FREEZING COMPANY'S TROUBLES

Evening Star, Issue 19412, 22 November 1926, Page 16

FREEZING COMPANY'S TROUBLES

FAILURE OF LONDON BUYERS [Per United ■ Press Association WAIMATE, November 20. At the last annual meeting of tlio Waitaki Farmers’ Freezing Company it was shown by the balance-sheet that the company had sustained a heavy loss through the failure of a London firm of meat buyers (F. J. Walker and Cp.), to which it had disposed of the previous season’s meat, and a meeting of the shareholders of the company'was held at Waimate on Saturday afternoon last to discuss the position. There was a large and representative attendance, including some of the directors of the company. Mr George Barclay presided. Mr John Meehan said that at the request of a number of shareholders ho had called the meeting to discuss the best; way out of the present position, as a large number of shareholders were billed Jor calls that could not possibly be of any benefit to them after _ they had been paid. Would it be advisable to go into liquidation, asked the speaker, or continue supplying lamb to Pukeuri for the benefit of the mortgagees, who, as far as he could see, would be ,the only ones to reap any benefit from carrying on the works. If it took 200,000 head to pay expenses and interest, the shareholders would have a long time to wait for a dividend. The speaker said be was only a small shareholder. He had merely moved in the matter to assist others. He had the same interest as the mortgagee company. Mr M. J. Corrigan said there was a rumor that the New Zealand Refrigerating Company had partly taken over the works for the present season, and Was putting its brands on carcasses.

■ Mr D. Williams, one of the directors, said ho would answer any questions to the best of his ability, and lie invited other shareholders to ask further questions. Mr J. Tangney (the first secretary of the company! asked for details regarding the called and uncalled capital. Mr Corrigan again asked if the works were being run by the New Zealand Refrigerating Company. Mr Williams said that was incorrect. The company was not run by the New Zealand Refrigerating Company. Mr Corrigan: Will Mr Williams say the company is not financed by the New Zealand Refrigerating Company? Mr Williams said there was evidently a misunderstanding. To a certain extent Mr Corrigan’s statement was right. They had sold part of their output to the Refrigerating Company, which paid cash for it. They could sell the rest anywhere they liked in the best market and under any condi tions. The company had made a big loss, and if the New Zealand Refriger ating Company liked it could wind up the company. The company was standing loyally to the assistance of the Far-mers’-Company, Ho realised it was hard making calls on people who could not afford.it. The speaker said; that when he induced people to invest in the company it was a good business. It bad made* a good profit the first year Mr Williams referred to the collapse of the firm to whom the company had sold its meat this year. The directors were doing their best, and this there would be no similar occurrence. If the shareholders backed the company up it would help them materially. If the company went into liquidation all the calls would be made for the purpose of winding up the concern. The directors were as easy as they could bo on the shareholders in the matter. Mr Meehan said they might ask the directors to resign, and then let the New Zealand Refrigerating Company sn© for calls, but if it did that it would not - get much of a hearing frora_ the farmers of the district. The position was that the bank would make the calls, not the New Zealand Rerigerating Company. Mr Meehan said he understood that the calls would have to he paid, but after they were paid they need not trouble about supporting the works.' The meeting was called to ascertain whether the _ shareholders wanted to go into liquidation or let the New Zealand Refrigerating Company sue for the calls.

Mr Corrigan said the bank never stood to lose a shilling. They were financed by the New Zealand Refrigerating Company. If the directors were to lose, the New Zealand Refrigerating Company would force payment of the calls, for which the directors would be blamed. Ho said that if the New Zealand Refrigerating Company could not state what amount it would write off t|ie purchase price, then let the shareholds give it the works, and let it sue for the calls. Ho suggested that the directors be asked to resign. Then a delegation should go to the New Zealand Refrigerating Company and ask what it would do. They had now a chance of compounding with the New Zealand Refrigerating Company. He would propose that the directors be asked to resign, and a publio meeting of shareholders he called in ,Oamaru. Mr Meehan seconded the motion.

Mr W. Stewart said ho thought the works were purchased too dearly. The question of purchase should have been referred to the shareholders. With regard to the present, he thought it was rather optimistic to hope they would pull through this season, as there was a good loss behind them. If they kept a united front they might yet build up the business of the company. He moved—“ That this meeting appoint a deputation to confer with the directors with a view to interviewing the New Zealand Refrigerating Company in the direction of arranging the writing off the Value of the works. 1 '’_ The motion was carried without dissent. Mr Corrigan’s motion was withdrawn. An amendment, moved by Mr W. Lindsay, that, failing a reduction of capital being obtained, the company should go into liquidation, was defeated.

Messrs W. Stewart, M. J. Corrigan, J. Meehan, E. J. Meredith, and J. Simmons were elected to meet the directors of the Pukeiri works on Friday nest at Oamaru to report to a meeting to he held at Waimate on Saturday, December 4.