CHINESE TRADING.

New Zealand Herald, Volume LXII, Issue 19027, 26 May 1925, Page 12

CHINESE TRADING.

£ A SYSTEM OF TRUST.

HAMILTON BANKRUPTCY.

THE OMEN OF A NAME. EUROPEAN . COMPETITION. [3Y TEJVEOEArn. —OWN CORRESPONDENT. ] HAMILTON. Monday. Tho fact that a European fruiterer started business in opposition to a Chinese was given at a meeting of ....creditors. as tho principal reason for the 1 niter's failure. Bankrupt was Loong Ming, trading as Wing On and Co., of Hamilton, The deputy-official assignee, Mr. V. H. Sanson, presided, and Mr. A. E. Webb appeared on behalf of bankrupt, who was unablo to speak English and made his replies'through an interpreter. Bankrupt's schedule '' showed that approximately £450 was owing to unsecured .creditors and £3O to -"-secured creditors, while his assets were assessed at approximately £179, leaving a deficit of approximately £2BO. In his statement bankrupt said he commenced business in Hamilton East in April, 1924, with a capital of £BO advanced by another Chinese. The business was. successful up to the-beginning of 1925, 'when it began to fall away. Wliilo this business- was at its best ho mado arrangements to take tho lease of a shop in Victoria Street and ho entcicd into the new premises in February, 1925, but from tho commencement did very poor business. At tho samo the takings at his other shop also fell away, in April ho mado tho shop in Hamilton East over to a former employee to whom ne owed money. Ho gave as his reason for tho failure of his Victoria Street business that another fruit-shop was opened next door, tie owner being in a position to undercut him in prices. Venture a Safe Risk. Mr. Webb said ho thought it would be realised that Ming had been faced with a serious position. \\ hen fruit was plentiful on the local market a company receiving its supplies from the growers had opened in tho adjoining shop in opposition to him. Ming,had had to buy Ins fruit from the market and consequently bad boon undersold and had to keep his own prices down. It was evident that there had been no lack of business acumen on Ming's part in opening tho shop in tho vieihity as all tho best time both tho European shop and bankrupt had managed to make a decent turnover weekly. 'The opposition, however, proved too strong. Tho business had appeared a safe risk. Bankrupt's books were kept in Chinese and woro rather difficult to comprehend, but it was gathered that at tho best of times ho had been making a turnover of from £SO to £6O a week. When questions began to be put tho deputy Official assignee asked Ming if ho could not speak and understand English. Bankrupt replied, "Not very much," and Mr. Sanson then asked him how lie passed tho customs. Tho interpreter said tho English test imposed was not at all a hard one. By securing a permit at a cost of £IOO a Chinese could enter tho country with very little difficulty. Tho test imposed was really hardly a test at all; it consisted in tho reading of a passago from a newspaper or tho Bible. Further questioned Ming said he owed from. £l3O to £l4O in Wellington beforo ho cartie to Hamilton. With the exception of £SO this was owiifg t'd his fellow countrymen and had been paid. He denied knowing that tho European firm was about to start in tho adjoining shop when he took tho leaso in Victoria Street: When he moved ho took most of his stock to the new shop. Ho gavo the goodwill and about £4O worth of stock and fittings to his employee as payment for a debt.

Maintenance of a Wife. In reply to Mr. Sanson in regard to money sent to China, bankrupt said that during the past twelve months ho had sent £lO. as maintenance for his wife. (Laughter.) Tho interpreter pointed out that' that would represent a very largo ' sunt in a Chineso village. In reply to Mr.-Sanson the interpreter said that judged from tho European standpoint Chineso business methods were very crude. " They borrowed and lent largo sums of money without any security other than by word of mouth. One Chinese would ,assist another to his last resources' and would not ask for any receipt or other written recognition. If / a man failed to pay what he had borrowed the lender would know not to lend him any money in the future. Debts wero hereditary and many of tho Chinese in New Zealand wero at present working off debts incurred several generations previously., They only submitted accounts once a year, and it was considered lucky if a man could discharge his obligations before the New Year, Dealing with the question of Chinese trading under names other than their own, tho interpreter said that if a Chineso was not successful whilo trading under one name ho took it as a bad omen l and in his next venture tried some other name. Tho interpretation of names also was taken into; consideration by tho Oriental when start nig in business. Such a namo as Wall Lee or Ming Leo, meanin". small or very small profits, was considered unlucky by-some, whilo others thought it would bring in custom by tempting buyers. I '.' -V ; ■ Tho meeting resolved that the creditors deem it advisable that steps be taken bv tho Government to have some system of registration of Chineso trading names " instituted as a , protection to the trading community, .No particular resolutions concerning the bankrupt wero passed.