CLAIM FOR £10,000

Poverty Bay Herald, Volume LXIII, Issue 19099, 21 August 1936, Page 13

CLAIM FOR £IO,OOO

l W. S. MCARTHUR’S YACHT LOSS BY COMPANIES SUPREME COURT ACTION (Per Press Association.) WELLINGTON, this day. In the Supreme Court to-day, the Pacific Exploration Company, Limited, and the Sterling Investments Company (N.Z.), Limited, both in liquidation, sought a declaration that. J. W. S. McArthur was liable to pay either £10,335 4s 4d or the value of the yacht Morewa at the date of its acquisition by McArthur, together with interest at 6 per cent, and an inquiry as to the value of the yacht at the date of its acquisition and all necessary directions ns to the holding of such an inquiry. Mr. Justice Johnston was on the bench.

Mr. G. G. Watson, for the plaintiffs, said that the action was brought by the E'liblic Trustee, virtually as statutory liquidator, and arose by the reason of the fact that the Morewa Had ceased to be an asset of one or the other of the two plaintiff companies, and in lieu thereof became vested, first in the. defendant, and ultimately was transferred by him to a Queensland' company which he thought. Ire was correct in saying was promoted by McArthur, and was known as the Queensland Investment Proprietary..

The allegation was that the yacht passed without any of tile plaintiff companies ireceiving any of the consideration upon which one or the other had spent £IO,OOO. The companies had lost the yacht and the money spent on it. The defence alleges a transfer agreement. to McArthur for the assumption of a liability of £8931 9s owed' by the Pacific Company to ? the .Sterling Company.