FINES AND COSTS TOTAL £207

Press, Volume LXXII, Issue 21775, 6 May 1936, Page 16

FINES AND COSTS TOTAL £207

THIRTY-SIX CHARGES

OF THE r FT

DECISION OF AUCKLAND MAGISTRATE

(PRESS ASSOCIATION TBLEORAM.) AUCKLAND, May 5. Fines and costs totalling £207 6s were imposed on Percy Fraser Hodgson, managing director of the Dominion Mercantile Agency, Ltd., and Frederick William Packer, manager of the firm's Auckland office, by Mr F. K. Hunt, S.M., in the Magistrate's Court. They were each convicted of 36 charges of committing theft by fraudulently omitting to account for or pay part of moneys received from clients under the heading of "court costs." The police contention was that the amounts charged under this heading as "summons fees" were in excess of the actual disbursements.

"This company is the largest of its kind in New Zealand," said Mr Spencer R. Mason, who appeared for the defence, opening his address when the case was resumed. "It has been built up ever 28 years by integrity and trust, and it is suggested that a firm of that kind not only perpetrates a long series of petty thefts, but does so in th: knowledge of its numerous staffs."

Company's Organisation

Mr Mason submitted that the 5s was not a solicitor's fee for issuing a summons, but an office charge almost in the nature of a disbursement to cover the whole of the organisation which the company conducted. It included the typing and preparation of statements of claim and other charges. The company did not sue generally without consulting customers. In fact, it sometimes had difficulty in persuading customers that legal action was noi worth while. There was no suggestion that there was any encouragement of summonses. Sanderson had said in the letter resigning his position that he was going to prosecute. Thr' showed malice, contended counsel. He had since engaged in competitive business, and had flourished the matter in the faces of the Dominion Mercantile Agency's clients. Sanderson had said he had no opportunity of seeing the books; but he had been in charge of the office in Packer's absence. The evidence would show that Sanderson was consumed with a desire to smash the Dominion Mercantile Agency.

Mr Spencer Mason also submitted that there was no evidence to connect Hodgson with the charges. In evidence, Hodgson said "summons fees" were imposed 10 or 12 years ago. He thought all the clients were aware of the "summons fees."

"An Illegal Charge" "The contract between this agency and its clients is one in which the greatest good faith is required," said the magistrate. The court costs were an illegal charge, he added, for such charges could only be made by authorised people. This was to prevent litigation being exploited. In this case the 5s was concealed as having been a disbursement into court. "If a solicitor had done this, I think he would have been dealt with under the Law Practitioners Act, and probably struck off and possibly prosecuted," Mr Hunt said. "I think the subordinate had to do what he was told, but he was a party." Hodgson was fined £5 and Packer 10s on each of 36 charges, with costs £4 14s; but to allow an appeal the magistrate increased the penalty to £5 Is on one charge against each.