RADIO DEALER BANKRUPT.

Otago Witness, Issue 3804, 8 February 1927, Page 30

RADIO DEALER BANKRUPT.

INVERCARGILL. February 2. In this a “wireless” age. when almost anything is connected with radio it is strange to record a radio specialist’s failure. Arthur Edward Jordan, a young radio specialist, failed to stand the strain of competition, however, and faced his creditors yesterday. His liabilities totalled £553 18s 9d, and assets £298 12s sd, leaving a deficiency of £255 6s 4d. Among the unsecured creditors were several Dunedin firms—namely, Niven and Co., £lO 2s; 11. H. Sykes, accountant, £23 4s 7d; and Law ; rence and Hanson (Ltd.), £6 16s Bd. Christchurch, Auckland/ and Wellington companies were also concerned. " - Bankrupt commenced business as a radio specialist on September T, . 1925, without capital. He obtained ah advance from Messrs Parkinsorf (Lfd.), electrical mer-. chants, Invercargill, of £2OO, paying at the rate of 7 per cent, interest on that date to aid hirii in making purchases of parts for building up 'instruments he from outside houses from time to' time, and also made' purchases"from Parkinsons. For the .purpose of getting country business he acquired a’Chevrolet?’ear; under a hire purchase agreement at £164 9s 4d. He did not realise at the outset that lack of capital would have handicapped him to the extent it-had'.’’ He indented goods valued at £ll2 16s lOd. representing wet batteries for use with instruments. This account was met by Parkinson? —through whom he indentedon a sight draft, he paying 2J per cent: on ■ the landed cost. . This immediately ' increased his liabilities to . Parkinsons, and from then onwards he periodically indented goods from America arid British. sources on a per cent, buying commission basis. He continued making purchases from outside sources until about March, 1926, when Parkinsons reviewed his financial position and decided with bankrupt that he should enter into a fresh agreement with them to egrry him .on- successfully. Up to this time sales hod; been very, backward, due to a slack period in the radio' business. He attributed'the cause, of his failure to lack of capital, stocks' of. parts becoming obsolete arid being superseded by made-up instruments, ’ and the cost of running the car owing 'to continuous mechanical break,,downs "and j-epairs./, . / 1.-’" ? - The creditors dcc'dcd to. accept; bahkrupt’s.. v .state'ment,/ apd' pall for the‘purchase of 'the’'stocks.' ' “