A COMPANY’S TROUBLES.

Gisborne Times, Volume XXIX, Issue 3184, 1 April 1911, Page 7

A COMPANY’S TROUBLES.

THE HASTINGS LEATHERRUBBER CO.

[SPECIAL TO TIMES.) NAPIER, March 31. ' Some months ago a company was floated in Hastings for the manufacture of leather-rubber from worn tyres,, boots, and. a multitude of other things, which are now regarded as useless. It seemed a good business proposition, and the shares sold freely. It has not, however all been plain sailing, and at a meeting of shareholders to-day the bal-ance-sheet showed a loss of £1584. The meeting was remarkable for some very straight talking. Mr. R. L. Paterson', a shareholder, requested permission , to ask Mr. Land, the managing director a few plain questions. He wanted to know how Mr. Land reconciled the statements he made to him in his office, before he went to Melbourne, goods were being produced with 7o per cent of leather in them and 25 per cent of rubber, and yet when he (Air Land) went to Melbourne to inspect, lie found that such things were a long way from the truth, and they were told to-day that leather and rubber, would not .mix. Air Land, in reply, admitted that there was a’serious discrepancy between the statements made to him in regard to the possibilities, of leather-rubber, which statements lie had, unfortunately, passed on to others when inducing them to take up shares. Air. Paterson then wanted to know why such a serious state of affairs had not been laid before the shareholders at once. ! r . , The Chairman said that. Mr. Land had given them all the knowledge he had gained in Melbourne, but it was felt that, in view of the fact that the company was already floated and committed to a large expenditure, it would be the wisest course to go ahead. Several shareholders.. spoke., stating they felt that the-directors' were decidedly to blame in not acquainting them with tlie changed position, instead . or that, the speakers asserted, gloving monthly reports had been issued. It was ultimately resolved not to wind up until an answer had been receiver! to a, .letter forwarded to an expert in London.