A PROPOSED COMPANY

Evening Post, Volume CIX, Issue 125, 29 May 1930, Page 11

A PROPOSED COMPANY

i \ GENERAL MOTORS SUED The hearing of evideneo in support of the claim made ia the Supreme Court by William Gaston Walkley, public accountant, of Hawera, agaiuat General Motors (N.Z.), Ltd., for £563 for an alleged breach of agreement in connection with a proposal to form a distributing company in Wellington for Qeneral Motors' products, was concluded yesterday afternoon, and after counsel's opening address for the defence the Court was adjourned until this morning. His Honour the Chief Justice (Sir Michael Myers) presided. Mr. Spratt, with him Mr. L. K. Wilson, appeared for the plaintiff, and Mr.-H.-F. O'Leary for the defendant. Oscar Lewis Josephson, of Sydney, said he was formerly on the .. staff of General Motors (N.Z.), Ltd., and his duties were to supervise the work of existing retail distributors and to develop new business. Witness then gave details of how Walkley became interested in the proposal to form the Wellington company and of interviews and discussions that had taken placc^ with Mr. Fonnan, managing director of General Motors, and Mr. Barrow, sales manager of that organisation. Mr. Barrow, he said, had intimated to him that if a company could be formed with sufficient capital and run under efficient management the franchise for the Bale of cars and trucks in Wellington would be given to that company. Ultimately, said witness, he was told to instruct Walkley to go ahead and raise the capital, and witness, under instructions, went to Hawera to assist Walkley to raise capital. He remembered distinctly Mr. Forman informing Walkley that if he submitted tangible evidence that he had the necessary capital, he would be given the franchise. Following the interview on 26th February, when Walkley was informed that the deal was off, Barrow told witness that he was profoundly sorry for what had happened, and that he considered he (Barrow), Walkley, and witness had received a "raw deal" from the managing director. Two days later, because of what had happened, he tendered his resignation to Mr. Forman. At that interview, in reply to a question from Mr. Forman as to why he had given the Chevrolet franchise to Walkley, he said he was acting according to instructions, and that Mr. Forman had told Walkley-"he would give him the franchise.' Barrow was called in and Mr. Forman denied having stated that he would give the franchise to Walkley. Barrow said the matter had gone so far that he was not prepared at that stage to make any statement.. To this Mr. Forman had replied to Barrow: "You are the general sales manager of this organisation. You have got me into this mess, and you can —— well get me out of it." ~.,,. To Mr. 0 'Leary, witness said that prior- to 20th January he had not come into contact with Mr. Forman as far as the granting of. a franchise to Walkley was concerned, but after that date he j had no reason to believe that" Walkley: would not be granted the franchise as j soon as he had the necessary capital. No further evidence was called on behalf of the plaintiff. For the defendant company, Mr. O'Leary submitted that Joaephson, who was only a minor officer of the com- 1 pany, had no authority to enter into an agreement with Walkley. Counsel also j submitted that, even accepting the evidence for the plaintiff as to confirmation by Mr. Barrow or even _ Mr. Forman, there was no contract binding on General Motors (N.Z.), Ltd. It was contended that at no time had Josephson been informed that the franchise would go definitely to Walkley. The wholo matter was conditional. The Court then, adjourned until this morning. ;