Law-Clerk Manages Theatrical Venture

Sun (Auckland), Volume I, Issue 235, 23 December 1927, Page 13

Law-Clerk Manages Theatrical Venture

PLAY THAT FAILED QUESTION OF GUARANTEE The story of a theatrical venture, “The Private Secretary,” which brought bankruptcy to the manager, Edward Frank Guinness, a middle-aged law clerk, was recounted this morning in the office of the Official Assignee, Mr. G. N. Morris. There was only one creditor in the estate, a Mrs. E. H. Hopkins, to whom debtor owed £228. He had no assets whatever. Bankrupt furnished a long written statement, which, in effect, said Mrs. Hopkins agreed with a Mr. J. Mead to finance the play, himself to be manager of the venture. Money was necessary for preliminary expenses and Mrs. Hopkins suggested that an account be opened in his name, so that he might draw upon it as he wished for the payment of expenses. This was done, and an overdraft secured for approximately the sum now owing by him, Mrs. Hopkins guaranteeing the overdraft. n After a tour of a fortnight about Christmas time, 1926, Guinness returned to Auckland and informed the bank that the venture had resulted in heavy loss. Immediately repayment of the overdraft was asked, and the bank was referred to Mrs. Hopkins, as guarantor. However, she repudiated liability through her solicitors, contending that the account was in his name and he had borrowed the money from her. Judgment of the court was given against him for the amount and to protect himself he filed in bankruptcy. “NOT MORALLY RESPONSIBLE” Examined by the assignee Guinness said that he considered himself legally but not morally responsible. He had lost his employment simply because he owed £2OO and there was no suggestion of any malpractices. Cross-examined by Mr. E. H. Northcroft, counsel for Mrs. Hopkins, bankrupt said he had been a law clerk for 30 years. When Mrs. Hopkins placed the theatrical scheme before him he advised her against it as a friend and not as a legal adviser. Guinness denied Mrs. Hopkins’s allegation that he had persuaded her to lend him the money to finance the project as his own. He informed the bank at the outset that the venture was in Mrs. Hopkins’s name and not his. He was to get nothing out of the play if it was successful, but was merely giving his services to help his friend. Mead.

Mr. Northcroft pointed out that it was not necessary that the account should have been in debtor’s name. It could have been opened in Mrs. Hopkins’s name and Guinness could have obtained authority to draw upon it. Bankrupt admitted filing with the view to evading payment to his creditor and so nullifying the judgment summons. Further, he refused to apply for his discharge and to agree to a judgment against him for the amount of his liability. Mr. Northcroft said that the matter would be thrased out in the court when Guinness eventually applied for his discharge.