COMPANY AFFAIRS.

Auckland Star, Volume LIX, Issue 173, 24 July 1928, Page 4

COMPANY AFFAIRS.

NEWTON KING, LIMITED

"NO CREDIT BALANCES."

REDUCTION OF CAPITAL PROPOSED

''From the profit and lose account it will be seen that the whole of the trading protit has been absorbed by provision for unsound accounts. The company ie, therefore, faced with the position that it has no credit balances available to meet the 1927 and 1928 preference dividends which, as shown by the balance-sheet, are unpaid." This is the initial statement in the eighth annual report of the directors in Newton King, Limited, the well-known Taranaki mercantile firm. The report proceeds as follows: —

"In drafting the accounts we have to advise that the ordinary procedure of past years has been adopted and that the usual allowances for depreciation of properties, plant and other fixed assets have been made. Your directors are, however, of the opinion that the allowances made to date on these assets and the provision made on book debts, will not meet the position. They believe tha.t, owing to the necessity for further substantial writing down of the assets, a reduction of the capitalisation is inevitable to put the affairs of the company on a stable basis. With this end in view they have engaged Messrs. Clarke, Menzies, Griffin and Ross, public accountants, of Wellington, to investigate the present position of the company and to co-operate them in evolving a _:heme of reorganisation for submission to the shareholders, which it is hoped will ensure the future successful working of the company and also provide for an equitable adjustment of the various interests concerned.

■'At the moment trade prospects are very much brighter than they have been for some time past, and your directors believe that if the position, as it, exists today, is met in the right way, with wise and careful management, the company has a bright future."

HOYES MOTORS, LIMITED

SOUTHERN FIRM TAKES OVER

The business o£ Hoyes Motois, Limited, Upper Queen Street, which is in process of voluntary liquidation, will be taken over on August 1 by the Todd Motor Company, which has branches in Wellington, Christchurch, Timaru, Dunodin and Invercargill. The Buick and Oldsmobile agencies will be relinquished, but the personnel or tlie liquidated firm will be retained, together with the older hands in the service department. The Todd Motor Company is Dominion distributor oi cars.