Sharemilker Meets Creditors In Bankruptcy

Northern Advocate, 9 February 1940, Page 2

Sharemilker Meets Creditors In Bankruptcy

Showing a deficiency of £451 6/3, Errol Malcolm, a sharemilker, of Kauri, met his creditors in bankruptcy before the official assignee. Mr. T. P. Pain, at Whaugarci yesterday. Malcolm was represented by Mr. E. A. Harrison, instructed by Messrs. Webb and Ross. To unsecured creditors £623 was owing, and to secured creditors £6B 12/-. ‘ . , . Assets were shown at £172. incliu.ing furniture £lO. Malcolm, in his statement, said ho was manned with seven children, the youngest aged two. For many years he had been sharemilking in the King Country. Waikato and Northland. Owing to mammitis and other diseases a Mangawai "herd in the flush of the season was 102, whereas the agreement provided for 130. He estimated that during the live months he was working at Mangawai his receipts were £4BB and his losses amounted to £2BO. his personal drawings in the period being only £53.''7. 2. promise of contract work to himself and two adult milkers was a strong inducement to him entering into a sharemiiking agreement on a Kauri farm. This contract work did not materialise. however. Herd Output Less. He also stated that the herd did not approach the output mentioned by the farmer. | His ergs.-; receipts to the end of Daj comber totalled £253. and the £59 ! profit for the six months had been ex- | pended in household and other expenses. Had the herd reached the standard indicated and had. he received contract work in the off season he would have had sufficient money to meet ail his liabilities, particularly Those incurred in and about Whangarei. Questioned regarding his payment in fuli of £2O owing to his brother-in-law. a few days after his decision to file in bankruptcy, Malcolm said he had dene this because his relative had helped him in the past. He had to ’ook forward to providing a roof for his family in future. Could Make No Offer. His sharemilking agreement at Kauri had been terminated, but he had prospects of employment in Hikurangi mine. Pie could not make any offer to his creditors. An account of £52 contracted with a Whangarei drapery firm came under review. Malcolm said he hoped to allocate about £2O of his calf money to that. A creditor: “That is about on a level with your other transactions, getting £SO credit with a prospect of repaying £20.” Fiush production on a paspalum farm could be expected in January, Malcolm claimed in support of his opinion that until ‘ Christmas his financial expectations were good. No Action Taken. Credit had been obtained by Malcolm in Whangarei on the grounds that he was to be credited-with a £6O bonus from Mangawai, whereas this had already been assigned to a storekeeper there, another creditor believed. s By resolution it was decided to take no action towards setting aside as a fraudulent preference the £2O paid by Malcolm to his brother-in-law. Malcolm was requested by the assignee to prepare statements showing his general expenditure and receipts from pigs during his period at Kauri.