TOBACCO COMPANIES’ AFFAIRS

Greymouth Evening Star, 21 August 1940, Page 2

TOBACCO COMPANIES’ AFFAIRS

COURT EXAMINATION PRESS ASSOCIATION.] AUCKLAND, August 21. The public examination before Mr. Justice Fair, in the Supreme Court, of officers of Loyal, Limited, and the Consolidated Tobacco Co., Ltd., two companies in process of being wound up, was continued to-day. Edward Valentine Owen, re-exam-ined by Mr. Mac Kay, said that he and his father, who was one of the first growers of tobacco in New Zealand in a large way, conducted experiments and arrived at the conclusion that New Zealand leaf had different bacteria from that of American leaf, and they endeavoured to inoculate the local leaf with the bacteria of the American leaf. When he started with Loyal, Limited, he had evolved a full process. The time required by his method was much shorter than for other processes in New Zealand. While he was with Loyal, Ltd., he was offered a contract to go to Australia. Mr. Davie, of Melbourne, was prepared to pay him £30,000 to take his processes to Australia. He did not accept the offer, because of his interests in Loyal, Limited. He eventually agreed to sell his formula for £20,000, taking part payment in shares, because he regarded the shares as likely to be more valuable than money. Replying to Mr. Meredith, witness said that he had one letter mentioning the Melbourne offer, but he did not think it stated the price he had been offered.

(Proceeding)