THE COLONIAL BANK. DESTRUCTION OF BOOKS AND PAPERS

Press, Volume LXII, Issue 12497, 7 May 1906, Page 3

THE COLONIAL BANK.

DESTRUCTION OF BOOKS AND PAPERS

MOTION BY Y. M. BRAUND.

(-I'KiiAi. to **thk rr.i:ss.") IH'NKDIN. May ."». . T\r.< m-rn.ii:_ Mi* Ji>tice Fd'waids ; ;t':d iMr C-.Kir.vr sat iv f-:n:(i> t,> hoar Mr Yic:cr M.m-iie Braund i:. re-' .-;rcr to a motion *';r*il t'.ie c■:<]'. r m:i:i * on tho 3('r;i Apiil. f!:-n:>yi!*.*i :!,-• :.;>;■!:- ---cation for au ord< r tii * .d.-;-<*t 3lr Wil:i;ui:> for th-.** ' ;;on ci tlte l>r.<>ks ;:rA p.ip. :*- <-i t':- 1 C.tloniai Bank, b* rt-v;.-.•.. i. uyii t!i..----t-jrourid that the books and p.-;;>.->:s v. ii! be riO'iir.d in an acti-on <*>:r.!i)!-:i;'-i i:i by Mr Brau.-ul !!:-■ lion. G. McL-a:i and M r P. C. Void. .-.:; d niton di-.* further •xro-.intl th:.t Mr liraund int-.-itiU to conme mv ]>:i:-.-<s-i----ii:vjr> ii train-: tli. l :ii| iid.i*t :s. (!-;:ii:i!i_ daina_ -■- or c mpeii-satioii lor niisic-aiie.-at: 1 bleach of t:u.-t. ii: that, they have 1..-en guilty <:f impiopriety in not. hriiej;-t.-itr •-'.'k* diroci-..:-. h-ioif tho (o.irt to :,i-k lor an order up.*:! the (i:roei<;;'s sindiar t> til; I .t -whicli w;ir> mado iit to th,e Kxchan-j;--*' IJ.i iiii i !■.-_ C.::np;n:y. .Mr, i'ltimi.l app-:i:-.-d in pe*i-ou. and Mr' .1. F. M. l-M-or r.-i>.--0.v.-:i!ed tii:.* oliicia' ; hijuidatcr. Mr C. Graham. ! Th-.' B nc*!i :;■:>.d tin- point, t lt.it io ' perh.m. eoulfl intoi*ver.e in a liquidation i v,h,. had no lwiif. .-tandi. t.i'iat wa-t t<* ; >-.iy unlit-, lie was a d-.u* or a ' cfc.tributf.iy or a creditor. | Mr Bramul ropiied that he wats a : bona I'u.l-' he ;.-fie.a:y. Ho wais at torn .'V tor tli- actual balder of the .«-hareii. Mr Jus'ic' (i. (]);-i*: 'J ho r:;Ju you -I'.tt'.r ,-t you ixj.f-:-s.-. i.~i hunted to a contributory or a ci editor. Mr Braur.d: Y«,-u did no*, rai.-e iiii--i;i chambei'ts. Mr .Justice CVopor: Why sliould 1 liave done Pc? I a-vsunietl every! ni:i;r 1:1 \ tair t i veur. Mr Br:iti!i<l: I triad -.-> ac! ot. you:* '■ IJotiour't? advice, but circuni*sLaucv.*> . Mr Justice Cia-per: 1 did not '"link . it, the pia p.-r fnucLio,n ol a iudtro to '•. advice a ii.i_ra:it at ail. Mr Bra und: If it, had been made oh-ar . to in.-, a- I submit it tsirand have ln-en. ' that n.y statu* m a.s ch,'iih'.n*j;-.'ti, 1 would *Mt hcive -aait'd h'-re ;ind wastwi niv tdne. I take it that should have been , doti'.-. .Ml* ,lu.-:ic" Fdward.s: Not at all. Ibis not L-lippo-ed to l::i'.e' everything about a c*a.»« iat- liis linger ends. Porha|"» he has not even rood the papers \ betoif.' cmniny, into Courl. Mr Biamifl Mibmit.twl thaf lie ckai'dy had au inte.i*e.-*t in the 'Jl_ s!wrens. His money w;us iuvei,ied in those shares. Before t-he win<l.ing-up by tmn>loj* all the intcri'-t in those shares ber-atne \\\<. \{ the Court did not jtranl the order «i gro>.s jnjn.-tice would be j.-or-pc'.ratiHl in the name of justice, and surely their Honours were there to prevent that. Mr .Justice Cooper: If you say that ! this order acts unjustly to you, that i-s your own fault for .not -t-ikinic proper ; [iroceedings. You have, had five year- j in which to take tihcnt, and twelve | inoTitih.s or more- before the expiiat.ion i of Mr J notice William's order. The meaning of it. wa.s tlwit where there was a right tlie Court liad power to J enforce. j Mr Liraund repeated that if this i point had been made cleiir to him at the last hearing ho would have made a fresh motion iv the name of an in-tli- j vidua! r-hareholder. ! Mr Ju-tiee Cooper said" that the mis- '-, take Mr Jlraund had made was in on-' twing on a highly t-eclinio.il without takinj; le-j;al advice. Mr Bra und rsaid that he bad endoav- I on red i.f> act uj) to wlwit his Ilunour [ i::id said ul the former btarine*, but. j he* h;id been unuhle to do so for rcajon.s which he did not wksh to f-rtatc. He .siihuiitted that tiu-re was no mention | in Mr Justice Cooper's judgment on his j former motion of the que-tion oi .status. Tie did not «i>k for ins>j>octiou ; ot tlie book'i, i& his Honour had ssoomed to a.s~ut>K>. All he asked'wn«s that the books whicli, lie alleged, contain! d the record cf a fraud c:t tho shareholders of the Bank bo sav'-d from threatened destructicn. He maintained that thete were several &ectiou-s which tfliowcd ' i that the hooks were producible. His ; affidavit filed that morning .-.-howed that \ hp had been in oommunicat icn with tho , shareholders from the commencement , of the liquidation until the pre-ont, i with the view of ari-ivin.t; at some com- | m-on cour-e of action ter the jroncral | benelit of t,iic:-e Mho are i lit ores tetl in 1 he : windnit!; up, and tt.at ho repi-e-<-u!e;i | shareholders holdint*; with a total ■ paid-up capiUd of about .till). Of)') cre<lit-ed i thereon, lie wa.s satisfied that if he I won.* allowed 'to produce the hooks I hf. would l«t able to suhstan- : liate fraud. It he couhl sub- j stauliafo t\ hat he a!h'.rj;e<l in th* pate- ; iiteiit of claim he would .-how one oi 'the most serious cas-'s known lo the hnaiu'ial world. There were peculiar te.:itur<'- in Cf>ime<;ion with 1 ho. who!" matter whicli rendered it absolutely rieccr-sary that ' their Honour* should take as broad a, view !.hi'v ]■*-;*> ibly could in retrard to tlie appli«iiion. on the ground of public policy, so that the action bo tried. If their Honour- refused the order they mu-i see that if these men who were charged were guilty they wouid e.-eape the con.-i^iuenees. Mr Justice Edwards paid he did not think mi. though it might lie so. From tho statement of claim ho judged that there would be enough evidence in the balance-**hcei and the agreement referred i to. j Mr Braund •satd flic difficulty was ! that to prove Mutt tin- offences allegd j were committed ktiowintrly, tho hook-* j ;nti-r be produced. Tt he -ucre-ded in j his ac'ion every .-Itai eho'der wit*) had ! purcha-r-il on tlie -ti'-ngth of the bal- j .'ince-:--heets compbiin.'-rl of. -would I.ire a ! right to bi*ing acien-. and recover from I th»o men. T!ds tl'in't b-ad Iw-n going I on ■during abcu; hali 'bo lii ■ of the j bank, and during th*' las' tv."nry yeanall who bought in *■*. ore misled by the balance-sheets. Therefore he maintained that the boook*< w.re within the -scope of the powers of di--<-o\< it. lie contended ibat the whrle wording ?>\v .Ttisti-t-* Willijim-'- jiif'gmeni v, a- in tlio direction of refraining to do injustice ■ "> anyi'ody. and in th? di roc'ion of ■--> ae'ii'g'as not *o -title in(|uirv. if th* Coiii t wero againiNt him on the *xdir.s now r.ihv'd lie would adc for a '■n-ren->ion of fhe ord■■r, -o a- M f-.V.ow of an application to a*.-end the li.-t oi con-tri-butorie-. by making him a con'ribu-j torv. -ecing that iv fa'/t he was a .--have- j holder, thone-li ur.rogisb-i d. lb* had! ---Ir-Ti a strong c:r-' tl'at he would go on : with if even if f'i" <h*-tnicticn of the! books order-d. The at'-wer In- j wn.s getting from 'he shnr holders * g-ne-ally was tha: it !iop<! s- to| fi z)\~ for ibe nrepervr.'ion of ; boo!-.-, bid if tliev were do--'royed the [ commercial reoo'-ition of >'••!-- coloj-y j wo'-ld b- lak-n to i*- *''v-!*:dat.;. ■-■>.. It was a mer-t nn*o-ec--d *nted th ; ng for a bank to d's!-av bv-.',:s. Prcbahly ih-ov ivoii'd rat d.-.'r.i.v them in fact, th ngl. they m*gh«- l.» ''.-'-yd fo tl"> worid and h> imrc -.-ib'- to him. Th-' C">'irt 1 i -cl -riven their sanction to an nrr wlreh ts-n'"l n •: l.aye b----i c.----*-|--l cut in *he r.r.'linarv cnrs>. '1 im C'onrr had 1 ft th- }..,. r .h :v 0,>.» -t-n-i'v r-cha-g* tl-r m'ei. Ib *h.e,-;* that asi tli-> Hank or N'-'.v Z-a;a"d •.'.-(■■■ t'-r> :•!> cltre owners of **ho b >e!<s. th-. ord-r cf th-, C-vtrt -hould b- an-.ulied i ar.fl the ba*:k r* r eu' 1 ».-■> :• It to , do wlia' t'» -•;- 'ik i ah'-i- th- :>:. yj,- Joe*'.;-. F. Iwards sa:d that havt'-g r --,; !; v 1,-.tor' f !: c Cm;: wi'h <•;:.• apjib-c-uioii, Mr BiaitnJ ej-.Ci i.y. ar-k im*

something dee in the middle of hi.s J argument. -Mr Brmnd said that it was clear from a lot tor ho had from the hank i tha: th-y considered themselves, b'mnd jby tho ordor of tho Court ro de-tioy I the bo-<-, whatever they might be de-j ' .-iron* of doing orh T.\ise. lie detailed ! f-ii( >t:r*--t which lie had put to tho Offi-j eia! A-- : g*'»--. H- ' M ■•" Braundl main-j ,tai!*:;l 'as an old bankor) tliat t hoy | • v. ■-■:(- fa*:* qucd Ion;-, and that they , shou d have !>.,-"! ar-wered. Mr F.'.wards said thai Mr nr*u*:>d ma ; !'••-* • stabli-h his right to a-k •'-■.-.*• *j I -:-1 l -s. His Ibnunr also j ti*;.--*' a* -■ •'.,-• :• ! vancy of this point to ■.ir th.-.t r .■;- ;-)w before tho Court. j Mr P.rrnnri >nid t'liat ho was argumc j t ■-> n'- •-.*.• t : >-' jir-tio" of his application to j n-r--v\-.- tin- Ik>"';*. which ho had oor.r j in':eed in Wellington, and an action ■ which v.-osihl l>o commenced as soon as lie got hack against the directors, liquidri'To*-, and c'h-'rs. Mr -Tust'e- Edwards: If you think w.-> :!'•.'> to try pooplo and Srid th-sm .liiilty -.-:*. tliis snr: of material you arc very. v. y much nii.-takei:. 1\I:* l»ia:nu! said that if hf could «=hil>- '■ a p'inia ca-o again:-* tlu-s? j ~i|!ii'i:i:oi> i'np.r would -bo an additional; i"v tin? Court to save the hook*, j I 1!: - C'ir-t _ : vr> its drciision on Wcd-n-.sday. I' is probable that Mi* Braund will a-k for .-fay of execution, and ref|i*n>t leave to appeal if the decision '.■/•l-s a_.iiiior, liim.