VALIDITY OF MORTGAGE

Otago Daily Times, Issue 22987, 16 September 1936, Page 8

VALIDITY OF MORTGAGE

M'ARTHUR COMPANIES SUPREME COURT ACTION (Per United Press Association' AUCKLAND, Sept. 15. Legal action, which is expected to last for several days and involving the companies associated with J. W. S. M'Arthur, was commenced in the Supreme Court to-day. The plaintiffs are Thomas Henry Dawson and Leonard Knight as trustees for deben-ture-holders of New Zealand Redwood Forests, Ltd.. and they are joined as plaintiffs by T. E. Jones, of Dargaville, one of the debenture-holders. The defendants are the Sterling Investments Company (New Zealand), Ltd., in liquidation, Wynwood Investments. Ltd., and the National Investment Company of Queensland Proprietary. Ltd. The action was brought by the plaintiffs for the purpose of having declared invalid a mortgage of £7500 which was given in April, 1931. by New Zealand Redwood Forests, Ltd., to Kotahi Lands, Ltd., and on subsequent dates was transferred to various other companies. The plaintiffs alleged that there was a conspiracy between the defendants to defeat and delay the rights of the debenture-holders of the Redwood Company. They claimed to be able to show that these companies were members of the group controlled by J. W. S. M'Arthur and that, although in the case of some of them M'Arthur was not actually a director, nevertheless the companies concerned acted in accordance with his wishes and under his direction and control.

Counsel's opening was not completed when the court adjourned.