HUGE LIABILITIES.

Dominion, Volume 3, Issue 705, 3 January 1910, Page 5

HUGE LIABILITIES.

.v ; A MILLION AND A HALF. : By Teleitraph—PresyAßSociatiOn4bopirrißht ! .- : , (Reo. January 2, 5,5 p.m.) ■ ' London, January 1. , The liabilities of tho Law Guarantee Trust, and Accident ■ Society, -total jei,soo,coo. , . ; - A further, call- of .£1 per share is expected to be made. I v. .

THE SOCIETY'S POSITION. - The Law Guarantee, Trust, and Accident- Society, Limited; decided to go into I Voluntary: litjuidatiimbeoause' the society has suffered- sensational losses : through '-breweries ; ahd_ 'hotels, and; particularly .in connection with ■an .unsound' system ofguaranteeing mortgages': and', .debentures . Mr; Harris,' chairman of directors, 1 esti■•that/ properties . Originally /.w0rth.£4)912,516, are. now worth ,£1,705,173. , The accounts show that the capital i 3 lost, and ' thai' therO/ is a further deficiency of _ .£200,000. Some - of- tho .shareholders paid -405.!-a share- ill "order 'to; dscapo .tlieil. unpaid' liability. Tho majority-of share-' |! holders . • are- : barristers,'; solicitors)- ' and ; their clerks.. i 1 The sooiety haS, a, paid*up- capital of .{1450,000, of ivhich <£200,000. is in ordini.ary: sbareß ;iand'.-^250,000,:in,-fuily-paid-pieferonce shares..' Tho ordinary shares 1 • ■ up to viSl. . each;with a further liability of. of- which X 5 is a liability.' : The 'per . cent, -first- mor't- 1 , gago',. debenture _ stock, of which tho amount outstanding; at: the beginning of this.-: year was .£30?,574 (excluding iIO.OOO j issued; :as •:collateral .securily),:- is;,seeUred i by'--trust, deeds - as : ,h:-spedifib--. charge on the .uncalled capital :and a floatingcharge on all the remaining assets (ex- 1 eluding - reserved, capital).' :• : ' ■; Recently, a' letter published in: one of-1 •the London dailies,, from Mr.' Si S. Seal, bt.,,7-Sefjeants Inn, said that there was a; i growing feelingamohgst; .the'. share- I that,;;before. thby' were/asked' for] the second call .of £2. per Share, which became .payable: on August :iß,' they..should' have 'some,-jnfottriationfiis to the position. '. Hitherto the directors .had -told then)nothingTon;'which '(as -recent, events show) 'Ithey ;ought;'to, 'have relied;' fWlien' they:,issued their circular,-; announcing ; the- calls,tho' reason | they' gave was' the; failure -to. get'. thsiVdebehtUre -'stock - sub- i :'Edribe.d,Y;bnt.;,as - - only of that :rt^yjrii^rfiitedirforS'snp^pjh6n 4 :ai;.'t!i« .time;, of.'.'jthe l ." llstif'gdneral-- ; .therefore, strange':: that,.: not; ceiving the .£200,600, they felt that they, must.,make-,calls' amounting .to -'£800,000."