700 CREDITORS

Gisborne Herald, Volume LXVIII, Issue 20601, 31 October 1941, Page 2

700 CREDITORS

BANKRUPT PARTNERS “SUBSCRIBING CLUBS” ASSIGNEE'S COMMENT (Per Press Association.) CHRISTCHURCH, this day. With 700 creditors, the bankruptcy Of William Arthur Lyall Kilgour and Cyril Lawrence Crowson, trading as Kilgour and Crowson, lingerie distributors, was declared yesterday by the official assignee, Mr. G. W. Brown, to be a record of its kind. About 40 of the 700 girls and women subscribing to the club run by the partners attended the meeting. The partnership statement showed liabilities of £1730 and a deficit of £1359. Explaining the organisation of subscribing clubs, Crowson said that each club comprised 25 members, each of whom subscribed £3 3s in instalments for goods of that value. When each member of the club had paid in 15s 9d, one selected by the ballot received £3 3s worth of goods without subscribing further. Again, when three-quarters of the payment had been made, another member selected by the ballot received the full value of goods without further payment. New members were enrolled up till a fortnight before the petition was filed. There had been about 2300 members, of whom 1000 received goods. The official assignee said he would make a close examination of the books, and if there was any evidence of fraud appropriate action would be taken.

“It is a most unfortunate business for hundreds.” said the official assignee. “I have never before seen a bankruptcy in which the loss has fallen so widely on those least able to bear it.” The meeting was adjourned.