THE M‘ARTHUR CO.’S DEALINGS

Evening Star, Issue 22354, 2 June 1936, Page 5

THE M‘ARTHUR CO.’S DEALINGS

AGENT'S DUNEDIN TRANSACTIONS DISPUTED TERMS [Psa United Press Association.] AUCKLAND, June 1. A dispute over the terms on which a Dunedin agent had been employed by a company associated with the M‘Arthur group to purchase shares in certain other companies resulted in an action for the recovery of amounts totalling £1,891, with interest, being commenced before Air Justice Ostler in the Supreme Court to-day. The plaintiff was the Transport Mutual and General Insurance Company Ltd. (in liquidation), and the defendant was Cyril Ernie llichard Webber, agent, of Dunedin. Mr Hubble, for the plaintiff, said the Public Trustee was liquidator of the plaintiff company. The action was really a claim for the balance of moneys received by tho defendant for which the plaintiff said he had to account. The plaintiff company was one of those associated with the Investment Executive Trust of New Zealand Ltd., how under the control of the Public Trustee by virtue of two Acts of Parliament. The defendant admitted receiving tho moneys. He said, in fact, .that ho had accounted for them, that there was no balance owing by him, but that there was a balance owing to him. It was not disputed, that the defendant rendered services to the company, but there was a dispute as to tho terms of liis engagement". It was this that the court was asked to decide.

Counsel reviewed the formation of the company. While this company was incorporated in the ordinary way,” he said. “ it was obviously controlled by the Investment Executive Trust of New Zealand. Its only real activity was the acquiring of shares, principally in a Dunedin concern, the Trustees, Executors, and Agency Company of New Zealand Ltd., and apparently a plan had been devised by a group of companies, known as the M‘Arthur group to acquire control of the Dunedin company. It was in connection with that activity that the defendant had rendered services to the plaintiff company.” Mr.Hampson. for the defendant, said there had never been any desire on the defendant’s part to avoid giving the fullest account of the moneys he had received, nor was his honesty questioned.

Cyril Ernie 'Richard Webber, the defendant, said that in January, 1034, bo savr M'Arthur and Alcorn, and agreed to acquire shares in two companies for a salary of £4OO a year. This was to be raised to £I,OOO a year when 10 per cent, of the Dunedin shares had been obtained. He had done considerable preparatory work, for- which he understood he was to, receive £SOO. Subsequently he went to Sydney, where it was agreed to pay him £I,OOO a rear. The hearing was adjourned until tomorrow.