SYSTEM OF HIRE PURCHASE IS INIQUITOUS.

Star (Christchurch), Issue 17905, 22 July 1926, Page 13

SYSTEM OF HIRE PURCHASE IS INIQUITOUS.

STARTING BUSINESS WITHOUT CAPITAL. (Special to the “Star.”) AUCKLAND. July 22. The criticism of the hire purchase system made by the creditors of a bankrupt omnibus proprietor, was dorsed by the Official Assignee, Mr W S. Fisher. It was stated that the bankrupt had procured buses on this plan, and a creditor remarked that it seemed strange that a man could embark upon such a big business without capital. lie deprecated the facilities afforded by the hire purchase system. “ 1 quite agree with you, ” said Air Fisher. “It means,’’ added the. creditor, that while the bankrupt is paying off his buses, one firm is giving tyres, and I am giving his petrol, but we get nothing at all.” A representative of the firm that sold the bankrupt some of the vehicles, reminded the meeting that his firm was a loser as well as the other creditors. . “ But you seized the buses, said one creditor. “That is so,” was the reply, “but we now stand to lose £looo.’’ He added that they had to take into account that while in use the buses depreciated enormously. That was another way in which the firm was a loser. Another creditor wanted to know whether he could recover the value of the tyres from the company that had seized the buses. The tyres were new. and not those supplied when the buses were purchased. “In that case.” said another creditor, “I would like to know how I stand about a coat of paint I gave one of the buses?” (Laughter.) “There is no doubt that the hire purchase is an iniquitous system,” declared Air Fisher. lie added that he thought the creditors were largely to blame themselves for the risks they took.

“ That is quite true, ” said one, “ but when a man drive® up to your garage in a flash bus you don’t think there is any risk.” (Laughter.)