VENTURE THAT FAILED.

Timaru Herald, Volume CXXV, Issue 18540, 10 April 1930, Page 9

VENTURE THAT FAILED.

PETITION FOR WINDING UP. Br T.lpgrauli —Free, i.soci.tron. WELLINGTON, April 9. A petition for the compulsory wind-ing-up of the National Portland Cement Company, Ltd., came before the Chief Justice in the Supreme Court to-day. The petitioner, James Costello, of Westport, who held 200 contributory shares, said his counsel and he also claimed to represent 4185 other contributory shares. The company was incorporated in 1924 with a nominal capital of £300,000, which was subsequently increased to £350,000. Actually 27,950 corjtributory shares had been issued, and there were also 25,000 fully paid shares issued. It would be seen from the figures that in the five and a half years which had elapsed since the company was incorporated the total amount received from shareholders on account of calls was £9IBB His Honour observed that three points which struck ..him were: (1) Delay in commencing' operations- (2) every sixpence received from shareholders had been spent, and there was nothing to show for the expenditure; and (3) the company was a making company to make something Counsel said it appeared that to get £Booo°°° theie had been SPCnt rou ® hl y Counsel for the company said there was no suggestion of misconduct in the operations of the company. The result was much to be regretted, but unfortunately it cost as much to try to sell shares as actually to sell them Of the money spent, £3048 represented money spent in acquiring property. Owing to financial depression the company had not been able to get capital to start operations. His Honour: “Are you justified in saymg that? For quite a long time there was any quantity of money available for investment. I am not speaking of the last eight or ten months, but prior to that money was lying idle and could not be invested. It may be! of course, that people thought the coim pany had no chance against -well-es-tablished concerns which were stronp-lv entrenched." His Honour said that it was admitted very properly that the directors had acted in a fail- and frank manner. Decision was reserved.