Loan and Mereantile Com-Pany,

Manawatu Herald, 13 January 1894, Page 2

Loan and Mercantile ComPany,

The cable news from Xjondou^ of the statutory meeting of ihe New Zealand Loan and Mercantile Agency Company stales, the Creditors' CoriiiiiHtee repdrfceljl ih^t power-f-il counsel were of opinion tiiat tne old debenture holders were not

secured. Mr Browne, the Committee s solicitor, strongly condemned the manner of issuing the 1892 stock, and accused the management of having issued , misleading circulavß. Sir James Fergussoii defended the directors and justified their action. The meeting was noisy, and bir

James Fergtrason Vag subjected to considerable interruption while explaining the adtlott of tb"e directors; Tlie mfcetitig.was adjditrfiea iiritil the reconscruStion scile'iiio lids been issued to the shareholders. At the meeting Mr Stewart, official receiver, alluded at length to the various issues of debentures; atid stated that Mr Paul had failed to satisfactorily explain his letter to the holders ot terminable debentures, who asked what their position would be when the debentures were issued in 1892. He ought to have told them the-y would have no security; The "directors were -also responsible in this matter. The creditors ought to hear Mr Paul's reasons for not explaining the position thoroughly. Mr Browne said the trust deed executed in 1892 was pernicuous nonsenses He believed the directors iiaa liiade a terrible anci unfortunate mistake. They ought to have had more regard for the interests of the creditors, but, in his opinion, the creditors had no claim against the directors.

Sir James Fergusson objected to Mr Browne's strictures on the trust deeds, which had been drawn by most eminent counsel. The reconstruction scheme, he said, would give the creditors security of mortgage, with five per cent interest. Several shareholders asked the Receiver to publicly examine the directors and shareholders

The meeting was a quiet one except for the attack on Mr Mundella for selling shares. Sir James Fergusson and Mr Geovge Eussoll justified his action.