HASH-HOUSES AND HORSES.

Taranaki Daily News, 24 May 1922, Page 5

HASH-HOUSES AND HORSES.

“DON’T RUN TOGETHER.” A CHEERFUL BANKRUPT. AND HIS RACING VENTURES. An inquiry into the financial affairs of a Wellington restaurant-keeper who, as a side-line, indulged in various turf speculations was conducted on Monday by the Official Assignee. So dissatisfied did certain creditors feel that it was decided that the papers in the case be handed to the Crown Prosecutor, with a view to a prosecution under the Bankruptcy Act. It was a meeting of creditors in the estate of James Fraser, restaurantkeeper, Wellington. The statement of the bankrupt was read, in which he said that he entered into partnership on February 4, 1911, with the proprietor of Fail’s restaurant, Lambton Quay, each paying £5OO into the business. He raised his portion partly by mortgaging a cottage and partly by loan guaranteed for him. On July 1, 1911, he purchased his partner’s interest for £1232, borrowing- £lOOO on guaranteed overdraft. He held his own in the business until the Theatre Royal in Johnston Street closed down. It cost him £132 to renovate the premises, and £397 to alter the front. Owing to the loss of the supper trade his takings dropped £2O a week. During the first year of the war he did fairly well. His lease was renewed at £1 per week increased rental, making it £l3 a week. He showed a small credit balance, in October, 1915. The epidemic of 1918 meant a stoppage of business for about five weeks. Gradually diminishing trade made the position hopeless, and lie had no recourse but to file. The takings during the. last twelve months decreased by 50 per cent. The assets were: Cash £25, furniture £5OO, surplus £2B; total. £553. The unsecured creditors totalled £3336 Ils 2d; secured creditors £478, leaving a surplus of £2B on securities. The bankrupt was plaqpd on oath for examination, and stated that he had given a number of large cheques to creditors knowing that there were not sufficient funds in the bank to meet

Mr. A. F. Tonks, of the Wellington Bread Co., said he had two of the cheques referred to, one of which was for £72 and the other for £25, which bankrupt had given him and obtained further credit by, but both were dishonored. He asked for preference for his cheques, but several other creditors said they were in the same position. The Official Assignee remarked that the bankrupt had evidently been issuing valueless - cheques wholesale.

RACECOURSE VENTURES. Bankrupt admitted that he had a lease of the racehorse Princess Pat from Mr. Hume, in return for a payment of 15 per cent, of the winnings, but he had never paid over any of the winnings to him. Hume’s claim of £149 was for the percentage. The horse was in Mr. Hume’s stable at the Hutt, and had been taken back owing to the arrears. The winnings of the horse since he had it had been £lO9O. It cost him 60 per cent, of the horse’s winnings for her keep. He travelled to the Feilding, Christchurch, Marton, and "Woodville race meetings when the horse raced. His wife looked after his restaurant business, which was not neglected. He had paid Mr. Carberry £5O towards what he owed him for use of his taxi. He did not give a cheque to W. W. Jamieson—he gave one to Godfrey, and he had it cashed by Jamieson, when it was dishonored. He did not know about making it a practice to give valueless cheques. He certainly gave three, not knowing whether the money was available at the bank, and they were dishonored. The trainer got most of the ■money he had won. He told Mr. Dooley, an hotelkeeper in Feilding, that he was a racehorse owner, but he did not know that on the strength of that statement Dooley cashed two cheques for him which were not met. He offered Dooley his watch as security. He produced the watch (a gun-metal one). After considerable questioning, bankrupt admitted that the watch he produced was not the one he offered Dooley. That one was worth £lO. It was a silver one. This one, he laughingly admitted, was worth 255. NO LAUGHING MATTER.

The Official Assignee remarked that it was no laughing matter, and bankrupt had better treat the examination with less levity.

Bankrupt stated he had no gold watch, but he had six watches at home which did not all belong to him. He •had no gold, except a Kruger sovereign. He denied the statement of two of the creditors that he had told them he had £125 in gold stowed away where a fire could not damage them. He had never said that he was going to give his wife a surprise by showing her £2OO in gold coins. All the cheques he received for winnings had been paid to Mr. Manning, the bailiff, in satisfaction of judgments against him. He would not swear he had not told Mr. Paino he had £3OOO in a loan company which he could not draw out owing to the moratorium. He might have said it, but it was not true. He might have told Mr. Tonks that he had £lOOO, and Mrs. Fraser £lOOO in bonds, and could not get an advance of £2OO on them. He had put no money anywhere in his wife’s name. He declined to tell them what bookmakers he had had transactions with. He did not owe any money to bookmakers. Mr. Scott asked if bankrupt had not taken a bundle of papers out of his safe, stating that there was £2OOO worth there, and he could not get a penny on them at the beginning of this year. ABOUT A GOLD WATCH.

Bankrupt said he might have done so. He once possessed a gold watch which he pawned three months ago. He could not say what he had raised on it. The question being pressed, bankrupt appealed to the Official Assignee as to whether he was bound to answer it. and getting a reply in the affirmative, he stated that he did not pawn it at all. A man named Jack Todd, a seaman, pawned it and gave him £lO. He was a chum, and had gone to Australia. He did not know by what boat or how he had gone. “You bet I got the money,” he added. He did not know where the watch was pawned, and, with a laugh, added, “I suppose I spent the £10.” Tie did not remember what he did with, the half-sovereign Mr. Palliser; asked alfout. He forgot all about it. He had never been drunk in his life. What he thousht

being drunk meant was when they had to lay down in the street bepause they), couldn’t walk. He had Wad a fewj. whiskies the morning referred to. MORE RACING VENTURES. The butcher’s debt of £llBO was incurred in three years. He had paid Rod about £6OO in that time as welLHe had no idea of the amount of betting he had done. Probably £5O wcruld cover it. He lost £240 a year in the restaurant since 1910. He had never? intended to go in for a racehorse, but Princess Pat was “chucked” at him. Besides the winnings of Princess Pat heK had borrowed over £lOOO. He had? kept two bank accounts. One was de-* voted entirely to his racing ventures and the other to the business. Although he had said that he had paid all his winnings since the beginning of the year to the bailiff, he iad not paid the Marton winnings ( £153) to him, but to his own account in the bank. He had done the same with, the Wellington winnings ( £253). He did not know what he had won. He had borrowed £lOO from Paino in July last, telling him that a shipment of crockery whidh had arrived had to be paid for. A creditor remarked that bankrupt had borrowed thousands of pounds and| now said he had nothing. The Official Assignee said it seemed to him that bankrupt came under the penal clauses of the Bankruptcy Act for making false statements to mislead creditors and for issuing valueless cheques. There was no doubt racehorses and hash-houses did not nxntogether. It was decided unanimously to arid'.. the Crown Prosecutor to take action.