ORDERED TO ACCOUNT

Hokitika Guardian, 31 March 1930, Page 7

ORDERED TO ACCOUNT

PROFITS ON SALE OF MOTOR-CAR. AUCKLAND, March 27. Mr Justice Ostler told a witness at tlie Supreme Court this morning that his defence of transactions in which he was involved in a dual capacity, as a, private owner and as manager of a city firm of money-lenders, would not be accepted in any Court of law. The case was one in which lira Beatrice Wills (Mr Quartley) proceeded against the Equitable Loan and Finance Co., Ltd., money lenders (Mi Simpson) to obtain a statement of accounts and interest arising out of the transfer of a motor-car in October 1927. Harry Jacobs, the manager of the defendant company, said in his evid-. ence that the company was a family affair and the record produced in Court showed that private accounts were not kept entirely separate from the company accounts.

In July, 1927, it was stated by Mr Quarterly, the plaintiff mortgaged a car with the defendants, and in October the defendants sold the car, re, fusing the account for the proceeds. Evidence that the sale was made for £lB5 tvas given by the purchaser, Edith May M’Cor mack, who said she bought the car at Chedwidden’s auction rooms. Numerous small repairs were afterwards necessary. “I think that applies to most motorcars,” commented his Honor with a smile. Harry Jacobs, manager of the defendant company, said the company had a mortgage over the car and the plaintiff was paying £7 10s a month by way of interest and reduction of the purchase price. The car was seized at the police station after Mrs Wills had been arrested in connection with the Skinner burglary charges. She had told witness it was no further use to her. Certain parts w«re- missing. When the car was sold by auction in August 1927, witness bought it in his personal capacity and gave instruction later, for its• resale,, for ‘which. he : received; a cheque for £167 (after £lB auctioneer’scommission had been;, deducted). The profit from the transaction and for the sal.e of another car,,£97 Bs, lie divided equally between ‘hist-.wife . and his mother. ~. v. ■ ■ - His Honour .asked witness how he accounted for banking with the company the cheque of £167 which, be said, .was his private property. . ' y.. Witness, who hesitated to reply, said surplus moneys were at times paid into the company. It was really a family company. ; >

His Honour. You enter your private cash in the. company’s record and expect the Court to believe that you pav it into your current account? Pooh! I would not believe it. Do you think the Court is a fool?

An order was made for the defendant company to account to the registrar for the profits on the October sale and also for the payment of the profits, with interest 'a- 6 per cent., to the plaintiff. His Honour added that, if necessary, he would rule that the case was a proper one for trial in the Supreme O.md and not in the Magistrate’s Court.