A HUGE DEFICIT

Hokitika Guardian, 14 February 1931, Page 5

A HUGE DEFICIT

SHIPPING LINES. OVER FIVE MILLIONS. [United Press Association—By Electric Telegraph.—Copyright.) LONDON, February 12. A crowded excited meeting of the preference shareholders of the White Star line agreed by an overwhelming majority ,p> a scheme for a six months’ moratorium proposed by the Royal Mail Steam Packet Company, which as guarantor, has been requested to pay a preference dividend due to White Stir Company. A meeting of the Royal Mail debenture holders also approved. Sir William McClintock, one'of the voting trustees, who was instructed by the Trade Facilities Act Advisory Committee to examine the position, said .the trustees estimated the White Star Company’s assets at £8.394,831, and its total liabilities to creditors at £442,nil leaving a surplus <if £3,952,320. This means that the whole of the ordinary share capital was lost, and that the surplus available, which belongs to the preference shareholders is only £3,952,320 against an issued preference capital of five millions. The total deficiency is £5,04 1 ,680, which includes t!i ( . decrease in the values of the Oceanic Steam Navigation Coy., shares of four millions, and the Aberdeen and Commonwealth steamers of £342,084, and of the Shaw Snville shares of £203,000. The trustees believed the price of seven millions which the A\ bite Star Company paid for the Oceanic share" is extravagant.