PAEROA CASE

Hauraki Plains Gazette, Volume 60, Issue 4307, 21 July 1950, Page 5

PAEROA CASE

APPLICATIONS HEARD SITTING AT THAMES SERVICEMEN’S PREFERENCE On Wednesday last at Thames the numerous applicants for the wholesale license which has been allocated to Paeroa by the Licensing control Commission appeared before the Hauraki Licensing Committee for the purpose of stating their claims to the license.

The committee consisted of Mr W. H. Freeman, S.M., chairman of the committee aarc Messrs R. M. Rhodes, J: W. Arbury, _O. M. Coldwell and D. Gulland. Mr Edwin Edwards, a member of the committee did not take his seat as a member.

In all a total of 13 applications for the license had been filed. They were:—N.Z. Loan anc Mercantile Agency Coy. Ltd. (MT A. H. Swarbrick, Hamilton); Alan John Patterson (Mr C. G’, Garland of Auckland); The Simons Proprietary Ltd. (Mr D. G. Sinclair of Paeroa); Bryan Buchanan (Mr G. H. Nicholls of Te Aroha); Trevor Watts White (Mr H. L. Boughton of Waihi); Francis Brady; William Pura Hennah (Mr N. S. Barrott of Paeroa); Peter Sedgley Hanan (Mr T. ( Henry of , Auckland); William O’Brien; Natia Parkes Swainson; George William Bremner; Phillip Max well Petrie (Mr <A. L. Tompkins of Hamilton) ; George Robert Cowie'McMillan (Mr J. S. Alexander of Auckland). .

George William Bremner and William O’Brien withdrew their application's and Natia Parkes Swainson telegraphed the coinmittee that illness prevented his attendance. Mr R. J Crawford of the Rehabilitation Department of Hamilton ap-

peared on behalf of his department and made submissions as to the duties of the licensing Oommittee to give consideration to the applications of returned servicemen.

Mr W. H. Freeman pointed out that consideration had not •been given to such applications in 1 Hamilton and at the hearing of applications in Hamilton financial considerations had been taken into account.

Mr Crawford quoted decisions to the effect that in the interest of the public the rehabilitation of returnd servicemen was' an important factor and should be taken into consideration, although the returned servicemen, should not be given an absolute preference. Where other things were equal his position as a returned serviceman should tip the scales in his favour. Where there were two applicants equally suitable, where one was a returned serviceman then he must be given preference. Mr Crawford submitted that the provisions of the regulations were mandatory and the committee must give preference to .applications from returned serviceman. » The Rehabilitation Department had

not supported the application for the granting of a wholesale license in the Hauraki district, said Mr Crawford in answer to a question from Mr Sinclair. 'His department had not

considered the possibility of a license being granted in the Hauraki district

and had not thought of the possibility

of rehabilitating returned men in the business of a wholesale license until the Licensing Control Commission had decided to grant a license in the district.

The committee decided after the conclusion of Mr Crawford’s address that each applicant should state his case and the order should be that of the filing of 'the applications. N.Z. Loan & iMetieantiile Ag. Co. Ltd. Mr A. H. Swarbrick of Hamilton appeared for the New Zealand Loan and Mercantile Agency Company Limited, instructed by Messrs O’Neill and Harris, solicitors of Paeroa. Robert Henry Stewart, assistant superintendent of the company, Wellington, gave evidence in support of the application. The applicant had applied ih Hamilton recently for the granting- to it of a wholesale license and also at Whakatane but had 1 not been successful. His company had a modem building suitable for the purpose in Paeroa and had the financial

ability to comply with .all regulations relative to the conducting of a wholesale license. To Mr A. L. Thompkins (Hamilton) witness stated that Bull and Company Ltd. of Levin, which conducted a wholesale license, was a Subsidiary company of the N.Z. Loan and Met cantile Agency Coy. Ltd., and temporary supplies would be drawn from Bull and Company Ltd. and experienced staff made available. Alan John Patterson Mr .C. G. Garland of Auckland appeared in support of an application by Alan John Patterson of Kaitaia, a returned serviceman of three years’ service who stated he had not approached the Rehabilitation Department for assistance as he had sufficient assets of his own to enable him to conduct the business if a wholesalp

license were granted him. He would apply for an import license immediately if he were granted the license. In answer to Mr Francis Brady witness stated that he did not know anything about the price of bulk whisky, case whisky or the duty or sales tax upon liquor. “You therefore know nothing dbout the liquor business,” stated Mr Brady. Simons Proprietary Ltd

Mr D. G. Sinclair of ' Paeroa appeared for the third applicant, the Simons Proprietary ttd of Paeroa. The company had been in existence for 26 years. It held a wholesale license in Whangarei and a brewery in Paeroa and was so equipped with facilities and business knowledge of the liquor trade that it could give the best service to the public. Mr Sinclair submitted that the preference to ex-servicemen was oveyidden by other factors.

Arthur Walker of Whangarei, director of the applicant company, gave evidence in support of the application. 1 The company proposed to erect a new ; building to the cost of £2700 and was best equipped to give the fullest and most efficient service to the public. It was most vital for the company’s operations that it ibe > granted the license as otherwise the company’s sales of ale would very much diminish if another concern held a wholesale license in Paeroa. In answer to' Mr H. L. Boughton witness stated the additional import licenses had

been secured for the Whangarei district. Witness in answer to Mr Garland stated that the holding of a wholesale license would enable his company to secure spirits which would assist in the sale of the company’s beer. Francis Warren, secretary of Simons Proprietary Ltd. and public accountant of Whangarei; gpve details of the company’s operations. In answer to a question by Mr J. J. Alexander of Auckland witness stated that two thirds of the company's whole' business was derived from the Paeroa branch. About from five to TO per cent of the Whangarei business was done in the Paeroa district. It was because the comp.any’s directors foresaw that with the granting of wholesale licenses in other areas the ;

company’s business would be prejudiced that they therefore decided to apply to the Licensing Control Commission for the 'granting of a wholesale license for Paeroa and district, so that it would be able to consolidate its position in Paeroa. Harry May, manager of Simons Proprietary Ltd., Paeroa, was next called as a witness and stated that the company had six selling agencies for beer. The recommendation from the Hamilton Licensing Commission was that the Waikato brewery, if granted a license, should give up its selling agencies. His company would carry out the commission’s direction in the matter.

William Pura Hennah

Mr N. S. Barrott of Paeroa appeared for William Pura Hennah of Paeroa, the next applicant. Applicant stated in evidence that he was an ex-serviceman 37 years of age and had sufficient capital to carry on the business- successfully if granted a wholesale license. Counsel pointed out that his client, Mr Hennah, was a resident of Paeroa and had lived there most of his life. In that respect he, had the advantage over all other Applicants.. Peter Sedgley Hanan The next applicant Peter Sedgley Hanan of Omahu, farmer, was represented by Mr T. Henry, solicitor of Auckland, Applicant stated that he had spent four years overseas in the Royal New Zealand Air Force and at present was a farmer but, if granted a license, he would immediately sell his farm to a returned serviceman and he had ample capital to enable him to conduct the business on. a proper basis and give service to the public. In answer to Mr Boughton applicant stated heshad received rehabilitation assistance in 'respect of the purchase of his farm. Witness stated that he had considerable experience in accountancy though little, in the liquor business. Mr Crawford stated that Mr Hanan had not approached his department for assistance in becoming established in the wholesale liquor business.

Bryan Buchanan

Mr G. H. Nicholls of Tie Aroha appeared for Bryan Buchanan of Napier, wine and spirit merchant. Applicant had served for six years in the armed forces. He was in business with his father in a limited liability company. The business was a fairly large one and had access to considerable supplies of liquor from overseas. He proposed to erect a substantial and modern building in Paeroa at the cost of £2900.

Applicant had ample financial resources to enable him to carry oh a wholesale liquor business if the license were granted to him. Applicant stated that his only knowledge of the business was that in the spirit trade and his wholesale license would expire in 1951. “What magic wand have you,” said Mr Tompkins, “that you have, influence to procure quantities of liquor when other importers can get very little ? How does it come about 'that you have been in the trade tonly four years and you get

Import licenses lotr rnousanos ana thousands of pounds of liquor when no other firm in New Zealand can get such preference,” demanded Mr Tompkins. Mr Crawford pointed out that applicant had secured the licenses, with the assistance of the Rehabilitation Department for some £l®oo worth of import licenses. “But you, did over £60,000' worth of business?”' 1 asked Mr Alexander, who suggested that applicant ctfuld evidently carry

on a large business in liquor without import licenses by the use of other people’s import licenses. It would mean, continued witness, transferring the whole business from Napier to Paeroa and there would be no business for him in Nanier when his license

expired in June next. L. H. Buchanan, father of the applicant, was next called as a witness and stated he had a life-long experience in the hotel and licensing trade .as well as the wholesale liquor trade. Witness stated that his firm had access to considerable supplies of liquor from overseas. His company had funds overseas which enabled it to secure

supplies and his company was therefore so placed as to be able to give a better service to the people of Paeroa than any other applicant.

The court then adjourned until 9.|o‘ a.m. on (Thursday morning, when the applications of Phillip Maxwell Petrie, George Robert Cowie McMillan, Francis Brady and Trevor Watts White will be heard and submissions will'be made by counsel engaged in all applications. t

FINAL CASES STATED

' COUNSEL GIVE ADDRESSES

The hearing of the applications for the wholesale license allocated to Paeroa was continued yesterday at Thames where the applications of the remaining applicants were heard and were followed by addresses by counsel. 4 Trevor White <

Mr H. L. Boughton of Waihi appeared for Trevor Watts White, a group captain of the Royal New Zealand Air Force who had a long record of service in the air force and experience in the licensing trade with his father as a hotel proprietor. Applicant produced testimonials from the Commissioner of Police, Judge 'Stillwell and Mr O’Shea, secretary of Federated Farmers. Applicant produced evidence showing that he had sole agencies for Certain luxury lines of spirits and had access to considerable supplies of most classes of imported