LADY HUNTER GIVES EVIDENCE

Hawke's Bay Herald-Tribune, Issue 140, 30 June 1937, Page 5

LADY HUNTER GIVES EVIDENCE

■Fre»« AMOoiation.)

Action Against Trustees of Husband's Estate VALUES 0F PROPERTY

(JBy Telegraph-

WELLINGTON This Day. Entering the witness-box late yesterday afternoon, Lady Hunter gave evidence on her own behalf in the Suprema Oourt at Wellington in the case in which ehe is seekihg the removal of the trustees of thd estate of her late husbahd, Sir George Hunter, Defendauts are Cyril Paul Hunter, Akitio, and Thomas Percy Hunter, Porangahau, nephews of Sir George. Mr Justice Smith is presiding. MrJ. D. Willia and Mr R. R. Scott are uppearing for plaintiff, and Mr 0, H. Weston, R.O., and Mr J. H, Duun for defendants. When the court resumed in the morning further evidence as to the condition of skins and wool from the Hunter estate was given. \Vitnesses were John Erksine Duncan, assistant in live stock husbandry in the Department of Agriculture ; Charles Leonard Hughes, New Zealand manager of the wpol department of WilJiam Haughton and Company; and James Joseph Bourke, ' managing director of J. J. Bourke and Co., Ltd., Lower Hutt. An inspection which he had made in April last of the Dixon street property of the Sir George Hunter estate, known as Harlington House, was described by John Gordon Harcourt. The house, he said, contained 19 rooms, including baches. There was a large garag/e two tennis courts, and a swimming pooi. It was a particularly well-ap pointed place. He considered it had a rental value of £12 a week. A reasonable rental in October last year would have been £11 a week, The tennis courts and baches should bring in substantial revenue — more than suificient to pay for the upkeep of the grounds. If told that the property was let for £7 10/- a week in Octoher last he would say it was let for less than it should have been. Cross-examined by Mr Weston, witness said that the huilding as it stood was not suitable for flats. Alfred George East, land agent, said that Harlington House was about five minutes' walk from Perrett's Corner. Properties in the vicinity were in ready demand as apartment houses. The accommodation prohlem in the city was acute. He assessed the rental value of Harlington House in October last at £572 per annum. Lady Hunter 's Evidence. Lady Hunter said that under Sir George 's will all the personal ehattels were given to her, and she took the net income of the estate until her remarriage, it being then reducdble to £1500 per annum. It was accordingly an important matter to her personally that the estate should be managed in a coinpetent manner. In 1931 she voluntarily entered ihto a deed of arrangement whereby she covenante.d to pay her daughter Betty certain moneys. Mr L. Cowan managed the . estate at Porangahau, together with Mr Percy Hunter as supervisor. Both trustees paid an equal part in the management of the estate, but Mr Percy Hunter lived within within about a mile and would have a more intimate day-to-day knowledge of the conduot of the station. The other . trustee lived within about 40 miles. The estate was eventually assessed at £124,046, from which, later, had to be deducted death dutie® and costs of litigation. The balance-sheet for the year ended Jnne, 1936, showed the capital value as £71,391^ from which had to be deducted accumulated losses of £7514. Land and income tax amounting to £3458 had to be deducted also. That left in round figures £60,000. At the date of Sir George 's death the amount of cash in hand was about £5000. The station and the Customhouse Quay property were unmortgaged, but there was about £11,050 owing in respeet of tho Dixon street property as unpaid purehase money. Lady Hunter said that at the date of the last balqnce-sheet, June 30, 1936, there were sundry creditors of £1676 and aunuitants £5800. The taxation in round ligures was £3500, and the availahle cash was only £1597. Sir George died in August, 1930, and it was not until five years later that she received the estate accounts. Until she received them she was not in a position to go into the management of the estate. For the fi'rst two and a half years after Sir George's death) she received no morfey from the estate at all. She lived by selling her furniture. Finally she made application to the court under the Family Protection Act, and in June, 1932, an order was made for £7 13/- a week. The order still continued. That was all the money she received from the estate, and it was charged against her. She was debited with that sum as far as future income was concerned, and the trustees had. debited her with the running losses on the estate. Wished to Live at Homesteaa Tlie will, continued Lady Hunter, made no specific provision for her to live in the homestead at Porangahau. 1 After Sir George's death, when she was financially embari'assed, she applied to the trustees for permission to live in the homestead. She asked even for a workman's cottage, but they said she was not allowed anything under the will, only the income, and that she would not get. "If I had been allowed to live in the homestead," continued Lady Hunter, "I would have been able to look after it I offered a proposition to run a nursing bome in it. In June, 1936, I received the balance for the year ended that month, and alter exaniining it and the previous five years' accounts I came to the conclusion that I had sufficient justification for a complete investigatian. I took advice last year, and it was as a result pf that advice that I received reports from farm experts." Lady Hunter said that since her husband's death she had visited the pro-t perty althougb she had not lived on it. She went to tbe station in December, 1936, and was there at various periods in Jauuary, February and

Marcli, 1937, to investigate the whole position and to be able to interview the valuers and experts whom she had employed, so as to get their candid opinion of the management. If the estate was financial and she had any money at all she would feel that Sutlierland and Marshall, two old hands on the station, could stay on for ever, but considering the position and the fact that she had never received a penny and that the men were not financially embarrassed it would seem justifiable to dispense with their services. To his Honour, Lady Hunter said she had asked the trustees to dispense with the services of the two men. Mr Sutherland received a legacy of £200 under Sir George's will and Mr Marshall received £300. The case is being continued to-day.