POVERTY BAY COMPANY.

New Zealand Herald, Volume LX, Issue 18537, 23 October 1923, Page 6

POVERTY BAY COMPANY.

DEBT TO NATIONAL BANK. EXPLANATION OF REDUCTION [BY TELEGBAPfI.— ASSOCIATION.] I GISBORNE. Monday;-' ;, Representations having' been . made to the chairman of the Poverty Bay Farmers', Meat to; that a'false : impression?: may be created by the publication of the fact that the company's indebtedness ;to the i National v Bank of jj New Zealand' has • been! i reduced • by £47,062, between V February: ; 13 " and August 31 last, Mr. Lysnar says "It is only fair to state that the reduction included £36,810, as cash received in calls; and that the amount; thus received correspondingly :';■ reduced \i} the ■ v bank's se- ■ curity against, uncalled capital; I„ addition the ; bank ; held on i August 31 / bills totalling £15.235, -of which £13,502 had been taken by the' bank from shareholders who could not provide -cash'calls' due;: s The' amount of: calls'represented by bills was v treated • in > the company's balance-sheet on 1 August 31 lasers-paid-up ;• capital and"the amount* transferred to bills receivable. v,Subsequently the bank discounted £13,500 of these bills. This, after allowing for a half year's interest reduced the. amount owing to 'i the bank ;; on''; September 30 - : to - : £299,768 ■* as compared v. ilh £350,388 'on February 13' last, but this entailed a corresponding further decrease in the bank's security 'of £13.500, ; making a total reduction of £50,310 in the batik's security "over [the ' uncalled ' capital against tho; reduction of ! £50,600 in the overdraft." j