THE PUPONGA COAL MINE.

Nelson Evening Mail, Volume XXXVI, Issue XXXVI, 24 October 1902, Page 3

THE PUPONGA COAL MINE.

A SERIES OF ACTIONS. Mneh interest was manifested at th--Magisl rates Court this morning, when an action was commenced against Joseph Taylor, late manager of the Puponga Coal ani Gold Mining Company, by that Company. Several informations have been- laid, and the first one dealt **lih was with regard to alleged production of false accounts. Mr A. T. Maginnity appeared for the Mr S. G. Hay ward, a shareholder in the Puponga Coal and Gold Mining Company, and Mr C. T. Fell acted ae oounsel fo* Mr Taylor. Mr Maginnity, in opening the case, said lhat Bhould it happen that a jnry must decide in this case that theie was nothing more than a mere mnddlement of accounts, his client wonld ba exceedingly pleased, as he was sorry to have tbe matter taken to Court. Mr Maginnity explained that five or six years ago Joseph Taylor and James Walker made a .iitcovery of coal at Puponga Inlet, on the weßtvrn shores of Golden Buy. I hey both workea as partners fro a time, and Walker ull in*ateJy_ retired. Taylor the^ took up an additional aroa in his own name and au additional one ia bis .life's tiame. A company was afterwards f *rmed in London, aad knoun as tne Puponga Coal and G. ld Mining Company, M. ssrs Davis and Bicknell Hall, of Sun pshire, holding tho deeds of trust. Be oie the regislratiou of the comp.ny several sinus of money were s- nt out to Mr Tailor from Loudon, and n^w there was mnddlement of accounts. The Company was registered on J uly 1, 1901, and an assignment maie on the sth of that year. Mr Bicknell Hsll left the Com pan , and Mr Hayward filled his place. Mr Davis came out to the colony, but shares could oot be alio. ted until the 28th November, 1901. in the meantime £3.800 waa sent out from London to Ta - 1-ir. The t.ompauy Wdß duly fur med with £70,000, and of this sum £20,C3U was allotted to Taylor in paid up sliares, and £2000 in paid up thareß to Mrs Taylor. Tha whole of the money sent to Tayl-jr was remitted through the Union Bank by Mr Hayward. Mr Hayward left Loudon in April and arrived in Sew Zealand in Jnne. Met Taylor, and in an interview applied for a statement of accounts several limes, but was unable to get them. He also wrote a letter to Taylor asking for them, but no reply in as received. Correspondence between coun sei on both sides was then read, which led up to tbe Court proceodiugs. Mr Haywa.d wa- a practical acouuntant, but had been unable to make anything ont of tbe accounts now before the Court. On the 17th September of this year Mr Taylor's services were dispensed with. Tbe various items submitted in the balance sheet were then gone into minutely, shoeing the Compauy to be in Mr Taylor's uebl to the amount of .£658 2s. fit r Maginnity expressed the opinion that there was not a tingle clerk in the United Kingdom who couhl make anything out of the s ccounts submitted, as had been proved by the statement that had betn prepared by Mr Fell's clerk. Mr Taylor had made-- grave derelectioa of his duties in the way hu had handled the accounts. Un the 19th August all work in conned ion will) tbe mine was suspended, and Mr Taylor came on tu Nelson. All thu credit ntries w^re made on that day. On tho 31bt Jday Mr Taylor wrote stating that he p Messed £i()SU 0- 2U belonging to the Company. Later ■. nMr Taylor informed Mr Hayward that the Coy, owed him ( Taylor; about £80 or £40, but did not mention a ytuiug about the *._OO or £900, which the statement of accounts [•bowed tbat tbe company were in debt to him. On the 6th of i his month, Mr Taylor, who then had nothing to do with tne company, drew from the Union Bank £314 out ef thu company's funds. Sergeant John Dougan, sworn, deposed that he executed a search warrant fr tayljr, on the thirteenth day of the pre- _> nt montn, at his private rt*BidenC9, and seized a caati book, day buuk, receipt book, (jro loose sheets containing eigbt pages, two and a half sheets containing debtor and credit or statement, three drafts of a balance eheet, blue sheet of account, an account rendered book, and eleven obeque book blocks. Tbe things were giren up very reluctantly, in the presence of Mr Hayward. Mr Taylor was present at the time and objected to tbe banding over of lhe day book as it possessed private matters. The private matters wnre turn, out and handed to Mr Taylor. Sydney George Hayward, accountant, at Whitchurch, England, and now resident ab Nelsou, said he was the attorney and managing director of tbe Puponga Coal and Gold Mining Company, Ltd. His posver of attorney to whicn were annexed the cettificiteof inc-rporation, and artL les of association, were then produced in Court. The company purcuaaed from Mr and Mrs Taylor three dLt not leases aud two assignments, two being fiom Joseph Toybr, and the other from Aunie Taylor. 'There wore also two further assignment-, one being for tbe a:signment of chattels. The '.ouct then adjourned for lunch On resuming, Mr cay ward garo further evidence. An aißignmment oft.o leases and also of tbe chattels, -showed a numinal consideration of one shilling. When the assgnments were made to tbe compauy, Mr laylor was holding tbem in trust. Ln regard to tue consideration for th. se, the company was to allot to Mr Taylor £20,00u fully paid £1 shares. The company also convenanted * o spend* 8400 in tue developement of tbe mine. Of this sum £380u has been remitted to Mr Taylor eince September sth, 1901, £.000 being ceut by the partners and £2800 by the company. The company was regibtetei on the Ist July. It is necessary under the English Company's Act for a contrac to be entered into between the vendors and the company, to be filed with the i R gistrar uf Joint Stock Compuuies, constituting tbe title of the alloiees, to the shaes issued to them where shares are is sued for consideration other than oasb. i he company could not expend money on the property bore. The contract was entered into on the 28th November, 1901, and filed wilh the Registrar iuiuudiately afterwards. All monies since the 28th November have been remitted/ by tne company. On December lath, 1901, £50C was remitted, £800 on the 21st Dec mber, and £l&H)on .he2lßßt January of the pi esent year. As Secretary to the company, he forwarded tbe monies by cabk to the Uiion Bank to the credit of Jobepj fcaylor. j. Mr Maginnity then asked witness foi what put pose the monoy was sent. Wit nt sss : To be expended on the mines Mr Cell * I object, to this going dowr on the depositions as it was not evidence I HeaUd remarks on this ruoul point then .took place between o unsiloh butt ■ sides, and ou an interjection being jmadi |by the defendant, Hr fl__«guui.i-y said i