EXECUTIVE TRUST

Dominion, Volume 28, Issue 107, 30 January 1935, Page 10

EXECUTIVE TRUST

Debenture-holders’ Position REPLY TO DUNEDIN STATEMENT Mr, Norman Levy, a debenture-holder in the Investment Executive Trust of New Zealand, Ltd., made a reply to the remarks of a large debenture-holder in Dunedin, reported in "The Dominion” yesterday. "I firstly must observe that I know of no larger debenture-holder than myself domiciled in Dunedin, and recommend the large debenture-holder to show a little courage by coining out in the open and declaring his' identity.” said Mr. Levy. "I regret the decision of both Auckland and Wellington debenture-holders does not meet my southern friend's approval, but I am sure he is too broad-minded to claim that ‘the tail must wag the dog.’ I have to observe that his debentures are covered by sound, solid, and potential .Slock Exchange securities, and real estate valued in excess of 20/- in the £l,- and daily appreciating, but my co-dolieiiturc-holdei’s and myself are so disadvautageotisly placed that they cannot look with the same equanimity as ‘the large debenture-holder’ upon the spectacle of seeing their assets dissipated in the melting-pot of a statutory liquidation. “By way of simple correction I may point out to him that the inspectors were not appointed by the Public Trustee, who might be pleased to enlighten him as to (lie menace confronting one of our most potential assets, probably more familiarly known to him than us, to wit--cur interest in the Trustees and Executors Agency Co., Ltd. lias this ‘large debenture-holder’ read Professor Denham's announcement to the chemists’ conference in Hamilton on Saturday last, re the new economic kauri gum recovery and purifying process? Is he informed of the millions of pounds’ worth now awaiting recovery with heartening profit in our 27,000 acres of this gumbearing- land which cost us 3/6 per acre? Does he know of the deal which was being negotiated to purchase the assets of the Primary Producers’ Bank of Australia, which would have increased the debentuie-holders’assets by some £200.000 worth? Are not these things sworn evidence? “If he is uninformed, perhaps lie will look sideways on the special legislation which destroyed this ‘work of the builders,’ and ask Air. Coates how he proposes to make this up to us. To what sympathy does the large deben-ture-holder. allude, which is to be forfeited in resisting this proposal' of financial and economic heresy? Was the grave omission of the transfer invalidation clause of August 8 a foretaste of the sympathy yet to be dealt us? “I have elsewhere publicly acknowledged the benefits we have derived from lhe Sydney inquiry, but in doing so I did not'surrender my citizen right to determine for myself that which I consider best for myself. I advise my Dunedin friend not to await an inspector's report, which can only be, to fundamental realists, the water surrounding the ‘Gibraltar’ of our inipregnable asset value position. Rather I would advise him to sell out now, and b.v his sacrifice demonstrate his lofty motives to, bis dazed and bewildered co-innoc.ents. Remember that the sins of directors dare not be visited on the innocent investor. Twenty-six per cent, in three years and fully secured is an experience we will be happy to repeat, and long may it continue.”