A DRAPER'S FAILURE.

New Zealand Herald, Volume LIX, Issue 18175, 22 August 1922, Page 8

A DRAPER'S FAILURE.

LOSSES UPON STOCK. [BY TEL-KGRAFH. —OWN CORRESPONDENT.] HAMILTON. Monday. The bankruptcy of. James McPherwn. mercer and milliner, of Hamilton, was inquired into by Mr. V. H. Sanson, deputy official assignee, to-day. Bankrupt showed debts to unsecured creditors at £1043 15s lid. He estimated his stock and fittings at £556 19s 2d, and book debts at £7, making a total of £563 19.« 2d, and leaving a deficit of £479 16s 9d Bankrupt said ho commenced business in Auckland in October, 1920, with a capital of £450. He bought Goddin's drapery and millinery business for £929, paying £350 in cash. He carried on until May, 1921, when he commenced business in Hamilton, purchasing from Mr. B. G. Taylor his lease of part of Home's Buildings, and agreeing to pay £300 for the goodwill of the lease. On advice ho sold the balance of the Mount Eden stock by auction, receiving £50 for what had cost him £300. He estimated the loss on the Mount Eden stock altogether at, £400, He had found it difficult to make headway, and the slump had completed his financial failure. He attributed his present position firstly to loss on stock purchased in the Mount Eden business, to the loss on Mr. Taylor's shop, to the loss on Lawson's shop, into which ho later removed, paying £50 for one day's rent (as he was advised that he could not afford to pay the £10 weekly rental, and therefore cancelled bis lease), and to the bad times.

The deputy official assignee said that undoubtedly bankrupt had paid too much for the Mount Eden .stock. He appeared to be perfectly honest, but not too businesslike.

It was decided to sell the stock and fittings by auction.