Bangiora Linseed Oil Company.

Star (Christchurch), Issue 5554, 27 February 1886, Page 3

Bangiora Linseed Oil Company.

m> THE COMPANY TO BE WOUND UP. An extraordinary general meeting of shareholders in the abovenamed Company waa held at the Borough Council Chambers, Rangiora, at 7.30 o'clock last evening, for the purpose of electing an Auditor in the place of Mr M. Amy, who had been appointed Secretary to the Company. There was a fair attendance, Mr J. Johnston, Chairman of Directors, presiding. Mr T. Roaa was the only person nominated, and he waß elected on a show of hands. The meeting then terminated. At 8 p.m. a Becond extraordinary meeting was held to consider a resolution brought forward by the Directors to wind up the Company. There were twenty-four shareholders present, representing about 260 shares. Mr J. Johnston occupied the chair, and after reading the advertisement calling the meeting, said in explanation of the present position of the Company, that sinco the last report and balance-sheet were presented, the indebtedness of the Company had been increased by tho payment for labour employed in the •scutching of a quantity of the retted flax. The Directors attempted to get a market for the fibre thus prepared both in New Zealand and from Sydney buyers for Home manufactories, but failed. One offer of J823 per ton waa received, but as the oost of retting and scutching had been from £27 to £28 per ton, its acceptance was out of the. question. It being thus proved that there was no market in New Zealand to recoup the Company for the labour of scutching the fibre, the Directors had deemed it unwise to carry on further without placing the position of affairs before the shareholders. A balance-shp.et prepared by a bub-Committee of Directors showed tho assets to consist of liabilities on shares, .£BB4 Gs ; valuo of property, £ ISO ls Ud ; and plant, JE2OI 4s sd. In addition to this, there waa the stock, which was valued in the annual balance-sheet at .£430. The value of the land was set down at the primary coat, but there waa no doubt but that it would now fetch considerably more money. The liabilities were accounts due —£232 Us lOd, and Bank overdraft, .£-09 10s '.d. He thought that this statement showed the possibility of winding up without asking for any, or but very little, of the £884 ss. He waa of opinion that it was UHele.3 to carry on unless spinning plant could be procured. The Company was projected with the idea of carrying on the spinning industry, the belief being that the growers of flax would prepare the fibre for the mill, in the same manner as the farmers do at Home. However, it had beeu found necessary to use the funds of the Compauy in the purchase of stock in itß rough state, which waa never intended ; and they were now in a position to produce scutched fibre, which was quite useless unless machinery could be provided to work it up. They had ascertained tliat a spinning plant would cost frorai JELT.OO upwards. Under the circumstances, he had much pleasure in moving the resolution formulated by the Directors— " That the Rangiora Linseed Oil, Cake, and Fibre Manufacturing Company be wound np voluntarily, and that Mr D. C. M'Donald and Mr M. Amy be, and are hereby, appointed liquidators for the purpose of such winding-up." Mr D. M'intyre seconded the motion. Mr W. Ni-holla said that, having proposed the resolution at the Directors' meeting, he should like to give his reasons for doing so. They wero aware that the [Company was started) with a proposed capital of iUO.OOO in 5000 Bhares. Only loGi shares were taken up, and of theee 385 i had to f>e struck off the books, leading but 1 Xl*9. Ora Ie-eking at the name of the Corn-

» ! pany, it could be seen that it was started j with the intention of manufacturing linseed oil, cake, and fibre, but actually no • manufactures of tho kind had been, nor j with the capital at command could be, .arried out. Noting this, in conjunction . with the fact of their inability to produce ; tho fibre without loosing £7 or £8 per ton * on it, and of the ever-increasing bank overdraft, he thought it was high time to i j wind up the concern. i Mr G. Buckham had no doubt but that j ! had the shares been taken up when the | : Company was started, there would now ■ I have been a good faotory established, ' giving employment to fifty or sixty men. .. , Tho business men of Eangiora had not ! j given it the support they should have done, ' but on the contrary, a few of the principal j ones had done the concern all the harm in - f their power ; in fact it was mainly through i these that tlie non-success of the under- j taking had arisen. I Messrs J. Fulton, H. Blackett, and j TV. Sansom also spoke in favour of the j resolution. ! Mr A. Ellis said that by practical experience he had proved the linseed crop to be a paying one. La3t year he grew eight acres and a half, and after paying at the j rate of £4 per acre for harvesting, and i I carting it to the mills, it had yielded him j a handsome profit. Oa the Bame land as that used for the linseed, he had harvested j this year one of the finest crops of wheat he had ever grown on his farm ; anct he had also proved this year by ex peri orients, that the linseed thrived best on land from which a straw crop had been taken. He was quite of opinion that if a spinning mill were Btarted the farmers would both grow and ret the flax. Mr B. Evans mentioned that Mr Pawsey, of Cust, grew a plot of linseed, and the following year planted the ground with a grain crop, with the result that he collected four times as much grain from the plot on which the linseed was grown as from any other piece of land of the same 3ize in the field. Ib was suggested that Mr Johnst on'f name be added to those of the liquidators, and this being agreed to, the motion was put to the meeting and carried urianirmously. On the motion of Mr Nicholls, seconded by Mr Buckham, it was agreed that the liquidators' remuneration should be 5 per cent on the money that passes through their hands. After fixing the date for a meeting to confirm the first resolution, the meeting terminated. j