RELIEF OF GUARANTORS

New Zealand Herald, Volume LX, Issue 18460, 25 July 1923, Page 8

RELIEF OF GUARANTORS

NEW ZEALAND J3AQOK frfl! _ .-■ .;.-'. -lj SPECIAL EMPOWERING Bl» NOTE OF CAUTION STRUCK ! fa*-' TELEGRAPH.— SPECIAL BEPOm- "'''i ■ WELLINGTON, Tu M fe l; -4 j A good deal of criticism was' vraifo', ''' J by the Companies; Special En|i§M Bill, a Government measure, dea'injr V ■ ' 1 the affairs of the New Zealand Meat jS 1 ing and Bacon•■Company, when ft, 2* up for its second reading in the ' % of Representatives to-day. The Bill ' il! vides for the granting of/special auihffii I to certain companies, mostly co-opera"' " : I dairy concerns, :in the North Island Vv '"'i grant relief to certain directors, IP 111 bacon company who have become-JjSSfl as guarantors for the repayment of' ino3! borrowed by the company. The littgS 11 in process of being wound up. ';'' '■ mfM The Minister for Agriculture,' the &. : ' (' W. Nosworthy, who had charge off" Bill, explained that "the Meat PactS' ! and Bacon Company had got into' d l 3 - culfaes owing to the depression, and ft i guarantors had been called upon" % i guarantors . fiat upon the directorate 9 ■■, representatives of various dairy' compani!! ! ' which were interested in .the •'company'! operations. They had given their guarantees in the same capacity. The Bill w " intended to empower the shareholders: 0 f I the respective companies for whose W fit ; the. guarantees bad been ■ given 'V ' '•! grant relief to the guarantors if : th !j ■ x so decided. ■< . ' 'j Other Interests Involved. Z. "'} The Leader of the Opposition, Mr. Wil. " lj ford,- ' said the Minister had not said-- ; I single word about the debenture holders ' ! and preference shareholders of the cvgrthmhuk%, j pame s concerned. They were vitally-coiii'lm cerned about the voting of sums amount"' ing to thousands of pounds to' recoup the, ! guarantors, yet they had no say in that matter. He intended to introduce a de. ' putation to the Prime Minister, asking ' '■'' that the Bill be not mado law'■'" iaifta "$ present form. - -'j .■' .') , U M \s• X , H * wk «» (Egmont) suppoilU' I the Bill as fair and reasonable.. -• '•:■ x Mr. H. Poland (Ohinemuri)i .'mentioned he had presented a petition from shafiv ' holders'in the New. Zealand Co-operativ<j ' ' Dairy Company; opposing the Bill. Otfe ; .' shareholders' of the company were protecting, and , had passed resolutions on'; thVC'''- : j subject. . ."- ' i Mr. F. F. Hackly (Rotor said:.Ujit" ■■'] he approved of the,Bill. He was a snaif. ; holder in two cof '■■ the \ companies -.' .■■'■;•-. cerned. The object -was : . to enable th« shareholders to pay'a debt of honouiv " '■ ■} Mr. F. J. Rolleston ' (Timaru) said J the interests of the- various companies- :;:*'"] creditors htid to be. .considered. "If the .:i .Bill .were passed as it stood they would have just• cause to ■: complain that '•/Ihevy?:® had been misled. The Bill also gave thV'j guarantors an unfair preference. , -"'. V " "Commercial Immorality.", '* ■' Mr. D. G. Sullivan (Avon) sajd that, , to him the Bill had the - appearance oil .'. ', commercial immorality.' It placed orilfii- ' ary- creditors in ,a most unfair position.' ' : "The Minister would be insulting the ia,- " telligence of the House if. he were t<* ' ask the Efouse to pass this Bill op,' lii* '"■■' word without investigation," seid IJr. & W. Forbe!. (Hurunui); ' "'■■„'' ' Several members supported the prpplisal that the Bill go to'■ committee. - , . »?■' ; The Minister in reply said • thai • '':'..; was surprised that so much insiniwticßj .; had been indulged in, and. thit 'thin should be talk of commercial i^o^^^ : i- : :v|t He was aware of the petition wHichvaad : been presented, and. he ■ had. iitendal. to move'that, the Bill be re f erre*i, to,tVs Statutes 'Revisionr,Committee 'He';.proposed to. give members "'every. ppporiunijsy i | to call all the evidence they wanted., The 1 £ •Government had never wished, to.do 'any* | thing but what was fair and right.: v •". ;|ia[ ..-.The Bil 1 wa s :read' a second, time and re. .>.;; ' ferred to th» committee.' '•', " v k ';, \|| k\