A Tailor's Bankruptcy.

Waikato Argus, Volume XXVII, Issue 4182, 27 August 1909, Page 2

A Tailor's Bankruptcy.

By Telegraph.—Press Association. Auckland, Last Night. The sworn statement of Donald Hugh Aloysius Bourke, formerly trading with Chas. Nicholson, under the style of "Kino's," at Auckland and Hamilton, tailor, who recently filed a petition in bankruptcy, has been lodged with the official assingee, Mr E. Gerard. Debtor sets forth the total liabilities of the firm at £558 17s lid to 26 unsecured creditors. The assets are sworn at £426 2s d (stock-in-trade at Karangahake road, £lB9 19s 9d; stock at Hamilton, £BO 2s 9d; book debts, £154 10s lid; cash in hand and bank, £37 8s lOd; leaving a deficiency of £96 15s Bd. Referring to his bankruptcy, Bourke, in his statement says that the selling price of the firm's clothes was based on a factory cost of 30s, plus the cost of the material, plus 20s profit over and above freight and cartage, though in some cases less was taken rather than lose a sale. Orders came in faster than the factories would make them, ancj to get over this difficulty Nicholson—allegedly against expert advice—started a factory of his own. Up to then everything had been "plain sailing," but a week or two of manufacturing made it'fairly clear to bankrupt that the clothes were costing at least 15s to 17s 6d more than they did when made by other factories. Had bankrupt had any authority or say in the business other than an advisor, he would have closed the factory there and then. As it was Nicholson's money and idea, however, he could only advise, an i leave it at that. He considered the business a good one. Nicholson was bankrupt's uncle and had been practically his guardian for 30 years. He had been in several transactions with Nicholson, and had taken what he chose to give him, irrespective of. what he might have earned. Bankrupt's reasons for filing were to place himself and the business entirely in the hands of his creditors and the official asignee.