THE STUDENTS OF TRUTH.

Press, Volume LI, Issue 8838, 6 July 1894, Page 3

THE STUDENTS OF TRUTH.

BUILDING FUND DEBENTURES,

At the Magistrate's Court yesterday, before R. Beetham, Esq., S.M., E. Mary Ingram, a widow, sued "Tae Students of Truth Society or Trust Board, a Board incorporated under the provision of the ' Religious Charitable and Educational Trust Boards Incorporation Act, 1884,' whose registered office is at the Temple of Trath", for £12, as six month's intereat at 6 per cent, per aunum, due on eight debentures of different dates, in terms as follows:— " £50, Students of Truth Building Fund. This debenture is issued to Mrs E. Ingram by the undersigned as trustees acting on behalf of the Students of Truth. The bearer hereof is entitled to the payment of £50 (the receipt of which is hereby acknowledged) on the expiration of three years from the date hereof unless this debenture is drawn for repayment prior to that time. Interest at the.rate of 6 per cent, per annum will be. paid on this debenture by the trustees in half-yearly payments. All liability of the trustees with regard to this debenture is limited to the amount of funds in their hands bslouging to the Students of Truth.—W. Rainbow, C. A. Gawen, Fredk. Tnrvey, Thoa. Bnrnhain, T. J. Edmonds, W. Stringleman, Geo. R. Hart, Chaa. Dufrgi'Ti." Mr Yon Haast appeared for the plaintiff, Mr Bruges for the defendant. Mr Yon Haast said that, aa he was instructed. in March. 1892, the

land (la 38p) on which stands the Temple of Truth was bought in tbe name of eight trustees for £1100, of which £100 was paid in cash and a mortgage was given for the balance, bearing interest at 6 per cent. Ou the erection of the buildings the property was leased to Arthur Bentley Worthington (August 20th, 1893) for twenty years at £240 per annum, ou conditions " That this property shall be devoted to the propagation and teaching of the Students ot 1 ruth's Bible interpretations as set forth in the published volume or book ' The Worthington Lectures,' and taught by the lessee herein in the class rooms of tne Students of Truth iv Christchurch ; never departing from tbe said Holy Bible as the b_sis ot such teaching ami propaganda. Pro vided, however, that the said lessee shall have the right and privilege of lettiDg the auditorium thereof for such purposes as in bis judgment are not improper and inconsistent with a Temple or place dedicated to the worship of Almighty God.*' In April. 1593, a plot of land, two roods, opposite the Temple, was apparently purchased by Charles Duggan and G. A. Gawen for £1000, to hold in trust with power to let or sell or mortgage with the consent of A. B. Worthington during his life and thereafter at their discretion. For this a mortgage tor the purchase money was given to the vendors. Oa this land was erected a Kindergarten school and a social hall. The fund for the buildings seemed to have beea raised by gifts of money supposed to be about £700; debentures of £50 each subscribed to the extent of £4080 aud a mortgage to H. Marks for £300. The plaintiff had purchased eight of the debentures and had been paid interest on them up till the last half year's came due, when in answer to her applications she was informed by the Trustees that there "were no funds in their hands belonging to the Students of Truth," hence the present action to recover. The incorporation of the Board took place in November, 1893, and the names of the applicants were Charles Duggan, C. A f Gawen, W. Stringleman, W. Raiubow, A. Cadwallader, T. J. Edmonds, G. Simpson and C. Walkdan.

The plaintiff was put in the box and deposed lo the facts as given above so far as they related to herself. She paid the money to Mr Worthington personally; sli3 received the debentures in three parcels, one from Mr Duggan and two from Mr Worthington. There was a sinking fund instituted to pay off *.he debentures, and she agreed to contribute £2 10s per annum, which was deducted from the interest paid to her.

Cross-examined — She had left the Students. She paid £150 of the money to Mr Worthington and Mr Duggan, who called together on her at her house. She was not quite clear as to how the balance was paid, but it was paid either to Mr Worthington alone or to him and Mr Duggan together. A. B. Worthington deposed that he never received a shilling from Mrs Ingram ou debentures. She had lent him some mouey once, which he had paid back to her. He had a dim recollection of visiting her in company of Mr Duggan at her mansion. The Students had their ficst meeting about the building in June, 1391. He then arranged to rent the contemplated buildings, and finally the lease embodied the terms. With ! £240 per annum his liability ended. He never undertook to pay interest on the 'mortgages or to pay for insurance. He had, however, Btated that he considered himself morally bound to make up any deficiency, provided that his offertories permitted it. He had paid his rent regularly. He paid it away, at first, for interest to the debentuie holders, a3 the trustees had no money. They accepted, in lieu of rent, the receipts for theje payments until the incorporation took place when the arrangement ceased, and he was directed by the Trustees to pay the rent directly to them. The date* of incorporation was November 2nd, 1893, but on January 18th, 1894, he paid to Mrs Ingram £7 10?, the amount then due her. He had done so because she and others represented that she was in great need of the money. He also paid others on similar grounds. The Trustees had declined to pay her. For the Temple and- grounds „is liability ended with payment, of. rant. vAs,to>tbe land on which stood the Social Hall-and Kindergarten School he purchased it himself, neither Mr Duggan nor Mr Gawen paid one penny towards it. In the first year he paid £107, and when he began to erect the buildings he paid £360. The Kindergarten building cost £500 or £600. He erected all the "buildings. He declined to say where the money came from. He had not given instructions' to register the certificate of incorporation of the Trustees, against the Kindergarten ; if that had been done it was a great mistake. He got £300 on mortgage from Mr Marks. There was no money of the lady who passed as Mrs j Worthington in it. The Social Hall cost from £800 to £1000. This was all his own ' money. Marks' mortgage and a mortgage for £1000 to the vendors was part of it; all outside these sums ~xbm his own money. He had deeded the land and buildings on the site opposite the Temple to the present trustees, with whom he was joined, for the use of his work among the Students Of Truth. None of the £460 he had spoken of was money obtained from tho Students of Truth, they never had any money interest in the Kindergarten, Sec, property. He knew of no other trustees than those named in the documents before the Court. All the trustees were elected by the Students. None of "Mrs Worthington's " money went towards building the Temple. If -he said that there was £400 of her's in it she was wronc The organ iv the Temple cost £300, of which £200 waa still due, it was a gift to the Students. He (witness) had given a bill of sale over it to Messrs Milner and Thompson. The furniture in the Temple was a gift; the furniture in the dwelling-house belonged to bi v. The furniture on the other side of the street belonged to him, and was lent by him to the Students. He took the profits of all entertainments.

Cross-examined — The trustees of the Temple had no control over the Kindergarteu and Social Hall. When the lease of tho Temple waa drawn, the furniture, by some mistake, was not mentioned in it.

Charles Duggan, a trustee, stated that the total amount of money raised ou debentures was £4957. He could not tell how much had been so raised when the lease was signed. £412 had been paid off debentures and interest £168, leaving £4387 due. Other liabilities amounted to £139. The Temple and house was insured for £1000 ; they cost £5260 to build aud furnish. The money waa found as follows :—Voluntary contributions £743, sale of chairs £43, debentures £4967. They were liable annually for £300 for interest, and their whole revenue was £240, but many of the debentureholders did not claim, probably not one-half asked for interest. Mr Worthington never contributed anything beyond the rent; his receipts had never come up to his expenses. Witness did not know that the land was regialered against the corporation. There was no trust deed between the trustees and Mr Worthington. There was nothing to define their relative positions except the lease to him.

Cross-examined —At the time Mrs Ingram was informed that there were no funds to nay her interest, he and the Board did not know their legal position in relation to the debentures.

Re-examined — The trustees had never taken a legal opinion as to tbeir liability under the debentures. He could not tell how-the corporation came to be registered against the whole of the properties connected with the Students.

This was tbe case for the plaintiff, and Mr Bruges having said that he did not intend to call any witnesses, the argument was adjourned till a day to be fixed.