SOUTHLAND WOOLLEN MILLS LIQUIDATION.

Otago Daily Times, Issue 21103, 13 August 1930, Page 6

SOUTHLAND WOOLLEN MILLS LIQUIDATION.

TO TEE EDITOB. Sib, —Your footnote to my letter has prompted me to look more closely into the affairs of the Southland Woollen Mills. In round figures there were 70,000 shares sold and called to X2s each, making available £42,000. On the last call of -2s I understand a good deal remained unpaid. Allowing for this and for preliminary expenses and Brokerage less a considerable sum earned for interest, there should be available for the liquidator, the assignee at Invercargill, approximately £36,000. The order for winding up the company was made over 18 months ago, and the claims made against the company were settled very nearly a year ago. The reason given in your footnote that it was on account of expense that two distributions were not made is contrary, to what was stated to isome of the late directors. In any case, what would the extra exEense be? There are about 1100 shareelders, and surely they are entitled to a progress payment ns funds are available, which they were from the day the liquidator took charge. The money is worth more to the shareholders than the low rate of interest earned on short dej posit. My reference to legal fees included the costs of all the litigation, it has not taken 25 per cent, of the capital so much the'better for the shareholders and so much more money the liquidator is holding. If the liquidator’s solicitors are getting about £SOO since the winding up was ordered they are doing quite-well out of it, especially as I understand they are the same solicitors who _ appeared for the petitioners for the winding up._ However, can and will the liquidator give any solid reason why a distribution > was not made months ago, and also why it should be necessary to wait three months from July 2? It is admitted that no interest is being earned on any part, and three months at 6 per cent., which it is worth and more to most of the shareholders, is £450. I again protest against the unwarranted delay.—T am, etc.. Shareholder.