AN INTERESTING CASE. (BY TELEGRAPH.) Christchurch, September 28.

North Otago Times, Volume XXXVII, Issue 8089, 29 September 1894, Page 3

AN INTERESTING CASE. ( BY TELEGRAPH.) Christchurch, September 28.

Ab the Supremo Court to-day an application was made fur an order removing B. Hale from the position of liquidator of the Mercantile Fiimnco and Agency Gompaoy. Mr Fiahor eaid tho application wa» mado on bohalf of tho holdorfl of 3170 eharos out of 10,750 in the Company. Tho liquidator h>id boon ono of tho promoters and a director of tho Company, nnd his intimate connocfclon with hia fellow promoters and directors in tho old compuny nimle it extromoly inadvisable that ho should continue in ofllco seeing that proceedings vroto ponding in which they woro deeply tntcroetod. Tho statements of tho petition were to the oiloob that nt the time of tho formation of tho now company tho old company had a roaoryo fund of LI 229 16a 2d, which had no existence except on paper. Some of tho n'roo'org of tho now Company, of whom fche liquidator Malo was ono, paid over to themselves as diroctora of tho old company a cum of L 1229 169 2d on account of that resorve. Tho dlrootors took ovor tho wholo of tho debta of the old com puny, amounting to L 37,908, at thoir fico valuo without writing them down at all. In tho report by Halo and Russell it was atatod that on March 31, 1893, tho total losn on account of securities takon j ovor from tho old company hid boon L1425,y0t in May, 1891, llussoll admitted that tho losses on that account had boon L 3602. It was also aesortcd that the directors of tho old company had paid dividends out of capital, and that misrepresentations had boon made in tho pro»pnctUB to tho offoct that tho vendor company had done a profitable business, had paid dividends at tho rato of 20 por cont after providing for bad and doubtful dobfcfl, and after carrying forward L 1229, yot within two yeara afterwards the company broko up with a loss of L 25,000, All theao matters cortainly demand investigation, and in all of them Hale was interested, Mr Stringer, who appeared to opposo, said tho case was airnplv a iishing expedition on behalf of certain individual shareholders, and not for tho benefit of tho company. After argument Mr Justice Donniaton eaid there seemed to bo grounds for investigation, especially as to tho allogod payment by the directors to thomoolvos of L 1229, and ho would adjourn tho case in ordor to allow tho othor fiido to filo affidavits in roply to that of tho petitioners.