FARMER'S FAILURE

Auckland Star, Volume LIII, Issue 120, 23 May 1922, Page 3

FARMER'S FAILURE

FREQUENT LAND DEALS. UNSATISFACTORY PooaTION. The first meeting of creditors in Uie bankrupt estate of Robert H. Davensy, farmer, formerly of Whangamata, was held yesterday afternoon, the Official Assignee, Mr.'W. S. Fisher, presiding. The writtten statement of the bankrupt setting forth the state of his affairs as published in the •'Star" "n May IS, was read. With referent to the bank'- :- rupt': attributing the cause of .it? failure largely to the collapse >f the legal linn of Hammond and Crackueil, Mr. fjsl.er said that the statement ivi* not bor:-e out by an investigation ..-f tlia book* ot Uaramond and Cracknell. Instead of tile estate of the firm owing money t<» the bankrupt, the books .showed that the bankrupt owed over £3000 to the firm. The bankrupt, who was examined on oath, stated that he was •npiired in: farming until 1916, when ha acquired a wood and coal business it W-anganui. At that time he had no liabilities, and posfvisscQ between £400 and i-'iiOO in cash. H-: sold the business about eight or nine months later and bought a farm at New I'ymouth of 129 acres. Ho also started an f.itctioneering business ai Wanganui, am! six months later sold it for £00 and s< mc allotments at Wanganui He then went to Australia and remained there about, two months. I'ankrupt said that Hammond and Cracknell owed him about £3000. In reply to the Official Assignee he said that it was an absolute surprise to him to learn that the accountant investigating the affairs in the estate of Hammond ar.d Cracknell considered he owed the estate of the firm over £3000. Mr. Hammond, he said, frequently ciiscussed the matter with him, ami Knew the money was owing. A creditor stated that he had been informed by Mr. Hammond that bankrupt owed Hammond and Cratfknell about £30J0 The bankrupt, continuing, said that on his return from Austra.'.a he went to VV hangamata, where his wife acquired a Dlock of land of 952 acres, and sold out after about 15 months. t'rw to selling out, .Mrs. Daveney had built a house on Hie property and effected other improvements. Bankrupt then tooic over the Whangamata Hotel, paying £300 for it, but nine months later sold out for £900. He then bought a farm in the locality and exchanged it for a property at Whangarei. About a year ago he came to Auckland, and thought then he would ;be 'able to' pull through. He had two or three conversations with •Mγ. Hammond regarding his position, and the latter always promised he would meet any claim 'on the bankrupt's behalf. He tried to acquire a farm at Kaukapa- ' kapa in exchange for a property in Onehivnga owned by his wife. He worked) on it for about five months, but the deal fell through. The Official Assignee intimated that he would like some information regarding the dealings with the Whangamata farm. Bankrupt said the property was "bought by his wife with her own money. When she sold out she had received a. mortgage for £1000, and with it hail bought a property in Ponsonby, whic'k had also been disposed of, and one proparty at Onehunga. That property was in the name of a certain man. A "dummy" mortgage had been given to the man mentioned for the purpose of; finance. It was easier to sell a mortgage than a property. Replying to Mr. Hogg, bankrupt leui d having* given a mortgage to a man named over a property at Taran&ki. Mr. Hogg produced a deed bearing the bankrupt's signature. The biikrupti said the signature was his, but lie knew 1 nothing of the mortgage. Ho also denied any knowledge of a mortgage' given by him over town sections im. Wanganui. Mr. Hammond, he said. had transacted all his business ;n>d' bankrupt knew nothing of tV ;aattei. He thought that the Wanjjanu'i pro-.*. perty had been sold* long ago. Bankrupt said that Tbc. Hammond had takenover his account at the Union Bank, and bankrupt had signed blank cheques handing t'ftem over to Mr. Hammond, who operated on the account. In reply to a creditor, Mr. Fisher said that on behalf of the creditors in the estate of Hammond and Cracknell he would have to prove on bankrupt"* estate for the amount shown to be owing by bankrupt to Hammond and Cracknell. A creditor remarked tiiat he doubted whether the Onehunga property was worth anything beyond the amount for -which is was mortgaged. The Official Assignee said th.it ths position looked hopeless. Bankrupt had been dealing in property very in-n-h. to excess. Had he investigated his affairs properly at any time during several years, he would probab'.v " hn-.e learned that he was not in nearly as good a position as he fancied. Instead of speculating it would have been better had lie stuck to honest farming. The meeting was adjourned sine die.