A BIG DEFICIENCY

Daily Telegraph (Napier), Volume 58, Issue 244, 15 November 1929, Page 9

A BIG DEFICIENCY

ORCHARD INSTRUCTOR'S FAILURE. UNPROFITABLE PllOPERTY DEALS. A deficiency of £1087 3s is shown in the financial statement of Artliur Rex Grainger, orchard instructor, of Hastings, a married man with a _ young family, who has filed a petition in bankuptc-y. In a personal statement bankrupt 8ays that after the war he entered into partnership in a fruit farm. After five years of fruit growing bankrupt and his partner exclianged their orchard for a broad acre farm of partly improved land near Arapuni, whicli was suhject to a niortgage to Mr Johnston of £1500, and for some 19 sections in the town of Hamilton. To complete the transaction they raised a mortgage of £800 on tlie Hamilton sections. Prior to advancingthe money the mortgagee had the scctions valued and they sbowed an equity of over £800 above ihe mortgage. The farm was afterwards leased with a purchasing clause to two men wlio farmed it successfnlly for about two years. Then came {lie slump and they walked off the farm, which fell back into tlie partners' hnnds. Owing to the.slunip they lost all the capital that they had put* into the properties and they were unable to sell eitlier of them or to work the farnx successfnlly. Bankrupt obtaiued a ])osition as orchard instructor and had been so employed ever sincc. His partner was without means and he was left to carry the burden of the two mortgages. The mortgagee of the farm property subsequently exercised his power of sale and has since informed bankrupt that* he made ajoss of approximately £1000 Tlie mortgagee of the Hamilton sections had not exercised his power of sale, but is now pressing for payment and as it is impossible for bankrupt 1 5 pay out of his earnings, he was eompelled to iile. He helieves that if the mortgagee were willing to liold tlie sections he woukl ultimately realise .on them without loss. He owes no dehts beyond tliose connected with tlie properties and a small account at the hos,rfital. . , . "The. lisf of unsecured creditors is as lollows : — HawkeL Bav Hospital Board. £7 7s; Waipa Countv Council, £10; Te Rapa Drainone Board, £9 16s; Estate of G. M. Johnston?. £1000.