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Financial difficulties led to 178 inquiry

17th October 1969
Page 39
Page 39, 17th October 1969 — Financial difficulties led to 178 inquiry
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Keywords : Business / Finance

• A breach of norrhal user was admitted by Mr. Peter Strain, of Newton Stewart, at a Section 178 inquiry in Glasgow last week. He agreed that vehicles on licences conditioned for a named customer —the West Cumberland Farmers Trading Society—had been used on other work.

It was pleaded in mitigation that the company had been under very great financial pressure and illegal work had been undertaken to meet the shortcomings. On legal advice it was discontinued and the business transferred to a new company—Peter Strain Ltd.

Mr. Strain's representative, Mr. R. Mackenzie, said Mr. Strain would continue as manager but would have no shareholding or financial interest.

A new normal user covering agricultural produce and requisites, livestock, road and building materials in the Scottish Traffic Area, North and Midlands of England had been proposed.

The LA said before he would give any decision, he required the earnings schedule relating to the West Cumberland Farmers, total earnings of recent months and a clearer definition of the North and Midlands of England.

If the answers to those queries proved satisfactory. he did not anticipate any difficulty, he said, but warned that future operations by the company would be carefully watched.


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