BEEF TRUST.

Manawatu Times, Volume XLVII, Issue 2763, 3 October 1923, Page 4

BEEF TRUST.

SMBEHOLDERS DECLINE VESTEY’S OFEER. NOT IN INTERESTS OP PRODUCERS. FURTHER APPEAL TO MORTGAGEE. NOT TO FORGE SALE. [Per Press Association.] GISBORNE, Last Night. The affairs of the Poverty Bay Meat Company were ventilated at a big meeting of shareholders to-day. The company is in financial straits and the works have been advertised for sale on account of the mortgagee. The principal matter for consideration was the report thai Vestey Bros, were likely to attempt to acquire them. It was stated that the firm of Nelsons <N.Z.) Limited, on behalf of Vestey’s, had lately made an offer of £225,000 for the property without encumbrances.

The report before the meeting estimated the value of the property at £400,000. It was stated that the position would be, if, Yestey's bought at the mortgagee’s sale at the amount of their offer, that shareholders would lose all their' capital and the guarantors would have to find £BO,OOO in addition.

It was indicated during the meeting that despite the statement inade by the Meat Export Board, the Minister of Agriculture had intimated that he was prepared to agree to the transter to Vestey Bros. It was also Intimated that the company had reduced its overdraft to the National Bank from £350,000 to £300,000 since February. Other charges against the property were a mortgage stated to be £32,000.

It was declared that the company had made a working profit of £.3 SOO last year, but there had to be offset against that losses of £O,OOO made in the previous year. The Bank was not interested in the steamer Admiral Codrington, which was excluded from Yestey’s offer. It was stated that the ship had ncurrod a. loss of £6OOO till January mst, and that its present voyage would not affect the financial results one way or another. The intention of ..he directors was to dispose of the ship, on which a mortgage of £60,000 was held, in England.

It was ,stated that the directors had notified the National Bank that Vesteys’ offer would cause ruin to the company, and that ir Yestey’s acquired the works it wotnd be detrimental to the interests of the producers. The meeting decided, with only two dissentients, that the directors’ action be confirmed in refusing to sancition the sale to Yestey’s; that if the sale took place It would be detrimental to producers by stifling competition; that the Bank be again asked not to force a sale and if the Bank agrees that the shareholders should take up extra shares or allow a levy against stock, or that, if the Bank refuses, a further appeal be made to the Government and. the Moat Board to stop the sale, and if it is unsuccessful that the shareholders take every legitimate step- to prevent Vestey Bros., or any other overseas interests from continuing the work or acquiring freezing works In New Zealand.