MORTGAGE CASE

Evening Post, Volume CXXII, Issue 67, 16 September 1936, Page 18

MORTGAGE CASE

AN AUCKLAND ACTION

CONSPIRACY ALLEGED

(By Telegraphs--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. The 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. The defendants are Sterling Investments Company (New Zealand), Limited, in liquidation, Wynwopd Investments, Limited, and the National Investment Company of Queensland Proprietary, Limited.

The action was brought by the plaintiffs for the purpose of having.declared invalid a mortgage of £75001 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. The plaintiffs alleged there was a conspiracy between the defendants to defeat and delay the rights of the debenture holders of the Redwood Company. They claimed to be able to show that these companies were members of a group controlled by Mr. J. W. S. McArthur and that although in the case of some of them Mr. McArthur was notactually a directory, 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.