CONSPIRACY CHARGE

Gisborne Herald, Volume LXVIII, Issue 20623, 26 November 1941, Page 7

CONSPIRACY CHARGE

GROCERY CHAIN SCHEME MCARTHUR IN COURT SYDNEY, Oct. 3. A> proposal to form a chain of cooperative grocery stores in New South Wales was referred to in the Central Police Court yesterday, when four city business men were charged before Mr. Farrington, S.M., with conspiracy. John William Shaw McArthur, aged 58, manager, Arnold Lovel, 49, agent, Arthur Bridgewater, 38, director, and William Bryce, 40, salesman, were alleged to have conspired between June 1, 1940, and March 31, 1941, to defraud Thomas Kennard, Thomas Carey, and others. In his opening address, Mr. Rooney, for the Crown, said McArthur and Bridgewater were directors of Investors Agency Proprietary, Limited, and Lovel and Bryce were employed by or acted as salesman for the company.

Persons had been induced to sign a syndicate agreement which the Crown alleged was “entirely illusory’’ and never conferred any rights on persons claiming benefits in the syndicate. People who joined the syndicate and paid a total of £2500 did not get a penny back, with the exception of two sisters, who charged Bridgewater and Lovel with stealing £2OO. No evidence was offered when the case came to court, Mr. Rooney claimed, but before that each sister had been repaid £IOO, and a promise had been given not to sue them for malicious prosecution or wrongful arrest. Interrupting Mr. Rooney’s address, Mr. Shand, for McArthur and Bridgewater, said the proposition had been to form a number of co-operative grocery stores in New South Wales, and two had actually been started when Federal regulations came into force under the National Security Act, preventing the company from dealing with its share capital.

On the application of Mr. Shand, the hearing was adjourned until October 27. Each defendant was allowed bail in £IOO.