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I got the partner to advertise the building, plant, and stock for sale, but as there was no offer for either, and as the partner's claim on them amounted to about £1,100, after consulting with creditors I consented to abandon all claim on Shaw's part, as it was only his interest and not his partner's that was in bankruptcy and that was subject to the partner's claim. Wellington, 3rd August, 1899. James Ashcroft, Official Assignee.

Estate of George Shaw, of Wellington, Wool-carder. Examination of Bankrupt: Meeting of creditors held at the Official Assignee's Office, Wellington, Bth June, 1899, 11 a.m. Copy of minutes relating to felt bonus. . . . When I started the felt-manufacturing in January, 1897, I was perfectly solvent, though I have no books to prove this. I was, prior to that time, a gaol-warder, and there were, to my knowledge, no accounts owing for the household or by myself privately. I have been living on the tradespeople with the expectation that the business I entered into would be a paying one. I expected to get a bonus from the Government of £500 on condition of manufacturing five thousand pounds' worth of felt cloth. Though we did not manufacture the equivalent quantity we received, after representations to the Government, a bonus of £100, of which the firm got £60. The rest I received to liquidate part of my private liabilities. . . . Mr. Amelius Smith, Government Inspector, came to the factory, and on the strength of his report we obtained the bonus of £100, though there was nothing like one thousand pounds' worth of felt manufactured. We bought only fifty-seven pounds' worth of wool, of which one bale is now left. It was understood by us that Mr. Smith would make arrangements so that we might be entitled to £500 bonus at the production of one thousand pounds' worth of our goods. Gbo. Shaw. Sworn before me at Wellington, Bth June, 1899. —E. Gerard, Acting for Official Assignee, Wellington.

Sib, — Felt Manufactory, Adelaide Eoad, Wellington, 15th October, 1897. We have during the last six months been erecting buildings and machinery for the business of felt-manufacturing. We have up to the present time expended over £1,000, and we are now awaiting further machinery from England, when we shall then be ready to start work. We shall be able to produce felt of all kinds and qualities suitable for horse-covers, rugs, blankets, printers' pads, vests, petticoats, dressing gowns, also ripple-blankets, &c. As this is an industry quite new to the colonies, and in consequence are experiencing many difficulties, we should be pleased if you woujd assist us by means of a bonus of say 10 per cent, on the first £5,000 in value produced; after which, we think, we would be able to run without any further protection or assistance. The business at its present size will employ when started fifteen persons, and also use a good deal of waste products such as cowhair, tow, tailors' cuttings, &c. Waiting your favourable reply, We are, &c, We crave your kind consideration of the above. Hill and Shaw. The Hon. Minister of Customs.

Hon. Sib,— Wellington, 13th July, 1898. We wish to convey to you and your Government our warmest thanks for the encouragement extended to us, by placing on the estimates £500 as a bonus for the felt industry. Unforeseen circumstances arose which prevented the works starting as soon as anticipated, and which also rendered a journey to England necessary to procure necessary machinery which we could not get made here. Our Mr. Shaw has just returned, and is now hard at work, and he hopes to soon be ready. When we are we should be pleased if you would pay us a visit of inspection (if your time would permit) and assist at the inauguration of another new industry for our colony. We are informed that it will be necessary to have the bonus again placed on the Estimates, owing to its having lapsed. If this is so, we should be pleased and esteem it a great favour if you would kindly see to the matter for us. We have already expended a considerable amount of money in initiating the enterprise. Thanking you for your favours in the past, and for those to come, We are, &c, Eight Hon. B. J. Seddon, M.H.E. Gbo. Shaw and Go.

Hon. Sir,— Felt Works, Wellington, 2nd March, 1899. When our last letter was addressed to you re establishing the felt industry in this colony, we were on the point of going to England to purchase machinery, &c, to supplement and complete the plant already in hand. We were very much encouraged in our endeavours by your placing the bonus of £500 on the estimates. Considerable delay took place in getting things in order, and we have been running some time and have made up some five hundred pounds' worth of goods, principally horse-rugs; these have been submitted to merchants in Wellington and Christchurch, who have expressed themselves favourably, so much so that they have promised to place orders with us next season. This is unfortunate for us, as it cripples us until the season opens again. We would be pleased if you, or an agent appointed by you, could pay us a visit, so as to see how we are getting along. We shall be pleased to hear favourably from you re bonus. In the meantime, We are, &c, The Right Hon. R. J. Seddon, P.C. Shaw and Co.

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