THE PRESHAW BANKRUPTCY.

Taranaki Daily News, Volume LIII, Issue 140, 22 September 1910, Page 2

THE PRESHAW BANKRUPTCY.

PDBTHER MEETING OF CREDITORS. A meeting of creditors in the estatt of H. 11. l'rcshaw, farm cadet, Masterton, and formerly a bank clerk at New Plymouth, was held yesterday after-j noon, the Deputy Official Assignee, Mr. J. S. S. Medley, presiding. Ten creditors attended. The previous meeting was adjourned to enable bunkrupt to attend and also that he produce a statement of his receipts and expenditure for the past three years. Bankrupt was present, as was his solicitor, Mr. A. R. Standish. The statement of receipts and expenditure showed his 'receipts (salary) for the three years were £370, whilst his expenditure was £403 4s 4d, showing a deficiency of £193 4s 4d. A sum of £7O 17s 7d was unaccounted for. Mr. Standish explained that the statement was not exactly accurate. Bankrupt could not remember all the items and so had to depend upon his memory for much of the information. Bankrupt having been sworn, Mr. Humphries wanted information] concerning fclie sums borrowed by bank-1 rupt.

Mr. Standish stated that he had ad-' vised bankrupt not to show these sumt in the statement. Mr. Humphries: But they are receipts all the same. Mr. Standish: He still owes the money. Mr. Humphries: He received the money, spent it and owes it, we know, but why is it not shown in the statement? \ | Counsel: Those amounts are among those unaccounted for. In reply to Mr. Campbell, Mr. Standish stated that bankrupt owed him (Mr. Standish) nothing. Mr. Humphries: If bankrupt is able to show these amounts he must have kept a set of books. Where are they 1 The D.O.A. said bankrupt's solicitor had stated that the statement had been made up from memory and therefore was not accurate. In reply to Mr. Campbell, bankrupt stated that he did ribt owe the bank anything. Questioned by Mr. Humphries regarding the losses he had admitted in his previous statement making oyer the counter, bankrupt said that he had made two losses involving in each case £2O, one of which, however, he subsequently recovered. '">

Mt. Humphries could not understand how he failed to ascertain whom be had made the mistake with in the other case, as the sum was so large. Bankrupt had stated that the cause of his filing was his being sued by Ryan, a bookmaker, of Auckland, for money owing through him betting with Ryan for a friend who failed to refund the amount lost. Creditors would' like to know the position, Bankrupt said he could not disclose the identity of the person for whom he was acting, for to do so would be to place himself in a worse position than he at present occupied, as he had nothing to go on. He might be sued for, libel. j A creditor: That's a very unsatisfac tory statement.

Mr. W: Sole: Now was it not your own bet? If not, whose was it? j

Mr. 'Standish considered this was not a fair question to ask. Mr. Sole: It is a fair question, and he should be made to answer it. We want to know whether the thing is a swindle or. not. I Mt. Standish contended it was not right that bankrupt should be made to answer a question that might cause un-j pleasantness to other people. | A creditor: Well, if someone owes bankrupt the money he stiould be' madeto pay it, and the money handed to the creditors. ■ ' "' Mr. Cook: When you borrowed the money from me did you not assureiifie T that you owed no one any money and that "if I accommodated you your troubles would cease? • , Bankrupt: "No,'l' can't 'remember. Mr. Cook: Do you think I-would have been such an absolute fool as to have otherwise lent you the money?; I know very well you could never iave repaid me at the rate Of £3 out of "your salary and at the same time have paid off any of your, other debts. Bankrupt said he could remember nothing about it. It was an unlikely thing for a yoiing man to be "in town and not owe money. He required credit to carry him on till the end of the month. - In reply to Mr. Sole, bankrupt said he could make no definite offer to his creditors., All he could undertake was that he would do 'everything in his power to liquidate the-liabilities, if his creditors would give him time. Whatever happened he would pay them all. , Mr. Sole: What made you file then? Bankrupt: Because I had lost my posh tion in the bank.

Mr. Humphries: It seems to me that you filed to get rid of your liabilities. , Bankrupt: No; I wanted time in which to pay my creditors. i Mr. Humphries: If that was so, why] did you not come and lay the position before us? I am sure none of us would have pressed you. In reply to the D.0.A., bankrupt said tlie bank would not tolerate gambling among its officers. He had gambled in the hope that he would win sufficient money to pay his creditors. He had been pressed and summoned by creditors. Mr. Humphries: But' you could not have been imprisoned whilst you were earning nothing. , Mr. Sole said the fact of the mattei wo 3 that he could not have been imprisoned before, but by filing he had laid himself open to imprisonment Questioned by Mr. Humphries, bankrupt related at length the history of a certain cheque. There were sufficient funds in the account to meet it, and so bankrupt borrowed £2O in cheques of £lO from two parties, cashed/ them, and so kept his till correct. One of the £lO crecues was "no good," and so he-rang up Mr. Campbell, who had changed it, to hold it over. This Mr. Campbeli could not do, as he had it in, but he intimated that he would send along his own cheque for the amount, which he did. The bank manager saw the cheques, and as the result of bankrupt's) exnbiistion the fact that he had been bating leaked out, and he was ordered to lu/t'quarters at Wellington, and lost his position. Mr. Campbell said bankrupt knew when he hsnded him the £lO cheque to change that it was no good. Was that the action of an honest man? A credUor: Perhaps the money lost ovsr the bunk's counter went to pay the bookies.—No reply. Mr. Sole- Fow much did you pay the l-..>)kies civring the past 12 months?— Bankrupt: I have no idea. Bankrupt, in reply to the D.0.A., Stated that hi» life ittiarance .policy, had lapsed, that he had no expectation' of reccing monw from "&fHjjj|]!

Mr. Humphries: I don't think wt ought to expect his brother to help him. Thv: young ;us got himself into trouble and let him get out of it himself. Mr. Sole thought they should hano bankrupt over to the Beautifying Association and get some work out of him since there was no chance of getting any money. Bankrupt said he was quite prepared to work for his creditors. He was working on a farm, and hoped that aitei Xmas he might be able to secure a position. After further discussion, Mr. Deare moved: That bankrupt's discharge be opposed until he pays his creditors 6s 8d in, the £. —Mr. Greiner seconded. Mr. Humphries moved that the amount be 10s, this being carried m the casting vote of the D.0.A., who is bound by law to give his vote for the larger amount in such cases.