"HIGH COST OF LABOUR”

Taranaki Daily News, 21 February 1933, Page 2

"HIGH COST OF LABOUR”

PIE SHOP PROPRIETORS FAIL. DISCHARGE TO BE FACILITATED. The high cost of labour owing to the necessity to abide by award rates and the consequent impossibility to employ labour under satisfactory mutual arrangement was one of the reasons given for their necessity to file in bankruptcy when Mary Ann and Leslie Withers, proprietors of the Premier Pie shop and tea rooms, Devon Street, met their creditors at New Plymouth yesterday. The D.O.A. (Mr. J. S. S. Medley) presided, and others present were Messrs. Stephens, Walker (McGruer’s), H. W. Kirkby (Trust Buildings Ltd.), J. E. Sampson,, and S. L. Withers.

A deficiency of £231 9s lOd was shown. Liabilities included amounts owing to unsecured creditors totalling £547 15s sd, secured creditors £7lO Is 7d and £227 10s to Trust Buildings Ltd. Assets shown included property valued at £730, stock-in-trade £lO, cash 7s lid, furniture, fittings and crockery £284 19s 3d. Bankrupts stated that they had taken a lease of a shop in Devon Buildings on September 29, 1927, and commenced operations with the small capital of about £2OO. At that time business was brisk and for some time excellent headway was made. Later they had taken a further lease of another room upstairs and commenced tea rooms in conjunction with the shop. At first that too proved satisfactory. Business then began to wane, sales decreased and slowly but surely they began to feel the effects of the slump. Wages had been high and by cutting down costs and expenses where possible they endeavoured to make up lost ground, but further sales decreases made that impossible.

Every effort was made to keep the business going in the hope that the slump would disappear and business return to normal. The continual strain of long hours and worry affected the health of Mrs. Withers, and she had to give up work and have medical attention. Owing to the pressure of certain creditors they then had no option but to file. To Mr. Medley bankrupt stated that there were four sons, all of whom had assisted financially. It was decided to facilitate the discharge of the bankrupts and to return the whole of the household furniture. The unsecured creditors to whom amounts of over £5 are owing are: J. McNeill £l9 9s Id, Scott and Davidson £8 6s 2d, John Avery £5 17s lOd, J,* Sampson £BO, G. Lamplough (Stratford) £lO, Stone and Son, Ltd. (Dunedin) £5 10s, John Swinson and Co., Ltd. (Wellington) £l6 8s 6d, H. C. Sampson £53, S. L. Withers (Hawera) £lO 19s, J. Withers (Stratford) £2O, D. H. Withers (Hastings) £2l ss, Electrolux Ltd. (Wellington) £6, New Plymouth Borough Council £9 13s.

Secured creditors included J. B. MacEwan and Co. £63 3s 3d, Electrolux Co., Ltd. (Wellington) £6 9s, State Advances, first mortgage on property, £390 7s 4d, estate of the late C. Abbott, second mortgage, £250.