Supreme Court PYRAMID FIRM’S CAPITAL

Press, Volume XCVIII, Issue 28976, 18 August 1959, Page 9

Supreme Court PYRAMID FIRM’S CAPITAL

Increase From £l5O

To £lO,OOO

Before Pyramid Machines, Ltd., could sell its mowers to agents it had to increase its capital from £l5O to £lO,OOO so that it could purchase the cutter bars and other components, David Gordon Latimer, a director of the firm, said in cross-examination by Mr R. A. Young in the Supreme Court yesterday. It was the 105th day of the mower dispute hearing. Concern about the cutter bars not being available had been expressed by the works manager; of W. H. Price and Son, Ltd., who had threatened to stop production of the mowers if the cutter bars were not produced, Latimer told Mr Young. Asked how he had intended to raise his £2950 share of the additional capital, the witness agreed that he had intended to pay it from his share in the patent rights on the machine. In June, 1955, the firm was going to buy the cutter bars from the International Harvester Company by paying cash. He had considered that this company had let his firm down because it had led the three directors to believe it had gone ahead with the ordering of the cutter bars, and had requested ten per cent deposit on the purchase money. Latimer said he had not been upset by the request of the International Harvester Company for cash on delivery. His firm could have obtained the cash from the Australia and New Zealand Bank, where it had an overdraft to the limit of £6ooo—the total price of 500 cutter bars. Pyramid Machines had in fact purchased cutt'.r bars with money lent by Rex Baker, one of its directors. It had bought other cutter bars from the Massey Harris Company with payments received from the sale of mowers. Three farmers had been interested in investing money in the ““t iio agreement had been made with them about the figure told Mr Young.