A FORTUNE GONE.

Press, Volume LXIII, Issue 19141, 26 October 1927, Page 6

A FORTUNE GONE.

SHEEPFARMER'S LOSSES. CAUGHT IN THE SLUMP. A meeting of creditors of Edward Albert Broughton, sheepfarmer, Christehurcli, was held yesterday, ZVtr A. W. Watters, Official Assignee, presiding. Mr 11. J. Beswick appeared for the bankrupt. The bankrupt's statement showed: | Due to unsecured creditors, £4573, to secured credi =■*, £4520, less estimated value of securities (£2930) £1590. Assets: Cash in hand ss; property £<jC... Deficiency: £5503 17s 9d. The amounts over £lO due were to the following: Blaekbunie, .Smith, and Co., £32 12s; Fountain Bros., £22 2s Od; J. Ballantyne and Co., £2O; D.1.C., £29 16s sd; William Brougbton £2248 12s 5.1- W. 11. and J. E. Alexandre £197! 3s lOd; Allen Bros., £lO 0s Od; R. Hampton, £195 7s 3d. The secured creditors were: Dalgety ■ind Co. £4270 (estimated value of security £2430); John Smith's Trust, £2so'(estimated value of security, ioOO). —Bankrupt's real estate consisted of: Four sections, St. Martins Hill .CoOO;. and a mortgage £IOL. Speculations in Sheep. In his sworn statpment bankrupt set out that he had been sheep-farming for about 30 vears, and was successful till about 1925. Towards the end of that year he was dealing largely in sheep, and in the autumn of 1926 he met the slump. He purchased large quantities roughly at 25s per head, and on account of the shortage of feed and the slump he was forced to realise at considerable loss. He was offered by Mr Pannett 13s for a line which be be d through the winter and sold in the early spring as high as 235. He held saoo acres of freehold, and about 4000 acres of leasehold. Dalgety and Co, in conjunction with Pyne, Gould, Git'-<css, Ltd. sold one block by . private treaty containing about 1100 acres; the net proceeds were retained by Dalgety and Co., as second mortgage. The homestead, containing about 1100 acres was offered by auction, but as there was no bid his brother was compelled to buy it in. Another block, containing about ' 2000 odd acres, was under mortgage to the McMillan Trust, and under second mortgage to Messrs Cottcrill and Beswick; the second mortgagee sold the P l '°Pf. rt y under.tho power of sale to Mr William Brougbton. A second block, containing 800 odd acres was sold by the second mortun!?■">- Dalgety and Co., to his brother. From all these bankrupt had not handled a penny. He was compelled to file through a certain creditor taking legal proceedings, and threatening to distrain. The furniture belonged to his wife, who purchased it out of lifd insurance moneys in 1924; a portion of this money was on his wife s life. Ho had other life policies in existence but had been compelled to bo" 0 "" against them for a livelihood. He had been looking after the property, on behalf • o.f the mortgagees for the last twelve months, and h-' 1 '"" account on which he could operate. Dalgety and Co., as second mortgagees, realised his private residence in Knowlcs street. This .was purchased by bankrupt in 1925 for £4OOO, bnnkrtint fusing £4500 before taking possession. It eventually realised £3250.

Questions Answered. j Bankrupt, replying to the Official Assignee, said that when the slump came he had about - 00 sheep. He realised on the bulk of them' and held only a few. D. 'rand Co., the ' and Mortgage, the Farmers' Co-op., and the National Mortgage had the selling of tho sheep. He was financed by Dalgety's. As to the leasehold lar-'i he surrendered it* there was money owing on it. Mr Beswick said that bankrupt abandoned his lease,- the lessees taking possession. ' Bankrupt, continuing: in reply to the Official Assignee, said that he had two life insurance policies—one in the Government Office and one in the National Mutual, each for £2500. He had borrowed on both. He had no others. To Mr l Alesandfe: His interest under his father's will was worth fb'-'t 51550, but following a partial distribution he bad not collected any interest since 1905. The Snowies « f —t pr«nerty was bought earlv in 1925. To Mr R. Badger:. In 1925 he considered that he was reasonably well off, and >ilgcty's must have conside 1 him so, or'they would not have financed him. At'the beginning of 1925, he believed ho was worth £30,000 at least. ' To tho Official Assignee: Off and on ho had spec-" .ted with sheep. During the whole of his farming experience he had been inclined to speculate. When there were no more questions, bankrupt, said that he wished to express his sorrow at the position which had arisen—having to moct his creditors. He never anticipated two years ago that this possibly could have eventuated. . As no motion was proposed the Official Assignee adjourned the meeting sine die.