A BANKRUPTCY

Hokitika Guardian, 5 August 1931, Page 5

A BANKRUPTCY

<By 'J'elsyruph—Bbr L’reas Association) Christchurch, August s. A deficiency of £23,991 was disclosed in the bankrupt estate of Washington Irving Carney, a farmer and woolbroker, . who met his creditors to-day. The financial statement showed the amount owing to unsecured creditors was £9,658 and to secured creditors £20,132. The securities were shown at £14,010. Carney attributed his position to the slump in wool. Bankrupt said he had been engaged in wool broking since 1925, working on commission and on account. Until the season 1928-29 lie was making a net income of £3,000 and upwards. Anticipating that favourable conditions would continue, he bought a farm at Omilii, giving a mortgage of £SOOO. He had not made profits from the farm though lie had spent £7,000 in improvements etc. In 1929-30 season he lost money in wool broking, and in 1930-31 the price of wool and farm products began to fall- He cficl everything possible to reduce expenses, but certain creditors began to demand payments, and the second, mortgagee threatened to see the farm, and just within the past few days he had done so. He had failed to get financial aid from America or Australia. The whole cause of •my trouble was due to my thinking the good conditions of 1925-28 would continue and to the general slump. After creditors bad voiced criticism regarding bankrupt and his wife's living expenditure, the Ollicial Assignee said that it was liis duty 'to condemn in the strongest possible terms a lot of extravagance which had been contributing to the cause of bankruptcy. A Committee was set up to assist the Assignee in the disposal of the assets. The Official Assignee said in one year bankrupt and- wife’s personal expenditure was £2,340.