GUARANTORS’ LOSSES

Sun (Auckland), Volume II, Issue 440, 23 August 1928, Page 13

GUARANTORS’ LOSSES

BACON COMPANY’S FAILURE PROPOSED REIMBURSEMENT (From Our Own Correspondent) HAMILTON, Wednesday. A referendum of shareholders of the New Zealand Co-operative Hairy Co., Ltd., is to be taken upon the proposal to reimburse the Waikato guarantors of the New Zealand Co-operative Packing' and Bacon Company, Limited (in liquidation), Messrs. J. Barugh and E. C. Banks, and the estate of the late Mr. T. Patterson, who originally lost £25,000 through the bank calling up their guarantee after the company had failed. The proposal was discussed at length at the annual meeting of the dairy company, to-day. Mr. S. H. Judd (Horahora), moved that, for the purpose of reimbursing the guarantors of the New Zealand Bacon and Meat Packing Company, the sum of £4,162 be set aside for the next three years from the profits derived from the sales of coal to outsiders by the Glenafton collieries. Mr. Judd said this sum would amount to approximately half of the guarantors’ losses, principal and interest. The matter was thoroughly discussed, and there was a sharp division of opinion on the subject. An amendment was proposed by Mr. Best suggesting that the matter be fully explained by the directors in a circular, and that a referendum of the shareholders be taken. After a warm discussion tlie amendment that the directors prepare a statement and submit the question to a referendum of the shareholders was carried by 119 votes to 65.