WESTLAND SUPREME COURT.

Hokitika Guardian, 20 March 1922, Page 3

WESTLAND SUPREME COURT.

SITTINGS AT HOKITIKA

AIONDAY, MARCH 20th

(Before His Honour Mr Justice Adams)

His Honour took his seat at 11 o’clock.

The common jury were called and sworn. Messrs G. Davidson (fireman), and J. Forsyth were excused attendance.

Mr J. Park (Crown Prosecutor) extended on behalf of the bar, a (hearty welcome to Westland. He hoped at a future occasion, when the weather conditions were more favorable to show him some of the beauties of the district. They had in the past, had a mini her of illustrious Judges, and he trusted that His Honour would add to the high traditions of the past. He extended the heartiest of welcomes and assured him of the hearty co-operation of the Bar. He also extended a welcome to All's .Adams and hoped tlic-ir stay would be a pleasant one. His Honor thanked them for the kindly welcome. Ho had looked forward to coming to Westland for some time. He had met Air Park and had been associated with him in his student days. He had taken his seat on the Bench fully recognising the high standard of efficiency that was needed. The Supreme Court Bench had a very high standard. He hoped that he would he able to assist them in the facilitating of business. He hoped on his next visit to Hokitika he would be able to see some of the scenic resorts for which the district was famed. CLAIM FOR £‘<lß.

J. 11. Wilson v. Diggers Sawmill Company and James I). Lynch, claim for L' ICS for a dishonoured promissory note. .Mr Park for the respondent, said that the Diggers Sawmill Company had made a settlement, satisfactory to the plaintiff. M.r Hannan, for Mr Lynch, said that this was the first intimation lie had of a settlement. Air Park’s intimation had b(i?n the first he had had heard oi a settlement. His Honour said if a settlement had been made by arrangement, then that would end the suit. Mr Hannan said that no settlement as far as his iiioiil was concerned was made, and ho asked for costs. Air Park said the suit was for a dishonoured promissory note, and they had sued both parties. Air Hannan said it was an extraordinary position. -Mr Lynch, as an endorser of the document, was entitled to go on, and desired to do'so. Air Park said the settlement came through the parties, and not through the solicitors. Air Hannan asked " judgment foi the defendant, Air Lynch. It was the endorser who had paid. His Honour said it was for Mr Park to show that the defendant- was not cut it led to go on. Air Park said lie did not think he could do this. If they went on with the case the whole proceedings would have to gone on with. The Diggers Company had agreed to pay their own costs. His Honour said the position was quite a novel one. He thought the case should stand down till after the next case was dealt with. Alartha Allison v. Diggers Sawmill Company, a claim for £iPB, for a dishunouied promissory note. Air Joyce, for plaintiff; Mr Park, with him Air Murdoch for the defendants.

The following jury of four were selected William F. Shannon, G. E. Raitte, Joliii Knowles ami .James Alex. King i foreman).

Mr Joyce challenged William Smith. The remaining jurors were disharged from further attendance.

Mr Joyce, in opening the case i said this was hv Martha Alison, of Greyi: mill, a gains! tlie Diggers’ Sawmill

(• ■v, CKO. He outlined the case and called evidence. Martha Ellen Alison, wife of R. Ah son, of Groymoul.h, deposed at the request of her husband, she loaned Mr Lvneh LSOO in April 1921. That Mr Lynch was to give it hack at the end if the month. Her husband acted for her. Did not receive the money. Dressed every month lor payment. Leeeived throe months’ interest in July. In August Mr Lynch gave a p.n. on the Diggers’ Sawmill Coy for 1100. H° also gave p.n.’s on Mr Morgan up to £IOO. One of .Morgan’s p.n.’s have been paid for 12.). Ihe not • loi LU) (produced) was the one she received. 0 LT/!(j dess £2O) was still due to

To Mr Park—She received the p.n. | from her husband, who said the Dig- jgers would pay the £IOO and Mr Moi- j gan the LIOO. She could not, say why ; six* did not plerent the note on its due j date. Her husband held the note on j h or behalf. Had no conversation with j Mr Stoop over the bill. She left all ; details to her husband who did not till j I er Mr Lynch was also liable for the | bill. S! v* asked her husband to press | Mr Lynch for payout of her advance. To Mr Joyce—She thought her husband brought tlie hill to her in August. She understood the Diggers and Alrjj Morgan would pay the 1500 due. | Edward Thomas Stoop deposed lie was secretary of the Diggers’ .Sawmilling Company. He produced the documents , of incorporation, articles of association, >, and list of shareholders. The directors jj are Andrew Wells, Henry Wells, Rob-j ert Stuart, William R. Royd, Edward j Thomas Stoop. Tlie latter was also* secretary. He produced the rubber ; stamp used for signing on documents j ” Diggers Sawmilling Company, j Cheques and promissory notes were on- , dorsod with this seal. The p/u P™-| duoed was issued by the Diggers Saw- j milling Company. There was no minute j authorising anyone to give that pionnssorv note. In this ease he held a p/n • signed by one director and he mace i • , out and signed it Himself. The other , directors looked to him to arrange the financial part of the business. He kneu : the p/n has not been paid. To Mr Murdoch —He had been secre- ! tarv to the defendant company for about two years. The company was composed of returned soldiers. He had been m ! tlie employ of J. D. Lynch for about < ! years, joining about ten years ago and j having a break of three years. He gave I the bill at the request of Mr Lynch and Mr Rose, his accountant in Mr Lynch's i office while witness' was in his employ. 1 'j’ho eircumrtfuioes \\m HUH tlio fills

flendant company were selling their timber to Lynch. If the Diggers had a large amount of timber ready for shipJ inent they applied to Lynch. Previousily they had received advances by cheque. On this occasion they had a lot of timber cut. Mr Lynch said he could not pay in advance. Til this ease the timber was cut to Lynch’s order and on the skids, and sold to him, and according to sizes ordered. On this occasion witness took the extraordinary course of accepting a p/n at two months in payment of this timber. This was to assist Mr Lynch, and at Air Lynch’s rcqest. Yv’itness was shipping clerk in A! r Lvneh’s office. At.the request of Air Lynch witness gave him the p/n that forms the basis of this action. Mr Lynch asked the Digger Company for a p/n to hold as security, and this p/n was given as a security and not for the payment of any debt or trading account. Air Lynch promised that the firm would bold the p/n and not part with it. The p/u was never entered in the Company’s kooks.', He had seen similar action taken in -Mark Sprot and Co.’s office before. He gave the p/n to Mr Lynch on receiving his undertaking not to part with it. The p/n that Mr Lynch gave ilny discounted with Al.r Wilson, hut it was dishonoured, and that formed the subject of the previous case, which the Diggers had settled. Air Alison was formerly manager of the Tynesidf; mine, and lias been employed by Air Lynch ill managing direclor oi the Dobson mum as manager. Know Air Alison has lieieu a personal friend of -Mr Lynch for a long time. After the bill was signed, and the timber went through and Air Lynch was paid for it, witness made enquiries of the p/n from Mr Lynch. Asked him if ho was still the holder of it, and if witness had any rlmmc of getting it. Witness had arrange ! that Lynch was to hold it, but subsequent events Lad led him to think ib might have been parted- with. Lynch replied that it was quite all right and that it would Ire debited hack’ in his hooks to the Company. Spoke to him twice about the Hill. The second time v-as about (ith or 7th October. Asked Lynch if he was going to debit it hack. Lynch said it was quite in order, he had the p/n, and it would he debited hn<k on the due date. Lynch said lie was the hold •!• of the hill and the ledger would show this. The ledger did this. He did not say he had negotiated the kill with Alison or anyone, till after it was due. Four or five days alter the bill was due, on enquiring, Lynch told witness that lie had parted with the bill Had, a conversation wit'll Mr Alison about the hill a day or two after the hill was due. Alison came into Lynch’s office ami enquired when the Diggers would Ho making a shipment. AYR ness told him at tIL time, and asked why he (Alison.i wanted to know. Alison' then told witness that lie was holding a p/n signed by the Digger Company. He knew that Alison at tns time was owing Lynch about Wl . Asked Alison where he got the p/n, am lie stated Air Lynch had given H to him Asked wl.v he had no* presented it Alison replied he had not done so because Lynch had instructed him not to do so because the Diggers C ompany were not able to pay it. Ask'd Alison if he knew the <ii rumstaiices ol the oiviim of the bill, and he said he did n„t, so witness gave him the details, and told him to see Lynch about it as Ihe Diggers Company a/e was in ei'edit about ’{MOO in Lynch’s locks. Is aware Mr Lvncii has assigned ! s; csL..e J (; trustees. This was about three weeks after the con versa cion wirii Alison. Told Alison he would see Lynch about Hte p/n and told Alison also to s.r Lynch. He said he would as soon as possible. A day or two afterwards saw Lynch, ami asked lmw Alison came hold the p/n.

afternoon sitting. The Court resumed at 2 p.m. E. J. Stoop continued—Air Lynch (c----plied when witness saw him that there, was no need to worry as he would pay. Lynch told him that Alison had not presented the p.m, and was not going to do so. If he dared to, he would sack Alison as manager of Dobson mine. This conversation took place in Macka.s Street about a week alter the due date of the Tull. Saw Alison in Lynch’s office and asked him how lie got on with Lynch. Mr Alison said he had seen Lynch and he was going to fix n with him (Alison). Alison said there was no need to worry as far as the Diggers Coy., was concerned as he w.i ;i looking to Lynch. Alison did not appear to doubt what witness had said. He said lie had found out that Witness’s previous statements about the p.n. were correct. He took it that Alison had spoken to Lynch and Lynch had endorsed his statement of the p.n. Since the hill was presented amd dishonored he had informed some of the -directors, hut not all of them. His directors considered that he should not have given the p.n. He only informed •them afterwards. Alison never mentioned hi s wife to witness until Alison told witness that he intended to push the Diggers Coy. That was about December sth. Up till then Alison led witness to believe -nat he was the holder of the bill. Lynch also led him t„ believe that Air Alison was the bolder of the hill. In Mark Sprot and , Co’s books the bill is debited to J 1). Lynch.

Mr Joyce held that Air Lynch’s books could not be put in by the witness. His Honour said even if the blocks were not evidence, there was no reason why the books should not be produced to prove ,n link in a claim of fraud. The hook must be produced. Witness continued.—The book produced was Mark Sprot and Co’s and writing in it by Aliss Winchester the firms book-keeper. The book bears out that on August 20th., 1921, there was an entry in J. D. Lynch’s account. To p.n. Diggers Sawmill Coy., due 11/10/21 Clno.

A passage took place between M*' Joyce and Air Murdoch as to a Statement by Mr Alison, which Air Murdoch repeated and Air Joyce took exception to. To Mr Joyce.—He had been employed by the firm for several years and had access to the books for the last four or five years. Mr Murdoch objected to the course taken by Mr Joyce in re-examination, which his Honour upheld. Witness continued. —Witness had stated lie gavel tlie bill as security. Mr Lynch used to advance money on timber to pay wages etc. In the case of Hip p.n. Mr Lynch asked for It und witness did not give it willingly, Wittold Lynch that. there was nn

necessity for it. Gave the p.n. by way of security as against) the delivery of the timber: It was a case of trusting Air Lynch to do the right thing. Mr Lynch gave an understanding that he was no going to use it. In connection with timber this was the onl\ p.n the Diggers gave Air Lynch. Lynch pointed out the p.n. was debited to him (Lynch) in the hooks. To his Honor.—He thought lie knew a little about books, hut he had learnt a lot lately. ' (Left Sitting.)