LOST FORTUNE

New Zealand Herald, Volume LXX, Issue 21546, 18 July 1933, Page 6

LOST FORTUNE

BANKRUPT'S £35,000 NOW A OABUAL LABOURER NEARLV £4OOO FOR HONEYMOON How. a young man lost an nnce of £35,000 was related in the Bankruptcy Court in Melbourne recently. The bankrupt was John Desmond Topp, of Malvern, who Baid that ho was now working as a casual labourer in a wool store of which he had onco been part owner. The examination was held before the deputyregistrar in bankruptcy (Mr. J. T. Koaney). The report of the official receiver, Mr. W. H. Loughrey, stated that Topp's estate was sequestered in October last on the petition of a creditor, the liabilities being given at £3406 13s. There were no assets. In 1924 Topp became entitled to an inheritance of £35,000 from the estate of his grandfather, Mr. John Goodall. Topp had said that most of his liabilities were incurred in expectation of receipt of incomo from the settlement, which, however, had fallen considerably and left him without means to pay. In the course of his examination, Topp said that he went to the war in 1915, and on his return ho worked as a jackaroo on stations. Ho learned of his inheritance in 1924, when he was aged 26 years, and ho married in the following year. He went with his wife on a honeymoon trip to England, and spent nearly £4OOO. He was away from

Australia for 12 months, and when he returned ho bought a property of 2200 _ acres at Nagambie for about £14,500. Ho thought that ho paid too much for tho property. The Grandfather's Will Tho bankrupt said that his grandfather's will had stipulated that when he' reached tho ago of 21 years and until ho was aged 26 years he should receive an income of £lO a week from

the estate. The will provided that he should receive his inheritance when he attained tho age of 26 years. He had previously got into financial difficulties, and on the advice of a solicitor he had drawn up a trust deed to protect his interest in his grandfather's ostato. He was to receive only tho income from the ostato until ho was aged 40 yoars. Later, Topp said, he revolted that provision, so that ho might obtain £6OOO from tho trustee company to enter into a partnership !n a woolbroking business. Ho did not know how tho original trust deed had been revoked in that way. Tho trustee company gavo him £3500 from tho corpus of tho estate for a deposit on the Nagambie property, which was for grazing. After having worked the property for three yoars, Topp «aid he sold it for the price that he hnd'paid for it, but the purchaser did not go on with the deal and forfeited a deposit of £2OOO. The proporty than became part of the corpus of his inheritance. When he bought the property at Nagambie wool was worth 2s 6d a lb. He paid £6 10s an acre for the land, but now it was probably not worth more than £4 an acre.

The Official llecoiver: Were your expenses heavy? Topp: Perhaps my expenses were not entirely justified. 1 think that I lived rather extravagantly. L Unpleasant Story

In 1920, Topp continued, he invested £2500 in a woolbroking business with Mr. Fraser, who contributed £3OOO. Fraser drew £7 a week from the business, but Topp received no salary. They lost everything through the collapse of tho wool market. Ho also invested £6OOO in a property in Riverina. "It is a long and unpleasant story," Topp said. "At Melbourne Grammar School I was very friendly with Ronald McCallum, and wo wont to tho war together. I had no parents, and wont to live' with tho McCallumß. Ronald and I went for a trip to England together. Ronald told me that his brothers wanted to buy a property at Narrandera, New South Wales, and he asked mo to help them. I agreed to 'contribute £3OOO. The property was Eubalong Station. Subsequently Ronald told mo that more money was wanted, and I agreed to increase my contribution to £6OOO. Two of tho McCallum brothers were to put in £2OOO 6ach and a brother-in-law was to invest a similar amount. I was to have a halfinterest in tho station." The Official Receiver: How did tb« venture turn out?

Topp: I have had difficulty in getting particulars about it. I was given an unstamped receipt for £6OOO, and I understand that it was not worth the paper that it was written on. The MnCallums sold the property, but the purchaser fell behind in his payments and then gavs them another property in roturn. 1 have written to the McCallums, but I have not received a reply. Lesson oi Experience "If I had had tho experience which 1 have had since I would havo been more careful with my money," Topp replied to other questions. "It was not my intention to tie up my estate so that I would not have to pay my debts. The trustees say that I have lost all my interest in the estate, and that the income from it will now be paid to my wife. There is £3600, which. I think, should be used for the benefit, of creditors. I would be quite willing to pay that, even if I had to assign my interest. The object of tying up my inheritance was to protect it from myself. That was the advice given me by a solicitor."

The Official Receiver: What are you doing now? Topp: I am working as a casual hand, but I hope to get full-time work in a week or two. The wage is £3 3s 9d a week.