COMPANY LITIGATION

Nelson Evening Mail, Volume LXX, 21 September 1936, Page 10

COMPANY LITIGATION

EVIDENCE OBJECTED TO (United Press Association! AUCKLAND, 18th September. Further evidence was given in the Supreme Court to-day in the action involving companies associated with J. W. S. McArthur.

The plaintiffs are Thomas Henry Dawson and Leonard Knight as trustees for the debenture holders of New Zealand Redwood Forests, Limited, and they are joined, as plaintiffs by T. E. Jones, of Dargaville, one of the debenture holders.

The defendants are Sterling Investments Company (New Zealand), Limited, in liquidation, Wynwood Investments, Limited, and the National Investment Company of Queensland Proprietary, Limited. John Patrick McVeagh, solicitor, said that in 1934 an action was commenced on behalf of Elizabeth Smith against the Investment Executive Trust.

Mr Johnston objected to this evb dence. '•

McVeagh said the claim asked that certain transactions be set aside whereby Miss Smith had become the holder of a very large parcel of debentures in the Investment Executive Trust. The action was settled on 9th March, 1934. The settlement provided that the Investment Executive Trust was.to pay Miss Smith a sufficient sum to enable her to purchase the same shares and securities as she had transferred to the Trust.

In return, Miss Smith surrendered debentures to the Executive Investment Trust, said witness. The first payment, a cheque of £B2OO was made on 16th March, 1934. J. W. S. McArthur guaranteed the settlement. Altogether three payments were made to witness’s firm by cheques for £B2IO, £SOOO, and £3755. There was a further payment of £IO,OOO made in Sydney. The total amount involved was round about £29,000, including £26,965 in cash.

The case was adjourned till Monday.