NEW ZEALAND LEATHER. COMPANY.

New Zealand Times, Volume XLIII, Issue 7222, 18 July 1884, Page 6

NEW ZEALAND LEATHER. COMPANY.

An extraordinary general mo-ting of share* hold,as in this company was h-!d at the t.'h v'j:b,.*r .-{ t'-enm.-i, 1 - Monday *• wrung. 'l'ln'ro was a larg*, numb l r of shar.-hoMers present, and Mr A. McTuvish <»ccup:,’d th- oh dr. The me,dm- was called for Uic c-nsid-va'd >u of the following resolution :—“That ll.e articles of association of the company be amen le.l bv adding the following new i-iau-m thereto : 2a. r l'he directors shall have power dn addition to the powers hereinbefore given to then:) t- make one call of not cxc. eding one penal (Cl) per share, payable in one Mini or iiy imt dmeuts at s teh time or times as they may appoint, plan hie I Un*t fourteen days* notice of such cill shall b • given.'’ Mr McTavish said before moving this re* solution from the ch-Vug it might be d- -irablo that the linancial condition of the comp any should be explained. Detrimental nun es !.» been spread, and he was strongly of opinion that it was well the public should kemv that whatever had necessitated the calling together of the shareholders, it was m»t a ipiestiou of the solvency of the company, which was in as good a financial position, comparatively, as that of any in the colony. The result »f the Haling transactions for the pa*t eighteen mouth* had not been discouraging in view of the state of trade generally during that period. They showed a loss of over but it was a significant fact that if the properties of the company had been freehold th-y would have escaped the payment of some £l7<!o, and thus have had a trading balance of iMOO or £7OO. Whatever temporary diU'wulty there might be now, he declined to believe that the oitl/.ms of Wellington would allow the enterprise to fall through. All they wanted was a broader share lint. The call income had been ho muill that it was impossible to carry out the business without further monetary aid. The managing director had estimated that it would require £BOOO to carry on the business, au<l that amount had been raised. Since then three shops had been stocked, at a cost of £II,OOO. Home time ago they had to inform the bank that they wouli probably require, before the end of August, some further advances. The bank replied that they could not undertake to mako thoso iulvaiic>*, Atlioiifjh rcrogmainj; that what was wanted was a m >re extended share list. He (Mr McTavish) wished to point out that Hie directors had applied far for.her calls upon the shareholders, nod that if those calls were made the hank would he prepared to make advances l<> allow the business of the company to he carried on. It was clearly the interest of shareholders to show that they wore willing to place as much money as possible in the enterprise. Tins present was a most farorahh. time. I’nhlio men were prop, aim’ all sorts of nostrums for the h'0»l of tile country—such as a hind lav, Hiihslitiitin)’ a wax candle for a tallow one ; but it was universally acknowledged that the proper count* was to foster such industries as that of this company. These gentlemen should he canvassed, and asked to support such :m institution. Ho then formally moved the resolution.

Mr D. T, Stuart seconded the motion, on the understanding Unit the directors would l»o able to obtain advances from tho bank. ITo hoped the directors would see their way to make the call as easy as possible. In fact, it might be necessary to move that the nail should not allowed unless the directors were able to extend it over instalments. He understood tho company were paying the large interest of 9 per cent, and it was advisable that the bank should he adeed to take a liberal view of the position. The Chairman said that tho directors intended to act in the manner suggested by Mr Stuart.

Mr Ellison moved a* an amendment, “ That while this meeting recognises the necessity for additional capital being found for the com* p uiCh badness, it is of opinion (1) That as the shareholders t >ok up their shares on tho basi.-i of a2s G 1 call every three mouth-, any departure from tho original condlti ms would be a breach of faith, and cannot ho permiUc 1 ; (2) that the directors should issue the balance of the unallotted shares, on such special terms and conditions a? will ensure them being taken up either by the present shareholders or the general public ; (3) that the director? should take into consideration whether, by nuch new issue of shares or by tho amalgamation of the company’s budne-B with some other sound-going concern, the necessary relief to the company’s business could not lie brought about,”

Mr 33randon, tho company's solicitor, on being consulted. said tho meeting was ono called for tho special purpose of altering tho articles of association, and no other motion could bo considered unless by notice. Tho meeting had only the power of rejecting or accepting the resolution. In reply to a question, the Chairman said that any shareholder paying up his shares in advance would be entitled to interest at a rate to he agreed upon. Mr T. K. Macdonald said tho practice hitherto obtaining in Wellington among joint stock companies was to receive amendments such as that ruled out of order, to carry them and submit them to an adjourned meeting when, if carried, they became the voice of tho com* pany. At the same time, ho did not express any opinion or question the ruling of the solicitor. Mr Miller had never known an amendment to be refused under such circumstances, Mr Macdonald asked whether the amendment was not really a negative of au explanatory nature.

After some discussion, Mr Brandon pointed out that the special resolution would, if carried, have to be confirmed at a subsequent meeting.

Mr Ellison uaked what would become of tho company in the event of the resolution being negatived. Would it be wound up ? The Chairman replied that in that case tho directors could not say what course they should take.

Mr C. J, Johnston said the trading profits of tho company wore £3077, arrival at after liquidating incidental liabilities. That amount had been spent in interest, trade discounts, travelling and directors 1 fees, &c. Had the shareholders’ own money been in the concern the company would uow bo in a much better condition. They had been handicapped from the start b* a vnufc of capital, and if they got a fair amount from the shareholders, a profit would bo yielded.

The Chairman, tn reply to a question, said the amount to be acquired from the proposed call would amount to £3OOO. That amount would enable them to make an endeavor to placo the unallotted shares. Mr Spreat said he did not pee that the call would place the company in such a position as that sketched by the chairman. What they wanted was the uncalled capital. He should vote against the proposed call. Mr Harcourt mud a painful feeling of unanimity prevailed among companies in Wellington. The chairman had shown them that the £3OOO was really wanted to enable the affairs of the company to be curried on. He was sorry to see that the directors were not unanimous on this point, more especially seeing that thrniHsenting director Lad only been in office for six months.

Mr Miller thought £3OOO would be of no uso whatever in view of the increase of the overdraft since November last.

Mr Spreat, iu reply to Mr Harcourt, pointed out that it was not incumbent up-*u bim to follow his fellow-directors blindly because he had been in olfice a short time.

Mr Fox asked whether the resolution proposed had been arrived at by a majority of the directors ?

The Chairman said it would be invidious on his part to go into such a question, and Mr Fox accordingly withdrew the query. Mr Krull a>ked for aa answer to the question which had been put earlier in the evening with reference to the probable rtsult if the resolution were not carried. lie was of opinion that the £3OOO, if it did not make the company, would materially decrease its liabilities. If the company were forced into liquidation, the result would be very disastrous to shareholders.

Mr Macdonald asked whether it was a fact that the c >mpany would be forced into liquidation if the resolution were negatived ? The Chairman said there might be some way of getting out of the difficulty which would probably ensue if the resolution were negatived, but he confes.'ed he could not see it just now. He did not say, however, that the Company would have to go into liquidation. Directors would have to seriously consider the position. Mr Macdonald said he did not believe the Back of New Zealand would be guilty of such an enormity as winding up the company if the resolution were not carried.

Mr Harcourt thought Mr Macdonald had be«.n in business long enough to know that

hank* did not carryout their hn a ine j s on timwßd urimMjpi'jH. iXe (Mr Hn-w,id) wns i:i;'.Wi. •) lIU Um r-wlnti-n v/ouM hive t« h-< !h- ■!, ir.>ir,l,l :■.■< v/.-mM b...v (■■■■"' til ' i’ li UJ[I:I ill JI-ukA*. tl) !t Ciltef *;Xtout.

A Shareholder ; WliatM the u*o oE putting your hand ni your pocket when there s nothing in U 7 A show of Eian-ls being taken, resulted in the motion bun" rejected by a large majority. A poll v/.'is demanded, aud fixed by the chair, man f*.r W.duedty between 3 and i) m the evening, at the Willis-street shop of the conn puny. Musara Stu irt ami Pox weru uppcintctl scrutineer', Thia concluded the business, and tlio moot* in./ terminated.