MAGISTRATE'S COURT.

Bush Advocate, Volume XXI, Issue 282, 2 June 1909, Page 5

MAGISTRATE'S COURT.

THIS DAY. (Before Mr S. McCarthy, S.M.) ALLEGED FRAUD. Koliort Graham Pat'erson Mas charged : (1) That on or about the loth day of- March, 1909, at Ghakxme, he did receh-e from H. Merson a valuabl security,, i.e., a cheque for £10 on terms requiring him. to account or pay the same to E. Pawson and Co., and did fraudulently omit to account for or pay the same; (2) that on the 9th of December. 1908, at New Ply^ mouth, ho did receive from 11. H: Wallath and W. D; Wallatli, a valuable security, i.e., a promissory note for the sum of £50 on terms requiring him to acco,unf for same, did fraudulently omit to , account for same or pay the same or any part thereof.; (3) that on or about 25th January, .at New Plymouth, did receive from Boon Bros., New Plymouth, two valuable securities, i.e., a cheque for £40, and a cheque for £6 4s in terms requiring him to account for or pay same, did fraudulently omit to account or pay same or any part thereof; and (4) that- on 14th August, 1908, at New : Plymouth, did receive from It. H. Wallath and W. D. Wallath a valuable .security, i.e., a promissory note, for the sum of £100, in terms requiring him to account for same, which lie had, failed to do. Accused was also charged with the fraudulent conversion of a cheque for £47 1.95, on or about 19th October, given by Roon 8r05.., of Ncav Plymouth, and : the property of E. Pawson and Co. . Mr Lloyd appeared for the informant, and accused .was also represented, by counsel; ' : . '.•"... All witnesses were, ordered out of court. ■ . Robert Herman Wallath, builder' at New Plymouth, deposed that lie was senior partner in the firm of Wallath Bros. He knew accused.- He remembered an interview with accused iv June last year, in reference to the purchase of some timber from the accused's mill at Ohakune. They agreed as to price and two trucks were to be sent on trial. Tlie timber was to be clean 0.b., fit for dressing. It. came to hand, early in August, and was consigned by E. Pawson and Co. (we^ghbills produced.) That was all that was on order just then. He saw acucsed about 14th August. Accused asked howthe sample suited and witness said it was "up to the mark." He, then asked what about another order, .and Avitness gave, him an order for about £150 Avorth, 4he -timber to be up to, sample and at 8s on the truck at Ohaknne. After he' got the order lie said, "Well.old man, I ,am a bit! pushed for money," and it was arranged that he should get a bill for £100 that day, although timber to that value had not then been delivered. He only had about £16 worth at that time, and. he asked accused for his cross bill as security. (Bill produced). The bill which witness gave accused had been paid. Several days before the bills Avere due accused was in NeAv Plymouth, and witness asked* him what he Avas go.iug to do about them. Accused said ho did not want his bill to go through. He proposed to give a cheque- for £50, and that the bill should be cancelled. This was agreed to, and accused wrote cancelled across the bill. Their bill Avas : paid, but Paterson's cheque Avas duly . At this tinie witness would just have had about £150 worth of timber. In the early 1 part of December accused received 'two further, bills, one for £50 (for-. which they received . no . cross bill) and one for £75 12s 4d; ...The £50 bill Avas made payable to R. G. Paterson, an:l the other to E: Pawson and Co. He did not discover this until the bills came due, .as iall the bilte wero ftllel '-. in by Paterson. He held another bill for £75 12s 4d, Avhich was a cross bill for the bill of a similar amount given by witness to Patorson. It Avas given oh the same day as the other- bill, but dated back to 4th December. Altogether they had 43,428 feet of timber, valued at £155 ' 2s, according to the prices arranged. For this Avitness had given bills to the amount of £225 12s 4d. The 'weigh- ' bills came from E. Pawson and Co., k Avith the exception of one truck. '" A\'hich ciimo from Miles and Co. From Pawson and Co. he got 41,319 feet, and from Miles and Co. 2109 feet. All the orders Avere given to j R. G. Paterson, and they had noth- i ing to do with Miles and Co. After * the timber began to arrive" he no- i ticed that the Aveighbills Avere headed ( Pawson and Co. Shortly after he i saAV Paterson-, and asked him Avhat it ( meant. r/atorson told him to take no* notice of t,hat as he might get ; weiglibills from several mills, as it ( \va>> a Avay they had of doing business } in that part. Nothing more was. * said until about the middle 'of Sep- ; tember, "wlieu Paterson was in New t Plymouth, witness produced an ac- 1 (•mint from the Rangitikei Sawmill- f ers v Asso;-iatioii for £16 6s 6dv and asked him Avhat it meant as he had , already settled for the timber. Pater- . son said it was- evidently a mistake j

on DoTm/St's part, and he would sea . that H'vras put right. He put ns6 Avell right that they had not had *iv account since. Ho had never given Pawson and Co. any orders or; paid them any money. After reading thcr endorsement on- 'the? bill for- £75 hostill said he. had no intention of paying E. Fawson. and Co. any money, as his firm did not owe them anything. He, did not know them as creditors. About 9th December timber was coining in well, and Paterson received further orders, which if supplied would have more than covered the amount of the Bills given. Ho had heard that they had been credited with £75 12s 4d in Pawson and Co.'s hooks, but ho had not seen the books. , They were now being sued by the 'Bank' of- New Zealand on a bogus Mil for £100. It was only signed by Wallath Bros, and not by the respective members of the' firm. The was never issued by them. Gross-examined: The bill for £100 just referred to was signed by witness about two years ago, but had 1 nothing to do with ,tlie transactions ..with. Paterson. The firm's bills and cheques were always signed by each of the. partners. Letters were- signed as "Walla-th Bros." He had never said the bill in question was' signed six years ago. 'The. discrepancy be-■twee-ii the -amount of the bills-, given and the value of the timber was accounted for by the fact that they had cross-bills for the difference. He was not a^vare that Paterson was connected- with E. Pawson and Co. ' Paterson led him to believe that the mill; at Ohakune was his. There were three bills given to Paterson '.n connection with Ohakune limber' R. G. Paterson wrote the word "cancelled" across the bill for £100. If Paterson said differently he Avas not telling the truth. Before this, his firm had dealings with Paterson and Edein connection, with, the Koru mill. He bought from them a planer for £90 and timber to the value of £.50. He never gave Paterson a bill for £100 for timber bought! from Koru. He sued Paterson to recover the amount of the dishonored cheqiie. He liad been in gaol for acting as the "Taranaki highwayman." He received a sentence of eight years, but was released owing^ to a public petition. At the same time the question was a blow below the belt, as it. had nothing to do with the' present case. (Left Sitting.)