A FARMER'S FINANCE.

Auckland Star, Volume LVIII, Issue 185, 8 August 1927, Page 5

A FARMER'S FINANCE.

BEHIND WITH HIS INTEREST. FAILURE OF THE CROPS. "UNSATISFACTORY BANKRUPTCY." "I have done my best to combat bad luck, but I have had to give in," said Eric Lewis Keyvrorth, a farmer, who met his creditors before Mr. G. N. Morris, Official Assignee, this morninar. "The failure of my crops, low market prices, j constant sickness and bad luck forced mt: to file," he said. Bankrupt's financial statement showed that he owed £543 to unsecured { creditors and £2222 to secured. The value of his securities was £2850, and there was a surplus of £632. His total debts were £542, his assets £805, leaving a nominal surplus of £262. "In December, 1922, I bought a farm at Pukekohe, paying £100 deposit and agreeing to erect the necessary buildings," said Keyworth in his statement. "I had £360 in hand, and I built a house, but getting short of capital, I raised a second mortgage of £500, and with this money I did more to the house. I managed to pay au the interest for a time, but finally I got behind in the payments. "My wife took sick and I had heavy medical expenses. Up till 1025, I was holding my own. In 1926 I was granted a loan of £300 over niv crops. After reducing the loan by produce, they were kind enough to make further advances to the extent of £275. This was principally used in my wife's sickness, as was a further £23 which I got from a loan company. The £500 mortgage fell due on July 19, but I could not meet it. The original owner said that he would pay it off if I would sign back to him. This I would not do, but signed a transfer of my liabilities of the £500 to the second mortgagee so that he has full control of the mortgages which I am responsible for." Bankrupt went through a long crossexamination by Mr. Morris and the creditors. '"This is not so satisfactory as I thought it was at the start," said the Official Assignee. "You must have deliberately misled me," said the biggest creditor who loaned Keyworth the money. "If Keyworth had been a man, he would have come to us and told us hia true position " Mr. Morris: Well, the thing's in your hands. You're the largest creditor. The creditor: It's a very unsatisfactory bankruptcy. There's a lot pf misrepresentation about it. He got monev from me without telling me that he ha'd a first mortgage of £1550, and he «*ot more after that. Mr. Morris (to the creditor): Those dealings with you would certainly sound nasty in a court. Aβ far as his conduct i 9 concerned, it is not at all satisfactory, and J am not so sure that we should not prosecute on the strength of the dealings with the biggest creditor. The creditor: If we find that he has misled anybody else, I think that drastic measures should be taken. Keyworth admitted that he has misled the biggest creditor. He said' that at the time he depended entirely upon his crops to wipe off everything. The creditor: But the second time you got more money in cold blood. Mr. Morris: You'd better understand this, Keyworth. If you are thinking of applying for discharge you will be opposed. Bankrupt: I am not thinking of a discharge before I have paid off some of my creditors. Xo resolution was passed.