BANKRUPTCY.

New Zealand Herald, Volume XXXII, Issue 9775, 23 March 1895, Page 3

BANKRUPTCY.

, THE KERMADEC SETTLEMENT. Yksterday Honry Kinnaird Hovoll, of Dcvouport, made a sworn statement before Mr. J. Lawson, Official Assignee, in which ho states that lie has been employed as a licensed surveyor for about 18 years, mainly in native survey work. About four years ago he took up a lease of 1700 acres of land on Sunday Island (Kormadecs), which had been represented to him as rich volcanic soil, He did nob see the land before the lease was prepared and executed, relying entirely upon the representations mentioned. The term of lease was a tenure in perpetuity at a rental of £37 10s per year. Before leaving for the island he arranged to reserve 500 acres for himself, apportioning the balance to settlers who were to accompany him. In the meantime, a considerable amount was spent in preparation, Both by himself and the settlers. On October 13, 1890, he and the settlers (20 in all) landed on Sunday Island to find that the representations as to its capabilities had been grossly exaggerated. Nevertheless, an effort was made to utilise ib and they struggled on in a hopeless way for about 18 months, when the settlement was abandoned and those who could do so returned to New Zealand. Bankrupt lost £850 by this transaction, apart from the losses of Bottlers. On his return the bankrupt resumed his practice as a surveyor and has since paid his way. He accounted for his present indebtedness (£SBO 19s 4d) in the following way :—£3so lost on a schooner purchased for the Island trade, £120 in connection with a loan for pare purchase money for same schooner, £lj4 19s 4d for legal expenses in sundry matters, £8 for rates, etc., £9|for wages of chainman, and £1 for household necessaries. The assets consist of : Book debts, £398, estimated to produce £250 ; cash in hand, £1 10s : total, £251 10s. Deficiency, £299 9s 4d. The immediate cause of filing was the action of one of the creditors getting judgment for £100. He consulted with the other creditors to effeco a compromise bub failed. Having no other moans than those stated ha could nob see his way to suggest any compromise with the creditors.