FARMER'S BANKRUPTCY.

New Zealand Herald, Volume LXVI, Issue 20324, 3 August 1929, Page 11

FARMER'S BANKRUPTCY.

LARGE PROPERTY DEALS.

LOSS OF £40,000 EQUITY

SALES BY THE MORTGAGEES

Losb of an equity of £<50,000 in properties in the Thames district during 1922 23 was the reason for bankruptcy given by Charles Alfred Hopping, farmer, Hikutaia, whoso creditors wore called together yesterday. As there was not a quorum present, the bankrupt was examined by the acting-oflicial assignee, Mr. V. 11. Crowliurst, and tho proceedings were adjourned sine-die. The schedule. showed debts totalling £385, all owing to unsecured creditors, Book debts, £1206, were expected to produce £SOO. leaving a nominal surplus of £lls.

In a ,w litter statement bankrupt said tli,'it lie went to the Thames district in 1916. lie then had £14.000 in cash, which lie invested in farm properties. In 1922 he. held 510 acres on tho Thames coast, subject to mortgages totalling £4000; 425 acres at Kopu, subject to mortgages totalling £5000; and 150 acre:; at Hikutaia, subject to mortgages totalling £4OOO. At this time he had already sold 1190 acres at Netherton 'tinder agreement for sale and purchase, and under leases with compulsory purchasing clauses, at prices averaging £55 an acre. 'Jhe mortgages on the Netherton property amounted to £24.000, and his equity at the time was worth not less than £40,000. "Owing to the drop in the price of butter-fat to 9d per lb. at this time (lie Netherton tenants could not keep up their payments, and I was therefore unable to meet the interest due on my mortgages," bankrupt 1 said. "The Kopu farm was sold by the mortgagees in December, 1924, and in January, 1525, the Netherton properties were also sold by the mortgagees My equity thercfoie disappeared, and as 1 had no income I was compelled to. transfer the Thames Coast and Hikutaia' farms to the mortgagees in settlement of the moneys owing to them. At this time the Netherton tenants owed mo about £2OOO for rent and interest, and three of thorn subsequently became bankrupt and another abandoned his farm. Since 1925, 1 have been living on a property at Hikutaia owned by my wile. My reason tor filing is that one of my creditors has recently issued a 'judgment summons against me' and has obtained an order for imprisonment." Examined under oath, bankrupt said that he had owned no property since 1925, and had incurred no debts since that time. At present he was working on his wife's property and could make no further offer to his creditors. -

"It is something in the bankrupt's favour (hat he has incurred no debts since 1925," Sir. Crowhurst said. A recommendation was made by the two creditors represented that bankrupt's affairs should be loft to the official assignee to wind up.