A BUTTER TRADE BANKRUPTCY.

Dominion, Volume 2, Issue 599, 30 August 1909, Page 10

A BUTTER TRADE BANKRUPTCY.

DISCHARGE GRANTED, (Dγ TelecrnDb.-Rpcr.ini .'Onrreapnndent.i Palmerstort, August 28. Hans Peter Mortensen applied at tyieSupremo Court to-day for discharge in bankruptcy. . The application was opposed by Mr. Cooper on behalf of creditors. In reply., to Mr. Cooper, bankrupt stated that, before starting a dairy factory in Ashhurst, ho had had a factory in Shannon which was a failure, the mortgagees (Dalgety and Co.) taking it over. When lie started the Ashhurst business he owed about £50, but had some property at Hokowhitu, .which realised:£lßo. He.therefore- had £130 to ijtajt.with. -The creamery cost £2000, and part of the purchase money was paid from a patent of his which realised £600. As far as,he remembered, ho owed the milk suppliers about £350 at Ashhurst. Ho never told anyone at Ashhurst that • Dalgety's were behind him. He had said that Dalgety's, or any other firm, could handle his butter so as to secure a ready sale. Ho had not sent a circular round to the suppliers, after starting, saying- that the Loan and Mercantile Co. were behind him. Ho had signed the names of three suppliers to the agreement. , Messrs. Witt; Hackett, and Sixtua were tho.,suppliers, and they had given permission to their names going- on tho document. Messrs. Witt and Hackett had not supplied milk to the creamery; He hac not persuaded another supplier named Huntley to sign, using. Mr. Witt's name aa an inducement. He had, at ono time, suggested that old butter , should he bought up from storekeepers, and mixed in with the butter at tho factory. That ■ was not a swindle; it was a common practice in many factories. The reason, why the butter .referred to was of second quality was.because the water gave ont at the factory. • Mr. Cooper: But returns from London show that tho last shipment of butter had too much water.—"lt had one percentage above the 16 per cent, allowed.V To Mr. Inne-s: Instead of waiting for, his returns from the London market, he had had made certain advances to_ suppliers and then discovered that he bad paid out too much on the November and December shipments. Tho suppliers had 2Jd. too much for those months. Same of the , .suppliers- had entered into an agreement.to;buy,.-file predmery for £2000, but had ■■'.a"- disagreement; .among themselves, and; refused : to ;carrv;, out tho agreement. They', then forced him 'jrito tho Bankruptcy. nVortgagfees then stepped in,-and tonic..the, factory.' '' Hi 3 Honour granted the ' discharge, and, in doing so, said it-had not been proved that bankrupt had bijoken any of, the penal clauses in tho Act. It conld not bo said that ho had entered into a business of a hazardous kind without sufficient capital because he had sold his patent rights. He himself had evidently lost' £800 over, the transaction, while, from his evidence, it had been proved that tha suppliers had received more than they were entitled to.for at least two months , . • .