THE McARTHUR CASE.

Ashburton Guardian, Volume 56, Issue 266, 22 August 1936, Page 9

THE McARTHUR CASE.

OWNERSHIP OP A YACHT. COUNSEL INDISPOSED. rtPer Press Association.) WELLINGTON, August 21. Feeling the strain of the heavy work he has bee'n doing for some months past, Mr H. F. O’Leary, K.C., reached the stage to-day when he found himself obliged to ask Mr Justice Johnston to adjourn for a short time the hearing of the civil action in the Supre'me Court against John William Shaw McArthur, company promoter. Mr O’Leary is appearing with Mr R. E. Tripe, for McArthur. Mr Justice Johnston granted Mr O’Leary’s application. Counsel left the courtroom, and, after disrobing, he went away in a taxi. Just before he left it was announced that the court would stand adjourned until 2 o’clock in tiie afternoon.

When Mr O’Leary applied for the adjournment, McArthur was in the witness box, and Mr O’Leary was conducting Ins examination. McArthur had been in the box just less than an hour. Air O’Leary, only this morning, had made arrangements to leave for Sydney next week for a holiday. The hearing of the case was resumed at 2 p.m. Mr O’Leary did not return to the court, Air Tripe _ conducting the remainder of the examination in chief of defendant, whose' evidence followed the outline of the defence given by Mr O’Leary shortly before the court adjourned yeste'rday. Addressing his Honor, Air Tripe said his learned leader was not in a fit condition to carry on in tlie case. He' had been unable to discuss matters with him to any extent, and therefore he would ask the indulgence of Air G. G. Watson, leading counsel for plaintiffs, who already had offered to permit Mr O’Leary to ask witness any further questions that may be dee'med necessary at a later stage, sub ject, of course, to Mr Watson’s right to cross-examine McArthur about them. Air Tripe added that he did not apprehend that any further questions would be necessary. In reply to his Honor, Air Watson said he would readily agree to any course that would meet the difficulty that had arisen. McArthur’s examination in chief was completed, and Mr Watson began his cross-examination of defendant.

Mr Watson asked defendant' whether he suggested reriously that the object in forming the Pacific Exploration Company was to do exploratory ivoik in the Pacific. McArthur: I do. And that this yacht was built for that purpose?—lt was commenced for that purpose. Can you give me any group of islands you had in mind to explore or develop?—We had the Santa Cruz Island, and an island near Fiji supposed to contain phosphates; that is one wo had in mind. Was it necessary to have a £IO,OOO luxury yacht for the off-chance ol exploring the Santa Cruz Islands? No. "When the boat was started 1 1 was not intended to cost anything like £IO,OOO. When I decided to take it over myself I spent more money on tho interior fittings than would otherwise have been spent. So far as your connection with the Pacific Company is concerned, you got the yacht, two cars, and large personal advances from that company?—Yes.

And apart from the Wymvood-Ster-ling transactions you never paid any cash for any of them? —No, hut I gave valuo for them, though. In the Wynwood-Sterliing transaction ?—Yes.

The Court adjourned ir.dil Mon day.