FARMER'S FAILURE

Ashburton Guardian, Volume XLVI, Issue 10670, 15 February 1926, Page 5

FARMER'S FAILURE

LYNDHURST BANKRUPTCY.

ATTRIBUTED TO 192 Q SLUMP.

UNABLE TO MEET MORTGAGE.

A meeting of creditors in the bankrupt estate of Frederick Reesby, a farmer, of Lyndhurst, was held to-day presided over by the Deputy Official Assignee (Mr J. B. Christian). Mr J. W. M. Dart appeared for bankrupt and Mr C. F. Woodhead for two creditors. Bankrupt's brother, one of the creditwas present. Bankrupt's statement was as follows:—< "I purchased the Lyndhurst farm in 1906, the price being £l4 5s Od per the area 445 acres. I had £2500 cash which I paid down on account of purchase money. I also leased •an additional 600 acres. in the same locality. My wife also had a freehold farm of 336 acres, on which there was .a mortgage of £4500. I gave up the 600 acres leasehold about four years •later, feeling that I had sufficient land to look after without it. In 1917 I imilt a new dwelling on the Lyndhurst iarm at a cost of £I2OO. I had to increase the mortgage on the land to .meet the cost of the building. I felt 1 was justified in doing this as I was holding my own and land values were steadily rising. "I was quite satisfied with my position until 1920 when the slump upset •all my calculations. I bought 1000 wethers at 33s and sold them at 12s per head .after feeding them .for six 'months. I also bought 950 lambs .at 24s 6d and sold them about four months -later for 15s 6d per head. Owing to the destruction of my stable and imple*ment shed I had to rebuild at a cost of £IOOO, and not having the cash I had .to make this a further charge .upon the'property. I usually had from .200 •to 300 acres in wheat and oats but did not make anything out of grain .growing taking one year with another.

Financial Aid Not Obtainable. "Since i 920 I have had great difficulty in carrying on, finding it impossible to get the financial assistance A required. About 12 months ago both •our farms were sold, my wife's failing to realise sufficient to satisfy the mortgagees and my own realising about £2OOO over the mortgage. This surplus went to-the "firm who did my business and to whom I was heavily indebted. My stock and plant were also sold but did not/realise sufficient .to pay all my debts. I walked out without anything. ' ' .■, , "For the past year I have been .wording for wages .as a farm labourer 1 .have no assets whatsoever other than those set out in my statement. 1 did not keep books beyond a wages .book. All my business went through one .firm and the pass book kept by them .contains a record of all my transactions. I attribute my failure to the fall in land and stock values during the slump of IQ2O I have no expectations. PresW brought .to bear by pry creditor* | forced me to file." j

Deficiency of £331 Shown. The statement showed debts (unsecured) totalling £461 10s 9d as iollow:-Asbburton Mai Land Guardian Company, £6 17 ? 6d; Beathi and Co., Ltd M Christchurch, drapers, £l2 is bd, V P. Boot, dentist, £2 17s 6d; W. Cook, blacksmith, £27 -bs Sd.; Graham, Wilson, and feme**, ■Christchurch, drapers, £2618s 7d, Heffotd and Go.,. drapers £lol6s Harper, Pascoe, Buchanan, and Upharo, Christchurch, solicitors, £8 19s 9d- W. H. McKee, Methven, medial petitioner, £l4 14.; Mental Ho»oital Wellington, £6; F. G. Reesby, farmer, £249 15V, George tors, motor engineer, £< os WSraallbone Bros., motor engineers, £7

The assets were set down at £llO, leaving a deficiency of £3ol 10s 9d. Mr Dart said that bankrupt was HoKkely to be able to make S* wages to pay his debts Most of the debts were owing to his biotner « and nephew. Bankrupt's eon had alto ~ worked &r him, and ihaii received no wages. He was not claiming tor any-

To Mr Woodhead bankrupt said the car was badly knocked about and had not fceen looked after. It.was not true n that he frequently came home drunk ** from Methven. He could not say now much he had spent in hquir in the last three years, but he did not dnnk very heavily. , Mr Woodhead: Can you remember issuing a cheque on January 10 last Yes, for about £7 About that time how much had you toTour credit :■?—About £6®. When then, did this tremendous overdraft with your agents get run up? was after the sale I had the £6O. But you say you walked out with nothing ?—Afterwards I found I had n °What' was that cheque for ?-For 40ods bought. „ ~ Not for any money lent f—sso. Debts and Cheques. Who was pressing you ?—Harder, Pascoe, and Buchafean. Yes' for £B. You would go bankrupt for '£B?—Others were pressing me. i Who else ?—Mr Boot. * Yes for £2. You had a motorcar, oven though it was an old one and vou couldn't pay these debts. Now, is it not a fact that you said you were not going to pay when you got the summons? Your relations are no* pressing you, and vou owe them iodU. That only leaves £l3O to the others.— I * I had no possible chance of paying. \ But vour assets are £llO and your 'debts were only £l3O, as your relations were not pressing you You were sued tor £7, and so you filed. When d d vou come to the conclusion you could not pay your debts ?_When I was sold UP Wben was that?—A year ago. And do vou remember since then writing me* a letter saying you Q WOuId pav my client. Mr Cook, soon i Mr Dart asked where the letter wa&, and objected that without the letter Mr Woodhead could not proceed.

His Daughter's Piano. Mr Woodhead then asked bankrupt about his piano,-which bankrupt said was a Lippe,. 17 years old. His house was a good one, six or seven years olci, without land, and he was paying dUg 8. week for it. The house was furnished, To the- Deputy-Official Assignee bank-

rupt said he could not get another house in the district. Mr Dart explained that the piano had been given to bankrupt's daughter five years ago. Mr Woodhead moved that the Assignee wind up the assets as shown in the statement, hut withdrew this on Mr Dart's assurance that bankrupt's brother was prepared to drop his claim. Bankrupt was allowed to keep hjs furniture