"A MATTER FOR THE POLICE."

Dominion, Volume 6, Issue 1702, 19 March 1913, Page 8

"A MATTER FOR THE POLICE."

AFFAIRS OF NORROW & CO.

EXTRAORDINARY POSITION.

LETTERS FROM THE SYDNEY

OFFICIAL ASSIGNEE.

MEETING OF. WELLINGTON CREDITORS.

t The affairs of.borrow and Co., mail y ordor agents, of AVellington, whoso estate , is now in the . hands of the Official AsUsignee (Mr.' A. Simpson) ..as..liquidator t were further inquired into yesterday. » There were present; Messrs. ; A.' Samuol V (Rothschild and Co.), H. P. Soloinons, F. X. Je'nness, Lewis (Vacuum Cleaning Co.), <anil 8.. "Woodward (of Woodward and ; Jackson). ' The Official Assignee opened the meetins by. loading a statement irom Mr. C. .7 *F. : \V. Lloyd, Official Assignee, of Sydney, i. who had been investigating the nilairs [' of Norman ll'Leod and Frank liowe (who i traded iu.NcAV" Zealand as . Nor row and \ Co.). The letter read: ; ' ... - V "Dear sir,—l am an official assignee of the Supreme Court of New' South \\ ales, and I have just had forwarded to me u a clipping from tho 'New Zealand Tunes, • Wellington, in which it appears ijiat you • are the Official Assignee of a company known, as Norro'w and Co., and a meeting • of creditors .was culled to consider the i position when the bankrupt, Francis / -* .Godolphin Itowe, who is known as Frank ' - Itowe, - was examined.. ' According to" the I V : questions asked, it appears that the .barikr. V i'upts.havo been moving'their assets from r "'. oho company, to another, and I notice a t: ;•■. remark by you■ that..the.-case 'was the i>/ ; worst case of the kind that you have ever f ; known to Be.exposed.' I might state that V!■ /both the estates of the above-named bankV rupts,liave been sequestrated, and I have vliad; considerable trouble in their admin- ; istration:. The estate of Frank Kowo'was . first seqnest.rat,ed on June 28,. 1912, and ■ ho did 'not . file his statement of-'affairs' ' until July 20, 1912, when he disclosed {.- - liabilities .amounting ,to ,21547 lis. - 7d.j ii\ -.and .the following assets:—Debt due by r. ihe British "Watch,Co'., Ltd., J233C .Cs. Bd., r T i ; Which'be estimated as good, but "which {'■■'i up to date-has never been paid; and debt' ('••/.•■• duo by-.Norman-Frank ami . Company, of Quay, AVellington, New Zcai"-. land, .£257 7s. 10d., .which ha estimated Kj.had.He also showed .1000 .£1 shares in i Noirow and Co., of AVellington, New Zeailand; fully paid-up, the value of which

: he,estimates acAiuuu; aw -snares pam Vi-tk-Tip' to ss. in the. same comjiaily estimated va .lue, £125;' 2000' shares in the British |£'-Watch Co., Ltd., paid up to 55., valued at' ■ ' vioOO, and. one :(1) . fully paid up sharea in the Britisli Watch C'o. r Ltd., valued at JMV ' V ' ''Nothing, whatever- has been, realised , in iliis estate. Tho- bankrupt was ox- }* aniined fn ' several occasions, but 'his.es--i was adjourned generally, owing •to his partner,' Norman M'Leod, being in New Zealand. As soon as Norman i M' lie'od returned, his estate was sequosr ti'atcd on September 10. -He filed n state- ; ment of affairs showing,! practically,, the ; name liabilities, and the same assets, with' the exception that he sliowed tlnit the British Watch' Co., Ltd.; Wed'him the sum _of 1 iCCGR 13s. Id., the' amount' to be paid to him. K'Vender, contract covering five years. No-> 'f thing-whatever has been realised in this / ' estate. As before, staged, I. have had / considerable difficulty in'administering .:.. this . estite. While • the examinations I were pending, .Frank left the State d" :'for New Zealand without'the permission of the Court. . His. partner' explained p - that lio went simply, to look after the r '.' business..' I, : "I obtained, an, order. ,or trie Court E ; directing the Postmaster-General to.deM liver all letters addressed to the bankM"'rupt, Norman M'Leod. "Frank Kowe, or I!. Nornuiii, Frank, ■ and Co., to me, but-as I;-' "apparently I was not receiving nny let-r-'-'V.ters. written' by Eowo iri.-New Zealand, ' • and the assumption-was that Frank Rowe I ' was., communicating- with' his partner, in l\i i Sydney. I examined Norman M'Leod, who S-.i ./.admitted that he did receive letters, but j?i' they" came .under cover ,to Frank Howe's I'' brother. I was of opinion', that the V. bankrupt Norman .M'Leod was guilty \ • contempt .of ..Court in taking steps to defeat the order of the Court.' ■ • . "The" bankrupt appeared .before , lus Honour ..Mr. Justicei Street (in bank- ... l'liptcy) on-December 2, .'when the banlc- ■' rupt stated 'that he did receive letters, ( and that lie was also acquainted with P the fact.that there was. - an .ordqr that i such letters were to.be re-directed to,me 3 ' "but that if lie had erred, and. was tempt of. Court, it [was tliroiign no fault of his, but because of bis ignorance of the, law.- : His Honour found . the banknipt guilty of' contempt,. and also stated that lie • did not-believe. M'Leod's state- ' uieut with regard To his ignorance of the .law; that the offence, wits a. very serious one,'and-he was ordered to. be - commitled to Darlinghurst ; Gaol till; lie had pureed bis contempt. ■ ■ I • ; "The bankrupt eventually 'made application to the Court, his Honour.rc-

leased liim. ' , , 1 ' "According to the statement I have Te- - reived, the'.bankrupts have been trading 1 in Svdney in many names, amongst others ' the 'British Watch Co. Ltd. - Bankrupts and Pawnbrokers' Clearance Association, Norman, Frank, and Go. ■ But the wholo of the business has now been merged into one, viz., the British Watch; Co., Ltd. Tliey have sold tho whole of tho assets '" for a cash consideration and shares, the J. company notching over the liabilities. T' '(he cash consideration, although due. ! : - has never been paid, arid in my . opinion j "he shares are valueless.' i ' . "T understand the bankrupts if'so traded ! . .-in Now Zealand as Norrow and Go., Sc~tL" tisli tailors,~and Norman Frank and Go. !•'• Finally, I understand the bui-ine?w;s ! merged into Norrow And U.. ot which I the. bankrupts were the prmcir/J s'laroI".; 1 ; holders, and that the. shares in the busi- '. : lie?i are valueless. •••••• . "I hopo a copy of the agreement.-with ! the British Watch Company, Iltd,. in I 1 which it sbfe-s that 'by agreement ■Tune 12, 19)3,' -wa«'e between . Norman. M'Lsod and Frank Rowe of 'the one part.-' and tho British Watch Company. Jid.. of ' - the other part, Messrs. Eowe and M Leod . purported to ..transfer certain j™ the com nan v in consideration ot AIUUU (.p«li and 400 ft shares paid no to ss. : \ithoufh I have made, d-mand en; the company for the cash consideration. •« jias !y Tiot been paid. Norman i rank ami Lo. I r advertised; in a very .large way, and -on ?• the back of th« envelopes is Shown- tile ( ivholo of-a bniWintt'jo 'Ash, ( Streety and' on the- side wall '■ Noi-mait-i;.- Frank and Co.. mail order agents, and nnv person looking n't the envelope would t think that the whole .of the building ] -was occupied bv tliem, whereas-they only I occum-ed two or thie-e rooms. \ Apparently the lionkrntits'have bsen carrying on bnsiK fle«s in the same- way in New Zealand L- as tliev have in Svdney. T. understood r from the bankrupts that the business in ' l v New Zealand was perfectly solvent. Tho i Knikrupt. Norman, M'Le."d, ;• stated that ;; Rowe onlv left for New Zealand, to look ' after the business. ' He evidently- left liecaus" ill" business was in', a bad way financially." - On February 12 the Sydney Assignee | wrote:— . !. "I note that the. creditors have given you a' substantial 1 guarantee to prose- |. cute, and that y-oii anticipate being in a \ ' v-position to take criminal proceedings very | soon. I might stats that T have 'rej eeived the permission of the Registrar in t Bankruptcy" to prosecute on itliis side, and £ lam only waiting for the principal credii tors to sign an-indemnity I require tc i protect myself in "tho event of an action t against mo by either c-f the bankrupt; i for -lu-ilicious prosecution, if my.profecu -lion-fails before a Warrant for nrrest i< If . fcsucd. I have.these'men br.'tli under ob nervation. As Ihey have to attend tin I Bankruptcy Court here for further exom ! '{nation, I." do nrifc anticipate that tliej i are anxious -to leave the. Stare. ' The final letter from Mr. G. F, W i Lloyd, dated MarclM;, stated :-"T ha v. : initiated criminal nroceedings against til- ' Mnkruntes for.fraudulent, bankniptcv.: j r ' warrant was'.-issued for their ar'rrsf oi ! - Friday last, and they worn arreted in tli '-. rtfternoon and released later on bail fixei |- ' bv the Magistrate at XIOOOi The matte !. .. frtmo on at the Police Court on Momla I last, and a remand was grank-d iinli i IVedncsday next, Jlarch 12. I auticipal

that the bankrupts will reserve their d«-ft-uciv and they will be .committed lur trial to the quarter sessions, {''e case will than bo heard by a judge and a jiu-j. Tne British Watcli Company, .Ltd., Here is in liquidation, and the assets, whatever they are, being realised." / . , , , Mr. Simpson, as'liquidator, said that he had found a sackful of watches on the 'premises of'the linn, some with tickets 011 thorn addressed to people, but those had nm dwindled to .30. The rest had been forwarded to their 'owners, t here were 191:1 applications for goods on which partpavinent had been made. Mr. Samuel: Will those people rank as creditors? ... , Mr. Simpson: T suppose they wilt rank as creditors. Mr. SHulden and Tripe) will bo seen to sec if they will rank as ordinarv. creditors or be treated diiforently. " Continuing, I|« said that alter the estate came inl'o his hands, applications for goods with money orders attached continued to conic in. The money was sent back to its owners, and did not go into the coffers of the estate. The lists showed that applicants had paid from 2s. Gd. upwards, some up to .CI for suits of clothes, 1 which tlio firm had dabbled in considerably, watches, and other tilings. According to his aecount the sum of .£422 3s. sd. had been received by Norrow and Co., for which no goods had lH'6ll sent. The watches they, had in stock when lie took over the estate had been sold at public auction, .but they did not get much for them. There was also a lot of gold brooches, some of which were sold at Is. for four dozen. They were not gj'.d at all. The only articles which remained was a typewriter and chair, which ha had used in connection with, the estate, and was now finished with. They could ba sjld after the Easter holidays. Mr.'Samuel:'What are the liabilities? "Mr. Simpson': Tlio ordinary creditors' total is not.very large. Mr. Samuel: ,£500? Mr. Simpson,: Less than that. Later, Mr. Simpson qualified the statement by stating that the corrected total would amount to about ,£530 (that apart from any consideration to applicants who had sent in money without getting any return). Mr. Simpson then read a statement detailing tlio transactions of the firm, which he had forwarded to the police.

Mr. Samuel': "I don't know that wo can do much to-day. It is a matter for the. police." ' Mr. Simpson: 1 "That's ivliat I say. We've been, fighting the police with Mr. Sladderi." ■ . Mr. Samuel: "Surely it's a matter for .the police when people are deliberately swindled. It's strange if justice depends upon the generosity of creditors when the public has'been flagrantly ; robbed ' and swindled." 1 . Mr.' Simpson: "In any case we wonm have to wait until they /had finished with them there (in Sydney)." . Mr. Samuel: "I would like to have seen Miss Abrahams, the. managing director, examined." Mr. - Simpson: "She has given a good deal of assistance since." Mr. Samuel: If it hadn't been for-her, a. lot of people wouldn't have lost their money. . ■ Mr. Simpson: Jlahdel's wouldn't hav». Mr. Sanvuel: If it liadn't been for Miss Abrahams, they would uever have got goods from us, arid wouldn't have got them then only I was out of town. In reply to questions, Mr. Simpson said that Mr. Sladden (of Messrs. Young and Tripe's) was acting for him and the creditors,- arid the creditors were liable for his costs. ■ Veryilittle costs had been incurred. So far, the estate had paid .its way. They would have to pay up to a point—until the police took the case oyer. , Mr. Samuel: What do tho police say? .Mr. Simpson: I have. approached the Jitstice Department, and they said verb-ally-that they could not do anything until they had full information. . They had had two-ton of stuff in the office to turn over. . Now they had a statement, ho thought the .police would take it up. Mr. Samuel: If they don't take it up I am prepared to spend up to .£SO to bring this' man back.

A creditor:' Hear, hear! \ • Mr. Simpson: You know, you can't do | any thing'without an order of the Court. 1 That is the worst of tho Companies Act. I recently lmd a small company to wind up, which cost ,£BOO in expenses, a thing you could do for <£10 under tho Bankruptcy Act, and do it better and cheaper. ■ Mr. Samuel: Supposing there are not enough assets to covpr expenses, are the creditors liable. I mean to say that if a creditor i»s satisfied to hav© ''done his .£BO or £100 could' iie cut looso from tie whole thing? • • Mr. Simpson: T.,don't know that you can—if you" prove. \ 'Mr. Samuel:.So that a man might loose „CIOO and another ,£IOO .costs through proving the debt. This is a case for the law-makers. . The. public is not protected by the' Companies Act.Mr. Simpson: Not ftt all. Mr." .T. Lewis: It's more of a cloak. Mr. Samuel: I think the creditors would like to get something final. I move— "That tho Justice Department be asked to . take the'case lip, seeing that at least 9G people have been swindled out of their money, and that 173T persons have paid deposits on goods and they have received neither goods nor deposits back. N This was seconded by Mr. x. L. Jenness and carried. '.'S