THE LEGALITY OF TRUSTS.

Greymouth Evening Star, Volume XXXI, 5 November 1901, Page 3

THE LEGALITY OF TRUSTS.

An Important Decision.

(PER PRESS ASSOCIATION.)

Wellington, November 4,

In the case of the New Zealand Flour Millers' Co-operative Association, Ltd., V. the Timaru Milling Company, Ltd., judgment in the Appeal Court was delivered by Mr Justice "Williams. The court held that the defendant company had no power to take shares in the plaintiff association under the memorandum of association of the defendant company on the ground that the business being carried on by the plaintiff Association was not similar or analagous to that being carried on by the defendant company the latter being purely a manufacturing businets, whilst that of the association was simply that of fixing prices and regulating the output.

The Court held on this ground that plaintiff association could recover nothing and it was necessary to determine or consider the important question which had been argued as to whether the agreement between the parties is unenforceable as being against public policy.

Costs were allowed to the defendant company on the highest scale, and leave granted to the plaintiff association to appeal to the Privy Council on terms to be afterwards fixed. The Court then adjourned to Wednesday morning.