FARMER'S BANKRUPTCY.

Waikato Times, Volume 99, Issue 16545, 14 July 1925, Page 6

FARMER'S BANKRUPTCY.

UNPROFITABLE FARM VENTURE

DEFICIENCY OF £1,292

A preliminary inquiry into the affairs of a farmer of Walton, Herbert Pratt, who has filed a petition in bankruptcy, was held at the of/ice of the deputy official assignee (Mr. V. 11. Sanson), yesterday.

Bankrupt's schedule of accounts showed £271 Is Gel was owing to unsecured creditors and £.'l,~> i2 to secured creditors, the estimated value of the securities being £2462 10s. His total assets are estimated at £57 13s, leaving a deficiency of £1292 iSs Gel. In his statement, Pratt said that he took possession of a farm at Walton in 1922, and at that lime had £1027 in cash which he paid into the bank at Morrinsvillc, together with £6OO of his wife's money. He purchased the farm at £38(52, paying £512 in cash and taking over a first mortgage of £2750 and a second of £6OO. He had occupied the farm since he had purchased it, but could not make it pay; the balance of his capital and the takings during that time being absorbed in paying interest, and working and living expenses.

In' reply to a creditor, bankrupt denied that his wife had made him any loan when he purchased the farm, and stated that if there was any statement in the bill of sale to the effect that his wife had lent, him £SOO, it was untrue. He admitted, however, that his wife had paid £6OO into his account, and this had been expended in the purchase of cattle, and a Ford car, and general farm purposes.

Continuing, bankrupt stated that his son was claiming £lO3 for wages, made up at the rate of £2 per week for the 12 months ended May 2'j, 1925. His son* had been paid at the rate of £1 per week up till June of last week. The payments had not always been cash, on one occasion he had been given a horse valued at £25. He had also received his keep as well as his wages. Bankrupt stated that he had kept his son at home against the latter's wish. There was no written agreement between them, but he thought that his son was well worth the money and had offered him the wage in order to keep him on the farm.

As the bankruptcy is an Auckland one no resolution was carried at yesterday's meeting.