WAIROA MOTOR TRANSACTIONS PROSECUTION

Grey River Argus, 8 October 1949, Page 7

WAIROA MOTOR TRANSACTIONS PROSECUTION

Accused Committed For Trial P.A. GISBORNE, Oct 7. Denying -all of the 38 charges of false pretences, and two of theft, on dates between March 11, 1949 and May 26, 1949, involving £17,260 in alleged motor transactions, William McLue Ford, 25 carpenter, and Desmond Paul O’Connor, 23 clerk, both of Wellington, were committed for trial at the next session of the supreme Court in Gisborne. Evidence was completed late today after a three day sitting, presided over by J.P’s.

After hearing the evidence of purchasers of trucks and cars, Mr K. Gillander Scott said that he had been instructed by the directors of the National Insurance Company, limited for whom he held a watching brief to bring to the notice of the court and counsel engaged that the National Insurance Company had now received payment from the New Zealand Guarantee Corporation Limited of all of the moneys owing by way of insurance premium. In, connection with the motor vehicles that were the subject of eiiarges before the court. He said that the company also did not propose taking any form of civil acton against the two accused. Rallpll Vincent Janes, public accountant, Wellington, said that he had been instructed by the New Zea-. land guarantee Corporation to investigate the sale of motor vehicles by De Luxe Motors and the finance corporation. He had inspected the majority of the vehicles sold, and he produced a schedule showing the name of the conditional purchaser, the amount of the advance, and why the finance should not have been forthcoming had the true facts been known; and his estimate of the anticipated recovery the total amount advanced on these vehicles was £l6, 959 Ils 6d and the total anticipated recovery of £6,5000. The condition of the vehicles had been “very very bad indeed.”

Cross examined by Mr Fabian, on individual items on the schedule, witness said Liat the deposits in cash, or in hind, at the time ,of the deal, the transaction would not be acceptable to the corporation.

Witness said that he had checked up on the ownership, and found that the conditional purchaser- did not have a transfer ownership. In many cases, owners other than De Luxe Motor's were shown, but they mostly were individuals. To his knowledge, no other motor firm was named. Only about 15 per cent, were in the name of De Luxe Motors as owners.

John George Gemmell, a bank officer at Gisborne, said the accused had an account at the Bank of Australasia under the name of De Luxe Motors on March 11, 1949, with the deposit of the cheque for £279 15s Id, and the last transaction was a withdrawal on June 20, 1949, amounting to £lO9 Bs, leaving a nil balance. To Mr Fabian, witness said that there was n,o doubt that the first moneys to the accussed credit came from the New Zealand Guarantee Corporation. Detective Sergeant Richard Waterson, in evidence, said that, on August 25,1949 the two accused came to the police station, and said that they had heard complaints against them by the New Zealand Guarantee Corporation, arid they wished to clear the matter up. They were cautioned and they declined to maxe any statement in writing until they had seen their solicitor. They told the witness that they had bought out Civic Motors from Jack Beecher in March, 1949 and had carried on business as De Luxe Motors until the end of May, 1949. During that time they had sold 44 vehicles on hire purchase, some of which had been the subject of charges. Witness said that he told them that had a complaint from National Insurance Company ’Jhat payments in respect of 16 vehicles had not been made. When asked what had happened, the accused were alleged to have said that the money “just went”. Witness said that he arrested the two accused and charged them with failing to account. Because .one of the witnesses was in hospital and another was away in other parts, detective sergeant Waterson said he Lad no evidence to offeron charges of false pretences relating to vehicles alleged to have been sold to Honptapu and Linton. At his request those two charges were dismissed.

The accused, who pleaded not guilty, were committed for trial. The police objected to bail, but the bench granted bail, as at present, at £4OO, with two sureties of £2OO each.