A SCHEME FOR ISLAND TRADING

Dominion, Volume 15, Issue 23, 21 October 1921, Page 7

A SCHEME FOR ISLAND TRADING

MISREPRESENTATIONS ALLEGED JOINT VENTURE FALLS THROUGH In the Supreme Court yesterday, before the Hon. F. R. Chapman, temporary Judge, and a special jury of twelve. Thomas John Linton Buxton, accountant, of Wellington, claimed £983 16s. sd. damages from Jack Reginald Grey, raern chant. of Moorea Island, near Tahiti. French Oceania, for alleged misrepresentation in connection with a partnership said to have been agreed on between the defendant and tho plaintiff. Mr D- RKennedy appeared for the plaintiff, and Mr. A. ’ W Blair for the defendant, who came frefln Moorea to defend the case. The plaintiff alleged that during the voyage of the Ayrshire from England to New Zealand in December, 1918, the defendant had proposed, a joint acquirement of a copra plantation in a Pacific island putting forward a scheme for the purchase of an auxiliary schooner to carry produce from the plaptation. and to enter into general trade as a carrier of cargo and massengers between the various islands and San Francisco, the defendant to be master of the schooner. The defendant, it was alleged, had told the plaintiff that he waa a master mariner: also that he had had considerable service and experience as a seaman and officer in the mercantile marine. A proposal had been placed before the Government by the parties for the establishment of a schooner service between islands in the Ccok Group, for which a subsidy was asked. In a letter to the Minister in charge of tho Cook Islands’ Administration, reference was made to tho fact that the defendant had served during the war as commander of H.M. mystery ship Chamberlain. Further statements in the claim were that the plaintiff bod been in business prior to tho war (during which he served as adjutant and quartermaster in the N.Z.E F.) as a public accountant at New Plymouth, where he had been for seven years He had made an average income of about £550 a year. Believing that the. joint venture would "make pood," the plaintiff sold his practice, and took a, temporary position in the Defence Department at £7 12s. fid. a week. The .plaintiff further alleged that he missed an opportunity, through tho defendant’s representations, of going into partnership with hiß brother (a financial broker). On August 4. 1920. tho plaintiff alleged, while the proposal for the establishment of the schooner service was still under the consideration of the Government, the defendant sent a wireless message: “Consider me out.” The plaintiff further alleged that the defendant’s representations were untrne, and that "he macle tbe representations with the intention of inducing me to join him in the said venture, and to refrain from commencing business on my own account ... or from accepting any permanent employment.” The defendant stated that during the Great War he had been a lieutenant in the Royal Navy, nnd had been repeatedly placed in command of small vessels. Asa result of war service he was physically incapacitated, nnd was ultimately discharged as unfit for further service On account of his state of health, he was advised to reside in the tropica. On the voyage back to New Zealand, he discussed with tho plaintiff future prospects. and informed the plaintiff that he was anxious to secure n small vessel in which to trade about the islands. He possessed a, master mariner’s certificate for foreign-going yachts Defendant alleged that the plaintiff became interested, and desired to join him in his proposed venture. Some time after their return to New Zealand both men fell ill and during convalescence went on a Strip round the Marlborough Sounds for three months, in the defendant's yacht. In June 1918, tho plaintiff heard of a property in the Cook Islands, which he thought would be suitable, and it was agreed then the defendant alleged, that he should find £4300 and the plaintiff £lOOO as capital to enter upon the venture. Grey then went to Rarotonga, and. having inspected the property, deemed it to bo unsuitable nnd did not purchase. After further delay defendant heard of a suitable property tn tho Society Islands. It was then ascertained that a firm in Auckland would bo prepared to guarantee freights amounting to .£9OO per annum for the trade in the island". The parties, however, considered that the project was not feasible without, a substantial Government subsidy, which Was applied for accordingly but was not obtained. While tho defendant was travelling in various parts of Australasia and .Oceania in order to find a suitable place for starting out on tho nrojeet. the plaintiff (Grev alle.ged) was employed by the Defence Department at a salary of £7 a week. . Defendant also said that he had used all his own money for me. "fruitless searches” made by him on behalf of tho plaintiff and himself, The defendant “smarting under a, strong sense of disgust at the plaintiff's ingratitude.” had brought the scheme to an end. Tho defendant denied that the plaintiff had suffered any damage by reason of any statements made by him. and naked, by way of counterclaim for £lOl 7a. 6d, alleged to be half of the expenses incurred in his voyages to the Pacific islands in search of n. property. Evidence was given by the plaintiff, who corroborated the statements made in the claim.

Further evidence referred to the defendant’s t-rins to tlie islands "Yon haven't naid anything.” remarked Mr. Biair. ''We’ve done nil tbe paving!” The hearing- will be continued to-day.