THE MUSHROOM-TRADER

NZ Truth, Issue 1174, 31 May 1928, Page 8

THE MUSHROOM -TRADER

■Easy Credit That Flirts Before Killing Him (From "N.Z. Truth's" Gisborhe Representative.) ; For some years, past, Gisborne business-men have been good marks for mushroom traders who have come along and started m a business of one sort br another. l\

•THESE newcomers have accepted i the credit which has literally been thrust upon them, and then calmly shut up ahop and left lists of creditors lamenting for hundreds, and, m some cases, thousands of pounds. Some of the bankruptcies, no doubt, have been pure misfortune; others be r lons' to another class. But m either case, the creditors m the main, are no more deserving of sympathy than are their debtors, for it is notorious m Gisborne at any rate ,that credit is not only, easy to get, but actually difficult to avoid. ■'■'.' At the last meeting of the Chamber of Commerce much was .said about "unsavory bankruptcies," '.and "dishonest: traders who are a menace to the community," and the Associated Chambers of Commerce ; are to be asked to take the matter up— whatever it might be able to do — to save Gisborne merchants from themselves. 1 It is a fact that there are too many bankruptcies m Gisborne, and, for that ' matter, throughout the Dominion. It • is likewise a fact that more often than • not it is the merchants and not the • bankrupts who are to blame. _ ; The facilities for obtaining credit • constitute the root of the evil. The loss to the merchant is the cause for the . least concern, for he naturally passes i the buck, and the public, as usual, : pays the piper. . ". ■ ' i Gisborne merchants want to make an ; example of someone now, and one case has been referred . to the Crown for i investigation. In this ; instance the bankrupt took over a business which had caused the previous proprietor to , file. . "• ■'.'•■■■■ Prior to starting the business, the bankrupt had been involved m a court case which had clearly revealed that the business was not financed by a ! gold mine. Notwithstanding- this, credit was obtained from scores of firms, and when the crash came, the- deficiency, was well into four, figures. . The bankrupt was a. woman, but this made no difference to the wrathful creditors. . The cross - examination reached an interesting stage when she ! devolved into tears and the meeting adjourned after an investigation had been demanded. : • ' ■ '. And now comes an even more in^ teresting case. Antonio Zame, a Greek •fish merchant* having, on hia own ad-

; mission, transferred his business to r his brother, given his motor-car to his • wife so that his creditors wouldn't i take it, and having practically the > whole of his furniture m his wife's name, has filed hs petition. The creditors apparently didn't mind for only one small one was represented 1 at the meeting, i Zame's business career is a remark - > able one. i -He .was sent to Gisborne by the i Hawkes 1 Bay Trawling Co. to manage the Gisborne branch. Not satisfied with the one business he opened one of ' his own, and for 12 i months was actual- . • ly trading m opposition to his em- - ; ployer. [• Zame . became indebted to his [ brother for £149 for wages, this, ■ of course, being a preferential I claim. When business began to look "fishy" ' he transferred it to his brother, by : verbal agreement only, the latter pay- '■■ ing him £5 a week. At this stage he > > was : paying £3 a Week off the motor- '■ car and £2 10s. a week rent, having just moved from a house where he : paid^ 25/- a week. 1 Naturally the benzine buggy requir--1 ed a little explanation. The fir3t one 1 Zame had purchased for £ 165. Eight 1 months ago he transferred it to his wife, and then they traded it m for. 1 anothei\ oar costing £235. ; Zame openly admitted 'that he had . transferred the car to his wife so that 1 the creditors couldn't get it. He, however; had continued to pay for the upkeep of it. Judged by' his statement, Zame had ' little m the way of furniture, the value ; being set down at £30 to £35. A little judicious inquiry, however, revealed ' the fact that his wife had £100 worth, "or maybe more." The motor-car was not the Greek's only luxury. He had admitted that he . obtained . four" dozen photographs at a. cost of £6 at a time when he knew he was in ' difficulties. What the assignee referred .to as "another little luxury you went m for," was not named, but Zame confessed that it was costing him 12/- a week under a maintenance order. He was paying this into court, and had kept up his payments,' . • . The meeting was formally adjourned ,< sine .dia. . - , i-:'.. . . . ; .. '. ■ > ......