HUNTER ESTATE

Hawke's Bay Herald-Tribune, Issue 141, 2 July 1937, Page 5

HUNTER ESTATE

■Press Aflsoclatipn.)

Action by Wido;w Against Trustees FURTHER EVIDENCE

IBy Teleer»»b-

WELLINGTON, Last Night. Cress-examination of Lady Hunter, was hegun in the Supreme Court to-day, which was the start on the third week of the action in which she seeks the removal of Cyril Paul Hunter, of Akitio, and Thomas Percy Hunter, of Porangahau, from the tnisteeship of the estate of her late husband, Sir Georga Hunter, Her allegations of mismanagement are denied by the trustees. 1 Mr. Justice Smith ia presiding over the hearing, in which Mr. J. D. Willis .and Mr. R. R. Scott are appearing for, the plaintiff, and Mr. C. H. Weston, K.C., and Mt. J. H. Dunn for the defendants. Continuing to-day, Lady Hunter said that when she refused to sign the. probate papers of the will in 1930 she was threatened by the trustees and their. solioitor that they would xun the estate so that she would not get a penny from , it. When she threatened to. xeport the conversation they said they were moro in numbera and ahe would never be believed. Mr. Gyril Hunter showed her. a clause in the will absolving the trustees from losses on the station and said that they could 'rain her with it. That conversation took place in, Bethnen and Hunter 's building. In 1932 she diseussed the financing of the estate with the trustees and they said that they would keep her without the balancesheets for so long that whla she did get them she would not be able to .alford to have them checked. Subseqnently, in Deeember, 1932, she went to. Dannevirke to see Mr. Cyril Hunter to discuss his stopping of her maintenance reeeived under a Court order. She appealed to him to restore the mainteii-. ance and he replied that he could andi would legally starve her ont and that, she could take her legal redress. Sir George duxing his lifetime took. continual steps to keep back the scrab on the property, continued Lady Hunter. During his illness Mr. Percy Hunter snpervised the ranning of the estate, and he would now have had praetically eight years' experience of. it. After Sir George died, said Lady Hunter, she occupied the Dixon street property for nearly 2J years, and in 1932 she was being charged for the use of the place on the basis of £15 a week, which was the rental value arrived at. by a Wellington firm of valuers. The. maia building was now let at £7 a week, rising to £8 a week. When she was in occupation the premisea were never offered to her at a lesser sum than the £15 a week plus rates and taxes, with: which she was debit'ed. The rates on. the property were £159 in 1935-36 and. £169 in 1936-37. The Government valu*; ation was £8500. Ability as a Farmer. ! In eross-examination by Mr. Weston Lady Hunter said she had agreed to give her daughter Betty one-ninth or one-tenth of any income derived fromthe estate when she was 19, and one-. half when she was 21, providing she. (the witness) remained unmarried. Lady Hunter said she was continuallyi on the station after Sir George's death.: She would not admit that Sir George,' was; a poor farmer. He carried out Ms own ideas and was successful according to their joint needa She did not criti--cise his methods while he was well, but' did so when was ill. ' "I must concede that Sir George was. not a good farmer," interrupted Mr,i Willis, when Mr, Weston pursued hisi line of questioning. "I would agree to that, too," addedj Lady Hunter, "but I never criticised Sir George in his lifetime'j" His meth"*ods were successful for his own requirements, she added in reply to further questioning. Defence Opens. b Mr, Weston, K.C., in opening the defence, said Sir George died on August 20, 1930, leaving certain assets. The sheep station was valued at £83,598, tho stock at £15,604, the Customhouse Quay; property at £10,300, the Dixon street property at £8960, shares in companies at £3,963 and mortgages at £10,806. The 1 liabilitiea were death duties and debts £34,168, overdue mortgages on the Dixon street property '£11,050 and legacies £6,600. The total liabilities were £51,818. The death duties were subsequently inereased and in addition there were testamentaTy expenses and annuities under the will. .The only liquid assets wero shares and stock which had to be retained for station purposes. On the other hand the liabilities were all papyable on demand. As a result of Htigation legal expenses totalling £6000 ;had been incurred. Mr. Weston said the estate was ineolvent in Jujie, 1932, because it could not,meet its debts as they became due. With the insolvent estate caution was the -watchword. The question might well bei 'asked: In August, 1932, was it possible, 'then to pledge the stock to buy more ! stock, to da the riecessary fpncing pr to lcut the shrub? He submitted that the janswer was "legally, no," and in actual jpractice no, because the Coniinissioner of Stamp Duties had a charge on the wliole estate for fieath duties which were not paid until 1934. In June, 1934, oue trustees raised £oU,l)U0 with. which were paid the death duties, some of the testamentary expenses, dehts, legacieg and arrears qf annuities. He submitted that until the debts, legacies and adjninistration expenses and accounts had been paid up to date the estate conld qnjy be Jooked at in thq ligfit of the cash availablg, The case meant piQre than a mere few thousand pounds to the defendauts, Their good name throughout the country had been besmirehed and they were here to clear themselves, They had treated Lady Hunter with tlie ulinost fairness and •justice and so iar froui having any eause for cemjilaiitt at all the gratitude k *

was on her side, or shopld be. "No est man, added Mr. W,eston, would spent more money oft the property than had been spent. If trustees had doaft more than they did they would have been guilty of unbusinesslike condfefc which, of courge, would nqt have bfitp, fair to the ereditors. Mr. Weston will conclude jhis addreep to-morrow morning. _ , y