BANKRUPT FARMER

Southland Times, Issue 20201, 11 June 1927, Page 11

BANKRUPT FARMER

A BIG DEFICIT. ESTATE TO BE WOUND UP. (Per United Press Association.) Dannevirke, June 10. When the creditors in the estate of Thomas Montgomery Webb, farmer and commission agent, of Dannevirke, met in May last, it appeared as if bankrupt who showed a substantial deficit to unsecured creditors, had gone back to the extent of £20,000 in about eight years. They desired to know where it had vanished and authorised the employment of an accountant to make an investigation on their behalf. This was done .and the report submitted at another meeting of creditors to-day. Commenting upon the position, the. Deputy Official Assignee, Mr A. J. C. Runciman, said that so far as he could see, in 1919-1920 Webb made an exceptional income and it. appeared in that year was very extravagant in his expenditure and probably was entitled to be as he was apparently at that time perfectly solvent. Unfortunately he spent a very considerable sum in investments which had proved practically worthless. That was where the trouble had arisen during the succeeding years. Perhaps some items of expenditure might have been questioned, but he understood that during that period Mr Webb was endeavouring to pull off one or two deals which, if they had come off, would have put him right, and under the circumstances Mr Webb thought it necessary to expend a good sum of money. During 1919-20 Mr Webb could have paid his creditors and did pay them, but had been unfortunate in his investments and during the last four or five years, the farm had not been a payable proposition by any means. The statement submitted by the accountant could be considered satisfactory to the creditors and to bankrupt. At first glance it seemed inexplicable that a large amount of money should disappear but the statement as submitted to the creditors had shown where the money went. A Creditor: Where had it disappeared? I cannot see where it went too! Steps are to be taken to wind up the estate in the usual manner.