IN BANKRUPTCY.

Hauraki Plains Gazette, Volume XXXVIII, Issue 5196, 28 October 1927, Page 3

IN BANKRUPTCY.

J. IL CARTER, NETHERTON. LOSSES BY FLOOD DAMAGE. A meeting of creditors An the bankrupt, estate of John Henry Carter (Mr A. T. Jones), farmer, Netherton, was held at the Courthouse, Paeroa, yesterday morning. There were eight creditors present, from whom Mr G. - Buchanan, Paeroa, was selected as chairman. The statement of affairs showed: Debts owing t.o unsecured creditors, £3816 19s 2d; to secured creditors, £14,867 Ils lid, less estimated value of securities, fiIS.OOO 1 ; making a total of. £5594 Ils Id. The value of live and dead stock unemcumbered was ' set down as £369 3s, leaving a total deficiency of £5225 8s Id. STATEMENT BY BANKRUPT. In a written statement bankrupt said that he commenced farming operations on the Hauraki Plains , with a little over £lOOO capital early in 1914. He, acquired sections 106 and 107 of the Turua estate in an unimproved state, and by the spring of that year the had fenced, drained, and grassed sufficient land to begin, dairying, and had also built the house in which he was at present residing. Such improvements and buildings soon absorbed his limited, capital* but as he was sending a fair amount of cream to the Thatneej Valley Dairying Co. within a few months of commencing he was able to carry op satisfactorily, and would (have made a success of the farming had he not acquired in 1916 the Awaiti property, comprising 192 acres, which he stjll held. Thq Awaiti property was firstclassi land, but was liable t,o floods, which, had subjected him to heavy expense. He had re-grassed the whole area four times, and in spite* of very elaborate schemes for the drainage of a largq block of Crown and private land in that area the periodic flooding had continued, and it was not until June of this year that satisfactory and safe drainage had been effected. Continuing, bankrupt staid that in 1923 he put a sharemilker on his improved farm at Netherton who milked his own herd on half-shares, while he moved to llis Awaiti farm with his own herd, as he thus had hoped to make both farms revenue-producing and so improve his position. With limited finance and much difficulty he had managed to erect a cottage and cowshed and get under way with dairying there. He was making a little headway when the largest flood so far experienced came the following year, and for four weeks he rowed about the farm in a boat. The cattle were driven to the hill country, where some starved and some strayed, and his losses were heavy. When the flood subsided no grass remained alive. However, he harrowed and sowed it again, and endeavoured to carry on with milking under increasing financial difficulties. -'ln June, 1926, a flax-growing syndicate offered bankrupt, £4O aji acre for - the Awaiti farm, which he accepted. The syndicate paid a deposit, and was to have started flax planting in the spring. At this time the sharemilke*r’s services were disposed of and he moved his herd back to t,he Netherton farm, only to learn a few months later that the flax syndicate was unable to complete its purchase, and the farm was thrown back on his hands in December, 1926. As it was too late in the season to do anything with dairying, the place was ' practically idle until the spring of this year, when it was straightened up again and a sharemilker started, on it. A little later bankrupt received advice from the first mortgagee on the Netherton farm that his board

had decided io advertise the sale, of

the property. When trying to cope with the unfortunate position which had arisen he received a similar notice from the holder of the first m.ortgage on the Awaiti property, land there was no option but to file. Bankrupt contended that j,t was unfortunate that he was not, being allowed to carry on for a little longer, □jccause now that the Awaiti land. h;ad ■Satisfactory drainage he was certain 'that within two years he would be able to pay 20s in the £. It was? pointed out by Mr Jones that in addition to losing over £lOOO in cash, bankrupt had spent 14 years of the best part of’ his life on the property, and he was confident that - had he bqen allowed to carry on he would have pulled through successfully and with credit. The Await! , property had proved a tremendous C hurdle, and undoubtedly there was some justification for the position pf bankrupt. With a total capital value of about £12,000, at a rate of interest at 7 per cent, amounting to £9OO, now that therei was, effective drainage bankrupt would have been able to clear close on £6OO a year had he been permitted to remain. There was no doubt bankrupt had made the best of the position and had done his utmost. Bankrupt was closely examined by several creditors. The chairman said that an unsatisfactory feature was revealed in that bankrupt had not kept the stock up t.o the number required under the bills of sale. Thq Awaiti property had been purchased at too high a price and had proved too heavy a burt den. Bankrupt said that his losses of pedigree stock had been considerable. Pedigree Shorthorn calves did not pay for the rearing, yet at the; same time an honest endeavour had been made to keep the number of both up to the numbers required by bill of sale holders. The second farm (had been purchased as a run-off for the homestead farm- For over 18 months he had not handled his own butter-fat cheques, which had gone to creditors he living on the sale of pigs and calf-skins k plus small refunds made by thei Thames Valley Dairy Finance Co. from time to time. \ The butter-fat cheques, were all cov- j by orders. i A creditor asked how fair had bankrupt been with his more recently acquired unsecured creditors. In reply bankrupt said that he bad

Veen reducing the amounts owing all the time, but with the acquisition of the Awaiti, farm it had been necessary to go further into debt witih a view to increasing production and making the; properties payable. After some discussion it was Resolved that the matter be referred to the Official Assignee, with a recommendation that a clearing sale of cattle land chattels ho held at the earliest opportunity.