COMPANY SUED

Hokitika Guardian, 8 March 1930, Page 3

COMPANY SUED

SHARES IN TOBACCO COMPANY,

HAMILTON, March' jo.

Investors will he interested in an action which came before Mr Justice Smith in the Hamilton Supreme Court to-day. ' • ;

William Matthew Cann, tobacconist, sued the Associated Investment Underwriters’ Association (New Zealand) for the return of £SOO, together with accrued interest.

lie was induced by defendant -company to underwrite £SOO £1 first mortgage debentures' issued by Tobacco Growers (N.Z), Ltd. in consideration of thisdefendant company undertook to purchase thcso'dehenturcs from plaintiff at par if they remained unsold jor gi lieriod of sixty days from 1929, and "to pay interest at the rale of £7 10s per centum on the £SOO.

Plaintiff had not received the debentures, nor-had lie received information that they had been sold. He had plied to the company to purchase tho debentures and for the payment of interest in,terms of defendant company’s undertaking, hut had received no satisfaction." .

Plaintiff claimed that there, was. owing him £l7 7s 0(1 interest.; Although a defence was filed, there was no appearance of the representative of the defendant company.

His Honour said that in the nbsewe of any defence or evidence to show that the company could not make such arrangement judgement, would he given plaintiff for the full amount claimed, plus interest at per cent.