THE LITHGOW WORKS. AN ARRANGEMENT.

Evening Post, Volume LXXIV, Issue 148, 19 December 1907, Page 7

THE LITHGOW WORKS. AN ARRANGEMENT.

By Telegraph.— Preas Association. —Copyright. (Received December 19, 10.20 a.m.) SYDNEY, This Day. The Premier, in the House, "announced ■that the Lithgow ironworks would be in full working order early in tho New Year. The firm of C. and Z. Hoskins will take Mr. Sandford's place, and be possessed of sufficient capital and enterprise to make tho industry an assured success. Provision of a very liberal character is being made for Mr. Sandford, who thoroughly appreciates the arrangements made. Mr. Wade gives details to-day. The assets and liabilities of the company were stated to be as follows : — Assets : Blast furnaces, plant, and aito of 56 acres, £100,000; ironworks, plant, and site of 20 acres, £77,000; freehold, town estate of 400 acres, £49,000; colliery, £20,000; Carcoar and Cadia ironore leaseholds. £5000; debtors, including the Government and deposits on contracts, £25,000; stocks of raw and manufactured materials, £45,000; sundries, £3000; total assefs, £324,000. Liabilities: Bapk, £] 31.000; other creditors (including Mr. Sandford, £4000), £32,000; total liabilities,' £163,000. There is thereforo a surplua of assets over liabilities of £161,000, which is represented by shareholders' funds — share capital, £148,000, and reserve fund and accumulated profits, £13,000 The bank (says a Sydney paper) holds security over all the assets, so that tho difference between the amount due to it, £131,000, and the total assets of £324,000, is its margin, and that is £193,000. That margin is the nominal margin. The true margin is the difference between its advances an the realisable value of tho assets under tho hammet-. In addition, all Mr. Sandford's private possessions aro pledged to the bank. A syndicate- formed to- purchase tho business from the bank would therefore require only £70.000 to purchase the whole concern of blast furnace and iron works, and land, and colliery, and to erect the proposed additional plant as well, if the bank was willing to continue the advances to such a syndicate in the same way that it has 'agreed to do for Mr. Sandford, if the Govcrnmont lend him *the £70,000; and tho bank would retain its complete priority. Such a transaction between the bank and a syndicate would, of course, leave nothing whatever for Jlr. Sandford and his shareholders, or any of the creditors other than the bank.