BREACH OF BANKRUPTCY ACT.

Wanganui Chronicle, Issue 20039, 24 March 1914, Page 6

BREACH OF BANKRUPTCY ACT.

ACCOUNTS

FAILING TO KEEP PROPER

ACCUSED COMMITTED FOR TRIAL

On December 6th last. Walter parkinson Garner, land agent, of Taihape, was adjudged bankrupt. As a result of the investigation of his affairs that followed, Garner was prosecuted by the Official Assignee for allegedly failing to keep proper accounts. The period covered some three years up to the time accused was adjudged bankrupt. Mr W. Kerr, S.M., heard the case yesterday, and accused was committed for trial. Mr C. C. Hutton appeared for the Official Assignee, and Mr Brodie for the accused.

Ernest Bertram Jennings, accountant, Taihape, gave evidence that he had been in Taihape for four years, and had known accused during that time. For the first twelve months accused was carrying on business as a land agent, seed and grain .merchant. For the last three years he had been engaged as a lav^d agent, grain' and seted broker, and general commission agent. Witness gave evidence as to, the proper books that should be used in such a business. Witness had investigated accused's books at the instance of the Official Assignee. Accused had told him that a ledger and two books were the only books lie had used. The ledger contained no record of purchases made by the bankrupt, excepting contra accounts from debtors. Witness said that by means of bankrupt's pass-books and his pay-in slips, he came across transactions that were 'not intered in the ledger. There was no record of his general trade expenses.. His dealings with merchants were not recorded. Witness knew that accused had had .dealings with merchants. . All accused's dealings with his deT>«ors were entered in the ledger. The ledger and bank books did not disclose accused's true financial position. No record of his stock was kept.

To the Bench.-—Had the ledged Deen properly kept it should show accused's proper financial position It did not disclose the amount of his sales nor the amount of his purchases, nor any account of the various items of his expenditure. Accused should have kept a purchasers' journal. . Thomas Robert Say well. Official Assignee, produced his authority to prosecute an the case. He said that he attended a meeting of creditors on December 15th last. Bankrupt was sworn and gave evidence which was reduced to writing. The statement was signed by accused. Witness produced a list of. unsecured creditors filed by the bankrupt. It contained two creditors, Mr Blundell for £50 11s Bd, and the Commercial Union Insurance Coy. for £51 3s lOd.

E. B. Jennings, re-called, said there were no entries of the amounts on account of Mr Blundell and the Commercial Union in the ledger or in any «>i the other books. There was an account with the Commercial Union from. Fee - ruary to .April, 1909, in the ledger. That was the only record he could find.

Accused pleaded "not guilty," and reserved his defence.

He was committed to the Supreme Court for trial. Bail was allowed in'his own recognisance for £200.