Wanganui Woollen Mills

Hokitika Guardian, 9 August 1922, Page 4

Wanganui Woollen Mills

REPLY OF CHAIRMAN

WANGANUI August 0. Interviewed to-day concerning Mr Doherty’s advocacy of liquidation ol ! the Wanganui Woollen Mills Company,

is published in a Press Association telegram from Wellington, the chairman of directors of the company (Mr W. J. Poison), expressed utter astonishment at Mr Puberty’s attitude, which, he sale, was directly opposed to the view of his fellow-directors. In view of the fact that the company had a subscribed capital of practically £20.000, and that a very considerable sum had been spent in the initial undertakings, Mr Puberty’; statement was all the more amazing. “It is true,” said Mr I’olson. “that the directors paid herty a sum of money to report on English woollen mills during his tour of the Old Country with the New Zealand howlers. On the strength of investigations made during the tour, Mr Puberty became an enthusiastic advocate of going on with the erection of mills. He strongly recommended this course i n correspondence and at the direetoi s table after his return. The directors hold several letters from him, dated as late as April last, urging the company not to delay any further, iMr Doherty also endeavoured to buy out another director who prior to the presentation of Mr Doherty’s report, was not in favour of going on, and to have Mr Hugh Viekennan (whom he now nominates in favour of liquidation) appointed in the place of this director, on the distinct understanding that his nominee would favour going on.” “I would point out.” Mr Poison continued. “that on precisely the same facts on which lie solight to have Mr Viekennan appointed for the ex pi ess purpose of ‘going oil,’ Mr Doherty now nominates Mr Viekennan as a gentleman prepared to assist him in stopping the company from going on, after returning to the Dominion and urging the directors to push o.’i with the erection <

mills and purchase machinery. Mr j Doherty further urged that- in vi.tv of the information he had gained on Ins visit Home, he should he appointed managing director, offering to take shares as remuneration. Mr Doherty also nominated'as manager a gentleman he met at Home. The directors did not soe fit to appoint Air Doherty as managing director, or his nominee, as manager and decided to delay proceedings until there was a further drop in the price of machinery. The directors were guided in This by the advice o'f the proprietor of large and important Scottish woollen mills, who during the war was in charge of the woollen trade of Great Britain and who is a largo ana enthusiastic shareholder in the Wanganui Woollen Mills Comiinny. And now suddenly Mr Doherty seeks to bring about liquidation for the alleged reason that his investigations in the Old Country satisfied him that the company cannot succeed, although it was actually as the result of those l investigations that lie strongly recommended going on and endeavoured to replace the* one director whom lie thought was not in favour of going on, and sought to have himself appointed managing director for the avowed purpose of expediting th ( > progress of that policy.”