SOLD BELOW COST

Sun (Auckland), Volume III, Issue 894, 11 February 1930, Page 11

SOLD BELOW COST

PRECARIOUS METHODS LEAD TO FRAUD SYDNEY FIRM CRASHES SYDNEY, Monday. Nine men appeared at the Central Police Court, Sydney, today charged with conspiracy to defraud a number of wholesale warehousemen.. Defendants were: Albert Ellisdon. aged 60; Albert Cameron, 27; Harry Roden, 39; Nathan Mandleson, 69; Benjamin Newberg, 30; Harry Levy. 67; Morris Ivutner, 38; Daniel Rogers, 39; Joseph Wilson, 45. The hearing of the case had just commenced when Rogers was discharged. Evidence was given to the effect that the other eight defendants had carried on business under the name of Cheapleys, Limited; that it was represented to various firms from whom goods were obtained that Ellisdon was a man of sound financial position (which is alleged to have been false); and that Cheapleys established branch shops in the heart of Sydney and sold goods at ridiculously low prices, often under cost. Other evidence was that the losses of the concern in five months totalled more than £40,000 and that when it went into liquidation its debts aggregated £57,000. The firm with which the men are connected came into existence some months ago. It traded on the 90 days’ bill system, buying huge quantities of merchandise from warehouses and selling at ridiculously low prices to retailers. The firm has now gone out of existence. The bills fell due at the beginning of December, and according to official statements were not met. The men have been charged with conspiracy.