invoices, but not all of t'nem. James Kellow, accountant at P. Hayman and Co.'s, said defendant obtained, goods from his Company between March and May. The Company proved for £74, the balance of an account of about £135. Witness, produced correspondence between defendant and the Company, relating to their transactions. On May 14th one letter from bankrupt said he owned property which was unencumbered, this being about the time his credit was stopped. After the luncheon adjournment, counsel for defendant intimated that defendant would plead guilty to all the charges except that of making a false representation, and counsel for the prosecution agreed to withdraw this.

Mr Coradine asked that the Bench deal with the matter summarily.

The Magistrate decided to hear further evidence before deciding in the matter.

Carle B. Robertson, accountant at Sargood, Son and Ewen's, said that bankrupt had told witness that he had purchased the business for £232 cash, from his father, who had since gone bankrupt. Defendant assured witness he had a receipt for this amount, and on the assurance that defendant had this capital of £232 witness gave him credit up to £SO to be paid monthly. As a matter of fact no money whatever was paid, witness next hearing of the bankruptcy.

The Magistrate said he would look well into the evidence submitted, and examine the papers and documents generally. The case would be adjourned until next Saturday, defendant to be admitted to bail on his own. recognizances of f-50 and one Bttr§ty of £SO.