IN BANKRUPTCY.

Hawera Star, Volume XLV, 17 June 1925, Page 9

IN BANKRUPTCY.

GOODSON BROS.’ ESTATE

A meeting of creditors in the bankrupt estate of Louis' Chas. Gooclson and Dawson Trevor Goodson was held in the office of the Deputy Official Assignee (Mr R. S. Sage) this afternoon. There were present: Messrs C. Goodson, -Q. J. Bassett, F. Gillanders and S. McDonald, with his solicitor, Mr P. O’.Dea. and bankrupts and their own solicitor, Mr D. G. Smart. The D.O.A (Mr R. S. Sage) presided. ’i he debtors’ financial statement showed unsecured creditors’ claims totalling £1430 and secured cerditors’ claims amounting to £BOO9. The estimated value of securities was £4OOO. Assets were valued at £424, leaving a deficiency .of £5015. l ire un seen red creditors were: — Charles Goodson, farmer, Hawera, 61393 Is: E. J. Bassett, storekeeper, Hurleyvilie, £ls; S. Couchman, carrier. Alton, £4 10s; G. Syme and Co., Ltd., timber merchants. Hawera, £7; F. Gillanders. seedsman, Hawera, 9s Id; D. G. Smart, solocitor, Hawera, £lO 4s 3d. Bankrunt’s written statement was as follows: —“YY'e returned from the war in 1919. and in 1920 we leased a 100-acre dairy farm at Hurleyvilie from nr father. Mr Chardes Goodson, at £3 per acre. To. stock up we obtained a stock loan from the Crown for £750, the Grown taking in addition to a bill of sale an order on one-third of our milk cheques. YYe purchased a. herd of 39 cows at an average price cf £2l per head. During the first year we had a serious loss, as 14 of these cows .had 1 to he culled out- and replaced at £l4 per head. During the season 192123 we supplied a, proprietory company I with cream. The result did not compare favourably with what our returns would have been had we been supplying a cheese factory, and the installing of a. separator plant was a further loss. In March. 1925, the stock loan to the, Crown had been repaid by the order on our milk moneys and sales of stock. We found, however, that the farm was ten small for both of us to get a living on and make headway, and we were heavily in arrears with the rent. \Ve have been carrying on this farm up to the present time. Out aunt, Mrs Bucklev, and Mr Stewart McDonald, were interested as second mortgagees (Mrs Buckley to the extent of £I6OO and Mr Stewart McDonald to the extent of £1300), subject to a first mortgage securing a soldier’s loan from the Crown of £4BOO in; another farm at Hurleyvilie, comprising 287 acres. In the beginning of 1924 we were offered this other farm at Hurleyvilie at a price equal to the first and second mortgages, the stock comprising 60 cows and four horses and implements, at a valuation put on thorn by the* .Crown namely £650, such sum of £650 to be secured to the Crown bv » stock mortgage. In February, 1924. we purchased this farm and stock on the above terms, nartly because Mr Stewart McDonald informed us during the negotiations that he would 4tever press us for interest, on his share of the second mortgage if the farm did not pay, because we thought we could make the farm a success by running sheep on : .t. as it was not suitable for dairying We sold the dairy herd and horses a* amotion, and they realised onlv £320 16s. making a loss to ns of £336. Tn July, 1924 we purchased, through Mr Chas.. Goodson by arrangement with the Crown. 566 breeding ewes at a cost of £BSB. We had to give a bill of sale over these sheep to the* Crown for £656 The ewes and lambs anc: wool were sold through the Loan and” Mercantile Co during the following season, and the proceeds went to pay interest on the Crown’s first mortgage over the lain!, TJ-io amount owing under the hiil of side and the balance went towards the original cost of the stock and certain sundries. YY’e have had no returns from the farms sufficient to pay interest on the second mortgage. YYe explained the position to the second mortgagees, and we have tried to show them that the farm is not worth the first mortgage. but Mr McDonald insisted on payment and sued us for £164 interest ■ii’April last-. He has. now issued a Judgment summons, and we have been forced to file. On Mr 3. McDonald’s 'request one ot ••b4 .bankrupts, D. T. Goodson, was put on oath and examined by Mr O’Dea. In reply to Air O’Den. D. T. Goodson said that, the farm had been bought at £26 per acre, but it, was found after farming it that it was not worth nearly that amount. He did not think it was now worth £l4 per acre. They had put £206 worth of improvements on the place, but these improvements had been necessar- in order to convert it from a da.’rvinu into n. sheep farm. He would sru that- his father had been ’ i n the value of the property .when thev bought it. The D.O.A. then went into figures showing tli receipts and expenditure m onnertir-n wHh'the farm. .Receipts bad amounted to £455 and expenditure papy 3as besides expenses paid by C. Goodson. 11l ,reply to further questions by Mr O’Den bankrupt's said they had never said thev were not going to pay Mr McDonald. -They had not asked their I'nthcr ;r lie was going to. carry McDonald on his back. Air AlcDo.naid said the fnnn ancl houses bad been m thorough order when be .eft it in 1915. Bankrupts said that the farm was now overrun with weeds. As far as McDonald’s interest was concerned, it could not he paid, as the niace would not earn tlm money. McDonald had - eoeatedlv waited on their father, and bad asked for the interest. * “And T ordered him off the place,• in+"riected Air Goodson. Tn veplv to the D.0.T1., O. Good,son said he bad offered to pay £260 for AUTri-naid’s mortgage. The meeting is proceeding.