COMPANY PROMOTION

Evening Star, Issue 22066, 27 June 1935, Page 10

COMPANY PROMOTION

PAYMENT FOR SERVICES DISALLOWED [P*r United Press Association.! AUCKLAND, June 27. Judgment was given by Mr Justice Callan to-d&y on a claim brought by Ivan Towers, of Auckland, accountant, against the liquidators of International Concessions Ltd., for admission of claimed to be a creditor of the company for £3OO on account ot services. , . . , . The judge said the services consisted in having told the directors of a valuable concession which Towers happened to know could be procured in Dantzig. He also conducted cable correspondence with a man in London at the company s expense. “It appears to me. said, the judge, “that £3OO is an exceedingly large sum for,so small an expenditure of time and energy, and • venture to think that there are few members of any skilled profession who could earn so much money with so much ease, notwithstanding that they have had to devote laborious .and expensive years in acquiring their tram--IDThe judge said he recognised, however. that in the sphere of company promotion and flotation gentlemen who hoped to make large profits for themselves and the shareholders were prepared to pay large suras for useful guidance and information. It appeared that over £7,000 was paid by this company in endeavouring to get the concession. although its actual price was under £9OO. and that the concession, when obtained, was' ultimately sold to an Australian company for 2,500 fullypaid shares in that company. Finallv, the judge said he was absolved ‘from assessing Towers s remuneration because he concluded from the evidence that Towers volunteered his services in the course of seeking employment from the company. The motion to admit proof of debt was dismissed.