BANKRUPT FARMER.

Taranaki Daily News, 9 February 1922, Page 8

BANKRUPT FARMER.

ESTATE OF OLIVER CROSS, MEETING OF CREDITORS. A BIG DEFICIENCY. The adjourned meeting in the bankrupt estate of Oliver Cross, farmer, Opunake, was held at the office of the deputy official assignee (Mr. J. S. S. Medley), New Plymouth, yesterday. There was a large meeting of creditors, over which the D.O.A. presided. Mr. H. B. Gibson appeared for bankrupt, who was also present. The bankrupt’s statement of assets and all liabilities showed: Unsecured creditors, £9OO 4s 6d; other liabilities, £1525; total debt, £7425 4s 6d. On the credit side were shown stock in trade, estimated at £125; book debts, estimated to produce £172; property, £4640; total assets being £4937, leaving a deficiency of £2488 4s 6d. The following is the list of unsecured creditors: Newton King, Ltd., £1800; Boon Bros., Ltd., £880; Red Post Furnishing Co. (Purser’s, Ltd.), £9B; F. E. Wilson, amount for costs not shown; C. Carter, £5; Hallenstein Bros., £3 17s 6d; N.Z. Loan and Mercantile Agency Co., Hawera, £605; Farmers’ Co-op. Organisation Society, Hawera, £400; Blair and Sellars, Hawera, £265; Smart and Foy, £l2 10s; Pratt and Co., £10; O’Dea and Bayley, £100; J. C. Gillett, £4 9s; Govett and Quilliam, £1 Is; A. C. Lawrey, £3 15s; C. E. Maunder, Wanganui, £99; Duncan and Davies, £7 10s; G. W. Rogers, £200; Mrs. G. W. Rogers, £200; Rua Bishop, £165; C. Sorenson, £100; W. Aitken, £lB 10s; W. Gunson, £45; P. James, Rahotu, £75; W. H. James, Rahotu, £250; E. Wallis, Opunake, £6 8s 6d; T. P. Hughson, £65; Wai Yep, Opunake, £4O; J. P. Burton, Opunake, £9; P. Holmes, Opunake, £3 7s 6d; Clement and Son, Te Kiri, £22 10s; N. Reardon, Opunake, £l4; T. S. Hickey, Opunake, £2 15s; Miss McDonald, Opunake, £3 7s; A., Richards, Opunake, 16s; Lyttle and Holmes, Opunake, £2O; E. N. Reynolds, Oaonui, £l4 7s 6d; E. Lewis, Opua, £7 15s; J. Martin, Opunake, £2O; Mrs. E. Hammond, Opunake, £120; J. Wallach, Opunake, £45; H. B. Gibson, Opunake, £l4 15s; A. Williamson, Opunake, £4B; A. E. Parkes, Opunake, £4 16s; A. Birkett, Opunake, £9B; J. Sinclair, Opunake, £36; A. Grover, Opunake, £7 15s. Total unsecured creditors, £5900 4s 6d.

Other liabilities: Mortgages, Public Trustee, £500; C. E. Middleton, £525; arrears of rent and rates, £5OO.

Value of real estate: Section 1. block 15, Opunake S.D. ’(1174 acres), £3590;• section 50, block 9, Opunake S.D. (30 acres), £900; section 49, block 9, Opunake S.D. (27 J acres), £150; total, £4640. BANKRUPT’S STATEMENT. Bankrupt put in a signed statement, as follows: “I have been engaged in farming from boyhood. 1 managed my late father’s estate for ten years after bis death, for which 1 only received expenses. In 1919 the partnership between my sisters and myself was dissolved by mutual consent. We had an agreement drawn up, and I was to receive the farm 1 now hold and 50 dairy cows; also one-third of the 1919 profits. The latter was a verbal agreement, and was afterwards repudiated by my sisters. The property on which I lived at that time was, according to the agreement, to be handed over on August 17 of the same year, and, on my solicitor’s advice, I resolved to retain possession until such time as I received the- season’s profits. Following this my sisters sued me . for £350 mesne profits, this, with legal I expenses incurred in an endeavor to recover at law, making a total loss of £1166. I then raised a loan on my present property to build a dwelling house and sheds. I paid twelve months’ interest in advance to secure the money, and my sisters refused to hand over my deeds, and the loan was cancelled. After, Messrs. Newton. King, Ltd., as agents for two returned soldiers, bought in November, 1920, 40 dairy cows at £22 per head. I then bought 30 dairy cows at £l7, and 46 Jersey heifers at £26 per head. It was then f received word • that the returned soldiers would not take delivery of the herd, and I h&d the whole lot thrown on my hands, and had to lease another place to carry me through, which entailed considerable expense. Five cows died, and I have abortion on the farm, and with Newton King pressing me I was compelled to sell the herd in August, 1921, at a heavy loss. The Loan and Mercantile Company got a judgment against me for £6OO, which compelled me to call a meeting of creditors. Late last year I entered into an agreement with some of my creditors, and trustees were appointed. I understood that the farm would be carried on under this agreemenr for some time, and consequently I quite expected to pull through in time. I had accordingly arranged with several of my creditors —personal friends—not to put in a claim, as I hoped that when finally my assets were realised I would have sufficient with which to pay them. In December, however, the trustees appointed under assignment advertised my place for sal.?. My friends then saw me, and I realised that I must put them in. I attended a meeting of trustees early in January at Eltham, and I then realised that the creditors were determined to sell me up as quickly as possible. On returning to Opunake that evening I consulted with - some > of my friends and decided to file. I honestly believe that a settlement of my affairs could not have been equitably arrived at except by bankruptcy.” Bankrupt., on oath, supplemented his ■ written statement as to the selling of the line of 40 heifers to two returned soldiers at £22 per head. This sale was endorsed by the Crown lands ranger by signing 1 across the note of sale. The agents were . Newton King, Ltd., from whom he later bought 30 head of cows at £l7 to replace the ones he thought he had sold. Mr. King assured him that rhe returned ‘ | soldiers would have to take delivery of the ' I heifers.

THE DISCUSSION. Mr. Weir, on behalf of the trustees (Messrs. Shaw, Stubbs and Rogers), who assigned the estate and arranged the sale, gave the position from the trustees’ point of view, stating that they had had nothing but worry and trouble for many months, owing to Cross’ antagonistic and provocative attitude throughout. Asked as to what prompted him to file a petition in bankruptcy, Cross said that he did so in order that all claims could be paid. Bankrupt further stated that he did not sign the assignment given to Mr. Rogers because it appeared that he could be sold up at any time, though Mr. Rogers, while giving no promise, said that he would not need to fear that for two or three years.

This statement Mr. Rogers repudiated, and said that, bankrupt was under a delusion. He had been prepared to help Cross all he could, for the safe of friendship with his late father, and made a proposition at. the last meeting of trustees, which he had been prepared to back up. He also drew attention to the fact that the total claims wore now in the vicinity of £BOOO, whereas they hajf been

put down at about £6OOO. It was his opinion that some of the claims were not justified. In answer to Mr. Shaw, bankrupt said that he believed the present list was a full one, except for two debts of honor lof £27 and £5 respectively, and another small amount of £4. Besides these, he was not aware of any other large creditors. Mr. Rogers objected that the statement was not correct, to say the least of it. The trustees alone had found liabilities to the extent of about £BOOO.

The D.O.A. suggested that some of the claims might have been underestimated. In some cases probably claims for interest on loans had not been put in. Bankrupt stated definitely that he admitted all the claims on the statement.

Considerable discussion ensued on the question of whom the furniture belonged to. Bankrupt claimed that it was his wife’s, as he had bought it from Purser’s, Ltd., and given it to his wife. He stated that he got iron and timber from a foUrroomed cottage belonging to his wife, valued at £BO, and his wife paid him £65 16s 9d, as evidenced by his bank passbook.

Mr. Weir produced a statement of claim for the amount of £65 16s 9d, showing that it had not been paid in. Mr. Weir also objected to several claims for wages, including one from Cross’s stepson for six weeks’ wages at £1 15s per week. The D.O.A. asked what about the disputed 18 cords of firewood which Cross had not allowed the auctioneer to sell, as he maintained that it has been left to him by permission of one of the trustees for his own use.

Bankrupt: "I would not be here to-day if it wasn’t for that 18 cords of firewood !”

Mr. Rogers explained that he told Cross to take a few cords of wood, as he recognised that bankrupt must have some. Cross thereupon took all the good rata, and was now publicly misconstructing the arrangement.

Mr. Shaw said it was ridiculous to suppose Cross needed 18 cords for his own use, as he would probably only be in occupation for a few months at least. The auctioneer who had conducted the sale was told to leave a cord for Cross’ use, whereupon bankrupt asked if they wanted to take his shirt. Mr. Shaw maintained that the trustees had acted in a perfectly reasonable way throughout, but this Cross had not appreciated and had shown nothing but antagonism right through the piece.

Mr. Stubbs (one of the trustees): “What about the 30 sheep included in the deed of assignment ?”

Bankrupt: “Oh! I’ve eaten them.” Mr. Shaw: “We saw a lot of skins hanging on the fence.” (Laughter.) Subsequently bankrupt said he had neither sheep nor lambs to offer as assets. ~Mr. Shaw, speaking in reference to the 274 acres, said the lease had only two years to run, without the right of renewal. The trustees had placed a reserve of £2OO on the goodwill. SUPERVISORS APPOINTED.

On the motion of Mr. Stubbs, seconded by Mr. C. Sorenson, Messrs. S. W. Shaw and G. W. Rogers were appointed supervisors to consult with the D'O.A. in disposing of the estate, remuneration to be according to that allowed under the Bankruptcy Act.

Bankrupt offered to carry on for a year or so on the bare cost of living if this was of any use to the creditors.