SPEEDWELL OIL CASE

Northern Advocate, 8 June 1933, Page 6

SPEEDWELL OIL CASE

IV EA RTSOM H LENGTH . MANY DEFENCE WITNESSES. Ab-EEWATN GIVES EVIDENCE. (Special to “Northern Advocate.”) AUCKLAND, This Day. Witnesses continue to Ik* called and documents produced daily in the Speedwell Oil case, which is expected to be one of the loudest civil actions on record in New Zealand. The action is a claim by 49 shareholders in the Speedwell Oil Company (New Zealand), Limited, for £4033 from Harry Clinton McElwain, former director of the company. Mr. Justice Smith is on the Bench. Mr. Gould and Mr. Dyson appear for the plaintiffs and Mr. Weston and Air. Goldstine for the defendant. In continuation of the hearing yesterday, the defendant, Harry Clinton McElwain, said at the present moment he was unemployed. Early in 1929 he came into touch with Cave in connection with the Newmarket Company. Witness said that in investigating the affairs of the company he did not see the books, but depended upon balancesheets and an investigation by Air. Alorris. He thought the proposition to "purchase the business at 10/- in the pound on the paid-up capital an excellent one. Ho did not intend to get the business, dispose of it, and leave it to its fate. He desired to secure a permanent position for himself. He left the whole of the transactions in the hands of his solicitors. After Cave had produced the license from the English company, Air. Alassey said that the license was not such as would allow the formation of a public company. He therefore drew up a new license, and finally, after much correspondence, the new license was duly signed in December, 1929. Air. Alasey was to incorporate the new company. Witnes fixed the amount he was to receive for the flotation, an amount he thought very reasonable.- If the company had not been floated witness would have had to bear all the expense. From the beginning of 1929 till August, 19.‘10, when the company xvas .floated, witness had no other employment outside the floating of the company.