BANKRUPT ON TRIAL

Wanganui Chronicle, Volume LXXXI, Issue 19050, 1 July 1924, Page 5

BANKRUPT ON TRIAL

COMMITTED TO SUPREME COURT At the Magistrate’s Court yesterday afternoon, Christian August Jensen appeared to answer three charges arising out of his bankruptcy. Each charge was dealt with separately. The accused was first charged tha! having been adjudged a bankrupt on November 30, 1923, at Wanganui or May 15, 1922, he contracted a debt of £3120, to the creditors of Howard Oakley Browne, on the purchase of Chavannes’ Hotel, without having rca sonablc or probable grounds or expectation of being able to pay same as well as other debts. Mr Slipper appeared for the accused, while Mr Izard represented the prosecution. John Mcßeth, solicitor, of Wanganui* j said he acted for Mr Browne when th</n accused was negotiating to take oid|l Chavannes’ Hotel. Browne was 'thn lessee .of the hotel, and Jensen bought it for £8,756 18s Id. Amongst numerA ous accounts taken over by tne accused! from Oakley Browne, was one for £23711 9s sd, and another for £lB 0s 6d, owing to J. G. Swan and Co., and also one for £lOO, owing to J. G. Swan’s bill account. The Registrar, Henry Morgan, said that the accused was adjudged a bankrupt on November 30, 1923, and he wag publicly examined on April 11, 1924. Frederick Joseph Hill said that he was the acting Deputy Official Assignee at the time of the adjudication. The accused’s statement disclosed that £7195 4s 2d was owing to unsecured creditors, while the accused’s were £209 3s lOd. The debts included t one to Barraud and Abraham for £lBOO. ■! A pass-book obtained by witness from * Barraud and Abraham’s showed that 1 when he took over the hotel his debt* then amounted to £2071 14s lOd. This concluded the case for the prosecution so far as the frst charge was concerned. Mr Slipper said he had his doubts as te there being a prima facie case, and he asked His Worship to decide this point before the accused was asked to plead. The Magistrate said that in his opinion there was a prima facie case. The accused pleaded not was committed to the next sitting ol the Supreme Court for trial. The accused was further charged th«l he did not at any time between Marcß 1, 1923, and the date of his bankruptcy, November 30, 1923, during which period debts proved in the Bankruptcy Court were contracted, have any reasonable or probably grounds of expectation of being able to pay same as well as other debts.

Frederick J. Nancarrow, manager oi Johnston’s, Ltd., Wanganui, said he knew Jensen, who was formerly licensee of Chavannes’ Hotel. On June 25) 1923, he supplied the accused witl goods to the value of £57 Ils sd. H< had not been paid for the goods received.

To Mr Slipper: He had managed the business since January, 1923. He personally took the order from the accused, who demurred at first when witness suggested that he should place an order with him.

James A. Pawson said that he wu carrying on business in Wanganui as a wine and spirit merchant, and in September, 1923, he supplied the accused with goods valued at £lO2 9s/ lid, and £3l 7s 3d. He had suppJietuj Jensen previously, and his accounts up* I till then had been paid. The amount of £133 15s 2d was still owing. To Mr Slipper: A great majority of hotel-keepers were running on long credit, and in addition to having to pay current debts out of takings, they had to pay capital sums for the lease, of furniture, and good will from the sama source. “It is a case of no payment, walk out,” remarked witness. “In my opinion, the goodwills of the leascn in this district arc all too high.” Re-examined by Mr Izard, witness said that as a general rule the hotelkeepers paid their bills on the 20th of each month.

Herbert H. W T est, cordial manager, said that from September, 1922, to September, 1923, he had supplied the accused with goods. The amount owing to him at the time of the accused’s bankruptcy was £227 18s 6d. This sum included £lOO advanced by , witness. Edward P. Coyle, wine and spirit t merchant, said he supplied Jensen ih 1923, prior to his bankruptcy, and the amount owing him totalled £lB2 6s 2d. After July, 1922, Jensen paid cash for his goods at his own suggestion. Robert Edward Cuthbertson, coal merchant, of Wanganui, said that tho amount of his debt against the accused was £l9 2s Bd, for coal supplied. The evidence of the Registrar and the Official Assignee applied to tho second charge also. Mr Izard said that he relied in this case, as he did in the other, on tho accused’s evidence at the public exam* ination.

The accused pleaded not guilty to tb< second charge, and was committed ta the Supreme Court for trial.

The accused was next charged that at Wanganui he did make certain payments to or on account of Geo. Swan. to wit £lOO, on April 27, 1923, and £231 3s 5d on May 2, 1923, such payments being out of the regular course of his business, and not being for the ordinary expenses of himself and family. Peter L. Dickson, solicitor, of Wanganui, said he was the holder of a promissory note for the sum of £237 9s od, made by Jensen. Witness could not say who it was payable to, but it was endorsed by Swan and Co. The promissory note was subsequently paid in May, 1923. Cross-examined by Mr Slipper, wit- j ness said that he held the promissory ’ note for himself. The D.O.A. said that amongst the debts proved against tho accused there was one for £3120, owing to Oakley Browne, and of this amount £438 16s 6d was the property of George Swan, who was one of the original creditors. The amount payable to Swan was not due until May 1, 1924. Mr Slipper submitted that a case was not made out. He said that there was no proof of payment out of tho regular course of business. Mr Izard contended that if the debts were paid prior to the date upon which they wgre due, they were out of the ordinary course of business. His Worship considered that the case, like the others, was for the Supreme Court. r fhe accused pleaded not guilty to the third charge, and was committed tc the Supreme Court for trial. Bail was allowed in the accused’! I own recognisance of £lOO, and one 1 surety of £lOO. J