CITY FINANCE SENSATION

Taranaki Daily News, 20 December 1929, Page 11

CITY FINANCE SENSATION

ENGLISH PAPER COMBINE

SLUMP OF INVERESK SHARES £2.500.000 DEBT ALLEGED < ' _ ... • By Telegraph—Press Assn.—-Copyright Rec. 9.40 p.m. London, Dec. 19. '. Still another, city sensation of the first magnitude has arisen, says the Daily Mail. This time it concerns the Inveresk Paper Company, a big group of allied companies including. the Daily Chronicle Investment Corporation, United Newspapers and Provincial Newspapers, which were- built np by the financier William Harrison. ■

InveresE? shares slumped heavily recently, while to-day ordinaries recovered ‘half a crown to 13s 9d. They once changed hands during the year at 67s 6d. ■ .. — ; The Inveresk Board announces that' although the estimated results have not bedn realised the constituent companies’ profits . .continue to be satisfactory. Nevertheless stringent, market conditions preclude the raising of further capital and as it is essential to retain casir resources the board is postponing dividends on first and second preferences for the half year ending December 31. The fullest information is to be submitted to shareholders in the new year. .

A committee of first cumulative preference holders has issued a circular alleging the indebtedness of Inveresk and certain .subsidiary companies to the bankers exceeds £2,500,000. In the meantime Mr. William Harrison has resigned the chairmanship of the various boards and Mr. B. H. Binder, chartered accountant, will become temporary chairman. ... •

. Mr. Harrison,, who is a solicitor, took newspapcrland by surprise a few 'years ago by turning his attention to the paper-making industry. Thereafter he negotiated a succession or newspaper deals in London and ’ the provinces. Many of these publications are earning big profits. ■ .