SUBSTANTIAL DEFICIENCY.

Hawera Star, Volume XLV, 20 February 1926, Page 6

SUBSTANTIAL DEFICIENCY.

FARM LABOITRERI’S AFFAIRS. LOESSES ON FARMING OPER ATIONS Showing unsecured. debts. totalling £O4OO 2s lid and sole assets o! under £25 worth of personal furniture, the financial statement Qf Arthur George Gandy, farm labourer, of Whareroa, were investigated in Hawera by the Deputy Official Assignee (Mr R. to. Sa<»eJ yesterday. There were also present the bankrupt and the l following unsecured creditor's, Messrs JL. A. Taylor, C. D. Arlidge (representing the fiawera Hospital Hoard and Dr. A. M Thomson! and J. Eodie (on behalf of Mr. H. B. Gibson). . Bankrupt’s statement showed _ that the principal debt was one of £1517 6s lid, being interest owing to a mortgagee of a farm, which he had been compelled to l vacate. There was also a debt of £3OO incurred through the failure of a friend fo repay a loan which had been guaranteed by bankrupt. The amount owing to unsecured creditors was rna'de up as follows: —Dr. Cooper, Eiltham, £l2 12s; Hawera Loan Company, £300; Malone and King, Stratford, £120; C. Stannens, Eiltham, £4; Masters Ltd., Stratford, £lO 10s; John Davis, £l2; —, Skevington, Whakamara, £IS; —. Harris, Toko, £7O; —. McLeod, YVaverley, £2; Hawera Hospital Board £9 4s 6d; Stratford Hospital Board £7; Dr. Thomson, Hawera, 10s 6d; —. Griffiths, loko, £3; E. Douch, New Plymouth, £1 2s; A. Burkett, Inglewood, £7; J. Bonner, Ngaere, £3; J. Arthur, Ngaere, £l6; Scott and Barker, Ngaere, £6 os 6d; New Plymouth Harbour Board, £9O; R. H. Phillips, £1517 6s Tld; Newton King, Ltd., Stratford, £103; H. B. Gibson, Hawera, £3O 11s 3d; L, A. Taylor, Hawera, £56 19is 3d. Bankrupt's written statement was as follows : —Prior to 1923*. I was fanning at Ngaere, but when the slump came I left my farm, leaving liea.vj liabilities in respect of the place anc the stock. My brother, Charles Candy and I were then offered a farm ai Kohi by a Mr. Charles. The price was £33 10s, and the vendor agreed to sel us the stock on the place if we coulc find a few cows in order to stock the land fully. My brother, E. B. Candy found about a dozen head for my share but, as my brother Charles and 1 wen insolvent, it was insisted that the place be taken in the joint names of oui wives. We did not make a success ai Kohi, and in March we were heavy ii debt to Mr. Charles, who, however got a good offer for the farm and ii consideration for our wives leaving the place, he gave Mrs. V. I. Candy anc my wife about 80 head of cattle of the place. Our wives then took a farn at Meremere and mortgaged the cows for the rent. We stayed there one season and then my wife, dissolved partnership with her sister-in-law and the debt on the cows was halved. My wife then took over two small farms near Hawera. We received nothing above our keep at Meremere and Kohi and I have not been able to reduce the liabilities contracted by me at Ngaere, and, owing to sickness, I have dropped further into debt. In September last a demand was made on my wife for the stock money and the rent. We then owed about £3OO on about 30 cows. An offer was made to accept £SO lees for cash and my wife endeavoured to borrow the money. She was unsuccessful and we were advised to take' action against our landlord and mortgagee for an injunction and to get the accounts reduced. Another offer was then made to take back one of the farms and to take over some of the cows and accept £l6O cash, at which the landlord would allow us to carry on with the other farm. We.endeavoured to raise the required £l6O, but were unable to do so. My brother, E. B. Candy, thought he could borrow' the money, however, and we were advised by our solicitors, to .sell the cows that would remain to this brother and allow ( him to.take over the lease. The landlord was quite agreeable to this and on being told by the solicitor, who had advised us to take the action which was then proposed, my wife, brother and myself accepted. My brother, however, was unable, to borrow the £l6O and, as we were all' bound to find the money, we had to go back and make the best possible terms with the former mortgagee and discontinue our actions. My brother has now taken over the farm we are living on and owns the cows which remained, but he still has a liability of over £l7O over them and there was £IOO rent due on January 1. My wife and 1 are milking the cows for my brother for an allowance of £l2 a| month, which is all, if not more than, the profit on the farm. We used to own a trotting horse which returned fair results until it met with an accident. When we commenced action against our 1 mortgagee our solicitor insisted on a deposit and took our milk cheque and I had to sell the horse to furnish living funds. We did not know the action would be an expensive one, but I have since received an account for £7O costs, which leaves me nearly £6O in his debt. I have no means of paying this bill of costs and, as my other debts are heavy and as 1 have nbver had a clearance from the Ngaere farm, there was nothing for me but to file. When at Ngaere I had a car and some dairy factory shares all of which were sold, in August last, realising £l5O, £BO of which was used to pay a bill of costs owing to Mr. H. B. Gibson and the balance f paid to him off my wife’s account. 1 have six children and can make no offer to mv creditors.

After the bankrupt had been cressexamined by Mr. Taylor, while on oath, the latter questioned the validity of a bill of sale held by Mr Gibson. On the motion of Mr. Taylor and Mr. A.rlidge, the T>.O.A. was instructed to investigate! this matter. The meeting iv.a-s adjourned.