“ACTED AS DUMMY”

Sun (Auckland), Volume III, Issue 677, 31 May 1929, Page 11

“ACTED AS DUMMY”

RID*IE BLOCKS BANKRUPT’S DISCHARGE \FFAIRS OF A FARMER ‘I don’t care about letting him loose on the land speculative community for some time,” remarked Mr. Justice Herdman in the Suortme Court to-day, in suspending Thomas Edwardes Eyre, a farmer, from obtaining his discharge from bankruptcy in two years. The application was opposed by T. | ’hndeno-Jackson. Supporting the application. Mr. Holmden said that Eyre made a prracice of buying farms, and after working and improving the properties veiling at a profit. Heavily affected by he slump he filed in bankruptcy a September, 1925, and received his three months later, which oun3el argued proved the Court was ausfled. At the time he was farmTg at Manurewa, the property being , mortgaged to Friedlander Bros., Ltd. i “According to the official assignee.” , ►marked his Honour, “bankrupt was { a dummy for Friedlander.” Mr. *West said that the bankrupt o proved unsecured creditors in the d“st bankruptcy. There were no asset*; it was all Friedlander’s. lu reply to his Honour, Mr. West stated that Mr. Justice Reed had •anted a discharge from a previous ankruptcy in spite of opposition by »o solicitors. The deficiency in the second bankruptcy was £20,000. Mr. Holmden added that after obaining his discharge Eyre had exitanged the Manurewa farm for one j £ 2,000 acres at Woodleigh, the transaction being completed by Mandeno Jackson. Eyre, in the box, said that he had rifled tiie agents that Friedlanders | ;ere financing the deal over the , Woodleigh property, and he con- ! -urted therefore that he was not responsible for payment of commission. ■ On the face of the assignee’s re--°c I would not care to make an ; r, i t for discharge from bankruptcy 1 present,” remarked his Honour, piere is an unpleasant atmosphere j ibout this bankruptcy. I don’t know ***** he would do if released now — I £art again and file as a bankrupt once j ~ ore in three years. Apparently the position was that if the deal turned disastrously Eyre had to bear the and if the transaction was suc--ssfui Friedlander took the profits.” Mr. West impressed upon the court ai *t it would be highly dangerous to ** bankrupt free as he would no doubt - et back to the same position as at Assent. Hia Honour: His fault is that he lowed himself to be a tool. Mr. West: Ye 3, but not as a simple;oa* He is not such a fool as to have played with by Friedlander. His Honour remarked that it was v |dent that Eyre had been acting as •dummy for Friedlander, but as bankMk had undertaken the purchase he j Uld not escape liability. “I cannot either, his bankruptcy in the deficiency then running into added his Honour, in sus‘cnaing the discharge.