New Zealand Greenstone, Ltd.

NZ Truth, Issue 474, 18 July 1914, Page 2

New Zealand Greenstone, Ltd.

Report and Balance-sheet .for Year ' Ending, January 1914. In a Tight Place, ' '<■ '■ . A valued correspondent who has sunk some good, hard-won cash m the above concern, has sent the annual report and balance-sheet for review. The report, if it can be any stretch of imagination be called such, reads more like the prospectus of a new company than anything else that "Cambist" can call to mind. It leads off with the expressed opinion of the chairman .. on the works and prspects of the venture. All this is based on a trip that gentleman took to the Coast some time ago. The precious "report is dated after the period" to which the accounts are made up. It appears that he was accompanied by the consulting engineer, who also furnishes a report dated April 9, or nearly a month later than the one supplied by the chairman.- The latter is optimistic; while the former is several degrees less so. The value of the 1 consulting engineer's report consists m stating some facts that should make the shareholders .wake up. He indicates that things were not so forward as he "had expected and wished." " He then whittles matters down by saying some things about bad weather, late delivery of materials from Dear Old England, "and the fact that little or no work has been done during the past three months pending authority for same from head office." The last excuse is funny enough to make, a dying man burst with laughter, "pending authority from head x>fiflce!" The question is—After reading the accounts, where on earth was the cash to pay for the work? The "bal-ance-sheet takes very good care to KEEP THIS FACT SMOTHERED UP and it leaves things m such a.muddled condition that there may be a few thousand m the bank, or there may be only a modest tenner m .the blessed' monetary institution. While the documents to hand very properly give a list of the directors' names, it does not say one word about the plutocratic concern it favors with its banking account. Perhaps the New Zealand Greenstone, Ltd., is ashamed of its bankers, or it may be the other way about Perchance the nasty exacting bank (whichever one may have this concern as a creditor) has refused an overdraft, and the mighty .company will not advertise the unobliging "nark." It must be remembered that this company is an Australian one, though it has some shareholders here. It would be well to learn if the banks on the other side, busy themselves more about their commercial honor, than do the banks here. The omission of the bankers' name is a strange'

feature m any case. The Nominal Capital is £60,000 m £1 shares. Only 52,587 shares were issued at date of the accounts, and £4046 16s was unpaid on this. The paid-up capital is, therefore, £48,---540 4s. It will be seen that the sum of over £4046 has still to come m, including the rather large item of "calls unpaid, £969 3s 6d." The calls unpaid are more than thirty per cent, of the uncalled capital. This shows that the share list has a great many weak men amongst the proprietors. Probably, they are mostly "stags," who operated for a rise, and got left. Anyhow, they should be made pay up, if possible. Such people are no good to any company. That some tip top members are m the concern is proved by the fact that there are some who have "calls paid m advance" to the extent of £283/ These are the ones! Sundry creditors .total £2549, so that the company is up to its eyes m debt. There is one thing about this entry — "etc." What does it mean? Is there something m that innocent little word that the directors wish to keep - hidden: from' the shareholders? However looked at, such a method is a rotten one for any decent company to adopt. The writer does not like "etc." It is as vague as a Wowser's definition of personal sin. Moreover it is a scandal. Turning to the Assets side, the whole set out here is just as bad as it could be. For the purpose of letting the shareholders know, how their good red gold is expended, the* whole contraption is a rank failure. The items are lumped together m groups that mostly have no manner, of relevancy. . Take this for instance, viz.-; "Plant, machinery, buildings, SUNDRY DEBTORS, GOODS FOR CONSIGNMENT, formation expenses, and CASH AT BANKERS,' AND; ON HAND, £ 8349." That is a -pretty way of doing things, to he sure. Can anyone make head or tail of it? "Cambist" .with many years' experience of these matters has no hesitation m saying that such ' account stating is a disgrace to every one who signed the balance-sheet. The sooner the New South Wales company acts are overhauled by the Labor Party over there, the' better it will be lor the investors. Such rotten methods ought to be made a criminal offence. What'ls'TOquired is just a 1 plain state-, ment of the 'items under their proper headings,' not-a group of mattei's, such as "money expended," and "money m hand- and' bank." The time for such financial foolery is past, and where it shows itself, the more suspicious should everyone become. Tho item, "Greenstone leases at cost, £ 32,000" is apparently what the vendors sold to the company for. The writer cannot say if these awfully lucky individuals got this big swag of money m cash or m snares.- In any case they appear to have ""done demnition well" out of it. Further, it looks very much as if the prefsent company paid far too much for the blessed leases, and there" is nothing to show "what these leases are costfng Ifie company for rent. It willtake a great lot of profit to recoup the company" for their expenditure.' Th& vendors did well for themselves. Theremaining entries (three) totalling £11,024 call for but slight notice. The directors and auditors prohably have '■• HAD A CUT OUT OF IT, but the' amount, is not stated. It is not. suggested- ■ that they .got more than they- were entitled to, but the accounts prevont anyone . without special information getting the smallest enlightenment 'on the subject. . The company has spent m a little over two years £51,374 so far without any sign of profit. They are at the end of their resources, and will need a further £20,000. Indeed, it appears that -they have bitten off more than they' can" "ch'bw, quite a common' experience" with "mining ventures based upon wild assertions of promoters and vendors. Its record does not inspire over sanguine hopes, even though many alluring "puffs" embellish the reports signed by tho chairman. One of which is that a profit of 2s 6d can be made on every super foot of stone sold. This seems to be about 100 per cent, net profit, ah amount so astonishing that it must strike buyers that the stuff would bo too dear to touch. Of course, the writer may be wrong here, but 100 per cent net profits make his mouth water, self-denying person that he is. It is to be hoped that, before ono penny more is npent, a thorough investigation of the prospects will be made, and that the shareholders will be furnished with a sound statement of tho finance.