GREAT LEATHER FAILURE.

Otago Witness, Issue 2985, 31 May 1911, Page 9

GREAT LEATHER FAILURE.

PRINCIPALS ARRESTED. (Fkom Our Own Cobeespondent^ LONDON, March 31. The Right Hon. Charles Booth, who is better known as the author of a remarkable series of books on the life of the London poor than as the head of the firm of Booth Brothers, skin merchants, London Bridge, was the mover in the new development of the Bowron Brothers sensation. _ I The sensational features of the failure I outlined fully lost week, the main cause of suspicion being the fact that the Phoenix wharf, which had custody of vast quantities of skins representing warrant securities held by various firms, turned out to be the property of the debtors, and thousands of pounds worth of securities had been removed. On Wednesday warrants were executed for the arrest of John Allan Bowron, aged 68, merchant, of Morden road, Blackheath, Sidney Bowron, aged 49, merchant, of the same address, and Thomas Loonan Knight, aged 64, wharf foreman, of Elm grove, Hornohurch, Essex. The accused were charged >aifc Tower Bridf. ? Police Court with unlawfully and fraudently conspiring together to cheat and defraud the Right Hon. Charles Booth and others, trading as Messrs Booth Brothers, skin merchants, etc., obtaining from them by false pretences, with intent to defraud, the sum of £28,670. The firs.t of the informations upon which the warrant was granted stated that Mr Charles Booth and Mr George Macaulay Booth were two of the partners in the firm of Messrs Booth and Co., who had been acquainted in business with Messrs Bowron Brothers, New Zealand merchants, of Bermondsey. This firm consisted of John Allan Bowron and Sidney Bowron, and the course of business was as follows. —Bowron Brothers imported their skins from New Zealand, and Booth and Co. were in the habit of advancing money to Bowron Brothers at their request to enable them to take up the shipping documents on skins in course of transit from New Zealand to Phoenix wharf, Narrow street, RatclifF. where the goods were always landed. Accompanying the request would be a consignment note giving details of the caste upon which the advance was asked. Booth and Co. would then make the advance by cheque, and Bowron Brothers would hand them a delivery note upon Phoenix wharf for the goods, and upon their arrival this delivery note would be exchanged for a wharf warrant signed by the manager of Phoenix wharf. These warrants were always signed by T. L. Knight, or were guaranteed from him and the proprietors of Phoenix-wharf that the goods mentioned in them were at the wharf, and were held there to the order of Booth and Co. THE POSITION DISCLOSED. On March 15 last Booth and Co.' held warrants from the Phoenix wharf for 799 casks, Upon which they had advanced to Bowron Bros., between March 7 and October 12, 1910, £28,670, none of which had been repaid. On that date, owing to certain information, a clerk employed by Booth and Co. was instructed to go to Phoenix wharf and check the goods there belonging to Booth and Co. Upon his return, continued Mr Baxter, on his information, " I made further inquiries, and have ascertained that on March 21, 1911, John Allan Bowron and Sidney Bowron presented' their petition in bankruptcy. They therein described themselves as trading as Bowron Bros, and as the Phoenix Wharf Company. My employers always believed Phoenix wharf to be a separate and independent business from that of Bowron Bros. Had they known that the wharf was tlhe property of Bowron Bros, they would not have advanced any money to them, as their security for such advances consisted entirely of the wharf warrants, which they believed to be signed by an independent concern. I have traced some of the 799 casks. I find that some of them were sold to leather factors and were taken to Crayford, where Bowron Bros, had a tan yard. lam informed that Bowron Bros, estimate that after realising all their assets there will be a deficiency of over £200,000." In the second information Claude Frederick Little, a clerk employed by Booth and Co., said that on going to the wharf to check the goods with the warrants he saw the wharf manager (T. L. Knight), and told him his business. Knight said: "I must refer you to Bowron's." He remarked: " Bowron's have nothing to do with us," and be produced the warrants.

■ After some slight hesitation, Knight said: "I cannot slhow you the goods." He asked, "Why?" and Knight replied, "'Because Bowrons have had thorn." "Have they had the lot?" he questioned, and Knight said " Yes." In applying for bail, Mr Dcighton said his clients had known for a fortnight that ! criminal proceedings were threatened, and they said they would certainly faoo the I music. The defemdia.nts wore remanded, bail I being fixed-at £2OOO for each of the Bowrons and £SOO for Knight.

FIRST MEETING OF CREDITORS. (From Oue Own Correspondent.) LONDON, April 7. Although Messrs Bowron Brothers were adjudged bankrupts on March 21, they have not yet filed a statement of affairs, and they have given very meagre information as to their liabilities and assets. The Senior Official Receiver says, therefore, that his figures must be accepted with a good deal of caution. The first meeting of creditors was held this week. The debtors, John Allen Bowron and Sidney Bowron, wore leather merchants, fellmongers, etc., trading at Kirby street, Bermondsey, and at Crayford and Tonbridge, Kent, under the style of Browron Brothers, and as wharfingers at Ratcliff under the style of the Phoenix Wharves Company. According to the Official' Receiver, the bankrupts began business in 1885, with a joint capital of £3OOO, at The Grange, Bermondsey, removing in 1887 to Purbrook street. In 1889 they took the Riverside Wharves in Narrow street, and in 1894 purchased Crayford Mills for £BSOO. In 1899 thoy acquired premises at 19 Tyers Gateway, London, where they traded as the Homo Counties Hide and Skin Company. The London County Council acquired the freehold of their premises in Purbrook street in 1900, and the bankrupts, after some litigation, obtained £45,000 by way of compensation. They spent about £20,000 in laying down plant at Crayford Mills and £15,000 on improvements and extensions; they also carried on business at three farms in Tonbridge, Kent, for the purpose of distributing and utilising the refuse "from Crayford Mills. The bankrupts estimated their liabilities to rank for dividend at between £200,000 and £300,000, including somo claims of £38,000, £27,000, and £25,000, and they valued their assets at £12,800. They lad been in difficulties for some time, and became aware that their property was insufficient to pay their debts in full in 1908, at the time of the financial crisis in America. They had, of course, contracted liabilities since' then, and had stated in explanation that thoy expected an amalgamation of their business with that of Bowron Brothers and Co. (Ltd.), of Nov/ Zealand, when their liabilities would have been discharged. They knew in 1909 that such a scheme could not be carried through, but hoped with the assistance of that firm and better markets to recover themselves. Messrs Bowron Brothers and Co. (Ltd.) had, in fact, assisted them to the amount of £15,000, and Mr John Allen Bowron had acted as agent of that firm until the date of the receiving order. The debtors were not present at the meeting, and Mr Timbrell, their solicitor, said that there, was a very good reason for their absence. They had been lately arrested on a criminal charge, and had not yet been able to obtain bail. They hoped to be released on bail during the course of the day. No scheme of arrangement was submitted to the meeting, and the debtors having already been adjudged bankrupt, Mr W. H. Freshwater was appointed trustee to wind-up the estate in bankruptcy.