(operations was $111.03480 in the 12 months. He puts down $10.972.06 as amount appropriated by the Bankrupt for general expenses, eto,, for 12 months, but how this was exponded does not appear as the Bankrupt again and again Enid that his expenses were about $200 a month.
He has not attempted to give any account of his expenses, but why should be when he can give no satisfactory explanation of $40.000 in cheques, drawn in his own favour P When he was examined in Court about several of these amounts he could give no explanation, and any which he did offer were admittedly unsatisfactory, The number of thousands of dollars drawn in February, March, and April which the bankrupt cannot explain may be accounted for to some extent by the gambling at poker which one of the opposing creditors testified to, and which he swore went on almost daily, Mr. Gubbay said that the bankrupt must bave lost between $8,000 and $9,000 at the game, that "six or seven of us used to play at my house every day off and or for nearly six months, and that Mr. Rustomjee joined them in December, 1888, or January, 1889, but that the game barst up about the middle of July." It was understood that each brought $1,000. Rustomjee always brought the money in bank notes, "Has seen the bank- rupt lose more than $1,000 at one sitting. That was in April, May or June." He says he won over $3,000, another man $11,000, another 10 to 12,000. If this is correct, and I see no reason to oubt it, it will account for the frequent drawings in February. March, and April of oheques of $1,000, $1,500 and $500 in favour of self," waich are not accounted for andį against which when examined the bankrupt said be could give no explanation. The bankrupt ou being questioned admitted remitting on 27th February by a T. T. to London £280 to the person looking after his children there. Such à trausaction should have appeared in some ac- count, but it does not. He says he has made another remittance since of £ 0, but that be got the loan from a friend without security. At his last examination he said he considered his monthly expenditure to be $500, and yet Mir. Silva puts it down at $10,972.11 as estimated ex- penditure for twelve months, which the bank- rupt said was correct! Up till then bis ex- penses he always stated to be about $200 per month, although Mr. Michael had put down his expenses from 1st Nov., 1888, to 31st July, 189, at 88,109.89. But how any of these amounts are arrived at does not appear. The bankrupt at his last examination referred the Court to what had been said by the late Chief Justice Sir John Smale on granting him a discharge in a previous bankruptcy in 1876, when he came to grief through opinm specula- tion. I think he must have forgotten what was said, or thought that no record was to be found, for a reference to those proceedings shows that Sir John Smule severely censured him for not having any books of account, and evidently simply gave bim the benefit of a doubt that his omission to keep proper books of account was not wilful but negligent, as also on the other charges made against him. This time the losses have arisen nhiefly from share speculations→→ chiefly short sales at long distances, and every class of shares has been dealt in to an enormous extent. The bankrupt is at one time called a broker, at another as stook-jobber, and at another time he says he was dealing for friends buying and selling but without any consideration for the work. Apparently he has done a lot of purchas ¡ing and selling for friends, but as Mr. Michael says nothing shewed that the operations were not on bis own account. He was very reluctant to give the names of his friends, and indeed s more unsatisfactory examination it is hardı ly possible to perase. A constant remark in answer to questious is, "I canuof tell with- out my books," when he well knew that the book disclosed almost nothing or next to noth g
The Official Assignes reported that
dur ug the examination the bankrupt declised to give any information as to bis share transac- tions withont reference to his books, refusing to accept Mr. Michael's report, &c., and most of the questions pat to him in behalf of creditors were either fenced with, remained unanswered, or no satisfactory explanation given or offered. The bankrupt stated that he wanted further elerical assistance, and the oreditors asseded if he made his accounts in two months, and the
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Official Assignee reported that since he had! got the assistance asked for he showed little disposition to attend at the registry_to_help in making up the account. The bankrupt admitted that he was insolvent in April or May of 1889, and the Official Assignee reports that looking to the magnitude of his share transac- tions carried on after his admitted insolvency. I consider that his bankruptor is attributable to rash and bazardous speculation in entering into contracts for the sale and purchase of shares, and thereby contracting debts and obligations which, except in the event of the market price always ruling in bis favour, he had no reason. able or probable ground of expectation of being able to carry out or pay." (Report of 8th Janu- ary. 1891.) It was brought to the knowledge of the Court at various adjournments that the bankrupt was not giving help to get his final accounts in, and as Mr. Silva said it required more time I had no hesitation in giving the bankrupt full time until he was able to say that he had enough and was satisfied with the no- counts There can be no complaint on that score, and after the filing of the accounts (4) months after the date previously allo red) with which the bankrupt expressed his satisfaction, the Official Assignes reports that the taking of the accounts has taken 18 months and east the creditors $1,100 From the further report of the Official Assignee it appears that, from May to September, 1880. the bankrupt entered into forward contracts amounting to $2,231,865.74, shares purchased, $2,163,918.50, shares sold. resulting in a loss of $67,947.24, when in April, 1889, he was mors than $32,000 to the bad in Ropes. Dooks, Sugars, Wharfs and Banks. On the 28th May last the Official Assignes reported the bank. rupt's liabilities at $98,580.16; assets 82,074.07. The protracted nature of these proceedings may account for the falling off of opposing creditors, but now Messrs. Toeg and Gubbay, joint creditors, who have proved for $22,362 50, and Mr. Gabbay, a creditor for $12,037.50, are left alone to oppose out of those who have proved to the amount of $86,266.43. They oppose the¦ bankrupt's disch rge:-ist, That the bankrupt could not at the time when some of his debts were contracted have had any reasonable or probablo ground or expectation of being able to pay the same. 2nd. That the bankrupt has with intent to conreal the true state of his affairs wilfully omitted to keep proper books of account 3rd, That his bankruptcy is attributable to rash and hazardous speculation and unjustifiable ex- tavagance in living. Mr. Master endeavoured to support these charges from the evidence taken during the bankruptcy proceedings. and Mr. Reece was heard in favour of the bank. rupt. Mr. Reece admitted that there were ground for some of the charges, but urgei that B suspension for a short time of the bankrupt's order of discharge would be ample punishment to meet the case, although it is admitted that the disabilities of an undis. charged bankrupt are very different here and in England. Pythe 142nd Section of the Bankruptcy Ordinance, it is enacted that if it appears to the Court that any of the acts which are therein enumerated have been committed by the bankrupt, the Court may refuse the order of discharge or suspend, &c., or may sentence the bankrupt to be imprisoned for a period not exceeding one year. If it wore necessary to decide the point I am of opinion that, having regard to the warn ing which the bankrapt had in 1876 in hi former bankraptoy, to the fact that he was at one time a bank clerk, aud koow how to keep books and the necessity of keeping them either himself. or by a clerk, in omitting to keep books now, and in the mauuer he did his business. be might fair.. ly be found to have wilfully and intentionally neglected to keep such books with the object of concealing the true state of his affairs. That he coutracted debts at a time when he could not reasonably have expected to pay them is prac tically admitted. but which I and as a fact. I also find that his bankruptcy is attributablo to rash and hazardous speculation. It is not easy to say about bis extravagance in living as he has not rendered any account. At one time his orpuses are about 8200 a month. Then a statement which he approved puts them down about $900, and then $500. In this colony debtors may be imprisoned for non-payment of debt, and having regard to loo circumstances the law is a necessary one, but · if they can show that they have no property, or have not made away with auy, then, unless the
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