HIS LIFE’S WORK

Southland Times, Issue 21087, 20 May 1930, Page 8

HIS LIFE’S WORK

ALL FOR NOTHING. BANKRUPT SHEEPFARMER. A BIG DEFICIENCY. (Per United Pres? Association.) Gisborne, May 19-. A surplus of £46,425 in 1921, and bankrupt in 1930 with an estimated deficit of £24,350 was the position revealed to-day at a meeting of-creditors of George Henry Lysnar, solicitor and sheepfarmer, and at the conclusion of the meeting, the Official Assignee suggested that in view of the full statement by bankrupt, no further examination was necessary and the meeting was adjourned sine die. Bankrupt’s financial statement estimated the deficiency at £24,350. Debts due to unsecured creditors' totalled £14,482 and to secured creditors £30,704, the estimated value of securities being £25,000, leaving a deficiency of £5,704. There was also shown a contingent liability of £4,379 covered by William Douglas Lysnar’s guarantee to Mrs L. T. Burnand, and further liabilities totalling £485. In the course of a very detailed statement’, bankrupt mentioned that in March, 1921, his financial position showed assets ,as £100,792 and liabilities £54,547, leaving a surplus of £46,425. In January, 1927, the assets, which comprised freehold lands, station stock, wool, a dairy farm, town property and leasehold lands valued at £92,819 were sold under a forced sale for 4161,055, making a loss of equity totalling £31,754, and his liabilities had increased to £72,100. He attributed his failure to the following causes: (1) Depreciation in the value of wool and meat which had the effect "of lowering the prices of all property and which he attributed to trusts and combines; (2) To Harbour Board litigation which cost him about £5,000.

He prepared- a plan of Gisborne Harbour and when he submitted it to the board, the latter agreed to pay a certain sum under certain conditions. Bankrupt contended that the plan adopted by the board, known as Reynolds’ plan, was practically ;a copy of his (bankrupt’s) plan. The board took a test; case to the Court and “ultimately got out of their liability because they had not called for tenders before making the agreement.” Bankrupt considered that if the board had not acted as it did, he would not be bankrupt to-day. (3) Through arrears in the payment of mortgages, the Supreme Court' sold lands valued at £48,620 for £31,000. The statement concluded as follows: I regret very much having to say I am unable to make any offer to my I also much regret the amount owing by me to my individual creditors, especially my brother W. D. Lysnar, who is wholly unsecured and who has advanced me in cash, including money guaranteed, over £lB,OOO. I cannot help admitting that he has been much too good to me. At the same time, I would like to point but to all my creditors that I have lost all, both money and property. I started life as a boy at the age of 14 with nothing, and am now, after 53 years of pioneering work, winding up with ■ nothing” ;