STRUGGLE FOR A LIVING

Taranaki Daily News, 17 October 1930, Page 8

STRUGGLE FOR A LIVING

FARMERS’ FINANCIAL FAILURE. BANKRUPTCY OF OHURA SETTLER The story of a settlers’ attempt to wrest a living from a backblocks property, much of it, covered with bush and infested with ragwort, while hampered by ia' mortgage on which he was paying 7 per cent, interest, was disclosed in the Stratford Courthouse yesterday, when creditors in tile bankrupt estate of Janies Risk, farmer of Ohura, met. The only creditors, represented were Messrs J. H. Miles and J. W. K. Lawrence, the mortgagees of uhe farm properties, who filed the petition in bankruptcy. The schedule showed that the amount owing to secured creditors was £3863 12s 5d less the estimated value of securities, £3OOO, leaving a deficiency of £863 12s sd. Other liabilities amounted to £64 Is 4d, making the total debts £927 13s 9d. 1 Assets were estimated at £193 9s 6d, leaving a deficiency of £734 4s 3d. 1

He, was a married man with a family of four sons, of; whom the youngest was 19 and was still dependent upon him to some extent for his support, bankrupt stated. About 20 years ago he purchased for £9OO the 1200-acre Crown leasehold bush farms he now owned. There was then about 700 acres felled and 100 acres in grass. He had sufficient sheep to stock the property. As there was no school near the farm he purchased a section comprising foul acres on the outskirts of the Ohura township, on which he erected a sixroomed dwelling, and he resided there instead of on the farm. He spent a considerable sum in improving the farm and obtained his finances through a bank. About 10 years ago he obtained an advance of £3600 on first mortgage of his farm and house properties from his present mortgagees, Messrs Mills and Lawrence, and he used that money to reduce his liability to his bank, leaving about £3OO owing to the bank, for which he gave the bank security over his stock. Shortly after that the slump in prices of wool and meat occurred and he changed from sheep-farming to dairy farming, which involved further capital expenditure. RAGWORT INFESTS PROPERTY.

Bankrupt carried on dairying until two years ago. As ragwort was then increasing on his property he gave up ‘dairying and grazed sheep and a few breeding cows. The returns from the farm were not sufficient to pay Crown rent, rates, interest on the mortgage and other outgoings and to allow a reasonable margin for living expenses. ■His sons were therefore compelled to leave the farm to take up cream carting and metalling work during the summer months. For the past three years he had farmed at a loss. He applied, to the Deteriorated Lands Board for remission of the Crown rent, which was granted, but he could not get a permanent reduction of the Crown rent as the Crown thought that the mortgagees should first give some relief. The mortgagees refused to do that. The mortgage fell due on 1, 1926, and ran on overdue until May 1 1930, when the mortgagees demanded payment of the principal. He had not the money to repay the mortgage and could not borrow it. He explained the position to the mortgagees and offered to endeavour to carry on if they would assist him by making a reasonable "e--diiction in the principal sum and the rate of interest, which was 7 per cent. The mortgagees refused to grant him any relief and issued a writ against him for the monies owing under the mortgage.. Judgment was given on June 20, 1930, for £3863 12s sd. The mortgagees then filed a petition in the Supreme Court for his adjudication as a bankrupt. . . The majority of the farmers in the district, bankrupt concluded, had had to abandon their properties owing to the low prices for produce, the increasing areas of country going back into second growth, and the spread of ragwort. Questioned by Mr. H. C. Ladley, acting on behalf of the mortgagees, bankrupt admitted that his sons had a property, which they farmed . themselves. He had. no financial interest in that property. He had paid the accounts of tradesmen and small creditors after the bankruptcy notice was served on July 28. -ri ' K '’ Appealing to the D.0.A., Mr. Hadley said that bankrupt should not have paid those accounts before meeting his obligations to the mortgagees. He asked Mr. Medley to communicate with those people and request them to make restitution. i

“If you are going to adopt that attitude then I’ll Lufise the sons to put in a preferential claim for wages that are owing to them,” said Mr. S. Macalister, for bankrupt. The mortgagees refused to reduce the rate of interest and the sons refused to help bankrupt in an almost hopeless attempt to put tne farm on a sound footing, he stated. Bankrupt’s health had precluded his carrying on with the property himself. Had the mortgagees reduced the interest to 5 per cent, bankrupt would probably not have been in the position he was that day.

PERSONAL AND GENERAL.

Sympathy with the relations of the late Mre. W. Morison, Eltham, was expressed at a meeting of the Ngaere school committee. The chairman, Mr. H. C. Taylor, recalled that Mrs. Morison as Miss Mills was infant mistress of the Ngaere school for over 30 years. The directors of the Eltham Dairy Company paid a visit of inspection to the various branches on Wednesday. At each factory matters concerning the efficient conduct of operations were discussed and the directors ar- very pleased with the high state of efficiency attained.

KING’S THEATRE.

“REDEMPTION” TO-NIGHT. ...

“Redemption” is a story of old Russia, with John Gilbert in the role of a romantic young officer who, though loving the woman he married, is brought to a state of degradation by the uncanny fascination of a Gypsy woman. Eleanor Boardman, who played with Gilbert in “Bardelys the Magnificent,” and Renee Adoree, his sweetheart in ‘‘The Cossacks,” are the rival charmers. Conrad Nagel, Claire McDowell, Charles Quartermaine, George Spelvin, Augustin Gorgato, Nigel de Brulier and. Tully Marshall complete the cast.