JOHNS BANNISTER, LTD.

Gisborne Times, Volume XXXVI, Issue 3454, 4 October 1913, Page 2

JOHNS BANNISTER, LTD.

A STATEMENT FROM THE DIRECTORS. HISTORY OF THE INVENTION. The directors of the Johns-Bannis-ter and Co., Ltd., have issued the following statement to the shareholders of the company:— “The two inventors were sent to. London in February last, and on arrival spent some time in getting a working patent made. When tried, the model proved an unqualified success, and subsequent tests by experts were followed by an offer from Mr S. F. Edge, representing the United Motor Industries, Ltd., of a 10s royalty upon each pulley, and asking for an option of purchase over all foreign patents. Advised by expert opinion, the attorneys recommended rejecting Edge’s offer as being inadequate. The offer of Mr Edge’s company is still open for acceptance, but the local directors have decided to be guided by the advice of the London attorneys. With reference to the position of the Rover Company, who state that the gear is not in their line, the directors would point out that this firm do not manufacture gears, but fit the Armstrong hub to their machines when required. Further than this, the j patent was never offered to the Rover Company, but was merely sent, to Coventry for inspection at their own special request. With regard to the attitude of other manufacturers of gears, it is obvious that firms who have expended a large amount of capital in plant for the making of existing gears are naturally reluctant to adopt the manufacture of a new patent necessitating the “scrapping” of existing patents. The directors are fully satisfied that the London attorneys would not have suggested “turning down” the offer oi Edge s Company and negotiating with, financiers in London for the present company to handle it themselves had the attorneys not been confident that this financial support would be forthcoming, and ultimately prove highly advantageous to the local shareholders. “The directors decided at the meeting to approve of the flotation of an English company to handle the gear to be proceeded with forthwith, the principal stipulation being that the local company shall retain a controlling interest in any company formed at Home. In connection with the Present position, the following extract from the last mail advice from the London at- j torneys is worth laying to heart by the shareholders: — “We learn indirectly of the increasing value which is being attached to the shares of the company, and we appreciate so much of that increase as is reflected by the shareholders confidence in the conduct of then affairs on this side so far as they have gone. We realise that a certain appreciation is a natural and healthy gio-n but wo are especially anxious that we shall not hereafter be held in any wav responsible for any losses which' unwise speculation may bring to some people who rely upon unfounded reports or incomplete messages. Our reports to you are beinS- made without any regard to possible fluctuations in prices of shares, none of which we hold, and we aie. of opinion that it will be bettei at the present stage if a sober view is maintained, as any subsequent successes will be reaped in such cases by those who have been content to wait for ‘real’ as opposed to ‘apparent results. . , , “Immediately on the receipt of anj definite proposition from London, the i whole position will he laid before the local shareholders, and the directors will he guided bv their decision. It should be clearly understood tin t the London agents will do nothing without cabled approval from Lisboiue.