Bankrupt Examined.

Press, Volume LXVI, Issue 20104, 6 December 1930, Page 24

Bankrupt Examined.

Replying to Mr Slee, bankrupt said that he paid Eowley £ISOO for his share of the business —deposit £SOO, and the remainder in promissory notes extending over three years. A balancesheet would have been taken out when he took over the business, but he did not remember what was the position of the business. He claimed £l7O from the Earthquake Belief Committee in respect of the damage done to his building, and received £75. The earthquake left the farmers in the district without any available money, and he could not get his accounts in. In 1928 he showed a surplus of £IO,OOO, in 1929 of £11,377, and in 1930 of £SOOO. His explanation of part of the decrease was that he lost stock in the flood—business stock and livestock. In the last statement the amounts owing to his largest creditors were not shown, and consequently his surplus in 1929 should be aproximately £6377, as against £SOOO in February last. He put in no returns to the In- • come Tax Department, his tax being/ assessed by the Department, and this he paid. When approached by Mr Sullivan, representing Rojds Brothers and Kirk, A. S. Paterson and Co., and Bing, Harris, and Co., and asked to assign his insurance policy to them, he had done so, but did not realise at the time what he was doing. No pressure was brought to bear on him, but he was told by Mr Sullivan that he must sign the assignment; bankrupt's idea was that the money was going to the three firms mentioned. He thought that he was in a position to pay his other creditors out of his book debts, but he did not go through them to ascertain if there was sufficient to do so. In June last he had some cheques dishonoured. '< To Mr Robertson: All his books were , burned in the fire; his safe and the / cash register were supposed to be fire- I proof. He took out a balance-sheet when he took stock. Sullivan told him that there were three things he could do; assign his insurance policy, go bankrupt, or have a writ issued against him; at that time bankrupt did not realise that things were so bad. Had you any idea what would have happened if a writ had been issued? — I understood him to say that if I could not pay, I would have to go bankrupt. Why didn't you do so? —I should have done so. The Insurance Policy. Mr J. H. Upham, who appeared for the Kaiapoi W-oolleD Company and several other creditors, asked bankrupt if, when his cheques were being dishonoured, he did not realise that he was in a pretty bad way. "It appear like that," replied bankrupt. Replying to further questions, bankrupt said that he had made payments to Royds Brothers and Kirk since his cheques were dishonoured. He had made no undertaking with anybody that the insurance money was to be applied to satisfy creditors. On September Ist did you not write to Mr Enright: "I have just arrived here, and received your wire. I presume it is in connexion with your account. I will not ring you now, for the Karamea telephones have long ears. I suggest that you hold over your account till the insurance is adjusted . . • ■when I hope to make arrangements