SENSATION IN LONDON

Otago Daily Times, Issue 20905, 20 December 1929, Page 11

SENSATION IN LONDON

PROBABLE COMPANY CRASH.

HUGE INDEBTEDNESS ALLEGED,

(United Press Association.) (By Electric Telegraph—Copjright.) LONDON, December 19. (Received Dec. 19, at 11 p.m.) . Still another city sensation of the first magnitude has arisen, says the Daily Mail, and this time it concerns the Inveresk Paper Company, a big group of allied companies including the Daily Chronicle Investment Corporation and the United Newspapers and Provincial Newspapers, which were built up by the financier, Mr William Harrison. The Inveresk shares slumped heavily recently and while to-day ordinaries recovered 2s 6d to 13s 9d, they once changed hands during the year at 67s 6d. The Inveresk Board announces that although the estimated results have not been realised the constituent companies’ profits continue to be satisfactory. Nevertheless the stringent market conditions preclude the raising of further capital and it was essential to retain the cash resources, and accordingly it was postponing the payment of dividends on the first and second preferences for the half-year ended December 31, and the fullest information would be submitted to the shareholders in the New Year.

A committee of the first cumulative preference holders has issued a circular alleging that the indebtedness of the Inveresk Company and certain subsidies to bankers exceeds £2,500,000. In the meantime Mr Harrison has resigned, the chairmanship of the various boards and B. H. Binder, a chartered accountant, becomes temporary chairman. Harrison, who is a solicitor, took newepaperland by surprise a few years ago by turning his attention to the paper-making industry. Thereafter he negotiated a succession of newspaper deals in London and the provinces, many of these publications earning big profits.