GLEN AFTON COLLIERY.

Franklin Times, Volume 14, Issue 259, 31 July 1925, Page 4

GLEN AFTON COLLIERY.

(To Ibe Editor.. Sir, — Buckland suppliers were asking questions of Mr Goodfellow at their meeting on July 17, concerning the delay in getting lheir enal orders idled. 'A lien the mine was being opened up i distinctly remember Mr Sinclair' telling us that shareholders’ orders would receive a preference. Possibly he made this statement on instructions from Ihe directors. At any rale. Ills efforts lo wriggle out of it at a laler date were more ingenious id, in convincing. lam informed that Hie real cause of the trouble is a mad scramble by the Hairy Company to cater for outside trade, at the expense of the shareholders’ requirements. It

is even stated that to solve the dillicuity in connection with suppliers’ orders. they wanted to place ail order wilh the Pukemiro Company for 150 trucks of coal, to come as from Glen A Ron mine, but the Pukemiro Company re fused lo l>e a party to anything of this kind, and turned down the order. Again, if is stated that the coalmine secretary is paid a salary which many dairy farmers would be very glad to have: but in addition he is paid a commission on sales to the public: and that as Glen Afton turned out about 130.000 tons of coal last year, it would be interesting to know what this commission amounted to. If this is true. I think the directors of our company deserve a vote.of censure if they have been a parly to such an invidious arrangement which must tend to make the real mine secretary “boost” the outside trade at the expense of the shareholders’ requirements.

Again, the Mercantile Gazette of October, 1924. seems to show that the coat mine secretary has a half-inter-est, namely £3750 in shares, in a Wanganui firm, which; we are led to believe, acts as a middleman distributor to retail coal merchants for Glen Afton coal. If so. and this means a salary and two commissions, the shareholders will certainly think it a little bit too strong.

I would ask the directors, in fairness to, the shareholders, to state whether thb foregoing allegations are true, or partially so, and also to state whether a scheme is on foot in Auckland at the present moment under which the company is seeking lo raise £IOO,OOO by giving debentures on Glen Afton mine as security. A\e have capital invested in that mine to the extent of £100,000: it belongs to us, and if the, directors should attempt any scheme of this kind without our knowledge or consent, I hesitate to predict what will happen. Truly, we are a long-suffering lot! Is there another body of men who would invest £IOO,000 in a concern and yet never see a balance-sheet. Other coalmines just as successful as Glen Afton publish their annual accounts and the shareholders should rise up like one man and demand that there should be no suppression and no concealment. Are the directors afraid to publish a bal-ance-sheet and profit and loss account of the coalmine in ease the amount paid for salaries (including Mr Goodfellow’s £1000). commissions, and travelling expenses, cause unpleasant inquiries? Because I have taken up this attitude, I quite expect to be told by Air Goodfellow that I am an “adventurer,” out lo wreck the company, but the shareholders are not going to be satisfied by statements of that kind. I am loyal to the company, and I honestly believe that the only way the suppliers can be held together is for the directors to respect the implicit confidence we must necessarily place in them.—I am, etc., —

GEO. T. PARVIN Pukekolm, July 28, 1925.