H. 44a.

fw. EARL.

43. Not till then ? —No. 44. During the latter part of 1926 you say you had a brother working with you : where was he ? — Working in the business at Johnsonville. 45. And you worked at Johnsonville ? —Yes. 46. Who manages at Khandallah ?—Another brother. 47. Will you tell us what you draw yourself for a wage, if anything ?■ —£4 12s. 6d. per week. 48. And your brother ? —The same. 49. What other assistants did you keep in Johnsonville during November and December, 1925, and January, 1926—that was before you converted it into a cash business?— Two men and two lads. 50. What were they getting ?—One man was getting £5, another £4 12s. 6d., and the two lads were getting respectively £2 7s. 6d., and £1 2s. 6d. 51. Any other wages ? —No, I think that is all. 52. Did you have any one driving ? —That was the man getting £5. 53. During the months of November and December, 1926, and January, 1927, did you have the same men employed ? —Not the same men, but the same number. 54. So that by the conversion of the business from credit to cash you have not saved anything in wages ?—That is so. 55. Because you are still delivering ? —Yes. 56. And the only thing that you have saved, then, is whatever you may have lost in the way of bad debts ? —And the extra discounts that I would receive by buying larger quantities. 57. Have you balance-sheets for each year ? —No. 58. Do you not have a balance-sheet prepared ?—Not audited. 59. Not prepared ? —No. I never took a balance-sheet. 60. How long have you carried on business ? —Since 1922. 61. And you have never had a balance-sheet ?—No. 62. So that you cannot tell me really how you stand ? —Only approximately. The Chairman : Perhaps he lets the bank do it. 63. Mr. Myers.] Have you had any balance-sheet from the bank ?■ —No. 64. Will you tell the Committee what capital you and your brothers have in the business, or can you only guess ? —I know the capital he invested in the first place. I hand in the figures to the Committee. [The witness wrote the figures and handed same to the Committee.] 65. In the first place, did you buy the business at Johnsonville ? —Yes. 66. What did you pay for it ? —I think it was . 67. That was for stock and goodwill ? —No ; stock only. 68. You paid nothing for goodwill ?—No. 69. Who were the proprietors? —Some people called Mcßride and Mildenhall. As a matter of fact, " the tide was out." 70. When you say that you and your brother have drawn each, have you actually drawn that out of the business ? —Yes. 71. I suppose if I ask you what your average percentage of gross profits would be you could not tell me ? —No, I could not tell you. 72. How, then, do you fix the prices at which you are going to sell your goods ? —That depends on the nature of the article and the turnover. 73. Seeing that you never took out a balance-sheet, I suppose you never know what percentage . your gross profits bears to turnover, or overhead expenses to turnover ? —No. 74. You never know ? —No. 75. You have said that in Johnsonville there has been no increase in population recently ? —That is so. 76. What is the total population of Johnsonville ? —I could not tell you. 77. Do you keep any books at all ? —The ordinary ledger and cash-book. 78. Do you do any business on credit at all ? —Not now. 79. What do you keep your ledger for ? —There are still a few outstanding accounts to be collected. 80. So that you keep no ledger in connection with your existing business ? —No, none at all. 81. I suppose you do not find it necessary to keep a day-book ? —No. 82. You keep a sort of cash-book, I suppose ? —Yes. 83. I would like to see it ? —All right, sir. 84. What do you keep in it ?- —The day's takings and any outstanding accounts which may have been paid or money received on account. 85. Anything else ?—No. 86. Not even payments out made by yourself ? —Yes, but only such small things as petty cash. 87. But no payments to your merchants ? —Oh, no. 88. You do not keep any record of those except by cheque ?■ —That is so. 89. You would find it very difficult to ascertain it at the moment ? —To get down to figures, yes. 90. And you cannot tell me at the moment what your present capital is in the business ?■ —No. 91. Or whether you have worked at a profit or a loss ? —I can only assume that lam working at a profit. 92. I suppose you can only assume that because month after month you are selling goods and so far you have been able to pay your monthly accounts ? —Yes. 93. But you might quite easily be able to do this and still have lost some part of your capital ? I think the stock is a little more now than when we first took over. 94. A very little, I suppose ? —Yes, because it is turned over so quickly.

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