PAPER MILL DEAL

Hokitika Guardian, 6 May 1932, Page 5

PAPER MILL DEAL

l x PROMOTERS SUED ENORMOUS DAMAGES. (United Press Association—Jjy Electri 1 uiegrapn.— ngi.i,.; >»O.\DDX, .May 4. Alter a hearing lasting iwei\e d. ya a King's JL>encn jury has a..aiued .„ji, / Uombindd Paper and Pulp Mills a m lotUi. of £66<i,000 as damages against the former promoters, directors and auditor of the company. The awards consist of the following •0z6r,000 against Bruno Philip, of Ber.in. ,jt>£ei,4oo against Albert '.Martin Oppenheimer, solicitor, of London. £92,400 against - Sir Walter JBeupre Townley, K.C.M.G., late of the British D.plomawc Service, who has held important pos:s at many leading British Embassies. iis'2,4oo against Adolph Goldsmith, of London. . £92,400 against Eugene 'Spier, of J London. £24,400 against Thomas Froude, aud- » itor of the company. The .awards are for alleged conspiracy, fraud, and breach of duty, They also are asked to return tho dividends paid out of capital. Counsel said that tile company was formed in 1927 wl:h a capital of j £395,000 to acquire a German papermill. The defendants fraudulently represented 'The first year’s profits as at £200,000, whereas there was a loss. They thereby secured a further £395,000 capital at such premiums that they re- . ceived £600,000. They also returned the profit for 'the second years as being at £IOO,OOO, whereas there was no profit All of the assets disappeared. Mr Justice Maekinnon, commenting, said that Philip received £750,000 ■ within two years, and expressed the opinion that everybody agreed that he was “the villain of the piece.”