TOO MUCH CREDIT.

Shannon News, 26 May 1925, Page 2

TOO MUCH CREDIT.

REASON FOR BUSINESSMAN’S FAILURE. James Crowtlier, cycle agent, of Shannon, uas filed a petition in banktup u-y. His statement gives as the iVitaun itiat he allowed too. much money to accumulate on his books, ana could not collect sufficient to meet his obligations. In his statement to the D.0.A., he said he had neen carrying on business at Shannon lor tne past six. years, commencing with small capital. In 1921-1922, owing to floods affecting trade, he nail expe' lenced, a bad year and had been forced to give promissory notes mr an amount owing in order to obtain goods. He had been unable to meet his other creditors until such notes had been met, but at the. time be had been quite solvent. In February, 1923, he had removed to new premises and had undertaken motor repairs in addition to cycles. He had employed to inedhajiic at various times nut had found the new departure unprofitable as. most of the work iiad gone on to the books and he had found d’faculty in obtaining payment. Far the past nine months he had only been ordering goods where •necessary and had been slowly reducing his liabilities. His creditors nad been taking proceedings against him and he had consequently been loroed to file.. During, the tune he had been in business lie had drawn on the average £3 per week. He attributed his failure to the large number of accounts carried on the books. The loiul debts were given as £244 its Bd. tne assets £122 13s 9d, leaving a deficiency of £122 Os lid. Ihe unace urea creditors are enumerated below .*—it. H. Dowker and Son £4 17s id; E. Reynolds and Co., Ltd.,- £33 17s, united States Rubber o°., £9 17s Md; cveie and Motor Supplies, £9 19s sd; Barnett Glass Rubber Co. £43 13s sd; n.Z. Motor Trade Publishers, £4 4s; Thomas Oates, £1 9s; Hutchison Engineering Co., £2 15s Johnston Ltd., £ls 6s, ah oi Wellington/ W. C. Russel Ltd., £5 17s; N.Z. Motor journal £7 65 6d, both Qf Auckland; International Harvester Co., £6 16s 2d; Adams, Ltd., £23 £ Christchurch; Wells Bros., £2 Os 3d, bawber Motors, Ltd., £.42 19s sd; L Warner, £3 11s Bd, ail of Palmerston North; J. G. Milnes. £8 19s 6d; Kerslake and Billens £9 Is 3d; E AUuund JJL 8s (id, all of Levin; C. C. Franks, £3 Is 7d, E. J. Spencer £2 us 3d, both of Shannon.