£7,000 Missing

Sun (Auckland), Volume II, Issue 528, 4 December 1928, Page 1

£7,000 Missing

SOLICITOR MISSING TOO

H. R. Malcolm’s Creditors Meet

SURPRISING facts In connection witU the disappearance from Auckland of Hector Robert Malcolm, a solicitor, of 54A Empire Road, were revealed at a preliminary discussion by his creditors this morning. Over 30 were at the meeting. The official assignee, Mr. G. N.. Morris, said that, as far as his knowledge of the position extended, the deficiency in the trusts reached £.7,171 15s.

Mr. Morris made it clear that the meeting would not be able to adjust much of the business in connection with Malcolm’s affairs. He was merely receiver, to which position he had been appointed on November 15. “I put this meeting off, expecting that Malcolm would have been adjudicated bankrupt,” Mr. Morris said. “It appears that the petitioning creditor merely lodged the petition, and did not carry it through. As the petition stands, I am not able to proceed with the realisation of the assets. Not a great deal can be done at present. “I understand that a creditor has issued a warrant for Malcolm’s arrest. He has gone to Australia.” After enumerating Malcolm’s affairs, Mr. Morris said that he would like a committee to be formed in advance. Its main purpose would be to deal with deeds, and to find out more information concerning a coal company in which Malcolm had an interest. “Naturally I would be glad to have as many legal represenatives as possible on the committee,” Mr. Morris said. The committee was set up, and held a discussion after the main meeting. One creditor’s representative asked Mr. Morris if it were advisable to have the Press present at the meeting. The assignee and another creditor’s representative pointed out that the facts concerning Malcolm would have to be made public sooner or later, and, in any case, publicity might assist investigation. BIG TRUST DEFICIENCY The assignee said that the amounts owing to trade creditors reached £ 427 Os 9d, and the deficiency from the

trusts was £7,171: 15s. The total liabilities, to the assignee’s knowledge, were £7,598 15s 9d. “These figures are not complete,” the assignee said. People have come to me alleging defalcations, but they have not returned to make further statements. “It appears that all that remains in the trust .account is £l3 4s sd. Possession had been taken of the office fittings and equipment. Their value Is estimated at about £ 60. “The books have hardly been kept at all since last March, apparently. It is very hard to determine just what the book debts are.; Among Malcolm's papers a number of 1.0.U.’s and P.N.’s has been found. “There is a house in Ponsonby subject to a first mortgage of £375, and I hear that there is a second one, or at least an agreement to one. Malcolm also holds a sub-mortgage of £ 125. He holds a large block of land at Te Papapa. It is subject to three mortgages, and an agreement to one. “But the only asset from which I expect to get any considerable sum is an interest in a coal company down Taranaki way. There are 4,000 fullypaid shares in this company, and 4,350 paid up to 2s. Malcolm also appears to have been entitled to cash of about £3,000 to £3,500 in connection with the sale of shares. The company says that the money would be applied to expenses, but I have not gone very fully into the position.” Mr. Morris added that the only other asset he had heard of was a car. It seemed that just before Malcolm left New Zealand he had obtained a transfer of the car from his wife, and it had been disposed of, apparently to pay Malcolm’s expenses to Sydney. The assignee concluded by saying that he would be bound to call another meeting when the adjudication of Malcolm as a bankrupt had gone through.