ECHO OF A SLANDER CASE

Dominion, Volume 11, Issue 34, 3 November 1917, Page 8

ECHO OF A SLANDER CASE

THE BANKRUPT, THE BOX, AND THE BURGLAR

A. WsSCHAEF PUBLICLY EXAMINED

The JpiiWio examination,, undjer the ; Bankruptcy Act, of.'Arthur Waldemai ■ Schaef, photographer,' was held before Mr. Justice Hosking in tho Supreme Court yesterday, bchaef was recent!} adjudged a bankrupt upon the petition of Isabel and Gladys Davey, two young women who, in an action against him for slander, had obtained a verdict foi £625 damages. - Mr. T. M. Wilford represented Schaef, i' The examination was wade by the re quest of the Official Assignee, tor whom Mr. T. Young appeared. In an affidavit'setting out his reasons for requesting that the exarainatior . should take place, the Assignee said thai ' the bankrupt's statement ehowod liabili ... ties amounting to ,£760 13s. 3d. and asset* '. (stock-in-trade) ,£4O. "About three month; before his bankruplcy," tho affidavil proceeded, "the bankrupt sold his property for .£2500, and on July 9, 1917, h< received a cheque for .EloOb, being the amount over and above mortgages, which . \ cheque he cashed on July 10. On beinj asked what he had done with the monej he refused to give any information con eerning the same. On July !) ho withdrew ' from his Post Office Savings Bank ac count the sum of ,£349, but he refuse( to say what he had done with the money It will be seen that throughout his cvi . dence his memory failed him in a verj peculiar way, and I feel sure that ii ;' many instances he could have given thi information .asked for. I would brinf before the Court the following offence: which appear to have been committee ■by the bankrupt under Section 38 of the Bankruptcy; Act:—He has within three years of his bankruptcy failed to keej proper books of accounts;-ho has-failec to deliver, and l prevented the productior of, his Post Office Savings Bank book he has received large sums of monej within three months of his bankruptcy and has failed to account to the Officia ' Assignee for the same; he has failed tc i: discover all his property to the Officia! ' Assignee; he has failed to. deliver ui to the Official Assignee property which '. is divisible among his creditors; he lias made' a false statement of his affairs ! he has refused to answer questions put tc him, thus committing contempt oi Court; he has refused to sign a writter statement of his evidence on oath', thus committing an offence under Section 6( ■•.-■ (e) of the Act." At the outset Mr. Wilford applied ;''■' for an adjournment of the proceedings • He submitted that they might prejudice .the interests of the bankrupt in his motion for a new trial of the slandei action. The Misses Davey were the principal creditors, and his debt to them !'" vu.JSiOi. ' ■■. Mr. Young said that Schaef had nol proceeded in the matter of the new triai ". when, he had the opportunity. It hail ' ' been called on two occasions, and counsel had each time said that he was nol prepared to go on with it. Mr.. Wilford explained that Schaef hat) a private detective at work making inquiries, and that whilo these were still incomplete he could not go on. . His Honour: I understand from that that it was not quite demonstrated ther whether the grounds of the motion fci a new trial could be proved? ".'..■ Mr. Wilford: Our information was b; letter from people who would not appear as witnesses, and we had to make inquiries through Court records, etc. Mr. Young: The investigation of thie man's affairs has nothing to do with a new trial. We are quite prepared tc meet that when it comes, but I don't think it ever will come. In the meanime it is important that Schief's affair; should be investigated. Hie Honour: I really don't see hov. the disclosure in these proceedings ol his monetary transactions would in anj . way affect the application for a new ,■' trial. The Official Assignee is entitlee; .by law to the fullest disclosure of the bankrupt's affairs. I certainly should not allow any questions to be gone intc .which might affect the new trial. ■ ' Schaef was called upon to enter the . witriess-hox. He stated under examination by Mr. Young that six months age he owned a house in Homo Street, in which he lived. He also owned a block of buildings in Ingfccre Street. One ol the buildings he used for his shop. He etill occupied the house and /.he shop. Schaef turned to His Honour and handed the latter some manuscript. He ther . «aid: "I object to the proceedings on the grounds I have stated there." His Honour (after reading the document) :-1 won't show this to. Mr. Young because it might give him material foi cross-examination; but your best course is to answer' these questions. Schaef:. | am taking Your Honour's advice. • His Honour: Supposing you had this - property and made it away, say so. It - won't do you any great harm. Under further examination by Mr. Young, witness admitted that the properties were not now his. He sold them '■ to a Mr. ,Green-one for of which amount he received JJISOO in cash. Thai ■was about July 9. The was paid ty a cheque, which he cashed. Mr. Young: Where is the :noney? Schaef.:,At the present moment lam wanting"to know myself where it is. The police have got it in hand to find where it is. The money was removed from our premises the night before last. .„ The whole of the .£lsoo'-"Well, all " "the money we had." That is interesting. You had better tell ua some more about it.—"Well the night before last our premises were : burgled. The place in Home Street was broken into, and when I returned home the police were in possession of some information received from the 'amily that the house was burgled." Where was the money at that time?!"In a cash-box." • In your private house.'—"Yes. Well, you had been keeping (hat monej in a cash-box in the house until then?f'Only latterly in the cash-box." What did vou do with it when you got it from the 'bank '—"Planted it in some ■ negative boxes." ■ Do you know a gentleman named Gill-ing?-"Yes." • He had his house burned down at Island Bay the other day. Did jou ask him to say that he had your money, and 'that it was burnt? "No, I said it was 'a pity it wasn't in his place when it was burnt, instead, of the women having 'at," This was before the burglary?—" Yes.' So you actually had this money til: three days ago?—" Yes." But it doesn't appear in your accouni to the Official Assignee?—" Well, you see i<Mr. Young, that money I claim was the wife's. The wife's father.set.me up bj 'giving the .money to, the wife, and 1 don't claim the money as mine. I helc the ,£ISOO in her behalf"

And she has gone and lost-it like that? —"No. I lost it for hor. It might have teen better if I bad lot her have it."

I want you to toll 'me more particularly tho amount you had in that ibox?—"l could not tell you the amount, .because wo have: been taking from it i for living and law expenses." Dtjcsn't your story sound a little bit fishy?—"l don't think so. lamon my oath."

You will probably realise that presently. On June 9 you had a Post Office Savings "Bank account, and drew out iUB3*9?—"I could not say." His Honour: You drew out what was in it?—'' That is right, Your Honour." Mr. Young:. Where is the book?—"I couldn't lay my. hands on it." Did you give it to tho Assignee?—"l hadn't it when he asked for it."

Mr. Wilford: Didn't the bank take it after you took all the money out? Mr. Young: He hasn't taken all the money out. Schaef said that whatever the bank record stated to have been taken out .would bo the correct amount.

Mr. Young: What did you do with the '&4b?-"t?ut it with" the other money.'' Has it been burgled • too?—"lt's all gone together." I thought you told me you only had about .£ISOO in the cash-hos?—"Of purchase money." Why didn't you toll the Assignee about the money when you were examined?— ."There was no need to tell him. It was the wife's money, I had no money of

my own to start, with. I consider that what I earned has gone in experiments, etc." | Have you told the police about this supposed burglary?—"l told them of the burglary, not the supposed burglary." Did they believe you ?—"I don't know." Are you going to account to the Assignee lor either the OCIOOO or the ,£319? —"I cannot grip, your question." Are you going to account to the Assignee for this money othenviso than by tho story you have just told us?—" The money lias been stolen.- I cannot give yon any more account." Questioned as to further transactions, Sehnef said that lie had sold to Mr. John Smith, of Vivian Street, a motorcar. Ho did not know exactly for what amount 'he had soldi it. but. it. was between JJIOO and £200. The proceeds trcre with Ihe other money—gone. His Honour ordered that the report of the examination, ns 6igncd by Sehnef, should be placed on (be file of the Court.