Girl Bankrupt’s Story

Sun (Auckland), Volume IV, Issue 1014, 3 July 1930, Page 13

Girl Bankrupt’s Story

HANDLED MORE THAN £IO,OOO Money Lent in Small Amounts DISSATISFACTION with the state of the affairs of Miss Winifred Baker, a bankrupt clerk, was expressed by the Official Assignee, Mr. A. W. Watters, when I l '' resumed the examination of her financial transactions;.

Miss Baker was adjudicated bankrupt in the Supreme Court recently. Mr. R. A. Singer, for bankrupt, stated that Miss Baker had not received a penny Interest on £3OO she had borrowed originally in separate sums to lend to a man who had promised a good rate of interest. She had therefore been compelled to borrow at a high rate of interest to meet her liabilities. Only two claims had so far been admitted as proved, the assignee stated, others having been rejected on the advice of the Crown solicitor, who had advised a full investigation into them. The assignee added that he had not yet decided what action should be taken concerning Miss Baker’s conduct, as her affairs had not been fully investigated. He announced that the two proved creditors’ representatives could examine the bankrupt. The principal proved creditor to whom £650 was owing was represented by Mr. W. H. Cocker and Mr. Spring appeared for the other proved creditor, who had £47 owing to him. BORROWING BEGINS Questioned by Mr. Cocker, Miss Baker said that she first borrowed mone yin 1926, obtaining £IOO from each of three persons. She obtained sums from her father an mother, but had no idea of the total amount involved. Mr. Cocker: Not even approximately ?—No. Mr. Singer said it should be interpolated that. Miss Baker had made no entry after the first page in her book. There had been weekly transactions over a period of four years or more. Mr. Cocker: Would it be correct to say that the total received from all people would be somewhere about £4,000 or £5,000? —Oh, no. Mr. Cocker: What would it be? Witness (after hesitation): Perhaps £I.OOO. Mr. Cocker: But how much has gone through your hands? I suggest considerably more than £6,000. Witness: Yes. Perhaps £IO,OOO or more,—Yes, perhaps £IO,OOO. But you say you only borrowed £I,OOO. Is that statement correct?— Yes. Then what has happened to bring the total up to £IO,OOO. What was the £9,ooo?—lt was earnings and wages. it ness went on to explain that she had lent a lot of money herself. She did not know how much. Mr. Cocker: That's curious; most people know how much is owing to them?—You can’t keep check of all sorts of small outgoings. I often lent small amounts. If you lend a. person a shilling for lunch you don’t always keep account of it. I often lent small amounts. Explaining the method by which such large sums passed through her hands, Miss Baker said she might receive £IOO on Monday and pay back £lO5 on Tuesday. The following day she would receive or pay out more money, but the principal would still remain the same, from Peter to pay Paul,” remarked the Assignee. “That is her explanation, but whether it is true is another matter.” Replying to a comment by Mr. Cocker that there was a large margin which required a good deal of explanation. Mias Baker said there were 52 weeks in a year and if £IOO was loaned or paid out in one week it made a big proportion of the £IO,OOO.

Mr. Singer pointed out there were* more than one tran action and tainly more than one a week. Mr. Cocker became involved in an argument with Mr. Singer when he asked bankrupt whether the signature “E. T. Baker” on a document was that of her father. On the advice of Mr. Singer, Mi-s Baker declined to answer the question. Under cross-examination by .Mr. Spring, Miss Baker refuted the suggestion that she had purchased any jewellery. “Are you the possessor of a ring watch that cost £50?” asked Mr. Spring. , Witness: I did have one. but I haven’t got it now. NO CHAMPAGNE PARTIES Mr. Spring: Did you give champagne parties?—No. I never bought champagne in my life. Handing over a not t Miss Baker. c<lunsel a sked wi;:-’. it was her’s > She acini #d it was. Mr. Cocker: In it you say you are up against a brick wall ; nd would do anything for £IOO. Have you ever handed over money for people to hold for you? —No. Bankrupt, added that she had often offered to pay off the principal of her borrowings, apart from the interest. She thought that about £l2 or £l3 a week would pay off the principal within a couple of years. If she had not lost her position she had hoped to be able to pay this.