THE RECKONING-UP

Dominion, Volume 8, Issue 2426, 3 April 1915, Page 8

THE RECKONING-UP

ANNUAL MEETING OF HERMANN'S

LATE COMPANY

BOWRON BROS' SHAREHOLDERS HEAR DISCLOSURES

EXTRAORDINARY TRAFFIC IN SCRIP

(By Telegraph—Press Assn.—Copyright.)

(Bee. April 1, 9.10 p.m.)

Sydney, April 1. At the annual meetiug of Bowron Brothers' JSxport Trading Company, Ltd., Mr. Alexander Jobson, director, presiding, explained that lie was now the only local director of the company. Hermann's place as chairman of directors had not been filled, and Mr. I<'. \V. Bacon, another director, had resigned.

Air. Johson was re-elected a director. Ho stated that lio deiired to obtain an expression of opinion on the question of instituting criminal proceedings against J. Earle Hermann respecting allegedly frawdulent dealings in the company's shares. Ho outlined the steps be had taken to secure Hermann's resignation from the chairmanship of tho Board of .Directors. Hermann virtually admitted that there had beeu irregularities; affecting only about 25,000 shares, but subsequently produced fraudulent scrip and transfers representing 135,000 shares, which were destroyed, and admitted that there were still about 20,000 shares outstanding. All the scrip was then called in, and as the result tfie' total number of bogus shares rose to over 133,000, making, with the 35,000 redeemed by Hermann, a total of over 108,000. Herman admitted issuing the sorip, but pleaded that he was not in a proper state of mind when he did so. The shares, however, were issued at various periods, dating from May, 1912, to Mar,ch, 1914. In one caso the share certificates were simply torn out of a book, with tho butts not tilled in, and the scrip had been signed, not at a board meeting, but at any old lime. In some cases the 6crip was not sealed with the seal of tho company, and in others one or more of the signatures wero forged. Many, however,, appeared to be legal cortiiicatos.

He (Mr. Jobson) obtained distinguished counsel's opinion on this side, and they held the opinion that perhaps half the fraudulent scrip certificates, representing 60,000 shares, would be held good as against the company, and it was likely that many holders of the other half would light. Ho took it that a new company would emerge out of the old one. Business was undoubtedly good, and the trading figures were big. It would be a very great pity if the business should be sacrificed.

After considerable discussion the meeting decided that the directors 6houl bo asked to prosecute Hermann, if. his appeal from recent sentence proved successful, and also favoured general suggestions by. the New Zealand Board as regards a clean up of the irregular shares, and promised support of any reasonable 6oheme of readjustment.

• NEW NAME ADVISED. (Rec. April 3, 0.25-.a.m.) Sydney, April 2. At the meeting of Bowron Bros.' shareholders Air. _ Tilley, representing 20,000 shares, said, that no doubt a great deal of trouble had occurred through want of care on tho part of tho directors. It might be advisable, in the event of reconstruction, to alter the name of the company altogether. If they were not prepared to subscribe more capital, liquidation would follow and New Zealand people knowing the value of the business would buy in.