ONLY BY ADVERTISING.

Auckland Star, Volume LXIII, Issue 136, 10 June 1932, Page 8

ONLY BY ADVERTISING.

KEY TO RETAIL MARKET. BANKRUPT'S EXPLANATION. LEFT WITH LARGE STOCKS. [ (By Telegraph.—O\v(i) Correspondent) OHRISTCHURCH, this day. "It is utterly impossible to do anything on the retail market unless one can create a demand, and that can only be done by advertising," said a bankrupt manufacturer, Herbert Edward Reid, when he met his creditors. Bankrupt explained that- sales of his products had fallen away on account of the depression, and he had had no funds with which to advertise as hie estate was already in the hands of trustees, having been assigned two years ago. Creditors decided to leave the winding-up in the hands of the trustees, '/.'lie Official Assignee said there was a nominal deficit of £750.

Iu his sworn statement, bankrupt said he commenced marketing an insecticide in 1929. He borrowed £350 to finance the initial costs of the business, and commenced manufacturing on a I small scale. He would have continued ion a small scale, but was urged to increase the capacity of his plant in view of possible very big orders. However, owing- to the depression and severe frosts, which put many fruitgrowers out of business, lie was left with big stocks on his hands, and in 1930, to protect his creditors, lie assigned the whole of his property. The trustees decided to carry on the business for two years, and in that period he prepared another product, which was enthusiastically received, but lack of necessary finance to advertise the product and falling away of sales on account of the depression rendered his position worse. Until the depression lifted he could not see his way clear to make an offer.

The largest creditor said he was satisfied that the bankrupt had done his best to try to pay everybody.