DEW ZEALAND LEATHER MANUFACTURING COMPANY.

New Zealand Times, Volume XLIII, Issue 7342, 5 December 1884, Page 6

DEW ZEALAND LEATHER MANUFACTURING COMPANY.

A meeting of shareholders of the New Zealand Leather Manufacturing Company (Limited) 1 was held at the Chamber of Commerce last Friday night, * Mr Ch'arifes Johnston, M.ILR,, who was voted to the chair, explained that on the morning of the 4th Instant a peremptory demand had been received for the payment of the overdraft which the company had with the Bank of New Zelaand, accompanied by an intimationthat if the amount was not paid by 4 p.m. of that day application would be m‘ad‘e to the'Supreme Court to force the company into liquidation. The ’ directors had, therefore, deerded tb‘ sx+bmit the following resolution to the shareholders, whijsh he now moved, That it has bpen proved to their satisfaction that the company cannot, by reason of its liabilities, continue its business, and that it is advisable to wind up the same, and that it be wound up voluntarily, and that Hr - ■ ■ be appointed liquidator, ” Mr Lett suggested that the balance-sheet should be placed before the meeting. The shareholders, he pointed out, were entirely in the dark as to the real financial position of the company. • The Chairman said that was a reasonable request; &n 4 one Tyhich he had pq hesitation in acceding tv but the meeting* mast bear in mind that the balance-sheet had hot yet been audited. He then read a statement of the assets and liabilities of the po?ap»uy, shoeing a balance to profit and loss of L 6475, That amount \yas largely represented by amounts paid to the vendors, preliminary expense?, &c.qq that the total trading loss for two yeam would bo about L 2400. In answer to a question by Mr Lett, Mr Brandon, the company’s solicitor, said passing the resolution would put the company into I liquidation. If it were negatived, the com* pany would be left atthe mercy of any creditor. |

Mr Johnson said application would he made to the Supreme Court the following morning to force the company into liquidation, and the resolution was therefore on the >l-lo of economy, seeing that the interests of the shareholders would be best served by voluntary liquidation. Mr Spre.it said he had originally supported the proposal now before the meeting, but ho had since changed his opinion, and he read a telegram which ho had received from a gentleman for whom he acted as agent, protesting against the course proposed. He (Mr Sprout) had had no doubt that voluntary liquidation would be the best, but he hud since found out that the agent of the Bank of New Zealand (Mr Somerville) insisted on being the chief liquidator : and it became a question therefore, whether the shareholders would not receive greater protection from the court by compulsory liquidation. He proceeded to state that the company had been grossly mismanaged, and that jobs had been perpetrated, instancing several members who had been on the board of directors as having been concerned in these jobs. He stated that a person who had been in the employ of the company had ultimately been discharged after repeated attempts to obtain his dismissal and had_ then gone to England immediately leaving a month’s salary behind him. He did not think the bank either had been fair towards the company. He animadverted strongly upon the manner in which the balance-sheets had been submitted, and upon the action of the directors in voting themselves payment. Many mistakes had been made, too, in purchases. The object of the bank, he contended, was to force the company into liquidation and realise upon the stock as quickly as possible, because as a matter of fact they (the bank) could come on the shareholders for the amount unrealised.

Mr Johnston explained in reference to the alluded to by Mr Spreat, that the company had been bound by agreement to retain his services for twelve months seeing that he was one of the vendors.

Mr T, Iv. Macdonald said it was only fair that the past directory should be defended from the remarks of Mr Spreat pi reference to it. He did -not blame that' gentleman for tho statement he had made, because he had come on to the directory when matters were in a very bad condition, and had taken a jaundiced view of matters which perhaps any person unacquainted with business would have taken. Mr Macdonald briefly sketched the history of the company from its commencing, arguing that the first board of directors had brought to bear upon the affairs of tho compauy os large an amount of attention and time as could have been given by any directory. The reason of the non-pros-perity of the speculation, he said, was that it had started with too small an amount of capital, and he warned persons to be very careful of embarking in any company which did not propovS to call up a very large portion of its capital withm the fjrst Jew mouths *oi it* existence. In reference 'to tW‘ proposals recently made to extend the operations by joining with another enterprise, he pointed out that the shareholders alone were to blame for the non success of the negotiations then opened, seeing that thej 7 had refuse! to respond to the call made upon them. If there was any doubt as to tho honesty and work of the late directory, let the meeting appoint a committee to investigate Its conduct' while in dsco,‘ Speukjng to the motion, lie urged''that the shareholders appoint Borne’ impartial person to represent their interests. If they allowed themselves to be forced into liquidation tiie company would be in ttyo poejtiph pf a ijjan who, having filed his schedule, finds to bid horror that lie has nq voice in tire disposal of all that is dear to hii? f , Mr Brandon said that in the event of the company being forced into liquidation, the Court would certainly lean toward* the credit tors rather than the company. Ijfo had l|jat} day seen Mr Stafford, who was acting for certain creditors, and that gentleman had agreed as a compromise to two liquidators being np» pointed—one to represent tho creditors, and one to represent the company. The creditors, he might say, nominated Air Somerville as their co-liquidator. The motion was then read, the blank being filled with the name of Mr 0. P. Powlca. Mr McTavish made a* personal explanation in reference to statements made by Mr Spreat. Mr Brandon moved, as *an amendment' That Messrs Somerville and I‘owlesr be joint ’ liquidators, and that in the event of ; tho former decliningto act, Mr Bowles be sole liquidator.

It was agreed that the motion should bo divided into two, and the first portion was put and carried as follows That it has been proved to their satisfaction that the company cannot, by reason of its liabilities, continue its business, and that it is advisable to wind un the saifie, "and' that it bo’ wound 1 up’ voluntarily.” '‘ ’ '' V '■ ' On the motion that the remainder of the resolution ” That Mr Towles bo appointed liquidator,"

Mr Bllison moved that Mr J. H. Guilford bo appointed co-liquidator in place of Mr Bowles. Mr I). T. Stuart was also proposed by Mr Clark.

Mr IVarburf.on suggested that the shareholders should jointly guarantee the amount owed by the company. He felt sure that if this were done the bank would meet them with open arms, . ,

Mr Clark pointed out that they had already lost a large amountin trading, and it was iiiipossible to say whit further loss they might sustain if they carried on business.

The Chairman pointed out that they had not made ah actual trading loss of J.COOO, a large proportion of that amount having gone for preliminary fexbenßei.’sdph goodwill; &c,, so that the actital trading loss Was' about L24QO 11 ■ *' ■ -

.Mr Mowbray, as one of the vendors, desired to say that he had received no money froiq the company as for goodwill, and of his two years’ salary at L 250 per annuiq, lie hid spent LIOO in a shipment t<j' England. " ' A show of hands taken 'in connection with the election of a co-liquidator with Mr Somerville, resulted iq favor of Mr Guilford. A poll was demanded on behalf of Mr Stuart, and was fixed for Monday next, between the hmq's of 4 and 6 in the afternoon. The mepting then tonn(nate4 with a voto of thanks to the phaif.