ALLEGED FRAUD

Evening Post, Volume CXVIII, Issue 121, 19 November 1934, Page 11

ALLEGED FRAUD

FLOODLIGHTS CASE

BOTH ACCUSED FOR TRIAL

The last witness for the prosecution iii the Case iir which. Charles. ■• Ernest Vickers, a cierk, aged 44, and Ernest Mabin Gilmour, an accountant, aged 39, are facing allegations of fraud in connection with the Crftsman Manufacturing Company of New. Zealand, Ltd., was heard in the Magistrate's Court today, and at the- conclusion of his evidence and submissions by counsel, the accused, who pleaded not guilty, wore committed to the Supreme Court for trial. .. . '' . '• r '. ■ ■ Mr. H. V P. Lawry, S.M.,was on the Bench; The Crown. Prosecutor ' (Mr. P. S. K. Macassey) and Mr. D. W. Virtue conducted the prosecution, Mr; W. P. Boilings appeared for Gilmour, and Mr. W. E. 'Leicester and'; Mr. T. P. 'McCarthy for Vickers. ...

Archibald David MeKinley, an insurance agent, said that in September, 1930, ho met Vickers, who said ho was representing the Flight Light of Australia as attorney for Flight. Ho said that the Craftsman Manufacturing Company was being floated and it was intended to place oh the market a reflector known as Flight Light. He suggested that witness take up a parcel of 5000 £1 shares to sell. Tickers stated that tho Australian company was well established in all States, and that capital was being raised to buy the patent rights for the New Zealand company. Tho price, he said, was £ 12,000 for patent -rights and dies. The money was required for the flnnace of the Australian company. • Vickers told the witness that there were many salesmen selling sets of lights throughout New Zealand. Witness said he agreed to dispose of the shares, his commission being 25 per cent. The witness related negotiations he had with J. J. Paterson regarding the purchaso of shares, and said -that Paterson agreed to purchase.looo shares. Altogether witness sold 1514 shares. , To Mr. Leicester, witness said that ho received a commission, at 25 per cent., of £1514. About ,two months after the sale of shares to Paterson witness received a letter from Vickers requesting him to cease operations. To Mr. Virtue, witness said that in 1932 Viekers, who was in South Africa, wrote tQ him offering him a contract to sell 6000 shares in the South African company. Vickers said ho was prepared to givo witness 10s a share commission, and mentioned that ( the £3000 witness would earn in South African money would, on tho present rate of exchange, be about £4000 ,m New Zealand money. Following submissions by counsel, the accused were commit tod. for trial.