"A REALLY GOOD TRIER."

Auckland Star, Volume LVIII, Issue 108, 10 May 1927, Page 8

"A REALLY GOOD TRIER."

GUM BUSINESS FAILS. UNPROFITABLE INDUSTRY. SLUMP IN THE MARKET. With £1548 liabilities, £650 assets, and a deficiency of £898, Herbert Archibald McMillan, trading as McMillan Bros., at Mangawai, appeared at a meeting of creditors this morning, over which the Official Assignee, Mr. G. N. Morris, presided. The bankrupt, who was represented by Mr. W. W. Meek, eaid that he cpmmcnced gum producing at Waipu about six years ago. He had then an unencumbered property, but the slump in gum had reduced its value by more than 50 per cent. He found himself faced with the question of discontinuing or moving to a better field at Mangawai. After referring the matter to his chief creditors, he decided to go to the Mangawai field, as it was considered to be richer than the Waipu one. He had been offered practically a half-share in supplying an order for 100 tons of chips at £40 a ton. Hβ supplied a portion of the order, byt later he had to sell chip? at a third less than he had expected, and bad been forced to sacrifice the product of nine months' work at slump prices. "I attribute my present position to the hopeless state pf the kauri gum market, in connection with which the prices are admittedly lower than the cost of production," said bankrupt. "During the years I was .engaged in the production of gum, neither I nor my family took holdings, and we worked throughout the period, often for ten hours a day." The bankrupt said that he was unable to make his creditors any offer. "He was a real, good trier," said a creditor. "I am satisfied that he played the game.'" Mr. Meek said that one English gum company bad had to write their capital down from £90,000 to £30,000 in two years as a result of the slump. The creditors, by resolution, decided to ask the Offjcial Assignee to facilitate the bankrupt's discharge.