IN BANKRUPTCY.

Hauraki Plains Gazette, Volume XXXVI, Issue 4824, 27 April 1925, Page 1

IN BANKRUPTCY.

FARMER IN DIFFICULTIES. OFFICIAL ASSIGNEE TO REPORT. A meeting of creditors in the bankrupt estate of Murdoch Clarence McMillan whb filed his schedule on April 2, was held in the Courthouse, Paeroa on Wednesday. There were four proved creditors present, Mr J. IL Lurieon, representing tile Gane Milking Machine Co.;Ltd.. beiing elected chairman. Mr E. W. Porritt appeared for the bankrupt. The schedule showed amounts owing to unsecured creditors totalling £294 16s 2d, and to secured creditors £555. The estimated value of securities was £560. The assets comprised stock-in-trade £7, cash in bank £1 10s 6d, furniture £lO, surplus from securities in hands of secured creditors £5, making a total of £23 10s 6d and leaving a deficiency of £271 os Bd.

In a written -statement bankrupt stated that he had purchased a farm of 98 acres at Nethertpn from bis cousin, 0. R. McMillan, in July, 1923, at £43 an acre. The property was subject to two mortgages, but there had been no agreement signed because efforts were being made to get a reduction of the second mortgage. A deposit of £3O had be ( en paid on the farm, and £5OO balance due was secured by a third mortgage. Nothing had been signed, and bankrupt had not received a title to the property., The farm was to have been in the name of bankrupt and his brother. Stock to the value of £4OO had been purchased with money loaned by his father, who took a bill of sale over the stock, There were no implements on the property, and it was foubtful if a sale of the stock would lealise the amdunt of the bill of sale. A Gane milking machine had been purchased on a hire purchase agreement, but he had got into arrears and the company had- taken out an attachment order- on the milk cheques, but as the orders were not sufficient to meet the arrears the company had taken the machine- away. He commenced milking with 40 cows and heifers, and was doing well until the flood in April of last year. The farm was then under water for two weeks, and the cows were dried off and put out to graze. The property remained wet all the winter, and there was no outlet for drainage and nothing could be done with the farm. At that, time a contract was taken with . the Elstow Drainage Board to obtain money to carry on. The contract had been a big one, and after paying wages there was little left. This season 15 out of the 40 cows did not calve, and the others came in late as a result of the flood. He borrowed £5O from the Waikato Valley Dairy Co., and an orde> was given for one-third of the monthly cheque;. The cows were in poor condition, and the balance of the milk cheques was insufficient to carry on with. Bankrupt and his brother worked hard on the farm, but could no: make it pay. They got nothing out of the property beyond food and clothing. There were no assets other than those shown in the schedule, and he was not in a position to make any offer. There was no capital other than £4OO advanced by his father, but as he and his brother had been working on their father’s farm previously they felt confluent that they, could have carried on, and would have done so had it not been for floods.

In reply to Mr V. Youug bankrupt denied that he had stated in October, 1923. that he had an interest in a mortgage amounting to £4090 falling due, at that time on a farm in North Auckland owned by his father. In December, 1923, his father paid £235. which represented interest due and in advance to August, 1924. Stock hud teen purchased and ijaid for jy his father, who' took a bill of sale over the whole of the stock. No money had been received since that time. The- payments made by his father probably exceeded £4OO, but that was the amount of the bill of sale. Mr Young gave his consent to possession of the farm passing from 0. R. McMillan to bankrupt and his brother ifi July, j. 923. Bankrupt said that the farm would not have been taken 011 if Hallybur■toii Juiiustone, who held the second mortgage, had'not agreed to reduce the mortgage from £l2OO to £800 ! . The transfer from O. R. McMillan and Gordo’i McMillan had never been completed.

Bankrupt admitted under examination that he had issued a cheque for £9O for interest in December las: which was dishonoured. Judgment was given against him in January and February iast to Mr Young and the Gam 1 Milking Machine Co. All cream taken from the farm was sent- to the Waikato Valley Dairy Co., and all cheques were, with one exception, placed to his credit at the National Bank, Paeroa, up to the time of tiling. Young had sent notice in November, 1924, stating that he was calling up the overdue mortgage because of the arrears of interest. He admitted that he was practically bankrupt at the end of last year. With the full knowledge of the judgment in Young’s favour he gave an order to Hare Bros, on the Waikato Valley Dairy Co. for 1 £ll un February last because of pressure by these creditors.

A resolution was passed adjourning the meeting and requesting the Official Zussignee to look into the details of the transactions and submit a report to the creditoils.