HIGH FINANCE.

Star (Christchurch), Issue 17159, 1 October 1923, Page 1

HIGH FINANCE.

INSURANCE COMPANY’S AFFAIRS.

PROSECUTION OF BOARD RECOMMENDED.

By. Telegraph—Press Association—Copyright Australian and N.Z. Cable Association. (Received October 1, 10.40 a.m.) LONDON, September 30.

At a meeting; of creditors and shareholders of the City Life Insurance Company, the Official Receiver made remarkable revelations.

He stated that the unsecured creditors represented £1,374,000 and there would be at least a million deficiency. In 1912, there was a surplus of £47,472 and the next five-yearly valuation revealed a deficiency of £158,000. The directors arranged for the new managing director, Aldridge, and a man named Redgrave to raise £160,000. The company, however, received nothing, the money* with another £160,000. being handed to another company in which Aldridge was interested. Norman, the company’s agent received £16,000 for introducing Aldpdge and Redgrave. Aldridge’s salary was £2200 and 2* per cent commission, yet the company loaned him xSJ’SSS’ was later increased to £02,000, the company eventually losing £IO,OOO over the debt. When the managing-directorship terminated, Aldridge received £3750 compensation and later was lent £IOOO to save him fro m bankruptcy.

Several shareholders demanded that tne late board should be prosecuted.