CATERERS IN COURT

Hawke's Bay Herald-Tribune, Issue 201, 10 September 1937, Page 7

CATERERS IN COURT

Case Against Two Partners Dismissed THE OTHER T0 BE TRIED

One charge against two of the partners of the catering firm of Mooney and Hyde was dismissed by Mr J. Miller4 S.M., at the conclusion of tho hearing againet them in the Napier Magistrate's Court yesterday. On a sccond count they were discharged under the provisions of tlie Ofllenders Trobation Act. Thus the chargcs against Phillip McGabe and Laurence Frederick Moouey were denlt with summaUly, while thc third pnrtnor, VVilliam James Hyde, was committed to the Supreme Court for trial on both charges of allegcd breaches of the Bankurtpcy Act which had been jointly preferred aguinst the three. The pro^ecution wae a sequel to the bankruptcy of Mooney and Hyde, trading as caterers to camps on the East Coast Kailway, a meeting of creditors liaving passed a resolution jilacing the matter in tlie hands of the Crown. Solicitor with a view to prosecution. Mooney and McGabo wero discharged on the count of failing to keep proper books, and a cliargo of incurring debts in tlie knowledge that they could not be met was dismissed. O11 both theee cliarges, howover, Hyde is to stand his trial. Dotective-Sergcaut H. Nuttall prosecuted, Mr W. fc>. Averill appeared for llyde, and Mr J. M. Runciman for McCnbe and Mooney. The three defendauts were charged: (1) That having been adjudged bankrupt at Napier on Novoiuber 2, 1930, they have, within tho space of three years before the comineneement of the bankruptcy, failed to keep such books of account as are usual aud proper m the business carried ou by them and as suffieiently settiug forth their business transactions and disclosing their flnan- ] ciai j»osition.

(2) Having been adjudged bankrupt at Napier on November 2, 1936, they did on July 31, 1936, and on divers dates between July 3i and October 9, 1936, contract debts and, at the time of contraeting such debts, could not have had any reasonable or probable expoctation of being able to pay the same as well as all their other debts. P.W.D. Camp Caterers. The bankrupt firm's petition in bankruptcy showed that they owed £1509 2/1 to unsecured creditors, and £207 9/7 to secured creditors, said the Official Assignee, Mr G. G. Chisholm; They had been trading as caterers to five P.W.D. camps on the East Coast line. Mr Averill then challenged the admissibility as evidence of sworn statements made by the accused at an ordinary meeting of creditors, quoting the Bankruptcy Act which prccluded such statements from being used as evidence in criminal proceedings. This was upheld by the Bench. Evidence of tlie various debts incurred by the partnership was then called by the progecutor. One witness said that Hyde had claimed to be a porsonal friend of the Hon. K. Semple, tho Hon. P. C. Webb, and the Hon. W. 'E. Barnard. Most of the business had been conducted by Hyde. Asked by Hyde for a temporary overdraft of £80 to £100 to pay wholesalers, ' Edward Bristow AYaddington, manager of the Bank of Ne«v South Wales, Napier, replied that ho had heatd ^hat they were heading for trouble and could not make the venture pay. Hyde, however, gave satisfactory auswers to all questions put to him, aud appeared to be couJident of success. The overdraft was later arranged, but witness was not aware that tlie business was owing £576 16/4 to creditors. On July 31, witness thougkt, their account was sliglitly overdrawn. Professional evidence^ regarding the books kept bv the partnership was called by the police, and evidence regarding the manner in which the firm's business was conducted was given by the eecretary, Verona Bone.^ For McCabe and Mooney Mr Runciman asked that the magistrate exercise his right to deal summarily with the charges ,1 against his clients, Mr Averill stated

that he had no objection to this course. The two wero therefore discharged under the Offenders Probation Act on a charge of failing to keep proper books and the charge against them of incurring debts was dismissed. Hyde was committed for trial at the November session of the Supreme Court at Napier bn both counts.