BANKRUPTCY CASES.

Gisborne Times, Volume XXII, Issue 1735, 28 April 1906, Page 3

BANKRUPTCY CASES.

TWO PARTNERS COMMITTED FOR TRIAL. At tho Magistrate’s Court yostorday John Sinilh and John Soott, trading as Smith and Soot*, builders, who rooontly became bankrupt, wore prooeodod against on two oharges of broaohes of tho Bank-

ruptoy Aot. The first onso was upon the information of the Deputy Offioial Assignee for having failed to keep proper bocks. Mr J. W. Nolan, Grown Proseontor, oooduoted tho prosecution, and the aocused were represented by Mr Sainsbury. John Coleman, Deputy Offioial Assignee, gave evidenoe as to the bankruptcy, and that suoh books of acoount as are usual aod proper in the busiooss carried on by them were not kept, tho bcok that was kept not properly setting forth their busi» j ness transactions and financial position. This evidenoe was Bupportod by Mr A. F. Kennedy, Follow of tho Institute of Accountants of Now Zealand. Hodeolared that tho books preduoed were not suoh books as were usual and proper in suoh a busiooss to disolose tho fioanoial position. Francis Stafford, timber merchant, said ho had had considerable dealings with tbs bankrupts, and ho was a oreditor in the ' estate to a large amount. Ho could no say if defendants kept any books while ir bu'iness, but the books produood were no! usual and proper in suoh a business. Or May 6th last year he siw the acoused Soott, who brought him a cheque fot ! £IOO, sigoed by M. and 8. E. Judd. Wit' ness told defendant tho obeque should be paid into an account, which ho should have opened in tho bank. All disbursements should be made by oheque, signed by both defendants. He also advised them tbat proper books of account should In kept. He afterwards ascertained they were not keeping proper books, beoause, on May 22nd, accused Soott again paid witness by another person’s oheque, as he had done just previously. About the same time he Baw acoused Smith, and told him they were not keeping proper books, and were not doing right- Smith said bis partner objeoted. From his knowledge acoused had been in business from April 15tb, 1905. Acoused reserved their defence, aod were oommitted for trial.

Tbs aeoond ohargo was then taken, that the firm bad contracted certain debt), iVbioh they had not reason able or proper grounds or expectation of being ab!o to pay as well as their other debts. John Coleman gave evidenoe that when acoouDts were written up, the dtficienoy, instead of being £531, was nearly £9OO at the time of filing, excluding stock-in-trade. The business bad been carried on for nearly twelve months. A book (produoed) banded to him by accused showed that in Miss Judd’s eontract there was a loss of £2O lie, Little's coatraot gave a loss of £49 355, aod Black’s contraot also resulted in a loss cf £275 9s. There was a profit of £9 3s 3d on Eamon’s contract. Black’s oontraot was finished in December, 1905, sc that at the time of completion of this oontract the loss on oontract] would be £336 11a 9d.

The bankrupts, in their written statement, said they started without capital. except that Smith' had about £2O. He produced proof of debt lodged by Evans, Nield and Co., showing a balance due to them by baGkiupts of £7O 9j lid for goods supplied between December 220 d, 1905, and March 28tb, 1906. He produoed proof of debt of Alpha Sawmill?, Timber and Ship ping Co., for timber supplied between January Btb, 1906. and March 2nd, 1906, to the value of £169 16s XOd.

G. K. Pasley, accountant, and seoretary to CommoD, Shelton and Go., deposed that dntiDg February and Maroh of this year the acoused obtained from hia firm goods on credit amounting to £96 la 2d. A. A. Fromm, formerly manager of the Alpha Sawmills Company, deposed that accused obtained goods on credit to the extent oi £169 lOd from the Company. G. L. Evans, of Evans, Nield and Co., timber merobaots, deposed that the accused obtained credit from his firm during D

member, January, February, aod IVlaroh asfc to the extent of dG 140 9j lOd, of which they had paid £7O, leaving a balance of £7O 9s lOd.

Francis Stafford, timber merchant, stated that the aconsed had obtained large quantities of material from him between April 15tb, 1905, and January 23:d last. On January 23rd last they were owiDg witness about <£3oo. Witness stopped their credit, and they obtained no futther goods. He informed both accused that he refused to supply further goods beoause they had failed to keep their word as to payments. Accused reserved their defence, and were committed for trial. The bail in eaoh case was £25 and a surety to that amount.