AN ILL-FATED VENTURE.

Putaruru Press, Volume VII, Issue 303, 29 August 1929, Page 5

AN ILL-FATED VENTURE.

BACON COMPANY’S LOSSES . Reimbursing' the Directors. | The serid’os position in which the guarantors of the ill-fated Bacon and Meat Packing Company found themselves as a result of the failure of the organisation was again discussed at the annual conference of group conveners of the New Zealand Cooperative Dairy Co. on Tuesday, when Mr. R. Rollett (Peria) moved

the following resolution:—“ That Mr. Hansen’s notice of motion regarding part payment to Mr. E. C. Banks (Matamata) of his losses through guaranteeing the Bacon and Meat Packing Company, be recommended for favourable consideration at the annual meeting of shareholders.”

Mr. Rollett said the facts were well-known. Mr. Banks was out of pocket to the extent of approximately £BOOO, including interest, as the result of the company’s failure. Replying to Mr. Stanley, Mr. Banks said that in 1923 he had had to give the bank a cheque for £5720. Everything he had had been taken as security and his overdraft had been increased. He had been paying 6h per cent except for one year, when he had paid 7 per cen£. The New Zealand Dairy Company had given him practically £SOO. His total loss was £BSOO or £B6OO, less £SOO and interest. ,

Mr. E. 11. Jull supported the motion.

Mr. F. C. Hansen (Waitoa) said any resolution passed would not bind absent suppliers, but would give those willing an opportunity to do so. The speaker spoke in eulogistic terms of Mr. Banks.

Several other speakers supported the motion and urged that compensation should be given as a matter of honour. The opinion was expressed that few, if any, suppliers would object to the proposed deduction of the 10s 6d from cream cheques. One supplier suggested that a similar contribution should be made on behalf of each of the other guarantors.

The motion Was declared carried, there being a fairly considerable vote in opposition.