LAND DEAL THAT FAILED

Taranaki Daily News, 1 February 1927, Page 11

LAND DEAL THAT FAILED

EX-TARANAK.I FARMER SLUMP CAUSES BANKRUPTCY. SUBSTANTIAL SUMS INVOLVED. When a meeting of creditors of Charles Burdon Buxton, a farmer, of Wellington, and formerly of Taranaki, was called just before Christmas, it lapsed for want of a quorum. On Frlday a further meeting was called by the Official Assignee (Mr. 8. Tansley), but it again lapsed. The amount owing to unsecured creditors was shown at £437 0s (id. The unsecured creditors are: Newton King, stock agent, of Stratford, £397 8s lid, and T. Horton, Ltd., nurserymen, of Hastings, £39 Ils 7d. The secured creditors were Sylvanus Herrick. Lower Moutcre, Nelson, £4000; Pharyzn’e Trustees, London, £15,350; T. Shuilcr Weston, Wellington, £2000; Public Trustee, Wellington, about £1500; Hargreaves Estate, Auckland, about £14,000; Mrs. E. E. Farley, Lower Moutere, Nelson, £234. The total estimated value of securities is £37,084. BANKRUPT'S STATEMENT. In his statement the bankrupt said that he attributed his position to having had his capital, to the extent of approximately £30,000, invested in farm lands when tho 1920-21 slump occurred, and having transferred a country property many years ago to another man subject to an outstanding first charge to the Public Trust Office. For a number of years prior to 1918 he had been buying country lands in the Taranaki and Auckland districts, farming and improving them, and then disposing of the properties. Many places that passed through his hands had proved to be splendid properties, and were now turning out considerable quantities of produce. In 1918 the properties and mortgages he held were valued for trustee purposes at prices showing him to have over £30,000 worth of solid value. At that time he considered that with so many incidents tending to force land far above its real value, a slump was bound to occur. He then endeavoured to realise for cash in whatever direction he could. In order to get out of contingent liabilities he offered in cases, where liia name was on titles, subject to mortgages, to re-finance the owners free of cost. Several owners of properties accepted the offer, and that had reduced the present liabilities considerably. BOUGHT PROPERTY IN NELSON. In 1915 ho purchased a property from the Public Trustee in the Nelson district, and there was left on a first charge about £1350 to one Charles Chaytor, whose estate was in* the hands of the Public Trustee. Ho spent about £2OOO in improvements, and sold it on to one Grant. Three years afterwards the amount became due, and the Public Trustee, acting for Chaytor’s estate, agreed with Grant tliiit if he would pay an extra half per cent, interest the mortgage could run on. Some years later the Public Trustee found that Grant was getting into arrears, and then attempted to re-establish bankrupt’s liability, and sued him for interest. Reserved judgment went against him. Judgment was quickly followed by bankruptcy proceedings, and he had tha choice of either signing a fresh contract admitting liability or being forced into bankruptcy. He had a large number of unsecured creditors who had given him substantial credit on account of his strong financial position prior to the slump. He had called a meeting of hie creditors, and so staved off bankruptcy by signing the agreement with the Public Trustee, and in the interim between then and now had brought the position to that shown in his statement of assets and liabilities. There were now only two unsecured creditors. One was for a balance of a secured debt. The secured debt was £9OOO, the balance being under £4OO. The other unsecured creditor was for an account that had been in dispute for several years. CAUGHT BY SLUMP. The North Auckland place that he had put in at £14,000 was sold at over £30,000. There were 7000 acres, and it would not fetch £1 per acre to-day. It was a place that was bought from him by a syndicate which was formed into a limited liability company. The company lost all its money during the slump, and went into liquidation, throwing the liability back upon him He was badly caught by tho slump. He de lined several offers for the Taranaki place during the boom yean, but they were all easy term offers, and he felt that the risk of the property being landed back on his hands was too great with a slump looming ahead. The two properties that had come back were only lightly mortgaged in proportion to the value as it stood at the time of the sale in each case. As all farm assets were so hopelessly unsaleable on the present market, it seemed impossible to suggest any offer that would assist the creditors.