CROWN CASE ENDS

Dominion, Volume 28, Issue 114, 7 February 1935, Page 11

CROWN CASE ENDS

Trial of Gilmour and Vickers CRAFTSMAN COMPANY One Accused Called as Witness by Defence The case for the Crown in the trial of Charles Ernest Vickers and Ernest Matin Gilmour, who are facing charges of conspiracy to defraud and misrepresentation, was concluded in the Supreme Court, Wellington, yesterday, and a start was made with the case for the defence. The trial is before Mr. Justice Smith and a jury. Vickers and Gilmour are jointly charged with conspiracy to defraud and misrepresentation in the sale of shares in the Craftsman Manufacturing Company of New Zealand Ltd. The Crown prosecutor, Mr. P. b. KMacassey, and Mr. D. W. Virtue, are prosecuting. The defence is being conducted by Mr. W. P. Rollings for Gilmour, and Mr. W. E. Leicester and Mr. T. P. McCarthy, for Vickers. The first witness yesterday was a retired farmer of Marton, William I*einess Stevens, who spid he bought -of) shares in his wife’s name on the representations of Gilmour and one Kelly, who said the Craftsman Company had obtained various large contracts for the sale of the Craftsman reflectors. Archibald David McKinley, an insurance agent, deposed that Vickers ia< suggested that witness should sell aOOO shares in the company. Vickers told him the company was selling approximately 500 sets of lights a month and that the company was negotiating with various harbour boards. Witness agreed to sell the shares on commission and he set about it on the information'Vickers had supplied. A man named Patterson, of Manaia, purchased 1000 Shares, witness paying Pattersons cheque for £lOOO into Vickers’s account at the Bank of New South Wales, V ellington. Later witness sold a further 514 shares to others on the trip. New Zealand Patent Rights. • Cross-examined by Mr. Leicester, witness said he told Patterson that the Craftsman Company had bought the patent rights for New Zealand because he understood they had. He did nOu tell Patterson that, the company was selling between 500 and 1000 sets a month. No one verified Vickers s statement that 500 sets were being sold a month, but Vickers’s word was taken William Claus Hanson, coal and wood merchant, of Wellington, related how on the representations of Gilmour he had bought 200 shares in the company and had got nothing back for .the £-00 he put into the concern. Replying to Mr. Rollings, witness said Gilmour had assured him that no money was to be paid to the vendor, Flight, in Australia, by the company for the patent rights' to manufacture in NewZealand. Shares were to be taken by Flight in lieu of cash. If he had known that cash was to be paid to the vendor by the Craftsman Company witness would not have invested. The case for the Crown was completed after several other witnesses had described their purchase of shares, and others again, had stated that their organisations had no record of negotiations with either accused for the purchase of the Craftsman reflectors. Mr. Rollings intimated that he would call no evidence. Vickers’s Arrival From Australia. Mr. Leicester advised that he would call evidence in defence of Vickers. Addressing the jury, counsel submitted that they should consider first the charge of conspiracy. In their minds there should first be established an agreement among Gilmour and Vickers, or Gilmour and Vickers and Kelly, to defraud. It would be unfair to say that Vickers was guilty of conspiracy from the evidence of several witnesses who had made allegations against Gilmour and Kelly. No damaging-infer-ence could be made from the fact that Vickers arrived from Australia with an agreement already made out for the sale to the proposed New Zealand company of the rights for the manufacture here of the light in question. Mr. T. C. A. Hislop was the solicitor to the New Zealand company, and he would have noted anything that was not regular. Counsel said accused was engaged by the man Flight as share sales organiser connected with the Australian company in 1929. In May, 1930, Flight sent him to New- Zealand with a letter of introduction to the manager of the National Bank of New Zealand, who introduced Vickers to Mr. Hislop as a solicitor who would well look after the interests of the proposed New Zealand company. Vickers firmly believed rhe New Zealand company was thoroughly protected in everything it was entitled to receive in the purchase of the rights to manufacture and sell the lights in New Zealand. “To See Company Was Protected.” Mr. Hislop had looked into the question of the rights the company would be getting for the money it would be paying to Flight in Australia, and would not have given his assent to the proposition if he were doubtful. It was, all said and done, to see that the New Zealand company was protected. The essence of the Crown case against Vickers was that he had said that the company had the patent rights for New Zealand, but if misrepresentation was alleged against him under this head then the Crown had to prove that accused knew he was making a false representation. The directors of the company believed it had the patent Tights; so did Vickers. Vickers had not obtained one penny from the company. to which he was not entitled. The accused Vickers stated from the witness-box that up to the age of 23 he-had worked on his father’s farm estate in Victoria. Later he entered an auctioneer’s business, subsequently setting up in a stock auctioneering business of his own. This was very successful, but he had to sell it on account of recurring throat trouble. He became associated with Lionel Flight, vendor of the rights to the lights, Flight ■was operating the Australian Company and witness was appointed to organise sales agencies throughout Australia.

JEn 1930 witness was sent by Flight against his inclination to Now Zealand to look after Flight’s interests when the New Zealand company should be formed. He was given a letter of Introduction to the manager of the National Bank of New Zealand, Wellington, who in turn introduced him to Mr. T. C..A. Hislop. The case was not concluded when the court rose for the day.