THE FROZEN MEAT COMPANY.

Waikato Times, Volume XXXIII, Issue 2679, 12 September 1889, Page 2

THE FROZEN MEAT COMPANY.

(by telegraph.—own correspondent.) Auckland, Wednesday. At the Frozen Meat Company's meeting to-day, the following report was furnished by the Committee to the shareholders Gentlemen ; We have examined the financial position of the Company, and have come to the conclusion that we do -not see any probability of anything coming to the shareholders after paying the liabilities owing by the Company. We cannot suggest any scheme to put before the directors that is likely to benefit the shareholders. The only alternative we see is the liquidation course. — Faithfully yours (signed), Thomas Cuing, John - IS. Wk.st, Hknky Gkeic.v.

Ono of the members of tho committee supplemented tho information given. He said, " We were supplied with all the uartieulars of property we asked for, but tho margin of assets over encumbrances appeared to be too small to make it worth while to tackle a re-construction. The new undertaking wouM consist of two parts a company to acquire tlie leasehold, and a company to continue the meat business and cold storage with tho fish export business. We have been supplied with details, showing that seven per cent, could be earned on the sum of £18,000, but, in tho first place, that amount would bo required to buy back the works, and those who might bo prepared to consider that question might come to the conclusion less pretentions works would answer the purpose, and the Otahnhu property bo utilised for the purpose. Fveryone must regret that the iiborty to deal with the Company's reclamation was withheld at a crucial time, and only granted when it would benefit tho mortgagees instead of the unfortunate shareholders, who meant doing well for themselves and Auckland. Our public bodies have yet to prove tho wisdom of slapping in the face an enterprise of this kind."

A discussion followed, in the course of which Mr Brown suggested the possiblity of ss, or 10s or something less, in the £ being got from the creditors of the company in consideration of the whole concern being handed over. Mr Ching replied that the committee tried both the Bank and the Loan Company with this object in view unsuccessfully.

The Chairman pointed out that the actual state of affairs had been disclosed in the Balance .Sheet; unfortunately the losses from shrinkage and on valuation of the company's properties were such lhat tho value of tho securities closely approached tho amount of tho Company's indebtedness. When the expenses of realisation on the balance of the assets was taken into account, he feared there would bo no margin whatever over tho debt of the Company, consequently he considored it unreasonable to ask tho institutions mentioned to «ive any more money. At the same time he assured that tho assets of the Company would be made the most of.

Mr Green said he thought there was Rood ground for asking tho Bank, and Loan Company to give a small sum to the shareholders for tho abandonment of all rights. Thero were precedents for tho adoption of this course in previous cases of a similar kind.

A resolution to wind up was then put to the meeting, and carried by 18 against 2. Messrs Kissling and Buckland wore appointed liquidators, their remuneration to bo a hundred guineas between them.