SOUTHLAND WOOLLEN MILLS.

Otago Witness, Issue 3808, 8 March 1927, Page 9

SOUTHLAND WOOLLEN MILLS.

PROPOSAL TO LIQUIDATE. i Air H. Halliday, one of the ’directors of Southland • Woollen Alills (Limited), has issued- a circular to shareholders in the following terms: — As a shareholder in the Southland Woollen Mills (Ltd.), you will no doubt have received a notice making a call ot 2s per share. This has been done with the object of starting operations with the capital applied for (about £73,000). Even this amount is only nominal, as there is considerable doubt as to the stability ot some of these shares, and I doubt if more than £55,000 will be fully paid up. As a director. I have opposed this step for some time, and I think it is advisable that the shareholders should know the position. I have'had a long experience of woollen manufacture, and have held a responsible position in the Roslyn Mills for a number of years, and I consider that to start a small mill with the present capital is simply courting failure. The competition to-day is so keen that a mill would have no chance except with an up-to-date plant, ample capital, and the best experts in charge of each, branch. You will quite easily realis- that a small mil) cannot afford ti pa-- for the best men unless it has ample capital and is prepared to lose money for a number ot yeais. The capital that the company has in view is not nearly sufficient to enable tie company to operate successfully, and the prospect ot additional shares being sold is hopeless, as several desperate efforts have already been made to get more shareholders Because of these reasons 'and the fact that all the woollen mills in New Zealand are having a bad time, I have considered it advisable to give notice ot motion that I intend moving at the next annual meeting that the company go into voluntary liquidation. This will mean that we abandon the project, and all moneys subscribed to the company by the shareholders, less expenses to date, will be refunded in proportion of the shares held. I am extremely sorry to have been forced to this decision of abandoning the project, but I feel quite certain that it would be better to liquidate now rather than attempt to carry on a losing fight for a number of years, and eventually find that shortage of'.capital would force us to close down