FARMER'S FAILURE

Ashburton Guardian, Volume XLV, Issue 10279, 10 December 1924, Page 5

FARMER'S FAILURE

BOUGHT AT BOOM PRICES. CASE OF W~H. DENLEY. The meeting of creditors in the bankrupt estate of William Henry Denley, previously farming at Springburn, and now employed as a butcher in Ashburton,, was called for this afternoon, but only two creditors were present, and the meeting lapsed for want of a quorum. A deficiency of £1147 lis 2d was revealed in the financial statement. The total debts amounted to £1207 lis 2d, and the assets to £6O. The amount owed to unsecured creditors was £llß2 lis 2d, and to secured creditors £25. The Repatriation Department, Wellington, held security valued at £6O over a debt of £25. The unsecured creditors were: Pyne, Gould, Guinness (Ashburton), £1152 lis 2d:-P. and D. Duncan (Ashburton), £9; E. Sutton (Wakanui), £2; Watson, contractor (Tinwald), £2; MoUnt Somers Lime Company, £l7;—total, £llß2 lis 2d. In his statement bankrupt said that he started farming on his own account in September, 1920, after his return from the war, when he purchased the lease of 400 acres at Springburn. The price for the goodwill was £2500. He had £BOO of his own, and Pyne, Gould, Guinness, Ltd., found £2OO to make up the £IOOO required for the cash deposit. Pyne, Gould, Guinness, Ltd., agreed to find the remaining £low, a friend of bankrupt's guaranteeing his account with that firm up to £I2OO. He carried on dairy farming, and paid all his cream cheques to Pyne, Gould, Guinness, Ltd., who did all his business. He held his own, and nrospects appeared to be satisfactory until the £ISOO balance of deposit became due, which was about September, 1921, twelve months after he took possession of the property. He then found himself in a very difficult position. The guarantor had become an inmate of a mental hospital, and his affairs were being , administered by the Public Trustee. Money tightened up considerably, and bankrupt found it impossible to raise the sums required, and eventually compelled to sell out. The clearing sale of stock and implements was disappointing, and when he walked off the farm he was £llß2 in debt and had no assets whatever. Since then he had been working for wages. He was married, and had two young children. Seeing that he had no prospect of being able to raise a sum sufficient to satisfy his creditors he decided to file. He attributed his failure to the fact that he went into the property at the top of the boom, and consequently paid boom prices for everything ; and to the slump which followed I and affected the prices of all classes of stock and farm produce. It was decided informally to canvass the views of the other creditors with regard to the bankrupt retaining his furniture.