SALE OF SHARES

Evening Post, Volume CXIX, Issue 30, 5 February 1935, Page 10

SALE OF SHARES

CONSPIRACY CHARGES

TRIAL PROCEEDING

The trial of Ernest Makin Gilmour and Charles Ernest Vickers for conspiring to defraud ana for false pretence charges in connection with the sale of venders' and contributing shares of the Craftsman Company, which commenced yesterday afternoon was resumed this morning. Mr. Justice Smith is on the Bench, Mr. P. s K. Macassey, Crown Prosecutor, and Mr. D. W. Virtue are prosecuting, and Mr. W. P. Rollings for Gilmour and Messrs. W. E. Leicester and T. P. McCarthy for Vickers are defending counsel. -

Harry Valentine Roberts, liquidator of the Craftsman Company appointed by the shareholders on July 8, 1931, said he had been auditor since the inception of the company. He had been secretary for the company, during the last week. Gilmour had been managing director and secretary. On March 31, 1931, 10,741 vender shares had been sold by Flight. Another 900 shares were sold by the vender, were paid for, but never transferred. Vickers was Flight's attorney. Of the 18,000 contributing shares 8632 were sold to the public as at February 17, 1931. The nominal capital of the company was £30,000. Only , about 200 sets- of headlamps were sold in New Zealand by the company, at a profit of under £23. ■Witness was cross-examined by Mr. Leicester as to the directorate and management of the company, but objection was made by Mr. Macassey, who contended that the management of the company had nothing to do with the present trial. PRIVATE PROSECUTION? "It is a private prosecution, if your Honour pleases—at least I assume it is still so, as I see Mr. Virtue is still appearing," said Mr. Leicester. "The defence alleges mismanagement and the accused are ,being made the scapegoats." Mr. 'Macassey protested that that was not so, and his Honour remarked that that did not concern the Court at that stage.' • His Honour (to the Crown Prosecutor): I think Mr. Leicester is merely impugning the directors. The questions were allowed. Harry Valentine Roberts, re-examin-ed, said he had heard Mr. Leicester state that the directors were charged with maladministration and that it was they who had suggested the present prosecution of the accused. "As liquidator I had investigations made as to these allegations of fraudulent representations," said witness. "I did that as liquidator. Detective-Ser-geant Jarrold interviewed these men— the men who are giving evidence—and his report was submitted to me. I obtained the authority of Mr. Justice MacGregor for leave to prosecute." Lota Olive. Coogan said that she answered ail advertisement in June, 1930, for a typist and was. engaged by the Craftsman Company at £2 10s a week. She saw Gilmour and «Vickers. She left the company in April, 1931. Vickers was in the office a great deal seeing Gilmour. He did not work for the company, but was attorney for Lionel Flight. Witness did typing work for Vickers and he paid for it. Witness typed the minutes of all the'meetings and the statutory meeting. SUBSEQUENT ACTS. An argument ensued as to a point of adrhissibility of Miss Coogani who spoke of the leaving New Zealand of Kelly and accused. . Mr. Rollings objected to evidence relating- to the subsequent acts and statements of any of the accused being admitted. He quoted authority but his Honour, after noting the objections, ruled that- evidence of subsequent conduct or statements was admissible. The witness* said that three agreements were signed by Kelly, Gilmour, and Vickers, and witness was to go with them to South Africa as typist for the new company the accused proposed to form there. She was was to receive £150, to cover wages and expenses in Australia; £50 each was paid by Kelly, Gilmour, and Vickers. Cross-examined by Mr. Rollings witness said she could recognise her own typewriting. Page 58 of the minutebook had been typed by her typewriter. The next page did not seem to have been typed by the same typewriter. She did not know- which was typed with her typewriter. At one time it had been said by Mr. Gilmour that Vickers was not to use the letterheads of the company. There had been no definite instructions, but it had been mentioned to witness. Harold Murphy, a shareholder of the Craftsman Company, said he had been appointed a director at the statutory meeting. He did not think he had missed a meeting. He remembered Gilmour going to Australia for a month and then noticed that Vickers seemed to be about the office too much. Witness mentioned that to the other directors and to Gilmour on his return. Gilmour said Vickers was a great help and had every right to be there. A new lock was put on the door by witness and the other directors. BOOK LOCKED. How a directors' meeting called was cancelled and how witness and other directors called at the office and found the boardroom locked was described by witness. They decided to hold a meeting at the top of the stairs. They were told that Gilmour had taken the key. The minute-book was locked in the boardroom. The other directors, Walker, Fitchett, and witness decided to go to the bank and find how the account stood. A lot of cheques totalling £1400 had been drawn without the knowledge of the party. Gilmour and Robertson had signed the cheques. Cross-examined by Mr. Rollings, witness said that he had moved in February at a meeting that no moneys be sent to Australia until there had been set in New Zealand the service station proposed. Mr. Fitchett had seconded th emotion. The chariman, Mr. Gilmour, had said there was no need for a resolution ■ iecause. it needed two directors to sign cheques and all were of the same mind. Then four of the directors were in favour of the proposal,, but Mr. Gilmour said he would not accept it as a resolution Witness objected later when it was not recorded in the minutes. The minutes, as recorded were correct as far as witness knew. (Proceeding.)