BIG SUM INVOLVED.

Ashburton Guardian, Volume 54, Issue 91, 27 January 1934, Page 6

BIG SUM INVOLVED.

TIMARU INVESTORS CONCERNED SUPREME COURT ACTION. I (Special to the “Guardian.”) TliUAltU, This Day. The story of how two Timaru residents, a man and his wife, invested a big sum of money in debentures with a company whose headquarters are in Auckland, and how, after .prolonged proceedings, during which the matter found its way into tho Supreme Court, the two investors have practically got all their money back, has been revealed to a newspaper representative. It was alleged that in November or December of 1932, the company, in order to induce the two Timaru residents to purchase debentures in the company, through its agent > c-j/re-sented that a certain professor in Christchurch had invested £15,900 in the company, and also represented that arrangements had been made for the debentures of the company to he listed on tho Stock Exchange. As a result of the representations which were made, tlic Timaru residents purchased between them debentures to the value of £12,593. Subsequently, inquiries were set on foot, and as a result the two investors took steps to endeavour to recover their money. It is stated that legal action was taken, and an order of the Supreme Court was secured ordering the company within ten days to disclose all documents that were in its possession relating to the matter. These documents were not forthcoming, the contention of the company being that they were privileged documents. It is understood that a settlement has now been arrived at, hut the terms have not been disclosed, beyond tlio fact that the two investors will receive practically the whole of the money they paid for the debentures plus interest.