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LOCAL LAW CASES.

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LOCAL LAW CASES. An Attempt to Purchase Nixon's Colliery. A SHARE TRANSACTION DISPUTE. GLAMORGAN COLLIERY SHARES ACTION. The case of Percival v. Wright was further heard, on Saturday in the Chancery Division of the High Court (before Mr. Justice Swinfen Eady). This was an action by Messrs. Per- cival and Dowling, as the legal personal repre- sentatives of the late Mr. Wedgwood, a large shareholder in the Nixon's Navigation Col- liery Company (Limited), of Cardiff, claiming to set aside a sale of 253 shares in the com- pany to the defendants, Mr. W. Wright and Messrs. H. E. and C. H. Gray, directors of the company, on the ground that, having regard to the relative positions of the vendors and purchasers, and to certain circumstances which were within the knowledge of the pur- chasers and were not within the knowledge of the vendors, the sale was invalid. Plain- tiffs' case was that they sold the shares in October. 1900, to defendants not knowing that defendants, as directors of the company, were regotiatihg for the sale of the company at a price which would greatly enhance the value of the shares, plaintiffs having sold the shares, which were of the nominal value of £10 each, at zE12 10a. Defendants denied the allegations of the plaintiffs, and denied that the shares were worth more than was paid. Mr. Eve, K.C., and Mr. Vaughan Hawkins appeared for plaintiffs and Mr. Macnaghten. K.C., and Mr. Mark Eonier for defendants. Mr. Eve, having argued the legal aspect of the case at considerable length and quoted a number of authorities, called Mr. Holden, a merchant, who gave evidence as to making several offers to the directors for the purchase of the business at various times in 1930. He said the last price he offered would have been at the rate of about £:l.O a share. In 1901 Mr. Wright gave him to understand that they had decided not to sell, but negotiations were re- opened in January. 1901. Cross-examined: He said he had never pro- moted a company, although he had been associated with. company promoters. He knew nothing about collieries, although he visited the pits of the Nixon's Company just to say that he had seen them. The most use- ful information for his principals, however, waa in the balance-sheets of the colliery. Mr. Levita, one of his principals, was certainly a man of means, as were the other gentlemen with whom he was associated. He knew that Messrs. Forster Brown and Rees had valued the shares at J512 10s. Mr. Rees, however, gave him an opinion which he was not at liberty to disclose. Witness did not remember saying to the defendants that he required a valuation before he ma-de a firm offer. He admitted it was probable his principals would require a valuation before they paid over such a large sum of money. There was nothing in writing referring to his offer to purchase on Octo- ber 8. All these negotiations were preliminary to see what Nixon's wanted. Another offer was made by him on November 5, and he re- garded- that as a binding offer, which defen- dants could have enforced. There was no valuation then. but they had sufficient indica- tion by that time ae to the value of the col- liery. Mr. Ewart Bell, a director of Nixon's Naviga- tion Company, said he resided at Melksham, Wiltshire. He was present at a meeting of directors in October, 1900, when they discussed a proposal to sell the colliery, and he remem- bered the price worked out at JE18 a share. The offer was refused, one of the reasons being that they did not think it sufficiently large. It ■"ras not resolved that all negotiations should cease. Other and better offers were made, which were referred to a committee. Witness never made any objection to the financial status of the gentleman who made the offers. The offers were refused because there was a disinclination on the part of the directors to sell. The third offer was refused because the majority of the shareholders were against selling at any price. Cross-examined, he said the property never had been sold. The year 1901 was a very good one. and there were large dividends. jB12 10s. was the highest price that had ever been paid for shares. Witness himself was in favour of accepting the £20 a share offer in November, 1900. Other directors objected because they thought it was not sufficiently definite. They thought it was a company promoter's offer and did not like the property being hawked about, and. therefore, he did not press acceptance. This was the case for the plaintiffs, and the hearing was adjourned. CANAL NAVIGATION V. RHYMNEY RAIL- WAY COMPANY AND GREAT WESTERN RAILWAY COMPANY. Jn the Chancery Division of the High Court of Justice on Saturday Mr. Warrington, K.G., who represented the plaintiffs in this action, which is brought against the defendants to restrain them by injunction from interfering with or altering a canal towing-path in Gla- morgan. said that his learned friend Mr. Asquith, K.C., who represented the defendants, had asked him, as a matter of convenience to himself, to apply to the court to fix the hearing of the matter for July 1. instead of June 30. as had been previously arranged. The learned counsel on behalf of the plaintiffs said that the latter day would be suitable to himself and his clients. Mr. Justice Kekewich directed the action to be put into the paper for July 1 after another cause which had been fixed for the same day. BEVAN V. WERB: A PARTNERSHIP DISPUTE. The defendant in this action moved on Satur- day. before Mr. Justice Buckley in the Chan- cery Division of the High Oourt of Justice, for an order that all matters in dispute between the parties should be referred to arbitration, in accordance with certain articles of partner- ship. The parties carried on in partnership a brewery in Monmouth, and the articles pro- vided that all matters in dispute between the partners should be referred to arbitration. The partnership was to continue until the 1st of July. 1903, so that the present action, which was one for dissolution by reason of two people having been removed from being managers, was an action brought during the existence of the partnership. Mr. Astbury, K.C., who, with Mr. Cave, appeared in support of the motion, contended, npon the authorities, that under the circum- stances the matter must go to arbitration, as there was no legal question between the I parties and no question that could not be tried by a layman. Mr. H. Terrell, K.C., for the plaintiff in the action, said that under the peculiar terms of the partnership the defendants at the expira- tion of the lease would get the whole of the partnership business in their own hands, and they were spending large sums of money upon permanent works, and the sole object of the application was delay. In the course of the arguments his Lord- ship suggested that a reference to an official referee would meet all the plaintiff's objec- tions, and Mr. Terrell thought that that was a course his client should a-dopt. He wished for time. however, to consult his client, who was in Monmouth, and for that purpose the motion was ordered to stand over until Wednesday next, in the hope that the parties would come to terms.

----.---I THE BUTE" CELEBRATIONS.

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