Cosmetics Case One Christchurch Agency Sold Twice—Witness

Press, Volume CVI, Issue 31124, 29 July 1966, Page 3

Cosmetics Case One Christchurch Agency Sold Twice—Witness

(New Zealand Press Association) AUCKLAND, July 28. Two men who described themselves as principals of an Australian company which had recently completed trade agreements with Russia claimed that they were trying to sell either a hovercraft or a hydrofoil to the Kerridge organisation for use on the Waitemata Harbour, a witness said in the Magistrate’s Court at Auckland today.

The witness, Fairlie Fergus Curry, a Wellington businessman, said he later paid an Auckland company £l2O towards the cost of an agency for the distribution of cosmetics through milkbars and dairies in the Hutt Valley. He said he had not received any cosmetics and his money had not been refunded.

Before the court for the taking of depositions are Patricia Amelda Keane, aged 28, a secretary, and Noel James McGurgan, aged 35, a company representative. They face 18 charges of false pretences and 17 charges of attempted false pretences, involving a total of £62.272 and charges of attempting to destroy and conspiring to destroy company documents.

Curry said he saw Gardner and McGurgan at a Wellington motel after he replied to a newspaper advertisement. Gardner and McGurgan mentioned they were principals on loan from an Australian company called Unigroup and that they had completed trade agreements in Sydney with the Soviet Embassy for distribution of goods in Australia and New Zealand. Curry said the two men showed him a picture of either a hovercraft or a hydrofoil and said they were trying to interest the Kerridge or o _misation in buying one for service on the Auckland harbour. McGurgan described the kind of business they intended setting up, and said it was similar to others being operated in the United States and Australia. Sought Franchise

McGurgan mentioned that £1656 was needed almost immediately to ensure he was granted a franchise. As Curry did not expect to have sufficient capital available for a month or so the matter was dropped for the time being. About a month later, said Curry, he wrote to the company asking if any Wellington franchises were still available. He received two telegrams from McGurgan and later met him in Auckland, where he was told two zones were still available. One of these was in the Hutt Valley and the other was in the eastern suburbs. McGurgan mentioned the company was spending £lB,OOO on advertising immediately, outside of television. Curry said he agreed to take the Hutt Valley zone and gave McGurgan a cheque for £2O as a deposit. On June 14 McGurgan told him in a telephone call that the stock was ready for dispatch, but the company would not send it unless they had a larger deposit. Curry posted a cheque for £lOO that day. McGurgan later told him the stock would be sent out, but it was a pity he had not sent a cheque for something over £3OO, which was 20 per

I- cent, the amount which the a company usually shipped on. McGurgan said the stock was ready to go and it was being sent by air. i j’ Cheque Cashed p Curry said he had received I neither stock nor stands and ? none of his money had been r refunded. i He had tried unsuccessfully to stop payment on the i £lOO cheque. f Enid Lillian Bolton said she i saw an advertisement in the s “Christchurch Star” in April '- and had arranged to meet ? Gardner in a Christchurch ■ motel. After signing the agency ; agreement for marketing cos- - metics through dairies, she s paid a deposit of £415. ? Later, she received a letter s from the company asking for the balance of the money as time for its advertising campaign was running out. Later a man calling himself

Rendall visited her at home and showed her a file of advertising material. He said the advertising campaign would begin on June 18. She gave Rendall the balance of the money in cheques, but had not seen him again. She had received no stock and no refund. John Patrick Lee, a Christchurch accountant, described how he met McGurgan at a Christchurch motel early in May. He was appointed distribution agent for a zone covering the south side of Papanui road to the north side of Lincoln road. McGurgan had said the scheme would become operative on June 6 after an advertising campaign. Lee said stands ;nd stocks of cosmetics were to be delivered on June 6. He rang McGurgan from Christchurch on June 15 to ask when the project was going to be launched and when the location manager, Rendall, would take him round to show him his retail outlets. McGurgan said there had been some difficulty in getting the scheme going because there were people and firms scattered throughout the country, but marketing was to be set in motion about June 23.

Later he said he received 20 cartons of cosmetics and 20 cartons containing stands. The name of only one retail outlet came in the mail, and Rendall did not get in touch with him. Mr J. H. Luxford, S.M., suppressed the name of a Hastings witness and his evidence. No Purchase Order Arnold Trevor Hoyle, a company director, of Christchurch, told how he had bought an agency. When he gave Rendall a post-dated cheque for £1306, the balance after deposit, he said: “I’ve no guarantee you're not going to take this and flip off overseas.” He received 20 cartons of cosmetcs and two lots of 10 cartons of stands. The cartons weighed II tons. Later he found that the agency for the same area he had bought had also been sold to a Mr R. E. Thomas. Hoyle told Mr L. Brown, counsel for McGurgan, that he had not received a purchase order against which he could check the articles he received. This was his own omission. He could not dispute that he had received the full quota to which he was entitled under his contract. lan Vincent Munro, of Wellington, said he had sent two cheques on June 3 to buy an agency. He received 20 display stands and a carton of stationery, but no cosmetics. He had not received a refund from the company.