A DEAL IN DEBENTURES

Evening Star, Issue 15762, 27 March 1915, Page 11

A DEAL IN DEBENTURES

TECHNICAL 1L LEGALITY".

TO CLOSE A TRANSACTION

rRIMMATURE USE OF THE SEAL,

The Otago Harbor Board, having decided to sell £30,000 worth of debentures, reeeivine £15»900 at once and another £15,000 before tho end of May, a document la receipt, in fact, for the £15,000) came before the boaid last nbht to receive tho sea' of that body as recommended by the Standing Committee. It presently transpired, after Mr Loudon had asked a few questions and glanced through the document, that tho seal had been already attached two days ago, Mr Moller being authorised to complete the transaction, and it being necessary (to effect this) to catch an outgoing mail, the evening of til-.* committee, meeting. " Mr Loudon at onca gavo voice to his discovery. I find here (he said) the seal of the board attached on the 24th March, two days before it comes before the board. 1 ta-kc strong exception to that. Mr Belcher said that Mr Loudon was right, and some question might )•<• raised as to the legality of tho stamping of the document.

Mr Loudon: I intend to go "the whole hog," and demand that the. document be resea-led by resolution of this board tonight. It is'.a, scandalous thing.

Mr Walker said that while Mr Loudon was right in a way. still he had been perfectly awa.ro of the- position as stated at tho committee meeting—that tho transaction hail to be completed that evening. The breach was only a. technical one, and as Mr Loudon was one of the movers of tho resolution (for the ■-'■-:) he should havo said little about it-.

Mr Loudon: It is preposterous to flunk that any ect of members could attach the seal without any proper legal authority. Mr Ha-zlett: It is getting near election.

Mr Loudon: I am Unconcerned about elections, but 1 say that it is unconceivable that the board's seal should be attached before the resolution is passed.

Mr Moller (chairman) : I had to take the action 1 did in the interests of the board. I _am surprised that you (Mr Loudon) quibble about it, because you were. " in theknow," and I gave all information of {lie necessity to complete the transaction that evening.

Mv Loudon: I agree that the deal is a good one, but no, member has the right to put the board's seal on a, document wt-ihout the proper authority. Mr Moller: Can you tell me how I could complete the transaction without doing this. You know it had to be completed. Why did you not rais? the point at the Standing Committee's meeting?

There for the moment the matter dropped, but presently, when the ordinary business was completed, Mr Loudon returned to the subject. Jfe moved—"That the standing orders of the board be suspended in order that the following resolution ha passed, dealing with the arrangements for sale of debentures: 'That the seal of the board bo attached to a receipt for tho first instalment, of £-15,000 on account of salo of debentures, as arranged by tho chairman and appioved by the Standing Committee-; and that Messrs Meller and Waikcr be the members to witness tho affixing of the seal.'" He said that ho moved this with tho .object of doing away with having an illegal document in . the possesion of the board. There wok no doubt it was illegal. "If tills is not done," he added, " I shall take caro that the document is properly executed, even if I have to move- in the Supreme Cntrt." The Chairman : Thanks. Mr Loudon.

Mr Scoihiy: I was at the Standing Committee meeting, and 1 understand, sir, that you were instructed to close tho deal in connection with the debentures, Mr Moller: So did I understand it.

Mr Scollay : Then if the chairman is authorised to do a certain thing, and then is to be snubbed for it, what is tho position?

Mr Loudon: 11 is not a caw of snubbing. It is a ease of executing a document properly. Mr Wilkinson said that he was surprised at Mr Loudon bringing this up. He could remember that gentleman signing documents befnro they were passed' by the. board. 'The committee had given Mr Moiler authority to complete, tho transaction, and it had to lie completed the same night or it was nil'.

Messrs Moller and Walk or pointed out that the. resolution proposed had already bet-n passed. Mr Loudon, however, insisted, and Mr Hansel seconding, the hoard ag-iwi to the mover's proposal. Mr Loudon was evidently n-.A satisfied. "I don't want to >■« fowled"" belaid. ' "A new document with to-day's date is uecessarv."

Mr Moller: Tt b not for you to dictate to the chairman.

Mr Loudon : Do not think yon can bluff mo, or anyone else. Mr Walker commeii'vd t>> .sneak, but Mr Loudon cut in with : " 1 will nor lx> turned from mv resolution l.y anv sophistrice, from Mr Walker." Mr Mailer: You .iiv tx-t tho. only man with brains. Mr Loudon -. Tf a fresh document, is not executed I shall insist upon it. BLUFFING THE ENEMY. " I wanter 'ave a tooth drawn." said the youngster with the pugnacious face, "and I want gas." "Tut! tut!" murmured the dentist. "You're not old enough for gns. And I see you're not afraid of a little pain. Be a man !" "'Tisn't that," runs a contemporary's version of the story, "but T expect just at the end I'll give a little bit of a squeal." " Oh, that "won't matter," the dentist replied. "I shan't mind." " Xo," retorted the boy, " but I shall. Just you look out of the window." The dentist_ turned to look out, and saw a group of grinning lads standing close by hia window. he asked bis youthful patient. "What does that mean?" " Those are all the kids T've fought and licked." explained the boy, " and they've all followed me here just to hear me holler. Gimme gas 1"