Asked by the judge whether he had authority to pledge or sell his: clients' bonds, the debtor replied that he had no" authority. He ad mitted that he had become partly' Insolvent in 1932, but he said that he had hoped (o regain solvency through shares which he had in-hented from his mother.
'He hoped that these shares would recover, and that their exchange value' would improve. Furthermore, he expected profits from the business, which had yielded $46,000] a year before he bought it, The losses on bonds and shares were partly responsible for his bank: rupted, and also "the loss on interest caused by pledging other people's bonds to obtain capital to. carry on the. business."
The debtor said that he was unaware of the full state of the accounts, because the exchange situa. Yien was so involved, and he be Veved that the business was earning!
"The official receiver's report showed, a deficiency of $205,000, including loss by exchange "due to the in ability of the debtor to understand his own exchange position," of $16
Text read from the printed page and cleaned; old type leaves the occasional error.