FRAUDS AT MESSINA.

Auckland Star, Volume LVII, Issue 112, 13 May 1926, Page 4

FRAUDS AT MESSINA.

SHIPPING THE SHELLS,

PROMPT ACTIOX BY POLICE.

The following is an extract from the TI Corriere di Sicilia," of Catania, dated March 20:

"Since some time several Governments of foreign countries, which largely import dried fruits—almonds, filberts, walnuts, etc., from our zone, had interested our Government regarding certain serious irregularities of which some foreign importers had to complain on shipments of important lots of such nroduce.

"Our Government immediately adhered to their wisb, and ordered that a serious investigation should be made to ascertain the case.

"Our police authorities investigated at once, and soon discovered a real organisation of swindlers. It was ascertained that certain dried fruit merchants, all from Messina, had found a rather easy "way of making money.

"The foreign firms opened credits in favour of these swindlers for their purchases of dried fruits. The Messinese merchants regularly made the shipments, hut instead of dried fruits they shipped the shells of the fruit. They presented the shipping documents to the banks ajid cashed the money under the credits. The judge charged with the investigation estimates that the frauds amount to a total amount of about 5,000,000 lire.

"Five swindlers were arrested during Tills night when they were leaving a fancy dress ball. One, who understood the purpose of the policeman's visit, tried to escape through a window, but was not fortunate. He is well known in Catania and was arrested last year for the same reason, but obtained the provisional liberty against a security of 20,000 lire." INTEREST ON ACCOUNTS. THE LEGAL POSITION*. A good deal of uncertainty exists in the minds of the trading public as to the legality of firms charging interest on overdue accounts. The matter was dealt •with in Ashburton last week by Mr. E. D. Mosley, S.M., in the following terms: "As regards claims for interest on ordinary mercantile accounts, I desire to make a few remarks for the information of the trading public. As at present advised, I conceive the following to •■be the law on this subject: 'Section 28. the Civil Procedure Act, 1833 (3 and 4 '""William IV., chapter 42) sets out that the power to award interest is discretionary, and need not be exercised unless "the Court jury thinks fit.' In Lloyd Edwards, Williams v. French (1801), 01 L.J. chapter 22, it was laid down that a printed statement in a bill-head, that interest would be charged after a lapse of a certain time, is not sufficient. "I wish it to be understood that in all similar cases. where interest is rharged on "a"running account, I shall require proof, either that an agreement to pay interest has been made, or that a written demand for payment giving notice to tno'acbtoi that interest will be claimed from the date of such demand, has been made on the debtor. The first requirement seems to mc to be in accord with (lie decision in Ilcnrv Marqiris of Au-lcHcy. Willmot v. Gardner 1001-2. A <'iisc» di. Dfv. ."i-ltf. quoted by the solicitor lor the plaintiffs."