THE COURTS.

Press, Volume LXI, Issue 18417, 25 June 1925, Page 6

THE COURTS.

SUPREME COURT.

j (Before his Honour Mr Justice Sim.) ! A BAXIiKtTTCT MATTKR. An application was made for art order reversing the doci-ui.n ot" the Official A.--t-ignee thn* Richard Henry Smith, salesman, >.l Papanui. v. - as not entitled to prove a* ;i creditor in the bankrupt estate of Frank

I'ercival Claridge. .Mr W. J. .Sim, with him Mr It. W. Olliver. appeared in support of the motion, and .Mr A. T. Donnelly opposed it on behalf of the Assignee. The Official Assignee he!d that Smith was :i partner with Claridge in u company to he known as Clnridge's Saleyards, Ltd. Mr Sir.i said that Smith hnd applied for ;i proof of debt for £110:1 '"s "d. Claridge hnd induced Smith to enter into an agreement to Pay £H">O for 101.0 shares in a company, in ho known as Clnridge's Saleyards, Ltd. A!though tlie company was never formed and 1h» shares were never allotted, the Official Assigneo suggested that some kind of partnership arose. The question was whether the agreement -was carried out, and whether there had been some acquiescence, in the partnership- by Smith. He was induced to believe that the business, which was to ho converted into a new company, van £IOOO in credit, and t'uM. it was prosperous. Both statements were false, and if the representations wero false Smith was entitled to receive his money back, whether the representations were . innocent or fraudulent, and he was entitled to prove in the estate. The company contemplated would have only three shareholders —Claridge. Smith, and Wiiliam P. Claridge. Smith signed a memorandum of association, lie was not aware that the company had not been registered. When AS*. P. Thompson had failed, he demanded liix XIOOO. It. was contended that, money having been received and the consideration having failed, the applicant must succeed. Further,- it wa< contended that there was misrepresentation. Claridge hnd a tottering business, and he was pressed by creditors. He conceived flic brilliant idea of bringing £IOOO into the business, and Smith was the unfortunate person who made the contribution. Mr Donnelly said that, so far as he to; (oncernctl, Hie question was whether or not there had been a, partnership. Smith stated that ho had been in business on his own account in Tiinaru for some ycai-ii before lie came to Christchuroh. He was looking for a business to purchase and, with Thompson, he went to Claridge. He did not tell Claridge that the business was 100 hip,- for him. Ho did not want Claridge. for a partner, because ho did not know Claridge. If Thompson had been a partner there would have been an arrangement between the parties. Thompson was to' pay in •£2OO, and the remainder of his £IOOO was, to be paid out ifl the profits of the business. Witness thought Thompson would he able, to do tliis at: the end of 12 month:'.. Claridge, had .£IOOO in the business, and witness was given to understand (hut the profits would ho sufficient for- Thompson to pay his share without any trouble. The position was stated to witness by Nicholson, a qualified accountant, who also stated that the company was in course of registration. Thompson could not produce the money he was supposed to put in. Witness put in £.">oo, and was to put in the other half after Thompson had paid in. Claridge produced a. letter from Thompson showing that he bad property and had put tho equity of that property in t lie business. Witness then paid in his second £SOO. Atfer witness's .£IOOO had been completely paid in, Claridge put Thompson out of Ihe business. Claridge told ' Thompson ho did not want him, but had only used him as a lover to get witness's money. When Thompson went out witness asked Claridge for his money back. 'Witness was prepared to get out at any price, and said he would .sell his shares for £BOO. Claridgo told witness H. H. Cook would buy Ihem at. this price. To Mr Sim, witness said ho took no nart in the business at all. Ho acted merely as an employee, doing mostly menial work. V. V. Claridge, called by Mr Sim, said that ho had discussed the matter with Smith when the meeting of creditors was called. Accounts in the statement with drapery firms were witness's private accounts, and not connected with tho fiftn. Smith had negotiated with Cook, and one day Cook said to witness: "Cinrid/o, I'm your partner. I've bought Smith's shares." "Witness told Cook that it he could sell witness's busine.ss it was for sale. "When Smith went inlo the business witness thought he was worth £IOOO. "Witness left his books to his auditor, and did not interfere with them at all. . Smith cried off his deal with Cook. To Mr Donnelly, witness said be had nothing-to do with the books at all. He left it to his accountant to form, the company. In answer to ft question by his Honour, Mr Donnelly said that it was a little difficult to contend there was a partnership, but in view of the confused state of the dealings it was necessary for the Official Assignee to have the matter verified. His Honour said there was really no evidence to show there was a partnership, and the arrangement between the parties was that Smith was to get shares in a company to bo registered. The position was that he paid in £IOOO, and the company was never formed. Ho was entitled to prove against tho estate for that amount.

MAGISTERIAL.

"WEDNESDAY". (Before itr Vi'yvern "Wilson, S.M.) DRUNKENNESS. A first offender was convicted and discharged. In the case in which Mary Agues Vaughan, a domestic, aged 49 years, was charged with drunkenness and a breach of a prohibition order, and which was adjourned from Saturday till yesterday to enable accused to get (Hit of tho city, it was stated by the police that the woman had gone away. "Very well," .said his "Worship, "she is convicted and discharged." ON LICENSED PREMISES. . For having bean found on licensed premises after hours, the following were each convicted and fined 20s and costs. (Tho names of the

Imic]; on which the men were found ore mentioned in parentheses): —Arthur Vau Gladstone (Zetland Hotel). John Higgins (Cafe do Paris Hotel). Svdney Lacey (Cafe do V:i'-< Hot"! i, Reginald JI. Orton (.Ciifc do Paris Hotel;. Perev Cnrr Robinson (Ciarendon Hotel i, Kenneth Toppiu (Cafe do Paris Hotel). . , , Robert KcHc-her ws-i convicted cr.rt j.necl Xn and costs for having supplied liquor alter hours in the Zetland Hotel. EROKFX ORDFR.

Vornian Tt. Stewart was convicted nnd fined £."> for having procured liquor while prohibited. SKXTFNCK I'OSTI'O.NKI'. "Guiltv" was the plea entered by Robert Thomas i.estham. aged 51 years, who was charged with the theft of a quantity ot carpenter's tools, the property of the NewZealand Fanners' Coop.. J.id. Accused was convicted and sentence postponed til! Friday. VXSTAM ri-'.D RFCF. IFTS. For having failed to stamp receipts liable to stamp ttutv. Robert S. H. lUi.-hannu. Beryl Bockuelt. and Frank Xi.-hnlls wero each convicted and fined 10s and costs. XATIFF. GAMF. James Smith was convicted and fined 2'U for having taken or killed pukeko at Clarkvilln. F. Merrin. sen., and F. Mcrriii. jun.. ot Raifiora. were cadi convicted and fined £o and "costs for having taken or killed native game. GOLD BAXGLK STOLFN'. A TOimz man named William Robert Walter Moonoy. aged '.'."> ypni-s appeared for sentence on a charge of having stolen a gold bangle, the property of Mrs A. Walsh. Moonoy was convicted and fined £lO, in default one month's imprisonment. LTCFXSKK CONVICTED.

James Richmond Blackie. licensee of the Oxford Hotel, pleaded guilty to charges of exposing liquor for sale, keeping the premise.-; open for the sale of liquor, and oi sellilia- liquor after hours. "Fight men wero found in th" hotel bar at 0 p.m. mi May 22nd." said Sub-In-spector A. Cameron, who prosecuted on behalf of the police. He went on to say that the police had been admitted by a porter. There was liquor in front of the men. some of whom admitted having no right to bo on the place. When the police entered the licensee and his son were present in the bar. The licensee had been before the Court on a previous occasion. Ho went into the premises in March. 1!>22. His 'Worship said that Blackie had » bad record for a licensee. He went inlo Hie house in 101:2. eight, months later he was lined £."i for permitting drunkenness, and then he was fined £"> and £lO for other breaches. It. Mas a matter in which he would have to consult the register to ;eo whether or not lie should endorso the license. For that purpeso he stood the case down till the afternoon.

In the afternoon Mr M. J. Grcsson, who appeared for Blackie. addressed the. Bench on the question of penalty. He asked his Worship to err on the side of leniency. He said thai the most drastic punishment the Magistrate could inflict would be the endorsement of Blnckie's license. Counsel contended that the case was not as bad as others that had come before the Magislrato. "I am going to leave it, to the Licensing Committee to say whether or not lllaekie will get his license next year," said the Magistrate. If he inflicted n line it would give Blackie a chance. Blackie was convicted and fined £lo—the maximum fine—on each of the thre.o charges. Tho son of the licensee, David Blackie. admitted having sold liquor after hours in the hotel. He was couvicted and fined -10s and costs. Leslie Bishop, David 1". Broom. AVilliiim Craddock Frederick Foulds, William Alfred Love, Patrick .1. McGrath, Cyril O'Neill. John I. Simpson, nnd Richard Phelan, wero each convicted and lined 20s and costs for having been found in the Oxford Hotel after hours. STIOPKKEPKRS FIXED. Shopkeepers and butchers, within a 30 mile radius of the City, who had their shops open on Faster Saturday or Monday, wore fined yesterday.

The prosecutions were brought, by Mr A. F. "Wake, Inspector of Factories. The Inspector said the award permitted butchers to remain open till 7 a.m.. but. the grocers' simps bad to be closed although, permission was granted to sell bread from the back door. Tho point he -wished to emphasise •was that many of the shops were closed. Grocers were fined as- follows:— H. Soanos ss, B. Gndsell ss, I. Kobinson ss, (). Keurns 10s, D. Herriott ss. S. Johnson ss. L. MeMullati 10s, F. "Withers ss, S. S. l'endaHon 3 os, A. F. Munslow 10s "W. J. Orr 10s, F. It. McCallum ss, Jacob Grimshuw 40s. N. Brewer 5s "W. J. Sutherland 5», Mrs K. Mac 3 os, John Arrowsmilh 3 os, Mrs Sadie Donaldson 10s, John Wilson 10s, Mrs Annie Gilbert 10s, Mrs Fannv Svkes 10s. Alfred T. Hancock in s , John S. Piper .10s. Mrs Catherine JJanna 10s, "Willinm Bros. 10s S. J. Harbinson ss, Mm Mallet 3 os. T. Martin 3 os. .1. liankin 10s, "W. J. Leverett 10s T. K. Thomson 10s. J. F. Hill 10s, .T. McOreanor 10s, K. M. Hollowav 10s, A. M. Meredith 10s, F.Henry 10s, A. J. Jarrett ss. Butchers were fined 10s and costs as fol-lows:-—-John Shaw. George Fairhairn (two charges), .T. "W. .Smith. J. W. Blancbard, K. Hickson, (.'. "Walker, S. Alexander. Perrv Auderson, ('.'. Cook. "W. A. Pope, B. Grav, E. W. Taylor, Avon Meat Supply (T. Edwards), F. Bull. F. 11. Sloel, J. Knight, J. Shaw, and J. Donne. J. Knight was fined 40s. j)]SMissi-;r>. The case in which Kdgar Sutherland denied a i-i"i'-«n of having been found on the Bincolu Hotel after hours, was dismissed. ' The case in which Henry Gillespie was charged with having stolen eight trees valued at I(is. the property of flip New Brighton Borough Council, wus dismissed for waut of prosecution. A young man named Leonard Adams proceeded against Albert Edward Porter on ;i charge of alleged assault, and be applied for sureties of the peace. Adams said he was keeping company with Porter's daughter. The girl had ieft home because her parents were always "chipping" at her, and Porter blamed him for her leaving home. Porter attacked him on the night the girl left home. In dismissing the case as trivial, the Magistrate said that Porter had been provoki-d by Adams's actions. Ho did not think Auatms was particularly desirable as a prospective son-in-law. OXK MONTH'S IMPRISONMENT.

Appearing on remand, Francis James Haughey, salesman, aged 40 years, pleaded not guilty to having stolen two cornets, the property of the New Brighton Municipal Hand, but guilty to having stolen a bic/cle, the property of Jack L. Kiddey, Christchurch. His "Worship convicted and sentenced Jianghey to one month';; imprisonment on each charge, sentences to be concurrent. • (Before Messrs J'. H. Seagcr and H. Bullock. J.P.'s.) YOUNG- GIRL REMANDED. A young, well-dressed woman, aged -'.' years," publication of whose name was suppressed, was charged with the theft of two dresses from a "Wellington firm. Mr J. B. Batchelor appeared for the accused. Chief-Detective T. Gibson asked thut accused be remanded to appear at Wellington nest week. "She's just moving about the country," he said. "She's following a theatrical company about. She was only arrested this morning." "That is so." said Mr Batchelor. ".She has no relations here.. The company has an engagement in Wellington next week." The Bench suppressed the woman's name and granted bail. THEFT OF COAT. Matilda. Ewing, a middle-aged woman, pleaded guilty to having stolen an overcoat, the property of Alary McDonald. Christchurch. Detective" (+. Knudson. who interviewed (he accused, said Ewing. admitted the ofl'euce to him. Accused was committed to the Supreme Court for sentence. Until the Court sits she will remain in the Salvation Army Home.

FALSE PRETENCES. \n old mrm named Charles McDonald, a labourer, need 0"-' years, was charged villi having obtained .i'lo from Edwnnl J Costello, Chrislchureh, by means of a valueless cheque. , , Accused pleaded /runty, mid was committed to the Dunedin Sunrci'ic Court for s-cuteu.'c. .Chief-Detective T. Gibson said that tli to were other charges to he heard aLMiint him in "the Timuru :ind Dunedin Courts. IN OTHER PLACES. ARTICLES OF ASSOCIATION ATTACKED. (PRESS ASSOCTATTCK TELEGRAM .1 HAMILTON, June 'j-1. An involved action in wliu-h tho validity of' the articles of association of the New Zealand Co-operative Dairy Company was attacked, was opened before Mr Justice. Iterdman in the Supreme Court to-day. when .lames Beanie Whisker, a farmer, or Xe'.herton. proceeded against the company to recover i' 7.< fis. whi.-h he alleged had been wrongfullv deducted from moneys due to him and 'for certain declaration* against the articles of association of the company. Mr Xorlhc.rofi. on behi>lf of the company, claimed that the nmtlcr was not within his Honour's jurisdiction. His Honour snsge'ted tha* perhaps the case should come before the Court of •Appeal. Th" matter was then dimmed by cour.se!. His Honour said he would take lane to consider tlie points raised. windim;-lt order. (Br.ES:> ASSOCIATION 1 EI.KGI'.AN:.) AUCKLAND. June 24. Sir Kohert Stout gave judgment today on an apiilicati'in for the compulsory wind-ing-up of the East Coast Shipping Company, on the petition of John Burns and Co., a judgment creditor for £l2O l*s, which had been due for a considerable time. Sir Hobert said that if the company could, ■without being compelled to do so. pay the creditors, the Court would give it time to do so. He would order the company to be wound up, but tho order would remain in Court for fourteen days, and if, during that period, the debt of the petitioning creditor was paid, and also the costs (ten guineas), the order would not be sealed. If the conditions were, not fulfilled the order must be scaled, and co'tnc into operation.