BUYING IN FOR ABSENT CUSTOMERS.

Horowhenua Chronicle, 19 February 1931, Page 6

BUYING IN FOR ABSENT CUSTOMERS.

IMPROPER AND IRREGULAR. DECLARES CHIEF JUSTICE WELLINGTON, Last Night. The system of buying in fruit for sate in country districts which forms t;ie crux of the prosecution of Messrs Lacry and Co., was further discussed in the Supreme Court to-day wnen sevorju passages occurred between the Chiei Justice and Mr. Harold Johnsion. The firm is charged on five counts with failing to disclose a pecuniary interest in a contract concerning tne sai-j of bananas on behalf of the External Affairs Department and on one count, with rendering a false account sales. “ sfou certainly haven't persuaded me and nothing you can say to me will persuade me that an account sale such as this is not a false or untrue document,” said His Honour during the course of the argument. Later His Honour said he was not unimpressed by Mr. Johnston's arguments but ho was satisfied the course for him to adopt was to allow the hearing oi the charge to continue. Mr. Stevenson, who is appearing wiin Mr. Johnston for the defence, outlined dofcndanls case saying that the practice of buying in had been in operation upwards of forty years. Any loss of profit was borne by the company. Dealing with the charge under section 7, Counsel said that the account sales were the ordinary account sales which had been sent* out ovpr a period ■of-yeaf's in accordance with the firm's bustoin. It was a custom well-known to growers and others and there was no intention to deceive. Alfred Alexander Phelps, director ot the . company, described the practice cu buying in. A country manager attended the sales and bought the fruit he might require but sometimes he arranged a purchase. The lines bought were charged at the highest auction price. His Honour: It is one of the most improper and irregular things done. It is a practice which is contrary to law, to equity—contrary to every principle

of commercial dealings. Iu fact. I. want to make it quite plain tiiat those observations do not affect what i consider to be the real question in thiscase, but they do affect the setting up • of this most reprehensible ana obnoi..ous custom. To witness: Do you say oven now you-. cannot see the impropriety of such a., practice? Witness: I do not see that we havedefrauded the Government of anything. His Honour: I did not ask you that.. Witness: It has been helpful to thebusiness. It was absolutely necessary to follow such a practice. Further evidence as to the openness, of the practice and its general observance among auctioneers, was given. The hearing was adjourned until this* morning.