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THE BLUE SPUR COMPANY.

SERIOUS ALLEGATIONS AGAINST THE VENDORS.

[From Our London Correspondent.]

London, April 5. I understand that things have taken a serious turn in the Blue Spur Company. I have already described the various steps taken by the London Board with the object of raising money to pay off the balance of the purchase money, and thus secure absolute control of the property, but the arrival of the last mail from New Zealand has put a new complexion on the whole thing. On the evidence now to hand the directors are advised by their solicitors in this country that Mr J. G. Brown has made improper representations when placing the property on the London market, and Mr Grosvenor Wood, perhaps the most eminent company barrister in England, on the whole case being submitted to him, has advised that although Mr J. C. Brown was nominally a purchaser from the original owners and a vendor to the London company, he was in reality the agent of the New Zealand vendors, with whom the purchasers were brought face to face, so that the misrepresentations of Mr Brown were those of the vendors. Under these circumstances Mr Wood advises that the London company is entitled to a rescission of the whole contract, and to claim a refund of all moneys paid, with interest thereon. Acting on this direction, the Board has instructed Sir Robert Stout by cablegram to commence an action at onoe against all; the parties. Amongst the misrepresentations complained of, the most serious one is said to be this: that Mr J. C. Brown vouched for the fact alleged in the prospectus on the faith of a report by Mr Vincent Pyke and a map of the claims certified to by Mr Langmuir, the district surveyor, that of the fifty-four acres to be acquired by the company fortyfive acres (shown witbin a blue line on the map issued with the prospectus) was absolutely "unworked" or virgin ground, instead of which, as it now turns out, the whole of it practically had been worked over and fairly honeycombed with tunnels and workings at the time of the Bale. I gather that Mr Vincent Fyke, soon after the company had been floated, wrote to the London Board stating that some disquieting rumors to this effect bad reached him, and that, although his report had been made in perfect good faith, he would recommend the direotors not to make any payment till they had satisfied themselves as to the area of the " undisturbed deposits." This letter, however, arrived too late, for the L 25.000 had been paid over to the vendors. The directors were reassured by communications from gentlemen apparently in a position to know all about it, and so matters went on till December last, when a private letter was received by the chairman from a resident at Lawrence, containing very serious allegations. This led to the appointment of a local inspector, and this in turn brought about the present disclosures. As the case stands now, it seems a very Berious business for the New Zealand vendors.

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https://paperspast.natlib.govt.nz/newspapers/ESD18890528.2.15

Bibliographic details

THE BLUE SPUR COMPANY., Evening Star, Issue 7918, 28 May 1889

Word Count
516

THE BLUE SPUR COMPANY. Evening Star, Issue 7918, 28 May 1889

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