Failure of Opiki Fanner

Manawatu Times, Volume LVI, Issue 7107, 16 March 1933, Page 4

Failure of Opiki Fanner

STATEMENT SHOWS HEAVY DEFICIT A series of seasonal set-backs and falling prices wero given by James Anthony Persson, fanner, of Opiki, as the reasons for his failure at a mooting of creditors on Tuesday afternoon. The meeting took place before the Deputy-Official Assignee, Mr. C. E. Dernpsy. There woro present Messrs. C. B. Walker (Kangitane Farm Co.), F. J. ltamsay (Horowhonua Power Board), and C. Pearson (New Zealand Loan and Mercantile Agency Co., Ltd). Bankrupt was not represented by a solicitor. In his written statement, bankrupt said ho purchased approximately five acres of land in Boundary road in order to engago in poultry farming, the cost being £2500. Ho paid £SOO cash and applied to the Commissioner of Crown Lands for a loan of £2OOO, which was granted, and received the loan on January 14, .1920. Ho purchased 500 fowls and a few cows, erected poultry houses, purchased incubators and brooders and generally improved the land. He did most of this in anticipation of receiving certain commissions that wore due when he was in the land business and which were due to he payable about December, 1910, but owing to the slump in the price of land, theso did not materialise, and so he was forced to look for more capital. lie was refused a loan of £2OO Ida' the local branch of the Itepntriation Department and applied to the. Commissioner of Crown Lands for a further advance of £2OO, which was granted. in August, 1922, the department taking a second mortgage over the land, together with collateral security over the stock. Bankrupt could not make his anticipated living because (a) through the severe weather he lost all his chickens, and the poultry business proved a failure; (b) the glasshouses were so badly built as to be useless for growing tomatoes as ho expected; (c) the orchard trees had been so that he could not free them from blight and could market no fruit. Subsequently bankrupt commenced business as a dairyman and bought additional cows. Finding the area of land too small, he leased an adjoining piece at a very high rent. In March, 1920, the Government took part of his land for railway purposes and cut all liis shelter trees so that ho had to erect sheds at a cost of £IOO. Ho received only £l5O compensation, although he applied for £575 and the amount received was paid to tho Commissioner of Crown Lands in reduction of arrears. Tho land taken was 2 roods 29 porches and only £lO2 was allowed for it, whereas be bad bought it at £SOO per acre. As ho could not make the property pay he leased it, but owing to tho cessation of work on tho railway, the tenant left, owing a considerable sum for rent and so tho mortgagee excerciscd his power of sale, allowing bankrupt to Tetnin the stock, but charging him with the deficiency on tho realisation secured by bill of sale. Bankrupt then leased 42 acres on. Eangitikci line for two years, paying him £3OO a year and the full rent. IVhon short of milk for his run he had to purchase it from other vendors, and when he had a surplus he supplied it to the dairy factory, whose cheques went to tho Government. Ho thon purchased Si acres at Opiki from the Kangitane Farm Co., Ltd., paying 5 per cent, down and the balance was owed under an agreement of sale and purchase. He had sold all his pigs, hay and other articles so that ho could purchase a house, which he removed to the Opiki property. After three months prices dropped at the rato of about £250 a year, leaving him with insufficient money to put things in working order. Bad iuek seemed to havo come his way since his Boundary road occupation, and ho had endeavoured to avoid bankruptcy, but some of his creditors would not wait and ho had no alternative but to file. Ho had absolutely nothing, all his stock and chattels being under mortgage to the Crown and the property to tho Kangitane Farm Company.

The statement of finances showed a deficit of £1275 7s. Book debts valued at £94 17s 4d wore estimated to produco £25. Debts to unsecured creditors totalled £172 19s 7d, and tho debts to secured creditors were £357G 0s 4d, and tho estimated value of the security was £2520, leaving a deficit of £1056 0s 4d. Other liabilities aggregated £7l 7s lid. Tho total debts were £I3OO 7s JOd. Tho chief unsecured creditors were Dalgety and Co., Ltd. (Palmerston North), £26 10s 4d; Horowhenua Power Board, £22 3s 9d; Mounsey’s, Ltd., £l2 16s; S. Bambery Estate, £l2 10s; Collinson and Sons, Ltd. (Palmerston North), £ll 14s lOd.

The chief unsecured creditors were the Rangitano Farm Company, Wellington, estimated value of the security £2185 and value of debt £3048 6s 9d; Ford Motors (Manawalu), Ltd., £45 and £42 17s 4d respectively; Commissioner of Crown Lands, £3OO and £394 16s 3d respectively. The liabilities against the property were £2l 12s lid, due to tho Horowhenua Power Board, £4l 5s lid to the Laud and Income Tax Department, and £44 19s Id rates to the Makerua Drainage Board.

■The D.O.A. stated that he had no questions to ask. To Mr. Walker, bankrupt said he had not kept a detailed record of payments during the past year as lio Had not expected to go bankrupt. The sum of £9 paid to the Midland Brewery was for horse grain. Ho had been running his milk round at a loss all the winter. He thoroughly understood farming, but it was ‘“like bad luck chasing him.” To the D.0.A., he stated that wine purchased had been for medicinal purposes. The house belonged to the Rangitano Farm Company and the furniture had always belonged to his -wife. Ford Motors had taken possession of the motor-car.

To Mr. Ramsay, the D.O.A. said that tho electric power should be cut off the property. To Mr. Walker, bankrupt said Tie accounted for the big deficiency by the drop in milk prices. Mr. Walker said that many farmers were standing up to their obligations in an amazing manner. "One wondors how you could not keep clear,” lie said. Two and three-quarter years’ free occupation of land was very sub-

stantial. “The land company have been too good and should have put you off the laud 12 months ago.” There was no further questioning and the meeting adjourned siuo die.