SUPREME COURT.

Evening Star, Volume IX, Issue 2699, 11 October 1871, Page 2

SUPREME COURT.

NISI PRIUS. ' This Day, (Before His Honor Mr Justice Chapman.) CREED V. VKRENS, DALOETY, AND OTHERS. This morning’s sitting commenced with the cross-examination of Mr Rattray by Mr Smith, counsel! for plaintiff. Mr Rattray said their firm understood the mortgage given by Ferens to them, was over the whole of the estate, sheep included. He understood Ferens had had some sheep on terms, but they were herded with the rest, and what claims were due by Ferens were money claims. Ferens told them all his sheep were branded alike, and what he had on terms belonged to friends who would never trouble about the sheep so long as they got their wool money. Ferens volunteered to mortgage the whole of the] sheep if they would pay L6OO, It was part of the condition of their loan that the sheep should all belong to Ferens. r* e did not think that Street made a first offer to Ferens limiting the number of sheep as security to 8000 or 9000, which Ferens claimed as his own. That proposition was not made to witness. From his note book he found that Morris made an offer on behalf of his company, to lend L7| 500 instead of 1.9,500, as required. On May 4th ho saw Street and Ferens, when it was proposed to take L 5,000 from Morris and 16,000 sheep as security for the b dance owed. Ferens afterwards said he would mortgage the whole of his property if they found the money to keep the station going on in full work. The firm drew on behalf of Ferens LISOO to enableJiim to carry on the station, and the value of the wool received last year from the station, at 7d per lb, was LISOO. He was happy to say, however, the sale of the wool at London realised more than that amount, and such money would be placed to Ferens’s credit, though there were other liabilities to pay. The station had paid more than the interest on the mortgage money, He was now aware that Cullen represented Creed. When Cullen saw him on the 28th of September, he told him that he was aware that Creed had an interest in 6000 or 7000 sheep, but had considered Ferens had also an interest in them. Ferens was afterwards questioned by Nichols as to whether the sheep really belonged to him, and he replied that they belonged to friends of his. Mr Nichols was not content with that answer, and Ferens afterwards disclosed that Cormick had some interest in the sheep. He owned that he never made any inquiry about Cormick. Mr Barton : I submit that Mr Smith has no right to put that question. Mr Smith : It is important to have the information, as it they did not make proper inquiry they certainly went into their bargain with their eyes shut, and took all risk. He wished to ask witness whether Cormick was a real person or not ? Mr Rattray : Not to his knowledge. Letters were here put in sent from plaintiff to Messrs Dalgety, Nichols, and Co. asking for wool money on behalf of Creed ; also a letter announcing that plaintiff intended to sue for moneys due for wool as well as for the sheep. Mr Rattray : The letters asked for one year’s wool money, amounting t# 2s per I

bead, and also asked for forty or fifty per cent, of the lambs. He admitted having asked for the agreement between Creed and Ferens. The object of procuring the agreement was to enable them to resist the action, and let them see how they stood. He considered their firm w.is fighting Ferens’s battles as well as their own. He owned that a letter had been received from Donaldson, claiming money on account of sheep on Ferens’s estate. Witness asked Ferens distinctly to give him a plain statement what sheep he had on terms, and the number outside such statement. Onlleu had not waived his right as against Ferens, but had said if he could get his L 832 secured in some way, he would not mind the sheep. Witnes" said he could not have his mortgage disturbed, but was willing to receive an order from Ferens to pay the amount oat of any overplus above mortgage. Mr Smith : I.'id you not, in January last, when you were endeavoring to get Ferens a loan to enable him to pay off his mortgage, put the value of each sheep at the station as ss? Mr Rattray said be filled up a form for Feren’s to sign, in which they represented the value of the sheep on the station as ss. They wished to obtain a loan from the New Zealand Trust Company. They were agents for the Company. He did not think the sheep worth ss. They gave the Company their j augment. He did not represent the sheep as over valued but he thought the security as a whole wis a good one. The object of the loan was to enable Ferens to pay off his mortgage to them. Mr Smith : I understand Mr Street denies that he never mentioned to you that there was not some sheep on terms on Feren’s estate. Mr Rattray said he took down a memoranda in Mr Street’s office, and furnished it to Mr Barton. Mr Buton had sent that memoranda to Mr Street to see if it was correct, when Mr Street sail he never stated he was not aware that Ferens had some sheep on terms on his estate. Witness afterwards snv Mr Street and told him that he had taken down “ that Ferens had never told him he had any sheep on terms.” Mr Street said that was Wrong, because he had known some per. ons had, but the n vn: of Creed had not been mentioned. (Left sitting )