CONSPIRACY ALLEGED

Dominion, Volume 29, Issue 301, 16 September 1936, Page 11

CONSPIRACY ALLEGED

Companies Associated With McArthur Involved AUCKLAND LEGAL ACTION By Telegraph—Press Association. Auckland, September 15. A legal action expected to last for several days and Involving companies associated with Mr. J., W. S. McArthur commenced in the Supreme Court today. Plaintiffs are Thomas Henry Dawson and Leonard Knight as trustees for the debenture-holders of New Zealand Redwood Forests, Limited, and they are joined as plaintiffs by T. E. Jones, of Dargaville, one of the debenture-holders. Defendants are Sterling Investments Company (New Zealand), Limited, in liquidation, Wynwood Investments, Limited, and the National Investment Company of Queensland Proprietary, Limited. The action was brought by plaintiffs for the purpose of having declared invalid a mortgage of £7500 which was given in April, 1931, by New Zealand Redwood Forests, Limited, to Kotahi Lands, Limited, and on subsequent dates was transferred to various other companies. Plaintiffs alleged there was a conspiracy between defendants to defeat and delay the rights of the debenture-holders of the Redwood Company. They claimed to be able to show these companies were members of a group controlled by J. W. S. McArthur and that although in the case of some of them McArthur was not actually a director, nevertheless the companies concerned acted in accordance with his wishes and under his direction and control. Counsel’s opening was not completed when the court adjourned.