CLAIM OF THREE MILLIONS

Evening Star, Issue 17548, 31 December 1920, Page 12

CLAIM OF THREE MILLIONS

ACTION AGAINST COMMONWEALTH. A "case involving the huge sum of £3,000,000 was heard in Sydney this month, in which the John Cooke' and Co. Proprietary and other vendors of skinwool under the War Precautions Act during the 1918-19-20 seasons proceeded against the Commonwealth Government and the Central Wool Committee. Mr Maughan, K.C. (for plaintiffs) asked for an ocder that the Commonwealth and the -Central-Wool Committee should not hand over to the proposed company money or assets retained to meet thjj claims o'f the skin-wool vendors without making proVision to meet those claims, He said that the skin-wool vendors desired to do nothing to p-ejudice the proposed scheme, which they.thought a-good one, but^desired to have their rights against present and future profits fully protected. ,Mr Leverrier, K.C. (for the Commonwealth), said that the Commonwealth would abide by the Conrt's" judgment, but would not_ undertake -to enter the claims against existing f funds in; anticipation of the plaintiffs being successful. •, If sustained,, the claims would be satisfied out of the public credit. ' Mr Maughan protested that the public credit was worthless . from , the point of view of his clients. It could not be regarded as a sufficient security in the circumstances. After the existing fund was exhausted Parliament and the.people were liable to repudiate the claims rather than face the prospect of additional taxation to meet an amount of £3,000,000.

Mr Leverrier replied that the Commonwealth would accept full .responsibility for any money which it owed.' Mr Justice Rich remarked that he would not permit the Commonwealth to "wriggle" out of any legitimate claim. Mr Maughan alleged that the Commonwealth had already repudiated the Central Wool Committee in connection with other matters. His Honor: I cannot believe that Parliament would repudiate any of its obligations. Mr Leverrier contended that, in fact, the Central Wool Committee was merely an agency of the Government. Without going into the merits of the case at that stage, 1 he contended that the vendors of skin-wool had no claim against the Government. Mr Justice Rich questioned Mr Maughan's seriousness in suggesting that the Government would repudiate "claims which had been found by the Court to be good. Mr Maughan replied that he was serious when he made the suggestion. After further argument Mr Maughan accepted the assurance of the Government in good faith that it would undertake responsibility in of a'nv claim which migF be sanctioned bv the" Court.