MAHAKIPAWA AFFAIRS

Evening Star, Issue 21286, 15 December 1932, Page 8

MAHAKIPAWA AFFAIRS

ANOTHER PREFERENCE SHARE COMPLAINT [Special to the 1 Star.’] CHRISTCHURCH, December 15. A further correspondent, “ Disappointed Shareholder,” writes in this morning’s ‘ Press ’: " I have read ‘.Dissatisfied Mahakipawa Shareholder’s ’ letter in the ‘ Press ’ on Tuesday with interest, and being one of those who responded to the company’s appeal for funds on more than one occasion, must also express disappointment with the non-payment of the preference nterest. The original issue of preference shares must now date back some two years, and a breach of the understanding at this juncture can hardly appeal to those subscribers who were prepared to take a seemingly poor chance. All credit must ho given to the executive for the present satisfactory position of the company, and one must also applaud the cautious policy, but an . ndertakirg is an undertaking, and the citation of one bad return in mining should hardly be allowed to outweigh the general position in such circumstances. An adequate reserve fund in a commercial venture must bo admitted to bo a sound institution, but many would rightly prefer early distribution where gold mining is concerned. In this case, it is assumed that the .nine is amply developed to pay its wav, and that the payment of interest would still leave it with sufficient in hand.”