INQUIRY

Hokitika Guardian, 16 May 1931, Page 2

INQUIRY

UNUSUAL FEATURES. (By Telegraph—Per Press Association) AVELLINGTON, May 15. At the coronial inquiry into the fire at Birkett and Sons Garage, on Tiiorndon Quay on April 20th, one witness, James Frederick CowtoM, said that lie had screwed off the caps of the petrol tanks of the cars storey in the garage, alter the fire to get petrol, because the bowser was out of action. William Birkett, Afanaging Director of Birkett and Sons, in evidence, said that as far as lie- knew, the books were a correct record of his financial transactions. On the day of the fire he was in Auckland with his son. He contended that there was practically no difficulty in getting practically any amount of insurance on any car as long as one paid the premium. The new Company, which was to take over the business in the. near future was to take over second-hand cars stored in the garage at the time of the fire. Witness personally was not to get any cash out of the sale of the business to the new Company. It was merely a ca s e of new capital being put intr the business. WELLINGTON, Ala.v 15.

The proceedings at the inquest regarding the Birkett’ 9 Garage Fire opened rather sensationally to-day when Mr Mazengarb, counsel for Birkett and Sons, said that be did not Intend to justify what ho described ns a" Improper practice of the firm hi con nectlon with their dealing with fin nnee corporations. Sometimes consciously anfj sometimes unconscious]v. Birkett and Sons hod inflated tinsale price of cars -with the object of obtaining greater financial assistance than thev were' entitled to. He said “Some of the exnlnnations they hnv given to mo for this pr.netme are o">l< reasonable. Others are wlmt I ni'<'ht term as of a specious ivnr: while others cannot see any reason in it. «' all.” He had he*n U'M that in order to make a. deal or assist in a sale, the salesman sown tunes <l'd inflate the selling price of a c°r. but it wag a commercial practice that could not. he too highly condemned. All he could say was that it was on the sajme basis as some other practices which came before the Courts at times', and were severely condemned by the Court, although it was well known that such practices did exist.’’ ;

THE FIRM’S LOSSES

AVELLINGTON. Afav ]5

At the Birkett’s fire inquire, William Edward Turnbull, Secretary to the Company, gave evidence that lie was at the garage on the night of th> at 10 o’». He "received word at his house at Island Bay that the house was afire. He ?or out of bed to come in, He admitted over-valuation of ears, but denied there was any intent to defraud Eighty per cent, of the firms, he said, overvalued.

The witness was closely questioned concerning earlier losses of a car and truck by fire after going over banks He said a new co w niny was bein'-' formed, Birkett and Sons to receive 5,000 fully paid shares in'a £IO.OOO company. Birkett was .to get £I,OOO a year. The firm’s losses from November, 1929. to August, 1930, were £2.651, end from September, 1930, to February, .1931, £706. The Coroner said he would endeavour to give- his finding within seven days.