GOLDEN BAY CEMENT.

New Zealand Herald, Volume LX, Issue 18355, 22 March 1923, Page 12

GOLDEN BAY CEMENT.

THE WORKS TO REOPEN.

DEBENTURE-HOLDERS' MEETING.

There were several unusual features in company procedure at the meeting of the debenture-holders of the Golden Bay Cement Company, Ltd., on Monday, says the Wellington Post. Mr. J. S. Swan presided, and there was a moderate attendance of debenture-holders. The company purchased the interests of the shareholders of the original Golden Bay Cement Works, Ltd., for part cash and part debentures. Subsequently the company closed down, the cement market being at that time depressed, and, under arrangements with other companies manufacturing cement, decided to remain closed for a period. The matter was raised in Parliament, and the debenture-holders found it necessary to appoint a committee of investigation to look into and after their interests. That was two years ago. The company, which consists of five shareholders, now purposes to resume work at ■an early date at the Golden Bay works. This came out at the annual general meeting of debenture-holders on Monday, when the secretary, Mr. A. E. Whyte, read a statement from the chairman of the company, Mr. E. A. Loughnan, dated March 16, in which it was also set out that it had been necessary to thoroughly overhaul the works, make extensive alterations and improvements and renewals, on a report made by Mr. Wilson, works manager of Wilsons Portland Cement Company. To bring the plant up to its maximum efficiency would require £10,000, which would give an output of 500 tons of cement a week. As soon as the alterations are effected the works will come into commission, and it is confidently expected that they will give an output greater by many thousands of tons per annum than they ever did before. This work completed, the chairman of the company said it would be safe to say that it would have expended well over £30,000. Reference was made in the statement to the great demand for cement in New Zealand, and the urgent necessity for the supply to be augmented by the Golden Bay output. In order to reduce the cost of shipping, the company had under consideration the purchase of a steamer for the carriage of coal and cement. The wisdom of Mr. Luttrell, managing director, in bringing about the arrangement with other companies in closing down was endorsed by the chairman of the company for various reasons, among them being the cementing of the always cordial relations with other companies, and further establishing mutual confidence and understanding wherein the best interests of the trade were likely to find fullest development. "It is quite certain," added Mr. Loughnan, " that if the works had not been voluntarily stopped under a business arrangement, they would eventually have been stopped," and he gave his reasons.

The chairman of the debenture-holders' meeting, Mr. Swan, -who is a debenture director, said in reply to Mr. Gerald Fitzgerald, " that is the first I have heard about that report." Mr. Fitzgerald said the report had evidently not been passed by the directors. Mr. Swan: "Evidently." Mr. Fitzgerald then moved: That, following upon the election of directors of their choice by the debenture-holders, the office of the investigating committee be discontinued as from the termination of this meeting, and that it be an instruction to the directors representing the debenture holders to pursue to completion the several matters arranged and agreed 'as between the company and investigating committee upon behalf of the de-benture-holders. The motion was carried. Mr. J. C. McArthur was elected deben-ture-holders' director, vice Dr. C. P. Knight, who resigned. Captain Charles McArthur resigned his position as debenture-holders' trustee. It was pointed out that he would have to retain office until another trustee was appointed, which that meeting, without notice to all the debenture-holders, was not competent to do. It was decided to call a meeting for the purpose of appointing a trustee.