BROTHERS BANKRUPT

Northern Advocate, 25 July 1935, Page 3

BROTHERS BANKRUPT

BAY OF ISLANDS FARM ONLY ONE CREDITOR. EXAMINATION BY ASSIGNEE, Two brothers were examined separately in bankruptcy by the Official Assignee, Mr A. J. Ching, at the Whangarei Courthouse. There was only one creditor. Harold Harris King ■ (Mr Pickmere). a farmer, at present residing atTVlotuKiore Island, was examined yesterday afternoon, his statement showing a deficiency of £772 2/6. In a written statement he said,that he and his brother bought about 1300 acres at Manawaora, Bay of Islands, in 1928. The mortgages on the property were a first mortgage of £ISOO to the Public Trustee, and bankrupt and his brother gave a second mortgage to the vendor of the property for £5952 19/. The price paid for the farm was excessive, being about double its real value and they never had a chance of making good. Death of Vendor. Shortly after the purchase, the vendor died and left the mortgage to the petitioning creditor. Being unable to make any arrangement with the second mortgagee for the reduction of the mortgage or a reduction of the interest rate; default was made, and the second mortgagee sold through the Registrar of the Supreme Court and bought in the property herself at a figure which left a balance of about £7OO owing by bankrupt and his brother for arrears of interest and costs of sale, and this was the debt upon which he had been made bankrupt.

Bankrupt said he could make no offer, and, in reply to a question, said that his father had not helped him in any way while he was at Manawaora. About £7OO in improvements had been effected to the property. The examination was adjourned. His brother, Rupert Trieve King (Mr Logan), a farmer of Awanui, was examined this morning and showed a deficiency of £IOOO with no assets. In his statement he said that in 1920 he took up the Manawaora farm in partnership with his brother. Improvement to Property. Between them they put in £ISOO in cash towards the purchase of the property and -there was a large mortgage taken on also. His brother kept all the books.

They were sued jointly for approximately £7OO arrears and judgment obtained against them in 1928, and with interest accrued now stood at about £IOOO.

Bankrupt was questioned as to some money he had received from his father and also from his mother’s estate. Some of the moriey from his father had been spent on living expenses, while a farm his wife owned was being brought into production. The money from his mother’s estate was small in quantity and ceased to come to him on bankruptcy. / Mr Logan said it was a case of buying a farm at a high value. He was of the opinion that the sole creditor had not lost much as she had receivtha deposit and the farm back plus improvements. The examination was adjourned, and the Assignee will make further investigation into the position.