MOTOR TRANSACTIONS'

Evening Star, Issue 19614, 21 July 1927, Page 4

MOTOR TRANSACTIONS'

FALSE PRETENCES ALLEGED CHARGES AGAINST CAMPBELL BROTHERS AND OTHERS The hearing of the cases in which five well-known local business men were charged with fraud in connection with the financing of motor car transactions was continued before Sir J. R. Bartholomew. S.M., at tho City Rolice Court yesterday afternoon. Tho accused were Alexander Campbell. James Shaw Campbell; Samuel Campbell, Charles Janies Thomas Alexander Lowcry, and Frederick William Jiaiulield. Tho charges wore as follow: On December 22, 1925, with intent defraud, obtained from tho Otago and Southland Finance Corporation, Ltd., £435 In’ falsely representing that Robert Scott Groy had purchased a, new Delate raptor car, valued at j£Bso, aud Lad i>aul a dodeposit of £215; on February 15, 192 b, obtained from the Otago and Southland 1 inaucc Corporation, Ltd., tho sum of £515 by falsely representing that James Shaw Campbell had purchased a new Star motor car, valued at £775, and had paid a deposit of £260; on February 15 192 G. obtained from the Traders’ Fman-o Corporation, Ltd., £515 by falsely representing that 'Alexander Campbell had purchased a now Star motor car, rallied at £775, and had paid a deposit: of £260: on February 15, had obtained £565 from tho Traders’ Finance Corporation, Ltd., by falsely representing that Samuel Campbell had purchased a now Star motor car, valued at. £550, and had paid a. deposit of £265; on March 1, 1926, obtained from the Otago and Southland Finance Corporation £515 by falsely representing that Charles James Lowery had purchased a new Star motor oar, valued at £775, aiud bad paid a deposit, of £260: on March 2(i, 1026, obtained from tho Otago and Southland Finance Corporation, Ltd., £660 by falsely representing that Walter Moms Lowe had purchased a new Star motor car, valued at £495. and had paid a deposit of £165.

Mr W. L. Moore appeared for iho Campbells. Mr W. G. Huy for Bamfield, anti Mr W. Ward tor Lowery. Evidence was given 1 >y Hugh Blake Burdokin. general manager of Hie Otago and {southland Finance Corporation, who stated that.it was. a part, of his corporation’s business to provide finance for time-payment sales by motor dealers. Witness went into details as to the methods adopted, stating that not more than two-thirds of the purchase price of a vehicle was advanced. In the event of the promissory notes being met at maturity the corporation called upon those who endorsed the notes to protect their endorsement. If tho deposit was less than one-third the corporation would not entertain the application. Witness dealt with the application received for_ an advance ot £435 in connection with tho alleged sale of a car to R. S. Grey. The advance jvas made and a cheque paid over. An advance of £515 -was made on February IG, both the applications being signed by C. J. Lowery, on behalf of N.Z. Motoring and Engineering Company. An application was received on March 1 for an advance of £515, and a cheque wars issued tho same day. On March 26 a request was received for an advance of £630, these two applications being signed by A. .Campbell on behalf of the company. , Witness explained that they had a lieu over the documents. Tho corporation had received all tho moneys advanced on the transactions. Tlie Chief Detective: How did that come about? Witness said that some of the promissory notes were met in the usual way. His suspicious were aroused that all tho transactions were not what they purported to be. and his directors made a demand on the company for a sum of something over £9OO. This was tho balance Giving on tho transactions that in the opinion of his directors were not satisfactory. A settlement was made through tno corporation’s solicitors. Robert Scott 'Grey, motor salesman, Invercargill, formerly in the employ of the N.Z. Motor and Engineering Company, of Dunedin, said ho had signed tho documents produced. Mr Alex. Campbell had asked him to sign tho hire-purchase agreement in connection with the sale of the Deluge car, the reason given being that they required money to lift cars from bond ior exhibiting at the Exhibition. Witness had been assured that it would be quit© all right, it was juai a matter of business. Mr Campbell had added that tho papers would bo lifted later. There was no understanding as to liability, and witness took possession of no car. He could not say whether any of the documents were filled in or not when ho signed them. He registered the car to which tho documents referred in his own name, but the fees wore paid by tho company. Ho paid nothing at all in respect to tho transaction. He signed the documents because ho thought, as a servant, it was a matter of d.uty. Ho had no personal knowledge of tire car having been subsequently sold. Malcolm Stevenson, contractor, deposed to having purchased a Delage car from tho N.Z. Motor and Engineering Company about March 30, 1926. Walter Morris Lowe, a traveller, said that during tho early paH of 1926 he was in the employ of tho New Zealand Motoring and Engineering Company as a shop assistant. He admitted signing a biro purchase agreement, tho proposals for insurance and tiie promissory notes (produced). Mr Lowery had called him into his office and asked him whether ho would sign the agreement, stating that there was nothing wrong with'it. Ho explained that there had been some difficulty in getting cars out. of bond, and that if witness signed the agreement it would assist tho firm. The promissory notes wore blank when ho signed them, and as far as lie could remember, tho full particulars wore not on the agre-meut. He was only in the office for a. short time. He had paid nothing respecting the transactions. Witness subsequently rang up A. Campbell about the matter, and asked to !:♦ released from his obligation. Campbell replied that be would have the matter attended to, but, though ho communicated with him on other occasions, nothing was done. Mr Hay: I suppose you thought you would be liable? Witness: I found that I had signed the document in absolute ignorance of it* legal import, Tho transaction was not genuine. To Mr Moore: Ho did not know whether the car was registered in his name or not. He did not register the car. Witness explained that he rang up Peel, who told him that the matter had been attended to. The first time he rang up Campbell he had not received a notice from. the Post Office about tho re-registration of the car. Mr Moore: You did get a notice from the Post Office, then,?. Witness: Now you mention it, I recollect that I did. Detective Beer said that in June 21 last he seized, under warrant, the books of the New Zealand Motor and Engineering Company. Ho later saw Mr Nieol, solicitor for Campbell Bros., who informed him that Ids clients were quite prepared to give witness every assistance required. On July 3 wi Lucre took a statement from Alexander Campbell. Mr Hay objected to the statement bfing takg£ **§ evidence against his

client (Bamllold), and tho. objection was noted, also a similar objection by Mr Ward on behalf of Lowery,. , Witness read the .statement, in which tho signatory outlined tho formation and organisation of the company. He admitted signing the documents concerning tho alleged sale of the car mentioned in tho charge, but, considorcu it quite proper and a legitimate business transaction, and there was no inlent on his oart to defraud anybody. Witness also road statements from tho defendants—J. Shaw Campbell, Samuel Campbell, Lowery, and Bamfield. . At this stage tho chief detective asked for an adjournment until the following day. There bad been a misunderstanding as to whether tho case was to bo adjourned or not, and one of tho witnesses had been allowed to go to Invercargill. He iVoukl return that evening, and the case could bo continued in tbo morning.

Tbo magistrate remanded the accused accordingly. Mr Hay said that on the evidence there was no charge for his client to answer. Ho had not got anything. Tho Magistrate: Wo have his signature to several documents. Ho added that counsel could deal with the‘matter when the evidence had been completed. It was later decided to adjourn the hearing until • Monday morning. FURTHER CHARGES. The same accused, together with Clifford Peel (who was not represented by counsel), wore then charged that:— On March (3, 1926, with intent to defraud, they obtained- from the Otago and Southland Finance Corporation £465 by falsely representing that Clifford P.cel had purchased a now Star motor lorry of the value of £695, and had paid a deposit of £250 as part payment; on March 26, 1926, obtained from tbo Traders’ Finance Corporation, Ltd., £350 by falsely representing that Clifford Peel had purchased a new Star motor car valued at £495, and had paid a deposit of £165 as part payment for thy said ear; on October 6, 1926, obtained from tho Traders’ Finance Corporation, Ltd., tho sum of £365 by falsely representing that Olive Smith had purchased a now Star motor car valued at £550, and had paid a deposit of £lB5 as part payment. ' George W. Reid, public accountant, portion of whose ovkieuco was given in tho previous cases added that he had discovered in the hooks a. payment of £903 made to the Otago and Southland Corporation. This amount represented balances that had previously stood in tho books and represented balances to the credit of J. S. Campbell £lB5, C. Peel £163, C. J. Lowery £lB5, R. S. Gray £216, and W. M. Lowe £l4B. These balances related to the transactions whereby advances had been received from tho Otago and Southland Finance Corporation on tho alleged hiring or sale of cars to the persons named. A further entry showed that a sum of £903 was paid direct to tho corporation by Campbell Bros. He found that Campbell Bros, were credited in the private ledger for £905. In tho same account they were debited with, an item of £905 dated November 30, 1926, and worded: “ Transfer trucks.” Further investigations showed that an invoice number 2,022 had been made out to Campbell Bros, for a Star truck and a Star chassis of a total value of £905. This was placed to their debit in the sales ledger, and this debit was then transferred to the debit of their account.

Mr Hay; This all shows how tho Campbells get money to pay tho corporation. Chief Detective Cameron: It shows a system of fraud.

Mr Hay: The police cannot prove their case by a general system of fraud. The Magistrate: To prove the intent, inferences may be made from the surrounding circumstances. lam not prepared to say the evidence is not admissible.

Air Ward pointed out that at the date referred to Air Lowery was a shareholder in the company and nothing more. The Magistrate: You will he entitled to raise that objection later on.

Witness said there was no entry in Mio books of a cur sold to Low on March, 1926. He produced a bond warrant to show that the car in question'was in bond at that date. Jn the sales register there was no record of sales to C. Peel. He produced a document showing that Olive Smith had paid a deposit of £lB5 on the purchase of a new car, but he was unable to trace the car in tbo company’s car register, nor could be trace any record through the sales register of the sale of a car to Mrs Smith. He had found the name of “ 0. Smith ” in the private ledger, with entries against it. To Mr Moore: In all the accounts appearing in the private ledger for tbo parties to the transactions there appeared debit entries for promissory notes met by the company on behalf of the respective parties who had signed the promissory notes. These debits wore offset against the original credits for tbo advances received, and it was the balances of these accounts at Juno 30, 1926, that appeared on the balancesheet at that date as loan accounts. Tho promissory notes were paid off monthly.

To Mr Hay: The registered number of Lowe’s car was 107-526, and of Peel’s 107-532. In other words, there was nothing to show that the two cars were the one and the same car. To Mr Ward: Lowery retired from the directorate of the company on June 17, 1926.

Mr Ward submitted that, in tho face of the witness’s evidence, Lowery’s name should ho struck out of the charges. The Magistrate; I will wait until all tho evidence has been heard. To Chief Detective Cameron: If a car was rgistered by Pee! it would not have the same number as a car registered later by Lowe.

At this stage the further hearing of tho case was adjourned until 11) a.in. on Monday.