IMPORTANT MERCANTILE CASE.

Evening Post, Volume LX, Issue 119, 16 November 1900, Page 5

IMPORTANT MERCANTILE CASE.

» THE FLOTATION OP A PATEA COMPANY. Argument tfas heard by the Chief Justice to-day in the case of Geo. Hutchison v. the Western Packing and Canning Company of Patea. The evidence in a which was taken in Wanganui before the plaintiff left for South Africa. The case for the plaintiff is that he was induced to take up 50 shares of £10 each, in the company (formerly known as Oldham's), owing to representation in its prospectus. He paid £25 on applying for the shares, and a similar sura when they were alLotted to himr; but ha refuses to pay. anything further because he alleges he has ascertained that some of the representations in the prospectus were false and fradulent, to wit :— (1) That the company has proved a great success financially; (2) that the results of the past were satisfactory ; (3) that the establishment .of freezing works at the port of Patea was, probable, on the anticipation of not more than £4 per share being required to be called up ; (4) that satisfactory arrangements for shipping in connection with freezing works had been effected ; (5) that there was' reasonable prospect of freezing operations being commenced before the end of 1899 ; (6) that Mr. Joseph Murgatroyd, jun., in whom the plaintiff had confidence, was a director. Th& plaintiff , therefore claims^—fl) that it. be declared that- he was induced to apply for and purchase the 50 shares by reason of the misrepresentations in the prospectus, and that the purchase and contract be declared void j (2) that the company be ordered to repay him the £50 which he paid for the shares together with interest thereon ; (3) that the company be restrained from pro--ceeding to recover the calls on the shares. The company denies that tho prospectus was issued by 1t or on its behalf, or with its- authority, and also that plaintiff was induced to take up shares by the representations ip the prospectus. It denies that the statements in the prospectus are false or fraudulent or untrue ; but it says that if they are untrue or incorrect, they are not material. It admits that Mr. Joseph *Murgatroyd, jun., was not actually a director when the prospectus was issued, but says that he had agreed to become a director, und he was elected a director immediately afterwards, and is still on the Board. The company further p'eads that if any of the statements in the prospectus are false, whioh it denies,, the plaintiff did' not immediately after discovering the falsity of such statements, or immediately after he had been informed thereof, repudiate his liability as a shareholder, but delayed for a long time to take any steps to repudiate .his liability. Mr. S. T. Fitzherbert' (Wanganui), ap^ peaiv-1 for the plaintiff, and Mr. Barnicoat (Wanganui) for the company. His Hqiioui reserved his decision.

Ice-oream freezers and preserving pnns are .advertised by Messrs. Wilkins . and Field in another column.