BANKRUPTCY CASES.

Gisborne Times, Volume XXII, Issue 1729, 21 April 1906, Page 3

BANKRUPTCY CASES.

COMMITTED FOR TRIAL

Five charges were brought against William Orwald Skeet yesterday morning for alleged breaches of the Bankruptcy , Act. The prosecution was conducted by the Crown Prosocutor (Mr J. W. Nolan), and tho accused was defended by Mr Stook. la four cases tho accusod, who reserved his defence, was committed for trial, and on the fifth charge no evidence was offered and the charge was dismissed. In each oase bail of £25 and two sureties of £25 waß allowed. The evidenoe in each oase was brief. The first information was laid by the Deputy Official Assignee, John Coleman, the charge being that, being a bankrupt, within three years before the commencement of the bankruptcy, accused failed to keep Buch books of account as are nsual and proper in the business oarried on by him, so as to sufficiently set forth his business transactions and disclose his finaoancial position. Messrs J. Coleman and Claudois Walter Gato gave evidence to the effect that proper books had not been kept; Mr Stook did not oros3-examiue. Accused reserved his defence, and was oommitted Vjor trial.

Mr Nolan : Did bo build the house '? Witness : No. The fourth charge was that aoousod within three years noxt before the presentation of his barkruptoy petitions, by a false balance-sheet statement if his affairs, obtained oredit from Frederick Hall, and bad not repa d the amount of suoh credit. The petition in bankiuptoy was attested to by Mr Coleman. Franois Travers Morgan, manager of Ihe Union Bank of Australia, at Gisborne, ! deposed that accused bad an aooount with the Bank, whiob continued until the date of bankruptcy. Accused’s aocount was guaranteed to the extent of £SOO by Mr Frederick Hall, A few days before S?p. tember 11th last, aooused oame to witness and said he wished the overdraft temporarily extended, and that Mr Hall would undertake to pay in the increased amount. Witness agreed to grant the extended

limit on the understanding that he would produce a copy of his last balanoe-sheet. This acoused promised to do, and early in Ootober presented a rough balanoe-sheet (produced) as follows: 1 L'abilities and assets, W. 0. Bketf, June 30, 1905. Lisbilities: Blls payable and other debts £2877, balanoe £lOlO 3s 61; total £3887 3s 6d. Assets: Boc k debts, including amount due contract jG3075 18s ; stocle in hand, £530 Jos 6d (oot insured); plant and building, £2BO 10s; total. £3897 3s 6d. —VV. 0. Skeet, October, 1905.” Witness had asked for more details, and accused promised to let him have a detailed statement early in Dsoember—Shat his son would get it ready, Mr Nolan : That balanoe-sheet shows a oredit of over £IOOO ? Mr Stock objected to this question. His Worship : The balance-sheet speaks for itself, Mr Nolan : Did you receive any further balance-sheet ? Witness : No. Did you show Mr Hall the balanoe sheet ? Yes. You granted accused a further extension ?

Witness: Yos. After seeing that balance-sheet ? Witness: No; before.

Frederick Hall deposed that he guaranteed accused’s overdraft to the extent of £SOO in the Union Bank. Mr Morgan showed him the balance-sheet produced about the beginning of October last. In consequence of this statement he gave further credits to acoused by lending him £l5O, besides trade accounts. None of the oredits had been repaid. By trade accounts ho meant ho supplied accused with goods, and the £l5O was cash l.nt on October 12sb, immediately after seeing the balance-sheet.

Claudius Walter Cato, accountant, Na pier, deposed that he had made an examination of accused’s books. Mr Nolao : Is that balano:-3heet taken from the books ? Mr Stock objected to this question. His Worship : I think it is for Mr Cato to say whether in his opinion it is so or not.

Witness; I have never seen this ialance-sbeet before. Mr Nolan: No, because we could not

His Worship said the question could bo answered after au examination of the books.

Mr Nolan said they could havo that later on.

His Worship (to witness) : In your opinion has that balance-sheet been taken from the books ?

Witness: No; it could not have been drawn up from tho books 1 saw, Mr Stook: Are you prepared to swear that that is a false balance-sheet ? Witness: No, I could not say that at all. There may be books I have never seen. Mr Nolan : Could it bo made up from the books you saw ? Witness: No ; it could not be made up from them. His Worship : It is possible it may have been made up from material not shown to you ? Witness : Yes. Mr Stook urged that a prima facie case had not been made out. There was not

His Worship : It is possible it may have been made up from material not shown to you ? Witness : Yes. Mr Stook urged that a prima facie case had not been made out. There was not a tittle of evidence to bear out the charge. Mr Cato said he was not prepared to Bwear it was a false balance sheet. Mr Nolan : Mr Cato swears that it would not be made up from the books. Mr Stock said Mr Cn'o replied be cou'd not say that it was a false balance sheet which would mean pressing somathing that amm knew to be false. Thore was do evidence to support a prima faoie case.

Mr Nolan said the witness raid that it could not be made up from Ihe books—therefore it was false. How else could thay prove it except from the books ? The only sonree they could get a balance sheet from would be the books.

His Worship said he considered there was sufficient ovideao9 ta jiitify him in sending the case t'o trial.

Oa the charge of wilfully omitting to keep proper books no evidence was offered, and in connection therewith accused was discharged. Bill in tho four cases was immediately orthcomiug.

Accused was thon obarged with having oontraotod debts with Evans, Nield and Go,, timber merchants, to the amount of .£74 lOi 9J, whilo not having any roasouablo or probable grouuds of expectation of being ablo to pay the same, as well as all bis other debts John Oolnman, G, L. Evans, and F. Hall gave evidence .to show accused's position at tho date of tbo debt being oon tcaoiod, nud tbo following ‘'Dalatioo-shOßt' whioh Mr Hail said had boon shown bin j ( ] in Decombor last was put in : —Assets : Amounts duo on oontraot, niatorial on ground, book debts £1341, stock £475, plant £230, total £2OOO ; liabilities —bills payable in Dooember £OBI 11s 61, do in January £789, do. in February £230, other debts £325 10.*, total £1720 2s. Tho third change was that botwoon 5 January 17th, 19JO, and February Ist, j 1900, ho did contract dobls with Wade aud Son, Gisborne, tinsmiths, to tho amount of j £l4 19s 3d, not having any reasonable or ! probable ground of expectation of being ablo to pay tho same as well as all bis other debts. Tho evidenco of Messrs Colctnau and Hall given in tho previous case was aocopied in this oaso. John Win. Wade deposed that accused owed witness' firm over £2OO at tho time of bankruptcy, aud it had not been paid siooe. Between January 17th and Feb mary Ist aeoused obtainod credit lo the amount of £l4 19s BJ. Mr Stock : Did not Mr Skoet, in December, prior to obtaining oredit, arrange to build a bouso for you '?—Yes ; it was upon that arrangement I gave him orodif. Did you know his finaocial position was not good ?—I had an idea, but I did not know.