HIT BY SLUMP

Waikato Times, Volume 122, Issue 20501, 18 May 1938, Page 9

HIT BY SLUMP

FARMER’S TROUBLES MEETING IN BANKRUPTCY That he attributed his failure to the fall In the price of butterfat just after he took over some property at Roto-o-Rangi in 1931, and to his place being infested with ragwort, was contained in the statement by .Tames Alexander Murdoch, labourer, of Te Rapa, to a meeting of creditors in his bankrupt estate, called before the Official Assignee, Mr V. R. Crowhurst, in Hamilton yesterday afternoon. Bankrupt said he was farming his property of 150 acres near Cambridge, with his brother, in 1931, the land costing them £2700. Of that amount £450 was paid in cash and the balance was made up of two mortgages, one to the former Mortgage Corporation and the other to the vendor, Mr A. Hewson. The place was stocked with 60 cows, 35 of which belonged to bankrupt and his brother and the balance was bought by raising a rural credit loan of £2BO. After 12 months, owing to the fall in prices, they decided that they both could not carry on with the farm, and bankrupt’s brother walked off the place. Bankrupt carried on unsuccessfully. but obtained a concession from Mr Hewson. During the slump, bankrupt stated, his place did not pay, and he got into arrears with his interest and rates, also being unable satisfactorily to check the ragwort. As he decided that he would have to sell, he did not apply for relief, and when the State Advances Corporation took action, in 1937, the best price he could obtain for the property was £l2 10s an acre. This was not sufficient to pay the mortgagees. Realisation of Assets After the sale of the farm, implements and stock, except for 14 cows,*" there was sufficient to pay the State Advances Corporation, arrears of rates, power board charges, and the balance owing on the loan. A surplus of £228 4s 5d was left for the second mortgagee, but he still owed him £252 on the security of the 14 cows. Upon leaving the Cambridge property last year bankrupt’s wife was advanced sufficient money to pay a deposit on 12 acres at Te Rapa. It was Impossible to make a living there and bankrupt had received other work at £4 12s 9d a week. Owing to sickness he had been idle during the last six months, and had not been able to meet his liabilities, for which he was being pressed, and was forced to file a petition. Bankrupt’s debts amounted to £531 7s and his assets to £25, leaving a deficiency of £506 7s. There was one creditor at the meeting, and after he had asked various questions bankrupt., for whom Mr P. G. Harkness appeared, was instructed to attend a further meeting of creditors if called upon.