WESTPORT COAL CO.

Waipukurau Press, Volume XXVIII, Issue 128, 25 May 1932, Page 5

WESTPORT COAL CO.

REPAYS HALF CAPITAL £225,000 RETURNS TO SHAREHOLDERS By Telegraph—Copyright—Press Assn. DUNEDIN, Last Night. In the Supreme Court to-day Mr Justice Kennedy made an order approving of the resolution of the shareholders of the Westport Coal Company to reduce the capital of the company from. £500,000 to £250,000. This reducton is to be effected by returning to the shareholders the equivalent of 10s per share upon 450,000 shares issued, that is by returning to the shareholders a total sum of £225,000. This sum is to be made available by transferring to the shareholders N.Z. Government inscribed stock maturing on December 15, 1938, and carrying interest at 4-1 per cent, free of income tax, and by the payment of sums of less than £lO in cash.

Owing to the extensive and increasing use of oil fuel, the development of hydro-electric power and reduced trade the output of coal has been reduced from 639,000 tons in 1913 to 240,000 tons in 1931. In these circumstances the capital is not now required for development of new areas and as the capital is in excess of requirements it is proposed to reduce it by 10s per share, such 10s to be paid from the sinking fund specially created by the company in 1904 for the purpose. The company has undertaken to deposit £lO,OOO in the Bank of New Zealand as security for the payment of claims of unpaid creditors. rs