IN BANKRUPTCY

Waipa Post, Volume 44, Issue 3178, 14 May 1932, Page 5

IN BANKRUPTCY

A TE AWAMUTU FARMER. PAID TOO MUCH FOR LAND. The District Official Assignee, Mi’ V. Orowhurst, of Hamilton, conducted an official inquiry at the T© Awamutu Courthouse on Thursday afternoon into the affairs of George Edward Hector Ranson, farmer), of Puniu Road, Te Awamutu, who filed his petition in bankruptcy a fortnight ago. There were eight creditors present. Bankrupt, in his statement,, said that he had been farming at Waitetuna, Waiuku and Te Awamutu for 22 years, coming to Te Awamutu in 1925 with £27 cash, and live and dead stock valued at £3OB. Interest on a mortgage of £3OO on the Waiku farm, was being paid by his mother. When he came to Te Awamutu his only other liability was £6O due to an Auckland firm of merchants. He and his wife sub-leased 173 acres, part of P. J. Laurie’s farm at Puniu Road, which was held under lease from the Anglican Church General Trust Board. When taking possession he bought some of Laurie’s stock, giving him a bill of sale for £484 at 6 per cent. In 1927 he arranged for a bank overdraft of £SOO, and Laurie accepted £290 cash in settlement of his bill of sale. In 1930 his bank overdraft was increased to £IOSO, and he bought extra stock. He negotiated a fresh lease with the Trust Board in 1930, and in October, 1930, he took over Laurie’s head lease for the whole of the farm for £1750. The rent to the board was then £134 and interest to Laurie £37 per quarter. Bank interest cost £73 10s annually, rates £SO, insurances £3 or £4. Total overhead charges amounted to £466. In 1930 his butter fat realised £925; in 1931 it was £429. This year it will be approximately the same. The sheep showed a profit of £l5O. Bankrupt attributed his failure to the poor price of butter fat and other farm produce in the past two seasons; the excessive price paid to Laurie for the goodwill of the lease; and the area of the farm was too great to permit of working it to advantage with his limited capital. Secured creditors were shown as £3075 17s lOd, less estimated value of securities £ISOO. Unsecured creditors proved for £BBB 18s 9d. Other liabilities were £3OOO, the total debits thus being £5464 16s 7d. Stock in trade was shown at £lO5 14s 6d. The principal unsecured creditors were: C. B. Daveney, Kiwitahi, £150; Mrs M. S. Ranson, Auckland, £100; W. S. Laurie and Co., Auckland, £127; Wallace Supplies, Ltd., Te Awamutu, £33 12s 2d; Electric Service Co., Te Awamutu, £3O; J. Varney, Hamilton, £2l 19s 8d; C. T. Rickit and Sons, £l9 9s 2d; Hesketh, Richmond, Adams and Cocker;, Auckland, £25 Is 3d; Waipa County Council £7B 13s; A. L. Yule, Hamilton, £l6 4s 6d; General Trust Board £134 13s 4d. Bankrupt said that in 1926 his farming operations showed a profit of £l2 10s, in 1927 £99, in 1928 £124, in 1929 £469, and in 1930 £243; but in 1931 there was a loss of £464. He had not computed a comparative statement for 1932. The Assignee commented that it was fairly obvious from the review of the position that there was no money for the unsecured creditors. The Assignee commented that the Ti’ust Board and the bill of sale holders are trying to avoid the necessity for selling up the assets now, as times are bad. The position regarding the motor car is subject to investigation. Counsel for P. J. Laurie said the position is rather hard on his client, and it was only fair to him to make it clear that Laurie had not refused to make any concession to bankrupt. The position was that any concession made would not have helped Ranson out of his difficulties; he was therefore recommended to file. Ranson had paid practically nothing to Laurie in the past year or eighteen months. Rates also were unpaid. Actually bankrupt had not “carried the load” for the past year oi) so. Members expressed sympathy with bankrupt in his position, and a recommendation that his discharge be facilitated was recorded, with a proviso that the Assignee is satisfied with the action of bankrupt in clearing up the position.