MEETING OF CREDITORS

Southland Times, Issue 19510, 9 May 1922, Page 2

MEETING OF CREDITORS

ESTATE OF JAMES HENRY COX. CREDITORS NOT SATISFIED. A meeting of creditors in the estate ofJames Henr/ Cox, farmer, Hedgehopc, was held in the Deputy Official Assignee's Office yesterday afternoon. Bankrupt’s liabilities amounted to £826 10/-, and his assets were nil. The secured creditors were the Southland Farmers’ Cooperative Association, £lB5O, and A. A. Laidlaw, Dunedin, £l5OO. The principal unsecured creditors were the Southland Farmers’ Co-operative Association £550, J. H. Tatters field £33, A. E. Bath £3l, Booth, McDonald & Co. £4O, Invercargill Tourist Company £26, Butt & Co. £26, and A. Peat & Co. £24. Mr Hall-Jonee appeared for the debtor and Mr H. Macalister appeared for the Southland Farmers’ Co-operative Association. The bankrupt stated that he commenced farming about three years ago. He got a farm, consisting of 318 acres, at Hedgehope, from his father. This was subject to a mortgage for £l5OO to A. & A. Laidlaw, of Dunedin, and a second mortgage to the Southland Farmers’ Co.-op. Association securing £lB5O. About a year later he got a further gift of eighteen acres at Tussock Creek from his father, and gave a mortgage to the Bank of New South Wales to secure his current account. At that time he owed the bank about £l5O. He went in for sheep and cattle, buying at. top price, and about a year ago, prices having dropped, he lost heavily. He endeavoured to retrieve his position by putting in crop. The last season he had 150 acres of oats, but only received 2/5 per bushel. This season he had 50 acres in oats. His father had a motor car worth £4OO and told debtor that he could have it if he paid off the remaining instalments amounting to £139. He considered this a good investment and raised a second mortgage of £lOO on the Tussock Creek property to meet the payments. He subsequently gave a bill of sale over all his stock and implements in the expectation that with this security the Farmers’ Co.-op. Association would carry him through. The motor car was burned at Myross Bush. He had it insured in his own name, but the insurance company would not pay out the amount of the policy, £350, because he had not stated that it waa under a bill of sale, ’[he whole of the lose fell upon the debtor and the Southland Farmers’ Co.-operative decided to realise their security and sold his stock and implements, which originally cost from £6OO to £7OO, but were disposed of for £4OO. Debtor decided to protect, his unsecured creditors by giving them a bill of sale over the crop at Hedgehope and informed them of vhat he had done. The Southland Farmers’ Co.-operative stepped into possession and secured the crop. The Bank of New South Wales had executed their power of sale over the Tussock Creek property and sold it with the crop for £2Bl which, he understood, released the bank and the second mortgage. He did not think that the properties had realised their full values, and he considered that he would have been able to carry on had not the Farmers’ Co.-operative refused to see him through. Questioned by Mr Macalister, debtor stated that when he took over the farm from his father he got his stock and plant chiefly through the Farmers’ Co operative Association. He did not give them a bill of eale over stock and plant until July, 1921. He valued the stock and implements on the farm at from £6OO to £7OO. The stock was all there and he could not account for the discrepancy in the realisation. He received notice of the sale and notice to give delivery. He gave delivery of everything but did not attend' the tale. Included in his valuation were nine horses which were valued at £35 each when he gave the security. He could not say what the horses were actually worth. He was not a constant attender at race meetings and had only been at about six meetings since returning from camp. He had no interest whatever in the trotting horse Seaward Spot. He remembered a bay gelding named Dick, a draught gray mare named Dolly, a riding hack named Dolly, a riding hack named Trixie and a chestnut mare named Jean. These were delivered to the Farmera’ Co.-op. Association and had not been substituted by less valuable horses. He gave security over a Massey-Harris 15coulter drill. He did not know where the drill was, but so far as he knew it was at his father’s place. He also gave security over a McCormack reaper and binder which was at his father’s place. The Southland Farmers’ Co.-operative had sold his father’s machine in place of it. Debtor stated that he did not know how long he had been running the car, but thought he got it early in 1921. He had paid about £5O for car repairs in addition to what was owing. He did not know last year when he was running the car that he was insolvent. It was not true that he had an arrangement with the Club Hotel whereby he paid £1 a week to have a room kept for his use when in town. Questioned by Mr Bath, - debtor stated that, he had g ven Mr Bath two cheques, which, however, required his brother’s rignature. The Cxioques. had never been sent back and were still at the farm. He did not remember promising to pay before he took the car from the garage.

To Mr Macalister: He remembered giving cheques to Butts and to Mannings. The cheques were signed by Cox Bros., but had not been paid. Questioned by another creditor debtor stated that the plough he had purchased from him had been sold. He did not remember telling him that it was not sold. Creditors expressed dissatisfaction with the debtors' statements and it- was decided to place the evidence before the Crown Solicitor with a view to prosecution. The meeting then adjourned rine die