CLAIM FOR INTEREST.

New Zealand Herald, Volume LXVI, Issue 20341, 23 August 1929, Page 9

CLAIM FOR INTEREST.

SALE OF TIMBER RIGHTS.

FULL AMOUNT AWARDED.

Judgment- for a large amount of interest claimed by the Egmont Box Company (Mr. Johnstone and Mr. .Fleming) was given by Mr. Justice Ostler in the Supremo Court yesterday. The claim was for interest claimed to be due under an agreement made in May, 1926, for the sale of extensive timber rights. The parties to the agVeement were the Egmont Box Company and Bertram Philipps, of Dinton, Salisbury, England (Sir. McVeagh), who was the defendant. Mr. Johnstono said' the claim was presented under three heads, interest on tho balance of purchase money, interest on £20,000 (part of a debenture issue), and interest on arrears of interest. Tho third claim Sir. Johnstono abandoned. Counsel said that about 1908 tho Tongariro Timber Company acquired timber cutting lights over a very largo area of land lying between tho Upper Wanganui and Lake Taupo. In 1919 the company sold portion of its rights to the Egmont Box Company. Tho quantity of timber estimated to bo on the land was about 69,000,000 ft., and the royalty was 3s a hundred feet. At the time of the sale tho Tongariio Company rearranged its finance, and £25,000 of debentures were taken up. In 1926 tho Egmont Box Company sold its rights to the defendant for £14,500. The balance outstanding was now £7840, and there was a claim for £235 interest on that. Defendant had done nothing to tho block sinco ho bought it, and, consequently there had been no royalties by which tho debentures could be reduced. Tho plaintiff claimed £l4Ol, which it had been obliged to pay in debenture interest on £20,000. John Lindsay Weir, of Eltham, solicitor, said the only fund from which the debentures could' possibly bo repaid was tho 3s royalty coming from the timber in tho block. Sir. Philipps had closed tho block, and it had remained closed ever since. Mr. McVeagh said app.uently plaintiff had proved his case. His Honor said ho had no doubt the money was due on tho debentures, and the defendant was .liable to the company for it. Ho gave judgment for £1636 and costs.