A BANKRUPT SOLICITOR

Hokitika Guardian, 13 March 1925, Page 2

A BANKRUPT SOLICITOR

PECULIAII CIRCUMSTANCES. [BT TELKGIIAPD PER PRESS ASSOCIATION.] WANGANUI, March 12. The public examination of Georgo W-i Ilia in AlcCaul, a bankrupt, formerly in business ns a solicitor in partnership with Collins, commenced tills morning. Evidence of a preliminary nature was dealt with ,the formation of the Security Building Society, in which AlcCaul and Collins were the only partners. The Society carried on business for a year, and then developed into a- 1 part of the AlcCaul and Collins business. with which was closely associated idle purchasing of mortgages, at discounts and reselling. Ail audit, as provided by the Act, of the affairs of tho Society had never been taken. Cot*’ 1 ins, who 'kept the books of the _ Society, left New Zealand in October, 1!)23. and lias not. since returned. AlcCaul admitted that he got a sum of £1,400 from a soldier who was about to leave for active service in 1918. He believed that some of this money went into the Soicety, but did not know bow much. The Society had a trust account with AlcCaul, and Collins’ ledger showed the purchase by the Society of sf mortgage from a client for £llOO. This was sold to another client for £ISOO. The £4OO profit went to AlcCnul and Collins. Counsel mentioned that the mortgage had been released and tlie man made a considerable loss.

Continuing bankrupt said that this money was invested when the owner went into camp. They invested £6OO for a Hunterville client in December, 1919. Tie believed this money was invested on a farm near Douglas, which belonged to one Jones. He saw tho farm himself. He did not know whether the farm was bought from MeCiuil and Collins, or from Collins. The firm was concerned in the deal. He did not disclose in a letter to the Huaterville client that the firm was concerned in the deal. He believed that, subsequently, other securities were assigned to tiie client for the money. He did not know whether the Douglas farmer repaid the £509. He did not believe he did. He could not say who received the £OOO. Ho did not know whether the £OOO ever was paid to Jones. He knew that £OO9 was paid into the Building Society, which was McCaul and Collins. There was an entry in the ledger “£505 to Jones,” and an entry in the cash book would appear to show that this sum went out of the Building Society into the account of MeCaul and Co. The examination was adjourned till to-morrow.