OWNER OF KAWAU ISLAND.

Taranaki Daily News, 10 December 1921, Page 2

OWNER OF KAWAU ISLAND.

HAMMOND AND CRACKNELL AG ASSUME INTERESTING FACTS. striking facts were revealed in certain matters that came before Jus llohgKj- MiC justice Heefteiafl, inbankruptcy at the Auckland Supreme Court last’ week, considerable public in"tgrest attaching to severaT'of tile "cases? Andrew Joseph Farmer, settler, of Herne Bay, Auckland, gayp n\yjj£ r<nis pat'tieulars of his financial an affidavit filed in answer to petitions by the Bank of New Zealand and the National Bank of New Zealand to have him adjudicated ban’kriTpt. . Mr. Anderson appeared for Farmer, whose statement contained the following inform>MjW'—Fsr 12 y ears his affairs were in the hands of the legal firm of Burton and Hammond and -Ham.njofid and C«ackmill- Karmer was. i» Australia and Vancouver from 1912 until the end of 1919. When he left this Dominion lie "was worth £60,000, his principal assets consisting of the Island of 'Kawau and' valttafonr properties in Wellington,-also a farm at Morrinsyille and two farms at Mana,watu In that estimate the island was valued at £25,000; less a mortgage of £8,000.. Burton and Hammond, continued Farmer, had full power of attorney, and when he. returned to New he

found his affairs in a very disorganised condition, and that without his direct authority all his assets had be’ea dealt with in some way. The three farms had been sold; the Wellington properties iq., which he considered his equity was £17,000, had nearly all been dealt with in some way; and the main probity, the Langham Private Hptel, with five shops attached, had been exchanged for a. Waiffiarino property, which..he had learned was in a name. The debtor said he had repeatedly t-rjejl to a statement qf his liabilities from the lafe F. J. Hammond, but without success. About a fortnight fore cteath Fa.rnmL at Hammond's request, signed mortgages totalling £4OOO, Matthew Reid, who, it had. been represented, was to receive tho cash, never getting one penny of the., money. Debtor believed the mortgages were given tb s&ine of Hd'fnmond’s personal- -creditors-. - - -

Farmer further stated that he had been negotiating for twelve months with the Kawau Island Development Company, Ltd., for the sale of Kawau Island for £67,'oofi, and aince -Hammond’s death he had received an offer from the company of £5O/)00 for h)s interest in the island, on certain conditions, the chief being that he was to obtain subscriptions. or take..UP XOOO shares, and that the present mortgagees (numbering between 30 and 40) shpuld extend their mortgages on the island. He had already obtained subscriptions for 5275 shares, and could place the remainder. Farmer also stated that his unsecured debts amounted to about £3OOO and the debts secured on the island amounted to £36,000, o? which he was disputing £6OOO. Should the sale of the island be completed in the terms of the offer he would have ample assets to satisfy’all his creditors,, With a considerable surplus''foi* himsfelf' If he were made bankrupt there would be a piecemeal 'sale 1 , "witli no surplus for unsecured creditors, and debtor himself would be ruined.