MEETING OF CREDITORS

Southland Times, Issue 19172, 16 February 1924, Page 8

MEETING OF CREDITORS

A FARMER’S FAILURE. A meeting of creditors in the bankrupt estate of Matthew Corbett Davidson of Awarua Plains fanner, was held yesterday at the office of the Deputy-Official Assignee, Mr C. B. Rout. The amount owing to unsecured creditors was £795 18/1, and to secured creditors £2476 and the estimated value of the security was £3745. The total debts were £758 18/1, and the total assets £l4lO 18/6, leaving an apparent surplus of £652 0/6. The principal unsecured creditors were T. Hall, storekeeper, Woodend, £54; J. McKenzie, storekeeper, Riversdale, £27; J. G. Ward and Co., Ltd., Invercargill, £3O; Mitchell and Broughton, Invercargill, £76 15/7; Southland Farmers’ Co-op. £l6. The principal secured creditors were Robert Officer, retired farmer, £950; National Bank of N.Z. £1200; Mrs M. Molloy, jnr., £75; National Mortgage £251. Bankrupt in his statement said: “I have been farming in Southland for about 18 years and prior to 1915 I had a leasehold property at Wendon, but owing to the state of my wife’s health I disposed of that property and bought a smaller place at Awarua Plains. I had about £lOOO in cash and with my wife had an equity in the Wendon property of £2OOO. My first difficulty was when the purchaser of the Wendon property went to the war and sold his interest to parties who were not able to carry cn. The property changed hands twice, but eventually came back to me loaded with back debt, rates and taxes. Mr loss was about £5OO on the sale and re-sale of the Wendon property. I had about 100 head of cattle when prices fell in 1921 and shipped some 20 of them direct to England, receiving about £1 per head for them. The others sold for very little and I estimate my loss on the cattle at about £5OO. My wife’s health did not Laprove and her illness prevented me from giving the attention to my property I would otherwise have given. My health broke down and when I was laid up four head of cattle were removed from my place at Awarua Plains and 7 died. I was working along as best I could and making an effort to pay my debts without incurring others when several of my creditors sued me and obtained judgment against me. In September of last year there was a fire on the property at Wendon which burned three stacks of dogtail grass valued at about £5OO, belonging to me. The fire started on the adjoining property and the circumstances were such that if I had had the ready money I would have taken action against the owner of the property where the fire started. Last October I made an application for a loan to the State Advances Department and believed, and still believe, that if the advance had been granted I could have managed to pull round and pay my creditors. I had a mortgage of £BOO on the Awarua Plains property and was unable to meet the interest payments as they came due and last December the mortgagees served a notice of intention to call up the principal sum unless payment was made within seven days. I could not arrange for payment and decided that in the interests of all my creditors the proper course for me to take was to file my petition in bankruptcy. My wife had an interest in the Wendon property. having put ,£5OO of her own money into the place. The meeting was adjourned indefinitely, pending certain investigations.