CLAIM FOR £200

Hokitika Guardian, 19 September 1933, Page 6

CLAIM FOR £2OO

BONDHOLDERS v. 'COMPANY. (Per Pre s s. Association, Copyright) AUCKLAND, September 19. Two bondholders .in the Forcstal Timber Co., Ltd., claimed judgment an tlie Supreme Court for £202 10$ a gainst the company. They also asked the e oul ‘t : to declare that the company’s interest, in the fund held by the public: trustee had been forfeited, and also asked for: judgment for the amount of their claim ’against the. public trustee. ! The;;company' filed;-no defence and. plaintiff’,s counsel rsa'id -that d't .'had been .practically. defunct .since;-1930;’' . Evidencerwas’giVen by- plaintiffs,;-W* 1liam Edward- Peers, and ' Samuel William Peers, that they purchased boiidSfrom the company’s representative at Singapore. The secretary of the company (Air R. Of. Aliilligan), said that it was incorporated in 1925. The .proposed, bond issue was to he £350,000, and the land was to be leased at Putaruru. No .bonds were sold in New Zealand, but were sold principally in the Malay ■States. The bonds disposed of totalled 1411.

The annual report indicate 1 ! that 1040 acres of the area planted had been a complete 'failure, and the company Itherefcffe had ' to abandon the project as its capital was exhausted. By 1933 the accumulated losses were £IO,OOO, and the rent owing to the lands Department was.-£2714. .‘--•The position to-day was that the company did not own an acre of land or 'a single tree, and had no money, nor was there any possibility of its carrying out its obligations as the directors had all resigned-. , Counsel for the Public Trustee said that he was quite neutral, and merely awaited the decision as to how. the trust fund should be dealt with. Mr Justice Herdman made an order that the fund held by the public trustee is held in trust for the bondholders.