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NZ Truth, Issue 1143, 27 October 1927, Page 5

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Bankrupt Serves A Gaol Sentence

(From "N.Z. Truth's" Special Auckland Rep.)

In refusing to grant the discharge of Gerinaro Nigro, a bankrupt land speculator, who had served 12 months' imprisonment for a breach of the Bankruptcy Act, Judge Stringer declared that it was not the fact that this man had been a speculator that was now proving the obstacle, but the circumstance that he had not been honest and straightforward m his dealings. He had attempted to ■ swindle his creditors. "T HAVE formed a very bad impressibn of this case m my previous 'dealings with it and would prefer that it go before another judge," said his honor, after perusing the official assignee's report. Lawyer Dickson, who' appeared for the bankrupt, stated that he preferred Judge Stringer to deal with the application for the very reason that ho was fully acquainted with the facts. He pleaded for the granting of the application on the- grounds that it appeared, only reasonable, since Nigro had expiated his offence .by the term of imprisonment he had served. Judge Stringer pointed out that the official assignee's opposition to the application was m the public interest. Lawyer Dickson: But he has paid the penalty. His Honor: "But is that any reason why he should be given his discharge and left free — possibly to resume hjs old business practices?" ' Lawyer Dickson: "He cannot get work until he is discharged." Judge Stringer: "Do you mean to say he cannot get work until he receives a discharge from bankruptcy?" Bankrupt's counsel intimated that the fact that his client was still undischarged went against him m his efforts to secure a position. HIS TRADING METHODS The judge then explained that h was not the fact that Nigro had been a speculator that now was proving tha obstacle, but the circumstance that he had not been honest and straightforward m his dealings. He had attempted to swindle his creditors. Lawyer Dickson: "But it was a slump that caused his failure." To this his honor said he had no doubt that had success continued to attend Nigro's ventures he would have paid all his creditors m full. The fact remained, however, that he had perpetrated a barefaced swindle. Nigro's counsel advanced the opinion that a speculator was a decent citizen so long: as he kept within the law. Judge Stringer: "But he committed perjury." Lawyer Dickson: "He did not go int« the witness-box." His Honor: "Nigro made statements before he went into court." Lawyer Mackersey, who appeared with the official assignee, strongly opposed counsel's suggestion that his client be given a conditional discharge to take effect m a year or two. He read lengthy extracts from records of the bankrupt's previous examinations. Nigro, he stated, had kept no banking account for 10 years and under examination had adopted the principle of "failing to remember things." ■ In refusing to grant the discharge his honor said he knew too much about the case and suggested that the application be brought later before another judge. . "The principle of the court m these matters should be to refuse discharges where a man by his trading methods has proved himself, as m this instance, ; unfit to carry on business," concluded ! Judge .Stringer.