ASSURANCE GIVEN

Evening Post, Volume CXXVI, Issue 84, 6 October 1938, Page 7

ASSURANCE GIVEN

WHAKATANE PAPER MILLS

COMPANY'S MIND RELIEVED

(By Telegraph—Press Association.)

WHAKATANE, October 5.

Commenting upon remarks made by the Hon. P. Fraser in Dunedin last night, Mr. H. A. Horrocks, managing director of the Whakatane Paper Mills, emphatically denied that there had been any attempt on the part of the company to force the Government into giving financial assistance. Furthermore, at no time had there been any stoppage of work at the mill. Although 200 men were paid off last j May following the completion of the main building, the company since that [date and until yesterday had afforded 1 continuous employment to 156 men and at present has 85 ijien engaged at the works. The retention of these men was decided upon at the urgent request of Mr. A. G. Hultquist, member of Parliament for the district, who was fully aware of the necessity for the company conserving expenditure at this juncture and had done his utmost to secure assistance to enable the company to accelerate the completion of the works. "We have this morning received a satisfactory assurance from the Government that it has no intention of taking over the mills," continued Mr. Horrocks. "Rumours in this connection caused the company and the Government much embarrassment. Financial assistance from the Government is not forthcoming. Now that shareholders know the Government's attitude, doubtless they can be relied upon to accord the company full support"