SCOULLAR CASE SETTLED

Dominion, Volume 10, Issue 3000, 10 February 1917, Page 16

SCOULLAR CASE SETTLED

STATEMENT OF THE TERMS The Hon. 'Arthur M._ Myers, Minister in Charge of Munitions and Supplies, has forwarded for publication a copy of a. letter written by Mr. P.. S. Macaasej 1 , counscl for the Crown, to Messrs. Izard and Weston, solicitors for Scoullar and Company, Ltd., containing nil offer of settlement by the Crown of tho caso in which the firm was charged with a breach of the War Regulations, and a letter in reply by Messrs. Izard and Weston, accepting, on behalf of the company, the Crown's terms of settlement. In his letter, Mr. Macasscy, by direction of the Minister, makes the following offer in settlement of the Crown's claim:— (1) That Scoullar and Company pay to the Crown the sum of £155, made up as follows:—The sum of £42, being wages of men employed in connection with tho examination and reconditioning of mattresses supplied, and the balance. £113, damages for breaches of contract in supplying mattresses which were deficient in flax, namely, an average deficiency of 261bs. of flax' on 8336 mattresses at 1.25 d. per pound. (2) Scoullar and Company at its own expense to recondition and deliver 223 mattresses in place of those, which were found to contain rope ends and floor sweepings. (3) Scoullar and Company to pay the fine of £50 and costs inflicted by the Magistrate nnder the recent conviction of the company for breach of the War Regulations, and to abandon the appeal against its conviction. . (•1) Tho terms of the settlement to be mode public. In reply Messrs. Izard and Weston state that they are instructed by the directors of tho Scoullar Company to accept the offer, "but we are," they add, "specially instructed to bring under your notice the following facts: — "(I) As regards the question of the deficiency in weight of tho mattresses supplied under the contract, a careful examination of the books of the company by<fn independent auditor of high repute snows that prior to May 1 the proper quantity of tow was used. The mattresses examined, and which proved to be under weight were, with a few exceptions, deliveted after May 1. 1916. Tli«> directors, however, as stated from the first, have no desire to put tho country to any loss in this' matter, and to obviate any doubt aro prepared to allow on all mattresses delivered between January 3, 1916, and August 19, 1916. the cost of tho'deficicnt t-ow on the basis of tho average deficiency discovered in those examined. They are also..quite willing to pav the costs of. the examination. Wo enclose, therefore, the company's cheque for £1.55 as requested by you. "Tn reference to the abandonment of the appeal case, wo are instructed to point out that the Magistrate in the ease stated on a-ppeal expressly found that it was not proved that the breaches of contract alleged were committed with the knowledge of either the directors or the manager of the company, but- were due to one of the_ company's assistant _ foremen. This is exactly the position as stated in the company's letter to tho Supply Board when the breaches were first discovered. In view of these findings, which exculpated the directors and the company's manager, the company does not propose to .proceed with the appeal lodged, as no good can be served in times such as these bv questioning the scope of the War Regulations enacted by tho Government. AVo are instructed to say that yowr offer is accepted-on the express condition that this letter is published m the public Press at the same time as the terms of settlement, as set out in Mr. Macassey's letter, aro published in the public Press."