THE HOOLEY SCHEME

West Coast Times, Issue 10537, 22 July 1897, Page 4

THE HOOLEY SCHEME

The following is the substance of the letter received Messrs Norton, Smith, and Co., solicitors, Sydney, under date the 21st May, from Messrs Ashwell and Tutin, solicitors to Mr E. T. Hooley, concerning the scheme for the amalgamation of the Australasian meat companies ; — Mr Hooley's attention to tha frozen meat question was called by the conclusions arrived at by the conference which met Mr Twopeny during the early part of the year, and decided in favour of a judicious regulation of the supply sent to the British market. It appeared that unusually large numbers of frozen carcases and quarters of beef were shipped from Australia and New Zealand to England, the imports of sheep and lamb for 1896 amounting to close upon 4,0C0,000 carcases, besides 25,000 tons of beef. The sheep were sold a: prices varying from say 2d to 3_d per lb, lambs of course,making a higher average. Why, it is asked, should not a combination of growers and impoitera raise the price Id, or even more, per lb ? An additional Id per lb on the sheep and lambs would i mean something approaching 4s per carcase (an increase in price that should not affect the sale of the meat), which, distributed amongst the growers and shippers, would represent a sum of over three-quarters of a million sterling. • Mr Hooley was willing to form with those interested in the trade a combination upon certain lines described in the letter as follows :—: — " The proposal we have to make on Mr Hooley's behalf is that, provided a sufficient number of refrigerating companies can be purchased bjr him, they be amalgamated into one combination with a larger capital than the amount of the aggregate value of the separate concerns, " The old companies to be purchased as goiDg concerns as from the date of the last balance-sheets submitted to the shareholders, upon the following terms:— X. The purchase price to be an amount equal to the net assets as set out in the last- balance-sheet, together with — 2. A bonus equal to the aggregate amount of dividends paid during the last seven years, or pro rata as for seven years when the company has net been established so long." Here then follow the business details about stock, &c, which were contained in cable advices of 21st June, after which the solicitors proceed—" The new company would administered from London by a board of governing directors, twothirds of the original board being selected from a list of nominees supplied by the old companies. Provision will be made in the articles of, association of the new company jfor the appointment'of local directorates, so that the past administration of each particular company need not be disturbed. '• You will readily understand that no counter-proposal can be considered here, and cables sent to us should — us provided by the code words enclosed-3tate directly, in the affirmative or in the negative, whether the directors of the particular company referred to have adopted the accompanying resolution, giving to Mr Hooley the required option of purchase of their company (subject to confirmation by the shareholders in general meeting) aud recommending that such option be approved and confirmed by the shareholders. "If there is any exceptional circumstance in respect of, say, one of the- companies, which you can deal with without disturbing the basis of the scheme, you may deal with it yourselves, always bearing in 1 mind that any substantial divergence would probably prejudice the whole undertaking.

If the first cables received from the several colonies giving the decisions of the directors justify Mr Hooley in proceeding with the amalgamation, we shall cable you to arrange for the necessary meetings of shareholders, to be held as soon as the statutory notices will permit, after which you will please cable us the decisions of the shareholders' meetings. By the time the shareholders' meetings are held we hope to have received from you in respect of each company : Copy of resolution of directors ; pro forma account of sale, on one of the printed forms enclosed herewith ; prints of the last and previous balance sheets ; names of three gentlemen for selection as members of the governing board ; and general information for prospectus purposes. If there be a genuine desire on the part of the companiea to amalgamate, it is probabla that the new company will be formed immediately we receive cables notifying the approval of the shareholders of a sufficient number of companies, and bef ore we receive the letters containing the resolutions adopted by the shareMerg, If th? fetors of, uuy o£ th<? ,

companies giving the opinions, or their nominees, would like to participate with Mr Hooley in the promotion of the new company, they may do so up to an amount not exceeding the amount of the share capital due to their particular company. Those so participating must undertake that if the whole of the capital of the new company be not taken up by the public they will subscribe or obtain subscriptions for their proportions of such unsubscribed capital to the extent of their respective risks."