FARMER'S BANKRUPTCY.

New Zealand Herald, Volume LXIV, Issue 19660, 11 June 1927, Page 14

FARMER'S BANKRUPTCY.

. INQUIRY INTO TRANSACTIONS. , SOME WORTHLESS INVESTMENTS A SATISFACTORY EXPLANATION. 1 [BY TELEGRAPH. —PRESS ASSOCIATION'.] i DANNEVIRKE, Friday. i When creditors in the estate of Thomas 9 Montgomery Webb, farmer and commis--1 sion agent, Dannevirke, met last month it appeared as if bankrupt, who showed a - substantial amount owing to unsecured i creditors, had gone back to the extent of ; £20,000 in about eight years. They der sired to know where the money had van- , ished, and authorised the employment of an accountant to make an investigation on their behalf. This was done, and a > report was submitted at another meeting 3 of creditors to-day. Commenting upon the position, the t deputy-official assignee, Mr. A. J. C. • Runciman, said so far as ho could see, in i 1919-20 Webb made an exceptional income 3 and it appeared in that year he was very - extravagant in his expenditure. Probably ■ he was entitled to be, as he was appar- ' ently at that time perfectly solvent. Un- > fortunately, he spent a very considerable 1 sum in investments which had proved practically worthless. That was where the trouble had arisen. During succeeding years perhaps some items of expenditure might have been questioned, but Mr. Runciman understood that during that period Mr. Webb was endeavouring to pull off one or two deals which if they had been completed would have put him right. Under tho circumstances bank--1 rupt thought it necessary to expend a good sum of money. During j 1919-20 he could have paid his creditors and did pay them, but had been unfortunate in his investments and during the last four or five years the farm had not been a payable proposition by any means, j The statement submitted by the accountant should be considered satisfactory to the creditors and to bankrupt. At first glance it seemed inexplicable that such a large amount of money should disappear, but tho statement submitted to the creditors had shown where the money went. Steps are to be taken to wind up the estate in the usual manner.