FARMER'S BANKRUPTCY.

New Zealand Herald, Volume LV, Issue 16850, 15 May 1918, Page 9

FARMER'S BANKRUPTCY.

WIFE TO REIMBURSE CREDITORS.

The first meeting of creditors in the bankrupt estate of Henry Gailey, farmer, of Ongarue, was held yesterday, the official assignee, Mr. W. S. Fisher, presiding. Mr. Fisher said that Gailey was adjudicated a bankrupt at the end of April, but had furnished no information regarding his affairs until yesterday. Consequently, only a rough schedule had been prepared. Bankrupt s schedule showed that he owes £2185 18s 6d to unsecured creditors, and £5500 to secured creditors. He estimates tne value of the securities at £11,400, leaving a nominal surplus of £5300. Bankrupt has stock at Ohura valued at £385, making, with the nominal surplus ot ilbaOO, the total assets £baßs. There is trius a nominal surplus of £4099 Is 6d. *

Mr. Black represented Messrs. Petley and Elliston, and Mr. Russell represented Dalgety and Company, Limited. Bankrupt stated that 11 years ago, with a capital of £4uo, he took up a Maori lease of 1187 acres at Otang.wai. Two years later 480 acres were sold for about i>s& an acre. The remainder of the land was mortgaged for £1400. In 1911, he took up a 7yo-acre native lease, and Mrs. Gailey took up 388 acres about eight miles from the old place. In 1916, bankrupt exchanged the Otangiwai property for one at Henley, and the mortgage was" paid off. The mortgage on the present properties had accrued during the last three years, on account of stock and implements. Bankrupt attributed his present position to his failure last year. He felled 400 acres of bush, sowed grass, and stocked up with 1700 lambs. Of these 300 or 400 were lost. He also put on 200 head of cattle, and lost 106. He estimated his loss from these two causes at nearly £1000.- Money then became scarce, and in February last Dalgety and Company sued for their account, forcin" bankrupt to file. Bankrupt was questioned regarding the transfer of a number of stock to his wife. In reply to a question, Mrs. Gailey said she was prepared to guarantee payment of the creditors' claims, provided she was allowed a reasonable time. This was agreed to, and the meeting was adjourned sine die. j