CHEQUES STUCK UP.

Dominion, Volume 7, Issue 1969, 28 January 1914, Page 8

CHEQUES STUCK UP.

WATERSIDE TROUBLE,

LETTER SENT TO THE BANK

BY FIFTEEN MEMBERS.

UNION INVOKES THE COURT.

Tho banking transactions of the new union of waterside workers are partly hung up owing to representations which soino members of. the union have madeto the Bank of New Zealand, tho'union's bankers. This transpires in the papers concerniiiE a matter which is to como before the Supreme Court next month in the form of an originating summons for a declaratory order determining tho construction to lie placed upon certain rules of tho union. Tho proceedings aro beiiiß taken under the In- , mistrial Conciliation and Arbitration Act, and tho Declaratory Judgments

Plio plaintiff m the action is the union, the full title of which is The \\ ellmgton Wharf-labourers' Industrial Union of Workers.. The defendants are the Bank of New Zealand: J H behalf of himself and other members'of lZ unM ?,f.,?." d J - P - L i ,k -e, J. G. W Aitken, William 0. all of Welluifiton, .trustees of the union. The Letter the Bank Got. Some preliminary facts which may he used as an aid to understanding' the caso are contained in an. affidavit made I,™ ?* crct ? r X ° f , to* union, Charles Albert Ernest I'urdey. The secretary states.that in accordance with Rule 13 nf 1° f ? {, 01 i h ° IlaS - naW » H thc m <«>evß or that body received by him to its the bank determined en bj- tho executive ot tho union. On January 8 WilJiam Ignatius Shanloy, president of tho union, and Cfaas. A. E. Purdey,secretary and treasurer, were appointed to operate on the account of tho union, and the bank was requested to honour chMues signed by them. On December 8 it was resolved that all tho funds of tho union over and aboto the aetrial working expenses, 'should bo placed in the hands of the three trustees-the (J. P. Luke), 3. x -./'tken, and W. 0. Long—to bo set aside for tho purpose of establishing; a sick aud accident fund "Wellington, January 13, 1914. ■"To tho Manager o£ tfes Bank of New Zealand, "Lambton Quay. "Sir,—Tho following financialmembers of the Wellington Wharf Labourers , " Industrial Union of Workers desire to inform you that they will hold the bank responsiblo lor any payment made on account ot tho aforesaid union without tho authority of a,legally constituted meeting of the union. We desire to draw your 1 attention to Ru!o 18 re trustees." •nil!'* lettfir *° e Dank 1v43 signed by Psß. Green, W. Boulton, A. Thomson, n y? e l°fK G A Kill > J> H - Waiißh, J. Goodhall/G. Coffoy, A. Allen, Alexander Anderson, N. Currie, J. 31'Kay, A. Hodgkmson, W. H. Kerr, and G.'Bockrell. , _ A similar letter was sent to tho president of tho union. Union Consults Its Solicitors, , ; Mri A'.VP; Green/manager of thc bank, wrote at b'nce'to tho secretary of the union informing him of the receipt of tho letter, and stating that ho. would bo glad to 6ee him as : earlyas possible. , "Meantime," lib added, "pleas© see that tho account is not operated upon." i The executive of tho union consulted a city firm of solicitors, who advised that thero was no need for a. meeting to determine how the bank account was to he operated. Tho bank was informed of this opinion, and was asked to honour the cheques drawn by fho authorised officers. The Bank's Letter to Secretary. On January 14 tfro bank wrote, as follows to tho secretary of tho union :— "You will please take notiee that cheques . . . amounting in all to •' £115 12s. Id., drawn by yourself, have been duly presented for payment, have not been paid, and are now debited to your account." A further note from tho bank to the union stated: "It is doubtful whether the parties signing theso cheques have power to operate on the account of the union." The Only Way Out, Later, the bank communicated further with the union, this time stating that it-had again submitted the ir.niter to its solicitors, who had replied that it was impossible to advise with any confidence as to who was entitled to withdraw the union's mowey ; from tlie bank. The bank's letter added that its solicitors suggested that the union's .solicitors should apply to the Court for a declaratory judgment."

Tho union has, therefore, applied to the Court for judicial interpretation.

Rule 18 of the union, under wlich tho trustees are appointed, is:—"Two trustees shall be appointed annuallyi who shall control the property of the union, and who shall invest tho funds not required for immediate use in such manner as the union may direct. They shall sign all orders for withdrawal of trust moneys from the bank or elsewhere, when required to do so ly resolution of th© union."