steel, and the venture was additionally favored since a profit of at least 100% in the sale after processing could be realized.
Before and after the plant facilities of the debtor company were made ready for the business venture, orders were taken for sheet steel according to sizes and specifications from various customers, among whom were the five petitioning creditors. Between March 29, 1948, and May 11, 1948, the petitioning creditors placed certain orders with Tate-Jones & Company, Inc., Special Division.
This being a new venture and funds being somewhat limited, it was decided between the partners that any customer who desired to purchase the processed steel would be required to deposit at least one-third of the purchase price when the order was accepted. Keeping in mind the limitations which existed in the market for this type of steel, it is readily apparent that the customers would offer no hesitancy in making the deposit to secure a firm commitment that the steel would be furnished. It was agreed that the deposit would be credited to the contract price when the steel was shipped.
The deposits were required by the partnership for two purposes:
(a) To secure the partnership from any financial loss as a result of the failure of the customer to take the sheet steel after it had been processed and sheared to specifications.
(b) To aid in the creation of a fund to which access could be made to purchase the sheet steel in its raw form or as hot rolled sheet steel.
Advancements were made by the claimants, and the amounts involved in the reclamation proceedings are:
Columbian Carbon Company $ 32,224.24
Fuller Brush Company 4,800.00
Auto Fender Manufacturing
United States Vending
Total $ 51,278.90
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