TWO BANKRUPTCIES

Ashburton Guardian, Volume 50, Issue 152, 9 April 1930, Page 6

TWO BANKRUPTCIES

MAYFIELD FARMER FAILS. DUE MAINLY TO THE SLUMP. MATTER OF MORTGAGES. A meeting of creditors in the bankrupt estate of William Miller, of Mayfield, farmer, was called for this morning before the Official Assignee (Air A. J. Ching), but lapsed, none of the creditors attending. The statement of bankrupt’s affairs showed that the unsecured creditors’ list totalled £32.16s sd, secured creditors .£13,625 19s sd, the • estimated value of securities was £B9IO, and there was a. surplus to contra of £4715 19s sd. The total of debts was £13,658 15s lOd. Stock and plant were valued at £2500, and property was .valued at £B9IO. There was a deficiency of £2248 15s lOd. The unsecured creditors were:— Ashburton—Ashburton Motors, Ltd., £l2 10s Bd, W. S. Kingsbury £2 ss, V. P. Boot £3 2s 6d, H. E. Bonnington 19s, National Mortgage and Agency Company 19s, F. W. Watt £3 3s. Mayfield—W. K. Dellow £3 5s 9d, E. Biddiek £5 7s 6d, J. A. LiTley £1 4s. Tin? secured creditors were; Mrs Bessie Conway, Christchurch, £3500 (estimated value of security £4660); Miss Mclver, Christchurch, £500; State Advances, £3OOO (£4250); R. J. Low, Highbank, £1104; New Zealand Farmers’ Co-operative Association, Ltd., £5521 19s sd. In his sworn statement bankrupt said .that ip. 1909 ho purchased the homestead of 208 acres at Mayfield from his .father, the late Samuel Miller, tor £3OOO. He farmed this land successfully, and in November, 1919, he purchased 391 acres for £l6 «er acre from Mr D. O. Sewell, who was leasing the property with a right to purchase from Air R. J. Low, Highbank. He lmd to mortgage his farm for £IOOO, which' he paid to Mr D. O. Sewell as a deposit. Soon after this everything slumped, and his sheep and stock fell considerably in value. He was running an account with the New Zealand Farmers’ Co-operative Association, and owing to'the conditions which prevailed at that time he was kept considerably understocked; and thus, while endeavouring to pay interest on the home farm at £l9 and the second farm at £l6 per acre, combined with the high rate of overdraft interest, he was unable to meet his obligations, and consequently his overdraft increased. To ease the position Air Sewell wrote off £I2OO, and finally wrote off this remaining equity. Thus the farm was left in its. present position, with £3OOO on first mortgage: and £llO4 second mortgage to Mr Low. By this time, owing to the high rate of interest charged, all commissions, apd the ex-, penses of running two farms, the overdraft had mounted up so high that the position was untenable. To relieve the situation the Farmers’ Co-operative Association and Air Low remitted the interest on £llOO each (£2200) for. about three years. This interest again was charged in November, 1929, which meant cutting away most of his'yearly progress. Added to this, the ’ second mortgagee for £SOO on the home farm notified: him that she required payment of her on. Alareh 10, IS3O. On that date he offered hef the in-" terest, which she declined, stating that she wanted the principal also. His wife offered to pay her the principal of £SOO in six months’ time, as Airs Aliller’s money was on . fixed deposit. The mortgagee thereupon instructed her solicitor to take whatever action was,necessary to recover.the same. As the’Farmers’ Co-operative; Association declined to write off any of the overdraft, the position became so hopeless that the only thing to do in fairness to all parties concerned was to file his petition in bankruptcy. His two sons of 17 and 19 had worked on the farm without wages in a determined endeavour to pull through. For years it had been a case of hard work and no pay. He had dope his best to improve his position, hut the struggle had been too great, and had only resulted in failure and the breakdown of his health.

HIGH RENT AND LOW PRICES. DORIE FARAIER’S LOSSES. A meeting of creditors in the bankrupt estate of John Thomas Johnston, a farmer of Doric, was called for this afternoon to he held in the Ashburton Courthouse, but lapsed for want of a quorum. The statement of bankrupt’s affairs showed that the unsecured creditors’ list totalled £359 18s 3d, and the secured creditor’s £215 14s lOd, the total debts being £575 13s Id. There were no assets.

The only secured creditor was the National Mortgage and Agency Company, Christchurch, £215 14s lOd. The unsecured creditors were:— Ashburton—Ford Alotors, Ltd., £9 10s, Collins and Co., £9 6s 6d. Rakaia—A. Stewart £ll7, Hardy and Co. £36 14s 2d, A. F. Kennett £46 12s 3d, Cromic Bros. £4 8s 3d, estate H. J. Harrison £l7 5s 6d, W. Cromie £29 5s lid, Pluck £52 6s 2d, D. Newman £2 15s.

Christchurch—Strange and Co. £2B 17s, Christchurch Times Company £5 17s 6d.

In his sworn statement, bankrupt said he had been farming for 16 years. He had over £2OO when he started. He took up an Educational lease at Dorie, and had worked this until the National Mortgage and Agency Company, who had security over all his stock, sold the same to meet their account. He attributed his bankruptcy to the fact that he had to pay a higher rental than the property was worth, and owing to bad seasons he received poor returns for his crops. When he took up the leasehold he paid l £2OO goodwill. About four years after he took over the place, the rent was increased from 8s 6d to 12s 6d per acre. The property consisted of 224 acres. He carried on the farm satisfactorily until after the war, but lost money in' the slump of 1921, from which he had not been able to recover. He was a married man with five children. He had no assets.

The matter of winding-up the estate was left in the hands of the Official Assignee.