THE GUTHRIE COMPANIES.

Waikato Argus, Volume V, Issue 372, 26 November 1898, Page 2

THE GUTHRIE COMPANIES.

(BY TELHGBAPH--PRESS ASSOCIATION). Dunedin, Last Night. The liquidation says that a system of inflation of stock aud shares enabled the principal shareholders and directors to draw from the companies for dividends, etc., the sum of £34,915, made up as follows :—Walter Guthrie, £21.198 ; W. E. Guthrie, £1876 : Mrs A. Guthrie, £693 ; Miss M. Guthrie, £l5O ; Miss C. Guthrie, £l5O ; Sir Robert Stout, £5829 ; Mr Mondy, £I33S ; Mr Colbeck, £1753; Mr Scandrett. £1103; Mr J. Stock, £531 ;Mr Sim, £390. As to the Dunedin Timber and Harhware Company and City Sawmilling Company, the Liquidator states that the .-hares held by Guthrie Company and Allied Companies were taken into the balance-sheet as good Assets for the full amendment of £22,180, but he is informed that the whole of the shares are worth less.

The reply of the late directors sets out that an enormous amount of money has been lost to the debenture-holders through the reckless and ruinous mode adopted by the liquidator in disposing of assets oi the companies. The directors scout the suggestion that dividends were improperly paid away, and state that the total amount paid away in dividends by the Walter Guthrie Company was £2751, and in all the other companies not more than £IOO. They charge the liquidator with wrecking the New Zealand Pine Company and selling it for about £ISOO, when there was a bona tide offer of £IO,OOO for one-seventh of it, and also with having suppressed all mention ot a number of favourable features. The directors state that the actual cause of insolvency was the policy adopted by the Bank of New Zealand and that the reason must be sought outside prudent and profitable bankiug or business considerations.