SHEEPFARMER FAILS

Gisborne Times, Volume LXVIII, Issue 10742, 13 November 1928, Page 7

SHEEPFARMER FAILS

J. It, MUEPIfSY’S ESTATE.

VALUE OF FURNITURE FOR INQUIRY.

The cause of the hnanciul failure of John Rowley Murphy, a wellknown fclieepfarm&r of Poverty Bay, whoso bankruptcy showed a deficiency of £38,692, was investigated by liis creditors yesterday. Tho estate’s liabilities to secured creditors totalled £27)659' whilst £39,937 was ow-ing-to- unsecured creditors, the-as-sets being estimated to produce £1.245.. v .... . . , . The examination was conducted by the Deputy Official Assignee (Mr C. Blackburn). Creditors represented were Hon. J. D. Ormond’s estate (Mr 14. ff, Nolan), Hydro Electric Engineering Coy. (Mr H. Silverwood), G.S.F.M. and M. Coy. (Mr F. Salmon), Bank of Australasia (Mtr PI. Thodey), National Bank of New Zealand (Mr 11. A. Barnsdale), Bank of N.S.W. (Mr F. Carpenter), Poverty Bay Farmers’ Meat Coy. (Mr W. 11. Irvine). Bankrupt was represented by Mr PE D. Chrisp. Examined by the Assignee, bankrupt declared that the isum of £blß 2s 3d shown among the assets as cash in hand, represented wages, proceeds, of the sale of stock, or which he undertook to supply a list. The stock disposed of were a considerable number of. horses, the other stocks being held under a chattel security to the bank. • The Assignee: You raised some well-bred racing stock, didn’t you?--Yes, but the horses sold were mostly draughts. Were any racehorses sold recently? No ; about twelve months ago. How many thoroughbreds were sold then? Two racing mares. He had also disposed of a number of £5 shares in the Dominion Parmer a’ Coy. at par within the past three months. In addition, remits totalling £SO from the Kopuriki property and wages amounting to £l3O were included in cash in hand. There were no cars included in the value of the furniture, whicn was estimated at £4OO. On bankrupt’s behalr, Mr Clinsp explained that Mr Murphy had owned two cars. One vehicle was now at Wairoa, and at the time of his filing required repairs, which were estimated to cost £25. but the work had since been done for £lO, The value o£ the car was now about £2o. lne other ear, a limousine, had been handed in by Mrs Bennett for a new car, about £SO being alloved on the old model. Mrs Bennett paid the difference and was responsible for the balance owing on the new car The old car had been given to Mrs Bennett about three months ago at the time of. the trade in. "The Assignee: you ever have a private meeting or your creditoi s and make any compromise with them? , . Mr Chrisp explained that he had sent out a circular letter on August 9' to a number of creditors, asking if they would accept an offer on the basis of the then available assets. Was the letter sent to all the creditors or to those to whom you owed personal debts. ' , , . Counsel Said the offer had been made to all creditors. “What payment was made? asked the Assignee. • ~,, “None,” replied Mr Chrisp. ‘the offer was not acceptable to the creditors.” He added that up to that date Mr Murphy’s current accounts were paid out of his wages, thus accounting for the absence of any trade'smen’s debts in "Tho bankruptev. Whilst at Tangihau Mr Murphy said his salary was £3O per month, though he admitted that ho coulci not give details as to the payments out of his salary in settlement of personal accounts. , . , The Assignee: What did you think veu were owing in private debts on August 9? £1000?—Oh, no; there was practically nothing owing then. At one time you owed drapery firms a good deal; that has all been worked off in the last two years?—Yes. The Assignee: I suppose that at one time your house at Repongac-re was well furnished? What became of the furniture? Bankrupt said that some of the furniture was shifted to dangihau and some was sold to Mr Georgette, and some was stored at Mrs Donuer’s He had shifted very little down to Mohaka, where he was non manager of a. property. What is the value of the iurm--ture at Mi’s Donner’s? —I can’t say. Mr Chrisp skid that some of the furniture had been destroyed in the fire, and on this £2300 insurance was paid out. The insurance on the furniture when Mr Murphy was at Repongaere totalled about £3OOO. which* of course included Mrs Murphy’S effects.. He contended that -much of the furniture could fairly be claimed by bankrupt’s wife. The Assignee: The wife usually does claim the furniture when the husband files. , Bankrupt admitted that he had three life insurance policies totalling £5500, which, however, were assigned to the banks. Questioned by Mr F. W. Nolan, bankrupt admitted that when lie had the Pahanui station he obtained a loan from the Hon, J. D. Ormond estate, on a valuation made by Mr Pryde, both he and his manager being present when the valuation was made. The property comprised 6559 acres, including Putere block. When the valuation was made, bankrupt was unable to say what figures as to the carrying capacity of the property ho supplied to the valuer. He admitted that Prydo might have been informed that the property was carrying 6570 sheep, 380 head of cattle and 22 horses. Mr Nolan: In supplying these figures can you say whether you told the valuer that this included the Putere block, over which the mortgage was not taken ?—I should say so. But the valuer says that it was not indicated to him that the figured as to the carrying capacity related to both the Pehanui and Putere blocks?—We didn’t try to beat him over it.

If tKe valuer says that lie was pi vein no indication that the Putere block was included m the carrying capacity,' what would you say ?—I didn’t lie about it,. I’m not in the habit 'of telling lies. I think , the fetation books showing what, each paddock .was, carrying would have been shown to the valuer. He admitted that the'Ormond estate advanced £15,000* on the Pehanu station, and were later compelled to up under their mortgage only £7OOO being realised. The offer made by bankrupt to 46 creditors bn August 9 amounted to 3d‘in the £, remarked the Assignee after persuing the letter sent out. I 'Answering Mr Barnsdale. Murphy admitted' that there was ai\ overdraft of £13,000 against his name from the Union Bank at Opotiki, hut ho contended that it should be against, the estate. • Why then did the bank show that the overdraft was purported to he a trust P—l don’t know. It is reasonable to suppose that anyone haying knowledge of that debt against your name would not attach- it : to 1 the estate?—Yes. ' Bankrupt explained to the Assignee that the overdraft w r as incurred f or : the purpose of clearing bush on Waikowa station. ’ When-the Assignee reminded , creditors’that the value of the furniture ■was above the amount allowed by the ‘Act to ; he retained by bankrupt, "Mir. Ohrisp. oil behalf of Mrs E. 1?. Ohrisp,!. pointed ! opt that the whole

bankruptcy was regretted in evdiy way. Mrs Chrisp bore no * ill-will to tho bankrupt and on her behalf he moved that bankrupt should be allowed to retain tho whole of the furniture except the billiard table and accessories. Mr Silverwood seconded tho motion. , , Mr Salmon asked why the 0.5.F.M. and M. Co. had been omitted from the pro rata payments of trades creditors accounts.

Mr Chrisp pointed out that it was purely an oversight. There were a number of accounts owing to. small firms which bankrupt considered should bo paid and all gave liberal discounts. Nothing had been paid off accounts over £IOO. - Mi- Salmon: The G.S.F.M. Co.’s was a trading Account and we expected to get a little. Tho total of tho small accounts paid was about £230, said bankrupt, the settlement being made early tills year. The Assignee remarked that he would like .to look into the question of the value of tho furniture further.

Mr Ohrisp pointed out that it was usual to allow a bankrupt to retain bis furniture.

Tho Assignee admitted this was the usual practice in a small bankruptcy where the furniture was valed -at about £BO Two creditors announced that they hud received no instructions as to how to vote on this matter and tho meeting was adjourned to enable them to obtain advice.