THE FELT BONUS.

New Zealand Mail, Issue 1425, 22 June 1899, Page 49

THE FELT BONUS.

AN OFFICIAL’S STATEMENT. Mr Amelins Smith, has made a statement to a “New Zealand Times’” reporter in regard to the proceedings at the meeting of creditors in the bankrupt estate of George Shaw, wool-carder, Wellington, which was held at the Official Assignee’s office on the Bth instant. It may be remembered that Mr Smith was the inspector in connection with the bonus offered by the Government for the manufacture of felt cloth. The original offer was one of a bonus of £SOO on the production of £SOOO worth of felt. In consequence of certain representations, the conditions were altered so as to provide for the same bonus on £IOOO worth of material. Mr Shaw, at the meeting, made the following statement: —“Mr Amelins Smith, Government Inspector, came t 6 the factory, and on the strength of his report, the bonus was obtained of £IOO, though there was nothing like £IOOO worth of felt manufactured. The firm bought only £57 worth of wool, of which one bale was now left. Lt was understood that Mr Smith would make arrangements so that the company might be entitled to £SOO bonus at ti e production of £IOOO worth of goods.”

Mr Smith says this statement is mislead ing. Mr Sparks Philp, who was a partner with Mr Shaw in the business' intends to carry on the business. An expert partner will in all probability be secured by Mr Philp, who is a butcher carrying on business in Cuba street. Mr Philp has sunk £llOO in the fclt-maaing venture. His wife has advanced about £3OO on the security of property : n England. Mr Shaw’s debts amount to about £l5O. Mr and Mrs Philp are. in fact, secured creditors. Mr Philp is not going to sacrifice the large sum he lias at stake, and. moreover, ho considers the business n good one. He has. adds Mr Smith, had promises of orders for felt from most of the principal wl.r’osale houses in Wellington, and he intends to continue manufacturing, so as to be able to claim the remainder of the bonus. When Mr Smith recommended the payment of part of the bonus on account, the business was being carried on, and several hands were employed by the firm. At present operations are suspended, in consequence of the bankruptcy cf Mr Shaw, but Mr Smith repeats that this does not affect Mr Pbiip, who v. ill continue the business at an early date. The firm has a considerable stock of manufactured felt in hand.

The Official Assignee has made the following statement: —“The firm of Shaw and Philp is not bankrupt, and f he solvent partner is likely to carry on the business which has now been iairlv established ; also, he is likely to claim the remainder of the bonus (£-100) when a sufficient quantity of material lias been manufactured with the present plant and building, which cost him about £1100.”