SCHAEF'S SORROWS.

Taranaki Daily News, 12 February 1918, Page 6

SCHAEF'S SORROWS.

A LOST £ISOO. SUED BY OFFICIAL ASSIGNEE AND FOUND GUILTY, A further chapter in the train of disasters that have pursued Arthur Waldemar Schaef during the past four months was disclosed at the Wellington Supreme Court on Friday, when the OlHcial Assignee was complainant against Scliaef for alleged breaches of the Bankruptcy Act. Schaef was charged: (1) With having been adjudged a bankrupt he failed to deliver to the Official Assignee £ISOO, Which sum was divisible among his creditors and was in his possession and control; (2) about October sth he did, after tihe presentation of a bankruptcy petition against him, conceal part of his property, namely, the 3um of £1500; (3) failing to keep such books of accounts as are usual and -proper in the business carried on by him as to sufficiently show his business transactions and disclose his financial position. Mr- Prendeville said that in an action for slander brought against accused last year by a young lady damages were awarded against him to the amount of £<525. This liability had not been discharged. In July before accused liad beceived £ISOO for a* property, but although admitting at a meeting of creditors that lie had: this money, he refused to give indications as to its whereabouts. He said that the Crown would not,'proceed with the charge of failing K to keep proper books. Samuel W. L. R. Tansey, Official Assiprnee, gave evidence as to statements made to him by Scliaef during the course of the bankruptcy proceedings. Schaef admitted that he had received £ISOO from property. He also said that his creditors would never get any of this. He had received the money on July 10 and •Qiad it in his possession up to two nights before his examination in bankruptcy. Under cross-examination witness said that at the meeting of Sehaef's creditors Mr- T. Young, solicitor, asked where the £ISOO was, and Schaef said: "I decline to say where the money is." Schaef was then on oath, and declined to sign a statement.

Evidence was called showing how the £ISOO paid for the property came to be paid to Schaef. R. M. Green said he was a dhemist, and had lived in Wellington a number of years. In July last he bought accused's properties in Vivian and Home Streets, paying £ISOO cash for them. Since thou he had kept Schaef as a tenant. He paid rent for the studio fn Vivian Street and the house. In his dealings with Sehae? he found him a thoroughly honest man. He had lent him money without any acknowledgment whatever. THE DEFENCE. . For the defence, Mr. Jackson said all the jury would have to be concerned about were the charges of concealment and failing to deliver possession in respect to the .£ISOO. It was plain that there had been no concealment of any property; as Schaef had frankly admitted to the Official Assignee that he had the money. It was admitted that the £ 1500 had not been delivered, yet no specific demand had been made for the money by the Official Assignee. Apart from this Schaef had a perfectly good defence. If there had been concealment and failure to deliver up money. Schaef had acted in a perfectly bona fide defence, as the money was never his. Morally he was not bound to deliver it up. SCHAEF SHOWS EMOTION. Schaef appeared to be temporarily overcome Ipy his Jeelings when he took his place .in the box to give evidence. His Honor suggested that he should give his evidence from the centre of the court. Schaef took a chair there, and proceeded: On September 25 last he was adjudged a bankrupt, but at that time had no property. In July he had sold property in his name for £ISOO. This property was not his, and was provided for iii money by Mr. Gleeson, of Greymoutli. Witness was married twenty-five years ago at Greymout'h, and was there* provided with a home by his father-in-law. He sold this property for £3OO before settling in Wellington. With this he was able to purchase the Vivian street property, and was assisted in the paying off of the mortgage on same by his father-in-law. All witness's money went in mechanical and chemical experiments. Morally the Vivian street property belonged to his wife. The property in Home street wa3 later bought, the money being raised by mortgage. The £ 1500 he received for the property he took to his wife, and she asked liini to take care of it. They kept the money in two or three different places, and latterly in a steel cash-box. Later it was kept in a chest of drawers, which was doubly locked. He had access to this if he liked. He had not this money now, and could not place his hand on it. Just before his examination as a bankrupt his house was broken into, the cash-box removed, and found later in a near-by section. It was then empty. He was at the studio when he received a telephone message to hurry home. When he arrived the police were in possession at his house, the drawer in which the .noney war. kept was bored open, and .'rorn th-it day to this lie' had not seen the money. No one knew the money was there but his wife and himself.

SCHAEF LAMENTS HIS MIS FORTUNES. Judgment was made against him for £704, and this led to his being adjudged a bankrupt. Seharf proceeded to tell the court how he lamented the wrongs done him by the two v/omen, but his Honor interruoted and told him to keep to the £ISOO. To Mr Prendeville: His wife had another property with an equity of ,c2OO, It had been in her name foi eigi'T ton years. He did not make any e>:ph'. -i«|.on about the disappearance of the ,!:!:>(]{) at the meeting of creditors, us he had been instructed by Mr. Wilford not to answer questions in this respect. Wince 1913 he had a series of misfortunes, and had lost money through law suits, illness, and other causes. "Lately," said accused, "my head has felt like two sledge hammers hitting it, what with all the worry I have had. I don't know how X have stood it all."

In his address to the jury Mr. Jackson said Schaef now stood in the box as a ruined and broken man. All this was due to the misfortunes that had followed him lately. Now there was an attempt to add the last straw by putting him if gaol. Schaef had made no deliberate attempt to defraud the Official Assignee, and had acted all through with the best of intentions. Summing up the case, his Honor said the jury had to consider whether the SWWt sqg or whether &«re

was a failure to deliver it up. Then the jury had to find whether there was an attempt to defraud. If this was accused's purpose then he must be found guilty. If he had an honest belief that he was justified in doing what lie had, their Schaef should not be found guilty of fraud. The jury retired at 4.37 p.m., and returned at p.m. with a verdict of guilty. Schaef was mucii affected, but said nothing._ His Honor agreed with certain reluctance to allow him out in his own recognisance of £SO until he came up for sentence the next morning. Before he left the dock Schaef said: "I sought the protection of the law, but never again."