CARDIFF BANKRUPTCY

Stratford Evening Post, Issue 29, 10 June 1927, Page 5

CARDIFF BANKRUPTCY

BKOWN BKOS' AFFAIRS.

CREDITORS' MEETING AT ELTHASV3. INSTRUCTIONS TO D.O.A. _ A meeting of tiie creditors of Thomas L- if, Brown, James Brown, Charles Brown, and Alexander Brown, all brothers, fanners, Cardiff was held before the D.0.A., Mr 11. S-' Sage, in the Courthouse, Eltham, on Wednesday. ' Bankrupts were represented by Mr E. S. Rutherford. The financial position as stated wa s as under:— Assets. —165 acres at £35 per acre, £5775; 310 g&tes at £3O per acre,, £9300; live stock on both farms, in eluding horses, £1400; implements, milking machines, milk moneys and sundries, £6OO. Liabilities. *— Secured creditors, principal moneys, £IJT,OS?; accruing interest to date, £3OO. Unsecured creditors, £2501 14s Ud. Unsecured creditors, £2501 14s lid. Surplus of assets over liabilities, £1241 5s Id. Secured creditors. Government Life Insurance Department, £4500: Alfred Davies. Stratford. £1000; State Advances Office. £.092; William Brown, Stratford, £3440; Alfred David, Stratford, £3000; total, £13,032.

Unsecured creditors. Newton King, Ltd., Stratford, £49 3s Id; N-Z. Loan and Mercantile Agency Co., Ltd., Stratford, £79 4s Id; Central Mart. Sturm and Phillips. Stratford, £3; Sanderson and Judd. plumbers, Stratford, £2 ios; Kleeman and Bishop, motor dealers, Stratford. £11; Leslie Berg, motor dealer, Stratford, £5 ss; Webster Bros., seed merchants, New 'Plymouth, £2 8s (id; J. W. Boon, builder. Stratford, £2 7s Cd; Lacy Bros., milking machine dealers, Stratford, £'o 4s 8d; Farmers' Co-op. Organisation, Stratford, £lB 19'fflOd; Drs. Gordon and Gordon, Stratford, CI Is; Bellringer Bros., merchants, Stratford, £5 Gs 3d ; C." C Stanners, Eltham, £l9 4s 4d; N.Z. Dairyman, Wellington, 12s 6d; Geo. Syme and Co.. timber merchants, Stratford. £1 18s lid; Dr. Steven, Stratford, £4 18s; Hugli Hansen. £8 7s 3d;G. L. Front, £2180; 0. R. Abbott, Stratford, £IOO, total £2301 14s lid.

STATEMENT! OF AFFAIRS

In their statement the bankrupts referred to the causes of bankruptcyas the purchase, of a property on Duthie Road at £ll3 per acre (a price which had turned 1 out to be. more than double its " real value), and the falling back on their hands of a property of 310 acres on the Waiugoimoio Road, whereby they lost mortgages amounting), to , £lO,•500. The brothers managed'- !two f . farms of 310 and 165 acres on Waingongoro Road and a third farm of 100 acres on Duthie Road. The 310acre farm -.was leased, in cpnjunctioiij with their father, in 1908 and on. the expiration of the lease in 1915 was purchased at. £l3 10s rev aero! a mortgage of £3200 being arranged, with the Government Life 'lnsurance'' Department. They continued to farm this property until 191!!, when I'aey leased from their father hiaj share in the property at £2 10s per acre and agreed "to take over bis stock and implements for £IOOO- - 1920 the property nnd stock were sold to Mr. R. H. Spencer at £SO per x acre, together with 80 cows and £23 per"" head. The Government Life Insurance Department mortgage was increased to £4500 and the cash (£1300") was devoted to purchase, the Duthie 'Road property. Mr. Spencer paid £2300 in cash and they secured the property by a mortgage for £IOOO and promissory notes for £SOO, taking- no security over the dairy herd. In consequence of the 1922 slump Mr. Spencer was unable to carry on and they were forced,. as an alternative on his bankruptcy to take over the farm and forego their mortgage and promissory notes securing £t 0,501). Mr. Spencer's stock was subject to a bill of sale and they lost recourse against the herd. in July, 1918, they purchased 165 acres at £34 per acre on the W'aingongoro Road, for, winch they paid UIOU cash and the balance was secured by a first mortgage to the State Advances Otuce and a second mortgage for &XSIS to Mr. \ David (owner). Relying on having disposed of the 3UO acres on Waingongoro Road Ho a substantial purchaser, they purchased h-oin Mr. \i. L Prout, in May, 1920, a farm, of 100 acres in Duthie Road, at £l- Li > per acre. For this they paid £2301) ui cash and took over four mortgages totalling £BSOO. HEAVY COSTS.

In July. 1925, they decided it was no use currying on this farm a» they were losing money owing to the heavy cost of maintenance the farm being badly infested with weeds. They put, £4OOO on to this farm, which amount was entirely lost to them in addition to a further £oOO on the herd, due to :i fall m prices and an outbreak of mamnntis. femee ,1925 they had unsuccessfully endeavoured to compromise with the second and their mortgagees in respect of the Duthie Ho ad farm and had eventually been forced, on a creditors' petition, into bankruptcy. Ever since 1920 they had been fiu-mi U2 the AVaingongoro. properties practically for the benefit of the mortgagees of the Duthie Bead farm. conclusion of bankrupts examination the D-O.A. remarked that they were no nearer a solution oi the difficulties presented and invited suggestions from the creditors in attendance. • , , T(. was decided that the D.O-A, be inducted to test t be validity, of the -.purities to William Brown father 0 i (he debtors 1 ! over the stock ami 310 acre farm, provided the secured creditors indemnify him against costs. . ... The meeting then adjourned sine die.