WRIT SERVED UPON AUCKLAND COMPANY

Dominion, Volume 12, Issue 155, 26 March 1919, Page 6

WRIT SERVED UPON AUCKLAND COMPANY

LARGE NUMBER OF FARMERS CON. CERNED. A writ containing the names of over 200 farmers resident ;n Otngo and Southland, as plaintiffs, was recently issued out of the Supreme Court at Wellington, and has been served upon tlio New Zealand Farmers' Fertilizer Company, Ltd., Auckland. The plaintiffs allege that they were induced to take shares in the company as the result of misrepresentations made in the prospectus of the company and by canvassers. The alleged misrepresentations complained of are that the promoters of the company held valuable rights, offers and concessions that would enable them to sell phosphate and other fertilizers' to farmer shareholders nt greatly reduced rates, ard that the promoters had not promised any inducement to the original subscribers to induce them to become members or directors. It is alleged that the promoters did not hold any rights or toncessions, and that not only were promises made, to original subscribers to make vp the minimnm-, subscription reqniredby statute, but that soon after incorporation tht. company reduced its cnpitnl by accepting surrendors of shares tnken by the persons to" whom the ■„ promises' were made. Tim company has a nominal capital of half n million, and there are about 8000 shareholders throughout the Dominion. It is stated that, other writs are being issued on behalf of groups of shareholders in Taranaki, Canterbury, and other districts. Mr. 0. C. Mazengarb, of the firm ot Mazenearb and Hay, is solicitor for ths plaintiff shareholders,, and Mr. C: P. Skerrett, K.C., has been retained as counsel.