INVESTMENT TRUST

Taranaki Daily News, 29 January 1935, Page 7

INVESTMENT TRUST

RESISTANCE OF LIQUIDATION.

DEBENTURE HOLDERS’ MEETING.

By Telegraph—Press Association. Wellington, Jan. 26.

Wellington debenture holders in the Investment Executive Trust Company met to-day to discuss their view, of the position, and after a long discussion decided to recommend that the debenture holders’ committee carry on and . resist compulsory liquidation. Steps will be taken to establish a fund to defray the expenses. Mr. L. W. Swan, secretary of the debenture holders’ committee, said there were many holders who had the impression that their shares were more or less valueless. The figures he had given to the Auckland meeting proved clearly that the view was absurd. A well-known firm of Sydney valuers had valued the trust building at Sydney at £350.000. There was no doubt that that valuation was conservative. A poll had been taken in Australia of debenture holders in the South British National Trust (a sister company to,the Investment Trust) and approximately. 60 per cent, had voted for reconstruction, notwithstanding the fact that the commissioner, Mr. Justice Haise Rogers, had given strong indications that he. preferred liquidation. Mr. Norman Levy, a member of the committee, said the committee felt the issue was overwhelmingly in favour of reconstruction. Reconstruction was not inspired by Mr. McArthur, but originated in the committee. Since August. 19 the trust’s investments had gone up increasing from £20,000 to £30,000. That increase would cover them more than pound for pound and the assets were free from all liabilities. The only persons who would benefit from liquidation were the liquidators and stockbrokers. The assets were the property of the debenture holders and they should handle them.