CLAIM FOR RETURN OF SHARES

Hawke's Bay Herald-Tribune, Issue 81, 22 April 1937, Page 9

CLAIM FOR RETURN OF SHARES

Telesraph— Pres» Assoeiation.I

McArthur Company Sued SECOND OF A SERIES

By

CHRISTCHURCH, Last Night 1 The first of a series of 18 elaimsj against the Australasian .Investment' Corporation, Ltd., .a Christchurch com-j pany, was . brought in the , Supremal Conrt to-day befpre Mt. Justice Ken-! nedy. The claims are heing. hased on| share tran.sfers involving £14,420, an^ • this is the second such series of - claimsi within five months. • The claims arisei , from. the, t^ansfer, of . shares . in the Investment Executive. Trust • Company :of New Zealand, Ltd. — -one- of the J*. W, S. McArthur companies — and con* cem shares- of a nominal -value of £14,420. transferred to the Australasian Investment Corporation. Plaintiff in- the first claim is Georgtt Herbert Elliott, ' a retired art ' masterjj of Palmerston North/ who claimed the Teturn of shares of a nominal value of £600 which h'e'had transferred from. the .. Investment Executive Trust to the Aus* * tralasian Investment Corporation. Ha j also claimed £240 in dividends on those ! j shares received by defendant company j j from the Public Trustee and £60 paid I in cash at the time of tho transfer. ) Plaintiff was represented by Mr. R. A. j !Young and with him Mr. K J. Mc- • Menamin, an.d. defendant company Jt>y Mr. H. F. O'Leary, K.C., and with him j iMr. E. E. Trip* ! In the statement of claim plaiatiff ; tet ont that he was originally the holiloc of debentures of a nominal value oi £600 in the Investment Executive Trust Company of New Zealand, Ltd., the ; assets of which had been invested i Act of Parliament in the Publie

Trustee. In May, 1936, plaintiff agreed to transfer to defendant company hia debentures, together with £60 in cash, for the issue to him of £600 worth of shares in the Australasian Investment Corporatipn. This transfer, the statement continued, had been rnade on the representations of Osmond Arthur Bridgewater, managing-director , of the corporation, In persuading him to transfer Bridge* water said: (1) That no commissiou would be charged for the transfer; (2) that he (Bridgewater) had Simseli possessed a large holding in the lnvest* ment Executive Trust and had tranw f erred it to defendant company and 1 (3) that neither J. W. S. McArthur nor any person or finn or company associated with him was in any way connectod ,or associated with the Australasian Tnvestment Corporation,Since making the transfer on those ; assurances, plaintiff said, he had discovered: (1) That commission had been 'charged of at least 5 per cent by Bridgewater or the company ebntrolled by him; (2) that at tho time of the transfer -of plaintiff 'a shares Bridgei water was the holder of only one share in defendant company and had , not at ahy time before been a h'oidfer of other shares and (3) tBat J. W. S. McArthur and eertain companies and comnnittees under his Cuitrol had been actively associated with Bridgewater and defendant company. Evidence for plaintiff was concluded to-day and Mr. O'Leary 's opening address was interrupted ' by the adjjournment until to-morrow. j