THE BOWRON FAILURE.

Press, Volume LXVII, Issue 14030, 29 April 1911, Page 10

THE BOWRON FAILURE.

DETAILS BY MAIL

We take the folio-wing from the "Daily Mail" of March 24th:— The "Shoe lind Leather Record"' publishes certain figures which were made known at a private meeting on Monday last of some of the creditors of Messrs Bowron Bros., leather manufacturers, of Cray ford and Bermondsey. Tho figures given by the auditor of the debtors, showing an apparent deficit of £238.000, were as follow :— LIABILITIES. £ Bank (secured)... ••• Creditors (partly secured) 2/4,t>40 Unsecured creditors ... *l>*4o 8.8., Ltd., New Zealand 45,180 I £336,920 Debtor's four children ... 32,000 ! Total liabilities ... £363,920 ASSETS. Cash in hand ... ... 2 Book debts ... ... &X> ! Plant and premises, Cray- | ford 39,100 I Stock (estimated) ... 87,850 ! Interest in farm ... 3,000 ! £130,602 Apparent deficit ... 233,318 Liabilities as above... £368,920 Tho events which led up to the meeting were that on the previous Monday (March 13th) Messrs Striven Bros, and Co., who had advanced money to the debtors on the security of goods said to be stored at the Phoanix "Wharf, applied to the wharf for delivery. They were told that the goods could not be sent because tho delivery orders had been cancelled. They immediately took stops to enforce their security, and the following day Mr Justice Bucknill granted an interim injunction to restrain the wharf from parting with any of the goods specified. The _ summons was made returnable for Friday last. March 17th. In tho_ meantime other claimants for goods said to be storeu at the wharf applied for delivery, and in two cases succeeded in obtaining them. When tho summons camo on for hearing on Friday last, before Mr Justice Darling, it was alleged that some of the goods collected by theso firms really belonged to parcels earmarked for Messrs Seriven. Mr H. W. Freshwater was appointed receiver of all rjoods at the wiiarf pending an investigation. Representatives of the Press were excluded from the meeting on Monday. It was explained that tho London County and Westminster Bank hold a first charge upon the Crayford property, and that there was a further contingent liability of'about £1000 in respect o*f bills under discount. On Tuesday last, the day after the meeting, upon the petition of the debtors, a receiving order was made at tho Bankruptcy Court by Mr Registrar Giffard. Anolication" was granted tor Mr H. W. "Freshwater to act as special manager and carry on the business until a trustee has been appointed. This_ application was supported by creditors with claims aggregating £270,000. Mr Charles R. Seriven, a member of tho firm of iScriven Bros, and Co., Bermondsey, who were creditors for £9218, has sent a letter to the ''Shoo and Leather Record," in which he gives nn explanation, "of such enormous figures as appear in this failure against individual firms" as oreditors. Ho states:—Tho business was done on a commission basis, and every transaction was done on security", and with the exception of those few firms, who are holding the goods in the tanned state sent in from Bowron's Yard, at Crayford, all the other creditors told wharf warrants, or had lodged delivery orders at a waterside wharf for raw goods, such as skins' and pelte, as eecurity for tho vsums they were entrusting to Bowron Bros. "Speaking for my own firm, I havo sent at irregular intervals to have tho goods checked, and examined to see that tho condition was sound, and aleo to re-value to ascertain that the value existed in accordance with tho fluctuations of tho market. As recently as February of this year I sent- to the wharf a list of the stock lying there to my firm's order, with the request for the manager to send mc a certificate that the goods were- there untouched and in eonnd and good condition. I hold such certificate, dated February of this present year, in which it is set' out that he has examined the goods liinisolf. Ho finds them perfectly in order and in sound condition Tho only qualifying remark he makes is that he will not accept responsibility for the contents of the bales or barrels. To-day that wharf is practically empty."