MAGISTRATE'S COURT KUMARA.

Greymouth Evening Star, Volume XXXI, 10 January 1901, Page 3

MAGISTRATE'S COURT KUMARA.

Tuesdaz, Jan. Bth,

(Before Messrs Aitken, Benyon, and ■ Campbell J. P.) Lawson Brcsand Edward Pring appeared charged with conspiracy to defraud the public in connection with Foley s extended Claim. Mr Guinness appeared for Lawson Bros, Mr Murdoch for Bring, and Messrs Hannan and Byrne for the informant Tansey. * Immediately on the case being called, Mr Aitken pointed out that his two fellow Justices and himself had beeh.summoced a 3 witnesses and atked how that would affect the case. Mr Guinness hero explained that he had had Mr Benyon summoned to give evidence on certain notes takm by him on the iMt Court d*y, which notes append in the Kumara Tun s. Mr Benyon replied, that he had taken no notes on the day in question, as ho bademployed a reporter, and further that as he was in noway interested in the case he intended to ait. Mr Hannan explained that when he saw the other side had subpoened Mr Banyon, ho at once had Mr Campbell summoned in order to checkmate them. Mr Campbell replied that as he had no evidence to give he intended to sit on the Bench also. ~ Mr Hannin in opening the ca-»e saidl: the information was laid under section 2oS of the Criminal Code Act, whereby accused if found guilty would bo liable to 5 years imprisonment. After detailing all the circum3tiances leading up to the prosecution, and the evidence he intended to lead toostablsh his case he pointed out to their Worships, that as they were not there necessarily to convict, it was not absolutely necessary that they should be convinced of the guilt of accused. If they thought theM was a prima facie case or that there was a fair presumption of the guilt of accused, then they should commit them. On the other h«nd if their Worships considered there was no evidence of conspriacy, they would not be justified in putting the country to the expense of another trial in a higher Court. However, ho would be able to produce evidence that would leave no doubt of guilt of accused. P Tansey, sworn said I know Lawson Bros and Pdng. In dealing with what is now known as Foleys extended I dealt with G. and W. Lawson,, M'llroy, and Byrne. In May 1900 I began negotiations on behalf of Mr Neill of Dunedin to acquire some dredging propertios. flpoke to the four vendors Lawsons (2) M'llroy, and Byrne about the claim Foleys Extended. They stated they did not know much about the ground and would like to have it prospected. I then ranged with Mr Neill of Dunedin. He agreed to pay £ls to have it prospected. I looked around to find some men suitable to do the prospecting but could not find anyone who knew the locality of the claim. In meantime I saw Laws ra Bros who agreed to do tho prospecting for £ls. They were to 3ink two shafts at the least, and if possible bottom them. Shortly after G. Lawson and Bring told me they had prospected the claim. They told mo they had a difficult job in prospecting and could'nt bottom the first shaft. They produced gold which they said came out of that shaft. That was before they sank any other shafts. Both G. Lawson and Pring stated that gold cams out of No 1 shaft. I particularly questioned Pring; He said the ground was splendid. They told mo the deptk of shaft was 7 or 8 feet to whore thay had to stop as it W-is'nt bottomed. I told them I would like a couple more shafts put down. Tho next day or so they told ma they sank another shaft. They also produced gold which they Faid had come from that shaft. I relied on the facts as stated. They told me they sank two from which the gold came. They tried two others but could not get down any depth nor wash any dirt.

The gold was. hanJud over in Mr Mcllroyj[B£,Si'c9, and I sent it on to Dunejdin<#ith the report. I bave not got the gold aback, as it was sent out of the Colony. They stated they washed Hyds from each shaft, yielding 2dwt3 13grs viz from one shaft, ldwt 9grs, from the other, ldwt 4grs. Mr Pring and G. Lawson v/ere present in Mcllroy's when the gold was handed over. Immediately after the prospecting was completed I took down the statement from G. Lawson. On the strength of this statement I sent a report to G. Neil], Dunodin. Lawsons stated that if they could get furtheir down the ground would go 20grs to the yard from top to bottom. They said thoy got the bottom with boring rods. One shaft was stated to be lift 6in the other 12ft 4in. After that prospecting I obtained an apoption in my own name on behalf of Neill. That option fell through as tho amount of capital didn't suit Neill. A nubsequent one was given dated Septomber sth, vesting property in Geo. Neill. There were 4 shares two Lawsons Messrs Byrne and Mcllroy. *" Immediately after option wo,B signed I wired Neil to that effect. All parties to the contract were aware of it. I then told the parties the next thing to do was to get a dredge on and get the dividends. That was on Sept sth 1900. Mr Neill gave tho vendors the first right to take up 1800 contributing shares in the Company. Because of some rumours to the effect that the first prospecting was too good to be true, I suggested that further prospecting should be done and stated that Messrs Naylor and Burger were agree- - able to put down another shaft for £2O. Lawsons objected a 9 they considered sufficient prospecting had been done. (This was eight or ten days after the s'h of Sept). I communicated with Mr Neill in reference to the cost being borne by the Company. He agreed to pay half if vendors would pay rest. Lawson Bros refused to pay anything, Lawson Brosthen offered to sink one Bhaffc for £ls. I told them I did not want any vendors at it again. I wanted independant men. That proposal then fell through. On the night of the 18ch Sept. we finally decided to have the ground prospected again. This was at Mr Mcllroy's store. Tho two Lawsons, Mr Byrne, Mr Mcllroy and myself were present. Lawson Bros left the shop, and still refused to pay anything towardu the proposed work. I met both brothers outside and told them we were going to prospect the ground. Asked them if they knew of any independent man who knew the locality of tho claim. They told me that Ti d Pring knew the place well. I asked where Pring wins. W. Lawson said he was in Greymouth. I asked if he was working anywhere. He said he was not. I asked if he was a good man, and if he had a good idea at mining. Both Lawsons told mo that Pring was a good man, and that he would be glad to come up and earn a few shillings. W. Lawson said he would be going to Greymouth on the following morning, and woul 1 bring Pring up. i I understood that W. Lawson had been in Greymouth that day Sept 18th as he was dressed. - ■-..■ if . I had no idea that there was any relationship between Pring and Lawson Bros when I engaged the former. On Pring being told that Carlsson was to be in charge, he got very indignant and declined to go, Alter consulting Mcllroy,

I told Pring I would pay him his day's wages and train fare. He conferred with with W. Lawson and actually told me he would go out. ' It was then decided that the prospecting party should consist of Carlsson, Eodgers, Pring and Dunshea. They were, to start the following morning, Sept. 20th, but did not do so as it was too wet. They made a start on Sept. 21st.

They did not finish tho first shaft on the 21st, but did so the following day, 22nd. On tho 22nd, Carlsson handed mo 2dwts of gold in the presence of other prospectors. Th.s was represented as the produce of half a load of dirt from tho bottom of the shaft.

In Pring's presence, I asked Carlsson if he tried any of tho shift going down the shaft. He said ho got a few fine colours and was surprised at the largo result he got after streaming it down in the box. I a-'so asked Dunshea arul Bodgersthe same question. Tney were also surprised at tho large result. Though Pring was present, T did not ask him any questions. I am not sure that I saw Lawsons that night, but I saw them tho following night and told them tho result of Carlsson's prospecting. They said it was very good, and reckoned it was a better claim than Foley's Creek. Carlsson had to return to Bell Hill, so Rodgers was put in charge of the next shaft with Dunshea, Pring, and a new hand named O'Grady.

Bodges handed me over ldwt of gold. Dunshea being with, him also Mcllroy. Pring had left before tho contents were washed up He told me that when he le't they had carried the dirt to the", Creek, and it only required putting through the box, so it was no use his staying any longer. I paid him and he returned to Grey mouth. (Exhibit B containing the 2dwts and ldwt of gold given by Carleson and Rodgers was here handed in by Mr Hannan.) I told Lawsons tho result of Rodgers shaft. * They said it was very good. In consequence of the result of this prospecting, Mcllroy, Byrne, Dr Scott and myself took up 950 of the 13C0 coptribufcshares reserved for the district. I spoke to Lawson Bros about taking a proportion of shares. At first they were not disposed to take any. They said they had a very big vendors holding. I said it looked bad vendors not taking up contributing shares. In a day or two they took up 100 between thom and told me they would sell as soon as they went to a premium. They instructed me to sell, but the market had fallen and I could not do so. They quoted at 2s 6d to 3s in my quotations.

The balance of the 1300 together with 275 more were divided among some particular friends, who wished to get a share in the claim.

A few weeks after both Lawsons spoke to me about selling their paid upinterest in Foley's Extended. They were £1 shares, and Lawsons mentioned that they would accept 10/-.

I did not like to see the shares thrown on Dunedin market, as it would ruin the contributing shares as a marketable stock. Thereupon Dr Scott, Mcllroy, Byrne and myself, as a syndicate, decided to buy G. Lawsons interest in Foley's Extended, £llO was paid by the syndicate to G. Lawson for his paid up shares, and £SO for a similar sum that was coming to G. Lawson from the Company. £l2 was paid for his interest in 4 other prospecting areas in the same locality. Total £175. The transfer of shares and assignment produced are the documents referred to. Lawson did not give any definite reason for selling, except that he thought of going to Christchurch. Immediately after G. Lawson's sale, W. Lawson told me he thought he would sell his vendor's shares in Foley's Extended. He Slid he would not sell his whole interests for less than £2OO. We finally purchased at that price. All transfers were made out in my nume, but all the other members of the syndicate were equally interested. W. Lawson told .lie that Barr Leary and Co had oriered him £2lO for his interest.

The result of those transfers, was to leave Mcllroy. Byrne, Dr Scott and myself the owners of 1300 paid up shares together with the £2OO due under the deed of option. We have not received the paid-up shares nor the cash, nor any portion of them. W. Lawson told me ho was going to Christchurch and intended to pick up a couple of horses and that was his reason for selling. Before going both Lawsons instructed me to buy Greenstone Gold Dredging shares. My instructions as a broker wore to go to 6d premium. I told them it was % strange they should sell out of a claim averaging 20 grs to the load to buy into one yielding only about 5£ grs, I tried to buy at limit, but could not. Both Lawsons were interested as vendors in Foley's Creek claim close to the Extended. I know they sold all i heir interest in Foley's Creek claim. I know the Brandy Jacks claim, close to the Foleys. I know that Lawsons sold some of their interest in that., but the market flattened and they could not sell all. I should say Lawsons made about £4OO in Ful»y's and £IOO in Brandy Jacks, in all about £875 including the syndicate's purchase money. I know that all these claims have now suspended operations. They have been proved total duffers. After purchasing Lawson's interest our syndicate -decided to prospect the flat, the former tests having been made near the creek. This was to prove whether the gold extended right through the claim. We employed my father to do the prospeoting. In consequent of his report 1 wired to Dunedin to stop all further operations and immediately made the result public. I would not have had anything to do with the claim but for the representations of accused as to the gold obtained from the claim and its payable nature. I certainly believed that the samples of gold handed me by Lawsons, Carlsson and Eodgers were the natural product of Foley's Extended.

Cross-examined by Mr Guinness : Do not remember buying into any claim without its being prospected. I did buy into 4 prospecting areas from Lawsons in Foley's Creek that had not been prosSectcd. But would not have bought into bley's Extended except for representation. I have no means of fixing the date of the 21st as the date on which Carlsson and Pring started to work, excepting a memorandum which I have lost. I was to get 151 shares from the vendors for assisting in promoting the company. I wanted to satisfy the public and further satisfy myself, hence I undertook further E respecting. I firmly believe I spoke to oth Lawsons on the night of September 18th. I think it was after I saw Lawsons about Pring that Carlsson was engaged. I will not say positively that wc arranged with Carlsson on the 18th, but I firmly believe we did. I remember telling Lawsons the result of T. Sogers' shaft. I believe it was in my office and that they were together. I did tell Lawsons that Greenstone Gold Dredging and Greenstone Creek's were good buying if they intended investing. That was after they told me they intended to buy into Greenstone stock. I bought 25 Greenstone Creek's for Lawsons after they sold out of Foley's Creek, but before they sold out of Foley's Extended. Lawsons never instructed me to buy Greenstone Creeks after I purchased the 25 referred to. I never asked Lawsons to give me the first option of purchase of their shares so as to have the office in Kumara and I made legal manager. W. Lawson allowed me 2$ per cent—£o; G. Lawson allowed me nothing. The out-

side properties referred to are situated in Foley's Creek locality, and I bought oneeighth interest in them. On 3 reason Lawsons gave me for selling out was that they didn't believe much in dredging, but they bought 25 Greenstone Creek's and tried to buy 150 more. By Mr Murdoch : Became agent for Mr Neill early in May, do not remember date of first option, I never had a written order from Ci. Neill to act as his agent. About 22nd September I first made up my mind to purchase from G. Lawson. 1 didn't consider when I bought Lawson's interest that I took up their position as vendors, because the transaction was then complete. I did inform Neill that I had purchased Lawson's interest. I will not swear that the company was registered before November Ist My reason for saying I would not stand in same position as Lawson's is because as an outside individual I bought from them, and transfers were duly completed. It was like buying paid up shares in say the Greenstone Junction. I wired to Neill I was buying Lawson's interest, asking if company was registered. I also wrote, it may have been within one month, but I cannot swear to it. I do not remember being introduced to Mr Pring. I do not remember being in Ryan's Hotel with Lawson's and Pring within the last 4 months, but I may have been. I swear I never knew Mr Pring was a relation of Lawson's at anytime before Carlson's prospecting. I would not swear whether M'llroy heard Pring say that the gold came out of No I shaft. I swear positively that the gold from the second shaft was not handed to me in the presence of P. Mordaunt and Pring on the footpath in front of my office.

Re-examined by Mr Hannan : I remember that the night on which W. Lawson and Pring arrived from Gre}--mouth was a Wednesday night, because Mr M'llroy's and other business places were shut up. As a broker I did try to sell the interests of both men. I rarely saw Lawson Bros, apart. In fact is a noticeable feature that they do not mix with others. Including the paid up shares the total number in Kumara would be under 3,000 out of a total of 7,000 in the company, so it could not give me the balance and enough to make me secretary. This concluded Tansey's examination, and as it was close to 6 p.m., the Court adjourned until 10 a.m., January 9th. Bail was allowed the accused in the same sums as before. WEDNESDAY, JANUARY 9. Mr P. Tansey, recalled. Mr Pring told me at the time of paying him that tho Lawsons had promised to give him paid-up shares. This was said in Mr fci'llroy's office, in Mr Mcllro.y's presence. He did not state particulars as the number of shares. Cross-examined by Mr Guinness : The shares mentioned were in Foley's Creek not in Foley's Extended, but we understood he was to get some in all. At that time I did not know Pring was a relation of Lawsons.

John Joseph Thompson sworn, said:— I am accountant in Bank of New Zealand, Greymouth. I know W. Lawson. He sold some gold to the Bank on 7th Sept., loz 4dwts 18grs. It was alluvial gold. I saw W. Lawson some days after. He called at the Bank about 3 to 10 days after. He wanted to buy some gold, about an ounce, as well as I can remember. I did not sell any so there was no entry, and I consequently did not note the date. It is unusual for people to buy gold from the Bank. I have sold smaU quantities of gold to a photographer or a jeweller. Shareholders in claims sometimes purchase a sample of gold from the Bank. Cross-examined by Mr Guinness —1 have been about 14 months buying gold at Greymouth, and have had about 12 years experience in other places. Have not had experience as a miner to enable mo to express any opinion as to the relative merits of panning wish a dish, and washing through a box for saving fine gold. I gave evidence on 6th Dec. 1900 in the Warden's Court on this case. The report in the Kumara Times that I said Lawson wanted to buy k>z, is incorrect, I stated at last Court Lawson wanted to buy loz and not ioz. He did not say he wanted to buy a little gold. Robert George Ward, accountant, Union Bank of Australia Greymouth, sworn:—l bought lOdwts 18grs of gold from a stranger on Sept 18th 1900 at the Bank in Greymouth.

It is usual to ask the seller his name and tho district from which the gold came. I asked this stranger his name and the district. At first he hesitated to give it, I said he had to give it, and he said "say Mark" Kumara. I put down '"Mark" Kumara.

Mr Fraher, junior, in the Bank wa3 within hearing and view at the time. The following day 19ch Sept the same man came into the Bank and bought 5 dwts for which he paid at the rate of £4 per oz.

I remarked to him that it was a strange transaction to sell gold one day at £3 183 per oz and buy it back the next day for £4. He did give some reason but I forget it. The entry is to Mark, Kumara. I addressed him as Mark. H Lawson now in court is tho man Mark. I took particular notice of him the second day, owing to a conversation I had with Fraher The dates and amounts are entered up in my books. I cannot say the sample produced is the one sold to Mark. This is an ordinary fair sample of alluvial gold. There were six different samples of gold in the dish from which the gold sold to Mark was taken. In selling gold to photographers and others it is pinched from the bulk and would contain a greater proportion of coarse gold than fine.

Some samples we buy contain no more fine gold than the sample produced. It is very unusual for people to buy gold from the Union Bank. Only jewellers and photographers do so. Crosa-examined by Mr. Guinness.—l have been buying gold at Greymouth for over two years. It is unusual for people to buy gold, but we have sold one or two small parcels of alluvial, but usually nuggets. I am positive that the 18th September (was the date on which the gold was purchased a-i I have duplicate entries certified.to by the manager. I could not fix the hour of day. I should say it was before 1 p.m. Sometime .between 10 a.m. and 3 p.m. I swear positively that W. Lawson now in Court was the man who sold me the gold on the 18th September. I asked the name twice and he demured, then gave me " Mark " Kumara. Fraher was within three yards. As soon as the man went out Fraher came to mo and said that man's name is not Mark that is W. Lawson of Kumara. I did not take any further notice of the incident just then. When he came in on the 19th Septcm ber, I said " Good day Mr Mark " purposely, because of the conversation of tho previous day with Fraher. I saw no necessity for addressing him as Mr Lawson as the name was nothing to me. I don't remember asking him did he came from the Blackball. I swear positively I made a remark about buying gold for £3 18s one day and selling it for £4 next day. Do not remember Lawson's reply. Fraher was present on-the second day. The case was here adjourned for ten minutes.

On the court resuming, John Fraher, called, said I am clerk in the Union Bank at Greymouth. I know both G. and W. Lawson for about ten years. They were formerly residents of Grey-

mouth. T am a native of Greymouth, and have lived there all my me. I remember W. Lawson selling a parcel of gold in the bank at Greymouth to Sir Wi rd, the acconntant, on a day in September, and recollect the saint man buying some gold from Mr Ward the following day. 1 just went in to see what was doing by Mr Ward and left. I did not hear him give the name of Mark, but immediately after saw it in the book. In consequence of seeing that entry I made a remark to Mr Ward. The following day I saw W. Lawson, I did not take any notice of tlie conversation, but saw Lawson buying a small parcel of gold, saw the name Mark entered for that tansaction also. Have no doubt that AY. Lawson is the man "Mark."

By Mr Guinness : I do not know how long Lawson*s lived in Greymouth. I ! have seen them at race meeting and other places. I know both Lawson's christian names, and identify both accused. I was behind the ledger desk in the bank on the day in question, and could not be seen but by standing on the step. I swear W. Lawson is the man that came into the bank on both occasions If five or six men came in and swore that W. Lawson was not in Greymouth, I would not care, I would still swear he was. Ido not know what clothes Lawson wore on the date. He must have seen me when I went around the counter to see what was going on. lam studying gold buying, and that is the reason 1 went around to see what Mr Ward was doing when W. Lawson sold the gold. William John M'llroy, sworn, said : I am a storekeeper at Kumara. I know the three accused. I know Pring is halfbrother to the Lawsons and my wife is Pring's sister. I have been pretty f riendly with accused. Mr Byrne and myself went over and were shown over Foley's Creek claim by G. and W. Lawson. He subsequently took an interest in the ground and subscribed for contributing shares. Later on Mr G. Lawson accompanied Byrne and myself to Foley's Extended. After looking at the claim we came to the conclusion it Avas a good one and we agreed to take it up on the condition that Byrne and I should pay the expenses, and the Lawsons with us should share equally in the property. I recollect some prospecting being done by G. Lawson and Pring and another man. The result was satisfactory and the gold was handed to me. There were two lots from two shafts. G. Lawson handed me the gold on both occasions. Pring was present on one occasion, but cannot remember about the second time. Cannot remember the amount of gold, but it went 18grs to the yard according to the amount put through by Lawsons. The gold came from the prospecting Lawsons were sent to do. Ido not remember the signing of the option. One party had the option of taking up 1300 contributing shares, but before doing so resolved to have more prospecting. Tansey had most of the interviews with Lawson. I understood they objected to pay any of the expenses. The arrangments was that our party were to pay half of expenses and the Company the other half of prospecting. Eemember Pring coming to my place one night. Pring said W. Lawson engaged him in Greymouth to assist in prospecting. Pring was displeased when he learned that Carlsson was to be in charge. Ho said W Lawson had engaged him to take charge. Pring eventually agreed with Tansey to go out. It was the evening of the 19th September. They were to go out on Thursday 21st but it being wet they did not go till 22nd. On Saturday Carlsson handed me the gold, Pring being present. I weighed it and gave it to Tansey. It was said to have come from § yard of dirt, mostly from bottom. It was about 2dwts. Carlson had to go to Bell Hill. A second shaft was sunk by Bodgers, Pring and Dunshea. Pring knocked oil; before the tinal result was known. He told me nothing about the second shaft. The gold from it was 1 dwt, and handed to me by Kodgers. Eemember Tansey paying Pring in my office the nigct before he went away.

Pring made a remark that lie was promised some shares. He did not mention by whom, hut I am satisfied lie 1 eferred to Lawson Bros, and the company in which lie was to get the shares was Foley's Creek Company, and not Foley's Extended. He did not say paid up or contributing. Adjourned till 2 p.m.