TOO MUCH PEPPER

Wanganui Chronicle, Volume 79, Issue 85, 11 April 1935, Page 7

TOO MUCH PEPPER

ADAIR CO.’S BANKRUPTCY. RECEIVER’S STATEMENT. LONDON, April 9. The bankruptcy proceedings in connection with the Adair Company^ disclosed liabilities amounting to £447,308 and assets of £147,744. The official receiver, Mr. Phillips, declared it was difficult to reasonably explain the conduct of the directors in arranging forward contracts in pepper amounting approximately to £1,000,000 when the company’s capital was only I £30,000. It was cabled on February 10: The Observer says that the attempt to corner white pepper collapsed, large!} because it was engineered by outsiders speculating in a commodity on whicl they' were insufficiently' informed am apparently did not realise that, if th< differences in prices of black anc white pepper were pronounced enough it would be profitable to convert black in which the problem is orderly market ' ing. Four years’ normal supply is non l accumulated in London. J. F. Adair and Company, rubbe; , brokers, were “ posted ” on Saturday 7 s They 7 state that they are not connectec : with the pepper pool. They acted it ! good faith as brokers’ agents.. The rubber market on Saturday was nol ! affected, and closed firm.