PREFERENCE SHARES

Evening Post, Volume CX, Issue 52, 29 August 1925, Page 6

PREFERENCE SHARES

AND COMPANIES' LOSSES.

(»f THJOnAPB.— SPECIAL TO THI POST.I

DUNEDIN, This Day. Speaking on the question of preference shares and .debentures of! public companies at the annual meeting of tho Dunedin Chamber of Commerce, the president, Mr. Peter Burr, said: "The views expressed by nua year ago have unfortunately boon confirmed by subsequent happenings. I need only add now that I strongly deprecate the way in which some companies, even under stress of serious losses, are asking preference shareholders to forego or modify their rights, which only means that they are not prepared to carry out tho contracts into which they had entered in better times. The losses, which have been made should in equity fall upon those who, under contract, are entitled to bear them, and departure from this sound doctrine will certainly have the result of making capitalists in,future extremely chary of putting money, into such investments. Investors in future will be well-advised to make sure as to the exact conditions attached to the iseuos of either preference shares or debentures (which are very varied), and to see that there 1b no ambiguity before they invest. One company, in submitting certain proposals to preference shareholders, says there is nothing novel about them, and that similar action is being constantly taken at Home with tho approval of eminent Judges and financial authoritios. I venture to definitely quostion that statement, and to say that even if it be correct, it is so much worse for tho reputation of even eminent British iiithnrities."