FINANCIAL PROBLEM

Evening Post, Volume CXI, Issue 93, 21 April 1931, Page 12

FINANCIAL PROBLEM

SOUTHERN CROSS GLASS

Shareholders of Southern Cross Glass Co,, Ltd., met at Ashburton on Saturday, Mr.. L; L.-Cordery'presiding. The chairman regretted; the necessity-for .the meeting, and he personally accepted the responsibil-ity-for", its having .been called. He had been bitterly .disappointed that the position as it appeared to be dawning at the date of the last annual meeting had not materialised. Shareholders would remember1 that at the annual meeting he ■ had stated that though the company had ■practically overcome all the technical difficulties, finance.'was'the: groat; trouble and that-the. coming few months would decide that question. Since the animal meeting the depression which was in evidence had reached its'lowest point,. towards the cm of February,'with' the result .that-several large orders -which' had been promised had been" withheld: ■ ■'~,•"' , The oil fuel tank which had been put into operation prior to the annual meeting had been a complete failure in that it had consumed .about. 75 per cent, more fuel than they were led to believe it would when' permission was given for its construction. This involved a heavy additional expense for fuel,- in addition, to which' it had not been possible to work the tank more than one shift per day owing to the length" "of time required to melt the glass. This naturally affected production, which had fallen considerably below expectations. ' The company had now (jonie to the end of its available cash, but with a considerable amount owing on share capital. At the same time'they had the factory in a condition such as it never had been before The plant and equipment were capable of dealing with large orders, and they had an excellent staff with a full knowledge ot their work, and generally speaking, the organisation was excellent. Money, however, was the main difficulty. The directors had no wish to wind up the company, but the position was so grave that honesty to shareholders and creditors compelled them to. call the meeting, in order to give the shareholders every information and leave it to them to decide whether to liquidate or find new capital to carry on with when, the economic conditions improved. He moved: "The directors having stated their intention of numerically strengthening the board by the election of the Hon. A. S. Malcolm and Messrs. S. Ritchie and E. P. H. Burbury thereto, this meeting resolves that the whole financial position and the future of the company be referred to the directors with full power to act on behalf of shareholders." This was seconded and carried unanimously.