MAGISTRATE'S COURT.

Evening Star, Issue 11668, 1 October 1901, Page 7

MAGISTRATE'S COURT.

YESTERDAY’S SITTING. ThP case of John Ewir f . v - the Fonrteenmilp Bench Gold Dredging Company—n?i e £53 2s lid, for travelling expenses cla l n Vi £3B for pipes supplied ♦ "the company, and £23 10s for services ,r> j-rcti by plaintiff’s manager and workrC”n —came before the Magistrate’s Court yesterday afternoon, Mr Sim representing the plamtiff and Mr Gallaway appearing /or the defendant company. Mr Sim, in opening for the plamtiff, said that plaintiff Jived at St. Bathans, and when the office n f the company was removed to Dunedin, of course he had to come 'down to the meetings. He was entitled to recover bona fide expenses incurred in the performance of his duty as a director. Counsel quoted authority to show that directors of a companv were entitled to be indemnified against lees and expense incurred in carrying out their duties, :uud that was all that Mr Ewing claimed. His Worship would j, ave to ascertain what were reasonable expenses under the circumstances. As chairman of directors he did a'great deal of work for the company. The pipes referred to were obtained from Mr Ewing. At the time tbev were required it was exceedingly difficult to get pipes from Dunedin, as the foundries were all so busy, ;,nd Mr Ewing, who had a claim at Roxhnrgb. supplied them as a matter of convenience to the company. In claiming the amount stated Mr Ewing was not making an r profit on the pipes, and, landed in Roxburgh from Dunedin, they would have cost the company about 4s a foot. Counsel did not know why the company disputed the claim, and if they held that Mr Ewing as a director had no right to sell them to the company, at any rate he was entitled to get his pipes hack again. Then ns to the third item, Mr Ewing, at the request of tire other directors, instructed liis men, who were working on the claim at Bald Hill Flat, to carry out the service lor which ho now sought to recover. It was an advantage to the company to have experienced men to mark out the water race, and Mr Ewing was entitled to be reimbursed what he paid them.—Evidence was given by David Robertson (manager of the Alexandra Bonanza claim), who said that in August, 1900., he acted as manager for the Fourteen-mile Beach Company.— Cross-examined by Mr Gallaway; Who appointed you manager?— The directors.— Who actually appointed, you? Was it Mr Ewing? I don't remember now.—Had you any interview with anybody except Mr Ewing?—No.—The negotiations for the snpply of the pipes, were' they made entirely with Mr Ewing?—Certainly.—Was if yon who certified the account for the cartage of the pipes?—l suppose I did, I do not remember if I ever saw the account. -Then I suppose you must have measured the pipes?—Yes.—As a matter of fact, were all these pipes used in connection with the company?— No. they were not. —■ What became of them?— They are there ret. —How do you explain that the company have not paid for them?—l don’t know.—Would you be surprised to know that there arc 1,400 ft of pipes lying there?

- - That is nonsense.—Alexander MTherson (manager for Mr Ewing) gave evidence that ho was in the employ of the company before the last witness, and gave details of his work in connection with marking off the water race.—Thomas Christopher Donnelly (mine manager, Matakanni) said that ho was one of the original directors of the company. The office was first of all in Dunedin, and was then shifted to Matakanni, where the directors’ meetings were held. Tho directors decided to mark out a water race and arrange for the supply < f electric power. The currying ont of the proposal was left to Mr Ewing, to save expense.—Cross-examined : Can you rememIkt when Mr Ewing was authorised to do this?—No.—,Can you say at what meeting? —•No.—Wore you present at all the meetings?—Yes.—Was there ever a resolution of the directors on the subject?—lt was agreed upon.—Do you remember who moved the resolution?—lt was discussed, and agreed that Mr Ewing should do the work. - -Can yon remember if there was a resolution passed that was not put in the minute book?— There are any amount of things discussed the secretary does not* take any notice of.—lf there was such a resolution, was it moved by Mr Ewing?—lt may have been.—lf Air Ewing moved the resolution and subsequently signed the minutes, is; it not extraordinary that it is not in the minute book?—No.—David Crawford (secretary to the company) produced the company's minute hook, and in the course of his evidence said that there was no record of any resolution authorising Air Ewing to do the work. There was a resolution about tho first lot of 18in pipes in the hooks, but the first he beard of the second lot was when he received a letter from Air Ewing in January lust about them.—Plaintiff gave evidence relative to the expense charge when visiting Dunedin. On one occasion he said that a dispute had arisen about the appointment of a dredge-master, who bad been put on by the Dunedin directors without consulting the country directors. He asked for a meeting to state his objections to the man, who was regarded as unsuitable. He and Mr Donnelly asked the Dunedin directors to fix a oay, which was done, but on the eve of Ihe meeting he received a telegram saying that it was postponed. A fortnight passed without another date being fixed, and then he fixed one himself. When he came down to Dunedin ho found one of the directors was absent, and they refused to have a meeting because they' hud not a majority. He was thus kept waiting here six days before a meeting was held. As to tho first lot of 18in pipes, he, as chairman of directors, had to see that they were got, and he, tried to_huy them from several others. He sold 1,050 ft to the company at os rd per foot, and stipulated that they should he passed by an independent man.' Ho had since sold pipes of the same quality for ss. They would cost 7s a foot landed'in Roxburgh now. As to the 9in pipes now charged for, they were required for a by-wash—Cross-examined ; He was practically the directorate up to the time he resigned. Since then there had been practically no directorate. They could not expect people connected with twenty or thirty companies to do the work properly. He considered he. made a great concession in selling the company the pipes at all.—Counsel: Will you tell us where you got the authoritr to supply the second lot of pipes?—My authority was that they were wanted.— Ami did not get any authority from the company to do it?— There was no time. The directors never interfered, and did nothing except make calls.' They got tired if _ the meetings lasted more than fifteen minutes.—Did you send in any claim for these pipes before you severed your connection with the company?—l made my claim as soon as I saw fit.—How long were the pipes in use when you sold them to the company ?-About four or five years. -Air Rim said that he had no further evidence to call.—At this stage (4.30 pm) the case was adjourned till Eridav. *