MAHAKIPAWA AFFAIRS

Evening Star, Issue 21284, 13 December 1932, Page 5

MAHAKIPAWA AFFAIRS

SHAREHOLDER'S COMPLAINT DIVIDEND PROMISED OH LAST PREFERENCE SHARES PRUDENT RESERVE POLICY [Special to tiie ' Star.’] CHRISTCHURCH, December 13. A correspondent, “ Dissatisfied Mahakipawa Shareholder,” writes as follows to this morning’s ‘ Press ’: — “ When the Mahakipawa mine was threatened with closure in 1931, I was among many shareholders who had previously listened to vain promises, and parted with money to keep a sinking ship afloat. I listened to the statements of tho directors, the mine manager, etc., in 1931, and was induced to part with more money for the last issue of preference shares, with the assurance held out that they would bear interest at 8 per cent., which interest the company promised to pay the moment the mine was out of debt. However, no 8 per cent, interest has been forthcoming, though the mine has been out of debt some months. Why is this? As one cannot get any reason for it from the directors or the secretary, 1 should like to ask the question publicly? Good returns have been published, and a high price is being paid for gold. Surely the last preference shares interest is in honour bound to be paid? Can the directors be frank and state publicly why it has not? We are drifting back to where ws were prior to the former directors advising the closing of this gold claim. The scant information published from the mine manager does not inform us where our 8 per cent, is.” When the above complaint iwas referred to tho chairman of directors (Mr J. R. Templin) he said th ecompany bad paid off its debts, and the balance was being held in reserve to provide against possible poor returns. The fact that the return last week had been the smallest in the company’s existence, emphasised the prudence of this policy. When the reserve was considered sufficient, dividends would bo paid.