A SQUATTER'S MISFORTUNES.

Waikato Times, Volume XXVII, Issue 2203, 21 August 1886, Page 2 (Supplement)

A SQUATTER'S MISFORTUNES.

Mil Wm. Lockkuit Mortox, of Caro-line-street, South Yarra, gentleman, a colonist of many years standing, on July 2, obtained an unconditional certificate in the Insolvency Court, before Judge Quinlan, on the application of Mr .1. M. Campbell. The insolvent's affidavit revealed an extraordinary state of affairs. It set forth that in the beginning of the year 18S0 he was possessed of cash and personal property to the value of £6000, and freehold property fronting Albany and Malvern roads, consisting of nearly 3 acres, its value at that time being £500 per acre. In the month of April, 18S0, he went to the Albert district, New South Wales, to reclaim, improve and stock certain blocks which he had previously taken up in th.it neighbourhood. Ho caused tanks to be excavated, and wells to be sunk and several miles of tencimr to be erected at great expense. In 18S1 he purchased (iOOO ewes from Mr Wm. Hallulay, of Brookong, in New South Wales, at 7s (id per head. In ISS'2, in order to provide more money to improve and stock the station known as Salisbury Downs, he obtained a loan of £3000 from the late Mr Richard ( rrice, giving him a* security a mortgage over his Toorak property. In the early part of 1883, nearly 100 miles of fencing had been erected, and about 5)0,000 cubic yards of earth excavated in forming water tanks. A wide, deep canal 6 miles loujr, was made, to carry water from tho 8001100 River basin to h, dry lake, and several miles of drains constructed, to permit of the storm waters flowing into the tanks. He had also caused a homestead to be erected, and purchased a number of horses and cattle sufficient for the work of the station. At that time he was indebted to Messrs R. Goldsbrough and Co., to the extent of about £2100, and had bought £9000 worth of sheop from Mr Harvey Paterson. To meet these liabilities he borrowed £30,000 from the Trust and Agency Co of Australasia, of which Messrs' Gibbs, Bright and Co were the Melbourne airents, and as security gave a mortsra = 'c over the station, and a socond mortgage over the Toorak property. With the proceeds of this loan he paid off the amount due by him to Messrs Goldsborough and Co , and to Mr Paterson. In consequence of illness in his family, which resulted in the death of one of his sons, he afterwards resolved to sell his station, which was then stocked with 26,300 sheep, over 20,000 being ewes in lamb. He had expended on the purchase of stock, stores, improvements, freight and stock over £30,000. and valued the whole property at £84,000. An offer of £65,000 cash was made him in January, 1883, but he considered it too low, and did not accept it. In October of the same year, when his stock had increased to 36,000, including lambs, he received a telegram from his overseer that the sheep were getting short of water. In company with his youngest surviving son he returned to the station, and found that all his tanks had become dry. The sheep were taken to a creek on an adjoining station, which soon dried up too. The stock were perishing rapidly, and he set off to Wilcannia to make arrangements for their removal. Whilst on the way his son, who was accompanying him, was taken ill with rheumatic fever, and he was unable to leave him. The sheep were abandoned, and all but 14,000, including- 2000 stud ewes, were saved at a well, and 9000 were subsequently mustered and sold for 2s Gd each. Immediately this transaction was concluded abundant rain feli on the station, and the drought was brought to an end. On his return to Melbourne he learned th-it the Tru»t and Agency Company would do nothing to aid him in repairing the disaster. Messrs Etter•.h.'ink, Eaglestoue, and Mann were willing to re-stock the station and carry it on, but the company would give them no !iH.-ur:mce that they would not effect a seizure of the sheep, and their negotiations were therefore abortive. At the same time he had an opportunity of purchasing on ciedit 8000 ewe I*,1 *, with well grown Limbs jriven in, at 83 per he;id, which were then on the Nntherthuusye station belonging to Messrs Kennedy, for agistment, but the agents of the mortgagees prevented tho purchase by imposing condition-, which hindered him from giving any security to vendors. The sheep were subsequently sold to their brother, Mr Robeit Kenedy, of Wonnomcula, at l'is each. For about two years afterwards, with teed in grpat abundance and an overflowing supply of water, his station vvah kept vacant. Recovery from the disasters caused by the drought was impossible and utter ruin inevitable. In June, 18So, he considered he was worth £45,000, clear ot all liabilities, assuming the station to be worth only the £65,000 cash offered for it, and his freehold land a Toorak, according to the valuation of Messrs C. J. and T. Ham, worth £1100 per acre for 3 acres, and £1000 per acre for the balance, and al.«o taking into account the personal property in his possession. Duriug the period which had elapsed since the drought broke at Salisbury Downs, at the end of 1883, the 2000 stud ewes saved from destruction had increased to 6000, and the SOOO ewes that he was prevented from purchasing, it might be fairly assumed, would have increased to over 20,000 sheep. By the spring of 1885 there might have been over 26,000 sheep again on the station, or had the offer made by Messrs Ettershank, Eaglcbtonc. and Mann been accepted, there might probably have been 50,000 or 60 000, Though he explained to the Trust and Agency Company that the re-stocking ot the station -would not reduce, but increase, the security, because it would make the station a paying concern, and permit it to redeem itself, and that if it were kept unstocked nothing but ruin to himself aud others could be expected, the company declined to allow the station to be re-stocked, alleging that the stock proposed to be put on would eat the mortgagees' grass. During the long period the station was kept unstocked he had been disposing of his personal property and sacrificing everything he possessed that was available, to raise money to carry on the station. The Trust and Agency Company were aware of this fact, and it was at their instigation, though not to the extent they desired, that they obtained assistance from some of his friends, under the belief that they would be protected from loss, as their contributions were applied in protecting the mortgagees property. In consequence of the company refusing facilities tor re-stocking the station, it was prevented from redeeming itself, and the mortgagees, by imposing the penal rate of interest of 10 per cent., whilst there was no return j from the station, increased their debt from £30,000 to £38,024 Is sd. The ! whole of the proceeds of the sales were absorbed in discharging the claim of the company, and did not yield to other creditors — to the friends who had helped to carry on the station — or to himself, any dividend. In 18S5 his real estate at Tonrak was pold by order of the Trust and Agency Company to Mr James Lorimer, for £5703 2s 9d, including interest on the bills fjiven by tbe purchaser. Towards the end of the same your the Salisbury Downs station v .is privately by the mortgagees to Mr Wm. T.iylor, of Keilor, for £3.3,000, on five voais' credit, with interest at Ilic late of 5 per cent. At the end of 1 > •"> tho insolvent, being threatened by miiiu* ot the men working on the {.station, with proceedings to recover the amount duo to them for wage.*, the mortgagees havng- declined to pay : fhem, was compelled lo srqnostrato his f">lalr This was done on the iCtli Feblnrtry lnsr, nml flip pitiitn ivonld. not p.iy 7s in tho pound. Upon tho loading of thin affidavit an unconditional certificate, and a dispensation with the statuary dividend, were, at onco granted. — The Leader.