DOGGED BY ILL-LUCK.

Waikato Times, Volume 108, Issue 18139, 2 October 1930, Page 7

DOGGED BY ILL-LUCK.

EUREKA FARMER’S FAILURE

HEAVY DEBTS INCURRED.

. SYMPATHY OP CREDITORS. Attributing his failure firstly to the financial depression making it impossible for him to re-arrange the mortgage on his farm, secondly to the failure of a quarrying venture entered into by his father and thirdly, to the expense of his wife’s illness, a young Eureka farmer, named John Clarkin (the younger), faced a large meeting of creditors in his filed estate at the office of the Official Assignee, Hamilton, to-day. The Official Assignee, Mr V. R. Crowhurst, presided. Bankrupt’s schedule showed total unsecured debts £1455. His assets were stated at £9OO, of which £IOO was represented as surplus from securities and £2OO worth of furniture. His deficiency was stated at £554. In a written statement bankrupt said he started farming on his own account in 1919. He obtained a loan of £2,000 on the property and £SOO on the stock from the Government as a returned soldier. The land was then peat swamp. Within three'years he had ploughed the whole farm with the exception of about 30 acres. By that time he had 35 cows and accepted an offer of £5 a week from his father in a quarrying venture. He worked with his-father for five years and put share milkers on the farm. The quarrying venture was. a failure and his fathei had to assign his estate. He (bankrupt) received nothing from his father during the w“ ole of that time above his keep. Ik was a creditor in his father’s estate but received no dividend. He later tried to put his place at Newstead in order with a view to leasing it from him and working it in conjunction with his own place. He was on his father’s farm for about twelve months and then got married.

Loan From Dairy Company. When his father assigned his estate he (bankrupt) had to quit. He went back to his own place in October, 1928. He was milking at that time 38 cows. His returns for that year totalled about £642, although all he received was £290, out of which he had to pay the usual running and living expenses. The balance of the milk cheques was absorbed by orders. 'His wife then fell seriously ill. In 1929 his returns totalled £667, out of which went to orders, leaving him only £32 on which to live and run the farm. He obtained a loan of £SOO lromi the Dairy Company with the backing of four guarantors. His overdraft at t e time ,was £450. He purchased a car for £325, paying a deposit of £55 and giving promissory notes for the balance at the rate of £7 a ontl K now realised that he should not have done this. The car had since been 'seized. He had paid in all on it £l2l. He increased his herd to 50 cows with the aid of an advance of £loo from the Commissioner of Crown Lands. Owing to the failure of a millet crop, his cows ran short of feed k®' experienced serious mortality among his herd. He had done a lot of planting, on the farm. Last'winter he accepted relief work at 15s a day, but the illness of his baby boy swallowed up a good deal of this. He attributed his failure firstly to'the quarrying venture Had he remained on his own farm the whole time, he thought his position would have been stronger. His wife s illness had also meant considerable expense and the general depression and drop in prices had made it impossible to re-arrange or increase his mortgage. • Farm Over-valued; In answer to the Assignee, bankrupt said that when he went back to the farm three or four years ago he owed •ipout £3OO. In 1928, his debts were about £4OO and about £IOOO had been contracted during the past two years. Apparently he had been insolvent since 1928, although he thought he had more eouitY in the farm, which apparently Iwas over-valued.- He had received in milk cheques since January last about £SO. The Assignee: What trade debts have you Incurred this year?—About £SO. v * I The Assignee:—ln September, 1929 you obtained a loan of £SOO from the Dairy Company. To what did you intend to apply the money? _ To help' to reduce my bank overdrsft* i The Assignee: And how. did you hope to improve your.position? i gy a general re-arrangement. I The Assignee: And all you did was to Increase your liability. I Asked if he, had any offer to make Jto his creditors, bankrupt said he had | The Assignee said that so far-as he 'could see there was no equity in the 'nrooertv for the creditors, as the whole was secured to the Crown. The only asset bankrupt had was 'furniture worth £2OO. The Bankruptcy Act allowed bankrupt to retain £SO worth of furr niture. , Although the meeting .was a large one, none of the creditors asked any QU A St motlon by Mr W. McCabe that bankrupt be allowed to retain his furniture was carried. . It was also decided to relinquish bankrupt’s farm property to the Crown. motion to facilitate bankrupt s discharge moved by Mr R. English was carried. _____________