SECOND FOR YEAR

Gisborne Times, Volume LXXXIII, Issue 12598, 6 July 1935, Page 2

SECOND FOR YEAR

GISBORNE BANKRUPTCY.-

C. J: GALLAGHER’S ESTATE.

For only the second time this -year' tho Official. Assignee) Mir. J. N. Nal--dev, yesterday presided- fiver a meeting of creditors; The bankrupt was Cornelius Joseph Gallagher of Gisborne, laborer, who was represented by Mr E. T. Brosnahah, Ho had. an estimated 1 deficiency of £244 0s Id, his debts 1 (all unsecured) amounting to £264 Os Id, and his only assets comprised furniture valued, at £2O- - onlv creditor present at the meet ing was Mr. AYalter Stubbing*. Bankrupt’s personal statement was ns follows:

“In 1931 I leased 41 acres of land at Patutahi from my father and, through the assistance of the Kia Ora Dairying Co. purchased 22 cows, an a commenced dairy farming o'n the pro pierty. However soon after 1 commenced operations, the price of butterfat dropped considerably arid through this together with the bad seasons I experienced, I soon discovered that I: was not making the far m pay. I had incurred several debts , which I was unable to meet., In addition ill-health on tine’ part of my fam ■ ily placed me under heavy expense. In '1933 I decided it was useless mV . carrying on any further with the farm. I disposed of the farm and cows, but. after the secured creditor was paid there was nothing left for me to pay my unsecured debts with much less meet the rent owing in respect of the property. Since leaving the property I have obtained work and am at present earning approximately £4 per week. Out of this 1 have been paying trying to meet pressing delfts, but as I have' a wife and fou r children to support I have been unable to reduce my indebtedness by any appreciable amount. Another creditor is now threatening proceedings agi ainst me, and as it is impossible for me to meet his claim accordingly L have no oilier alternative than to file in bankruptcy.” , Under cross-examination by the Assignee bankrupt stated that his chil dren we.re aged 6yrs, 4-y-rs, 9yrs an'-' 9 months. Before taking up the lease in 1931 he was working for his father receiving simply bis keep. Tie leased 41. acres from his father in June or July 1931, this lease being put into writing. At the time he had practically no cash, but he secured an advance of £3OO from th 0 Ki a , Or a Dairying Co. for the purchase of stock which, was then running On the property. Practically the whole of this amount was paid to his father. Apart from stock, implements, comprising plough, disc harrows, scarifier, dray and harness, were included in the purchase. There were 22 milking oows in all. 3 draught horses aud 3 breeding sows. He Carried on the dairy farm for practically 2.) years, and when he closed down a. su m of £290 odd was owing to the Kia. O ro Co. Bankrupt had been earning £*4 a week f° r tli© past 1.1 months, out °f which he was paying rent of 24s per wee. He was managing -just simply to pay his way. In Ids first season as a dairy farmer he milked about 22 cows which should have returned him about £l5O in all. Apart, from this lie lvad pigs which brought in about £2O. He also carried out a little ploughing which produced about. £3O. While on th 0 farm he paid, about l £2O to his father in the first year as rent. Before bankrupt received his eream cheques the Kia Ora, Co., tool; a. shar c out- of it, this including payment for manures, etc.

The Assignee: Ho w do .von. account for getting into debt in this way? Baikrnpt ; j had a good deal of siokness in the family. What did J'ou Pay in the way of debtor’s hills, ete. ?—Ther e was £4 to Sister Wade. What did you do with, the lease?— 1 sold i;t out. to my brother-in-law. Did he take over tile stock?—Yes. vWhat did you get for th 0 lease? — £317Where did that money go?—] n rates payment to the Kia Ora Co. to Nolan a.nd Sheet, etc. But it left J'ou in. debt?—Yes. You ow 0 £ll odd for bread?—.Yes Surely that is one of the first accounts anybody should pay?—l would have paid if i could. Mr. Stubhings: You are paying 24,s a week rent —Yes. Can J r ou keep any cows or something like that ?—Th e property is not big enough. Couldn’t you secure a cheaper house? * —l have to look after the health of my family. The assignee commented that one could 'secure only very indifferent houses in Gisborne for as low as 23s 6d a week. - Mr Stubhings stated,' that two houses 0 were recently secured at much lower rents. »■ Mr Stubhings (to bankrupt) : How much did it cost t 0 file? Bankrupt:—.£9. * > That would have gone a, tong way to ease some of the tradesmen’s accounts?—My father happened to give me that. What are you prepared to do now? —I can’t see my way clear to clo, any thing. The Assignee: When you went on the form did you owe anything?—Yes : What amount- in all?—About £lO or £ls. Is any money owing to you now P No. ’ ’ . ‘ The assignee commented: that as far as h 0 could see, bankrupt would bo unable to make any offer on tUc wages he was now receiving. The meeting wag'- then adjourned sin e die.