Question Of Price To Be Paid For Wine-Making Undertaking

Wanganui Chronicle, 10 June 1948, Page 6

Question Of Price To Be Paid For WineMaking Undertaking

A question for consideration bv.the Wellington Rural Land Sales Committee at a sitting in Wanganui yesterday was the price which shouid be paid for an acre of land in Burmah Street, Upper Aramoho, which includes a small cottage, fruit trees and grape vines, and used as a winemaking undertaking. The contract for the sale set the figure at £2400, but after hearing submissions the committee adjourned the sitting to enable evidence to be presented regarding valuation of chattels and goodwill.

The vendor was John Jaboor, labourer, and the prospective purchasers were Albert Basil Nesbit, labourer, Wanganui, and his brother, Godfrey Hugh Nesbit, motor mechanic, also of Wanganui. • Chairman of the committee was Mr. O. N. Campbell, other members being Messrs G. Hansen and R. Downes. Mr. S. G. Joll appeared for the Crown and Mr. C. H. Clinkard for the vendor.

The vendor said that when the contract for sale was made there were 100 gallons of wine on the property; now there were 400 gallons more, this amount being worth about £6OO. When goodwill was mentioned Mr. Clinkard said this was a very difficult matter to assess. The goodwill would depend to a degree on the volume of the sales. This, in turn, depended on the amount of sugar which was available. The vendor had not been able to receive all he wished, but Mr. Nesbit, a returned soldier, understood he could get sufficient sugar to enable him to make all the wine he wished to.

The chairman: How much have you had?

The vendor: We have been allowed 15 bags a year, about half a ton. That makes a little over 200 gallons. We ■have had to refuse orders every day —we cannot make enough wine to sell.

Mr. Joll; is there any guarantee that the purchaer can get the sugar he wants?

The vendor: I believe he can get it. Albert Basil Nesbit, one of the intending purchasers, said he and his brother had gone into the matter and they thought there were possibilities in the business, but it was admitted that the whole matter hung on the availabiliy of sugar. Aid from the Rehabilitation Department was not sought, and the price asked appeared to be “fairly right.” The chairman: Where do you place the goodwill? Witness: Partly in three months’ tuition. Then, of course, I would take over all his customers.

The chairman: If you paid £9OO for goodwill, it might take you five or six years to meet that.

Evidence as to the land was given by John Pascoe, a neighbour, and, for ihe Crown, by Francis Thomas Kilmer, valuer employed by the Valuation Department. He gave valuations as: Buildings, £420; improvements £7O; Land. £llO.

The chairman said that no evidence had been presented as to the value of chattels (barrels, press, etc.), none as to the goodwill, the opportunity ebing left to Mr. Clinkard to present that.