IN BANKRUPTCY

Southland Times, Issue 20538, 14 July 1928, Page 3

IN BANKRUPTCY

A FARMER’S FAILURE. VICTIM OF THE SLUMP. A meeting of creditors in the bankrupt estate of Walter Mallard Smith, a farmer of Oreti, was held yesterday afternoon, when the Official Assignee (Mr J. M. Adam) presided. The following creditors were present; Messrs George W. Cowan (represented by Mr A. M. Macdonald), Barker and Barnett (Mr H. Macalister) and the National Mortgage and Agency Co. (Mr A. P. McGrath), whose claims amounted to £4871 18/6, £794 3/11 and £4O 7/3 respectively. Mr B. Hewitt appeared for debtor. In his statement bankrupt stated that he was living on his wife’s property. There were five children, whose ages ranged from five years to 19 years, living at home. He stated that his life was not insured and that he was not able to work. He could not say how much the farms cost him in 1903 although he thought it cost him £7 10/- per acre. That was now sold along with what was bought in 1917. There was a mortgage on the farm of £l3OO, that being first mortgage. He gave £24 per acre for the property in 1917 which was a narrow section of flat ground. He thought the Government valuation was about £ll per acre, but was not sure. He sold the 500 acres at a profit, all the profits going into his own account and not into his wife’s account. His wife lent him money and he never held the Forest vale property nor any stock on it. He kept up to about 1000 sheep which he bought at Cowan’s sale for 45/-, selling them the following year for 10/-. His wife advanced him the money about the slump period in 1922, paying it into his account at the bank. His wife lent him £lOOO, his brother Harry Smith advancing him about £lOOO in 1926 or thereabouts. His brother’s advance was put through his bank account. His wife took the mortgage over in 1920 or 1923. His brother never had any security and he was given the sheep to square the account, the sheep being on the Oreti and Kauana property. The Forestvale property was sold at a loss of £12,000 of which £5OO had been paid, leaving an amount of about £7OO still due. He was not able to do anything for his creditors. His wife possessed the property at Oreti on which 300 sheep were kept, this being the first lot of sheep she had had on the property. His wife lent him the money in 1922 or 1923 and he gave her the mortgage when the money was advanced. He was not separated from his wife and was on perfectly good terms with her. His wife decided to sell up the home and accordingly did so as she wanted her money, bankrupt supposed. She did not get it. He did not offer any objection to his wife selling up the property, but the sale was not made with his consent. He had nothing to pay the rates which were due in February, 1927. He sold his motor car for £2BO odd in April, 1928. The property was sold for about £l2 per acre and he did not agree that it was sold at an under value. His wife had not demanded any payment from him although she asked if he could pay her the money or the interest on it. Her solicitor sent him a demand for the money. He supposed that the equity in the property was out of the reach of his creditors. His wife originally advanced him £lOOO and the balance was made up of interest. The advance of £lOOO was made by his brother in about 1926. Bankrupt gave him 755 sheep, they being all he had. He had to draw on the War Bonds. The amount of £250 paid into his account on October 10, 1927, was the amount for the War Bonds. He did not give security to any of the firms over his stock at any time.

Cross-examined by Mr Macdonald, bankrupt stated that he sent in his sheep returns each year. He kept only ewes. He never had 1500 sheep in any year. The number of sheep in excess of about 900 ewes were sold through some of the firms. There were about 300 sheep on the Kauana property and about 20 head of cattle. At the present time bankrupt was doing nothing. It was decided to adjourn the meeting to allow the Official Assignee to look into bankrupt’s affairs.