CLAIM FOR COMMISSION

Auckland Star, Volume LXI, Issue 286, 3 December 1930, Page 9

CLAIM FOR COMMISSION

AUCTIONEERING COMPANIES. "GENTLEMEN'S AGREEMENTS" SALE OF STOCK AND CHATTELS. (By Telegraph.—Own Correspondent.) HAMILTON, this day. Tie customs and understandings that exist between stock auctioneering conip'anies in the Auckland province were reviewed in a case which came before his Honor Mr. Justice Herdman, in the Hamilton Supreme Court, yesterday, in which the New Zealand Loan and Mercantile Agency, Limited sued Abraham and Williams, Ltd., for ,£BB3, commissions allegedly due. Mr. A. Swarbrick appeared for plaintiff company, defendants being represented by Mr. Gordon, Taumarunui. The statement of claim eet out that on September 26, 1928, and November 22, 1929 , , plaintiffs sold certain stock and chattels to James Tatham, farmer, of Te Kuiti, and paid certain moneys for Tatham and also sold certain stock for and on behalf of Tatham, and received the proceeds from the same. During the same period it was agreed by and between plaintiff and defendant that plaintiff should charge to defendant Vnd that defendant should pay the moneys owing to plaintiff for stock and chattels sold by plaintiff, to Tatham. In consideration of the agreement plaintiff agreed to pay defendant a commission of £1 per centum on the price of all stock .sold by the plaintiff to Tatham. Bill of Sale. Mr. Swarbrick said Tatham gave a bill of sale over all his stock to Abraham and Williams, Limited. It would thus bo necessary for him to obtain its permission before selling any stock. Couneel outlined the procedure adopted by auctioneering firms in the district. Where a customer had given a security to one firm he could, with that firm's permission, buy through other auctioneers. If he did so, however, the stock he bought immediately came under the original bill of sale, and the vendors lost all claim on the etock. The firm holding the mortgage then paid over the price of the stock to the vendors, and- received in return a rebate commission of 1 ; per cent. This agreement was not embodied in any written document, but was merely a "gentleman's agreement."

James Tatham, in evidence, said that at the end of 1928 the whole of his stock was under security to defendant. It was arranged that any stock he bought through another company should be charged by that company to Abraham and Williams. The agent for the plaintiff company purchased 382 sheep for wit. ness. Witness later purchased about 1270 eheep at Whakatanc, after he had had an assurance from the defendant company's agent that no objection would be raised. Question of Authority. Abraham ancl Williams sold the sheep at Te Kuiti, continued witness, the transaction returning to him a gross profit of £251, out of which the auctioneers received about £100 as commission. Cross-examined by Mr. Gordon, witness said he could not remember - which representative of»Abraham and Williams authorised him to purchase the lots of 1270 and 382 sheep. He denied having received any debit notes from plaintiff. Ernest Henry William Tapp, agent for plaintiff at Te Kuiti, said that to Wβ knowledge no arrangement had been entered into with Tatham regarding the purchase of sheep at Whakatane and Gisborne. By an arrangement made with defendant company it was arranged that it should sell the sheep and divide the proceeds of the sale between Newton King, Limited, and plaintiff in settlement of accounts. Arthur Wakefield Ward, manager of the Hamilton branch of the plaintiff com. pany, said it wae the practice that, Where stock under security to a member of the Stock Auctioneers' Association 1 was sold by another firm, the debit was rendered to the mortgagee. This regulation was not contained in the rules of the association, but was the outcome of a decision made at a meeting. At this stage the proceedings were adjourned. Rebate Commission. To-dny the- minute book of the Auckland Auctioneers' Association was put in. Thio showed that it had been agreed amongst members of the .association to grant rebate commission to a mortgagee firm where stock was sold to a mortgagor. Mr. Abrahams, principal of Abrahams ancl Williams, was in the chair at the meeting when that agreement was minuted. His Honor: It seems to be a matter of honour only and not of actual contract; i Mr. Swarbrick said it was purely a "gentlemen's agreement." It would be shown in evidence that no authority Avas given by any men to the Loan Company to purchase 1274 sheep. They refused both debit and credits put through to them \>y the Loan Company as soon as the notes arrived. (Proceeding.)