CHARGES OF FRAUD

Evening Post, Volume CXIX, Issue 30, 5 February 1935, Page 14

CHARGES OF FRAUD

VICKERS AND GILMOUR

CASE. OF CRAFTSMAN CO

TRIAL BEGINS

A number of charges of fraud' in connection with the sale of shares in the Craftsman Manufacturing Company of New Zealand, Ltd., are being tried in the Supreme Court before Mr. Justice Smith and a jury.

The accused are Charles Ernest Vickers and Ernest Mabin Gilmour, for whom Messrs. W. E. Leicester and T. P. McCarthy and Mr. W. P. Rollings appear respectively. Mr. P. S. IC Macassey, Crown Prosecutor, and Mr. D. W. Virtue are appearing for the Crown.

Evidence will be given in the Supreme Court trial similar to that tendered in the Lower Court in November and reported at length in "The Post." CHARGES IN DETAIL. Against Gilmour and Vickers there are joint charges that in 1930, and between then and March, 1931, at Wellington and in other places in New Zealand, they did conspire with each other and with Frederick A. Kelly to defraud J. T.Benge, F. L. Marshall1, E. M. Herrick, J.J. Patterson, W. H. McKinney, W. C. Hanson, W. F. Stevens, and F. Jenness, and others, of divers sums of money; that in or about March, 1931, at Wellington, with intent to defraud, they did obtain from E. M. Herrick £250 by falsely representing that the Craftsman Company had received orders for floodlights from the Wellington Harbour Board to light the Wellington wharves, and.that General Motors, Petone, had placed .an order for about 4000 sets and lamps; that in 1930, at Wellington, with intent "to defraud, they did obtain from W. H. McKinney £200 by falsely representing that sample Craftsman lights were being erected on' the wharves at Wellington, and that if they proved satisfactory orders would be given to the Craftsman Company to have the company's lights erected on all the wharves,, and that the Timaru Harbour Board was doing the same, arid that the Craftsman Company had the patent rights for the Craftsman lights for New Zealand. CHARGES AGAINST VICKERS. The charges against Vickers are that in 1930, at Manaia, with intent to defraud, he obtained through his agent, Archibald David McKinley, from one James John Patterson, the sum of £1000 by falsely representing that the Craftsman Company had purchased the New Zealand patent rights to a" motor-car headlamp reflector, that the dies used in the manufacture of the reflector cost "the New Zealand company £12,000, and that the New Zealand company had been selling 500 sets and reflectors per month since it started in New Zealand; and that in 1930, at Wellington, with intent to defraud, he did obtain from F. Jenness £250 and a diamond ring valued at £500 by falsely representing that the Craftsman Company had the patent rights to a motor-car headlamp reflector which the company was going to manufacture in New Zealand. SEVEN AGAINST GILMOUR. Against Gilmour the charges are:— That about July, 1930, at Wellington, with intent to defraud, he did procure F. L. Marshall •to pay £50 to the Craftsman Company by falsely representing that the Craftsman Company had purchased from one Flight, of Melbourne, the patent rights of a motor-bar headlamp reflector known as "Flight Light"; that about July, 1930, at Wellington, with intent to defraud, he procured' William Claus Hanson to pay the sum of £200 to the Craftsman Company by falsely representing that the company had the patent rights for New, Zealand, that in exchange for a certain number of shares in the New Zealand company one Tlight,'; of Australia, who had the patent rights to a special motor-car headlamp reflector, *had granted to the Craftsman Company the New Zealand patent rights for the reflector, that the Australian . people were not receiving money in connection with the sale of the patent rights, and that they had~only received shares in the New Zealand company; that about December, 1930, at Manaia, with: intent to defraud he did procure J.J. Patterson -to pay to Charles Ernest Vickers £500 by falsely stating in-a letter that "th& lights for our contract with the Harbour Board are now ready for. erection . and on your next: visit to Wellington you will have the pleasure of seeing these in action on thej wharf. We are hoping jtoday to close 'a very large contract with the New Zealand Railways in connection with the headlights of all their buses"; that about December, 1930, at Marton, with intent to- defraud, he 'did procure W. F. Stevens to pay to the Craftsman Company £250 by falsely representing that the company had paid £20,000 for the New Zealand rights of th& Craftsman light, that they had received big contracts for the supply of lights to the Wellington City Council, the Wellington Harbour Board, the New Plymouth Harbour Board, the Wellington Showgrounds, the New Zealand Railway Bus Department, the. Wellington; City Council buses, and a large sale of tram lights to the Wellington City Council, and that the lights were being manufactured in Auckland; "-. that about December, 1930, at Manaia, with intent to defraud, he did procure J. J. Patterson to pay Charles Ernest Vickers £175 by "falsely stating in a letter that "the lights for our contract with the Harbour Board are now ready for erection, and on your next visit to Wellington you will have the pleasure of seeing these in action on the ■ wharf. We are hoping today to> close a very large contract' with the New Zealand Railways in connection with.the headlights for alj their buses"; that about August,: 1930, at Upper Hutt, with intent to defraud, he did procure J. T. Benge to pay £100 to the Craftsman Company by falsely representing that the Craftsman Company- had purchased' the patent rights of a special motor-car headlamp reflector and that the said reflectors were being tried out 'on the trains.

The charge in respect of Benge is repeated against Gilmour with the date September, -1930, substituted for August, 1930. The Crown Prosecutor began his address to the jury outlining • the Crown case when the luncheon adjournment was made. (Proceeding.)