BANKRUPT FARMER.

Auckland Star, Volume LXIV, Issue 16, 20 January 1933, Page 9

BANKRUPT FARMER.

HIT BY DEPRESSION. DEFICIENCY OF £2773. COMMITTEE TO INVESTIGATE.

The falling off in the volume of business due to the existing depression, the expense incurred in Court proceedings, loss of trade through competition, and losses through had debts were stated by Philip Arthur Phillips to b* contributing causes of his bankruptcy. Phillips, a single man, a farmer at Albany, met his creditors this morning at the office of the acting-Official Assignee, Mr. G. W. Brown. The bankrupt's schedule disclosed a deficiency of £2773, the total amount owing to secured and unsecured creditors being set out at £5778 and the asset# at £3003. In his statement the bankrupt said that in 1025 he obtained from the Government a leasehold farm of 75 acres at Albany, giving a mortgage to the Government to secure £2000. He had very little money at the time, but was able to borrow money to carry on and meet hie obligations. To add to hi<3 income to took on contract work and. ploughing jobs. The late Dean Vail Dyke had generously assisted him by loans of money. Bankrupt stated that he was instrumental in starting the town milk supply in the Albany district, and at one time he handled all the milk produced in the Albany and surrounding districts. Becoming involved in Court proceedings instituted by the Health Department over the sale of milk, in which it was alleged that some of his suppliers had added water, bankrupt s connection in the district Was damage!, and gave others the opportunity to start in opposition. In one bad debt he had suffered a loss of £500, and other bad debts of between £200 and £250 caused his position to be seriously affected.

Business Falls Off. Since the depress ion and during the past 18 months business had gradually fallen off. About 12 months ago, after the death of Dean Van Dyke, bankrupt applied to the Crown Lands Department for a reduction in overhead expenses, but nothing was done to reduce the capital. He had hoped to eell a cartage business he was conducting, but when a milk vendors' association was formed tho sale fell through. Bankrupt had not Wasted money nor lived extravagantly, nor did he attend race meetings. During his spare time he had looked after his mother's interests in the Pupuke Daify, Ltd., but he himself had no interest in the business. Bankrupt, was questioned by creditors concerning his association with Pupuke Dairy, Ltd. He denied that he had any interest whatever in it, but admitted that it was purchased by his mother. During the time he had the farm at I Albany he had drawn about £5 a Week from it. After a committee of three had been appointed to assist the acting-Official Assignee to investigate the books, etc., of the bankrupt, the meeting adjourned sine die.