IN BANKRUPTCY

Stratford Evening Post, Volume XXXXII, Issue 26, 26 March 1924, Page 2

IN BANKRUPTCY

DOUGLAS FARMER’S ESTATE. Archibald John ,Brown, farmer, of Douglas, came before the Deputy Official Assignee (Mr J. S. S. Medley) yesterday for examination in bankruptcy'. Brown was adjudicated a bankrupt some weeks ago on the petition of Mr B. J. Kerswell, of Stratford, the largest of the unsecured creditors. There were insufficient creditors present yesterday to form a quorum and the meeting consequently lapsed. The Deputy Official Assignee presided and there were also present the bankrupt, the petitioning creditor (Mr B. J. Kerswell) and Mr H. E. Abraham, representing Newton King Ltd. Mr L. M. Moss appeared for Mr Kerswell and Messrs C. H. Croker and W. E. Jones for the bankrupt, Bankrupt’s statement of his assets and liabilities showed debts owing to unsecured creditors totalling £2410 16s Id, and to secured creditors £sOll 8s 4d. On the credit sidev were stock in trade estimated as being worth £316 10s; book debts £259. hut not expected to yield any return ; shares in the Te Popo Dairy. Factory £10; shares in the Stratford Farmers’ Co-op. on which £143 5s 9d had been paid up and which were now valued at £25; property, valued at £3800; making the total assets £4151 I. leaving a nett deficiency of £3270 14s sd. The unescured creditors were: Michael McDonald, farmer, ,Stratford, £64 7s 6d; B. J. Kerswell, plasterer, Stratford £IO6O ,2s 3d; Nurse K. J. Taylor, Stratford, £650; J. L. Perry, settler, New Plymouth, £235; H. Livingstone, settler, Hawera, £120; Hall i well, Spratt and Thomson, solicitors, Stratford, £67“ 19s 8d; J. Fieldes, farmer, KaTmata, £53 15s; Stratford County Council, £4O; Rutherfurd, Macalister and Coleman, solicitors, Stratford, £6 11s 8d; Commissioner of Taxes, £10; Mrs Emma. Brown. Douglas, £lO3. The secured creditors were H. Cotterill and H. J. Beswiok, solicitors. Christchurch, £2600 (estimated value of security £2600); J. W. Thomas, farmer, care Newton King,- Ltd., Stratford, £895 (nil) ; Dr. D. Steven, Stratford, £1024 (£1209), and Newton King, Ltd, Stratford, ! £492 8s 4d '£3l6 10s). In a written statement Brown sqfid that in 1921 he had a farm at Douglas, on which he was milking 40 cows, and another at Te Popo partly stocked. H© also had £B6O to Ins credit with Newton King Ltd., and he considered himself as being “financial.” The Douglas farm was purchased in June, 1919, at £2O an acre, but to-day was not worth more, he considered, than £l3 an acre. The Te Popo farm was acquired from Mi* J. L. Perry at £24 an acre in 1919. In 1920, h e also purchased another farm (Savage’s) from Mr Fieldes at £2O an acre, selling it later to Mr Gibbs at a slight increase and receiving in cash by way of deposit afl; amount about equal to what had been paid to ("Fieldes. In 1921 a severe illness kept him in the Stratford Hospital for a considerable time.

Business had gone all right until Savage’s farm fell back on his hands 1 as third mortgagee, and subsequently he was forced to take the property over, together with the cattle and other stock ana endeavour to carry it on. To do this he had to pay up considerably) over £SOO in arrears of interest due to Savage and Fieldes and also the rates. Realising later that the proposition was hopeless from his point of view, he arranged for Savage (as first mortgagee) to take the property back, paying £274 as consideration for a release from obligations with respect to the property. The stock on this farm was sold, but he dropped as'much as £lO per head on the cows and £l4 per head on the horses. The Te Popo Dairy Company, owing to a miscalculation, having overpaid him in a previous season some £65, he was called on to refund the amount, which he did. This was another unexpected liability. He also suffered heavily as a result of his stock eating tutu.

Perry’s farm at Te Popo, which he bought at £24 an. acre when land was booming, subsequently, fell back to the first mortgagee, who took the place over at about £lO per acre. When the slump came he considered that Perry’s place was at least £lO an acre too dear and with a view to> getting some reduction he interviewed the second, third and fourth mortgagees. The second and third mortgagees were willing to meet him, but the fourth mortgagee (Mr Kerswell, the petitioning creditor) declined to meet him. Eventually the first mortgagee (Perry) exercised the power of sale and bought the property in at about £lO an acre, which was less than the amount owing under tho first mortgage. Since July last, the statement continued, Newton King, Ltd., who hold stock and other securities from the bankrupt, had been receiving all his factory cheques, allowing him £2O a month in addition to paying certain other outgoings in connection with the Douglas property, which he was still farming. The bankrupt added That he was a married man with five children rarngim- from li'-e t-> fift* l 'n years. During the pas two vears h ri

and three of the children at different times had been in the Stratford Hospital for periods varying from six to 26 weeks. This was a source of great expense, the last hospital account being for £7O. He regretted that he could make no offer to his creditors.

Examined under oath by the Deputy Official Assignee, Brown swore to the truth of his statement. He had an endowment policy in the Government Life Insurance for £2OO, all the premiums being paid up to date. He did not consider that Newton King Ltd., would realise the amount of their bill of sale if they sold him up at the present time. The bankrupt stated that he had not had any partner other than his wile, who had been in Savage’s farm with him.