IN BANKRUPTCY.

Hawera Star, Volume XLVIII, 23 September 1924, Page 10

IN BANKRUPTCY.

ESTATE OF- JAMES HODGE. That the sole reason for his insolvency was the fall in the price of dairy stock during the slump period was the opinion expressed by James Hodge, farmer, ot Eltham, who appeared before the Deputy-Official Assignee (Mr 1 ■ S. b. Meuley) at New Plymouth yesterday afternoon. No creditors* were represented, me meeting lapsing -accordingly. According to his financial statement, bankrupt owed a total sum of £1473 os Id to unsecured creditors, and possessed no assets beyond furniture ''to the value of £2O. The Ha vvera Loan and Discount Company had previously been the only secured creditor, lut realisation on its security had left it with a large deficit of £798 Is 9d. The unsecured creditors, who were all of Eltham, except where otherwise stated, were: West. End' Meat Co., £2 6s l()d; Bocock and Bennett, bakers, £8 2s 3d; T. W. "Reilly, baker, Auckland, £1 8s lid; Dr. H. A.. Cooper, £6 os; Dr. Leene'r, £8 18s; Welsh,.■McCarthy. Beechey and Houston, solicitors, Hawera, £SB; Halliwell, Spratt and Thomson, solicitors, Hawera, £18; Farmers’ Co-op., Hawera, £1 17s 6d ; H. Grubb, bootbaker, £6 4s; A. F. Cuff, farmer, £3; J. Walker, saddler, £l 2s Gel- G. D. MacG-regor, chemist, £1; S. E. Carson, bootmaker, £2 11s lid; W. H. Sangster, Hawera, £3 2s; W. A. Parkinson and Co., printers, Hawera, £7 15s; N.Z. Loan and Mercantile Agency, Hawera, £36 4s 6d; A. B. Kemp, garage proprietor, Hawera, £ll 9s 7d; C. C. Stunners, garage proprietor, £9 6s od; I. J. Bridger" cycle dealer, £6, Hawera Loan and Discount Company, £798 Is 9d; A. G, Clark, butcher. £4 Os sd; Hurrell and Son. coach-bmider, £4; Mrs I. C. J. Hodge, £474 7s Cd. Bankrupt, in a written statement, said that he had been continuously engaged in farming during the past eight years, with the exception of a period of six months, when he was employed as a salesman by a land agent. In July, 1922, he leased from Samuel Harold Jenkins part of a farm situated at Mata, near Eltham. The land in question was 227 acres -ii aiea .iv>d was leased to bankrupt for two years. When bankrupt acquired this lease he had 65 cows, three horses and the usual farm inmplements, ‘ over which, however, was a bill of sale to the Hawera District Loan and Discount Company securing approximately £9OO. Besides this £9OO he owed a considerable amount to unsecured creditors. The arrangement made with the Hawera Loan Company was that it’should receive the. whole of the milk cheques, paying from them the rent and other outgoings and allowing, bankrupt small sums from time to time to cover living expenses. Bankrupt bought more stock, bringing his herd up to 82, shortly after acquiring the lease from Mr Jenkins, but not having the necessary fina' ce to* bring his herd up to the full carrying capacity of the farm (100 cows) Le decided to retain his calves during the first two seasons, so that re would have ample stock for the future. . During the second year of his lease, however, he had the misfortune to ose 12 coivs, and owing to the steady decline ,n value of dairy stock which had taken place during the oast two years, he found himself insolvent. Many of ins unsecured creditors, piobably realising his position, began to press him about this time, and altnough his prospects for the future were much better, he decided that he had got too far behind to have any reasonable oi'ospeets of being able to right his position. Owing principally to his los§ of twelve cows mi tot celling his calves, his liability to the Hawera Loan Company had considerably increased during the second season. He therefore decided to bold a clearing sale, but owing to low j aits ruling nis stock aiid implements realised only £529 13s 6d, leaving a balance of £798 Is 9d owing to the Ha.vera Loan Company. There was no question in his mind that the reason for his insolvency was the full in the price of dairy stock. Since the.holding of his clearing sale his health h id. ret been good and he had been doing \t ry little work. His wife had arranged a share - milking agreement, and he now proposed to assist her in farming in this connection.

Examined under oath, bankrupt stated that lie was a married man with five children. His wife was milking on shares fee Jenkins at .Eltham. The Wanganui Fresh Food and lee Com..v had supplied her with some of the cows, taking a bill of sale over them, and under the? agreement with Jenkins she was gradually buying .cows'-ftom him.as time wmt on. Bankrupt heq>ed his wife with the milking, the milking herd comprising 40 cows. Jenkins supplied the farm, as already indicated and received three-fifths of the milk cheque, bankrupt’s wife supplying all the cows, for which she received two-fifths of the cheque, and keeping all the calves and pigs. Bankrupt had sceveral shares in a dairy company, which were covered by the bill of sale to the Ra.wera Loan Company, and cue share in the Farmers’ Co-op. Previous to taking over the lease of Jenkin’s farm lie had been working on another farm near Eltham, which he had bought, but walked off, as he could not make both ends meet, owing to. the slump. After he had taken over the lease his wife had lent him £474, realised from the sale of a house she previously owned in Eltham. This money had since been all used up.—News.