A COSTLY GUARANTEE

Dominion, Volume 20, Issue 50, 23 November 1926, Page 12

A COSTLY GUARANTEE

ATTEMPT TO RELIEVE DIRECTORS OF BURDEN

Dominion Special.

Auckland, November 22.

Definite steps are being taken to reimburse the three Auckland guarantors of the New Zealand Co-operative Meat Packing and Bacon Company for losses they incurred as the result of that company going into liquidation. A committee has been formed to raise £21,000 and whatever sum is raised after deducting small expenses will be divided equally between the three late directors representing the Auckland province, Messrs. Joseph Barugh (Hamilton), E. C. Banis (Matamata), and James Paterson (Ngaruawahia) (deceased) . The official announcement of the committee’s efforts explains that these three gentlemen were guaranteeing the overdraft of the New Zealand Co-opera-tive Meat Packing and Bacon Company, Limited, to the extent ot £50,000 at the time that the Bank of New Zealand took over the company. The three Waikato directors, along with the remaining directors of the company were at that time guaranteeing the account purely in the interests of the farming community, and not for any gain which they themselves might deserve. The blow’has been a very heavy one to the three Auckland directors, and it is imperative suppliers of co-operative companies stand behind them and relieve them of their burden. The Tara Aut Dairy Company have given the lead bv making a levy of jd. per lb. on butter fat and have paid off the liabilities bv their directors The appeal to the Waikato is purely a voluntary one, and it is to be hoped the response will be worthy of the district.