THE SLUMP IN WOOL

Evening Star, Issue 20863, 5 August 1931, Page 10

THE SLUMP IN WOOL

A BANKRUPT'S ESTATE [Pint United Press Association.] CHRISTCHURCH, August 5. A deficiency af £13,991 was disclosed in the bankrupt estate of Washington Irving Carney, a farmer and woolbroker, who mot bis creditors to-day. His financial statement showed that tho amount owing to secured creditors was £9,658 and to unsecured creditors £20,132. The securities were shown at £14,019. Carney attributed bis position to the slump in wool. Bankrupt said ho had been engaged on commission and on account. Until the season 1928-29 bo was making a net income of £3,000 and upwards, i Anticipating that the favourable con--1 ditions would continue, ho bought a farm at Omihi, giving n mortgage of £5.000. Ho bad not made any profits from the farm, though bo had spent £7,000 on improvements, etc. In the 1929-30 season ho lost money in woolbroking, and in 1930-31 the price of wool and farm products began to fall. I He did everything possible to reduce i his expenses, bub certain creditors began to demand payment, and the second mortgagee threatened to sell tho farm, ,aml just within the past few days lie had done so. Ho had failed to get financial aid from America or Australia. “ The whole cause of my trouble was duo to my thinking the good conditions of 1925-28 would continue and to tho general slump.”

After the creditors had voiced their criticism regarding bankrupt’s and his wife’s living expenditure, the Official Assignee said that it was his duty to condemn in tho strongest possible tonus a lot of extravagance which had been a contributing cause of bankruptcy, A committee was set up to assist the assignee in tho disposal of the assets. The Official Assignee said that in one year bankrupt’s and bis wife’s personal expenditure was £2,310.