IN BANKRUPTCY.

Hauraki Plains Gazette, Volume XXXVIII, Issue 5153, 18 July 1927, Page 3

IN BANKRUPTCY.

| NETHERTON SETTLER'S PLIGHT.

A FESCUE-INFESTED FARM. A meeting of creditors of Mr G. A. J. Smith, pf Netherton, who was adjudged bankrupt on June 29, was held in the Courthouse, Paeroa, on Wednesday. Five creditors were present, and in the absence of the Assignee Mr T. A. Jones was elected chairman. In placing the debtor’s position before the meeting Mr Jones said that ■li 1917 bankrupt took over a farm of 'B4 acres* at £45 an acre, paying £lOO and leaving the remainder on mortgage at 5% per cent. He had at that time £6OO working capital. The land was unimproved except for a tworoomed house. He spent this £6OO on additions to the house, building a milking-shed, purchasing cattle, fencing, draining, and clearing. During the first year he milked 27 cows-. They, however, came in late, and did not produce enough to pay interest. During the second and third years 'he milked 35 cows, and in the fourth year 40 cows, which was the best year, he making £2OO clear above expenses and having no losses*. : The fifth year he began with 40 cows, 15 of which slipped and were replaced with cows costing from £l2 to £22. In the sixth year *he had to replace eleven cows, which cost £lO each, and in the seventh and eighth years lie lost five more, which cost £8 per head to replace. The returns decreased considerably, and this he put down to the herd being kept on fescue, which infested the whole farm. The return for the past year was £353 and an estimated bonus of £5O. Bankrupt thought that when his losses had been reduced to three and two for the seventh and eighth years his trouble was over, and he would make headway, but last year ten slipped and eight died, and this- made it impossible for him to carry on. He attributed nearly all his losses to the fescue. The amount to secured creditors was £4371 17s 3d. The land and chattels- he valued at £2542, leaving a deficiency pf £2329 17s 3d. The land was subject to a mortgage of £3795, and cattle £3OO, plus interest owing. The amount owing to unsecured creditors was £616 9s, and i-ates £ll2 18s 2d. Mr J. T. Davies-, representing Messrs Bagnall Bros., said that his firm had stood to bankrupt for the last 12 months to the tune of £213 for food, and he asked why bankrupt had not disclosed his true position. He had apparently mortgaged his stock since and made a preferential claim. Mr Davies asked if the holder of the bill of sale would be prepared to forego liis claim. To this Mr W. H. Wight said that when the bill of sale was- taken last August there was £7OO owing for interest and he cut a-loss of £4OO then. He was prepared to hand over his securities basing the property as being worth £3O an acre to the creditors if they wished. So far as he could see he would be far the heaviest loser. Replying to Mr Davies bankrupt jaid that he had- tried hard to get of his losses, but the last season he was completely crippled. He admitted that he should have been more frank with Mr Davies, but had thought everything would eventually come out all right. Asked about his expenditure, bankrupt said he could not give details without his pass-book, which was with the Assignee in Auckland. After a good deal of discussion it was resolved to ask the Assignee to hold a clearing sale on the farm, and to nominate Messrs Buckland and Sons as auctioneers.