INVESTIGATION SOUGHT

Press, Volume LXXVI, Issue 23086, 31 July 1940, Page 8

INVESTIGATION SOUGHT

—♦ — UNDERWRITING COMPANY PETITION PRESENTED TO PARLIAMENT [From Our Parliamentary Reporter.] WELLINGTON, July 30. An immediate investigation into the affairs of the New Zealand Underwriting and Development Corporation, Ltd., with a view to ascertaining whether it is economic that the company should continue its operations, is sought in a petition presented to the House of Representatives by Mr D, W. Coleman (Government, Gisborne) oil behalf of the Hon. W. E. Barnard (Democratic Labour, Napier),, for G. Thorne George, of Westshore, and three others. The petitioners, shareholders in the company, ask in particular that they be relieved from liability for payment of calls due in June, July, and August this year, and for any future calls that may be made. The petitioners express the belief that the capital had been invested in assets of the most hazardous nature, and now of very doubtful value, and .that if further calls are made on shareholders the funds so subscribed can have no possible effect in improving the position of the company. “The funds so subscribed would undoubtedly be wasted, and the purposes to which they would be applied would be of no economic value -whatsoever to the Dominion,” the petition says. “Furthermore in view of the many calls made bn shareholders for war purposes, it would be a grave hardship if the shareholders were obliged to pay the calls mentioned.”