RESIDENT MAGISTRATE'S COURT

Inangahua Times, Volume V, Issue 3, 8 July 1878, Page 2

RESIDENT MAGISTRATE'S COURT

Fbidax sth July, 187 a

(Boforo E. Shnw, Esq., R.M.)

JUiTintT v Clifford,

Rohorl Tnploy— l fttn n shnrobrokor roaiding in Jlcefton, nncl was a director in tho Dofiunco Company. I w«» one of thoso who ttwthoriflod tho aaloof tho j»ino. I wn» at tho ineotiuff at whioh Davios was inHtruciod to find a buy or. Tho sale was thoroughly fonct ffia,

By tho Bench— l know nothing about a mock sale, I don't know of any conspiracy. Bench— Thon if you don't know of any talo you can't speak of nuy of the oircunißtanocs oonuootod with it. Witnoss— Prom foots within my know« lodgo there was uo conspiracy, Bonch— lf tho witnoss bo a conspirator ho could Bwoar to tho fuct of it as Mr lloid says ; but if not I don't soo how ho o>uld doposo concerning it! Tho Bonch horo remarked that a com* plaint had boon nmdo that a number of witnesses had boon subpeoaaod and not callod, and who, noomingly, had boon sum« monod for purely vexatious purposos, Tho Court would, thoroforo, ruako tt rulo Uat no furthor aubpwnas would bo issued in tho oaso oxoopt upon a sworn declaration that suoh witnessoa would bo called and could givo material .©yidonoo, Mr Heid lomarkod that nil tho witnesses, with ono exception, subpeonaed for tho defonoo had boon oallod, but ho was nwaro that several porsons had boon Bubi)<»naod by tho othor side thou^. h no(; oallcd and woro kept hanging about tho tho Court. Oross^oxamined By Mr Roid—l was ono of those who took an aotivo port in the sale of tho mino, Thoro was no publicity givon to tho sale } it was a private I salo ; it took plaoo on tho 15th August : I hoard something about n salo on tho 11th August at Bd}.but I was not thoro, Shares in tho Doflauco were selling as high as os, but that was a long timo boforo tho salo of tho mino ; to avoid litigation was tho principal roason' for Rolling tho mino j wo considered tho olaims ofLynoh and others aa unjust ; we oonsidored by Belling tho claim wo would bo in a bettor position; thoso forfeitod jiharos had boon allotted amongst the uharoholdorfl ; as a director I don't know anything about tho forfoituro of tho , shares. ; By the Bonch— Wo had boon advised that tho company could not buy in tho forfeited sharos, thoroforo tkoro wa» a doubt as to tho company buying tho .shares. I was not prosont at tho forfeiture of tho sharos j thoro wus some doubt iabout tho forfoitod shares bought in by the company t I could not say how many Ithousand shares wero allotted ; thoro woro somo thousands ; I think thoro woro about fivo thousand. Mr Moss objected to rofovonee to any shares but Lynoh's, His Worship snid tho ovidoneo was proporly admissablo ; Lynoh had statod ■that ull tho other parties montioned woro <co"plaintiff'a with hira in chiming the Shares. Tho defendant had alleged that idynch's and tho othors iiharos had been illegally forfeited boliind thoir backs, nn'd dofondant now sought to prove the tvuth of that allegation, Examination continued— Thcvo wero £000 sharos about which tho doubt existed. On tho Oth August a mooting of the company was hold : the minutes woro confirmed on tho eamo day ; it is usual jto do so : at tho mooting tho rulo of tho company prohibiting tho directors to soil tho property privatoly wa« roocindod and 'a contrary ono pasaod. I don't Hupposo that that business was advoriiso.l, A resolution wns alno passed at that moot* ing, authorising tho dirootors to oroot machinery j thoro wan no idea of ©wetiug maehinory at that timo ; the question of orooting machinery was discuHsod, thoro was flomo stone, and a roof, but it was thin ; thoy had only, drivou a few foot on it. Wo felt oortain if tho property was sold publicly that it would bo protested against by Mr Pitt, on bohalf of Baker and others* and that is tho only reason I know 6f for not advertising tho salo of tho pro- ; porty. £. YV. Eaithby-rl ora tho purohasor of the Dofianeo lease. I purchased for Davies ; I did not oonaploto tho trannao* tioti with him. Davios vras tho manager of the Dofitinco Company s I oonoludod tho pnrohaso with Mr Guinnoss ; I got an assignment from tUo company, which was hold in trust until tho money was paid : I oonoludod the purchase with tho direetoirfl i first heard that tho mino was for salofrora Duvioa j ho offered tho mino tamo* I soarooly knew anything of tho company's affairs at tho time of Duvios making tho ortort tins was in August 1877* about two days boforo tho salo. At that timo I know nothing of tho company, or tho rousouß which led tho company to soil. I was awaro of tho litigation going on, At the timo Davies offorod ho did not toll mo any reason ; I don't think I nskod him j I did not think i strnngo : I novor did hear of suoh a thing boforo- I think I did. I havo ofton hoard of salos of tho kind. Thin is not tho first timo I bought a mine privatoly, I bought two at tho Thames. Bonch— A registered company in operation P Witnos«-^I can't lay except that I bought (ho proporty. Bench— Vow had so litllo curiosity concorninp tho purchase of tho Doflimoo mine, that you did not put any questions to Davies concerning it ? Witness— Ho told me that they were about tired of it. Bonoh— Oh I thon he die) toll you somothing about it P Witness— Ho said! that tho directors woroempoworod to doll. Bonch— And you had so Uitto cariosity concerning tho transaction, that you did not nsk any questions. Witness ; I don't eocolloct that I did.

Bench : If tho proporly wns worth £500 to you, did it not ocour to you that it was worth that huui to tlio company P Witness s I don't think it follows, Bonoh i Do you think so now P Witness s Wo have spout a good doal in tho mino ninoe. Bonoh : Did you not comidor it in any way strange that thoy should single you out for tho offer. V* • Witnoss : I was not tho only pert on it was offorod to, ;■.»: Bdnoh : You said yon know of the litigation then ponding against tho corn* pany ; did it ooour to you that the aale had anything to do with tho litigation * Witnons : It did not: Bonch : Thon you did not consider that thoro wns anything at nil surprising in Dnvios ooming and offering tho property | to you. Witness : It did not striko mo as a matter of surpriso ; it did not dotor me from purchasing. Examination conlinuod--»Havo road tho lofctov signed 0. Clifford in tho inform* 8 tion, from faotß within my knowledge tho allegations are quito falso— abominably false I know of no conspiracy. Bonoh : Thovo was no conspiracy aa far as you know. "„ Witnoss : Noi^,;l swonr thai I wai In nonos Bonoh j You were not a party to any agreement by which you wore to hold tho mino for a timo only, and that yon wero to part with it back diroetly tho litiftntion wns over P Witness ; In no shape. Examination continued— l know of no conspiracy to dolrand, to doprooiate th© stock, *o effect a mook sale, in th« private room of an hotel wltli four persons pros nt, including the nnotioneoi" Iknevf nothing about' it. Ido not consider that! Clifford was jmtifldd in writing the, liW in qu rflion. I bnvo not counidorod Uw mino a profitable speculation up to the prosonfc timo, If Iliad known what wa< to follow I should not have bought it. I consider tho mino worth more than £500 : now. "■'■■ ' : ' ■• ;:; ;J:| ' : - I ; vi Crosg.exAminod by Mr Reldi-Odald ! not say why Ddvios «ime to tn*. liWftl afc Louisvillo nt tho ICe«pMVDtift'jjisoft't roeolloot whothor ho odramittiofd abttdf tilt sale nt onco. He noter told nieiany reasons } I never asked. I donl recollect whothor any convocation took pUoo 1 1 did not apprchond any difficulty in selling ! Davios told me ho had boon offered £300! and told mo ho would toko £500 ; between tho Oth May and 15th, had heard of bo Halo of Defiance shares { know the pro* forty W'iß down in tho mnrkot ; had boen in tlio mino onoo and thought there was a prospect of 'doing something with-it. noxt timo 1. anw JDnvteS was two days later in Keofton ; I wonTd not swear that at Crushington I ftgrocd to tako the property. I called on j)avics ami told him I .would kivo him ;CSOO ; Dorics agreed at Crush* ington to take my bill, as I told him 1 could not pay all tho money t I think th»( transfer was made in Davios' olDoc, and I ' tiki nli 1 took possession on tho 16th ; I beliovo I signod tho promissory noto on tho Istti August j thero was nothing croo-ltnd' about it ; I took possession on tho 10th ; I did not form tho Victory Company ; I did form it witH Davios* aisistanoe ; (ho oompnny wns registered rindor tho Joint Stock Act* it was not rogisterod undor tho Mining Companies Act. I b»« liovo tho trans for nas rcgi*torod in tho Warden's office on the lfiih. I retainod 0000 B harus in tho Victory Compnny 5 4* was tho hist quotation ; I believe tho balance of tho pharos wore sold at 41 ; I now find out that somo of tho Victory nharoholdors woro in tho Dcfiunco } oan't sny whether 3000 shares wont to Hokitika ': to bo distributed amongst Dcfmnco share- ; hollers thoro. I Bonoh :By soiling 30,000 shares in tho Victory Company at 4<l, you realised ; £500, tho amount of tho bill given by you 1 for tho mino and yon iroooived G,OOO \ shares in tho. Victory Company, so that i in reality you got tho Dofinnoo i»ine, and 1 0,000 Victory shares for nothing. I Witnoss : That is so, ! Bonch ; Wlut interest do yoonow hoM in Iho Victory Compnny ? Witnoss : T hold 4,100 sharos. By Mr Moss • Thoro was no reason for my soiling tho 80,000 shares at 4<U Mr M(kss pursued tho lino of oxamina* , tion. ' Boneh — The witness has altogod 1 that ho sold 30,000 shares at 4d, tho amount of his bill to tho Doftanoo Com« pany, and rooeivod 0000 shares in tho new j company, thas getting the property for nothing. By Mr Moos—Some of tho money oh- : Inincd for the snlo of shares was applied 1 in meeting the bill. I am a director in tho Victory Company. Knew afterwards that Bayfcild was a shareholder in tho Defianoo Company. Bonch s Can you bo quito anro, or will yon swonr positively that when Davios I oiTbvcd you th© pro-porty that you did I not ask his reasons or inquire whothor ho had boo-n authorised by tho directors P ! Witness : I have no dorobt thoro was somo conversation, and 1 it was satin factory Ito mo but I cannot rocolloet. tho drift \ of the conversation. I Bonoh : Can yon recollect if h» garo I you any roasons P , Witness— l know that Davics expfained ! why tho Company wantod to soil, but what :ho said I cannot say ; thoro did not ap« I poor to bo anything extraordinary about;

Bench : Did ho say that the company wanted to soil bocuuso of tho litigation ponding. Witness— >Ho may have dono so, but I cannot toll. Bonoh— You know ho garo you flomo roasons, but you cannot rooolleot what those rcasom woro P Witnoss— lt was understood that tho shareholders wore sick of it. Bench— Sick of what P Witaiti— Both tho mino and the litigation. Bench—lf th« property was worth so little to them, it was rathor a poor chance for you. Witness— l don't know. Whon a now venture is started now blood comes info it. Bonoh— lf the mino was any good to anybody, would it not bo most likely to bo yaluablo to tho company working it, and who had spent a good deal of inonoy Upon it P Witnoss— lt does not folUw. Boaoh — Before closing tho salo did you go up and examine the mine, in ordor to see what you woro buying P Witness— l was at the mino 00 one ocoaiion, aome timo protons, but I did not go to look at it before buying it. I kn#w from th* papers that they bad struck tho roof. Bench— Thon you purchased on the I remembrance of a cursory visit mndo aome time prior P Witness— Aud on tho strength of know« ing that they had struck tho roof. Bonoh— Can you aay whothor U was from what you road in tho papers, or what bad been tofd to you, or the position ofthf mine tbafcindooed you to buy P Witnwfr— l thought there would bo a ehanw of making money out of it. it as a speculation, Bonoi)— Ip tfc& courto of tho nogotiatioDi» did yoil l*»ll Bavie» that you would buy Ike taint tat tpeoulation, and then throw Into t company f W(lijMil|?No» not till afterwards. : Btftih^VoV had lomo oouvonation iHtk.'Wrtlei'iboQt floating a now company of tho bill ar« ■Miged (to float tho company P ■ilmtn««— Tei. SDBfh^rPid you loavo it ontiroly in DarlM* hands> Wilnett— Yet, allowod him to apportion ,llm aIMMa to whom b* 4liou«ht fit ? , Wltneaa— Y*f. He found buyors for the akaret and referred thorn to mo in i every Ma» I belieft. H# sold what shares he could. He referred all buyers to mo. He ooutd riot sell, at | held tho shores. B»noh— TllNfi if per»ons appliod to Davie* for thmreii they could Ret them ? WUnes*«»He could not sign tho traue< fer. Bench -Did v°'»cveT ro f uso anyone ? Witnois— Wliilo the legation wa« going I refitted shares in the Victory Com • pany to Dawnoo, but I cannot reeolh ot of anybody olso. [The nvidenco of Mr Bnyfoild on this point was bore road over to tho witness.} Bench— Mr Buyfoild nllcgos that you rodi'soil shnros to him P Witness— l recollect tho timo, bul not Hie conversation as ho gives it. Bench—lii it substantially oorreot P If Mr Bayfoild has not givon tho precise words, has ho given the Bubitanco of what took place P Witness— Flo nov«r asked mo if I had Victory aharos he could tako up. Bench— What di.l ho auk you P Witness— Ho nuked mo if his namo was on tho sharo lint, It is not substantially (ruo that ho, asked mo for shares in the Viotory Company. Ho asked mo if I had any for sale, but ho seemed to expect them as a right, Bonch— Well, what do you onll that but asking you for sharos in tho Victory Company P Witness— l boliovo ho did ask me it I hnd any shares for disposal and I told him I had not ; at that timo I had disposed of all tho sharos 1 intended to. BOIIOII— Do you reoolloct a eonvorsalion with Mr Bayfeild in August last t WiMiess— Yos. Bench— Do yon recollect his saying ho was a shareholder in tho Dcfiatico Company, and you tolling him that ho would got shares in tho Viotory. . Witnoss— On August 17th ho oamo to mo about somo privato businoss, and said that after what had takon placo, tho private business roforrod to would not bo prooocded with further. Ho thon said bo thongHfc I wmd got into troublo oror the matter, roforring to tho Defianoo ; I Bnid I thought it would be all right. Ho sail ho was not going to sit by quietly »nd 800 hia intorosts taken from him. What I said 1 was ' it would bo all right,' moaning the company and not his sharos, Bench— Then yon say that Mr Bayfeild misconstruod yonr meaning P Witnoss— Yes, intontionnlly. Bonch— Why Ho yon say so ; that is a rery unoharitablo remark P WitnMs— l think ho did it intentionally. Bench— How do you know that P 1 Witness— lt was impossible for him to infer wnat ho alleges. Bonoh— You bad no list of tho Defi« ance- shareholders, and 1 you do not know whothor Dayios was giving equivalent intorost to old shareholders in that com* pany. You know you havo alroady sworn that Davios had full powor to apportion tho sharos, and do you menu to say now that you did'nt know to whom t

thoy were apportioned P Witnoss— l did not. Bench— And yet you aocepted nil Iho slmrelioldcrs lie sent up to you. Witness— l think so. As a niatlor of foot bo Bold tho sharos and referred the buyers to mo for transfer. Louis Davios ro-oallod by tbo Bouch— I was managor of tho Defiance Company, and am novr manigor of tbo Viotory Company, Bonch-pn tho 9th August; you instructed Hooves to soil 2000 sharos for you on tho 11th, and know at tho saino timo that tho miuo was sold to Baithby. Witnoss— No, Bonoh— You know that bo had mado nu offor for tho claim P Wituofls— No, I don't think ho hud, Bonch— l will toll you plainly what I want to ascertain. Why did you instruct Roovoß to sell 2000 shares, knowing at tho timo as managor of tho company that tho property was undor salo P Witnoss— l intended to sell my intorcst. Bonch : And ullow tho piuchasor to suffer p Witness s I wanted to soil. Bench : Did tho public know at that time th«t tbo naino was to bo sold pri* vatoly P Witness s I was anxious to diaposo of my interest. Bonoh : You know that tho mino was I for sale, ami in tho faco of that fact you put a largo i.nrccl of sorip in tho market, Tho publio wore not on lovol terms with you. You woro behind tho scones, thoy woro not. Woro you not afraid of sonic tiling elso P Witness : Tho salo at M'Loan's was no salo. At tbo timo you oould not soil DoGaneos sharos at all. Bonch : You do not soem to exactly understand tho difficulty I fool. You nlncod a largo parcel of your shares in tho mirkct knowing at tho timo that th» uuno was or disposal previously at a remarkably small fignxo, Woro you not alraid tho buyer would suffer a loss. Witness : No, because I did not boliovo that anvbo-ly would buy them. Bench : Do yon say then that you only wont through tho form of putting tho shares up as a moro blind, a sham P Witness I did not think that nnybody would pivon prico for them. I knew that tho dividend would bo small, but as a fact it was greater than I expected. Bonch : Then Dawsau lost loss than you calculated P Witnoss : t oould see how tho thing was. I was sick of it. I calculated that tho diridon'l would not bo more than 3d. Hench . What I want to know is :— At tho timo you put yoor sharos in the roarkot you ha 1 I'enn empowered to sell iho mino privatoly P Witnoss i I know wo had powor to jell tho mine privately, and had an offer, That night I sold for Is and told tho buyer be w>ukl Imvo to bear tho loss, Bench : You hid no four of tho man reproaching you when ho found out that tho mino had, been sold P Witness 1 Oh. »»o, wo notfor reproach ono nnothor over such matter*. Henuh : It in nn ordinary thine; then, you knowing what was to follow P Witnoss r It has boon done often. Benoli : What, a man to buy what he •lion lit was a tangible proporty, and to find out afterwards thit ho bad bought into a sinking f< nuorn P Witni"«M r ( >n one occasion I sold a man somo share and tho mxt day ho came to mo nnd I returned him tho monoy. Bnich : Then you had a certain qualm of conscience P A. I). Tiayfi'ilfl—T sold 10 Dofianco sharps to Caplcs on 14th August y that is tho duto of «mlv, and I reoeivod payment two days after; I think I was paid two days after, an<l guvo a salo noto ; tho salo no'o bears the date of tho day on which I got tho money. 1 boliovo that I did tako tlm transfer to tho raanagorb's offico. M P Mow— What instructions did you give to realise about tho sharos P Witnma— P«rt of tho sharos woro mino nnd part belonged to a client I went to tvl'Lew and told hi-n if ho could soil for botond 6s ho could got his commission. T loft tho parcel of 503 sharos in his hands for salo for Rs, nnd his commission! Ko was not to ha^o commission if ho did not sell, I di I not pay him any commission ; I b"lii'V.< the shares wero to bo sold on thi» 11th August. Cross-examined—l wns at tho auction saloon tho lllh August, when Dolianeo shares wero put t»p ; I hoard what tho auctioneer said ; I heard him go up to 5s but I could not hear any bid : I think ho started over 2s 6.1 and wont onincroasing ia tho usual way. Ho ropoatcd tho bids up to ss ; tho shares woro not sold as ho did not got hie prico- I am proparod to contradict Mirfin when ho says that tho shnros woro knocked down at 49, they were kft'iolced down at 69. By tho Bench— l do not recollect what tho auctioneer said when ho coasod selling the sharos. Examination continued— l was stand* ing at tbo inner door of tho office, that would bo about tho middlo of tho building. I can't say that I saw Davics thoro. Harry I. Smith— On tho 11th *xttt\\st 1877, I wns manager of Gilmers Hotel, Reofton, I recollect a solo of sharos on that dato ; I recollect a salo taking placo on that dato in tho hall adjoining tho Hotel ; ltcoros was tbo auctioneer ; tho only fact I romombor was that Dawson was roportcd to haro bought a largo number of shares on that day. I know of tho sale from tho ordinary course of my duty. It ©amo under my notico somo way or othor, it was spoken of in tho bar. Roevos was in the plaoo on tho previous day and ho said publicly that ho was going to soil DoOance shares in tho hall, in his usual away, trying to got poopta lo go into tho hath Hooves was in tho habit of holding sales in tho hall, at ono timo ho used to hold wookly sales in tho Hall, so far as I know tho othor ' sales had no further publicity than tho ono. '• of the 11th. I di'l not go> into the hall, tho salo wns spnkon of in the- bar. there 1 was general conversation about the salo , for some timo boforo. Cross.oxaniinod--I hoard of the silo in tho hotel, not outside. Rooves was in tho bar somo timo boforo tho salo. Don't recollect whether I ovor saw any advertisement about lleoves salo in tho hall. It was my duty to soo that tho hull wns ready for tho Hales but on this occasion tho oarpontors woro at work, and I had to tuako room und shift tbo things.

At this singo of tho ca-«e. Mr M. >•-... ;. , the prosecutor, applied for an :idj.>ii,-.,< ment, Ho snid that thoro \vi^n» still tin-.' witnesses to bo called in roLnilil. minify. Messrs Guinnoss, Gullino, and I'.-hmn. A long nrgumont onsuod boUvoon c ;n sol nnd tho Bsnch, tbo report, of Mvli is hold over until our noxt isujo. W