They trusted Mr, Turner, replied Mr. Newman, and" he thought. the liquidator had been made a tool of by Mr, Mayer, who had done this sort of thing before; three other companies with which he had been connected had very much the same history.
'As a result of the capitalization of the company at $250,000, instead of $100,000, and the issue" of $50,000 Worth of debentures, Mr, Newman's clients' share in the new company was worth practically nothing. Immediately they found this out, they sent back the shares to Mr. Mayer, and Informed Mr. Turner. Mr. Turner, however, went ahead with the sale of the company to Mr. Mayer.
Examining the law on the subject of discharging a receiver and liquida-for from his duties, Mr. Newman said that a liquidator could be so. discharged by the Court for reasons of ersonat unfitness, including bad character, "connection with other. parties, personal interest' in matters. in which he wag involved, or intimate connections with directors into whose. affairs he must investigate, No Charges Mr. Newman pointed out that Messrs. Turner and Mayer had offices in the same building, and saw quite lot of each other, He expressly. stated, however, that he made no) charges of dishonesty" whatsoever inst Mr. Turner.
Judge Grant Jones said that he would appoint the Onicial Receiver of the Court to supervise the winding-up of the company, leaving Me. Turner his capacity of. liquidator, as Jwould then have to account to the Official Receiver. The Court would Teave it to the latter to take such course as he deemed necessary. The matter would have to be investigated.
The legal costs of the application were ordered to be paid out of the company's assets,
Text read from the printed page and cleaned; old type leaves the occasional error.