SURPRISES FOR A WITNESS.

New Zealand Herald, Volume XXXVIII, Issue 11650, 11 May 1901, Page 2 (Supplement)

SURPRISES FOR A WITNESS.

REMARKABLE EVIDENCE IX A COM-

PANY PROMOTING CASE. At Bow-street Police Court a few days ago Arthur Crawshay Bailey and Henry de Stediugk were charged, on remand, with obtaining money by fraud in connection with the Western Australian Development Corporation 'and subsidiary companies. Mrs. Sabina Maria Smart, a widow, of Earl's Court Road, spoke to buying 50 shares at £1 2s 6d each, and 30 £1 in the Western Australian Development Corporation about the end of November, 1895. In February, 1897, she purchased 25 shares in the (Joolgardie Goldfields Company. In the prospectus of that company a dividend of 10 per cent, per anunm for the first three years was guaranteed. She paid the full amount of the shares with the exception of 15s. and when the company was wound up the Official Receiver sought to make her liable for that amount.

-Mir. Muir (for the Treasury): Did you pay ? T . Witness: I had not any money. I invested all my savings in the shaves. Walter T. Kay. a clerk in the Solicitors' Department of the' Board of Trade, said he had investigated the affairs of the companies forming the subject of these proceedings. The Coolgardie Corporation started without capital: but, nevertheless, they bought from G. Martin the Armadale lease for £10,000 in cash, and £4100 in shares; the Dorothy lease for £2750 cash : the Kaniva lease for £4000 cash and £5000 in shares; and also entered into an agreement with the Western Australian Development Corporation to buy the Orotava lease for £25,000. The loss to the public by means of the floating of these companies "was approximately between £60,000 and £70,000. George Martin, whose name has been so frequently mentioned in the course of the case, said he was a labourer living at Southampton. His wife had a daughter by her first husband, and she was married to prisoner, Bailey. Witness acted as best man. At the time Bailey was a salesman at Streaham. He last saw Bailey there about ten year:-? ago. Mr. Muir: Have you ever been to Coolgardie in Western Australia? No; I have never been out of England. Do you know that you own some gold mines in Coolgardie? You do not say so ! I do not own any gold mines that lam aware of. (Laughter). Witness was shown the signature of George Martin on the file of the Coolgardie Company, and said he did not think it was in his handwriting. M;r. Muir. Would you like a cheque, Mr. Martin, for £2150. Witness (eagerly) : I should, indeed. Mr. Muir: Would you like a cheque, Mr. here is one for that amount made payable to you. Is the endorsement on the back in your handwriting?

Would you like a dividend warrant for £3298?

Very much, indede. (Laughter). Weil, here is one with your name on it. Well, I have never seen it before, and the •endorsement is not mine.

Witness was shown a number of share transfers, signed " George Martin." Some of the signatures were his, but others were not.

Mr. Muir: Did you ever sell any shares to Bailey V

Certainly not. I never had any to sell. You never got £1500 for shares sold to Bailey? No. Nor £50 in February and £150 in March, 1697? Good gracious, no. (Laughter). I never had an office in my life, nor any shares in a company. Prisoners were remanded.