THE DALEY CASE.

Auckland Star, Volume XXXI, Issue 44, 21 February 1900, Page 2

THE DALEY CASE.

YESTERDAY AFTERNOON'S

PROCEEDINGS

The charge against Charles Grant Daley of having on December 23 given undue preference to one of the creditors, Joseph Ehrman was proceeded with at the Police Court yesterday afternoon. After the evidence of Joseph Ehrman had been taken the case was again adjourned. The; following- evidence was heard after we went to press yesterday:—:

- Joseph Ehrman, clothing manufae* hirer,' stated that negotiations fof the sale of his factory to Daley were commenced in September and completed in October last. The stock was valued at £2500 by Mr Johnson, witness' clerk. Witness removed his business books and destroyed them after Daley took possession of the factory. The* purchase money was to be paid in two bills, at 3 and 6 months, for £118G 12/10, and £200 cash. Witness was retained as manager at £40G a year, the appointment to be for 5 years. Witness held the position until the Official Assignee took possession. Witness was not aware that Daley was in financial difficulties until Friday, December 22nd. He .saw Daley about 4.30 p.m. and said he had heard that he (Daley) had sold £6000 worth of bond warrants for £2000. Witness told Daley it was "very, very wrong." Daley replied that it was a falsehood, and witness, satisfied with the statement, left the shop. On the Saturday witness sent for Daley to come to the factory, and told him he had heard distinctly that he (Daley) had sold the bond warrants, and that it would be advisable to' go down to Mr Cotter's office and explain everything in connection with'the bond warrants. Daley went with him and saw Mr Cotter. Later in the day, about S p.m., Daley gave witness ten bond warrants for drapery goods in bond, and invoices corresponding to the warrants, and representing aboxit£ 2000 Woi-th.Witness kept the warrants till the 9th January, and then sent them away to his largest creditor, the Mosgiel Woollen Company, in consequence of a telegram received from the Compamr, Accused was in his normal frame of mind on the Saturday evening, but said that he was worried. Witness invited Mr and Mrs Daley to go with him to his house at the Lake, and they accordingly accompanied him thither that evening. On the Sunday Johnson came over and checked the invoices and bond warrants at witness' request. Mr Cotter was sent for on Christmas morning, and had a private interview with Daley, and the pair left the house together at -twelve o'clock on that day. That was the- last time witness saw Daley till after his arrest. Mrs Daley remained at the Lake till Monday night. Daley paid witness two minths' salaiy, and a further payment was made by Mr Gray to January 1. Witness said he was a creditor to the amount of £4100, and was secured to about £2000.

To Mr Baume: Daley promised witness the bond warrants in Deceml-^r, and he was disinclined to part with the business unless he got security from Daley. He made several applications to Daley in this respect after the deeds had been signed effecting the sale, and at -last' obtained the bond warrants from Daley.

At this stage the case was adjourned till Thursday next, at half-past nine a.m. •