LOSSES IN FARMING ESTATE OF JAMES COOMBE.

Wanganui Chronicle, Volume LXXXI, Issue 19046, 25 June 1924, Page 11

LOSSES IN FARMING

ESTATE OF JAMES COOMBE.

The unsecured creditors in the estate of James Coombe, stockbuyer, Pahiatua, bankrupt, are as follows: Wanganui.—Treadwell, Gordon and Brodie £7O; N.Z. Loan and Mercantile, £53; M. Earl, £10; Wright, Stephenson and Co., £229; Windieburn Bros., £2B; Goldfinch and Co., £l7; Pursers, Ltd., £6O; R. B. Stockwell, £4; A. Smith, £l4; D. Gellatly, £6; G. Carrad £l6; Boyd and Brennan, £7; J. Dunlop, £3; “Wanganui Chronicle,” £7; E. O’Meara, £l2. Waitotara.-—J. B. Richardson, £T23. Dannevirke: Mrs. Holm, £2O; Dunedin: Reid and Gray, £24. Marton: John Coombe, £1619; Mrs. J. Coombe, £1500; Ohakea, Palmerston North: J. A. Bailey £B3O. Westmere: V. Cameron, £lO. Total £6273 3s 2d.

Assets Nil. Deficiency, £6273 3s 2d.

In a written statement, bankrupt stated:—•

“I started farming in 1906 at Waitotara in partnership with S. J. Gibbons. The amount of our capital was about £l6OO each. We were not successful with our farming. In 1910 we exchanged our farm to J. Darragh, for Feiloing town property. My partner took over town property and we dissolved partnership. I borrowed £l5OO from my mother and £l2OO from my brother and leased the farm at Waitotara from Mr. Darragh with a purchasing' clause. I spent a lot of money in fencing and erecting milksheds, house, etc., and put on 100 cows. It wa» not a successful venture. A lot of cows died and the others did not milk well, anu the house was destroyed by fire. ‘To meet the above cost I borrowed in 1911 £l5OO from Bank of N.Z. on a guarantee overdraft. In 1914 I tried to sell the property and sold about 700 acres, taking as part payment property in the town of Gore valued at £l6OO. In order to transfer the property sold I had to purchase the balance, and to do this I had ti raise an additional £3OOO on a third guaranteed mortgage at a high rate of interest, some of which was used to pay off the Bank overdraft. In 1916 I required more money to carry on and borrowed £2OOO on my stock. The same year I sold the balance of the farm and paid off the £3OOO guaranteed mortgage and the stock mortgage of £2OOO. I then leased a farm of 218 acres at Westmere and borrowed £l5OO from Bank of N.Z. on guaranteed overdraft. I gave my brother a mortgage over the Gore property to secure £l4BO. In 1917 I borrowed £450 from F. M. Bailey and in 1918 £2OO more from same person. In 1919 I sold my goodwill in the 218 acres for £2lOO, but after paying overdue rent, commission, and sundry debtors I only received £730. I had retained a flock of stud Lincoln sheep and in order to keep them, as they seemed payable then, I leased a property of 95 acres at Westmer for £5 10s per acre with a purchasing clause at £l2O per acre. When the slump came I could not sell my stud sheep and also lost money on stock and crops. In 1921 I sold the Gore property for £l2OO and gave my brother security over my stock and lease at Westmere and borrowed a further £250 from my brother. The same year I sold most of my sheep. Towards the end of 1921 I could not meet my bank interest and the bank called on my guarantor to pay the overdraft. I could not meet my rent of the farmland in April, 1922, I had to walk out Ind leave it and sell my stock at low prices. I tried to get into another property, but could not get finance, and for six months could not get work. I got a position in November, 1922, with the Wairarapaj Farmers ’ Association as stock agent, and in October, 1923, I got a position as stock buyer in the Pahiatua district for the N.Z Refrigerating Company, by whom I am still employed. I attribute my failure to too much borrowed money on high priced land and high rates of interest together with the slump in stocU, especially’Lincoln sheep. I have no assets and am working for wages. I have no offer to make. When I left the farm in April, 1922, I interviewed my creditors, and told them the position and said if they waited, and I could pay them, I would. I am forced to file through some of my creditors pressing for payment I have now to contribute towards the support of my mother who now has no property or fixed home.”

A meeting of creditors was held on Friday afternoon, Mr. J. D. Wilson, Deputy Official Assignee, presiding. Bankrupt and his solicitor, Mr. G. Gordon (Messrs. Treadwell, Gordon and Brodie, Wanganui) were present. Examined on oath bankrupt stated that he owned no property, or motorcar. He had a wife and one child. All furniture belonged to his wife, who had bought it with money obtained from her father. All debts had been contracted over two years ago, and £5529 Is 3d of the total amount was owing to his brother, mother, mother-in-law, and father-in-low. He was at present in the employ of the N.Z. Refrigerating Company, st a salary of £4OO per year. He had no offer to make for the benefit of his creditors. Mr. Gordon explained that three creditors had obtained judgment for debt, and one had issued s. distress warrant, necessitating Coombe’s filing a petition in bankruptcy. The DX>.A. said it seemed a hopeless case, and nothing could be done for the present. Creditors could, if they so desired, make objections when bankrupt applied for discharge The meeting then adjourned sine die.