A BANKRUPT FARMER.

Lyttelton Times, Volume CXVII, Issue 17078, 29 January 1916, Page 10

A BANKRUPT FARMER.

FAILURE DUE TO DRY SEASONS. MEETING OF CREDITORS. A meeting of the creditors of James Nee, described as a labourer, of Fendalton, was held yesterday afternoon at the office of the Official Assignee (Mr T. D. Kendall). Mr Goodman appeared lor the bankrupt, aud Messrs Twynehaiii and Neave appeared fflr creditors. The Assiguce read a statement showing that amounts due to unsecured creditors totalled £309 19s 4d, and to secured creditors £1652 10s 3d, less estimated value of securities £2250, leaving a surplus of £597 9s 9d. The principal secured creditors were:— Kennedy's Estate, £1000; A. S. Nichclls, £500; Evans and Bull, £130; A. Sandford (storekeeper, Greondale), £22 10s 3d. Tho principal unsecured creditor:; were:— iU'Crostie and Westwood, Greendale, £7O lis 3d; M'Crostie and Cullens, £4/ Os 9d; National Mortgage and Agency Company, £3O 13s 3d; f. Hunter and Son, West Melton, £25 3s; New Zealand Farmers' Co-operative Association, £62 4s Id; J. Nee (storekeepor, Greendale), £24; G. L. Beath and Co., £ls 4s od ; Lane and Neave, £ls 17s 3d; \Y. Strange and Co., £l4 12s od; J. E. Austiu, £ll 3s 3d. In his sworn statement, bankrupt said that he was a married man with a. fatnilv of nine children. Up to six months ago he was farming at Greendale, on a property ot about oIAJ acres, of which lie had been in possession for some two years. Prior to that he had a farm of 290 acres at Methven, and that he exchanged for the Greendale property, on which there were mortgages amounting to between £SOOO and £6OOO. No money passed in making this exchange. He decided to take up the Greendale property because lie could not make a living out of the Mcthven farm, and he thought he might do much better in the bigger property. However, ;:s he had no capital with which to work the place and had to depend practically on his own efforts to work it, he found the place too big for him, and was then induced by the Farmers' Co-operative Association, with whom be had many dealings, tc give up the place. An exchange was arranged by Messrs Evans and Bull by which he took over a property at Fendaiton for the farm at Greendale. No actual cash passed. The probable value of the property was about £2250. Most of the debts shown in his schedule, continued tho bankrupt, were contracted when he was on the Methven and Greendale farms. The Fendalton property did not imprfiije his position, and for some time he had been endeavouring to sell the. place, square up the creditors, and take a smaller property. However, Messrs' M'Crostie and Westwocd and Culleu, threshing machine owners, obtained judgment against him for amounts due to them, and put the bailiffs in possession of the Fendalton property. To protect the other creditors ho was advised to file his petition. The dry seasons on the farms, together with the fact that the Greendale property was too big for him to manage by himself, and he could not afford to pay labour to work it, contributed largely to his getting so far behind with his creditors.

The Official Assignee said that the value* of the Fendalton property was £1245, but this valuation had been made five or six years ago. To-day the property was worth more.

Mr Neave said that he considered the property was worth no more than the mortgage upon it, therefore the creditors could hardly look for anything from, that source. Ah - ' Goodman said that the bankrupt had had offers for the property, and he had held on, hoping to sell at a good price. The putting in of the bailiffs had' brought matters to a head. Air Twyneham said that there was demand for land in the vicinity of the Fendalton property, and he urged that steps should be taken to sell to advantage.

It was mentioned by one creditor that Mr Craddcck had valued' the property at £2OOO.

In reply to Mr Twyneham. bankrupt said that he had not Jived extravagantly on the farm. Ho was a. moderate drinker, but never drank to excess. He was not aware' that Ibis neighbours had done well on their farms. He had suffered from want of capital.

It was pointed out that if the property sold favourably the unsecured' creditors had a reasonable chance of receiving ten shillings in the pound. It was decided that the property should he offered for sale by public auction, and Mr Twyneham (representing Messrs M'Crostie and and M'Crostie and CullenL was authorised to net with the Official Assignee in the disposing of the property.