SUPREME COURT

Taranaki Daily News, Volume LIV, Issue 218, 13 March 1912, Page 7

SUPREME COURT

SEVENTH DAY'S SITTING. MATAKANA ISLAND CASE. The Matakana Island case, in which .M. C. Robison proceeded against Henry Sanson, jun., for specific performance of agreement to exchange, which has occupied the attention of the Supreme Court since last Friday morning, was advanced another stage yesterday. Mr. H. D. Bell, K.C., and Mr. Roy appeared for plaintiff, and Mr. R. Sperice for defendant. The cross-examination of the defendant was resumed by Mr. Bell. Referring to a previous admission by Sanson, counsel recalled how defendant's agent (Hodge) had in arranging for the exchange valued the residence on the Stratford property at £2500, and yet he himself (defendant) only valued it at £2OOO at' the outside. Did it not, he asked defendant, strike him that by asking £2500 he was bumping up the value. Defendant replied that he was surprised. Mr. Bell: But you did not ask Hodge to reduce that figure.

Defendant:, Because he said he had offered it to Robison at that figure ( £2500), and it would have to stand at that. Mr. Bell: You were satisfied? Defendant: Yes, but I thought it was too much.

Mr. Bell: You thought it was wrong, and yet you were content to do what shocks you, and what you think is wrong.

Defendant: I won't sav that, but I let it go at that figure, I'll admit.

Mr. Bell: Your son thought Matakr.-•-was not worth £1 an acre. What C'" you think? Defendant: I thought it was not •wori".i what I paid for It. Counsel: But that is not the-point. Defendant: Well,"I really don't know what I thought. I was that worried. I realised that I had been badly taken in, and I could not form any opinion of ita actual value.

Mr. Bell: Very well. If you thought the island was not worth £15,000, you would not surely seek to raise £IO,OOO on mortgage? You surely did not want to swindle the mortgagor. Defendant replied that he did not value the property, and if the mortgagor thought It was worth £15,000 well anu good. Witness added that if he could have borrowed £IO,OOO he would have "gone into it, whether it sunk him into grare." Mr. Bell: Then you thought, "It is the lender's money. I will take it if I can get it?" Mr. Bell suggested to Sanson that then it might possibly have occurred to him (defendant) that he himself might thus be engaged in an improper transaction.

Frank Bayly, recalled, said that in August last he was discussing the price of Matakana with F. Kemp, and both agreed that the owners were asking too much for it. Kemp had stated that if the property was placed in his hands at 20s or 25s an acre he might be able to find a buyer for it in the South Island.

Under cross-examination, witness admitted having himsejf last year been in a highly prohtable speculation. Wm. W. Hodge, land agent, residing at Stratford, deposed that he did not hear of the grassing covenant until after the sale had been arranged, when he was informed of it by Sanson. A BEDROOM EPISODE.

To Mr. Bell: He was acting for Saneon and in no sense for Robison. He had not pressed the property on defendant.

Mr. Bell (referring to the sojourn of the party on the island prior to the sale): "it has been stated that you insisted in sleeping in the same room as Sanson." <■

Witness: That is wrong. The boot is on the other foot.

Mr. Bell: What do you mean by that? Witness: Well, Mr. Sanson preferred my company to that of the others. At a later stage witness denied that he had shepherded defendant all the w-ay from Tauransa to Stratford. Sanson, he added, appeared to be very anxious to settle the matter up quickly, as he was afraid Robison might change his mind.

Mr. Bell: When (subsequently) Sanson said he had been robbed, did you understand that he was, putting you amongst "Ali Baba and the other thieves?" (Subdued laughter.) Witness replied in the negative. Mr. Bell: Then did he make you out to be an honest man and the others thieves?

Witness replied that he took Sanson to mean that.

Mr. Bell: Well did you agree thai the others were robbers? Witness: No. Mr. Bell: Do you now, sir? Witness: No!

Mr. Bell: Did you make any protest when he told you he had been robbed f Witness: I said that I considered it a straightforward sale, and that I didn't think there was any possible chance of him getting out of it. Witness added that subsequently ■he suggested -to defendant that the improvement clause might provide the necessary loophole. Witness denied, however, having said to Sanson, "Don't tell the Kemps or they will kill me."

Mr. Bell: But Mr. Sanson has sworn that you did.

Witness: Well, he is very economical With the truth. I said, "Don't tell Mr Spence that I told you." Further cross-questioned by Mr Bell witness said that a loan of £IOOOO had been ready in two places for Sanson on the Matakana Island property, sub. ject to valuation.

To Mr. Spence: Agents do as a rule keep m close touch with their clients and they don't like to lose sight of them during negotiations. Witness: Yes, sometimes. Mr. Spence: In pkin language Sanson f ? r } he 'P r °P ert J you could not hold him back.

Witness: Yes. Sanson said to me "I don t care a hang for the ewes and lambs provided I can make the exchange."

Mr. Spence: Did vou tell Sanson that you and Fred Kemp were pooling commissions?

Witness: No, I did not think it was necessary.

His Honor: Why did you think so? Witness: Because it is the usual thing _ A VALUER'S EVIDENCE. Evidence was netxt given bv John B Richards, a land agent and land valuer' residing a t Stratford, who said that acting under instructions lie inspected Matakana Tsland in February last. The only reliable method of* transporting stock to and from the island was by means of a scow. This was both expensive and cumbersome. Lack of proper access was in his opinion a bi<* drawback to the property, which was practically a sand bank.' At various points on the coast there were lar<re sand-drifts, the total area of drift sand being 1300 acreg. In addition there was a swamp of 1000 acres on the island, which he did not think war drainable. The vegetation on the land was very scanty, and by'far the greater area <*rew nothing that was suitable for fodder. The result would not justify the expenditure of grassing it. Mr. Spence:. Would you recommend the island for purchase? Witness: No,'decidedly not, I cannot sec how that property can possibly be farmed unless one got it for nothing IT'S ONLY USE. Witness added that the only use to

which it could be put was a game reserve. At the most the island was only worth 10s an acre. Witness then produced two sample* of Matakana's best in the way of soil, but His Honor recommended that,as he was not a judge of- soil he failed to see the object gained in putting them in.

Samples of oats which had been previously exhibited as a fair sample by plaintiff were at this juncture handed to witness for inspection, following which Mr. Spence asked: Is that a fair sample ■of the oats you saw there in stook on February 25 laBt? Witness: Undoubtedly no. The oats I saw w«re, regarded' as a crop, an extremely poor sample. Mr. Bell: No one then ought to spend money in attempting to reclaim the island?

Witness: As a business propositon, I say, No. Mr.. Bell: Then as a business proposition it ought to remain as it is? Witness: Yes. THOSE SHEEP. Mr. Bell: Did you notice the sheep? Witness: Yete. Mr. Bell: Now, sir, upon your oath, are they not in first-class condition?, Witness: The few that I saw were in good condition and looked well. Mr. Bell: So, sir, you merely r/anted to find out what you were paid to find. Why did you notice all the sheep? .Did you see any thftt' did not look well? Witness: No; "only the dead ones. (Laughter.)

Evidence was next given by a witness named Brown to the effect that there could be no two opinions about the poorness, of Matakana. He also considered it would be possible to make the island pay at the. price paid for it. John A. M. Davidson, farmer, Tauranga, and valuer for the Government in that district, said he knew Matakana well; He inspected the property on February 25th last. A portion of the island was rolling dune land, and the balance very poor kauri gum swamps. Even if it was possible to' drain the swamps he very much doubted whether it would prove a paying proposition. Judging ky the stubble the oats produced in- court were not a fair sample of those he had seen on the island. As a business proposition he would be very loth to tackle the island. For valuation purposes the unimproved value would not be placed at more than 3s an acre. In addition there >vere improvements to the value of about 2s 6d an acre.

L. Tolleniache, farmer at Tauranga for the last 15 years, also gave his opinion on Matakana as the result of a recent ■visit. Altogether there were about 2200 acres of waste land on the property. The oats he inspected in court were certainly not a fair and honest sample of those grown on the island. Matakana was not fafmable, and in witness' opinion it was not worth more than 10s an acre,

Walter D. Powdrell, of Hawera, chairman of the Patea Freezing Company and other concerns, who had given evi- [ dence on the Flaxbourne and other important, land compensation cases, said that taking the island' as a whole he thought very little of it. In his opinion the swamp was water-logged by the sea. He estimated that the area of waste land (swamp and sand) ran into 3000 acres. The oats exhibited by plaintiff were not a fair sample. When* fully improved the island should carry a sheep to eyery.thrcje acres. Without "im- : provements he considered the potential yalu* of the island at 5s per acre, but if he were valuing the island he would put a tag on the valuation to the effect that he 1 would'not'advise that any adTance he made on it.

E, H. Young, law clerk in the employ of Mr. Fookes, Stratford, was also called as a witness.

This concluded the taking of evidence, and further hearing of the case in the shape of 'counsel's addresses was adjourned to Wellington to a date to be arranged later. The court then heard an interesting and complicated civil dispute, which is reported under another head, and then adjourned till 10 o'clock this morning.