UNFOATED MINING CLAIMS.

New Zealand Herald, Volume XXXIII, Issue 10079, 14 March 1896, Page 6

UNFOATED MINING CLAIMS.

ANOTHER CASE IN THE MAGISTRATE'S COURT. At the Magistrate's Court {yesterday, before Mr. H. W. Northcroft, S.M., James Thomas Hendry, on behalf of his son Clifford, a minor, sought to recover from Nicholas Hand the sum of £11, purchase money ef 500 shares in the Hauraki Queen Gold Mining • Company, of which plaintiff had been unable to obtain delivery. Defendant is a miner at Coromande), and plaintiff a broker living St Epsom. Mr. Jackson Palmer appeared for the former, and Mr, Burton for the latter. Clifford Hcudry deposed to giving his {brother Alfred the sum of £11 to invest. He recognised the transfer produced, it was the One he signed. t , . Alfred Hendry, brother to the last witness stated that the defendant sold him a half share in the Hauraki Queen mine. He paid £11 for it. Witness received the transfer produced on the following morning. Witness purchased on behalf of his brother Clifford. He understood that as a rule 1000 scrip made up a full share, hrncn the transfer showed 500 shares for half a share. Witness endeavoured to register his transfer, but the manager, at the time, told him lie could not do so, as the company was not then registered. Witness had informed defendant of his inability to register, and he (defendant) replied that he would give witness a share in something else if he h#ld on to it; and subsequently that he would give nothing until the mine fell right through. Witness next tried to register the transfer with Mr. Grosvenor, but could not do so, as the company was not registered. Hand had since refused to give witness auy shares in lieu of those in question. In reply te Mr. Palmer, witness said he agreed to buy :a halt share. In reply to a question from the Bench, witness said that Hand had asked ' him if he would buy a half share in the Hauraki Queen Gold Mining Company. He also said that Mr. Cahill had it in hand, that it was already floated, and witness would be able to register in a day or two. Charles Grosvenor, legal manager, stated that in September lasta»Mr, Cahill handed him the prospectus of the claim in question. Witness related the circumstances in connection with the endeavours to float the company, up to the time it was duly advertised and" legally formed, but not registered. The registration was never effected, owing tfl the Inability to obtain the requisite capital proposed at the outset, by reason of the fact that one of the subscribers did not take up the shares he had agreed to take. At a special meeting of the subscribers it was resolved, " That as certain subscribers did not agree with the promoters' terms, it was inadvisable to proceed with the formation of the company." In reply to Mr. Burton witness stated that the immediate reason of the mine coming to grief was the refusal of one of the subscribers to pay up. The property had since been sold for wages due. Mr. Palmer said the defence would be, briefly, that defendant had sold a half share, of which he held three and a-h&lf in the mine,

and concealed nothing. Nicholas Hand, defendant, stated that he was one of the original owners of the Hauraki Queen claim. Mr. Hendry, sen., had frequently done business for him, and had sold anotiier half share for him in the same mine, Mr. Hendry knew more about the floating, etc., than witness did, as he (witness) often vent to him for information. Witness gave him the halt share in question for disposal, and the son eventually became the purchaser, and Mr. Hendry, sen., was to get £1 commission. The other half share, bought by a M Lew, was sold two months before witness knew of it. He concealed nothing about the mine. In answer to Mr. Burton, witness said he told Mr. Hendry's son to wait, when he complained that he was unable to register his transfer, but never premised him anything. Witness did not say to young flendiy that the claim was fleated, but that he had heard most of the shares •were taken up. After signing the transfer, wituess did not see it tilled iu—that was done by Mr. Hendry, sen. Donald Sutherland, one of the original owners, also gavs evidence. Mr. Palmer said the matter seemed to him to resolve itself into, what did defendant sell? He sold a half share in the Hauraki Queen claim, and Hendry was then in the same position as defendant as one of the promoters, and should have registered his transfer down at Coromandel. He also drew attention to the fact that the transfer did not say "company," but "L.H." (licensed holding). The defendant simply sold a half sluie, and the plaintiff bought his chance. There were no numbers mentioned in the transfer, showing clearly that there were no shares. His client conceded nothing, and the plaintiff was in possession of all the particulars at the time of the sale. Mr. Burton said he would not say that there was absolute fraud, but would take a more charitable view of the matter and say it was a mutual mistake, and snbmitted that that was sutbeiont reason for rescinding the contract.

His Worship remarked that the case seemed to him to be that Hand had a certain share in a mine called the Hauraki Queen licensed holding, that Wis on the transfer, and Mr. Hendry, senr., was his agent for various sales. Hand from time to time wanted money, and sent to Mr. Hendry to sell for him, and among other things his agent held a blank transfer. On the particular morning of this transaction Hand asked him to sell a half share for him, and young Hendry came into the conversation, and, as he said, defendant offered him a half share, which he stated he would let go for £11. The thing that Hendry bought in 'he first instance was undoubtedly, His Worship thought, one half share. With regard to the transfer being registrable at the Warden's Court, he would look up the Act, and give his decision at a future time.