DANZIG ECHO.

Auckland Star, Volume LXVI, Issue 148, 25 June 1935, Page 8

DANZIG ECHO.

LOTTERY HISTORY.

SECURING A CONCESSION.

CLAIM FOR SERVICES,

In the Supreme Court to-day further light was thrown on the operations of New Zealand companies which obtained concessions in recent years to operate lotteries in the free city of Danzig. A claim for admission of proof of debt for services rendered to International Concessions, Limited, now in voluntary liquidation, was made by Ivan Towers. It was contended that Towers, who had previously been secretary for a rival concern known as British and Foreign Concessions, Limited, which operated a lottery in the free city of Danzig, had been instrumental in International Concessions obtaining a concession to operate a lottery there, too. The claim was heard before Mr. Justice Callan. Mr. Henry appeared for Towers and Mr. Goldstine for the liquidator of International Concessions, Ltd.

Liquidator Rejected Claim. Mr. Henry said that the claim was for £290, the sum of £10 having been paid The claim, however, had been rejected by the liquidator, on the grounds that no services had been rendered in securing the concession, or if they had been, there was no obligation to pay. International Concessions, Ltd., was incorporated in 1932, and when 12 months later Towers approached one of the directors, Mr. Hetherington, it had not obtained a concession for a lottery in a foreign country, which was its real objective. Towers, continued Mr. Henry, informed Hetherington that he believed he could obtain the concession in the free city of Danzig. Towers, prior to this, had been engaged by a rival concern, and had just returned from a visit to Europe, where he had investigated a concession of a similar nature. As a result of the interview, contended counsel, cables were sent to one named Saxon in London, and he, through another person in the free city of Danzig, named Maxwell, obtained the ! concession.

"Are They Difficult to Obtain?" His Honor: Is it so difficult to get these concessions ? I suppose it is to the advantage of the free city of Danzig to encourage these lotteries, which are not legal in other countries. Mr. Henry: Only a limited number were granted. Counsel continued that the total of the expenses involved in securing the concession was £7402, but the actual cost stated by the liquidator was £927. The concession was subsequently sold for £25,000 worth ( of shares in an Australian concern.

His Honor: I suppose everybody through whose hands it passed got some sort of rake-off-sr-or hoped to.

I "The main issue is the value of the : assets obtained through my client's i introduction," added Mr. Henry. "On . the question of what is reasonable re- , inuneration, I ask your Honor to take into consideration the final value of the ; assets taken over and the amount for • which it was sold in New South Wales. I submit that £300 is a reasonable , claim." Dismissal of Executive. Towers was then called and cross- ' examined by Mr. Goldstine concerning his affidavit. He admitted that one of . i Ids objects in approaching Mr. Hether- : ington was to secure a position with International Concessions. Witness agreed that twelve months prior to the interview he had been secretary of British and Foreign Concessions in New Zealand, and had gone Home to be secretary of British International Concessions. The second company was a subsidiary of the first. Asked was it not true that he was dismissed from the second position, witness replied that of the executive of five, four were dismissed, including himself. The first lottery was a failure and a new executive was put in. There was no additional reason for liis dismissal, said witness. In reply to Mr. Goldstine, witness said that lie had had business dealings with Mason and had a counter claim to Mason's claim of £44. Prior to sailing he had left the amount of his debt with his solicitor. At the ship one of witness' directors gave a cheque for the debt to the bailiff. Desire For Employment. Mr. Goldstine: I submit your sole idea of offering advice was to further your idea of getting employment with the company?—l asked to be paid as well, but did not mention any s^im. ■To his Honor witness stated that he was paid the £10 after the company had stated in a circular that the concession had been obtained. In further cross-examination witness admitted that he knew that Maxwell had gone to London as the company's agent to negotiate for 'a concession. He i had not obtained any agreement from Mr. Hetherington for future payment or specified any amount. Mr. Hetherington had given him a cheque for the £10 and he understood the directors subsequently repaid him, ratifying the payment. When his Honor asked why International Concessions into voluntary liquidation, Mr. Goldstine explained that it was in consequence of the inquiry into company promotion in New Zealand. ' When the commission made its report, it "was understood that legislation would be introduced in New Zealand making it illegal in the Dominion to raise money for a project overseas which was not legal in New Zealand. Consequently the company went into liquidation and transferred its tissets to Australia. His Honor: They were moved to an atmosphere more hospitable to the gambling instinct. 1 Value of Services. On behalf of the liquidator, Mr. Goldstine said that he contended that the application should not be admitted, and in any event, certainly not for the amount claimed. If Towers' services were worth anything, they had been adequately paid for by the £10 which he had received. The basis of the liquidator's case was that when Towers went to Hetherington it was not because he thought of remuneration for his advice, but because'lie thought it would assist him in securing employment with the company. J. R. Hetherington was then called and cross-examined by Mr. Henry. Maxwell, he said, had been sent to London to arrange a concession, being allowed £30 a week for salary and expenses. If the balance-sheet of December, 1930, showed that £34,89*2 had been subscribed to the company, a year after its incorporation, that would be correct. Negotiations for a concession had not then been finalised. Those negotiations •were with the French Government. When & change of Government came and difficulties arose the negotiations were abandoned. Later the negotiations were transferred to the free city of Danzig. (Proceeding.)