A BANKRUPT FARMER

Dominion, Volume 14, Issue 304, 17 September 1921, Page 5

A BANKRUPT FARMER

FAILURE DUE TO FALL TN LAND AND SHEEP PRICEfe. | ... From Our Own Correspondent. Palmerston North, September 13. A meeting of creditors in the bankrupt estate .of George M'Betli, of Kimbolton, farmer, wns to have l been held at tho office of the Deputy-Official As-I signee in Palmerston North yesterday, blit did- not attract a quorum l . The total debts were stated to be «£*2501, and the total assets A'1149. leaving a deficiency of .£1355. L. T. M'Lean was the only eecured creditor (for .£12,977 55.), tho estimated value of the security being .-£13,660 15s. Hei jwas also on unsecured creditor to the amount of <£725 10s. 7d. The other unsecured creditor was Robert M'Beth, father of the bankrupt, for .£1779 7s. sd. Bankrupt had a property of 270 J acres on the Kimbolton JRoad, Cheltenham, which was valued at £13,660 fe. Bankrupt, m his statement, said that he had worked for his father prior to enlisting in 1917, and also on his return from the war. Later, with assistance from his father, ho entered into an agreement for tho purchase from Mr. M'Lean of 270 J acres at £5O 10s. per aero. Land, was then at its top price. His father advanced him £B2l Os. 6d. to pay the deposit and stamp duty, and a further advance of £904 16s. was made for the purchase of stock. This was expended in the purchase of 605 ewes. In December he paid £357 6s. 4d., six months’ interest, to Mr. M'Lean. The values of land and sheep both fell suddenly and when further interest was due in April, 1921, he was unable to meet it, and offered Mr. M'Lean the property buck again with, all stock on It if lie would release him from- his obligations under .the agreement to purchase. That .would have represented a loss to bankrupt of about ,£J7OO in twelve, months, all of which mdney had been advanced by ills father. Sheep which had been bought: at 80s. per head had been sold at a loss; 100 averaged about £l, and tho balance of. 150 only averaged 55., after being kept for twelve months. .Ho had 13 bales of w-00l worth about £5 per I>nle.„.which ho handl’d to his father in May last to pay interest due, £65. He attributed his failure tn the sudden fall in the prices of sheep ansi wool. Had the old prices held lie could no doubt have carried on. Under the agreement to purchase the land, instalments fell due which he was unable to meet, and a writ had been served on him for the amount due. Just prior to his filing he, with his father’s consent, offered Mr, M'Lean the form back again; he also offered to forfeit all moneys he had paid on and to hand over all the stock on it, valued nt over £406, but the offe.r was refused.. Bankrupt stated that he had never drawn anything out of the farm account fpr himself, during the whole time he had been on if, as he was receiving £8 per month in wages from his father for looking after another place. Tn the course of examination the bankrupt stated that Air. M'Lean had said that he would not press for the instalments so long as his father entered into a guarantee to keep things going, and this Mr. M'Beth,' senior, had agreed to do i