Loan and Mercantile Company

Feilding Star, Volume XV, Issue 211, 11 January 1894, Page 2

Loan and Mercantile Company

LATER PARTICULARS OF THE MEETING. [Per Press Association.] London, January 9. At the Loan and Mercantile meeting Mr Stewart, the Official Receiver, alluded at length to the various issues of debentures. He stated that Mr Paul had failed to satisfactorily explain his letter to the holders of terminable debentures, who asked what their position would be when the debentures were issued in 1892. He ought to have told them they would have no security. The Directors were also responsible in this matter. The creditors ought to hear Mr Paul's reasons for not explaining the position thoroughly. Mr Browne said the trust deed executed in 1892 was pernicious nonsense. He believed the Directors had made a terrible and unfortunate mistake ; they ought to h;ive had more regard for the interests of the creditors, but in his opinion the creditors had no claim against the Directors. Sir James Fergusson objected to Mr Browne's strictures on the trust deeds, which had been drawn by most eminent counsel. The reconstruction scheme, he said, would give the creditors security of mortgage, with live per cent, interest. Several shareholders asked the Receiver to publicly examine the directors and shareholders. The meeting was a quiet one except for tho attack on Mr Mundella, for selling shares. Sir James Fergusson and Mr George Russell justified his action.