SAWMILL BANKRUPTCY.

Wanganui Chronicle, Volume LXXVI, Issue 18248, 5 August 1921, Page 5

SAWMILL BANKRUPTCY.

CR editor s 'Examination

YESTERDAY’S PROCEEDINGS.

BANKRUPTS PASSED. The public examination of Hardy and Me William was continued before the Registrar of the Supreme Court yesterday. The cross«-exanfi nation of A. McWilliam was continued by Mr Slipper, who sought to show that the estimated profits were excessive and that there was unnecessary delay in erecting the mill. Bankrupt was examined as to giving a bill of sale over the piant Hot paid for and as to the prospects of paying. Mr Slipper: You were absolutely sure you were going to win out? Bankrupt: Absolutely, on the prospects. Mr Slipper said bankrupts were very far out. Bankrupt described how ’he had first learned that Clausen had cut off the finance and how he and Hughes had interviewed Clausen. Clausen said, he had other obligations and could not finance them further. Bankrupt told Clausen he had left them in a hole, and

he apologised for doing so, and advised them to sell the mill. Bankrupt said no limit had been fixed by Clausen. To Mr Hutton: Bankrupt had had no experience of bush sawmilling. Hughes, who was recognised as an ex, 4 - perti, estimated that timber could be put on the trucks at Raurimu at 12s 9d 100 superficial feet, after paying all expenses, including interest. He did not know that a mill could not be expected to make more than 2s 6d per 100 feet. It never occurred to bankrupt to ask where the £6 a week was coming from. He had to live. They had made £4OO or £5OO profit in four or five months out of and Hartley’s timber. Replying to Mr Armstrong, bankrupt said that at one time his solicitor (Mr Burnett) had been advised that the Wanganui Furniture Company was taking over the mill. With the object of effectlpg the deal, the dissolution had been arranged and the creditors written to.

In describing the history of the venture, bankrupt said he based the estimate of £l5OO made to Clausen on the strength of the cost of a plant they’ could have got at Ohakune. This was complete except for the hauler. The hauler they got from Collett cost £B5O. There was quite six weeks’ delay in getting one owing to Oza line’s failure. None of the business firms ever asked as to the financial position. To Mr Slipper : He did not tell them. To Mr Turnbull: He never said that Hardy sent. was a partner, nor did Hardy jnr. Bankrupt presented a. statement prepared by Hughes, which showed that he estimated the cost of timber at 12s 3d, including interest on £3OOO, which included the value of a hauler. This concluded the evidence. On the application of Mr Turnbull and Mi- Armstrong, and on the consent of Mr Hutton, the Registrar made an order, in terms of the Act, that bankrupts had passed their public examination.