BANKRUPT AUCTIONEER

Hokitika Guardian, 11 February 1928, Page 2

BANKRUPT AUCTIONEER

(By Telegraph—Per Press Association.) WELLINGTON. Feb. 10. The case is proceeding in the Supreme Court before the Chief Justice, in which Alfred George Wallace is charged that having been adjudged bankrupt, lie contracted debts amounting to £SO, with Wright, Stephenson’s at Ashburton. £Bl with Pvne, Gould. Guinness, Christchurch, and £122 with the New Zealand Farmers’ Cooperative Assoeiat ion. Tiie Crown's case is that A\ allace. while in business as a fruit auctioneer, was adjudged bankrupt on November Ift. lft‘26. on his own petition. The proved debts were £7131. The assets realised £970. It was proposed to show that defendant knew his position was insolvent in July. 1926, when his total liabilities were £7355 and assets £2910. this being according to the accountant who made out a statement, after the matter came into the hands of the Assignee. It is claimed defendant must have known then lie was insolvent but lie went on incurring debts, in New Zealand alone amounting to £Bl7. Wallace’s defence is that he had reasonable grounds to believe he would pay twenty shillings in the pound when he contracted the debts. He had built up a good citrus fruit connection with America, hut an embargo had lieen placed on exports from Amoricu owinji to art outbreak of foot and month disease. To keep the business going during the embargo, lie purchased tmit jicnn the islands and elsewhere, and this ended disastrously. When the embargo was removed it was foo late. It is further sought to show there was a reasonbale prospect of selling the business and offers were broken off by a meeting of his creditors In the re-trial of Arthur George George Wallace, who was adjudged a bankrupt on November 19th. 1926. on charges of contracting debts without reasonable expectation of being able to pay them, the jury, after nearly four hours’ retirement, failed to agree. A new trial was ordered for Alondav at 10.30 a.m.