BREACH ALLEGED

Wanganui Chronicle, Volume LXXXIII, Issue 20150, 19 May 1928, Page 11

BREACH ALLEGED

BANKRUPT IN COURT ADJOURNMENT MADE UNTIL THIS MORNING The troubles of T. E. Thomas, bankrupt draper of this city, have been added to. Yesterday he was charged in the Wanganui Magistrate’s Court before Mr J. H. Keesing. J.P., and Mr F. Spencer, J.P., with a breach of the Bankrutcy Act. The case continued until late last evening when an adjournment was made until this morning, when the defence will be heard. Defendant, represented by Mr A. Barton, with Mr W. H. Cunningham prosecuting, was charged with committing a breach in that he, as a bankrupt, contracted debts when he had no reatonable or probable expectation of paying them, as well as his other debts. William S. Jones, Court registrar, gave evidence of the filing of the bankruptcy petition and the public examination. Traveller’s Business Gilbert Ball, commercial traveller, Baid he had done business with T. E. Thomas. Ltd., at Taihape in 1927, thn firm being managed there by R Thomas. Goods valued at £2OS 12s 4d

had been supplied from March to Octo* ber. Witness had no authority to take orders on the sale or return system, and there was no mention of this wheu tho orders were taken. Wilfred H. Robertshaw, manager of the Bank of Australasia, said he took over the managership on July 2, 1927. At that date, T. E. Thomas, Ltd., and Thomas himself were customers at tho bank. The firm was then indebted to the extent of £6852 10s 8d and Thomas’ debt was £97 Os 4d. Witness detailed other financial matters and said he had not seen tho balance sheet of July 31, 1927, until a few days prior to September 20. Defendant asked the bank to pay a debt of £522 owing to the Kaiapoi Woollen Company. Witness’ head office said that they would not permit the account to go beyond £0,900. Witness asked for a list of sundry debtors, but this was not produced. The overdrawn account was stopped on September 22, 1927. Three months prior to July 31, 1927, there was a number of dishonoured documents amounting to £3,453. Accountant’s Evidence. Frederick J. Hill, accountant and liquidator of T. E. Thomas, Ltd., said the firm went into voluntary liquidation on November 26, 1927. Witness was also receiver, appointed by the l»ank under its debenture. The nominal share capital of the company consisted of 20,000 £1 shares, of which 19,000 I were held by defendant, 500 by R. W. | Thomas and 500 by Mrs A. E. Thomas. | As liquidator he took over the assets,

and a statement, made up by witness, was produced showing the company’s position at the date of taking-over. The total loss on the balance sheet at November 21 was £8,543 Is lOd. Witness detailed the company’s monetary affairs and said he had realised to the extent of his receivership. To, date, the nett realisation was £4,689. Witness did not estimate that enough could be realised to pay the bank overdraft, and, in consequence, there would be no dividend for unsecured creditors. Including the bank, claims filed amounted to £19,108 15s 3d. The assets still included the balance of the book debts. Edwin Martel Silk, deputy official assignee in bankruptcy and accountant, said he was th’e informant. From tho figures before him, witness considered that defendant had been insolvent for some considerable time. On the present figures, witness added, he expected that 6d in the pound would be the limit to the dividend.