PLAIN SPEAKING

Dominion, Volume 15, Issue 14, 11 October 1921, Page 7

PLAIN SPEAKING

A BANKRUPT’S INVOLVED AFFAIRS MOTION FOR PUBLIC EXAMINATION LOST There was some plain speakiilg yesterday at the adjourned meeting of the creditors of Henry John Simpson, who had been adjudged a bankrupt, in the Supreme Court, by Mr. Justice Reed. The bankrupt, who was represented by Mr. Brown, produced his books as arranged at a previous meeting. The books contained statements of receipts and expenditure from 1919 to 1920. Liabilities (as stated previously) amounted to .£BOB, and assets were estimated at about 4:24. Allegations that the bankrupt had made incorrect statements relative to finances wore made by Mr. A. Lewis, one of the principal creditors, who had lent Simpson money. He said that the bankrupt had applied to him for .6100 as an advance, and had "outlined on wrapping paper" his business affairs. “1 look the risk on the margin shown by his figures," said Mr. Lewis. The bankrupt had agreed to pay back £5 a week at 8 per cent., but during the first three weeks after the loan had been made he did not pay any money back. "Simpson did not give me a correct statement," he added. “Wo wrote tho debt off as bad." Mr. Lewis said that when he ascertained that two firms were going to sell up tho bankrupt, he wae angry, and, having found Simpson, advised him to file a petition in bankruptcy. Simpson was not to be convinced. "I said, 'lf you don’t do this, I shall make it warm !’ ” added Mr. Lewis. "I was prepared to stand the expense of the bankruptcy.” He added that he could not understand why Simpson had put his creditors to such expense. They had tried to help him. >( "Hie creditors did try to help him, said the Official Assignee. Mr. Lewis referred to an offer of _ss. in the 411, made by tho bankrupt, which he had agreed to accept. A previous meeting of creditors had resolved that, failing the fulfilment of the offer, Simpeon should be asked to file, in default to bo made a bankrupt. "AVhen one receives base ingratitude from a debtor, one is apt to become annoyed,’ said Mr. Lewis. "In the Supremo Court, the suggestion was made that I and two others wore the only ones who wished to make Simpson a bankrupt. Is that so gentlemen ?’’ Several creditors: No, no. In explanation, bankrupt said that the figures supplied to Mr.. Lewis were merely rough estimates, and were not intended to be a completely accurate statement. Mr.. Lewis said that he wanted IUS position made clear. He was r.ot after a pound of flesh. The Official Assignee: I got the impression that you wanted tho eash on the table before yon would accept the ss. in the £\. (To Simpson): Why did not you file before P Bankrupt: I was advised not to by my solicitors. , ~,, . Mr. W. Miller: In the middle of Alarch were you not ’shouting and drinking champagne in an hotel? Bankrupt: I have never drunk it in my life—Oh! Half a minute! I had a bottle at Marton, in March, with a man named Brady. Mr. Miller: Who paid for it? Bankrupt: Brady. I couldn’t afford it. On behalf of the bankrupt, it was stated that he was not a man oflicentious habits. Mr. Lewis (to Mr. Tako niy advice. Don’t open up that line, bay nothing about that. t A creditor remaikea that, simultaneously, the bankrupt had told one firm that ho was financial, and another that he was not. He wan "financial when lio wanted to borrow Mr. C. B. Lempriero said he was instructed to press fen 1 a public examination. “I wish there was some other means of making men pay honourably,” remarked Mr. Lewis. "It’s the only way in which grounds for a prosecution may bo obtained,” said the Official Assignee. “It should be a deterrent, said Mr. Lempriere. "We do not regard the examination as an investment from which a dividend may be obtained!” Mr. Lempriere then moved as instructed. the motion being lost. "I’m the biggest loser—in hard cash,” said Mr. Lewis. "I don’t see the object of the examination." The meeting then closed.