S.M. COURT.

Bush Advocate, Volume XXI, Issue 283, 3 June 1909, Page 5

S.M. COURT.

m ' — ; — -- •- • ■■ •' THIS DAY. (Before Mr S, McCarthy, S.M.) [Continued from page 2..] William Alfred Ryan, F.1.A.N.Z., deposed that lie did accountancy work in Dannevirke. He knew of the firm of Pawson and Co., and had practically closed up their books up to the end of last December. The books produced were the books of the firm. He found in them lio record of a bill for £100 discounted by 11. G. Paterson at New Plymouth on 14th August, 1908. All the firm's money paid to accused were in the form of cash debits. There was no trace of a' bill for £48 16s 7d discounted by Paterson at New Plymouth on 11th December, but. there was a record of a £100 bill, given by Wallatli Bros., and dn© on 4th March, 1909. He got that information from Pawson and Co.'s billbook. The entries in this book were mostly in Mr Dobson's handwriting. He found an entry of £35 in. connection with timber sold to Beagle. and Co., Wallath. Bros., Boon a^ad Co., and self. That entry was made on information supplied by Paterson. There were no debits to Wallath Bros, except for timber presumably .supplied by the Rangitikei Association., amounting to £190 0s lOd. Credits Ay.ere shown leaving a debit balance of £14 8s fid. He made the books up from the cheque book, bank book, bill book and Rangitikei Sawniillers' Association's invoices. He reconciled the cash book with the bank -book. When he balanced the books Paterson's debit balance was £44 os 3d. Assuming that the bills, of which there was no trace in the books belonging to the firm, Paterson should have debited himself with the amount in the firm's books, if he put the .proceeds to his own account at the bank. If the timber purchased by Wallath Bros, belonged to Paw- ■' soil and Co., then any bills which they gave for it should have been credited to them, and if Paterson put the proceeds to his own account, he should have been debited with, the amount. ■ There was evidence in the firm's books of timber sold by the firm to Wallath Bros. ' „ Edwin Pawson deposed that he was a farmer and sawmiller residing at -Dannevirke. About 12 months ago he rented a sawmill plant and bush at Ohakune from Anderson, Sons and Co., Ltd., with a view to carrying on the business of sawmilling. R. G. Paterson joined him in the venture, and they started business as E. PaAvsori and Co. The necessary worlcing capital wiis borrowed from the bank, for which he pledged some property. ; Witness took .charge of the bush, and Martin Jonansen took charge of the mill. Paterson's duties 'were, to collect , orders.*^ ■< It was arranged that Mr Dobson^was. to keep the books. Witness kji&w :• nothing about hooks. The bank ac•Gount was kept at the Bank of: New= Zealand at Dannevirke. Another account in the name of E. •■ Pa-wson was kept at Raetihi. This: wiis oidy J for the purpose of operating, on I small sums. The main account was 1 kept at Dannevirke. Cheques were I signed by Dobson for the firm- in the same way as the endorsement on exhibit "F." Witness was to get £16 13s 4d and Paterson. Avas to get £10 per month for their serA'ices. The profits Avere to be . divided. -Avhen there ; were any. He kneAV of timber- going |to Wallath Bibs. He heard the e\'idence of Mr Wallath re .his transactions with Paterson. ■ Paterson had not told him anything of this. He only learned last month about the i bills Avhich Wallath -had given, to Paterson. He had never seen ; lath Bros.'- ledger: account, in,- ;the i books. Dobson had told him- of the bilL for £7uAvhich had been credited to.'Wallath Bros. ; He had never discussed WaHath Bros.' account ,A\'ith Paterson. There Avas no deed of partnership" and ilior© ■was.'iio 'tei"iii fixed, although the lease o£. the . mill Avasfor six years. He gave Paterson notice of intention to dissolve the partnership in December last. When Paterson saA\- him next he remarked "I got that bullet of yours," and afterwards made him an offe» of £100 to buy him out. AVitness accepted the offer, but it was never completed. AVitness asked for the books to get them audited, as things Avere not at all satisfactory. Neither party 'put any money into the- firm, but Avitness went security for £300. The only property the firm owned was the lease. Cross-examined : Paterson had received notice of Avitness' intention to dissolve partnership. That Avas before Paterson made an. offer of £100 to buy him out. Tho dissolution Avas not then proceeded Avith. The land-lords-would not accept Paterson as a sole tenant. Did not know that the reason why the lease Avas originally made .out in witness' name Avas .because Pat<-rsoii Avas secretary; of Anderson, Sons and Co., Ltd. - There was no arrangement that Mr Dobson should act as secretary of PaivI son and Co. at a salary of £100 a year. Paterson and himself both went to the mill about the 'middle of March. Did not remember- -asking Paterson at Taihape- in March. last io. go round the district . to., get orders..,

or that- hp /witness) wire*! the firms on whom he was to call. Witness said lie signed exhibit .-MQ'-' .and... Mr j Paterson signed al'tli'e safac ".-time ; this was* an order given in favor .of Wilson arid Co. Knew that Pawson and Co. were sued by the Pukehinau Sawmill Co, in respect to a waggon, and knew that tho summons wasserv.ed on It. G. Paterson, and they both went up to Taihape, where the case was heard. Did not attend the court. The exhibit "T" is a specimen of the firm's notepaper on which the correspondence of the firm was mainly conducted. He did not know how often the 'books were periodically written up.' The books were kept at- Pater-' son's- offices in Dannevirke. He took charge of them about a month ago. Wallath had not told him that Paterson- had not asked him to- say nothing about the bills. No arrangement had beenmade about travelling expenses. He had paid his own so far, and if there had been any profits the travelling expenses would have been paid out of them.' He did not expect Paterson to pay his own expenses when travelling for orders. He had never had a settlement' of accounts, although he had asked for one. He wrote to. Paterson '.on May oth, asking for a statement of all business transacted by him in connection with the mill, and warning him .not to further interfere with the_business. A reply was sent stating that .he -was' billing to furnish a statement of the business of Pawson and Co. On. Bth May "witness forwarded a reply in which he denied a partnership, with Paterson in the firm of Pawson "and Co. Had been advised by his solicitor that there was a partnership, but ho hoped not. All correspondence had been conducted Tinder the name of Pawson and , Co. ;' could not his statement that partnership never existed.; could not explain his statement that Paterson had no interest in .the business. Was not aware Paterson was attending a court case at Taumaranui just after the Bth May; couldn't say why lie caused Paterson's arrest eight days after his solicitors replied' that Paterson was willing to furnish statements; books; 1 were in J. J. Patterson's safe at that time",' if not ' they were at Ferrier Walker's; He gave some of the books to Terrier Walker. Mr Dobson put books in J. J. Patterson's safe. Did not stop Mr Downs and Paterson perusing books ; was aware Ferrier- Walker refused to allow them. When Downs asked permission to see them Tefused, pending legal advice. Had paid monies into Pawson and Co.'s account at Raetihi. Did, not remember receiving £6,_ 6s from a -person named Vine. Did not remember receiving £7\ 13s 6d from another ; remembered receiving £2 13s . 6d. from another , creditor'; all these items were credited in the Ohakune books. Would not swea-r if they were shown in any but the jbank book-; did iremem--.'ber. receiving £55 from a person named -Barr. Witness was subjected to a running fire of questions xc , items received, most of which he did not remember,- Never remembered receiving a parcel of cheques 'from Paterson, sen. Paterson had never seen the account at .Raetihi in Pawson's name; was really Pawson and Co. account. •: Had paid private debts out of. the Raetihi account. Had not acquainted Paterson of the fact, Was aware there was a drawing account. Did not know how much Patersonxir himself had drawn out of the firm..,. • . To Mr Lloj'd : Cheques had been drawn to pay travelling expenses. Had no objection to that; Paterson liad a timber yard in New Plymouth .for .Beale and Co. At the' time he wished for a dissolution .Paterson did not agree, still wished for a dissolution. Admitted j. Ingley framed letters for him, specially the on<e of Bth May! Got advice first from his solicitor about a > week; ago. Before he had steps taken to arrest PatersoiT had consulted; Sergeant Cruickshank and liad also consulted Detective. Hill in .Napier,. ■:. Considered. the matter a A\eek before Jtie laid jthe information. Did riot- know Patterson's address;* kiiew he had sold 'his home in Dan- r nevirke. Did not, know there was any trouble about WkHath's'p.n. till }\o went to New' Plymouth about, the. middle of May. , i\ne\vf Pawson and Co. had a bill discounted at the bank which Wallath Bros, had' not ' met. ; Knew the bill was dishonored early in March, Knew endeavors were made to get the bill paid. Knew proceedings had been taken, to make Wallath Bros, pay same. Knew they were defending; knew Wallath Bros.' alleged the bill was stolen out of their office. Took steps a week after consultation with the police; had paid money into bank ait Raetihi; .small • accounts wero paid -out at Raetihi ; oil Patevson's suggestion account was opened there; Paterson had never seen accounts; could have if he had wished; could not say how much lie j liad drawn. | By the Court: His £16 13s 4d was I drawn out of bank here was not paid regularly ; did not think he was fully paid; did not think he had drawn £40 from Raetihi; did .not toll Pater- ■ son lie had £40 for private purposes. (Left sitting.)