OPEN TO QUESTION

Sun (Auckland), Volume III, Issue 742, 15 August 1929, Page 11

OPEN TO QUESTION

BANKRUPT’S TRANSFERS OF PROPERTY BUILDING SOCIETY’S AUDITOR (Special to THE SUN) WHANGAREI. "Wednesday. The affairs of A. M. Rust, accountant and formerly auditor to the Whangarei Building Society, were invest gated by tne official assignee, Mr. A. L. Tressiaer, at a meeting of creditors today. Mr. D. H. Xorthcroft appeared for bankrupt. The only proved creditor was the Whangarei Building Society, tor whom Mr. Harrison appeared. The Ale disclosed that £ 158 4s 4d was owing to the Bank of New Zealand on mortgage- of ;i section in Rust Bane, valued at £3OO, iurniture was estimated to be worth £l2, and shares tn the society £47 12s. The only unsecured creditor was the Building iSoriety. to which £1.682 Is was owing, leaving a deficiency of £ 1,480 13s 4a. danicrupu’s statement read as follows: I obtain'd an appointment as auditor •lor the Whangarei Terminating Building Society aim during that time certain of its funds were not accounted for. and judgment was obtained against the sec reftff, but niab.e to übtain the fruits of its judgment. SOCIETY CLAIMS SHORTAGE On December 20, 1928, the society issued a writ against me, claiming the amount of the shortage, alleging mat i was responsible tor tne loss because of the fadure bn my part to audit the books correctly, and inform the shareholders of the position. 1 had difficulty m auditing the books, and these difficulties were explained to the dire*, tors irotn lime to time. Under the circumstances 1 was nf a i/iind to defend the proceedings brought, against me by the Society, I nit 1 was in*vised that because l had not notified the shareholders of the society and drawn their attention to the position of the accounts in iny annual report, 1 was linM*" for the loss. 1 then consented to judgment for the sum of £1,682 Is Bankruptcy proceedings were commenced against nie and as I had no hope iif meeting the judgment 1 consented to an order for adjudication. To Mr. Harrison, bankrupt detailed the circumstances surrounding the transfer of a house and section and a motor-car to his daughter, and replying to Mr. Xorthcroft, said that when he transferred the property to 14s daughter he had no thought of preventing’ the Building Society from getting it. The car was bought at a time when he owed nothing, and his daughter used it in the course of her work as a music teacher. OFFER IN SETTLEMENT Rust said he had always taken the staTitl that he owed the society nothing. ■‘lf that is so why did you offer the society £6OO in settlement?” asked Air. Harrison. * I believe that some such offer was made by my solicitors, hut without my knowledge or sanction,” replied Jiuiit. “My sister was acting for me at the time. and. of course, if she had made such an offer I would have stood by it:" The assignee said that in the abspnea of specific dates little could he bone. Although Rus contended that he Had always held that he was not responsible in any way for the losses he had either consented to judgment or allowed it to go by default. This .showed that he evidently felt all along that he would be held responsible for the losses. and the society could legally recover the money. The meeting was adjourned to allow the assignee to investigate the dates of the transfers.