ECHO OF LAND SLUMP.

Press, Volume LXIII, Issue 18912, 29 January 1927, Page 3

ECHO OF LAND SLUMP.

I WELLINGTON FARMER'S j BANKRUPTCY. j FAILURE OF BIG DEALS. [THE PRESS Special Service.] \\ ELLINGTON, January 28. a meeting of creditors of Charles Burdon Buxton, a farmer, of Wellington, was called just before Christmas it lapsed for want of a quorum. To-day, a further meeting was called by the Official Assignee (Mr S. Tansley), but it again lapsed. _ The amount owing to unsecured creditors was shown at £437 os.6d. The unsecured creditors are: Newton King, stock agent, of Stratford, £397 8s lid; and T. Horton, Ltd., nurservnien, of Hastings, £39 lis 7d. The secured creditors were: Sylvanus Ilerrick, Lower Moutere, Nelson, £4000; Pharyzyn-'s Trustees, London, £15,350; T. Shailer Weston, Wellington, £2000; Public Trustee, Wellington, about £1500; Hargreaves Estate, Auckland, about £14,000; and Mrs E. E. Farley, Lower Moutere, Nelson,' £234. The total estimated value of securities is £37,084. The 1920-1 Slump. In his statement, the bankrupt said that he attributed his position to having had his capital, to the extent of approximately £30,000, invested in farm lands when tho 1920-1 slump occurred, and having transferred a country property many years ago to another man, subject to an outstanding first charge to the Public Trust Office. For a number of years prior to 1918 he had been buying country lands in the Taranaki and Auckland districts, farming and improving them, and then disposing of the properties. Many places that pass-' ed through his hands had proved to be splendid properties, and were now turning out considerable quantities of produce. In 1918 the properties and mortgages he held were valued for trustee purposes, at prices showing'him to have over £30,000 'worth of solid value. Liabilities Reduced. At that time he considered that with so many incidents tending to force land far above its real value a slump was bound to occur. He then endeavoured to realise for cash in whatever direction he could. In order to get out of contingent liabilities he offered, in cases where his name was on titles subject to mortgages, to re-finance the owners free of cost. Several owners of properties accepted the offer, and that had reduced the present liabilities considerably. Sued for Interest. In 1915 he purchased a property from the Public Trust in the Nelson district, and there was left on a first charge "of about £1350 to one, Charles Chaytor, whose estate was. in the hands of the Public Trustee. He spoilt aljout £2OOO in improvements, and sold it on to one, .Grant. Three years afterwards the amount became due and the Public Trustee, acting for Chaytor's estate, agreed with Grant that if lie would pay an extra half per cent, interest the mortgage could run on. - Some years later the Public' Trustee. found that Grant was ■, getting into T arrears, and then attempted to re-establish ' bankrupt's liability and sued, him'for interest. Reserved jridgjttpnt went- against him. ' , .. ~ji V V. . suving Off B'aitouptcy. ' The quickly, followed by : bankruptcy'■proceedings,''arid he had the choice of either signing a fresh Contract admitting liability, or being forced -into bankruptcy. Hejiad a large number of unsecured creditors who had given him substantial credit on account of his strong financial, position prior to the slump. He, had called a meeting of his creditors and so staved off bankruptcy, by signing the agreement with the. Public Trustee, and in the interim between then and now, had brought the position to that shown m his statement of assets and liabilities. Unsecured Creditors. There were now. only two unsecured creditors. One was. for a balance of a secured debt. The secured debt was£9ooo, the balance being under £4OO. The other unsecured creditor was for an account that had. been in dispute for several years. The North Auckland place that he had put in at £14,000 was sold at over £30,000. There were 7000 acres, and it would not fetch per, acre to-day. It was a place that was bought from him.by a syndicate which was into a limited liability company. The. company lost all _ its money during the .slump and went into liquidation, throwing the liability back upon him. "Badly Caught." He was badly caught by the slump. He declined- several offers for the TaranaM place during the boom years, but they were all easy term offers, and he felt that the risk of the property being landed back on bis hands was too great with, a slump looming ahead. Ihe two properties that had come back were only lightly mortgaged in proportion to the value as it stood at the time of the sale. In each case, as all farm assets were so hopelessly unsaleable the present market, it seemed impossible to suggest any offer that would ■assist the creditors.. ' — ' .!