BREACH OF BANKRUPTCY ACT

Wairarapa Daily Times, 8 December 1925, Page 3

BREACH OF BANKRUPTCY ACT

ELECTRICIAN IN TROUBLE. (Special t;> ‘' Daily Time*.”) In the Mag:strate's Court at ('.e*tort on yesterday, Benjamin Frankbu Hunter pleaded guilty to a charge that, being a person who hail been adjudged a bankrupt, did between 'the 1711 1 day of January, .1925, and the 12th day oL' May. ]025, at Palmerston North, before ho obtained his absolute order of discharge, and before a conditional order of .liacha;go had taken effect, under the Bankruptcy Act, DOS, obtain credit to the extent of £2(l and upwards, namely, to the extent of £57 (is 7d, from tin- Lawrence and Hansen Electrical Co., Ltd., without informing the said company that lie was an undischarged bankrupt. Counsel for defendant explained that prisoner was 25 years of age, and was a qualified electrician, and on the authorised list of wiring contractors. In 3920-21 he was in partnership in Stratford in a motor business, which was not a success. Trouble arose through an account for repairs to a ear being run up in the firm’s name, and there was a preference to press Hunter in preference to the partner, Baird, who was a returned soldier. There were no assets, the plant being mortgaged, and tliev were forced into bankruptcy. -Most of the debts proved were incurred while accused was a minor, and the meeting of creditors was adjourned sine die, and nothing more had been done. Accused had had no legal advice, and for four years bad followed his occupation and managed a business for a company. He was advised- to start on his own at Palmerston, .and after carrying on for six to eight months, the cutting in prices of various firms forced prisoner to reduce his jirices, with the result that he got behind. Realising that he would go further back, prisoner gave up and accepted a position with the Wairarapa Power Board. He made an order for the deduction of £2 10s from lii.s weekjv wages of £5 10s when he started in July, and this was paid to tltc solicitors, to be held in trust until there v.as sufficient to pay 5s in the £l. This- account now stood at £-17 10s, which would enable a payment to be made. The creditors were circularised as to the arangement, and all fell in hue with the exception of the Lawrence. Hansen Electrical Company. Counsel submitted that there was no intent to defraud, and that the prisoner had entered into the debt in pure ignorance. Prisoner lmd made an effort to improve the position, and the firm s traveller, who was a frequent caller upon prisoner, knew tire position, which was fully explained to him. It was contended that prisoner had been dogged by hard luck, and without legal advice had neglected to apply for his discharge. There was no question an to shirking his responsibilities, and lie was a first offender who had come before the court upon a technical breach of the Bankruptcy Act. No one had been defrauded. and there was reason to believe that all creditors would be paid in full.

George Brown, .secretary of the \vnirarapa Power Board, said accused entered the employ of the Board in July, and was paid 2s fid per hour on n 4-b hour week. Of his weekly wage of £5 10is he gave an order for £2 Ids, which had been paid to the solicitors, with the exception of a week when accused was off ill. He was a reliable tiadesman, and there was no reason to suggest that accused’s position with the Board would not continue. Counsel for the prosecution pointed out. that the offence of undischarged bankrupts obtaining credit was far too common. Accused was liable to a penalty of three years’ imprisonment. Defendant was convicted and admitted to probation for two years. Special conditions imposed were that prisoner is to pay to the clerk of the court nt Carterton £5 per month until the amount of £49 (is 7d is paid. He was also ordered to pay within .14 days solicitor ’s costs £ll Js.