PUTARURU BANKRUPTCY.

Putaruru Press, Volume VI, Issue 244, 5 July 1928, Page 5

PUTARURU BANKRUPTCY.

FARMER WITHOUT ASSETS. Meeting Adjourned. An investigation into the affairs of Henry Kell, bankrupt farmer, of Arapuni road, Putaruru, was held in Hamilton on Thursday. Bankrupt had failed to appear at a previous meeting. The only creditor present was Mr. W. R. Shattock, for whom Mr. W. P. Gray appeared. In his statement Kells pointed out that his property consisted of sixty acres. The farm was composed mainly of rough swamp land and he was able to run only sixteen cows on it. In the second year of occupation he had to raise a bill-of-sale over the cows to obtain the money to pay the interest on the property. The amount of the mortgage was £1750, but later a second mortgage of £350 was raised, bringing the total mortgage on the property to £2IOO. Interest on the two mortgages came to £146, county rates £ls, drainage rates £lO, railway rate £2 10s, and interest on the house £4 a year. The total to be paid out each year in s interest was therefore £177 10s. The 16 cows brought in an annual return of £240, leaving his family and himself only £63 for food and clothing. In 1926 the cows failed through lack of grass, and he was unable to meet his liabilities. He had no money, and is at present doing odd jobs in an endeavour to provide for his family. He had no assets whatever.

In reply to Mr. Gray, bankrupt said he remembered negotiating for an extension of the mortgage. He thought he could raise £l5O. Mr. Gray: Is it a fact that you had £l5O at that time? Bankrupt: No. Bankrupt said his son, who worked on his property sometimes, advanced the £l5O. He abandoned the place when the mortgage was due. At that time he had no stock on the farm and few chattels. He had sold a haystack to a neighbour for £lO. There was a bill-of-sale made out to his wife. Mr. Gray: Did your wife have that money for 20 years and lend it to you on bill-of-sale oh your stock?— Yes. Mr. Gray: What was the amount? Bankrupt: £9O. It was my wife’s dowry.

After selling up everything bankrupt said he repaid his wife for the money advanced on the bill-of-sale. In September, 1927, he went to his son’s farm at Putaruru. His wife gave the son £IOO to help to finance the farm. She asked for no security. Questioned by Mr. Gray, bankrupt said he did not remember the mortgagee telling him he would allow the mortgage to run on. He knew he could not keep going and wished he had never taken up the property. The Assignee said the genuineness of the bill-of-sale was the crux of the matter. In reply to a question by the Official Assignee bankrupt admitted interest was owing on the mortgages when he left, as well as interest on State advances, etc. The Assignee: So you think it was a fair thing to pay your wife the money instead of liquidating some of your debts ? Bankrupt: I had to pay my wife. The meeting was adjourned for further < investigations concerning bankrupt’s transactions.