S.M. COURT.

Bush Advocate, Volume XXI, Issue 283, 3 June 1909, Page 2

S.M. COURT.

YESTERDAY. (Before Mr McCarthy, S.M.) ALLEGED FRAUD. The- following is the continuation of the evidence of Robert Herman Wallath in the case against Robert Graham Paterson:: • — His Worship pointed out that the stibject of the question was too remote (the. incident having happened 10 years ago), to be of any use in the case, and was not permissable. The witness declared that ' it was a dirty, low— — , but his "Worship stopped him before he could get any further, and the incident ended by Mr Lloyd remarking that it would probably recoil on counsel for accused himself . : . . To jirfr Other than those three bills his firm had given no payment or security for tho timber that came to them from Pawson and Co. He acknowledged lio liability to any one for that timber. He did not know the date of the bill for £100 for which Wallath, Bros, are being sued by the Bank of New Zealand., Charles Cann deposed that he resided at Pawson and Cb's mill at Ohakune. He was yardman and had a, good deal to do with loading and consigning timber. The weigh-bills (A 'and B) were in his handwriting and he sent the timber which was consigned to Wallath Bros. .The timber was the property of ■ Pawson and Co. He received a letter from R. G. Paterson about the time Wallath Brothers' account was opened, but he had destroyed the letter. He asked that a. special line be sent to Wallath Bros, as it was a trial order. He thought he was asked to send a truck ,of 6-x 1 and a truck of 9 x 1, and it was to be good clean stuff. He posted the weigh-bills to Wallath Bros, He did not know who did th</ charging up. AH the weighbills in exhibit "K" that went to Wallath Bros, are in his hand-writ-ing. . Most of the- timber sent to Wallath Bros, was sent by reason of ■instructions from Paterson. He frequently got, orders from Paterson for other customers. Paterson sometimes came to the mill and gave orders. Witness recognised him as a "boss." The ' duplicate books produced were in witness' charge. Paterson sometimes looked at them. He sent duplicates of Wallath Bros.' weigh-bills to the Rangitikei Association at Taihape. 'Ho did not know 'who made out the accounts for the timber. The office of E. Pawson and Co. was in Dannevirke. He understood Mr Dobson kept the books. He never received any money from Wallath Bros, for timber. Cross-examined: He had received communications from Wallath Bros, re this timber, and he had written to them. He remembered Wallath Bros, writing to complain that an order had been double-banked. " The letters were sometimes addressed to "Pawson and Paterson," and the replies sent were signed "E. Pawson and Co." He could -not remember receiving a letter from Wallath Bros, asking Pawson and Co. to stop sending any more timber. To the best of his knowledge the firm of E. Pawson and Co. was comprised of R. G. Patersou and E. Pawson. At that time witness considered they were partners by their "memo." forms. He was engaged by R. G. Paterson and Mr Pawson, but now he was undecided whether they were partners or not. He had seen Paterson doingodd jobs about the mill, such as handling timber, driving a waggon, etc. Some of tho orders came through the Association, and some through Mr Paferson. Mr Pawson was generally working in the bush. He had received cheques irom E. Pawson and Co. for wages. The firm's cheques were signed like the endorsement on the exhibit "F," and in some cases the letters were signed in the same way. To Mr Lloyd: The only way the orders came to the mill was through the- Association or through Paterson. Cross-examined : Ho could not say .whether Wallath Bros, had any reason to suppose they were dealing with Pawson and Co. at the time the first timber was being sent. Noil Kerr McDiarmid, manager of the Bank of. New South Wales, New Plymouth, deposed that he knew R. G. Pciterson, who kept an. account at his bank. Tho exhibit "C" was handed in by R. G. Paterson for diecount. The bill was discounted on 14th August, 1908, and the proceeds placed to Patersoii's credit. He had seen exhibit "E." That bill was discounted on 11th December, 1908, for R. G. Paterson and the proceeds placed to the credit of his account. He produced a. copy of R. G. Paterson's ledger account. He knew nothing of exhibits "F," "G," or "D." Cross-examined : He did not remember the details of all the conversations with Paterson and Wallath, but he did remember the day on which Patorson paid Wallath Bros. £40 ss. He thought it was partpayment on an overdue bill. He did not know whether it had anything' to do with Koru. Alfred Mervyn llyan deposed that

he was tho manager of the Rangitikei Sawmiilers' Association at Taihape. All the millers who are members of the association put their output through the association. E. Pawson and Co. were members of the association, and put their output through tho office. Sometimes the association collected payment on behalf of the sawmiilers. The statement (produced) had been made out in the association's office. He knew that Wallatli Bros, had purchased timber from Pawson and Co., and he charged \* up at list rate. No account was sent for the October timber. Exhibit "H" was an account for timber supplied to Wallath Bros, in August, 1908. The. association did not receive payment. It appears to have stood on the books until November as uncollected, and then written back to Pawson and- Co. Payments, to Pawson and Co. by the association were always made by cheque. Some o.i the cheques had been paid to Mr Paterson and soine sent to Dannevirke. He produced a. copy of the ledger account of Pawson and Co. Cross-examined: Pawson and Co. made an application to join the association (aplication produced). He had been consulted by Pawson and Paterson separately on- business concerning the firm. He always understood them to be partners as they had both signed the application for entry into the' association, and froni what Mr •Paterson had told him. It was necessar3 r that thei names of all partners in a sawmilling' firm be disclosed to the association. He had not heard that Pawson and Co. had dissolved. He had not received any notice of the fact. The last dealings Pawson and Co. had with the association was on Bth April, 1909. The order produced was signed by both partners, and the firm, as the association would . not undertake the responsibility of paying out on the signature of the firm per the accountant. The association had never sent Pawson and Co. any orders from Wallath and Co. (Continued on page 5.)