Ladies’ Fickle Fashions Bring Trouble to Trader.

Star (Christchurch), Issue 18393, 20 February 1928, Page 9

Ladies’ Fickle Fashions Bring Trouble to Trader.

WIPED OUT AGENCIES HE BUILT UP FOR YEARS; CUT-THROAT COMPETITION ALSO WAS FACTOR.

Henry James Marriner, warehouseman, at a meeting of his creditors today, attributed his troubles to — (1) Writing off stock to bring goods down to the various market prices since 1918;

(2) Changes in ladies’ fashions which hit his class of business very hard, in some cases wiping out agencies which it had taken him years to build up; (3) Cut-throat competition in drapery and restricted buying owing to bad times and increase of overhead expenses ; (4) Losses made in connection with the Johnston Millinery Company during the past two years. “ I have carried on the business of warehouseman and manufacturers’ representative in Christchurch for thirty years,” debtor stated. “In 1918, my assets over liabilities were more than £BOOO. My business suffered in the slump period following the war. and, although I remained perfectly solvent, I thought it well, two years ago. to start a small wholesale millinery company with the idea of working up New Zealand trade. This company, the Johnston Millinery Company, Ltd., showed only a small loss the first year, but the year 1927 was disastrous, owing to bad seasons and the enormous amount of millinery imported by traders, which had to be sold at ridiculous prices, against which it was impossible to compete. “The winter trade was spoiled by this ruthless cutting; but the summer trade promised well; so, to keep the company together, I financed it up to £IOOO, selling the equity in my warehouse and other assets for this purpose. The weather was so cold and wet that the wholesale houses had to sell hats at Is and 2s each which had cost at least 6s to 10s each landed. There was no prospect of recovering, so it was necessary to close down the company, which was done. In all, I provided cash and stock for the company to the extent of £I6OO, but, owing to technical mistakes at the time of the formation of the company, a large part of this was not accounted for to my credit, and is irrecoverable. The only dividend I have received amounted to £4O, and no more will be recoverable.” The debts were set down at £2608 0s lid and the assets at £2411 9s lid, leaving a deficiency of £196 11s. The debts owing to unsecured creditors were set down at £1758 0s lid, and to the only secured creditor, the National Bank, £llsO, the securities being valued at £3OO. The assets were stock-in-trade £2193 15s lid, book debts £228 0s 3d, estimated to produce £2B 10s 3d, property (second mortgage on a house in Auckland) £lB9 3s 9d. The principal unsecured creditors were:—Paul Walser and Co., merchants, £443 19s 6d; F. M’Caw and Co., merchants, £lB5 3s 3d; Imperial Waterproof Co., £lOl 5s 3d; 11. White, merchant, £69 12s 6d: T. H. Undrill, manufacturer, £lO3 5s 2d; E. J. Marriner, draughtsman, £9B 7s 6d; Garrett and Lloyd, merchants, £145; Poison and Co., signwriters, £l4; D. M. Bain, merchant, £ls 10s; Miss Lys, typiste, £10; Mrs M. A. Stevens, St Albans, £540. Mr A. W. Watters, Official Assignee, presided at the meeting, and six creditors attended or were represented. Mr Lockwood represented the debtor. The Official Assignee said that a committee should be appointed to call tenders for the stock and decide what

form the tenders should take. His valuation was not as high as debtor’s, but was not much less. It was not taken on the basis of a forced sale. Debtor said that he valued on the basis of autumn sales to-day. Mr Stacey, for T. H. Undrill: How much did you put of the £I6OO in the Johnston Millinery Company? Debtor: £9OO in cash. You have a large library; is it 3>-ours? —The librar3 r is my wife’s. What does it consist of?—Books. Yes, I know, that’s obvious, but how many?—About 1500. Who paid for them? —Most of them were bought before my marriage. Will you swear that you never bought that library?—l bought some. When did you buy them?—l did not buy them recently. When did 3 r ou last buy books?—ln October. You should have put in details of those j’ou bought. Why did 3 r ou not put them in the assets? —They have gone in with the house. I have bought about 300. We will have details of those 300 anyway. Have you any interest in a farm?— None. Is your wife interested in an>*? —No. ' Have you given any furniture to your wife? —I gave the whole of the household furniture at the time of our marriage. Have you any documents of a transfer of furniture?—Yes, there is a deed of gift. The Official Assignee: I will make inquiries as to it. Mr Did you give her any lump sums in money?—No, never, except the household cheques. Debtor said that his statement in regard to the Johnston Millinery Company contained all that was necessary. Mr Lockwood said that there were some more facts in a later statement, but no additional figures. Mr Stacey: When did you give security to the bank?—Just after you spoke to me, three or four years ago. What was your position then?—Absolutely solvent. Did > r ou make a statement that you were bankrupt?—No. Not to any Civil Servant?—Never. When did you lose an agency?—One agency took me twenty years to work up, and was bringing £BOO or £IOOO, but owing to a change in fashions it went out in six months. That was about four years ago. They say that you knew you were going down-hill?—No. How long have you had an overdraft?—Every firm has that. How long?—Ever since I have been in business. Was it any recent change in fashions or the issue of a wri,t against you that caused 3 r ou to file?, —The writ forced my hands certainly. You said you would file if a writ was issued?—Yes. You place the sum at £IOO. You know it is £27o?—No, I don’t. Judgment was given for £270? Mr Lockwood said that there was an error in the judgment. Mr Stacey: Well, that is not mentioned in your statement. Have you any interest in Marriner’s Buildings?—< None whatever; I have sold that. For actual cash?—Yes, the money is shown in the ledger. The estate was left in the hands of the Official Assignee to realise.