The Temuka Leader TUESDAY, JUNE 7, 1887. TEMUKA LINSEED FACTORY.

Temuka Leader, Issue 1591, 7 June 1887, Page 2

The Temuka Leader TUESDAY, JUNE 7, 1887. TEMUKA LINSEED FACTORY.

Tee Uamaru Mail on last Jmday says: — “ The Terauka Linseed Company, like most local industries, does not seem to hi ip a very flourishing condition. At a meeting of shareholders held last Monday it was staled )hat the Bank overdraft amounted to £I4OO, sod other outstanding liabilities to £6OO. A shareholder staled that unless some £3OO were forthcoming the whole plant and assets would be lost, and the Directors have to pay the amount guaranteed to the Bank. It was resolved to issue 200 fresh shares, as the Company had arrived at a paying point. 1 his is the only Company of the kind in New Zealand, and it would be a matter of general regret if the Company had to shut up shop. Apart from the employment given to some 25 hands it would mean a serious loss to farmers of the district, whose lands are suited lor the growth of linseed, We can bear testimony to the excellent quality of the binder twine »nd other articles manufactured by the Company, having seen them at the Tiroaru Agricultural Society’s show. With the improved machinery lately imported these products will be much improved, and should command a ready sale throughout Now Zealand. We hearily hope the Company will surmount its difficulties.”

With reference to this it may be well to put the people in full possession of the factory’s actual ‘ position. The directors hold a mortgage over the whole plant, land, and other effects to the amount of £4400, for which they have given a guarantee to the Bank. They 1 ave used their own personal credit to buy the machinery and finance through up to present time, and now, when they have put everything in order and brought the industry to undoubtedly a paying position, they ask the shareholders and others to lend them a hand. They say: “We have done everything we could. We have run the risk of heavy loss in order to keep the industry from perishing; we now want money to carry on the concern for a few months, and after that it will carry itself on. All the other shareholders ought to share in the risk as well as we do, and unless they dp we shall not risk any more of our money in the concern.” This is very reasonable, and- the shareholders ought now to strain a point to prevent the industry from collapsing. ' If they do not, wbafwill happen is this : The Bank must be paid off first, and if the plant is put into the market we doubt if it will realise that amount. All the shareholders will, therefore, lose every penny they have invested in it, and there is a possibility of the concern falling through altogether. The directors may possibly take it over and manage it as their own private concern, and thus carry it on, but they have given no assurance, that they will do so yet. At any 'rate, unless the shareholders take up the 200 shares required they will lose every penny thfey have invested in it, and it appears to us it would be much better for them to “throw a sprat to catch a mackerel” by taking a couple of shares more each. If they do so. there is not the slightest danger but that they will get good interest on the whole of their shares eventually; if they do not they will lose all.