LEWIS BROS.

Auckland Star, Volume IX, Issue 2499, 28 March 1878, Page 3

LEWIS BROS.

(To tho; Editor). fjß>~~ Will you allow me to supplement «» remarks which I made at yesterday's meeting. Had I known that the creditors were to be treated to a lecture by Mr Stevenson on banking and the dutie3 of bankers, I should have gone better prepared.

Mr Stevenson's remarks were entirely Misleading. Had the Bank adopted the selfish aud suicidal policy suggested by Mr Stevenson, of Btopping the firm last year, the result would have been a large *OS3 to all concerned. I leave your readers «> judge the effect on trade in Auckland aa(L Lewis Bros, stopped before or immediately after the failure of Barnett and H. S. Meyers and Co., Levy and wldwater, and 'others. What the Bank j»a do -was to cancel their London credit (it f^d been previously reduced one-half), and w allow Mr Gabriel Lewis to go home and consult th e i r English creditors. At this ™j»e the firm professed to be not only ihA* but to nave a considerable surplus. J-aadno means of checking this statement, *s 1 railed to obtain from them any state- £ cnt of affairs. Immediately I received fom London the balance-sheet submitted "*re,.l advised our London Office not to themselves on such- a statement. I "eueved the firm to be insolveut. The "sure? shewing the assets of the firm were

prepared hurriedly prior to Mr Gabriel Lewis leaving, and Mr Morris Lewis on his arrival very soon found that it was impossible to carry out their arrangements made at home. His efforts were then directed in realising the assets to the best advantage; and possessing as he did the entire confidence of the English creditors, satisfactory arrangements could have been made for the payment of a substantial dividend but for the action of local creditors. Ido not know on what principle Mr Stevenson values the assot3 of the firm, but if lie values all the securities as he does those of the Bank, I am in hopes the estate may shew a more favourable outturn than supposed. All our securities are valued at English cost, charges paid, and the shipments still afloat are only drawn against to the extent of 75 per cent, so that there ought to be a surplus on these of 50 per cent. . . . , T One word in conclusion. I tlimK an Stevenson's remarks about Lewis Brothers com« with a very bad grace from him Let him look at home. It is all very well to put the Lewis's in the pillory, but they have done just as their neighbours have done—overtraded and overimportecl. INOt that I justify them in doing so._ \\ c have seen the fruits of this policy in Auckland in the bolstering up of several retail nouses, who have afterwards failed, inflicting serious loss on the wholesale farms. Yours, &c, David Hean.