COMPLICATED BANKRUPTCY

Hokitika Guardian, 24 September 1932, Page 6

COMPLICATED BANKRUPTCY

AFFAIRS OF H. D. McINTOSH. SYDNEY, September 11. For some time past the affairs of 'Mr H. D. Mclntosh have been an object of interest and curiosity to the Regis-trar-in-Bankruptcy, and he, can hardly blame the general public 'for being interested as well. For tririke' affairs are complicated to the extremest degree of entanglement, and gradually the investigators have worked their way to a point at which the law . has found it necessary to intervene* In the earlier stages of. the examination i*. became clear that interest would centre largely round thk affair 15 of the Rickards Tivoli Theatres, of which Mr Mclntosh was co-director along with Mr Covell and Mr W. J. Curtis, K.C., a well-known lawyer. It seems that balance-sheets were seldom issued t,o the sharehoders, but after the assets were encumbered by two separate debentures, (Mclntosh gave a . third mortgage over theni for £15,000. 1 At this time, so the registrat was told, the company also owed about £IOO,OOO on long-dated p.n.’s. , . All. this was unsatisfactory enough, but the situation did hot ’ become critical till the: investigators came to a sum of £13,570, which seemed to have| l>een manipulated in somewhat mysterious fashion. Mr Curtis, K.C., was subpoenaed, but failed to appear, and Mr 'Windeyer, acting for the official receiver, went so far as to hint that it might he necessary to issue a bench-warrant and arrest the recalcitrant witness. AN INDIGNANT PROTEST. , Mr Curtis came to the inquiry next day and protested vehem&ntlly against Mr Windeyer’s statements, which be described as “deliberate untruths,” declaring that his personal and professional honour had be.en impugned. As a matter of fact, Mr Curtis had been engaged on the Tin. Hare inquiry for six weeks,, and he had taken advantage of a half-rday adjournam.ent to get in a few hours of golf. 5

So that difficulty was .smoothed over', but worse trouble began. Fob Mr Curtis did not, oh could, not, explain the meaning and use of that cheque for £13,570 ss-“lid, and ..'when the third partner, Mr Covell, was called to give , evidence the position! was clearly becoming desperate, When Covell was asked where the £15,009 borrowed on third mortgage had gone and \vhether it had ever been put to tire company’s credit he could give, no satisfactory reply. As to Curtis, he could only.say that he had lost, about £130,000 “over night” in the sudden collapse of investments, Tr-vt-hat he. would have a complete explanation to offer later on. 1 t. h

..!;.. iiii-.the end, - Mr Wlpdeyer home his arguments to their logical conclusion, and, at the instance of the liquidator,'charges of fraud ancl conspiracy have been laid against Covell, Mclntosh arid ‘ "Curtis,'- K.C. They are accused, as directors of Rickards Tivoli Theatres, of having applied various sums—including that mysterious £13,570 —in ways “other 'than! for the purposes of the Company,” and the subsequent proceedings seem likely to justify the claim of one of the Leading, dailies • that this case is “the -great legal serisation of recent times. 1 ’