A VANISHED EQUITY.

Auckland Star, Volume LIX, Issue 95, 23 April 1928, Page 5

A VANISHED EQUITY.

YOUNG FARMER'S FAILURE. RUINED BY FALL IN VALUES. A « TOO FLY." Earl Geoffrey Valentine Bruce Nelson Clark, aged 25, a farmer, of Waiau Pa, whose schedule in bankruptcy disclosed a deficiency of £71 19/3, faced his creditors this morning. He attributed his position to the fall in land values,which entirely altered tha value of his deceased father's estate. As a result of the lall in values, the trustees of the estate were forced to resort to a property demised to bankrupt to satisfy the estate debts. Without any warning, bankrupt had been deprived of an established equity of approximately £1574. The amount owing to unsecured creditors was set down at £671 19/3, and bankrupt claimed to have book debts estimated to produce £100, and property valued at £500. A property, subject to a life interest by bankrupt's mother, was bequeathed to Clark by his father. The property/ was also subject to a first mortgage securing £2000. and to a liability of the trustees to a maiden lady in respect of a mortgage over other lands for £2200. which had been given by deceased's father. After detailing the story of several mortgage transactions. Clark told in his statement how the farm had been sold. There was a deposit of £550. which he fully expected to receive. Until the sale was almost completed, Clark was not informed that the maiden lady was insisting on the amount due to her being paid out of the estate. He did not receive any portion of the deposit, which was applied by the trustees in reducing the liabilities of the estate. Bankrupt stated that he had arranged to go into partnership with a man in a land agency business, and had paid £100 into a joint account. "We did not actually commence business, but I have never received any of the £100." said Clark, who added that he thought he was entitled to recover from the man. He had backed the man's account at a fashionable Auckland hotel, and that accounted for the licensee's claim. Mr. Terry, who appeared for one of the creditors, said the man referred to came from Australia not long ago. He was "a bit too fly" for the young bankrupt. He was a company promoter. Employed as a farm labourer, Clark is now earning 35/ a week and his keep. The Official Assignee (Mr. Morris) said it was clear that bankrupt did not know tha- the equity in the farm was not his. The best thing to do would be to get in touch with the solicitors acting for the trustees of the late father's farm.