THE SOUTHALL BANKRUPTCY

Taranaki Daily News, Volume LIII, Issue 227, 19 January 1911, Page 8

THE SOUTHALL BANKRUPTCY

FURTHER DEBTS DISCOVERED. SHOULD HE BE PROSECUTED? A further adjourned meeting of credittors in the estate of T. It. Snuthall, slinrclirokpr, late of New Plymouth, was held in the Deputy Official Assignee's oll'ice, Devon street, yesterday afternoon. The following were present: Mr. J. S. S. Medley (Deputy Official Assignee) in the chair, Messrs, A. Goldwater, C. A. Benbow, and J. McLeod. Mr. Govett (fiovett and Quilliam) represented Mr. Thome George and Mr. Lennox, of Auckland (creditors), and Mr. Standish appeared for the bankrupt. NEW DEVELOPMENTS. The Deputy Official Assignee said the meeting was held as the outcome of a resolution passed previously to the effect that in the event of bankrupt not being able to make an offer of not less than 10s in the £ within one month, a meeting should be held to consider what should be done. Mr. Medley said the bankrupt had made no offer, but had written stating that it was absolutely impossible to attend, much as he would have liked to. Mr. Good would not help him, and he had nothing to offer, and not even enough to pay his fare up to the meeting. However, he had applied for a position as teacher in a native school, and had every hope of obtaining it. Should lie do so, he would be in a position to pay something back to his creditors. Jlr. Medley said the position was somewhat different from what it was presented to them before, as prool of debts which the bankrupt had not put in his statement had since come in. There was a promissory note for £214 10s Cd in connection with a transaction with a sharebroker. A man named McAlurray had purchased Ross goldniining shares through bankrupt from Mr. Lennox, who refused to take McMurray's P.N., and then bankrupt gave a P.N. of his own, and now considered he was not liable as he did not buy the shares for himself. Mr. Goldwater: What became of the shares?— They were sold at a loss oi £214 10s Cd, which the debt represents. Besides this amount, continued Mr. Medley, there were others, viz., telephone £2 5s 7d, The Dominion £4, Strange and Co. (Christchurch) £lO 9s, Mr. Woodhouse £7 3s Od, etc., making altogether about £240 more than was, disclosed before. The position was that | apparently bankrupt was not in a position to make an offer. He had been wired to, and told that if he did not appear a summons would be issued, but he had not answered. The position was a great deal worse than at the first meeting, and it seemed to him (Mr. Medley) that bankrupt had-laid himselt open under the penal clauses of the Act. Of course, the other position was that there were no funds in the estate, and he knew from experience that on several occasions bankrupts had escaped through there being no funds with which to prosecute. The only assets were £2 1.3s in the National Bank, and of this 5s would go for closing the account and some fewj shillings for advertising, so that there would be not more than £2 to pay for a! prosecution.

Mr. Goldwatcri: In a criminal prosecution, would not the Government find the funds?—A certificate will have to he obtained from the Crown Prosecutor, and he will have to he paid for the consultation.

INSTRUCTED TO PROSECUTE. Mr. Govett said his instructions were to urge a prosecution, the offence coming under sub-sections (c), (d), (h), and (o) of section 138 of the Bankruptcy Act, and to call attention to section 144. If the facts were placed before the Crown Prosecutor, he considered the prosecution would lie.

Mr. Medley: The Crown Prosecutor would want to examine the bankrupt first very likely. Are your clients, Mr. Govett, prepared to ftrrnish any funds towards the expense? Mr. Govett: My instructions were received by ivire, but it was supposed that there was enough in the estate to pay for the Crown solicitor's fee.

Mr. Medley: Tt lias been the custom not to lay the ma I tor before ilk- ; .Town Prosecutor unless his ha mis are *ilengthened by a resolution of some sort. Mr. Goldwater: Would lie not ordci a prosecution without a resolution? Mr. Medley: \'o, I do not think so. When creditors attend the meetings some sort of a resolution is looked for. It might be the ease, where there was no attendance, that assets could lie recovered; but unless there was IDs in the £.l, or rather more, no proceedings I have been taken.

NO PROSPECTS. Mr. Goldwater said he could not see that even 10s or as a week could be saved by bankrupt out of his salary; all of it would be required to keep him going. He did not see how even one shilling per annum in the £ on the£soo could be saved. Mr. Goldwater said he would move a resolution, not because the amount of his claim was a large one, but on account of little things done by the bankrupt.

Mr. Medley: I may say bankrupt rather annoyed me. When he was going away I told him lie would have to attend the meeting, and he promised faithfully to do so without expense to the creditors.

Mr. Standish: Xo doubt he hoped to get assistance from Mr. Good. THE RESOLUTION. .

Mr. Goldwater then moved the following resolution: -That the Official Assignee be requested to take action under section 144 of the Bankruptcy Act, 11)08, the oll'ence alleged coming under sub-sections (c), (d), (h), or (s) of section 138 of the Act."

The clauses mentioned are as follow: (c) Has with intent to conceal the true state of his affairs, wilfully omitted at any time' to keep proper books or accounts; or (d) Has within three years before the commencement of the bankruptcy failed to keep such books of account as are usual and proper in the business entered on by him, and as sufficiently set forth his business transactions and disclose his financial position; (h) has by rash and hazardous speculation gambling, drunkenness, or unjustifiable extravagance in living brought about his bankruptcy; (c) Within three years next before the presentation of a bankruptcy petition by or against him—by any false representation or other fraud or by any false pretence of carrying on business and dealing in the ordinary course of trade, has obtained any property on credit and has not paid for the same, unless it is proved that he had no intent to defraud."

Mr. Govett said that if the matter was put before the Crown Prosecutor, and he said it was no use going on, the Deputy Official Assignee's liability would cease.

Mr. Medley: If the certificate is obtained, would not a resolution be wanted to proceed? Mr. Govett considered the matter would then be one for the State, which would proceed as in a criminal prosecution.

A seconder to the resolution being called for, Mr. McLeod said that personally he did not feel disposed to second it as he was only a small creditor. The offence did not affect his opinion at all. Mr. Govett: Not keeping books; why, it is one affecting every one in the country.

Mr. Standish: He kept hooks of a sort. Mr. Medley: By the strongest stretch of imagination they could not be called books!

The resolution lapsed for want of a seconder.

PUSHING THE MATTER.

Mr. Govett: I will go further now. I take up the position that no resolution is required, and that the Deputy Official Assignee is failing in his duty i'f he does not go on with it. Will ;rou consider that position? Mr. Medley: I night see fit to do so if the creditors are prepared to come up with an.indemnification for costs. I have that right before taking the risk myself, and I will not say just now what course I will take.

Mr. Govett: I understand, then, that you will consider what I have said, and I would ask you to write me officially so that I can hand your decision on to , my clients. THE BANKRUPT'S SOLICITOR. | M r . Medley: Yes, I will do so.

Mr. Standish said bankrupt had also written to him on very much the same lines as the Deputy Official Assignee had received. There were two letters, in fact, and he stated he was quite willing to attend if the money were sent him, but he had no means of getting up by himself. He also reiterated his statement in regard to the appointment to the native school, promising to give some of his salary to the Deputy Official Assignee for the benefit of his creditors. If the meeting went against bankrupt, pointed out Mr. Standish, it would prevent him getting the position, and they would be no better oft' and would be, in a way, "cutting off their nose to spite their face."

In answer to Mr. Goldwater, it was stated that the schedule of liabilities amounted to between £450 and £SOO. Mr. Standish further stated that in regard to Mr. Lennox's claim bankrupt, though really liable, should not be so. He might have been weak and foolish in giving the P.N., but it should be said for him that he had entered into business without any knowledge of the class of business to be done, and he had not done anything actually dishonest or with any intention to defraud his creditors or try to "beat" them. He had got into a bad position from ignorance, and it would be a gracious act on behalf ot the creditors if they would give him a chance to make an endeavour to pay up. Any other course would only be hampering bankrupt, who would, he was sure, make good and send along some money when he had earned it. Mr. Standish asked the meeting to consider the circumstances before passing any resolution. THE LAW.

Mr. Govett said it was not necessary to pass any resolution. Section 144 was as follows: "It shall be the duty of the Assignee when he has reason to suspect that any person has committed an offence under this Act, to lay the facts of the case, so far as he is acquainted with them, before any person acting as Crown Prosecutor in the district of the Court which has jurisdiction in the bankruptcy in regard to which the offence is supposed to have been committed, and if suck Crown Prosecutor certifies that there are reasonable grounds for a prosecution, then the Assignee 'shall' lay an information against such person."

The meeting then adjourned sine die.