BROUGHT IN NO RETURN.

Auckland Star, Volume LVI, Issue 185, 7 August 1925, Page 5

BROUGHT IN NO RETURN.

UNPROFITABLE PROPERTIES. CAREER IN LANS DEALING. ENDS IN BANKRUPTCY. A career in land dealing covering a period of over 10 years, which terminated in an Auckland farmer being compelled to go bankrupt, was the account given of his position by Oenaro Nigro (Mr. Leary) to-day at a meeting of creditors in his estate at the office of the official assignee (Mr. \Y. S. Fisher). Bankrupt's schedule showed that he owed secured creditors £20.128 and held securities valued at £31.000, leaving a nominal surplus of £11,471. The assets totalled £13.14:*, including the surplus from securities. and liabilities to unsecured creditors. £215. leaving a nominal surplus in the estate of £12,928. Giving the causes of his bankruptcy, ! Nigro said that in 1022 he was in a good position, with good assets: but since that time oowing to the slump in property values, he had bought at prices that I could not be got when he wanted to sell. He paid interest on several thousands of pounds on property from which he got no return; and he made a mistake in having anything to do with a Te Kuiti property valued at £22.000, over which i the terms of the mortgage made the i place unsaleable. The mortgagees would : not give him any chance, and a writ was issued for the full amount of the principal immediately upon default in the payment of the first quarter* interest. Under examination bankrupt said he was an Italian and bad been in New Zealand 24 years. He was a musician when he "left school and had never had any business training. He bad about £2000 when he came to the Dominion. He began dealing in land ten years ago. after be sold out a picture theatre in Karangahape Road. He then had £1500 in shares in the theatre, which he gradually sold afterwards. It had been a rigid rule of his to pay all moneys into the bank. v Mr. Fisher: Have yon kept any books? —No. With the aid of your passbooks could you make up a statement of your transactions? —No. T could not. Asked if he bad made any effort to ascertain his position bankrupt said he had relied on particulars kept by his solicitors, who supplied him with statements. I Ten Deals a Year. j Mr. Fisher: How many transactions j have you gone in for in the last ten years» —l should say offhand that my deals in properties would average about | ten a year. i Have you always been able to finance things all rightV—Yes, until 1" bought two shops in Victoria Street. How long ago was that?— About 12; months. [ When did you first feel a difficulty?— In the slump in 1921. Further questioned whether he had been hard pressed for money for the past three years, bankrupt denied this. Have you always entered into these deals on your own account, and not in partnership?— Always on my own. Bankrupt said he had made attempt", to sell his sections at Hangatiki, bi;t was unable to do so. Yet you put them down at £90?— Yes. 1 Did you have a property at Rotorua? ! —Yes-, a house and 28 acres. When did you get that?— About five years ago. What did you give for it?—lt was an j exchange and cost mc about £4000. I When did you sell it?— About 12 i months ago—to my brother. He took I over the mortgage and paid mc £500. That was made up of dribs and drabs which 1 borrowed from him at various times and gave him I O Us. Mention being made by one 'creditor that an action, Nigro v. Hewett. had been started for the recovery of expenses of £200 incurred by bankrupt tlirough a deal which, it was alleged, went off through Hewett's default, the Official Assignee was authorised to investigate the chances of recovering anything. The Official Assignee suggested that the transactions during the last two years should be investigated, and the meeting was adjourned until Friday. August 21.