BANKRUPT LABOURER.

Taranaki Daily News, 11 March 1924, Page 7

BANKRUPT LABOURER.

FARMING VENTURES FAIL. NO OFFER TO CREDITORS. At a meeting of creditors yesterday, Herbert James Sharroek, a labourer of Te Kiri, attributed his failure to lack of capital to work the land on which he attempted to farm ahd to the failure of crop« 3. The only creditors represented were Messrs Newton King, Ltd., (Mr. J. M. Kidd), and Mr. S. Teed. Bankrupt was present and was .also represented by Mr C. H. Croker. The financial statement of bankrupt showed that there were no assets, and £144 7s fid was owing to unsecured creditors, the deficiency therefore being £144 7s fid. The unsecured creditors ■ were:—J. S. Fox, Oka to, £5; IF. Brenmuhl, New Plymouth, £6; Taranaki Daily News, £7; Taranaki Hospital Board, £9 2s; Bellringer Brothers, New Plymouth, £1 6s; Drs. Fookes. and Milroy, New Plymouth, £ll ifis; Osmond and Sons, Wellington, £4; W. K. Morris, Oakura, £i2s; Teed and Co., New P’ymouth, l'ss; Abram, New Plymouth, 8s fid; J. Walsh, Omata £2 10s; F. Morris, New Plymouth, £l5; Newton King, Ltd., New Plymouth, £212; New Plymouth Borough Council, £l3; Weston and Billing, New Plymouth, £10; R. Large, New Plymmitli, £10; IF. Lobb, New Plymouth, £1 10s; making a total of £144 7s 6d. BANKRUPT’S STATEMENT. In his written statement bankrupt said that in September, 1919, he purchased a farm at Oakura from W. K. Morris. He paid £5OO as a deposit and cash for the stock on the place. He could not get ahead of his debts, and a year later he was forced to get an overdraft up to £lOO from the bank. When the bank pressed him for payment twelve months later, Newton King agreed to pay off the overdraft and the few debts bankrupt owed at the time. Newton King then took a bill of sale over the stock and chattels and also an order over the milk cheques to cover his debt and interest owing to Morris. Under that arrangement bankrupt said he received £7 a month.

In October, *19212, Sharroek exchanged his interest in the farm and stock for a farm at Westown; receiving £4OO in cash which was used in paying off the sum owing to Newton King and the expenses in connection with the exchange. He then had no ready cash, so sought employment with the Taranaki County Council at £1 a day, but owing to continued wet weather he was unable to work full time.

Tn January, 1923, he exchanged his equity in the Westown property with a man named Holder for his equity in a farm at Te Kiri, which was subject to three mortgages. Bankrupt was unable to obtain st'oek to farm the property properly and Holder promised he would find sufficient stock for the purpose. Bankrupt stated that Holder failed to carry out that oral agreement, and he therefore contended that he could not farm the property without the stock. In November, 1923, Newton King, Ltd., obtained, judgment against him for £26, and he agreed to pay the amount off by instalments of £4 a month. He had paid off two instalments when J. S. Fox obtained a judgment summons against him, by which he had to pay £2 a month. That meant that bankrupt had to find £6 a month out of his wages, which was impossible.

The property at Te Kiri had never been legally transferred to him, and he did not know what his position was in regard to the mortgages thereon, as he had been in possession of the property under an agreement for sale and purchase. The farm was sold in February, 1924, and bought in by the frst mortgagee at the estimated value. Bankrupt had shown in the statement of assets the principal and interest owing under the first, second and third mortgages as contingent liabilities.

\’O OFFER TO MAKE.

Bankrupt added that he was now working for the Egmont County Council at 13« a day, but he had no offer to make a.< he had a wife and five children, and his present earnings barely met their requirements. Examined under oath, Sharroek stated that he bought the property at Westown, a house and five acres, in 1921 in exchange with Mr Thomas. There was a mortgage of £BOO on it and he raised a further mortgage of £4OO, of which £392 was paid for expenses, etc., and he received £8 cash. He had too much interest to pay and could not keep going. The creditors present signified that they favoured the discharge of the bankrupt, and the meeting was then adjourned sine die.