A CROWDED MEETING

Wanganui Chronicle, Volume LXXXIII, Issue 19504, 4 February 1926, Page 8

A CROWDED MEETING

DEMISE OF OLD-ESTABLISHED CONCERN SHAREHOLDERS ATTEND IN FORCE SOME POINTED CRITICISM By the decision, which was accepted philosophically, one of Wanganui’s oldest established industrial concerns surrenders to the inexorable forces that have reduced it to commercial penury. The interest that the old-established concern’s difficulties has created was strikingly manifested at the crowded meeting of shareholders, some of a horn bought their holdings only last year, and arc liable to be called upon for unpaid capital amounting to £53,009, and are naturally not pleased with the situation. One shareholder stated yesterday that the trouble with the company was that “it had been an old men’s home for thirty years.” Terms of the Deal Yesterday's epoch-marking deal was completed in the terms of an agreement which was read to the meeting. This stated that the price for the purchase of the Castlecliff works is £40,000 cash, and 36,310 £1 shares in the Refrigerating Company. In the agreement the details were set out as under: Purchase of freehold and leasehold lands.—£2B,ooo. Machinery and plant.—£l2,ooo. Goodwill of .shareholders. —£36,310. T0ta1.—£76,310. A point elucidated at the meeting was that the present market price of Ihe £1 shares in the Refrigerating Company is 18s. The agreement further stated that £40,000 cash was to be applied to the discharge of the debenture liability to the C. and D. line (mortgagees over the works property) and to the procuring of tiie release of the securities held by that company; and to the reduction of the Wanganui Company’s indebtedness to the Bank of New Zealand. The shares in the New Zealand Refrigerating Company, it was stipulated, are to be deposited in the bank as security for the company’s indebtedness thereto. In future discharge of its liability to the bank the company must make such calls, on uncalled capital, as are requested by the bank, but when scfficient uncalled capital tn liquidate the company’s liability to the hank has been received by it, the hank shall hand over the 36,310 £1 paid shares in the New Zealand Refrigerating Company. Each share will replace a£s share in the Wanganui concern. Boardroom Crowded Among those present were several ladies, many Wanganui business men, and scores of farmers, while the legal profession was strongly represented. The Jockey Club’s room was not large enough to accommodate the crowd, and interested shareholders not only overflowed into the adjacent hallway, but also occupied window sills, standing room, and improvised seating facilities within the boardroom itself. Mr Ewen Campbell, chairman of directors, presided, and with him at the official table were Messrs C. L. Duigan, R. E. Beckett, W. Morrison, J. B. Murray, F. Moffatt, W. G. de Gruichy (C. and D. line), H. G. Warren (Nelson Brothers, Hawke's Bay), directors and Mr W. J. Treadwell, the company’s solicitor. Chairman’s Unpleasant Duty The chairman, Mr Ewen Campbell, in referring to the company’s unfortunate position, said it was his unpleasant duty to preside over the shareholders for perhaps the last time. No doubt the shareholders would attribute the blame for the company’s position ’ to the directors and they perhaps must • shoulder some of it; but when the I statement of the directors had been j put before them the shareholders would see that the directors were not entirely to blame. Much complaint and criticism had been levelled at the directors, particularly concerning the new shares. He himself, however, was one of those who had taken up new shares. He, like others, would lose his money. The meeting, went on Mr Campbell, was for the purpose of ratifying or otherwise an agreement with the Now ! Zealand Refrigerating Company for the sale and purchase of the works. The directors had entered into the negotiations with every possible care for the shareholders’ interests under the unfortunate circumstances and the result was the sale agreement which was then read out to the meeting by the company’s secretary, Mr A. O. Hardy. After the terms of sale had been read Mr Campbell moved the following motion:— “That the Wanganui Meat Freezing Company approve of and ratify the option for the purchase of the works, land property, assets of the vendor company, with j certain stipulated exceptions, by the New Zealand Refrigerating Company, at a cash price of £40,000. plus 36,310 £1 paid shares in the Refrigerating Camjaany.”