A MASTERTON SOLICITOR.

Taranaki Daily News, 26 October 1917, Page 4

A MASTERTON SOLICITOR.

ALLEGED PROFESSIONAL MISCON* DUCT. By Telegraph,—'Press Association. Wellington, Oct. 26. The Appeal Court to-day is hearing an application to strike off the William Gascoyne Beard, solicitor' of Masterton, for alleged professional tiiisconduct in connection with dealings with Rangi Kerehoma, a Maori. Mr. von Haast ia appearing for tha Law Society and Messrs Gray RXL and Myers for Beard. The grounds of the application -are that Beard, being Kerehoma's solicitor and, knowing, him to have larg» transactions with William Boyce Chonnclls, who was formerly representative'of iPublic Trustee at Masterton, advised and procured Kerehoma to give -a power - of-attornev to Chennells and to be declared a European, thus bringing Kerehoma under the influence of Chcnnellß; that by undue influence, in breach of his duty, and in fraud on Kmhotaa's rights, he procured tttuafew, and tales of tiro lands known as Mangahuia, Uhiroa and Tablelands, in most cases to j members of Beard's and Chennell'jt families; that such sales were »t a grow tin- ' dervalue, as evidenced by the fact (that Beard and Chennells settled a subsequent action brought tjy , Kwfhoma against them by agreeing pay 413,498 damages and costs £BOO and) re. linquishing their claim to Tablelands; that in conjunction with Cheanelln he procured the acceptance by Kerehoma ol less than £IOOO out of ® tbtail of £48,000 purchase money and the acoeptanc« of mortgages for the balance, Midi jaort. gages in several instances being Mr a larger amount than the purchase money payable' by the mortgagor that Jidgai Hallett, of Napier, who put for. ward as Kerehoma's solicitor, waimallj acting for Beard and Chennellg, land Hallett was not instructed until the arrangements had already been entered into; that, although Beard knew th« lessees of Kerehoma's lands wanted to renew their leases or purchase, hj« subordinated Kerehoma's interests to 't&osq of himself and Chennellg LAW SOCIETY'S CASE.

Wellington, Last fright. Mr. opening for the LaH Society, said the case shewed that when Beard and Chennels were on the eve ol completing their arrangements for acquiring Mangahuia, Kerehoma was advised to make application to he made a European, and thus aJJ.tiifl zeettidtione on the alienation of his land war® removed, and although Beard and Chennel* knew that Kerehoma's leasees, Strang and Hodge, desired a renewal Of Mangahuia, Beard and Chennells purchased from Kerehoma for £48,000, jrithout making any attempt to invite competition, or see if a higher price could be obtained in the open market. T!»y received £BOOO in cash from the sob-pur-chasers of part of MangaWa, bat persuaded Kerehoma to lea.Yß £48,000 (except £968 Is Cd) on mortgage at 5 pei cent., CIO,OOO for five years and the balance for twenty years, most qf the mortgagees being without assets, and although Beard and Chennells iheraselvei were the real purchasers (th&transferi being merely volunteer^'through them) Beard and Chennells did not gpocantei payment themselves, or make $e whol» of the land liable for tjfe of th« purchase money. Knowing Kerehoma required to raise about £12,000 to dia< charge his liabilities, they allowed him to sub-mortgage some of the jairtSMers' mortgages on £BOOO for five at six per cent., and they persuaded Kerehoma to allow the mortgages from the purchasers to be so arranged thai-in the case of the following rtortgages the amount to be received by.the mortgage was substantially higher than the amunt of the purchase money for the land, viz.: S. M. Beard, price paid' £3730, principal secured £394oj' G. G. Beard, £6999/ £7392; Elizabeth Chwmelle £7204/£7609; E. J. Chennells £7591/ £7699.

Mr. yon Haast then dwelt on the fact that, when Kerehoina sued Beafd and Cheijiiells. and it was alleged they, knowing Kerehoma was unfit to manage his own affairß, advised him and procured transfers to members of their families, by vindue influence, in breach ot their duty; they settled the action b/Sgreeinpr to pay £15,000. Beard and Chennells had themselves to become personally liable to a bond for £49,C00, and had to agree to pay interest at 6% instead of 5 per cent., and to ijiaKe-up the interest on the Perry mortgage' to 5% per cent., and jay puch, soma as would reduce the"aiAoußf X>f interest on the sub-mortgages from Kerehoma from 6to s'/., per cent. , ''' Mr. Von Haast had noitconaluded when the court rose. It te, pkpected thftt tha case will last three day#