IN BANKRUPTCY

Waikato Independent, Volume XXX, Issue 2426, 11 December 1930, Page 5

IN BANKRUPTCY

J. A. MARX, ROTO-O-EANGI. “A VICTIM OF CIRCUMSTANCES." !A meeting of creditors in the bankrupt estate of Jacob Albert Marx, farmer, of Roto-o-rangi, was held at the Courthouse, Cambridge, yesterday. Mr V. R. Crowliurst, Official Assignee, presided,/and Mr S. Lewis appeared on behalf of the bankrupt. Tho Official Assignee reported that bankrupt's liabilities were: Unsecured creditors, £1291 16/2; secured, £3669 S/7, less estimated value of securities. Total debts, £1291 16/2. The stock-in-trade was estimated to be worth £2OO. Bankrupt’s Statement. Bankrupt presented the following statement: — , Prior to 1915 I was dairy farming in the Te Kuiti district. My brother, Eric H. Marx, Was farming at Roto-o-rangi, near Cambridge, occupying 919 acres, principally fern country. My brothei enlisted in 1915, and* after camp left for France in March, 1916. He was continuously in active service until he fell in action at Messines in Juno, 1917. Before his leaving New Zealand he arranged with mo to take charge and work his farm till his hoped-for return. I then sold my Te Kuiti farm and worked my brother’s farm till advised of his death. My father (Jacob Marx) and I were both executors and beneficiaries under my brother's will. After full consideration we decided that I should purchase my deceased brother’s farm. This, necessitated iny resigning my co-trust.eeshij) in favour of my elder 'brother (Mr J.. P. Marx), permission and authority to sell and purchase on approved valuation being obtained from the Supreme Court. Said valuation was for £7054. I accordingly purchased the land at that price. Experience and later on Government valuations have amply proved that the valuation in question was fully £3 per acre in excess of its then value, thus imposing an overload of £2BOO, including costs and stamp duty, thus imposing an excess annual interest charge of £lB2. At the time I purchased my brother’s estate I whs worth *£3200. Finding the proposition too heavy, I eventually parted with 38.1 acres, retaining 538, which I am still occupying. It was valued at the' time of my purchase at £4255. This with stamp duty and costs made £4300 without any buildings. I expended £llOO on dwellings, outbuildings, water supply and other improvements, including the clearing and ploughing of 100 acres of fern land. After the outlay of £5355, three and a half years ago I applied to the Government Advances for a loan of £3OOO to •convert the existing full mortgage of £3OOO, but was only granted £2300 on £5355 worth. I got a further £BOO on second mortgage. I attribute ihy inability to carry on t,6 the overvaluation already alluded to with its extra annual crushing interest charge, Aggregating, with principal, some £4BO0 —and also the trouble with my land. ~ With the present slump, realisation must bo disappointing, and result in a wasted 15 years’ hard work, together with a loss of £3200. Questions. Replying to questions by creditors, it was stated that there were no other assets and liabilities than those disclosed in the statement. Details were given of. the secured creditors. The debts on the schedule extended over a long period, and some were very old debts. Creditors had known for some -time past of bankrupt’s position. Discharge to "be Facilitated. Mr Ward (manager, N.Z. Loan and Mercantile Agency Co., Ltd.) stated that he had always found Mr Marx a hard-working, straight-forward man. He had been a victim of misfortune. The speaker moved that Mr Marx’s discharge be facilitated. Mr T. H. Boyce seconded the motion, and endorsed Mr Ward’s remarks. 'The motion was carried unanimously. Mr -Marx thanked the creditors for their resolution. Realising Assets. The meeting agreed that the Official Assignee arrange with the Cambridge Co-op. Dairy Company to realise the assets, and it was also decided that the N.Z. Loan and Mercantile Agency Co., Ltd., be appointed to conduct a clearing sale of stock, etc., subject to tho approval of the Cambridge Co-op. Dairy Company.. The Official Assignee said that apparently there was not much equity on the farm property of 538 acres (much in the rough), on which there was a security of £2300 by the Advances to Settlers Office, and a second mortgage of £BOO.