New Zealand Home Builders

NZ Truth, Issue 579, 22 July 1916, Page 4

New Zealand Home Builders

A Protest from a Shareholder' Dear "Truth," — The misdirection of "Cambist's" criticisms on this concern suggests that he has either a very superficial knowledge of affairs or is purposely withholding strictures that are due to the real offenders. Instead of "putting the acid" on to the ''softies" of shareholders, it should be made plain that they (the shareholders) have been the victims OF DOUBLJE3-DEAXJNQ. My opinion is ' that the original directors should blush with shame, and be afraid, to again lift their heads amongst their fellows. What was the position? ThS promotors, Harrison and Abbott, whilst acting on the directorate of the New Zealand Home Builders, also opened a brokerage business, which pulled m a big brokerage on all the shares sold. Not only that, but' they were within an ace of. selling the precious brokerage "bla." to the New 'Zealand Home Builders for about £8000. This act was opportunely squelched. Harrison, I understand, has cleared out, but his erstwhile colleague Is still m New Zealand," The question, that arises In the minds of the shareholders now is: Was it possible for this business to be going on without the other directors, A. Cleave, printer, and Eccles, chemist, being cognisant of it? If it was, it betokens a lamentable indifference, on their part, to the interests of the shareholders. In the circular which I enclose, you will see that the present board upon which these two men still sit, lays THE ONUS OP FAILURE on the two men previously named, but will the shareholders give credence to the story, inasmuch as the whole board, as originally constituted, m my opinion, should have known that the shareholders were being victimised? The prospectus was cunningly bated, Inasmuch as many shareholders were (as a lure to subscribe) given the dignity of a seat on the AdvisorY Board and their names were published, to lure the other fellow, and when operations were commenced m their districts, were hardly ever, if ever, consulted In anyway. A loss of twenty odd thousand pounds has occurred, because the directors permitted the shareholders' interests to become subservient to the interests of the owners and conductors of a " cleverlyarranged and stringent brokerage business," who were 1 themselves directors of the Home Builders. Why chide the unfortunate shareholders? Should "Cambist" not rather castigate the real offenders?— Yours, etc., J. T. FAWCETT. Napier. The above letter received from a shareholder^ who is exceptional m condemning "Cambist" for not "putting the acid on" the directors, has Just come to hand. When "Cambist" referred to the shareholders as "softies" he did bo m all charity, and at the same time urged them to appeal to the Supreme Court for such relief as they could obtain m that way. It is the only way to get relief. At any rate, the strictures of this writer HAVE BORNE GOOD FRUIT, and the affairs of the mismanaged Home Builders will get a further airing during the week at a meeting of "shareholders m Auckland (too late for publication) and from the appearance of things, that meeting will be memorable for Borne plain talking. If the correspondent m question had only taken the criticism printed m thiß column m July, 1914, fully to heart, he would have been saved the loss of good money. In that criticism the practices connected with the shore issue were fully dealt with) and "Cambist" spared neither the promotors, the directors, nor the Bank for its proffered connection with the concern. The point that seems to be overlooked Is rather a delicate one, viz., the position of shareholders regarding their responsibility m aiding such ventures to be floated. It must not be overlooked that a body corporate Is made up of a certain number of members, and m the case of a genuine joint stock company, it is usually found that shareholders are given sufficient rights to enable them to control, or look after, their individual interests. In this dreadful ''Yankee notion" concern, all the shareholders' rights were completely mergod In the Board of Directors. Everything possible was arranged m such a manner that the shareholders wore shut out as much as possible. There is ono thing about it that has always struck "Cambist" as a weakness m the scheme. The directors assumed full responsibility for the management. That being the case, it should be easy to put tho blame of failure on tho right shoulders — the Board of Directors. Moreover, It should be easy to get hold of the initial promotors for the same reason. ALL PAST AND PRESENT DIRECTORS are more or less concerned, either an promoters or directors. All of them are either "tools" or "workmen" employed In squeezing the shareholder*. H appears from a circular issued by Messrs. Wheeler, Clouve, Ecclea, Seager and Rosalter, present directors of the company, that they do not like the propect of liquidation. Tholr reason* aro on a par with the general weoknew of the whole concern. When one hears of a body of alleged business men bewailing because the committee who reported upon the company's affairs made no "allowance for goodwill," It strikes "Cambist" an being tho "dixxy limit." Goodwill m a thing: that wan being bled to death In the course of its promotion, Goodwill m a thing that tnado ho huge a logs as It did. Goodwill m a concern that dropped £11,000 In ona branch of ltu bu»lnoss, and was paying dividend* to Its deluded shareholder*, that It had no right to declare. When a body of men make such appeals, It Is time to ask thorn what thoy really know about "goodwill" Just at the moment there appears a vjtot amount of ''llhvlir hanging round all connected with the New Zealand Homo Builders, Ltd., that la. If any reliance can be placed upon the opinions of the Hhareholders who havo written to '•Truth" about lv affairs. Had these people listened to tho word of warning trlven two years ago, THE) "YANKEE DOODLERS" who promoted tho wretched contraption, would havo had to ruah back to the United Stutca. All that "Cambiut" eon «co about the poult lon m that titter the hungry havo boon fed, 1.c., tho liquidator*, etc.. the fragment* l«?fl mny be humbly tfiilhorcul by a chastened uud wincr body of shareholder*.