A BANKRUPT SETTLER.

Taranaki Daily News, 28 July 1922, Page 8

A BANKRUPT SETTLER.

FARMING WITHOUT MONEY. CREDITORS DISCUSS POSITION. By Telegraph.—Press Association. Wellington, July 27. The affairs of F. W. Mills, which have been the subject of discussion in Parliament, came up again at the meeting of creditors. The Crown Lands Department notified that it had been decided to realise on the Crown’s security under its first mortgage, and the sale would take place on August 3. As the regulations did not permit a reduction of the principal sum of the Crown’s mortgage, and as the offer by the second mortgagee was not sufficient to warrant carrying on the soldier in his present state, no other course was open to the department.

The Commissioner said the securities were valued by the Crown at £2968 and the amount owing was £3622. The Crown intended to claim against the estate for any balance due after the receipt of the sale on behalf of Corner, the second mortgagee, who sold the property to Mills.

It was stated that he had three offers of £l6 per acre before Mills came in. The latter put no money of his own in, Corner even paying the stamp duties and only charging 5A per cent, interest. The £7OO he got out of the property was what he had been living on since. Corner had not done what he might have done,' namely, sold out Mills long ago for arrears of interest. He had been most indulgent, but the attitude of the Lands Department to him had been most antagonistic. It was prepared to make no reductions, but want ed him to forgo either all or part of his principal.

Corner had made two offers: (1) That the Crown should pay Mills £lOOO, which Corner would accept in payment of claims totalling £3400, or (2) if the Crown would make some reduction he would waive all arrears and reduce his mortgage to £2OOO. During the discussion which followed on the question of bankrupt’s discharge Corner’s counsel said he wanted to be sure there was no arrangement between the Crown and Mills. This was in allusion to a statement by Corner that he was to be squeezed out. Further action was deferred till legal advice had been obtained as to the validity of the securities, but £l5 was voted to Mills to carry him on till the day of the sale.