FAILURE OF A FARMER

Taranaki Daily News, 17 October 1927, Page 11

FAILURE OF A FARMER

LARGE SUMS INVOLVED. AFFAIRS OF THOMAS HUZZIFF. Unsecured debts amounting to £155 le Id and considerable sums involved in the secured debts and valuation of securities were shown in the financial statement of Thomas Huzziff, farmer, of Oakura, who appeared in bankruptcy before the Deputy Official Assignee (Mr. J. S. S. Medley} in New Plymouth on Friday. Three creditors were represented, and after bankrupt had been examined it was resolved that the D.O.A. make investigations regarding a milk cheque and certain chares. Bankrupt's statement showed liabilities to unsecured creditors amounting to £155 Is Id and to secured creditors amounting to £15.915 lese estimated value of securities £10,930 —£4986’. Assets were set down at: Stock and implements £893, furniture £lO, property £10,092, leaving' a deficiency ef £5095 Is Id. The unsec rred creditors were: H. J. M. Thompson (Inglewood) £2l ils 4d, J. McLean (Inglewood) £74 9b 6d, W. F. Short (New Plymouth), £57 Ils, T. C. List £1 t‘e 3d. The secured creditors were: Newton King, Ltd., £7850, estimated value of security £2860; C. Fenn, Stratford, and IV. T. S. Trewen, Tarski, each £7BO on estimated total security of £1700; Wellington Diocesan Trust Board £4725, and A. W. Webster and Stock-, New Plymouth £430 on estimated total security of £5400; E. Whittle’s trustees £l2OO, and F. Tindlo £2OO on total estimated security of £1960. In his written statement, bankrupt said that a few years ago when land prices were high lie acquired a number of farm properties, but in disposing of these he had to accept second and third mortgages in part payment. He received financial assistance from Newton King, Ltd., and that firm held security on practically all his assets. For the past four or five years he had been milking on his Oakura farm, but during the hard times several of the properties mortgaged to him had been sold by’ the first, or subsequent mortgagees and his interests therein bad accordingly been lost. Newton King, Ltd., bad been collecting all the income of hie estate and practically managing his affairs, allowing him £l5 a month, sometimes a little more for living ami personal expenses. Ho had a family of 12 children., the eldest being 19 years old, and the youngest six years. Having no expectations he regretted he was unable to make any offer to his credit-

The bankrupt under oath stated that he had disclosed all his assets 'in the schedule. His life had been insured, but the policy had now lapsed. He had a farm at Climie Road, which he sold to R. Horne in exchange for a farm situated between Tarata and Tikorangi. In the exchange Horne gave him a third mortgage on the Climie Road pro-; perty at £l7OO, which was sub-mort-gaged to Frewin and Penn and Newton King, Ltd,, for £l4OO to buy stock. He had 256 cattle and 700 ewes on a farm on the Otaroa Road. He then paid £250 cash subject to a mortgage to Goble of £262-5 at Norfolk Road. The property at Norfolk Road was then sold to Arnold Hal), and he bought a place of 87 acres at the corner of King and Junction roads, near Inglewood. He next disposed of the Otaroa ffoud farm at £lB l’2s Cd an acre to Hurlihey and Butler and took a third mortgage of fSfilX) from them over the farm as part payment. He next invested in 249 acres of land at Toko. Tins was exchanged for 60 acres on the Lepper and Junction roads, leaving him* a mortgage of £4710, which he in turn exchanged for 227 acres of property on the King and Lepper roads. The property on the Lepper and Junction, roads, 60 acres, w’as then sold for £4OO cash,, and a house in New Plymouth valued at £5OO. Hie next transaction w’as the exchange of the 227 acres on King and Lepper roads for the property which lie now held at Oakura. This left him with a balance of £470 mortgage on it. His next moves were to exchange the house in New Plymouth for a house and three acres in Inglewood and the 60 acres for 250 acres of land on the Kent Road. The property on the Kent Road was subsequently exchanged for a house and three sections in Inglewood, this left him a mortgage of £2500 on -the Kent Road property. He then exchanged this mortgage for 217 acres at Te Kiri.

Counsel for bankrupt stated that the only assets on which it was expected to raise any money was the milk cheque and probably a number of shares in the Omata dairy factory and the Farmers’ Co-op. Mr. White suggested that the D.O.A. should go into the question of the milk cheque and the shares and ascertain the true position as far as they were concerned, and this it was decided to do.