Nursing the Assets

Manawatu Times, Volume 59, Issue 272, 20 November 1934, Page 7

Nursing the Assets

The Commissioner remarked that it might be advisable to get what was possible by nursing the assets, rather than by running the risk of losing everything. If the debenture-holders approved of the scheme he could do nothing but recommend it. Perhaps the scheme could be modified a little. Mr Monahan: If the scheme is modified, Dr. Louat will lose all interest in it. All these moves are being made to cover up your previous findings and to put the matter in a new garb. Personally, I do not think there is the slightest hope of the' public contributing any' further money to these com-

panies. Mr Monahan, who is assisting the Commissioner, said he had considered Dr. Louat’s scheme, but it was fundamentally opposed to the views of the Crown. The Crown could not countenance any' scheme that did not allow for the restitution of money to the debenture-holders. It would be mockery for any scheme ho allow McArthur and Alcorn to take out £IOO,OOO, and he would not associate himself with any scheme that acquiesced to such a state of affairs.

Mr Pitt, K.C., said ho represented 326 debenture-holders, whose subscriptions to the companies totalled nearly' £74,000. Mr Swan, of New Zealand, had handed him a proposal which he would put beforo the debenture-holders in New Zealand. The scheme was similar to that put forward by Dr. Louat suggesting control by the de-benture-holders, although there wcic certain differences respecting detail. He suggested that he should be allowed time to confer with Dr. Louat and tiy to reconcile the differences.

The Commissioner said any scheme would have to be feasible; otherwise it would be idle to put it. forward. _ A statement should be prepared showing the debenture-holders’ financial advantage with any particular scheme. The Commissioner recalled Hewitt regarding the rents from tne trust building. Hewitt said they were about £3OO per month. The building was not fully let,' as difficulty was being encountered by r the uncertainty regarding the future of the companies. When prospective tenants realised that there would be a continuity of occupation, the remainder of the building would probably soon be let. The Commissioner said that, before a value of £300,000 could be placed on the building, the rents would have to aggregate about £16,000. Before adjourning the Commissioner asked that both Mr Pitt’s and Dr. Louat’s schemes should be submitted to Mr Hill, the accountant, for a report to the Commissioner.

The Commissioner said he would receive counsel in his chambers if they wished to adopt his suggestion, for thrashing the matter out there. The inquiry' was adjourned till' Friday.