HUGE LONDON FAILURE.

Dominion, Volume 4, Issue 1082, 22 March 1911, Page 5

HUGE LONDON FAILURE.

BOWRON BROS., BERMONDSEY DEFICIT TOTALS A QUARTER OF A MILLION. LIABILITIES OF £300,000. By Telegraph—Press Association-OopyriEht (Rec. March 21, 10.15 p.m.) London, March 21. The "Daily Mail" announces the failure of Messrs. Bowron Brothers, of Bermondsey. leather and sheepskin importers. The firm's liabilities arc stated to total ,£300,000, and the assets £50,000, leaving a deficiency of ,£250,000. A number of members of the trade are involved to the extent of from £10,000 to £40,000.

The above firm has nothing to do with the recently-formed New Zealand Company of somewhat similar name. • In the income-tax case brought against Bowron Bros., of Christchurch, last year, a debt of £108,000 claimed to be due from the London firm of Bowron Bros., a distinct concern carried on by relatives, figured prominently. Mr. Skerrett, K.C., in the proceedings before the magistrate at Christchurch in March of last year, was reported as stating: "The Crown claimed that from the period, September, 1904. to 1903, there wns a sum of .£lll,OOO profits, which had not been accounted for for purposes of assessment for duty. It included two items, viz., increase of stock which ought not to be included, and £KB,OOO, the bad debt due from a London firm. .In regard to this amount it was incurred in a. business way by the consignment of Bowron Bros.' goods and customers' goods. In 1905 there was a liability of £90,000 due from these people which had not been recovered, and the balance-sheet put in prepared by the auditors of the London firm shows that there was a deficiency of assets over liabilities to the extent of no less a sum than £103,000. In that balance-sheet Bowron Bros, and Company was shown as being a creditor only to the amount of £31,000. . . . There was ample evidence that there was a genuine debt of £108,000. The transaction was incurred in the ordinary course of business, and there was not the slightest evidence that it was left invested in the London firm or that it yielded anv profits. . . . Mr. Skerrett said he was going to ask the Bench to infer that there was a long connection between the two firms. He suggested that there was a. relationship between the partners in England and two of the partners here, and the inference, which was not an unreasonable one, was that Bowron Bros, in New Zealand wore desirous of assisting the English firm by keeping the business they had, and by taking advantage of their services in the disposal of goods."