BANKRUPT FLAXNIILLER.

Auckland Star, Volume XLIX, Issue 207, 30 August 1918, Page 3

BANKRUPT FLAXNIILLER.

UNSATISFACTORY PARTXK7?SHJr. A meeting of creditors in the bankrupt estate of John A. Ashcr, flaxmiller, of Tokaanu, was held at the oflice of the Official Assignee (Mr W. S. Fisher) yesterday afternoon. As there was not a quorum of proved creditors present, the examination only of bankrupt was proceeded with.

Bankrupt, in a sworn statement, said that lie started with a partner at Otara. near Tokaann, in March. 1116. Both partners were to contribute UIOO each capital. Bankrupt subscribed tlic greater proportion of liis share, but the partner only put in :CBO. It was decided to secure flaxmilling machinery owned by a native, tind valued ut .CtiOO. the owner bcin-j; taken as a third partner. Bankrupt and his partner were each to provide C(iOI). As the partner only hud i! 80 to put in bankrupt had to oversubscribe capital of about £500 to keep the partnership afloat. Finally the partner agreed to forego all interest in the Wiiiotnkn mill on payment to him of £:!00. In 1017 the partner left. and the mill was in such a bad state that it had to be reorganised. The Waiotaka mill, five miles from Tokannu. was put in working order about the middle of September, IOIIS. at a cost of about £1000. In December, Will, louses were sustained through Hoods* and trouble with native workers, but these were overcome, and they were able to repay a cash advance made by A. S. I'atcrson and Co., and to satisfy a claim from a Wellington linn f<.r .LJ47. for breach of libre contract. At least £2000 was paid to employees for lost time, withor/- any remuneration to the employers. The Otura mill started in July. 1910, but owing to bad weather and labour troubles, financial assistance to the extent of fully €4000 had to be secured: of this sum Cl'W was repaid, together with L.M7 damages for breach of contract. A cash store at the mill Biiowed a net profit of £1200. Mr. <;. M. Newton represented bankriuler examination bankrupt stated that when he entered the llaxmilling business ho held UI.OIIO in cash. Smallman, whom he took in as a partner in the venture, was an old resident of Tokaanu. The projects at the time were good, for the market price of tlax libre was CJfi per tun, while the cost of production was CM per ton. During the partnership he wns interested in another milling partnership, from which he drew He disposed of the partnership about seven months ago. Ho considered his failure in the busine-s could not lie attributed to mismanagement. He denied spendinir more time than he should have, done at races, and it was not a fact that he speculated more money than he ou-iht to have don- on horse-rncinjr. Further, lie had not l;oen careering round the country in motor . ars. After the creditors and their had discussed the position. Mr. l.onguet, representing Miwsrs. Paterson anil Co., who. as secured creditors, hold the chief assets which comprise the two mills, made an offer of C 350 to the creditors for any equity in the estate, provided that hie firm wasgiren a free hand in the disposal of the mill, and conditional upon Mr. Jones la brother-in-law of the bankrupt) withdrawing his .lain, of .tll.nOO against the estate, which, it was said, might not be preyed. It i< anticipated that the offer of Messrs. Paterson and Co. will permit a dividend of li'S in the £ to he paid. The offer Is to be submitted to the other creditors for their consideration.