McARTHUR COMPANIES

Wanganui Chronicle, Volume 79, Issue 221, 18 September 1936, Page 6

McARTHUR COMPANIES

VALIDITY OF A MORTGAGE I SUPREME COURT ACTION (Per Press Association j .AUCKLAND. Sept 16. I Legal action involving a review of the activities of a number of com-' panies associated with J. W. S. McArthur, was continued in the Supreme Court. Counsel for plaintiffs, Mr. Barrowclough. completed his opening address and called a number of witnesses. some of whom produced books and records of several of the company's concerned, making court exhibits to the number of 45. Plaintiffs are I'. H. Dawson and L. Knight as trus:ees for the debenture-holders of New Zealand Redwood Forests Limited, and ! T. E. Jones of Dargaville, one of the debenture-holders. Defendants are Sterling Investmens Company 'New, Zealand) Limited in liquidation. Wyn-1 wood Investments Limited and the | National Investment Company of, Queensland Proprietary Limited. Ac- | tion was brought by plaintiffs for the purpose of having declared invalid a

mortgage of £7500 which was given in April 1931 by New Zealand Redwood Forests Limited to Kotahi Lands ( Limited and on subsequent dates was transferred to various other companies. Continuing his opening address, Mr. Barrowclough read from the minutes of Redwood Forests Limited, which he alleged showed that the chairman, J. W S McArthur, who was a large shareholder, had in defiance of the wishes of his co-directors imported on to the board M. H. Hampson and F. F. Hockley. The result was that the control of Redwood was passing into the hands of McArthur and those who were of like mind with him. Defendants alleged. Mr. Barrowclough said, that plaintiffs had been guilty of acquiescence in the validity of the memorandum of mortgage and could I not now claim that it was invalid, but [ no one could be held to have acquiesced without a full knowledge not I

only of the facts but his right of relief. It was not until the commission of inquiry was set up by the Government that the affairs of all these interlocking came to light and the trustees knew they had right to take proceedings against Kotahi Lands for alleged fraud. The hearing was adjourned.