A BANKRUPT

Hokitika Guardian, 29 July 1925, Page 1

A BANKRUPT

.JOIfX R. WALLACE'S LIABILITIES. CHIUSTCHUIIGH, July 27. Land and stock .speculation that did not como off, largely owing to the slump, formed flic burden of the talc which an ex-farmer told to a meeting of Ids creditors this afternoon. Ho owed A-177.) 18s Gd, an unusually largo amount, and £3898 4s 2d was due to one firm, the National Mortgage and Agency Coy.. Ltd. The bankrupt was John Richard Wallace, farmer, at present of St. Albans, Christchurch. The liabilities totalled £4775 18s Gd. all to unsecured creditors. The assets- were £GI 3s, leaving n deficit of £-1714 15s Gd.

The chief unsecured creditors were : National Mortgage and Agency Cov., Stock and Station Agents, Christchurch. £3898 4.S 2d; Kyo. and Carter. merchants. Christchurch. £250; Simon l’ascoo, farmer, Rotokahn. A Vest Coast. £l7O 15s; Kaikoura United Motor Coy., Ltd., £33 2s Gd; A. J. White. Ltd., Merchants. Christchurch, £lO Is 9d; C. Smith. "Draper, Groymotitli. £2O 7s ‘2d; R. Badger. Land Agent, Christchurch £63 15s; lla.rdie and Thompson. Ltd.. Timber Merchants Christchurch, £33 14s sd; ft. Rchnef, Merchant. Greymoutli, £49 12s 3d; F.state T. Boyd. Kaikoura, £27 15s; AV. Chinn, farmer. Tetalio, AVost Coast, £OS Is; J. Hanshury, Boss, carrier, £3O.

The statement of the bankrupt declared that in 1918 lie was carrying on farming and dealing at- his Strongbar and Ghr/ebrook farms, at Blenheim, lie was also farming 70 acres near Blenheim. For sonic time tie carried on successfully, and finally sold the three farms for 210.70(1. That left liim with an equity of about ,C 12.000. then from the purchaser of these farms, bankrupt purchased GOO acres at Cast, for approximately £12.215. He also purchased from Mrs Barnett 01 acres at Ualswell. at £IOO an acre. This lie sold at a profit of £2O an acre. A year later he sold the C'ust property for £12.180. He disposed of the place because be found that the district was unsatisfactory, and that he could not carry on farming there profitably. In September, 1919. he purchased 562 acres from Mr Campbell Manson, at Teddington, for £26 15s an acre. On February 10,1920. he sold the farm to Mr Spencer AY ells for £3O an acre, but owing to the purchaser filing his petition in bankrtipley at a later (late, lie lost about £I6OO on the transaction, lie then purchased about. 8(10 acres at Willesdon. but within the, next two years lie lost about £IOOO in stock, and realising that it was impossible to carry <nt the farm, lie was compelled to let- the vendor re-enter upon and take possession of it. This meant a further loss of £2OOO. Later he purchased a resilience at McCormick’s Bav. Sumner, for approximately £7BOO. This was exchanged for 21 acres at Lailhrooks. The l.adVooks property was later sold by the mortgagee, resulting in a further loss to the- bankrupt of about £3OO. In July. 1920, he entered into purinct'ship with a Mr Shields for the purchase of a- larm of 2011 acres at Iknninlun, West Coast. Doth were to pay a deposit of £2500. Shortly alter flic partners took possession of the farm, there was a general slump in prit es, and for (lie next three years they carried on the farm unsuccessfully. The whole of the stock was then sold by the National Mortgage and Agency Coy., ami for a further twelve months the farm was carried on without stock. T’vontu:lll v the property was sold by Lite mort-

gngoe. The whole fransoefion resulted in a loss to the partnership of approximately £BOOO. Since the sale of the properly bankrupt had been earning his living by dealing ill a small wav. lie was married with two children. He attiibuled bis loss to (be general slump and to the decrease in prices of stock and so on. Tu answer to questions by the Official Assignee, the bankrupt said that lie sold the Blenheim farms to go in for speculating in farms. Bankrupt saidthat lie had lost about £IOOO at the (bis( farm. The creditors decided in allow the bankrupt to retain his furniture. The Official Assignee commented on the fact that bankrupt had not attempted to account for his losses. The meeting was adjourned sine die.