A FARMER’S MISFORTUNES.

Taranaki Daily News, 24 August 1922, Page 6

A FARMER’S MISFORTUNES.

; FATAL DROP IN PRICES. UNSECURED DEBTS £8991. MEETING OF CREDITORS. A meeting of creditors in the bankrupt estate of Francis \V. Court, formerly a sheep farmer of Puniwhakau, and now an agent, of Stratford, was held at Stratford yesterday, Mr. J. S. S. Medley, Deputy Official Assignee, presiding. The following creditors were present: Messrs. C. D. Sole (Stratford Hospital Board and Bellringer Bros), M. C. Aagaard and H. E. Abraham (Newton King, Ltd). Mr. P.-Thomson appeared on behalf of bankrupt. Court was adjudged bankrupt, on his own petition, on August 10 last. The following is a list of the unsecured creditors: R. Hannah and Co., £1 8a lid; Egmont Coach and Carriage Co., £1 15s 7d; Bellringer Bros., £8 5s 3d; M. C. Aagaard, £8 13s 6d; H. J. Hopkins (now W. G. Liddell).. 12s 6d; W. Curd. £1; J. H. Robson, £2 ss; Hospital Board, £8 Is; G. Syme and Co., £8 2s 2d; D. J. Malone, £3' 4s; National Bank of New Zealand. £45 Is; A. Jones, £180; J. Godkin. £3 12s 6d; W. Marsh.ill, £lO la 9d; A. J. Griffiths £4 ss; Taranaki Herald and Budget, £1 10s 6d; W. A. E. McCutcheon, £lO 10s-, W. A. Keiller. £2200: Loughnan and Jacobs, £5 6s 3d: McLean Institute, £2B'6 16s 2d; Newton King. £6200; total. £8991 Is Id.

The following statement was submitted to the meeting by bankrupt: “Seven years ago. in exchange for my Whangamomona business—my capital being roughly estimated at £2OO0 —I took up 1200 acres at Puniwhakau. The farm had been neglected, but I considered that, with the assistance of my family, it could be very much improved and made a permanent home. Owing to the neglected state of the farm the carrying capacity was not large, but we at once started to remedy this. Several miles of fences were erected, tracks and bridges were built, and large areas of scrub and fern were cut. burnt, and resown with grass. A 6onisiderable amount of bush was felled, forty or fifty acres were stumped and ploughed, new sheep and cattle yards were erected, and a lot of other improvements were carried out, including a practically new house. While at first the returns did not meet expenses, yet the value of necessarv improvements more than counter-balanced this.

“Periodically I went Into my position with Mr. Newton King to whom I was indebted for stock. This, he considered satisfactory, as, after about two years, he wrote suggesting that I should take over an adjoining farm of SOO acres, stating that no capital was required, and afterwards he said that I could have any stock I required. Finally, this place was taken over in Mrs. Court’s name, on the understanding with the Land Board that it should he transferred to my sons when they returned from the front. This was eventually done, but we continued to work the farms together. About four years ago I incurred a serious Joes, ow’ing to having placed about 600 wethers in the stock agents' hands for sale and missing the market, as a substantial drop had occurred. I decided to try to carry them through the winter, but it proved to lie a very wet one. followed by a .ate spring. This resulted in my losing a let of stock. I may add that many experienced neighbors had the same unfortunate experience. I went into matters with Mr. King, who sent one of his staff out. and on the strength of his report I sold all the stock, except the very best, and then re-stocked the whole farm; also starting to milk 20 cows and making preparation to milk abrut 40 the following season. I have no doubt that with the assistance of my family I should soon have got matters on a good basis, but the drop In values of stock and wool made this an impossibility.

“As soon as I realised my position I put the matter before my mortgagees, and after making inquiries, they agreed to assist ine in any reasonable way. and an arrangement was arrived at which practically meant that they would capitalise my interest for two years. I then suggested to Mr. King ‘that he should make me a rebate on mv total indebtedness, pointing out the large h a ~ P a *d him while in business at Whangamomona, and that all my business while on the -farm had gone through his hands. I considered my request a reasonable one, as over the whole period my account had borne a fairly high rate of interest, and commissions of one kind and another meant a large amount. I also suggested that the interest on my liability should be at a flat rate of 8 per cent., instead of 10 per cent, on three monthly promissory notes, as under the existing arrangement the rate really amounted to nearly 12 per cent, when the stamp duty was 1 added, and it, was an impossibility to pay it. Mr. King did not seem inclined to meet me, but suggested that he would carry me on if I accepted my mortgagees’ offer, but I considered their offer, without any rebate from Mr. King, as useless, as it only meant increasing mv liability to my mortgagees. At the end of the two years I should be in no better position, or worse off. as no rise in stock or produce could carrv such a heavv load of interest.

“Several weeks later, after undergoing a serious operation, rendered necessarv throuffh worry and overwork. I again met Mr. King, but could not come to any arrangement. After getting the best possible advice from practical business men T decided to give up the farm. Mr. King undertook to write to the mortgagees and then took over the stock. On the advice of my solicitors I decided to seek the protection of the Bankruptcy Court, as in leaviner the farm T was losing all I had and had to make a fresh start. Mr. King then suggested an assignment, but some of the creditors have declined to sign, and there is no other course open but tn file my petition. This T do with great regret. The Puniwhakau property has been sold up by the first mortgagees. This leaves the second mortgagee as an

unsecured creditor for £2lOO, and a balance of interest and expenses still owing to the first mortgagees. The whole of my stock and chattels were under bill of sale to Mr. King, and have been mostly realised, leaving a balance of £6OOO still owing to Mr. King. I have no assets but a *w meat company shares and a wool clip. “We took up the farm solely with the idea of making a permanent home, and not with any idea of speculating, and my present position has been forced on me by the phenomenal drop in the value of wool and stock, and other circumstances over which I had no control. Fortunately, I secured a position on a salary which meets my living expenses.” The meeting came to the conclusion that there was nothing to be gained by going further into the matter, and on the motion of Mr. Abraham, seconded by Mr. Sole, it was decided to recommend bankrupt’s discharge.