Forced Sales of Stock Cause Sheep Farmer To Meet Assignee.

Star (Christchurch), Issue 18578, 28 September 1928, Page 9

Forced Sales of Stock Cause Sheep Farmer To Meet Assignee.

“ STRUGGLED ON IN HOPE, BUT IT WAS NOT TO BE,” SAYS C. H. ENSOR.

A MEETING of creditors of Charles Herbert Ensor, sheepfarmer, was held to-day. Mr A. W. Watters, Official Assignee, presided, and six creditors attended or were represented.

Tile total debts were estimated at £1709, and the assets at £44, leaving a deficiency of £1665.

Debtor submitted the following statement:—

“ The immediate cause of my bankruptcy was the persistence of two creditors in issuing judgment summonses, although I recognise that my position had become hopeless and that the filing of my petition was only a matter of time.

“My trouble began with the purchase of St James Station in 1916. This property comprises 4000 acres of free hold and 199,000 acres of Government leasehold. The purchase money was approximately £41,000, which included 20,000 sheep. When purchased, the property was subject to a mortgage of £7OOO to the Public Trustee and £24,000 of the purchase money was secured by a mortgage to the vendors, Messrs Pratt Bros. The balance was paid in cash, for which I drew on Dalgety and Co. At the time of the purchase I was farming 4075 acres at Whiterock, of which 2815 acres were my own freehold and were subject to a mortgage of £II,OOO to the M’Lean Institute, and 1260 acres were leased by me from my wife on the terms that I should pay all charges in respect of the property and the interest under mortgages, which totalled £6BOO.

Operations at Whiterock SuccessfuL “My operations at Whiterock had been very successful. I had improved the property considerably and had brought a lot of virgin land under cultivation. I also created a valuable flock of Corriedale stud sheep, with which I opened up overseas markets in Australia, Tasmania, the United States and other countries.

Big Losses in 1918 Snowstorm. " For two years after the purchase of St James I held my own, but in the big snow of 1918 I lost upwards of 10,000 sheep and suffered great damage to fences and buildings. From this time my position began to recede. Before I could recover from these losses the slump set in, and great depreciation of both stock and wool took place, and money became scarce and dearer. Dalgety and Co. found most of the money necessary to pay off Pratt Bros. This mortgage was released in 1920, Dalgety and Co. at the same time taking securities over the whole of my properties, including live and dead stock and everything I possessed. Until July, 1925, I did the whole of my business with this firm, and all moneys received and paid by me are shown in their books. I had no other account. Further Winter Losses. “ In the winter of 1923 I suffered a further heavy loss “of stock at St James, comprising about 4000 sheep and an exceptionally fine team of eight packhorses, which were swept away in one avalanche. My account with Dalgety and Co. on June 30, 1923, had reached £34,972, and they were pressing me to take steps to reduce that sum. Sal© of Whiterock.

“ My freehold at Whiterock, comprising 2815 acres, was sold in December of that year. The net balance, after allowing for the mortgage of £II,OOO, and after paying off a second mortgage of £3OOO I had 4 raised in 1918, was paid into my account. This amounted to £2406. Notwithstanding this, my debit balance continued to increase, and forced sales of stock began, which culminated in the sale, in April, 1925, of the whole of my stock and plant at Whiterock, with the exception of certain stud sheep, removed to St James. Further stock was sold from St James, until my account with Dalgety and Co. was reduced to £3290. At this stage my account was taken over by the New Zealand Farmers’ Co-operative Association, to whom I already owed £907, balance of an old account. This was on July 14, 1925. The debit of my account with the Co-operative Association steadily increased until, in June, 1927, it had reached upwards of £9soc!

Sale of St James. “ The association then determined to exercise power of sale in its securities, and St James was offered for sale by public auction, and was purchased by Mr J. Stevenson for £11,250, or £2250 over the amount of the mortgage. He agreed to purchase the stock at a valu-

ation, with the exception of certain stud sheep which the association allowed me to remove to a farm of 136 acres at Hanmer, which I was leasing from Mr P. Binnie, and of which I was third mortgagee.

“After all accounts had been adjusted with Mr Stevenson, my account with the association stilll stood at £2588, and the association then decided to sell the farm and stock at Hanner as my attorney under the power of ale in my third mortgage. The property was therefore offered at auction ind was purchased by Mrs Ensor for £750 6s 7d over the amount of the mortgages. She also purchased the stock from the association for £B2O. This disposed of everything I possessed except the trifling assets mentioned in my statement of affairs, and left me indebted to the association in the sum of £1327 16s 2d, as security for which the association holds my guarantee. Dees Not Blame Anybody. “I do not feel I owe anybody any apology for the position I am in to-day. I struggled on in the hope of paying everybody in full, but it was not to be. [f it had not been for the forced sales of stock in 1924-25, I should have had the benefit of the recent high prices for wool and stock, and I should not have found it necessary to make the acquaintance of the Official Assignee. However, I have no desire to biame anybody, as such things could not then be confidently foreseen. “During the many years covered by my statement, I have been concerned in various purchases and sales of land, but I have not thought it necessary to burden my statement with these, as they do not materially affect the position. In explanation, however, of the amount owing to Mr Kilian, I should mention that one of the areas purchased comprises 712 acres 19 perches at Loburn, which was subject to a first mortgage of £I4OO to Mrs A. A. Lyford, and part of it, comprising 667 acres, to a second mortgage to Mr Kilian, securing £440 The area of 667 acres was sold in May, 1926, by the first mortgagee, owing to default of payment of interest, for £llOO, which left £3OO secured on the balance. This balance had been sold by me to Messrs L. and M. Fitzgibbon, and the balance of the purchase money owing by them to me, amounting to £512 4s, is included in my statement, but I do not think there is any prospect of recovering any part of it. By reason of the sale by Mrs Lyford, the first mortgagee, Mr Kilian’s security was gone, but I remained liable to him tinder the personal covenant, and this is one of the liabilities included in my statement.” Deficiency £1666.

Debtor’s statement showed:—Unsecured creditors, £409 19s fid; secured creditors, £1327 16s 2d (equal to estimated value of securities); other liabilities, £1300; total debts £1709 19s fid. The assets totalled £44 10s, and were made up of:—Sheep dog £2; five shares in North Canterbury Freezing Co., £2 10s; property, £4O. The deficiency was £1665 9s fid.

Following are the principal unsecured creditors:—A. R. C. Kilian, £Bl lie; Wright, Stephenson and Co., £l3 5s Id; Mockett’s Motors, £46 6s 4d; United Service Hotel, £2l 10s 3d; Trustees H. R. Heath, £l2 10s 4d; T. J. Hughes, Hanmer Springs, £42 13s fid; “Meat and Wool,” Ltd., £35 3s 9d; Dr T. A. MacGibbon, £33 Is; Jock Ensor, £ls; Jonn Renaud, £ls. Other liabilities were:—Guarantee of mortgage from Ernest Witte to A. R. C. Kilian, £860; mortgage from debtor to A. R. C. Kilian over a property sold by the first mortgagee at a price not sufficient to discharge the first mortgage, £440; total £I3OO. Debtor’s property consisted of 10 acres of freehold at Amuri, valued at £4O.

The book debts were set down at £259 6s 6d, the debtors being Leonard and Michael Patrick Fitzgibbon. The sum represents balance of purchase money and interest in respect to 4-la °r 32p at North Loburn. It was decided that the area of 10 ’rres mentioned in the statement hould be transferred to Mr J. Steventhere was no other business, the meeting ended.