POETIC JUSTICE

Waikato Times, Volume 117, Issue 19545, 6 April 1935, Page 10

POETIC JUSTICE

CRISIS OVER PEPPER. FIRM'S HUGE COMMITMENTS. EVIDENCE ©Y A RECEIVER.' United Press Assn.—Elec. Tel. Copyright LONDON, April 4. “filhere is an element of ,-poetio justice that tragedy should have overtaken Mincing 'Lane as a result of the suggestion made by a broker to a gambler at a luncheon 'that a profit could be made from pepper," said Mr E. T. Phillips, senior official receiver, at a meeting of creditors of James and Shakespeare. Mr. Phillips said the firm’s liabilities were £'7-55,520, and assets £'2,35,842. The crisis originated from a suggestion to purchase 3000 tons of pepper and secure control of the market, enabling a 'profit, before the next crop. Eventually, through the Williams and Henry Company, 11,640 tons of ipepper were contracted for at £1,055,000, which was not referred to when 'the prospectus was issued in September. The responsibility for the misleading nature of the .prospectus was being seriously -considered, he added. Eventually, owing the difficulties of the Williams and Henry Company, the pepper contracts reverted . to James. and Shakespeare, which, despite the serious position, contirmed to make purchases. until it for approximately 12,000 tons at a price of £1,600,000; on which it lost £693,00-0. Such criminal rashness in- entering on commitments was less extraordinary than the broker’s folly in giving unlimited credit. : '

The receiver adds: "The evidence does not confirm the reports that Mr Reginald McKenna, banker, and Sir Hugh Cunliffe-Owen, M.P., were Interested in pepper.”