AUCKLAND FARMER’S FAILURE.

Taranaki Daily News, 7 March 1922, Page 7

AUCKLAND FARMER’S FAILURE.

EXCHANGE OF PROPERTIES. TARANAKI INTERESTS. The schedule of Francis Thomas Meyer, farmer, of Otahuhu, who was adjudged a bankrupt bn February 3, shows that the total debts amount to '£0523 16s 4d, all to unsecured creditors. The only assets are book debts estimated to produce £2UI Is Bd, and there is thus a deficiency of £9266 T4s Bd. In his statement, bankrupt says that prior to July, 1918, he owned equities in 11 properties. Six of them were exchanged for a farm of 29,000 acres near Blenheim. This was subject to a mortgage for £29,000, while bankrupt was financed to the extent of £4OOO. by which 8500 sheep that were on the farm were bought. The winter in 1918 was very severe, and the snow killed 3000 sheep. Finding that he could not carry on and pay interest on £55,500, bankrupt exchanged this property for 4354 acres at Mahoe, Taranaki, which was subject to a first mortgage of £B5OO and a second mortgage of £4400. At Mahoe he was not able to carry on successfully owing to lack of capital. The place was mostly unimproved, and would yield no return until money had been spent on it. The interest fell into arrears, and the mortgagees threatened to sell. Four different exchanges were attempted, but the deals fell through before completion. Finally the mortgagees sold the property under Supreme Court order. The position regarding a Tauranga property was similar to the Mahoe one. Neither farm would yield profit unless improved, and the bankrupt had not the money for the improvements. The mortgagees at last stepped in and sold. By these sales bankrupt lost equities at Mahoe and Tauranga amounting to £lO,OOO.

Bankrupt attributed his failure to the loss of 3000 sheep, land deals falling through by reason of delay and bad faith, and payment of agents’ commissions and stamp duty. The slump at the beginning of the war also had an adverse effect. For two years he struggled with large land areas and accumulating interest. Had he had the money that was represented by the sheep and clip he would have had no difficulty in keeping level with the position and holding the land to sell advantageously.