IN BANKRUPTCY

Gisborne Times, Volume XXVII, Issue 2552, 13 July 1909, Page 6

IN BANKRUPTCY

J. H. NORCROSS’ CASE. I ALLEGED IMPROPER BOOK- | 'KEEPING. . In tli© Magistrate’s Court yesterday morning, before Mr W. A. Barton, S.M., Joseph. Henry Norcross, a bankrupt, *tnd formerly a butcher caiTying on business in Gisborne was charged | with tliat between April Ist, 1908, and May 22nd, 1909, he did fail to keep proper books in his trade to sufficiently set forth his business transactions and disclose his financial position, j Mr J. W. Nolan prosecuted and Mr I T. A. Coleman appeared for the defence. 1 •'< h ' - - . Mr Nolan called Frederick C. Fiddy, . accountant of Gisborne, who said that he was engaged by the Official Assignee 1 to examine the accused’s books. Ho > examined the cash-book and ledgers fully and mado a brief examination of I the other books, tie was of opinion that the books had not been properly \ kept. No accounts showing the amount of indebtedness to the various creditors 1 had ever appeared in the books, except ’ in the case of one or two accounts that had evidently been entered after the hooks had been closed. The account ’ with Messrs Williams and Kettle was 1 one. He found a lump sum of £B9B ’ set down for outstanding accounts, but no details were given. The expendi- ’ ture shown was £322 in excess of the amount shown as received. It was therefore evident that money had been ' received and the amounts not entered. ’ Ho also found that to finally close the I books a fictitious entry had been made "'lso as to arrive at a balance. He had , j asked the bankrupt and Godfrey, who ' | made up the books, for details of the entry, but was told by Godfrey that t the entry was a balancing entry. There [ were discrepancies in other accounts. The entries in the Abattoir account had f been entirely dropped for a month or , two. The last few montlis of the business transactions showed that while the [ average quantity of meat was received the cash sales showed a falling off. , The books did not show the business - transactions or the accused’s financial position. The books showed a discrepancy of £lsl 8s as owing to sundry creditors when compared, with the schedule filed before the Assignee. Mr Nolan mentioned that the Court had power to deal with the case summarily. His Worship said that if sufficient evidence was put forward he would i send the case to the Supreme Court. 3 John Coleman produced evidence that , he was Deputy Official Assignee in Gis- . borne. The accused filed as a bankrupt on May 20th last. The schedule of liabilities and assets and a written statement made by the accused were put in us evidence. Witness, continuing, said he had also examined the books, and a copy of the balance-sheet had been handed to him by the accused. The books had not been kept in a way to 6how the ac--1 cused’s financial position. I The accused was then charged with ’ that between September, 1908, and [ April, 1909, he did contract certain ’ debts without having any reasonable or probable expectation of being able 1 to pay the same, as well as _ his other 1 debts. 1 The Deputy Official Assignee put in ’ proof of debts due to various creditors. ’ The deficiency in the estate, as far as ’ the claims disclosed .at present, was £1149 7s sd. William A. Friar, storekeeper at Gisborne, and a creditor in the estate, said that the accused bought some r cattle valued at £26 from him in April last .<and paid £l2 10s on account. Witness made applications for the bali ance, but he had not oeen paid. Alexander Mclntosh, farmer, at Makaraka, and a creditor in the estate, said accused bought cattle from his ' firm valued at £llO. A balance of £3O . was now due. He had applied for pay- - ment several times. Findlay Ferguson McKenzie, another creditor in the estate, said the accused bought cattle from him in January last and sheep in the previous month to the value of £lls. The accounts were to have been paid within a week after each transaction, but not one penny had been paid. The accused said he was trying to raise £BOO on mortgage. William Charles Judd, farmer at Matawhero, and a creditor in accused’s estate, said Norcross bought stock from him in, December last to the value of £53. The amount had not been paid. When witness asked for payment Norcross said he had £2OOO on his books which he was trying to collect and witness need not be afraid he would not get his money as he (Norcross) could pay 40s in tiie £ if he could collect his book debts. Charles Gibson, farmer at Te Arai, also a creditor in the estate, said he sold (accused 4 cows in November last for £ls 10. Witness had tried to collect the money, but had not been paid. The accused wanted witness to sell him further cattle and said he had paid the £ls 10s into the N.Z. Loan Comapny for witness. Further transactions, however. did not take placed The accused' said he was able to pay all his debts if the creditors would only wait. Evidence of a similar nature was given by other creditors. The accused reserved his defence and was- committed for trial at the nextsittings of the Sujpreme Court to be held in Gisborne. Bail -was allowed in. two sureties of £SO or one surety of £IOO.