POVERTY BAY MEAT CO.

New Zealand Times, Volume L, Issue 11657, 23 October 1923, Page 5

POVERTY BAY MEAT CO.

INDEBTEDNESS TO BANK

CHAIRMAN EXPLAINS THE FINANCIAL POSITION.

HOW REDUCTION WAS MADE. Per Press Association. GISBORNE, October 22. Representations having been, made to the chairman of the Poverty Bay Farmers’ Meat Company that a false impression may be created by the publication of the fact that the company’s indebtedness to the National Bank had been reduced iby £47,062 between February 13th and August 31st last. Mr D H. Lynsar says it is only fair to state that the reduction included £36.SlO cash received in calls, and _ the amount thus received correspondingly reduced the bank’s against .the uncalled capital. In addition the bank held on August 31st bills totalling £15,230, of which £13,502 had been taken by the bank frora shareholders who could not provide the cash for calls due. The amount of calls represented by bills treated in the company’s balancesheet on August 31st lsst as paid up capita! and the ainouni transferred to bills receivable. Subsequently the bank discounted £13,500 of these bills This after allowing half a-year’s interest this reduced the amount owing to the bank on September 30th to £299,768, compared with £350,388 on February iSth last. DECREASED SECURITY.

But this entailed a corresponding further decrease in the bank’s security of £13,500, ninking the total reduction £50,310 in the Bank’s security over the uncalled capital against a reduction of £60,600 in overdraft.