NEW ZEALAND MERCHANTS, LTD

NZ Truth, Issue 994, 13 December 1924, Page 13

NEW ZEALAND MERCHANTS, LTD

(In Liquidation.)

The Bubble Has Burst,

Shareholders Have Lost Heavily.

. When the above rotten concern was m the prospectus stage, "Cambist"' denounced it as far as the law would allow. Of course, one has to be care- j ful of libel actions m; these matters, and it is therefore a rather hard sort of business to write what one really thinks. However, this candid critic never had any time for New Zealand Merchants, Ltd., or for the matter of that, merchants unlimited. Later on, after the issue of the ti?eacly prospectus, the above joint stock adventure sent its share-selling touts > all over the Dominion to raise capital, or, m other words, sell its worthless shares. Again "Cambist," m reply to numerous correspondents, warned the public, "leave it alone," or words l o that effect. It would seem from the liquidators' statement of accounts that all the capital subscribed or paid up HAD BEEN LOST and that at date of October 20 there was a deficit of £940 to be met. This company, a correspondent informs -us. did not "allot the full amount of the authorised capital." In other words it was carrying on business on too small a paid up capital and humbug- , g-ing, investors by asking them after registration of the company to take I shares m the rotten- thing. "Cambist"' is sorry for the deluded shareholders. He did his best to put them of£ the unsound scheme. But he is glad that no more shall N.Z. Ltd, flaunt its business sign on any office front, for all such under-capitalised concerns must be regarded as dishonest if they attempt to trade on insufficient capital. A case of "trust and bust" if ever there was one.