THE TALK OF THE TOWN

Taranaki Daily News, Volume LIII, Issue 298, 11 May 1911, Page 8

THE TALK OF THE TOWN

\ BOYCOTT ALLEGED. Christchurch, May !). The collapse of the Wholesale Club, Ltd., which has had a meteoric career, has been the talk of the town during the past few days.

It is understood that at a meeting of the principal creditors the liabilities were shown to be £ 13,919, not including goods in bond for £3OOO. The assets shown were stock (face value) £IO,OOO, fittings £2200, uncalled capital £OSOO. It was estimated that in the event of realisation the stock might bring 12s 6d in the pound and the fittings £SOO. It is also understood that the debenture- 1 holders' claims amount to £3OOO. It was thought that some offer might be re-' ceived for the club as a going concern, but as none was forthcoming it was decided to close the premises and put up the stock for tender. . THE CLUB'S TRIBULATIONS. . The club's tribulations and difficulties and the reasons for its failure were stated by Mr. George Davies, the managing director. "When we started the club," he said, "we felt sure that we

had found an economic principle ol' trading which could be worked in the interests of the public and of all concerned. In the first place we knew that the essence of safe trading was sound buying. In order to place ourselves on a sound formation for buying we sold our wares for the start at a very small profit. We had been going only a fortnight when some of the warehouses in the city established an absolute boycott. ' We went as far as to go direct to the warehouses with cash in our hands. Even then they refused to supply us with goods, and people call this a free country! However, we were not to bo daunted. We bought out a warehouse and took over all the goods it had landing. We could see then that the boycott would be too strong for us unless we organised a much larger concern sufficiently capitalised. There was a lot

of talk about our balance-sheet at that tunc, but we were at our wits' ends and had no time to take stock and issue bal-ance-sheets just tho.n. We published a prospectus in the newspapers. The shares were absolutely rushed on the first day. It we had been left alone we have every reason to believe the undertaking would

have been a brilliant success ' for al parties, but as soon as the prospects was !ssued one of the city journals tool; up a very antagonistic attitude. The result was that the demand for shares tell oil considerably, and in order to | save the position the directors put up their own money and subscribed for the shares. We then removed from Worcester street, where we had started, to larger premises in Manchester street and began operations there. The first shipment of goods was landed from the manufacturers, but the banks practically refused to hand the goods over J his placed us in a more unfortunate position than ever. To combat these tactics Mr. Alcorn and I took upon ourselves, „, consideration of the interests ot all, to guarantee the club to the extent of £OOOO or mor( , Wc haye • m our money to the last penny, and we nave lost practically everything. The whole thing has been a short bu't strenuous light between the organiied trade of the city and the Wholesale Club. The organised trade fought as we certainly should have fought if we had been on the other side. We acknow wlße our defeat. Wo have done our best; we can do no more."