FOURTEEN DAYS FOR ACTION

Press, Volume LXXII, Issue 21746, 31 March 1936, Page 10

FOURTEEN DAYS FOR ACTION

FUNDS FOR SUMMIT

ROAD TRUST

MORTGAGEES TAKE CASE

TO COURT

DEBTS AMOUNT TO £BOOO

Fourteen days remain in which the Summit Road Trust must take action to safeguard the Sign of the Takahe and its other assets as public property. Mortgagees, to whom a large sum is owing in arrears of interest, took the matter to court this month and the trust was allowed a certain period, of which the fortnight remains, in which to find some means of meeting its obligation before the court may be forced to take action. • The urgency of this situation was emphasised by the chairman of the Summit Road Trust, Mr Norman V. Smith, and by a member of the trust, Mr W. W. Scarff, at a special meeting held yesterday afternoon at the Sign of the Takahe, at which representatives of public and semipublic bodies, prominent churchmen, and leading business men were present. It was made clear to the meeting that the debts of the trust including mortgages, arrears of interest and rates, and debts to unsecured creditors, amounted to £BOOO. Mr Smith later explained that the situation had been reviewed by the Mortgagors' Adjustment Commission. The commission had made an order which the mortgagees were not prepared to accept, and the matter had since been taken to the Supreme Court,

Preliminary Meeting

Yesterday's meeting at the Takahe was a preliminary to the public meeting which has been called by the Mayor, Mr J. W. Beanland, for Thursday evening. Its object was to interest prominent citizens in the affairs of the trust to ensure that something definite is done on Thursday. Mr Beanland presided and welcomed the visitors. He explained that the Summit Read Trust had decided to call this meeting and entertain prominent citizens at afternoon tea so that it could put the position before them. It was hoped that something could be set going to relieve the situation and ensure that the assets of the trust remained the property of the public. Evpryone knew, Mr Beanland said, the wonderful work Mr H. G. Ell did and the energy he put into it. The Takahe would never have been built had it not been for his perseverance. His labours had not been for himself but for the whole of Canterbury. The present debts could not go on for ever. Those who had lent money must receive some return.

This meeting was not meant to anticipate the public meeting on Thursday, Mr Beanland said. It was the aim of the trust to get its visitors keenly interested in its problems.

Financial Obligations

Mr Smith, as chairman of the trust, then gave details of the trust's financial situation. There was a first mortgage of £4OOO and a second mortgage of £SOO. On the first mortgage the arrears of interest amounted to £469 at the end of last October, and, on the second the arrears were £lO9. Rates were also £175 in arrears, and there was £1630 owing to guarantors for the Sign of the Kiwi, who were not secured. Other unsecured creditors v-ere owed £I6OO. These debts amounted to more than £BOOO.

The trust could just manage 1. pay its interest on the mortgages, Mr Smith said/ but could not reduce its debts. Mr Scarff, as chairman of the Beathcote County Council and a member of the trust, said that his council would not be lacking in support for the trust. It had often helped in the past. He made it clear that the trust had only until April 13 in which to take some action.

Plans for the building as it would he when completed were hsiided to the visitors. Mr Smith answered several questions but reserved detailed information for the public meeting on Thursday. The meeting received with applause the announcement of the Mayor that Mr E. E. Collins, as architect for the building, had given his- service in a purely honorary capacity.