DRINK PLAYS PART IN GROCER’S FAILURE

Sun (Auckland), Volume I, Issue 178, 18 October 1927, Page 9

DRINK PLAYS PART IN GROCER’S FAILURE

CUT PRICES FOR CASH CREDITORS DISSATISFIED Drink played a large part in the bankruptcy of H. V. Jones, until recently a grocer of Ponsonby. At a meeting of his creditors held this morning before the official assignee. Mr. G. X. Morris, he asserted that neighbourly competition was the reason for his downfall, but a cross-examination revealed that liquor had a good deal to do with it Bankrupt’s financial statement showed £1.309 owing to unsecured creditors. His assets were £2OO. consisting of stock £6O, book debts £ls and furniture £l2s—a deficiencv of £1,109. Jones furnished a written statement, in which he said he began business in March, 1923. He commenced with a capital of £307, and for two years his business prospered. He then acquired the lease of a second shop in Jervois Road, installing his brother as manager. At the end of March, 1925, he was worth over £1,700, and on the strength of it bought a motor-car. It was subsequently damaged in an accident, and he had to sell it at a loss. Then severe competition set in, and he had to cut prices to keep customers. Subsequently he had to sell the Jervois Road shop at a heavy loss. Under examination. Jones said that no additional grocers’ shops had opened in his locality, but the stores there changed their tactics, and resorted to price-cutting. He necessarily had to follow suit, and this accounted for the change from a profit of £899 in 1925 to a loss of £llO in the following year. Asked if he had not given way to heavy drinking during the last two years, Jones said he might have taken a glass or two too much during the last twelve months. Pressed by Mr. Morris, he admitted having had' to prohibit himself recently. The assigne said that bankrupt's explanation of his losses would not square with the figures supplied bv his accountant. There had been a leakage somewhere, and drink was the probable cause. "He has brought this upon himself,” said Mr. Morris. ‘‘Jones has neglected liis business and the distaste of people to go into a dirty and disorderly shop, together with drink, are the explanation of his heavv losses.”

Creditors expressed the view that Jones should not be granted his discharge until he had made some effort to pay something off his liabilities. The meeting was then adjourned sine die.