AFTER THREE YEARS

Sun (Auckland), Volume IV, Issue 1066, 2 September 1930, Page 11

AFTER THREE YEARS

PROLONGED BANKRUPTCY PROCEEDINGS CREDITORS DISSATISFIED Since January, 1928, the affairs of F. J. McDivitt, garage proprietor, of Auckland, have been in the hands of the official assignee, and creditors have not met since January 23, 1928. When creditors met this morning after nearly three years, the official assignee, Mr. A. W. Watters, informed them that bankrupt could not be present for another half-hour, but in the meantime he would outline the case and inform them of what had occurred at previous meetings and also of bankrupt’s statements. Mr. Watters said that the first meeting was held on January 10, 1928, and the adjourned meeting on January 23, 1928. At the latter meeting, a brother of bankrupt, in a sworn statement, said be held a power of attorney and en-' deavoured to collect some of his brother’s book debts, but he bad no list of the amounts to be collected. ITe had no means of communicating with his brother, and he did not know whether he was in Australia, or New Zealand. His brother had said lie was going to Wellington, and he had not heard of him since. INSURANCE MONEY RECEIVED The assignee, continuing, said he had examined bankrupt on June 12, 1930. Bankrupt stated that he started business in 1926 as a petrol station proprietor, but after 12 months he had a fire and received insurance money amounting to £570. He lost his books in the fire. Bankrupt detailed his financial transactions and said he left for Australia about the end of May, 1927. He knew he owed some money, but he had given his brother a power of attorney, and thought the debts collected would pay his own debts. He did not tell his creditors he was going away, but thought they knew. He did not know he had been adjudged bankrupt until he returned to Auckland on June 3 0, 1930. Bankrupt, who arrived at this stage, was cross-examined by the assignee regarding his moverpents from April 6, 1927, until May 27, 3 927, when he left New Zealand. Bankrupt said he had been in Auckland with the exception of four days in Wellington. The Assignee: What were you doing in Auckland? —I was trying to collect some of my book debts. A Representative of a Principal Creditor: Did you promise that after you had got the money from the fire you would settle with your creditors? —I don’t remember making that statement. VISIT TO AUSTRALIA Why did you go to Australia?—l was interested in a washing machine, and my wife was sick. Nobody knew that you were leaving Auckland until after you had gone?—Oh, yes they did. What was the idea of paying sums to two firms while you did nothing for your principal creditor?—There was no idea. “The position is very unsatisfactory since you drew that money,” said the representative. “The whole thing has been clouded in mystery since the date of that fire.’’ The Assignee: You left New Zealand with all your assets and made no arrangements to pay your creditors. Is that not so? —I suppose that is right. Do you think that is a proper thing to do? —I didn't look at it in that light. The Representative: I* move that the question be referred back to the Crown Solicitor with a view to prosecution. The Assignee: I can't very well do that without fresh evidence. Replying to a question by the assignee, bankrupt said be would endeavour to supply a statement for creditors, detailing what he had done with the £570. On the assignee’s recommendation it I was decided to adjourn to enable bankj rupt to supply a statement.