FARMER'S FAILURE.

Press, Volume LX, Issue 18186, 24 September 1924, Page 6

FARMER'S FAILURE.

A BIG DEFICIENCY. A ' meeting of creditors in the bankrupt estate of Robert McElhinney, farmer, o: Fairfield, v-as held a I Asliburton in the office of thb Deputy Official Assignees iMr J. B. Chris-dan) yesterday afternoon. Mr 0. T. J. Alpcre represented tho 2>cw Zealand Loan and Mercantile- "Agency Co. Ltd. Trie financial statement showed a, deficiency of £5161 9a Id. The debts to unsecured creditors amounted <e> £7331 lis Id, and to jcc.irc-i creditors £13,900, making a total of ££3,SSI 11a Id. Against this -were assets to-the value, of £15,695 IC-. There wa 3 also furniture- valued at £SO, leaving a. total deficiency of £5106 is Id.

Tho unsecured creditors were:—Aehburton County Council, Ashburton, £sl 14a lid; M. Bruce, Ash-barton, £126 IGa Td; C. E. Bailee, Aehburton, £ll 12s; A. Baskell, Ashburton, £lls os; Commissioner of Taxes, "Wellington, £lO5 7,5 Sd; 11. Calderwood, Ash-burton. £iS 19s; Canterbury Frozen Meat Co., Cnrhtdiurch, £77 2s 7d: W. H. Collins and Co., Ashburton, £5 Ms sd; E. G. Church, Ashburton, £232 18s 10d; Dunlop Rubber Co., Christcliurch, £5 • 18s '?i.: ,). J. Dougall and Son, Christchurch, "£230; Dcugali and Upham, Christchurch, £157 10a 3d; P. and D. Duncan, Ltd., Ashburton, £CO 10s Sd; R. Fricbv, Ashburton, £SO 8s; W. McKay, Tinwald, £52 3s 6d; D. J. Mclntyrc, Ashburton, £SO; Jarnea McElhinney, Wostcrficld, £1215; James McElhirmcv jun., Westerfield, £27 10s; Munn's Detective Agency, Christchurch, £l2O .os; X.Z. Loan and Mercantile Agency Co., Ltd., Christchurch, £-1322 18s 2d; James Nelson, Elgin, £75; Oakhurst, Hospital, Ashburton, £lO 10s; Para. Rubber Co., Ltd., Christchurch, £3 12s; W. Patching-, Ashburton, £2-1 -Is 6d; Pago Motors, Ltd., Ashburton, £3l 7s Sd; A. Rose, Christchurch, £133 10s; H. Reed, Methven, £5; J. E. Rule, Ltd., Ashburton, £3 7 3 7d; Richardson and Cairns Ashburton. £l2 73 6d; Smallbone Bros., Ashburton, £67 10s 9d; James Sim, Ashburton, £357 10s; Thomas Broi., Ashburton, £l9;' Upper Ashburton Road Board, Ashburton, £lO 10s 2d; Wilding and Acland, Christchurch, £SB.

In hie sworn statement bankrupt said ho f.t-irted farming in 1902, and later included stock-dealing- in his operations. His affairs progressed very favourably until 1920, when trouble started over a largo line of sheep •which ho bad eold some time before at 32s through Pyne, Gonld, Guinness, Ltd., ard bo eventually proceeded against them in the Supremo. Court, tho action being heard iu December, 1923, when he was nonsuited with costs. Ho bad held these cheep, a line of 3100 all that time, and they were sold in '••lay, 102-1, showing a very -heavy loss besides tho cost of keeping them all that, time. The K.Z. Loan and Mercantile. Agency Co., Ltd., obtained judgment on disputed accounts regarding transactions with them, chiefly at Oama.ru, and that, amouut with costs, amounted to £4322 ISs 2d, st'nd he was adjudicated bankrupt on September 2nd. The slump in values also put him back considerably, but he considered ho would have pulled through quite well had the deal in cheep at 32s through Pyno, Gould, Guinness, Ltd., been carried through successfully, as he could havo replaced them for 16s about two months later, having judged the market well. Ho blamed • himseif for not having cold the sheep, immediately he found there «-3. 3 trouble over tho sale, and then i>roceeded against Pyne Gould, Guinness, Ltd., for the loss on them instead of trying to- fix the matter with them by other means. Bankrupt regretted tho hopeless position ho placed beforo his creditors.

Mr AJpers said that- ho intended to ba.vo bankrupt publicly examined in tho Supremo Court at Christchurch, whereupon Mr A. Bushel], accountant to Mr J. W. Bowdcn, who wa3 watching bankrupt's interest, said ho intended assisting bankrupt as much as possible.

Mr another creditor, Iync,Gou!d, Guinness, Ltd., who had not yet proved, but ho r considered they would prove, for £1373 later. At present the assets available for unsecured crcditora wcro about £3OOO (o meet liabilities of a-bout £BOOO, and it. was doubtful if Pyne, Gould, Guinncs?, Ltd., could hold a certain sum already paid-to them, therefore-ho thought .that tho firm might -havo to pay' the amount into the. estate, with a r-3ult that tho assets wuld bo increased to about '£7ooo, and the liabilities', to about £12,000. , That would mean a probable dividend "of-about 12s>.in tho £. Tho Ddputy Official Assignee said the cotato -would take' the matter u<> and enquiries would be m*de. It was for the creditors to decide-what wafi.-to bo. done with the equity .in the land. . ■' Mr Alpers eaid it, would bo a pity for thefarm to bo sacrificed, and ho "felt, cert-am that if it was properly managed i"E would pay 20s in the £.

Thero were no definite instructions given in tho matter.

-It was that debtor be allowed to retain his furuifcnr/e and the uso of his car. Tho Debuty Official Assignee . eaid ho hoped to,bo-able to give the mectiu-r much mca'e information at a. later da.fe.