A BIG DEFICIENCY

Nelson Evening Mail, Volume LXIV, 5 August 1931, Page 5

A BIG DEFICIENCY

FARMER AND WOOLBROKER’S ESTATE BANKRUPTCY PROCEEDINGS (Bv Telegraph—Press Association) CHRISTCHURCH, This Day. A deficiency of £13,991 was disclosed in the bankrupt estate of Washington Irving Carney, a farmer and woolbroker, who met his creditors to day. The financial statement showed the amount owing to unsecured creditors as £9658, and secured creditors at £20,132. Securities were shown at £14,019. Carney attributed his position to the slump m wool. Bankrupt said he had been engaged in wool brokerage since 1925, working on. commission and on account. Until the season 1928-29 he was making a net income of £3OOO and upwards. Anticipating that favourable conditions would continue he bought a farm at Omihi giving a mortgage of £SOOO. He had not made any profits from the farm, though ho spent £BOOO on improvements, etc. In the 1929 30 season he lost money in wool broking, and in 1930 31 the price of wool and farm products began to fall. He did everything possible to reduce expenses, but certain creditors began to demand payment and the second mortgagee threatened to sell the farm, and just within the past few days had done so. He had failed to get financial aid from America or Australia, “The whole cause of mv trouble is due to my thinking the good conditions of 1925-28 would continue, and to the general slump.” After the creditors had voiced criticism regarding bankrupt and his wife’s living expenditure, the Official Assignee said that it was his duty to condemn in the strongest possible terms a lot of the extravagance which had been a contributing cause of the bankruptcy. A committee was set up to assist the assignee in the disposal of the assets. The Official Assignee said that in one year bankrupt’s and his wife’s personal expenditure was £2340.