FRAUD CHARGES

Press, Volume LXX, Issue 21323, 16 November 1934, Page 6

FRAUD CHARGES

CASE AGAINST TWO MEN CONTINUED y SHARES IN A COMPANY (PRESS ASSOCIITIOM TELEGKAM.) WELLINGTON, November 15. The case of the Craftsman Manufacturing Company, alleging fraud against Charles Ernest Vickers and Ernest Mabin Gilmour, chiefly concerning orders for motor-car headlights, was continued in the Supreme Court to-day. William Hugh McKinncy, chemist, of Auckland, said he met the accused in Wellington. They represented that the Wellington and Timaru wharves were lit by the company's light, and witness took 200 shares. Later, Gilmour tried to induce him to take 500 more, telling him all the Hutt railway buses were being fitted with the lights, and also some tennis courts. Witness applied for more shares, and on that understanding he was made a director of the company. Witness paid £SOO for (he shares. Subsequently he was notified he had been appointed a director in place of Gilmour, who had resigned. Had there been no promise of good business, he would not have taken shares, whether he was appointed a director or not. William Ferness Stevens, retired farmer, of Marton, described the representations made to him by Gilmour and Kelly, as- a result of which he subscribed for shares. On being cross-examined, witness said he was already a shareholder when he saw Gilmour, and the main reason why he took the first lot of shares was that he had a light on his car, and it was very satisfactory. Another purchaser of shares, Francis Lionel Marshall, carrier, of Wellington, gave similar evidence, and said they were very good lights. Purchase of Shares John Patterson, of Manaia, said he bought 1000 shares in the Craftsman' Company, giving a cheque for £IOOO in payment. Before he purchased the shares, two men, Kelly and McKinley, called and told him they had bought the rights of the Craftsman Light for £15,000, and proposed to manufacture. In December, 1930, he signed a cheque for £SOO for the purchase of 500 more shares. Later he | paid £175 for more shares, and still later £325 for more shares. Kelly and McKinley said that the extra capiI tal was required for four sites the company had bought in the four chief cities.

William Claus Hanson, of Wellington, said he bought 200 shares in the Craftsman Company, having been approached in the matter by a man named Lavin, who had with him some lamp reflectors. Lavin said he would bring his principal, Gilmour, to see the witness, and the same night Lavin and Gilmour came back in a car. Gilmour did all the talking, and he gave a demonstration with the lights on the car. Royalties and Shares Frederick Jenness, a jeweller, said Vickers offered to sell him 500 shares and a half, share in flight royalties for £250 and a diamond ring valued at £SOO. He accepted, but he had never received any royalties a,nd the transfer of shares was never registered in the company's books. Evidence was given by Lota Coogan that from June, 1930, to April, 1931, she was a typist in the Craftsman Company's office, where Gilmour was manager, and that Vickers was there practically every day. He was not working for the company, but was attending to his business as attorney.

She did -work for Vickers and Gilmour was agreeable to this, but he said the company's work was to have preference. The witness went to Australia in April, 1931, and signed an agreement to go with Vickers, Gilmour, and Kelly to South Africa, where they were going to form a company. She was given £l5O to cover expenses, but the trip was cancelled because she understood Gilmour and Vickers had quarrelled in Melbourne. The witness said that at one time Gilmour had mentioned that she was .not to use the company's letter paper for Vickers's work.

The hearing was adjourned till tomorrow.