HEAVY LOSSES.

Manawatu Herald, Volume XLVIII, Issue 3642, 24 May 1927, Page 1

HEAVY LOSSES.

FARMER’S BANKRUPTCY

Per Press Association. DANNEVHIKE, May 21. When the financial affairs of Thomas Montgomery Webb, a farmer and coinmission agent, were placed before his creditors to-day, an apparent deficiency of £5148 3s -8d was disclosed. Debts to unsecured creditors were £8979 18s Od, and assets £3831 15s. Bankrupt attributed his position to the slump affecting his land business and farming returns. The Deputy-Official Assignee (Mr Runciman) said that the bankruptcy was rather remarkable. During one year bankrupt had earned an income of something like £IO,OOO to £12,000. on which the Commissioner of Taxes had assessed him for income tax at £4900, yet apparently bankrupt was unable to pav his debts. In 1919 bankrupt had earned at least £IO.OOO, and raised £2OOO on his property, and ran up debts to unsecured creditors to the extent apparently of £9OOO. In a period of eight years he hud gone back to the extent of over £20,000, which seemed an extraordinary state of affairs. Bankrupt had been losing at the rate of £2500 a year. Ho could understand that bankrupt had lost something, but he could not understand where the £20,000 had gone to. Deducting the amount due to the Commissioner of Taxes, there was still £15,000 to be accounted for. Bankrupt, in reply, said he had lost heavily lending money, also on stud cattle. . The Deputy-Official Assignee said that even so, putting these losses at £SOOO, there was still a heavy sum which had gone west. Questioning failed to get any information where the £20,0G0 had disappea red to. The Assignee said that on the lace of it the position looked bad, and it would he more satisfactory to all concerned if it could be shown where the monev had gone. The creditors eventually decided to asjk bankrupt to submit a statement of receipts and expenditure from April 1, 1919. Amongst the unsecured creditors are Barraud and Abraham, Ltd., £1573 and A. Allen (Palmerston North) £l7 14s.