The Pamphlet Collection of Sir Robert Stout: Volume 70
Excerpt from Minute of Meeting of Local Board held in Dunedin, N.Z., 17th November, 1892
Excerpt from Minute of Meeting of Local Board held in Dunedin, N.Z., 17th November, 1892.
The Secretary's letters dated 6th October, and excerpt from minute of Directors' meeting held on 28th September, were read.
After discussion the following resolution was unanimously agreed to, viz.:—" The members of the Local Board desire to place on record their opinion as to the course adopted, and its probable consequences to the interests of the Shareholders. They desire to do this not only as the local advisers of the Company, and, therefore, to some extent responsible to the Shareholders, but in their individual capacity as considerable Shareholders in the Company, and therefore personally interested in a favourable realisation of its assets."
Property. | Owing. | Dobson's Valuation. | Realised. |
---|---|---|---|
No. 1 | £3,334 | £2,260 | £3,146 |
No. 2 | 2,198 | 1,271 | 1,527 |
No. 3 | 1,100 | 935 | 1,100 |
No. 4 | 850 | 677 | 782 |
No. 5 | 2,931 | 2,422 | 2,931 |
No. 6 | 2,550 | 1,275 | 2,550 |
No. 7 | 3,000 | 1,500 | 3,000 |
No. 8 | 350 | 357 | 400 |
No. 9 | 500 | 360 | 500 |
No. 10 | 1,000 | 720 | 1.000 |
No. 11 | 1,607 | Nil | 614 |
No. 12 | 145 | Nil | 150 |
No. 13 | 1,178 | 532 | 1,200 |
No. 14 | 2,000 | 1,923 | 2,000 |
No. 15 | 1,278 | 750 | 1,100 |
No. 16 | 658 | 640 | 658 |
No. 17 | 450 | 250 | 450 |
No. 18 | 838 | 400 | 800 |
No. 19 | 1,553 | 750 | 1,950 |
No. 20 | 1,500 | 1,420 | 1,500 |
No. 21 | 1,000 | 750 | 1,000 |
No. 22 | 7,705 | 5,506 | 8,085 |
No. 23 | 100 | 56 | 100 |
No. 24 | 1.453 | 1,193 | 1,453 |
No. 25 | 2,710 | 1,753 | 2,710 |
No. 26 | 248 | 211 | 300 |
Carryforward | £27,911 | £40,796 |
Brought forward | £27,911 | £40,796 | |
---|---|---|---|
No. 27 | 450 | 328 | 450 |
No. 28 | 850 | 486 | 850 |
No. 29 | 900 | 710 | 900 |
No. 30 | 4,000 | 3,850 | 4,000 |
No. 31 | 519 | Nil | 310 |
No. 32 | 1.200 | 546 | 1,200 |
No. 33 | 220 | 78 | 168 |
No. 34 | 2,700 | 2,472 | 2,700 |
£36,381 | £51,584 |
This shows conclusively that they were correct in their opinion (see minute of 19th August, 1892) as to Mr Dobson's competence as a valuer of land in this part of New Zealand.
Second.—The appointment of Mr Dobson as Sole Manager in the Colony seems to them very questionable policy in the interests of Shareholders. Mr Dobson is a resident of Napier, in the North Island of New Zealand—some six hundred miles from the part of the Colony where nearly all the Company's securities are situated, his experience in connection with land in South Canterbury, Otago and Southland is certainly very small. His hurried run through the securities two years ago did not materially add to his knowledge on the subject, and the unreliable nature of his report clearly shows this to be the case.
Third.—They think that the substance of the private correspondence between Mr Lawrie and Mr Dobson, to which the minute refers, should have been communicated to the Local Board, so that they mignt have had an opportunity of replying to any strictures Mr Dobson may have seen fit to make in regard to them, and they think the Directors have not acted in a straitforward way in listening to ear parte statements without giving them an opportunity of replying.
Fourth.—They feel sure that by a forced and rapid realisation, such as the Directors propose, great lost will result to the Shareholders, properties will be sacrificed at very much below their real value, and many of the Company's clients who are gradually improving their position and working out their liabilities, will be ruined. In realising properties in the Colony, it must be page 6 borne in mind that it is not simply a question of a moderate reduction in price that will secure purchasers. It is very much more a question of finding a person who is prepared to buy at all, and in cases of forced sales properties as a rule are simply sacrificed. By a gradual realisation, such as the Local Board have been carrying on, they believe the Company would eventually come out without material loss to the Shareholders, but by a forced realisation they are satisfied that their interests, along with those of the other Shareholders, will be very materially and unnecessarily prejudiced.