THE PURCHASE OF COLONIAL MEAT COMPANIES.

New Zealand Mail, Issue 1321, 24 June 1897, Page 21

THE PURCHASE OF COLONIAL MEAT COMPANIES.

London, June 20

Mr Hooley has made public the details of his scheme for the purchase of the businesses of the* meat companies of Australasia. He sees no reason, excepting want of combination, why A ustralian meat should not realise Id por lb more than at present, this increase amounting to an additional .£750,000 a year for the colonies. His proposal is, if a sufficient number of freezing companies can be piirchased, to amalgamate them with a larger capital than their present aggregate value. He proposes to purchase the old companies from the date of their balance-sheets, at a price equal to their net assets as shown by these balance-sheets, together with a bonus equal to the aggregate amount paid in dividends during the last seven years, or pro rataii the company has not been in existence seven years.

As to purchase price his proposal is as follows :—The debentureholders or bankers who have lent money to have the option of taking either 5 per cent, debentures, stock in the new company or cash ; the trade creditors to receive cash; the reserve funds to be repaid by a second call on the debentures or by cash ; owners of the remainder of the assets to receive onethird in cash, one-third in preference shares and one - third in ordinary shares ; the bonus to be paid half in preference and half in ordinary shares. The capital of the proposed pooling company must depend on the amount to be paid to the companies joining, but it will be divided approximately thus : —The assets of the companies purchased and the bonus will amount to about 60 per cent., promotion money to 15 per cent., and the working capital 25 per cent. The capitalisation will be one-third in 5 per cent, first mortgage debentures, onethird in 7 per cent, cumulative preference shares, and one-third in ordinary shares. The London Board will administer the Operations of the company. Two-thirds of the original board will consist of nominees of the old companies, while local directors will also be appointed. The directors of the companies absorbed may join in the promotion of the scheme. The amount to be paid to each company is not to exceed the share capital due to each company. The capital of the new undertaking may possibly reach four millions.

Mr Hooley's chi«-f adviser in regard to the scheme is Mr Marshall Stevens, late managing director of the Manchester Ship Canal Company.

Brisbane, June 22

The chairman of the Queensland Meat Export Company doubts whether there is anything in Mr Hooley's scheme. It will be, he thinks, very disastrous to the producing interests, and if carried out it would mean the turning of the meat export trade into a great monopoly, which would be very undesirable. His company has not been approached by Mr Hooley and is not inclined to sell.