DISSATISFIED CREDITORS

Waikato Times, Volume 97, Issue 15245, 23 May 1923, Page 5

DISSATISFIED CREDITORS

BANKRUPT SPECULATOR.

MAGISTERIAL INQUIRY HELD. FULL PARTICULARS NOT GIVEN. An enquiry into the financial dealings during the last few years of William Patrick McLean, builder, and Rita Mary McLean, botli of Auckland, but formerly of Frankton Junction, was held before Mr 11 Young, S.M., at the Magistrate’s L.uri, Hamilton, today. Mrs McLean was not present, her husband explaining that her mother was ill and she could not possibly attend. The Deputy-Official Assignee (Mr V. H. Sanson) said that the statement by the bankrupt was not of the complete order usually required, and there was nothing really on which he could be cross-examined. McLean was then subjected to an examination by Mr Stace. He said that when he first came to Hamilton in 1914 he had capital of between £6OO and £7OO, derived from property sold in the Walrarapa. He and his wife had bought their first property in Hamilton in 19-18 from a man named Harding, but after that date they had bought a considerable amount of property. He was not doing any other work at the time, merely painting up the various houses that had been purchased.' Witness did not agree with Mr Stace that he was merely speculating in property. When witness sold the house he had bought from Harding he only obtained £l5O. His next transaction was Hie purchase from Mrs Hammond of a house in River Road, for which he paid £BSO, giving £l9O cash. He later sold the house at a profit. Witness proceeded to detail various deals he had made with houses about the town, showing that on the first few houses they had made a profit in every case. All the properties had been in Mrs McLean’s name, but they were regarded as being jointlv owned. On account of his wife’s ill health ho had to sell a house property later at a loss of £650. Following this he bought a small section at Takapuna and when they left for Auckland they had no capital. Asked as tp how the £7OO cash which he had secured from a certain sale had been spent, witness said that he could account for every penny of this, and read out a list of payments made to his lawyers, to paper-hangers, and to other tradesmen. On the section at Takapuna Witness had built a house for a little over £IOOO, but the authorities’ valuation was £1175. While living at Auckland defendant had been working at the brick-laying trade, and was earning £3 l'4s per week. There was a mortgage on the Takapuna property of £880: Witness refuted Mr Stace’s suggestion that when lie left Hamilton he was hopelessly insolvent. He had a valuable property in Queen Street, Hamilton, with an S9ll frontage, and could not therefore be called insolvent. When he came to pay his debts in Hamilton he found he did not have enough for all his creditors. He was very sorry for this, as in the past he had always paid his debts. Under examination by Mr Johnson witness said he did not consider it necessary to bring his books in regard to the Takapuna property or his bank pass books. When witness went to see the Taupo-Totara Timber Company in regard to the purchase of timber for another house in Belmont Road lie had not stated, that he would pay cash for the timber with money he was to receive out of a sale at Hamilton. The Queen Street property was heavily mortgaged, but lie thought that anyone optimistic of the future of Hamilton would be prepared to advance more money on it. To Mr Sanson: Witness had not kept books, not considering it necessary to do so. The reason of witness not having attended the first meeting of creditors in Auckland was that ho was away working at the time, and someone had to keep the house going. His wife, who attended the meeting, knew as much about the business affairs as he did. They had been given to understand that the meeting was merely an informal one, and that the proper meeting would bo. held later in Hamilton. lie had not asked his wife to deliver ,an impertinent message to the Official Assignee at Auckland, nor had she done so. She had certainly stated that he was too busy to attqnd the meeting. At this stage witness was closely examined by Mr Sanson as to why he had not supplied fuller details of Ills business dealings of the last few years. To Mr Johnson: All profits from his land deals in Hamilton were sunk in his property in Queen Street. To Mr O’Halloran: Witness had stated that he was going to stay a few days in a boarding-house before going to Auckland. He had not slipped away to Auckland by the express a few hours later. Witness had never said anything about expecting money from a farm property at Cambridge. He did not own a farm property at Cambridge.

To Mr Whyte: Mrs McLean went round to tho creditors, and paid out as much as she was able before leaving for Auckland. Money had also been sent the creditors from Auckland. Witness had raised the £IOO to buy the section at Takapuna as the result of a shrewd investment made for him by a friend on three horses at the Wanganui races. He had invested merely £2, and .this was the only bet that he had hall for some time. He did not follow horse-racing. Dissatisfaction was expressed by the Deputy Official Assignee at the nonappearance of Mrs McLean, and ho asked His Worship to' have her arrested and brought along. Mr Swarhrick, who had acted for the McLeans prior to their departure for Auckland, said that it seemed to him that McLean had given a clear statement of his dealings prior to leaving Hamilton.. In asking His Worship to grant his application for an order for the arresi of Mrs McLean, Mr Sanson said that at the first mooting of creditors in Auckland she had adopled a most improper attitude. He had been instructed by the Official Assignee (Mr Fisher) to place before the enquiry the view that husband and wife seemed inclined to take very little notice of the bankruptcy proceedings.

Ilis Worship did not consider any good purpose would be served by having Mrs McLean arrested, for as mentioned by Mr Swarbrick all ttic information that could lie obtained from Mrs McLean could be secured from his (Mr Swarbrick’s) books. If Mrs McLean made no order for an inspection of the books, an order for her arrest could then be made. Strongly-worded Resolution. At a subsequent meeting of creditors it was agreed ttiat this meeting of creditors, having regard to the failure of the bankrupts to supply full and satisfactory statements regarding their affairs, and to furnish books of accounts, and being dissatisfied with the demeanour and conduct of the bank-(rupl-s, and their, complete disregard of

the Official Assignee’s instructions, requests the Official Assignee to place the facts before the Crown solicitor with a view to having the male bankrupt prosecuted for contracting debts at a time when lie had no reasonable or probable expectations of being able to pay the same, and for contributing to his bankruptcy by rash and hazardous speculation and gambling, and both bankrupts for failure to keep within three years' of their bankruptcy proper and usual books of account, also for failure to deliver to the Offlc'tal Assignee all books, papers and writings relating to their property or affairs.