BANKRUPT FARMER MEETS CREDITORS

Manawatu Times, Volume LIV, Issue 6867, 23 March 1929, Page 6

BANKRUPT FARMER MEETS CREDITORS

Bill of Sale to Wife E. ALEXANDER, OF APITI EXPLAINS INSOLVENCY The D.O.A. (Mr. C. E. Denrpsy), presided at a meeting yesterday of the creditors in the bankruptcy of Edward Alexander, farmer of Apiti. The amount owing to threo creditors is £2851. Assets in the estate are nil. Mr G. Tremaine appeared for bankrupt, while the principal creditor, Mr. Thos. Hoult, was represented by Messrs 11. E. Cooper and J. M. Mason. Also present was Mr. T. C. Burton. Bankrupt’s Statement. Bankrupt’s sworn statement disclosed that prior to 1919, ho had been farming inlho Apiti district for about 10 years on a farm of 150 acres. About nine years ago, in conjunction with his brother, he bought another farm of 100 acres from one Noel Oxnam at £2O 10s per acre, paying £ISOO cash on account. Stock was procured to the value of £2,000. In the first season on the_ place sheep prices fell badly on the next season, there was a 50 per cent drop in butterfat and the slump commenced. Bankrupt’s brother did not stay long in the farming venture. Soon after purchasing the 400 acre farm, bankrupt sold his 150 acre farm, receiving £550 cash and taking a second mortgage for the balance _ot £BGO, which amount was later increased to £I6OO. The 400 acre property was mortgagee to the State Advances department for £2,000. reduced to £1372 when possession was given up. There was a second mortgage of £5322 and a third of £2060. Earning operations were carried on till November, 1928, when the second mortgagee sold up the farm and bought it in at £l6 per acre, showing a loss to bankrupt of £4,200. In May, 1925, bankrupt assigned the second mortgage on the 150' acre farm to his wife. At this time, ho was quite solvent. The amount owing to Burton is £758 11s 2d and to Hoult, £2060.

The Examination. To Mr. Dempsy, bankrupt stated that he kept no books; some of his money he paid into a Post Office account, the rest went through his bank. Examined by Mr. Cooper, Alexander sworo that no one owed him any money, nor that there was any money held on his account. Levin and Co. sold his stock in November last, the proceeds going to S. Hall who was trustee for a bill of sale held by bankrupt’s wife. He remembered a bailiff seizing his cows, which ho thought Sam Hal] claimed under a bill.of sale. Mr Onglcy later interpleaded and claimed the cows under a bill of sale. The day before the claim was to be heard, Hall dropped the case. Bankrupt denied that the proceedings were dropped because the bill of sale was fraudulent. Mr. Hall did not advance bankrupt any money in respect of the bill of sale, he paid off £625 owing on a bill of sale to one Lena Hodge. L. A. Guy gavo Ilodgo a cheque for the amount paid to Hall. Most of the money included in Guy’s cheque was provided by bankrupt’s wife, who had been paid wages amounting to £320. Mrs Alexander had £125 interest received and about £2OO received from her mother. Guy did not want the bill of sale in his name. Bankrupt did not know why Hall did not go on with the interpleader proceedings. At present there was a mortgage in bankrupt’s wife’s favour of £1628 from one Hogan; the money was transferred to Mrs Alexander by bankrupt. The amount was a present to his wife, the gift being mado in July, 1925. About this time, bankrupt approached Fred Hoult to reduce his mortgage. He denied that Hoult stated he would reduco bankrupt’s mortgage by as mucl as bankrupt would redueo Hogan’s Interest was paid regularly to Hoult for three years after the gift to the wife. Witness did not obtain legal advice as to the position of a gift between husband and wife. Ho had paid no interest to Hoult since. Ho had sold about 150 sheep to one Osborne. Implements had been sold to various people. This concluded the examination and the meeting adjourned sine die.