FARMER’S INSOLVENCY

Poverty Bay Herald, Volume LX, Issue 18162, 9 August 1933, Page 11

FARMER’S INSOLVENCY

DEFICIENCY OF'£lo6B MtETING OF CREDITORS " A meeting of creditors in the bankrupt -ggtnti of David Munro McGuire, of Hicli* Bay, dairy farmer, was convened for this afternoon to enable the bankrupt to explain the cause of hid insolvency, but them- tFaa only one creditor present. Ibo Official Assignee, Mr. J. N. Nalder, presided, and Mr. A. A. Whitehead appeared on the bankrupt’s behalf. The creditor present was Mr. W. Graham, who was represented also by Mr. <->• Bradley Smith. The assignee read to the meeting the following statement made by the bankTUpt? I — 1 * " "tf; commenced farming in 1919. 1 had no money of my own, but all the stock was supplied by my former employer, Mr. A. B. Williams. I leased a property at Hicks Bay containing 1632 acre*. Alh the expenses of working this property was found by Mr. A. B. Wiliams, who guaranteed my bank account. Owing to heavy losses from grass fires from 1904 to 1926, I requested Mr. Williams to take over the property. Nothing -was done for some considerable times' but in 1929 Mr. Williams put Mr. Hughes into'the property, and took everything over. Since that date I have earned very little. Having been working my wife’s native land with about 10 cows. I have no assets whatever, arid Have no prospects of paying • Under examination by the assignee the bankrupt, whose statement showed an eetimated deficiency of £IO6B 9s Bd, expltitwl that when he commenced farmng at Hicks Bay he put on 500 breeding •mjjLft- start with, the stock being found Williams, under an arrangement wheMby witness was to pay for it in time. At the same time wituess put 90 J£year-013 heifers on the property, lie, vfaa to pay 32s 6d a head for tho ■beep, and £8 each for the heifers. Witbms bought no further stock for a considerable time. He had kept no records of the working of the farm, and was unable to remember the proceeds of the farm for the first year. 'Hie proceeds of the whole of the stock and; wool sold went through the bank. Witness had made no pdyutents to Mr. Williams in raapect of the stock. Of the 1632 acres which the property contained more than llfelf was in bush, and the 500 sheep and 1 the heifers represented the full carrying capacity of the land at that rtiap: Witness cleared some of tho A nd the most stock the property | carried comprised 1600 sheep and 100 bead of cattle, that being in about 1923. He was unable to say wnat the proceeds if fkie properly in that year amounted io, as the whole of the money went ,broogh the bank. His operations went M without interruption until 1924, witmu having bought more stock from to time. He had purchased and mid for- certain stock from Mr. Morgan Ir-1929, when Mr. A. B. Williams Koolt over, witness had an overdraft with he bank ,of £3OO. Mr. Williams took ace over in about September or r, 1929, and witness’ indebtedness Williams then was about £9300, . ..Ilhams having guaranteed tho acttaat in the bank up to £9OOO. There rerii then about 1400 sheep and about 00 head of'cattle on the property. The and! was leased", from the natives, and be sent was not paid during the last VroiVeaVs. Since witness left the pvopirty ln 1929 he had been milking a few low* at home. The cows belonged to his rife, who had a small section of native lad Witness had no stock or property Mis own.- He.had also been in charge (pm, pooed, hot -the fees were very be doubted whether they would SSkit to £25 a year. ffpnMu' wife had owned a motor ndfe, hot vritaen did not drive it, and Mil BO interest in- it in any way. The rant of £BSO wing ,to Frank M. I riMtone, Limited, Auckland, was for ■•gv Med, as the whole of the property idijip be Mwn. At the time when he idmed the seed be was not working qgb overdraft. He had had only tho m banking account, and all the proSp from the farm went through that getint. Hkcept for £SO when lie had IMI laid up he had drawn nothing for fajLirnnniif-~ttit The rent under the mirwas Is 7d per acre, rllj (Proceeding)