FARMER’S FAILURE.

Hawera Star, Volume XLVI, 25 June 1927, Page 3

FARMER’S FAILURE.

MEETING OF CREDITORS. MORE DETAILS ASKED. A deficiency of £6539 was shown in the statement presented at a. meeting of his creditors at Hawera. yesterday afternoon by Emil Scheiber, farmer, of Kaupokonui, who was adjudged bankrupt on June 13. The. D.O.A. (Mr R, S. Sage) presided. Bankrupt was represented by Mr B. McCarthy, and the following were present- for the creditors: Messrs A. G. Bennett and J. TV. Snowdon, Alanaia Bußdin-gr and Investment Co.); and Air W. G. Walkley (Alanaia Loan Co.) The. financial statement showed liabilities to secured creditors amounting to £18,060, less £11,730 (the estimated value of securities), leaving £6330. Debts to unsecured creditors amounted to £9, and other liabilities to £2OO. No assets were shown, the estimated deficiency thus being £6539. The secured creditors were the fi\lanaia Building Co., Ltd., against whose debt of £3IBO stock estimated at £6OO and, mortgage £1945 was shown, and J. J. Patterson (Alanaia), against whose debt of £14,880 the estimated value of mortgage security was shown as £9185.

Tiie unsecured creditors were: Kaiipokonui Dairy Co. (£8); and Hailliwell, Spra.tt, ‘ Thomson and Horner (£1). The remaining liability was £2OO on promissory note to the Alanaia Loan Co.

PERSONAL STATEMENT. “I arrived in New Zealand in 1904, , and until 1914 I worked a® farm labouirer and shareiuilkor, M -said banknipt, in his personal statement. “In 1911 I took over a farm of 111 acres at In ah a on lease, with compulsory purchasing clause. .1 completed the purchase in 1918. 1 remained on this farm until 1920, when I sold to Alessts Purser and Grav at £75 per acre, the purchasers paying £2OOO cash, which netted me £I4OO after discharging liabilities. The sum of £2945 was left on third mortgage, which was reduced by two cash .payments of £SOO each to £1945 in 1924. In 1920 1 purchased Air IV. E. Candy’s interest an a farm at Kaupokonui, comprising 252 acres, which I occupy at present. “The price was £ll7 per acre, of which I paid £I9OO in cash, .including stamp duty and charges), the balance being as follows: First mortgage to Air J. J. Patterson of £24,817 (then owing, by vendor) and a second mortgage to the vendor (Air AV. E. Candy) of £2459. .1 brought about 45 cows which, were unencumbered, from the Inaha farm to Kaupokonui. and I bought about /0 cows and heifers at £2O and £ls per head respectively, as the larger farm required moire' stock. To enable me to complete the purchase from Candy and the .purciha.se of additional cows, I borrowed £2114 at 9 per cent, from the Alanaia; Building and Investment Co., Ltd., and gave that company .security over my dairy herd and Gray and Purser’*; mortgage of £2945. _ The farm was in a backward' condition, and 1 had to employ outside labour the first year to assist, and the renovation of the dwelling cost me £2OO. VERY BAD SEASON.

“In 1920 I had a very bad season, due to lack of feed in spite of the good prices for produce. Unfortunately the Kaupokonui Co-op. Dairy Factory Co., Ltd., paid a low price tnat year. From the- first .season I had a hard struggle to carry on, having paid interest in full on all .mortgages. 1 saw Air Patterson, who reduced his mortgage, from £24,817 to £21,414. 1 later got a further reduction from Air Patterson in 1924, which reduced his mortgage to £6O per acre with interest at 5 per cent, uer annum. I find now even' at this price that I cannot make the farm pay, asi my farming operations resulted in an .increase of my indebtedness? to the Alanaia Building and Investment Go. . “This year I have been unfortunate with the‘low prices, and the cows will fail to come into profit. I consider that an expenditure: of £SOO is required to build up the herd to enable me to carry on. and I see no prospect of doing tins. . “I have had sickness m my family at various times, which cost, me aoout £3OO. . , ' , “J attribute my bankruptcy to misfortune. the high cost of land and stock at the outset, heavy interest charges, and to the poor price ruling this "season. Before filing I made an offer to the Alanaia, Building and Investment Co. to hand over all my assets and being given a. clearance, hut this offer was "declined.” CREDITORS’ QUEiRIBS.

Air. Ben lie tit: Aly clients would like to know where your wife got that motor Bankrupt: She bought it lor £4OO over u year ago. .It was her own money. Answering further queries, bankrupt informed Air. Bennett that his (bankrupt’s) wife possessed about £IOQ when Patterson’® farm was taken, over. She had since pilade money from pigs and poultry. He. did not think it wrong to have given the pigs to. his wife, when Ire coulcl not meet his liabilities. He admitted that the Manaia, Building Company bad been allowing him. about £4O a mouth. The milking, machines', which, were on the farm, were given by bankrupt to wife, though bankrupt had spent about £6O on them. He gave; his wife 'a bill of sale over the machines, and she had mortgaged it to a third party. The horses .also- belonged to Mrs. .Schickel*, though she had iiofc paid .'bankrupt .any money for (the I horses, pigs, or milking macihuies. | Air. Al.eidamthy linterposed that he did not think bankrupt understood counsel's questions. Air. Bennett: Does he want an interpreter ? Air. McCarthy: It is too late for one now. Proceeding, -bankrupt said he bad no hanking .account of liis own, practically the whole of bis money having been handed to Mrs. Sollicker. Air. Bennett: Then your wife is your banker? She had the money. How long have you had the car? About 13 months, EXAMINATION ADJOURNED. Air. Bennett : AVhen you c-ome into town -in a sedan car to meet your creditors, they naturally wish, to know something about the ciair. Somebody had, paid £4OO for -it in. 13 months. Bankrupt said there were the pigs and (lie eggs. He had given, hi© ©hares in the. Riven-dale Daiirv Company to Air Patterson for £94, hut this had gone to meet debts. Air. Snowdon : But the Building Company was allowing you money.

Didn’t you liave a big party at ypur pi ace?

Xo. “I’ think .there is more in this than meets the eye, and the meeting .should be adjourned to alloy bankrupt s wife to be examined,”, said Mr. Bennett. Mr. McCiamthy «id that if the meeting mas lad-journed bankrupt should' be allowed the services qf an interpreter, it being evident that his knowledge oi English was wot equal to appreciating couvusel’s questions cotrreotly. Questioned by Mr. Wailkley bankrupt cQuld not say definitely when the ear Mad been paid for f uOily ._ On the motion of Mr. Wailkley. seconded hy Mr. Snowdon, the meeting was adjourned to- allow of the examination of bankrupt’s. wife.