BANKRUPT FARMER

New Zealand Herald, Volume LXX, Issue 21493, 17 May 1933, Page 14

BANKRUPT FARMER

STATEMENT OF POSITION MANY UNSECURED CREDITORS MORE INFORMATION WANTED [FROM OUR OWN CORRESPONDENT] TE AWAMUTU, Tuesduy A meeting of creditors of William Taylor, farmer, of Pualiue, a bankrupt whoso unsecured creditors comprised several dozen business people of the To Awnmutu district, with claims aggregating about £BOO, was hold at To Awamutu to-day. Bankrupt's counsel explained that bankrupt was in tho Waikato Hospital seriously ill. Bankrupt's statement was presented. It showed that he took up an abandoned farm of 273 acres, Crpwn leasehold, at Puahue, in 1922. At that time the capital value was £2OOO, and tho annual rental £9O; improvements were valued at £350. Taylor had £SOO capital, and later obtained a Crown loan of £3OO for improvements. In 1924 a revaluation reduced tho capital valuo to £ll2O, with an annual rental of £SO Bs. He enlarged the house, and in 1928 increased tho herd to 40 cows. At that time he had 90 acres in grass. His wife became ill and had to undergo lengthy hospital treatment. As a result of a recurrence of the effects of war injuries he secured a pension of 10s a week, which was' later reduced to 7s 6d and made permanent, continued the statement. In 1931 he owed about £4OO for general debts and borrowed £4OO from his father, in Auckland. Next season, a very dry one, the stock did not do well, and Taylor went back about £2OO. Thero were now 140 acres in grass, and the farm was valued at £9 r ) an aero for the grassland and £1 10s for the unimproved. Bankrupt's total indebtedness to the Crown was stated to be £1415 13s 3d, and he paid 25 per cent of his cream cheques as interest and redemption. Hi,s father had advanced him £2070 in all, and this had all gone into the farm, his father holding a second mortgage. Over £825 was owed in general debts, of which £63 lis 9d was secured on the milking machines. Bankrupt's estimate of income for the present season was £570, v and outgoings £397. Creditors to-day wanted fuller information, and it was stated on bankrupt's behalf that tho father's mortgage, although signed some time earlier, was registered at the time of tho creditors' meeting a few weeks ago.

The deputy-official assignee, Mr. W. Roberts, said he wanted bankrupt to explain his household expenses of nearly £4OO a year. For a farmer, that seemed an abnormal figure in these times, and creditors were entitled to information on that score.

It was decided to investigate the circumstances of the father's advances, and tho official assignee was asked to arrange for the carrying-on of the farm in the meantime.