CAUGHT BY THE SLUMP.

Auckland Star, Volume LIV, Issue 217, 11 September 1923, Page 9

CAUGHT BY THE SLUMP.

i m MASTERTON FARMERS' IMPLEMENT CO. TO BE LIQUIDATED. An extraordinary general meeting of the Masterton Farmers' Implement Company, Ltd., called to discuss the question of liquidation, was held on Friday. S The acting-manager (Mr. W. F_ h I Chamberlain) read the notice, calling the jj I meeting, which embodied the motion to s j liquidate. The chairman then moved: ' ■'"That it is proved to its satisfaction .that the company cannot, by reason of A j its liabilities, continue its business, and J; that it is advisable to wind up the J same."' t Mr. Chamberlain explained that a ?. great amount had been written off. Tlie j g chief trouble was that while the boom jlwas on the turnover increased enor- i X mously, with a corresponding increase! in the overhead charges. When the" slump came, the turnover decreased,' « but the overhead charges had not shown j c a corresponding decrease. The company _ would lie about £255(1 short of the I; amount required to pay creditors. ft ' s could not carry on under thos" condi- „ tions. It was insolvent. The company ji had been carrying on for a large number j, of years, but it. had never made much h |of a showing. What showing it had s j made was mostly on paper. v, Mr. Daniell: What about the trading « account ? J Mr. Chamberlain: The loss for free a months was £500 for the Masterton s branch, and £200 at Carterton. We „ | did not go into.tbi* ■iiiestion of taking," stock again. Tl - will be done on , q winding up. r Mr. McGregor ».i,;.id to know what !' would happen in re'rard to the shares' l not fully paid up. ; < It was explained that all uncalled capital would be called up. There was p £077 7/0 uncalled or unpaid on the » shares allotted a few years ago. i £ CUTTING DOWN NEEDED. j s Mr. G. H. Perry said that during'V the boom time the turnover w-as very _ large. The turnover was £50,000 three J years ago. and came down to flti.OOO jj in the slump. The company did not c realise that the turnover was coming P down to such an extent. The expenses f, should have been cut down. He went t |on as a director in 1922. nnd his first ' | insight into the state of affairs was n 1 when be found that the expenses on a -" | turnover of £.1000 were £2400. The only " I way to have met this was by a drastic > | cutting-down of expenses. If the com- " | pany had cut down the overhead n I expenses it should have been in a good t I position. - 1 i Mr. Barton asked what the had debts i were estimated to realise. Mr. Cham- J j berlain said that the total book debts i i were estimated at £1(1,000. s I Mr. Howard Booth stated that two r or three years ago he had drawn the v attention of certain directors to the I manner in which the company's business J: was being run, but with no "effect. , s Mr. G. H. Perry said that the direc- jJ, tors would be the greatest sufferers, t There was a guarantee to be met at! ' the bank. , T When the amount of the guarantee v was stated, Mr. Booth said: "And only, jj seven directors! Why, it's worse than (' the Meat Company!" ; i Mr. Armstrong said it appeared as 0 though the motor side had put the com-1 I panv out of business. ] ° Mr. Daniell said "No." The loss on<o the motor side was only about £0000. i s The resolution was then put to' 'J the meeting, and was carried unani- : mously, Mr. W. E. Chamberlain bein~ ' appointed liquidator. " P ' t