Quarterly Dividends Case to be Retried

Sun (Auckland), Volume III, Issue 822, 16 November 1929, Page 6

Quarterly Dividends Case to be Retried

JURY DISAGREES ALLEGATIONS OF FRAUD INVERCARGILL. Friday. The jury having disagreed a new trial has been ordered of David Neilson Johnston on charges of false pretences arising from the activities of Quarterly Dividends. Ltd., and National House Purchase, Ltd. Accused, who pleaded not guilty, i was represented by Mr. C. J. 1.. White, | of Dunedin. Accused said lie was a married man j with two children, living - at Dunedin. I He had served in the South African j War and the Great War, and as a re- j suit of ill-health had had to give up his work as a trained masseur and take j up the occupation of selling Bibles. The ' financial scheme had been brought to ' his notice by a member of the organi- i sations, but he had waited until the! visit of the promoter. William Taver- ! ncr, to New Zealand. He slid believed in the scheme. Further evidence was called for the defence, after which Mr. White, conn- | sel for accused, in addressing the court said he would emphasise the fact that this scheme had been in operation since 1920 under the very noses of the financial experts of the world, yet this was the first criminal proceeding in connection with it. The question before the jury was not as to Lhe soundness or otherwise of the companies, but whether defendant was I h criminal. Before the jury could find that, they j had to be satisfied on the four following points:—That accused had made I definite and unequivocal representa- ! tions as to an existing or past state- | rnent of fact, future promise not being sufficient. That the representations, if made, were false. That the accused, by making such statements, intended permanently to deprive people of their money. That the statements, if made, were false. Mr. Macalister emphasised that the root and branch of the defence rested upon the assertion that accused was not aware that his representations were false. The judge, in summing up, asked the jury to banish from their minds anything they might have heard prior to the hearing. lie said accused was entitled to a verdict upon the evidence ; heard in that court. It was requisite ! that, the following three essential in- • gredients of the crime must be proved beyond all reasonable doubt; —First, ihat there was an intention to dc- ! fraud; secondly, that there was in fact j false pretence; and, thirdly, that, i money was obtained by means of such 1 false pretence. The jury retired at *1.55 p.m.. and re- | I timed at 9.10 p.m., when the fore- | man announced that they were unable i Lo agree on any of the six counts. I