BANKRUPT GROCER.

Wairarapa Age, 12 March 1927, Page 4

BANKRUPT GROCER.

SUPREME COURT EXAMINATION. A STATEMENT CHALLENGED. A publie examination of the financial affairs of William John O’Meara, bankrupt grocer, of Carterton, applied for by the Deputy Official Assignee and granted by His Honour, Mr. Justice Seed, was held in the Supreme Court yesterday. Mr. Justice Reed presided, Mr. T. Jordan appeared for the D.0.A., and Mr. D. L. Taverner for the bankrupt.

Under examination by Mr. Jordan, bankrupt detailed the facts leading up to hrs commencement in business ae outlined before his creditors (a report of which was recently published in “The Age.”) He stated that when arranging with Johnston and Co., of Wellington, for the supply of stores, he told them he had assets in tho way of shares, but said nothing of a freehold property which, two weeks prior to the commencement of business, he had transferred to his wife’s name. He had transferred the property to his wife to get sufficient capital to etart i:i business, tho arrangement being that his wife took the house and advanced him £7OO of her own money, £4OO of •which was to pay off the mortgage on the house, and the remaining £3OO to go into the business. lie attributed his position to having to give credit. Mr. Jordan: “Do you suggest that your book debts of £B4 were responsible for your position!”—“Yes, partly.” Continuing bankrupt stated that he only kept a day book from which he could give a rough idea of his pemtion. A statement from this book might easily be misleading. Bankrupt was examined closely by counsel on a statement he had given to Mr. Pain whom he had asked to guarantee him at the bank. The statement showed an excess of assets over liabilities of £lO2O, which counsel alleged was fictitious. According to his own statements, filed with the D.0.A., stated Mr. Jordan, his actual balance at that time was £670.

Bankrupt replied that he did not represent that as his position. Mr. Jordan: “Shortly before you filed, your sundry creditors were shown as £225, yet six weeks later they had increased to £742. How do you account for that!”—“When I assessed that figure I only took into consideration the creditors who were pressing at the time. ’ •

His Honour: “Did you tell yoni solicitor on November 1 that your debts were £47o!”—“Yes.”

His Honour: "Well, that figure must have been at least £250 short!”— “Yes.”

Mr. Jordan: “Is not most of tins statement of yours pure guesswork!” —“No, lam not a gambler. It is certainly a rough estimate.” In a further statement bankrupt stated that competition in business mainly caused his downfall. There were ten grocer shops to serve & population of 1600.

Mr. Jordan: “Did you not attempt to make your position look better than it was to induce Pain to guarantee you!”—“No, I did not.” Mr. Jordan: “On September 3 you quoted your balance of assets at £lO2O, yet on November 5 your deficiency was £862, a difference of £lBB2 in six weeks. How do you account for such a position!”

His Honour: “We have the explanation. Bankrupt has admitted that the figures in the statement are wrong." Mr. Jordan: “How do you account for your weekly banking falling away from £lOO and over in 1925 to as low as £22 just before you filed!”— “lf I remember rightly I was doing from £BO to £lOO a week, but the business fell away towards the end.”

After further examination by Mr. Taverner, His Honour made an order to the effect that bankrupt had been sufficiently examined.