BANKRUPTCY CASE.

Taranaki Daily News, 24 March 1922, Page 6

BANKRUPTCY CASE.

SHAREMILKER’S FAILURE. AN UNUSUAL CASE. LARGE AMOUNT INVOLVED. A meeting of creditors in the estate of J. R. White, of Riverlea, was held at New Plymouth yesterday, the D.O.A. (Mr. J. S. S. Medley) presiding. Proceedings were rather remarkable owing to the fact that there were only two creditors, one of whom was bankrupt’s father. The latter, though not present- was represented by a solicitor, but as his claim had not been proved all the voting power was held by one man. Bankrupt’s liabilities £IIGO, made up of the following debts: —L. H. Prestidge, farmer, of Hawera, £4OO, and A. White, farmer, of Kaponga £7OO. The latter debt had not been proved up to the date of the meeting. There were no assets. Bankrupt was represented by Mr. H. B. Gibson, who also appeared for White senr. Mr. H. L. Spratt (Hawera) appeared for Prestidge. BANKRUPT’S STATEMENT. The following statement of his position was presented by bankrupt:— Before the war I carried on farming pursuits as an employee and a share-milker in different parts of Taranaki. I enlisted with the N.Z.E.F. on November 14, 1916, and served in France, being gassed at Paschendale, and wounded in the left arm and the stomach at Bapaume. On leaving New Zealand I was considerably in my father’s debt. I also suffered from shell shock whilst on active service. I was discharged as being unfit for active service, and returned to New Zealand in March, 1919. Later in that year my father bought a farm at Manaia, and I was given an interest in it. I paid nothing of the purchase money, but received money to live on from my father. I was considerably in my father’s debt at the time I started fanning. I am not a scholar, and have never had anything to do with books or figures. My father received all cheques. There was a bill of sale over everything to the Manaia Loan Company. In 1920 our place was sold, and I was given to believe that after paying off the loan company I would have £5OO to £6OO. Accordingly I saw Messrs. James and Gillman, land agents, and arranged to look at farms through them. / My father promised that if I bought 3 place at a reasonable price he would assist me with finance, provided be approved of the place bought. On several occasions Mr. James and his employees called on my father, and each time they were warned not to let me sign an agreement unless he had inspected the farm. On inspection I liked the look of Mr. Prestidge’s farm, but of course I had not enough money to buy it. I did not want to sign up for the farm, but the agent said there were a lot of people after it, and I might miss a chance. He pointed out 4hat, even if my father would not help me, I could sell the place at a profit of £5OO, whilst all I had to risk was £2OO. After much persuasion I signed an agreement and gave a promissory note for-the deposit as I had no money. My father was very angry on learning that I had bought the farm, and before July (the date for possession) I attempted to sell the farm in every direction. The price I had agreed on w&s £175 per acre, and £24 per head for the cows. However, no one would buy, and I decided to lose my deposit. On taking legal advice, however, I found that I could not get out of it in this way, and could be sued for damages. Accordingly my father was prevailed on to finance me, and a security was prepared and the deeds got ready for completion. On July 1 my father consulted Mr. Gibson, who pointed out to him that at the price it would be impossible for me to pay my way, and probably he (my father) would lose everything in the farm also. Accordingly the sale was never completed. Several very reasonable offers were made to the vender by my father in an attempt to stay an action for damages, but the vendor insisted on specific performance, or damages amounting to £lBOO. This my father would not pay, and on July 6 he gave me £3OO and told me he would have nothing more to do with the matter. I was harassed by the agents and Prestidge, nad my nerves gave way, and accordingly I went away from Taranaki. I went to Auckland, where I boarded for six months with my wife and family. Several substantial offers were made by my father whilst I was away in settlement of the matter, but these were refused, and subsequently an order was made for substituted service and the action brought on. This dragged on for a long time, and an action . was also taken in the Magistrate’s Court by the land agents, which I defended. This has never been concluded. Ultimately I consented to judgment being written up in the Supreme Court for £4OO. My father offered £l5O in settlement of this, but this offer was refused, and later Prestidge moved for a charging order, alleging that moneys were due by my father to me. As neither my father nor I had any more money for legal expenses to fight this I filed. I have nothing except my last month’s cheque, which is barely sufficient to keep me going. My wife received this cheque of £l5 odd. My father has paid me many other sums in cheques and cash besides the £3OO. All this has been spent in keeping me whilst I was ont of work some twelve months. I owe no other money except to Prestidge and my father.” Bankrupt, under oath, said he was still sharemilking in the Riverlea district, his employer being Mr. J. R. Gargan. The basis was that witness was to receive 35 per cent.; he had a wife and one child to maintain. The agreement was made with his wife, as she had stipulated that she would not work unless she got the money. In reply to Mr. Spratt, bankrupt said his wife said she wanted the agreement in her name, as he had lost the other money. This referred to his visit to Auckland on holiday. He did not know the name of the hotel he stayed at on that occasion. When he bought the farm James (land agent) said it would pay if the price of butter-fat kept up; witness relied on James. He told James he had about five or six hundred pounds. Mr. Spratt: To buy the farm you had to pay £1350 cash; why did you buy it? —I told James I only wanted to lease a place; he thought I could pull through. .James told Prestidge that I could put up the £1350.

Continuing, bankrupt said he bought the property because James had told him that if he could not finance it he could make £5OO out of it on a re-sale. He gave the farm the same day to sell at an increased price of £5OO. He bought the farm in July, 1919, at £llO per acre. Examination by Mr. Smatt _wm .

ing when Mr. Gibson announced that bankrupt desired to return by the afternoon train, as he had to ride from Stratford back to his home in Riverlea. Mr. Spratt objected, and commented on the attitude taken up all along by bankrupt. “You could have settled this in July, 1919,” said Mr. Spratt, addressing White, “but you bolted to Auckland for six months. We had to advertise the notice of thi writ, and when it was served on yotfr father you suddenly turned up.” Bankrupt said he did not tell his relatives where he was going, and it was not because his father was served that he returned.

Mr. Spratt: “It is remarkable for a man living in district where a number of relatives also reside that he did not tell them where be was going. Now you come here to-day and want to get away after an hour’s examination.” Mr. Spratt added that White was late in coming to the meeting, and when he did put in a statement it was not, he alleged, a true one. Bankrupt said he must get back, as he had stabled his horse at Stratford. The animal was a borrowed one, and he had promised to return it to his neighbor that night. He had no money to enable him to stay in New Plymouth overnight. In reply to the deputy official assignee Mr. Spratt said that he had only touched on the fringe of his examination, and they wanted to get at the bottom of the whole thing. After further discussion it was decided to apply for an examination of bank’ pt before the magistrate at New Plymouth, and the proceedings were accordingly adjourned.