FARMER'S FAILURE.

Dominion, Volume 7, Issue 2112, 1 April 1914, Page 5

FARMER'S FAILURE.

CREDITORS MEET,

The first meeting of tlie creditors in tile estate of Thomas Hastic, farmer, of Johnsonville, was held yesterday morning. Mr. A. Simpson (Official Assignee) presided, arid Mr. T. Neave appeared for. the. bankrupt. The following creditors were: present: Mr. W. Cook (of W. Cook and Sons), Mr..H. Parker, and Mr. E. Johnston (of E. Johnston and Co.). The Official Assignee-remarked on the small attendance of creditors,' and suggested that the meeting should adjourn. Mr. Neave pointed out that the case was one of pure misfortune. The bankrupt had eudeavoured to dispose of Ins nropertieSj but .the v market was unfavourable..: "■' ~■; . ' The Assignee remarked that, if the creditors did nothing, he would put tho papers in the hands of tho Crown Solicitor to see what 'could be done. !. ; ; . Bankrupt's Statement..-• ■In--his written statement bankrupt gave the following particulars of his position:—"Prior to December, 1912, 1 owned 1998 acres of Government lease (o.r.p. , looo;acres and 1.i.p.998 acres), Tiiuakawa,.' and carried on business as a farmer. Tho country was rough sheep coiiutry and. I had mortgages totalling £5900. I was on this land for 13 years"'and spent all my money in improving the property by telling fencing, etc." The statement went on to indicate that in December, 1912, bankrupt sold tho, property at Tauakawa.iii exchange for other-properties. Theseyproperties were subject to mortgages totalling about £8000, Bankrupt gave up possession of tho farm as arranged under agreement, but was unable to get possession of the properties,, and was compelled to issue a writ for, specifib performance. 'After great delay, during which the bankrupt was kept out of receipt of all rents due from tenants, the matter was finally com- , pleted and, then bankrupt was very much out of pocket. The difficulty of getting- the transaction completed kept him from dealing further with properties and from acquiring any benefit out of them. Meanwhile a petitioning creditor obtained judgment against liim on the guarantee that he had joined in al)out .ten. years: ago to start a dairy factory. : Bankrupt was unable to pay the judgment and the creditor originated the present bankruptcy • proceedings. Creditors, Indebtedness, and Assets. The unsecured creditors were:—Carl August, Lehmanu, farmer,., Stratfoi/d, £78 16s. ;~H. P. Groves, agent, Hawera, £200; National Bank, Stratford, '£100; Malove, Anderson, and ..Johnston, solicitors, Stratford, £45 2s. 9d.; Bell, Gully, Bell, and Myers, solicitors, Wellington, £43 4s. Bd.; W. Cook and Sons,' storekeepers, "Johnson'ville, £20; H. Parker, butcher, Johnsonville, £10; ft. Hannah and Co., bootmakers, Stratford, £3 145.; , Stratford "Evening Post," £3 16s. 6d.; H. Helm, farmer, Eketahuna, £22 155.; W, D. Hastie, farmer, Whakaronga, £194; Wellington Hospital, £2 12s: 6d.; Wm. Young, medical practitioner, Wellington, £1 Is.; J. H. Doherty, tailor, Wellington, £3 10s.; E.Jqhnston and Co., auctioneers, Wellington, £4 14s. 6a.; total, £733 7s/ 6d. • ■; :'• . . , The secured creditors were as follow: —James '. Drysdale, sawmiller, £2300; Duncan Menteath, care of .Menteath and Ward; solicitors )U Welling'to.n,.'.£looo; Joseph Firth, schoolmaster,- Wellington, £520;. -Buller ' Trustees, Wellington, £450; H/ F..'Brandon, banker, "Wellington, £425; .Wellington Trust Loan, and Investment' Co., Wellington, £325; ;Metropoiitaii. Building 'Society J.-'Wcllirig-James-vJudd; Lower' Hutt, £625; Geo. England, Karori, £400; J. O'Donnoll, Taita, £1000; Cook and Miles,, solicitors, Feilding,' £550; total, £8395./ T,. , ■ . • .... '■.. ~ , The .indebtedness, was as follows:— Unsecured creditors, £733 7s. Gd.; secured creditors, £8395; total,. £9128 7s. 6d. . According to the bankrupt's statement the total assets (property as per Government' valuation) were £11,090 which, after;'accounting for tho\ total •estimated indebtedness, left an estimated "surplus of £1961 12s. 6d. Examination. Bankrupt was then examined by his .solicitor,- Mr.:Neave. He stated that he took up ,1400 acres of land in 1900. It was'rcaigli country,- and" was situated' 32 mires from Stratford. He was ■backed' , ''by. bis father, 'and-he gave his 'father ■; a ■ mortgage ,in demand.-, He had 'worked, on the. land for .12 years, doing the fencing himself.. '■Hβ let bushfelling by contract, 1000: acres :being cleared. Previous to this/ his wife had taken up 598 acres adjoining,, on lease in perpetuity. Security was given over that, together with bankrupt's own property to his father to secure the guarantee given by his father to the bank. Tlie mortgage , was payable on demand. Bankrupt's father died unexpectedly in 1905, leaving a considerable estate, out of which bankrupt was •to receive one-senenth share. Tlie Public Trustee was appointed administrator ,of the estate, and he called up tho mortgage. Ho sold bankrupt's father's estate'on terms, and bankrupt could not get anything from the estate until the terms were up. Bankrupt,was not able to! find the money to pay the mortgage and the Public Trustee sued him. When bankrupt got clear of the .Public Trustee, some 6oven years later, bankrupt was £3400 worse off than when his father died. Bankrupt got £900 cut of his father's estate. In order to clear up the Public Trustee's , mortgage' and other liabilities, he had to mortgage his Taurakawa property.. , for £5900. , ■ . '•' ~" Here the Official Assigneo suggested that the bankrupt should prepare a written -statement. Mr. Neavo contended thai.tho bank-rupt-had a right to make a statement and he asked that his client'should be allowed to continue. All that . was wanted was fair play. The Official Assignee replied that the oankrupt would get fair play.. : , After'a littlo further discussion Mr. Cook moved that the meeting- adjourn until April 6, in order to allow the bankrupt to prepare a written statement. Mr. Parker, seconded the motion which was carried.