SOME QUEER FACTS ABOUT COMPANIES.

Te Aroha News, Volume VI, Issue 335, 19 January 1889, Page 6

SOME QUEER FACTS ABOUT COMPANIES.

A libei action just heard in the law courts (says' the " Pall Mall (Jazetfco") has let in some side-light 3 on transactions Avliich some tune ago obtained considerable notoriety. *] We allucle | to the floating of we companies for the, purpose of working what are known as Ashley's bottle.making patents.- An English-company was 'first floated, with a 'capital pi £'300,'000> and-then a second company with the foreign rights was. started, the capital being fixed at £600,000. It i& now admitted that the t patent rights in the bottle-making machinery were acquired by certain enterprising gentleman for £52,000, and wore resold to the European company for £500,000. All that was paM in cash appears to havo been £5,000, and for this outlay they arranged to pocket half a million in shares. Circumstances did not favour the scheme, however, for although the public came forward and subscribed largely it wa& found necessary in the case of the European company to return the money. How much;, was subsequently obtained for the patent rights does not appear. The European company is said to have been reconstructed with a capital of £170,000, and as its first stroke ot business the American rights havo been disposed of for £150,000. As this money has not yet been paid, possibly the promoters still await the reward of their enterprise. It is needless with facts so patient to empha^ swe the urgent necessity for a rofoim of our company law, so as to socuro the disclosure of ail such bargains when an appeal is mado to the public for their cash.