AFTER THE BOOM

Evening Post, Volume CXI, Issue 71, 24 March 1926, Page 10

AFTER THE BOOM

SURETIES CALLED UP IN RACECOURSE TRANSACTION.

(By Telegraph.—Press Association.) HAMILTON, 23rd March. Some time ago the Morrinsville Racing Club bought an area of land close to the town for a course. This was during the boom period, and the price paid was far higher ■ than $he club could finance. Thirty-seven members of the club gave a "joint and several" to the Bank of New Zealand for a loan of £4000'. Approximately £3000" was received by them, but owing to the club not meeting its obligations to the mortgagee of the land the latter closed, bank then called up the money. . It was advanced together with the interest, the total being £3522 8a Id. Certain of the guarantors paid in full the share of their liability. Others paid suras ranging from £20 to £254, but many guarantors paid nothing./ The full amount of the guarantee was thus met. Those who paid later sued the remainder for sureties. This was done, and to-day heard. by Mr. Justice Herdman, who ordered the accounts to be taken to determine the liability of each of the cosurities. This was done, and to-day counsel, on-behalf of fifteen plaintiffs, asked Mr. Justice Ostler for judgment in accordance with the accounts taken. No defence was filed. Counsel remarked that two co-sureties, William John Corrigan and Henry Charles Jenkins, had since gone bankrupt, while a Maori, Teni Tuhakaraiha's assets, were all in Teal estate. His Honour gave judgment accordingly, with costs and disbursements to be fixed by the Registrar. In the judgment leave was reserved to take further accounts, in the event of the future insolvency of any of the remaining defendants.