WOOLLEN MILL PROJECT.

New Zealand Herald, Volume LXV, Issue 20116, 29 November 1928, Page 12

WOOLLEN MILL PROJECT.

A WINDING-UP PETITION. COURT RESERVES DECISION. [by telegraph. ~pres*s association.] DUXEDIN, Wednesday. At tho hearing yesterday of the case in which a petition was presented to the Supremo Court seeking tho winding up of the Southland Woollen Mills, Limited, Goro, Mr. Justice MacGregor suggested that counsel should get together and let him know the actual figures in respect to tho vote of the shareholders on the question of winding up. This morning Mr. F. B Adams, for thi company, submitted a list of figures to His Honor. Mr Adams said;,the 41,600 votes which tho petitioners claimed to havo on their side included votes obtained sinco the filing of tho petition. Thero was a serious deduction which ho claimed should bo made. In tho first placo thero wero unsigned voting papers. Mr. Barrowclough, for tho petitioners, claimed that tho Court had always exercised its right in cases of companies that had not started business within one year after incorporation. In regard to tho unsigned voting papers objected' to, lie claimed (hat tho shareholders had expressed their wishes in a certain way and it was for tho Court to say whether tho method of obtaining those wishes was satisfactoiv Even if papers submitted by agents wero abandoned, tho petitioners would still havo 40,900 votes, which gavo them a substantial majority. The directors d'd not now intend to carry out the original purpose of tho company. They proposod a weaving mill, for which tops would have to bo imported, and not a woollen mill. Tho gront body of share holders had never had tho latest proposition put before them.

Ilis Ilonoi said ho would tako timo to consider his decision. Mr Barrowcloui?h said ho was concerned about tlio machinery contract. Ho suggested the contractors at Home should be cabled to in an endeavour to have tho order held ovor

Mis Honoi, who referred to correspondencn in which tho directors had been informed a petition was, to be lodged, said ho could not mako any order as suggested by Mr Barrowclongh. In spito of tho correspondence tho directors had seen fit to order expensive inachinory.