SWANN'S BANKRUPTCY

Evening Star, Issue 19660, 13 September 1927, Page 6

SWANN'S BANKRUPTCY

FIRST MEETING OF CREDITORS BIG SUM INVOLVED The first meeting of creditors, in thb bankrupt estate of George. Thomas Swann was held this morning, the Official Assignee (Mr W. D. Wallace) presiding. Swann was sentenced on February II last to three years’ imprisonment lor obtaining money by false pretences, the Crown Solicitor (Mr F. B. Adams) stating at the time that the total sums involved were probably in the vicinity of £20,000.

Bankrupt was represented b; Mr 11. 11. Aspiimll, of Moasrs Aspiimll and Sim, and Mr C. J. L. White appeared for Mrs Margaret Gibson, the petitioning creditor. in submitting a statement to his solicitors said it covered practically the whole of his business transactions in machinery dealing a far as he could honestly recollect. His memory, lie added, had suffered owing to the great strain of the last two or three years. He had been dealing in machinery in a small way lor many years, but those transactions had nothing to do with the firm lie was working with. Ho loft his father’s business in 1920, and devoted his whole time to deals.

Continuing, lie said: It is then that I must have required .some financial assistance, and got into touch with various people in respect to that matter, but it did not assume any large proportions up to this time. Mr F. O. Noes had advanced me small sums, which I repaid with interest iqi till the end ol 1922. 1. kept on doing cash deals up to June, 1923, when I shifted the old buildings where Mcssis.Nees and (sons now .stand, which Messrs Alex. [1 arris and Co. sold for me. Most oi the people with whom 1 was connected kept" their own books. Why i allowed this one-sided system I do not. know, nor can I form any clear idea why other things happened during 1923 and 1921.' I cannot possibly tee any reason for ray actions during T 1)2-1, some of which seem to me now to be of the utmost stupidity. I could not have been properly balanced in my mind when 1, did these things, otherwise 1 would have foreseen the disaster which happened. It could not come out any other way; nor can f understand how these people gave mo these large sums without asking for security nor bothering themselves in any way to inquire. I can only sav that (hiring the la tier part of ,1921 and the early part of 1925 .1 must have been carrying on my business, and practically not understanding what I was doing., Tho people with whom I was dealing got all the nrofits; whether these -profits were genuinely made or constructed by myself I am unable to say, hut that thev received them there is no doubt, as their books will show. But what astonishes mo now is the fact that 1 gave them all the profits and kept nothing myself, as 1 apparently did in numerous other eases; .sheer madness. Then finally I got mixed up with so many people and to such an extent. I seemed to have given them such astounding profits that towards the finish 1. got completely mixed up and broke down. One thing I must ossure .you of-—and it .seems to mo the most stupid of all—is the fact that, barring expenses, I never took anything out of these profits myself. T might mention that some of these deals and profits were bought and paid in cash, and 1, regret to say that I have no record of many of them. During my incarceration at the mental hospital a lot of my books and papers wore lost .sight or. This is as true an account as I can possibly give you. The Assignee sold Hint, according to a letter from bankrupt's solicitors, the only asset was in the hands of the Public Trustee. Ho understood tho sum amounted to £IOB, which was the proceeds from a sale of property. “ AA'e cannot got very far to-day,” ho added. “ Arrangements will have to ho made with tho governor ol: Papa run Prison to bring bankrupt to Dunedin, so that he can bo minutely examined by creditors.” Ho presumed there would be no difficulty in getting Swann here. He explained that it would probably cost about £l.O or £l3 to bring bankrupt to Dunedin, and that would have to be paid out of the money in the hands of the Public Trustee. Mr White suggested that tin; assignee should procure a record of bankrupt s bank account. Air Aspiimll said bankrupt had two accounts, one with the North Dunedin branch of the National Bank and (ho other with tho Union Bank. He explained that he had supplied Ihc assignee with a list of those who were supposed to be creditors. He could not say for certain that they were. The Assignee said that most of them had not proved their claims, though ho had communicated with those on the list. Air Win to said the reason why the bankruptcy proceedings had _ been started was because it seemed incredible that Swann could have gone through £2O,(JOU. lie was of opinion that there were concealed assets somewhere. A creditor alleged that another person had taken a. largo sum of money back with him to Australia. The Assignee said that if there was anything in that statement they could seek the aid of tho court to have the man examined in Australia. The Assignee, in ('losing the meeting, pointed out to creditors that tho object of having bankrupt examined was to find out whether lie had any assets, and that it “ would be no good harping on what bankrupt has clone.”