SALES OF BANANAS

Gisborne Times, Volume LXXI, Issue 11327, 3 October 1930, Page 2

SALES OF BANANAS

ALLEGED FALSE. SALES . -account ■

(Press Association.) WELLINGTON, Oct. 2. Tim cvidcnco for tho prosecution in tlm cn.sc in-which Lnory ami Co. Ltd., auctioneers and produce merchants are charged..under the Secret Commissions Act, 1910. was continued in tlio Magistrate's Court. Tito charge;; against the firm are live counts of failing to disclose peeluniary interest in a. contract, and two counts •of delivering false sales accounts to the Department of External Affairs in respect to bananas. Air E. Page, SAL, was on the bench. Evidence was given by several fruiterers regarding purchases made by them from the 'defendant firm. -Tollii .Michael Scott, inspector in tin* Government Audit Department) said lie carried put an' investigation of the records and hooks of the defendant company,'dealing with tho particular consignment .of bananas which arrived by the Maui Poniare in July 1929. - The account sales showed. that 31 eases sold for 11s. Witness ti'aeed the auction sheets,' and found an entry on July JO for 2(5 cases,of Samoan, bananas booked to country departments at. I IP .a ease. There was an entry showing that, five other cases of banana's'had .been sold to a Hindu ha.w-ker~on- Julv 29 at 11s a case. Witness. said liis investigations proved-that Laery and Co. were in tbe habit of taking < ases of fruit and vegetables etc., out of the sale, these being subsequently shown ■ on the ■ following day’s' auction, sheets,. and in some rases up to ten days later than the .actual sale. Jn the-case under review they were shown as-having been sold to conn-, try departments, at 11s a. case. - In tho course of witness’ investigations he ■•ascertained:* that those parti-, cular bananas were sold to five country.. clients at .1 os 6d and 16s a case on July 29. The bananas were actually sold and dispatched to country clients before the entry was made in the auction sheets. On the 26 cases .of bananas sold Laery’s made a profit of £5 6s Bd, showing a. net profit of 37 per cent. Tin’s had not been . accounted for.

WHQ -LAID;THE COMPLAINT? John Michael Stott, continuing his evidence, said To Air. Johnston that probably, the seven allegations had been, made against the defendant company as the result of his report. Ah. Johnston: Did you interview a gentleman in the ,Wi Tako prison in regard to Laery.and Co.? Witness: Yes,. I have to interview quite a number, as I do the accounts at the Wi Tak'o prison. Mr. Johnston: Did you interview a prisoner up there? Air. Macassey objected that tbe nuestiou was Irrelevant and said he did not think inquiries would carry them much further in the matter. Air. Johnston: It may . be a light matter for a a gentleman in the Audit Department to have a _firm which has been in business for 50 or 60 years with a high reputation attacked, but it- is some advantage to know of the source- from which tbe information has'comeround if - it is a disreputable source, how did the Department come -to make inquiries ? Witness : .We had reason to believe, that we were- not getting. true and correct account sales from this particular firm. . • ■ Who believed?—“Oh, I can’t divulge that.” “I put it to-you that-you were theperson to raise this suspicion ? Will you deny it ?”-'.; Air.- Alaenssev-objected, -and ‘plead-ed-'the-protection. of--the 1 Act, and jsaid Mr. Johnston was trying-.- to j find out who had laid the complaint. ' The [magistrate (to witness): Your

answer is that .you deeljiie.tq sav who originated (his inquiry?—“Yes.” The ease was .idjournediuntil Wednesday to allow another witness-from Palmerston North being called..