CLAIM AGAINST COMPANY

Southland Times, Issue 23181, 23 April 1937, Page 8

CLAIM AGAINST COMPANY

TRANSFER OF SHARES (United Press Association) CHRISTCHURCH, April 22. Whether the Australasian Investment Corporation, a Christchurch company, was working in association with companies controlled by J. W. S. McArthur was the principal question raised during the hearing of the evidence in the claim against the company which was continued today in the Supreme Court before Mr Justice Kennedy. The claim, which was brought by George Herbert Elliott, of Palmerston North, was for the return of shares of the nominal value of £6OO which had been transferred from the Investment Executive Company of New Zealand to the defendant company. He also claimed £240 in dividends on those shares received by the defendant company from the Public Trustee, and £6O paid in cash at the time of transfer. The claim is the first of a series of 18 involving £14,420. Mr H. F. O’Leary, K.C., for the defence, said O. A. Bridgewater had informed McArthur that he would not go to Sydney because his action might be misconstrued. McArthur had suggested that Bridgewater should meet Dr Louat, the McArthur Company’s counsel, who was going to New Zealand for a holiday. Dr Louat came to New Zealand early in January 1936 and he and Bridgewater came to the conclusion that some arrangements should be made so that there would be no competition between the companies they represented in the purchase of assets held by the Public Trustee. There was absolutely no arrangement whereby any control could be exercised by McArthur o''er Bridgewater and his company. Mr O’Leary contended that what Bridgewater had in mind was to avoid control by McArthur. This he did, or thought he did, and there was no question of fraud. Osmond Arthur Bridgewater gave evidence and the hearing was adjourned till tomorrow.