SUPREME COURT.

Hokitika Guardian, 26 June 1922, Page 4

SUPREME COURT.

SITTING At HOKITIKA

SATURDAY, JUNE 24th

(Before His Honour Mr Justice Adams)

(Continued.) CLAIM FOR £l2O. pine Mills Cov Ltd. in liquidation. (Mr Sargent), with him Mr Pilkington) v. R. and T. Orr (Air Park, with him Afr Murdoch), a claim for £l2O for timber supplied. Defendants set-off the amount against amount due bv the Company. Mr Sargent stated that the debt alleged to he owing was due to the Liquidator of the Company, while the set-off hv the defendants was an account against the Company itself. His Honor said if the goods were sold after the liquidation of the Company and the set off was a claim for workdone previously then he would liace to be satisfied as to the liability of the] Liquidator. Evidence was led as follows: — 1 Percy Norman Quartei-main deposed he was appointed secretary of the Pine Mills Ltd. in Oct. 1921. Prior to that bad no management of the Company. Prior to October there was a. claim for cartage by Orr Bros. That firm continued to cart timber for the Company. On Dec. 2nd. 1921 visited Hokitika and inspected the mill. The Company was in a difficult financial position. Saw one of Orr Bros who spoke to witness about the overdue account, told him he was unable to pay him but that they wanted further carting done. Naturally Orr did not want to cli) any cartage without being paid for it and tlicrfore promised an order on the purchasers of the timber. On Dee. Bth. sold the timber lo AVild and Robertson of Greymontli. j On 9th Dee. received a telegram from Orr Bros ‘‘No timber carted unless (irdor for payment and cheque for overdue account.” Witness advised Orr Bros that order was being sent by mail. Further telegrams passed, one stating “Order received carting now. Orr Bros.”

The agreement to go into liquidation was made at a. meeting on Dec. 12th., and was signer! by all the members of the Company. Charles Johansen was supervising the interests of the fompanv in Hokitika and had no authority to sell any timber. Witness came to Hokitika on Dec. lslh and was interviewing the wages men that night, who were owed a considerable sum hv the central-tor. That evening Afr Orr i ami' in and he told Mr Orr that the Company had gone into liquidation, iiiid that his account would have to

run for dividends. Orr said that was pretty hard on him and witness agreed it, was. The following morning, in

Company with Air Streeter (a fornior shareholder), went round to Orr Bros, carage and discovered a truck load ol timber. Orr "as taken unawares and could not reply, and after lie got over the shock of-meeting witness he said everything was all right. Witness gave Orr till tiiifl-dav to put the timber

on the -kills. Went to the Pine Mills properly in the affermion and Johansen was there. Haw,Robert Orr there. Several thousand feet, of Pine Alills timber "ere in Thomson's drive, .which is just opposite the Pine A'.Mis. Streeter, Johansen, witness and Frank Orr were present. Orr said tlie timber had

been purchased. Witness said no one lilt the liquidator could sell the tiniher. Asked him at "hat price it had been sold and Orr could lid say. Witness sii'oi-estcd a number of prices and

win*n witness mentioned I*s*. t)?T s*' l *d yes. Witness s.'iiil to Orr: \on will liny it from mo at 15s.- 5-iiil >sor|in*nll v :iv<■ an order lor ili’liviTv ol 11 >.(■►' If I • ‘if I in,liar at 15s. On the l()t!i .liiiimuy received a statement fnmi Orr Urns Setting l ; nil' the liiaher sold £12(1 as a set-nil against (heir aei'nint for. outage. AVitness nnt'fnnl that his timber einhl not he put down as- a set-oil. :>s it was sold after the Company had {rone iiit*» lifpiitlal ion. :>m! f‘>:* ]Kivment. To .Mr Alnrdm h. A\ as in IT<>e.itikn on 2nd and 3rd December. At that time sent Mr On; a letter promising a ehei|Ue. hid he did lint get the <'hei|lle. On tilth Xnv. 1921 wrote promising a eheipie for £BS Is (id. on tlie I nesdav follow intr. lint it wfis not paid. On 2nd or 3rd December ho promised to send an order on timber to ho sold to Wild and Robertson. Air W. Williamson was chairman of Directors. Mr R. Wliiley was general manager np to the date of liitnidation. lie swore he did not call Orr a thief in respect to this timber.

To Mr Sargent.—Witness had no interest in the Company beyond being secretary or liquidator. The liabilities amount to £2833 and the assets CURIO, which will not realise £SOO.

Charles Johansen deposed on 20th September 1921 he was employed by the Pine Mils Ltd. to represent the Company’s interest. Had no authority to sell timber. On 1-ltli Doe. Afr Orr asked for authority to cart timber to his own skids in Hokitika. To enable the mill skids to he cleared he signed the note and for that reason only. Was at Thomson’s gale on the 10th Dec. Saw some timber in Thomson’s. It had been shifted late on the previous night. He had missed this timber from the skids. Saw Orr inside the gate. Qunrtermain asked Orr what the timber was worth. Orr said about 15s and Quarterniniii said you can have it at (bat. Did not hear Orr answer. To Air Alurdoeli.—Cochrane was yard man at the mill, what he did was nothin<£ to do with witness. This was the ease for the plaintiff.