WILLER AND RILEY'S POSITION.

Dominion, Volume 2, Issue 322, 8 October 1908, Page 5

WILLER AND RILEY'S POSITION.

PROPOSED LIQUIDATION. , WILL FACTORIES BE AFFECTED? Farmers fissociated with dairy' factories which liavo contracted to consign tho season's "output through 'Messrs. Wilier and Riley will bo deeply concerned at the news of that firm's.proposal to go-into voluntary' liquidation (as cabled), and will bo anxious to know how' their own interests will bo affected. . _ ... - . .From an ordinary business point of view, thore docs not appear to bo any causo for anxioty. Let-tho position be reviewed in detail. According to tho cablegram, it is fair to conclude that Messrs. Wilier and Riley aro solvent, but" have been embarrassed by. the' loss of £92,852, withdrawn by the fraudulent Alfcerti. . A-' firm of merchants can, of course, be solvent and yet be unable to carry on their business for want of ready cash, because considerable surplus capital is necessary to finance a largo credit trade. Voluntary liquidation" would be an expedient to meet,the situation. 'It is estimated that : in spito of the loss occasioned by Alberti, the firm would have a credit balance of £100,000 available for'shareholders, after paying off all their liabilities. It may be asked why, if this is the position, do they "propose to go into liquidation? Very good reasons are possible. Apart from the question of ready cash, there is possibly- something to bo said in favour of the step as a _ means of dispelling any rumours that might prevail as to tho firm's soundness. Liquidation, will clear the atmosphere, and, by. showing tho exact position of aliairs, assist to rostoro confidence. The final outcome may bo a new company, with new capital. In the meantime the business of Wilier and Riley will, no doubt, bo carried on under a liquidator appointed by tho shareholders. In all probability this-would be the.: present managing director, Mr. Wilier. There' would thus be no break in the company's business. In consignment contracts made by New Zealand dairy companies there is usually a stipulation for an advance without recourse. In tho ease of Wilier -and Riley that adyance is understood to be within about 90 per cent, of tho' current selling- value, and their- New Zealand representative has already stated on several occasions that the advance is obtainable from Wilier and Riley's bank beforo delivery or the butter or cheese. In view, of these . circumstances, there is no need for any serious uneasiness on the part of, New Zealand dairy farmers whose incomes next season aro to arrive through tho hands of the firm.