AUCKLAND SUPREME COURT

New Zealand Herald, Volume XLIII, Issue 13355, 8 December 1906, Page 9

AUCKLAND SUPREME COURT

The sittings of the Auckland Supreme Court wen resumed yesterday momin e , gbefore His Honor Mr. Justice Edwards. THE CASE AGAINST WALTER MAXWELL. The charges of fake pretence* preferred against Walter Maxwell, in connection with the acquisition of the Q.C.E. business in Cambridge from John Boras and Co.. Limited, in the year 130*, were heard, tint accused (who was not represented by counsel) entering a plea of not guilty. Theialsc pretences forming the basis of the indictment consisted of obtaining, with intent to defraud, from the firm mentioned, goods to the value of £2707, and also the stock-in-trade and book debt* of the stored at Cambridge.

C. J. Parr, solicitor, who prepared the contract of sale on behalf of John Burns and Co., gave evidence that no cash was passed in the transaction,tmt accused made the representation (about which he offered to make a declaration) that he had between £6000 aud £7000 to hid credit at Lloyd's Bank, in London, and that by sending Home for a portion he could pay the purchase money in a few months. Mr. Burns appeared to be satisfied to Jet the business go on this representation, aud a promissory note was given, falling due on July 4, no declaration being asked for by the vendor

Robert Burns, director of John Burns and Co., said that in discussing the terms of the. purchase of the business, with accused the latter stated he had enough money at Lloyd's Bank to pay for the concern twice over. This representation, which was made before the contract was signed, induced witness to sell the business to accused and his partners, Wright and Saunders. The date of the promissory nolo was made July 4, at the request of the accused, who said the money would possibly not reach the colony till then, but he. expected it a month earlier. The promissory note was never paid, and accused disappeared. He had had to be extradited from Australia.

F. J. .Saunders, one. ot the partners of the Q.C.E. Stores, Cambridge, $aid he managed the business for John Munis find Co. up to the time of the partnership. Tim partnership was arranged by Bums and Co. for £1500; £500 was to.be paid by Burns and Co. on witness' behalf, and the balance between Wright and Maxwell. This arrangement was never completed. Wright and Maxwell signed the deed* of partnership, but witness did not do so, in accordance with instructions from Bums. . Charles Aldridge, cheque clerk Bank of New South Wales. Auckland, said he had searched the bank' books from December, 1903, to July, 1904 inclusive, and he found no entry of the names of individuals and firms mentioned in the list (put in), nor had any credits from Lloyd's Bank. London, been received in the names of Walter Maxwell or Cameron. A promissory nolo for £2707 was tendered for payment to the bank in the name of Maxwell/but was dishonoured.

Mr. E. Gerard, official assignee. Auckland district, said the firm's books showed that Maxwell was alleged to have put in a capital of £6000. Had that sum been paid in by prisoner the business would have been perfectly solvent. Witness had failed to find any trace of this £6000. At prisoner's request witness saw him in the gaol, and Maxwell spoke to him for 20 minutes. After witness had duly cautioned him (as what he said seemed to be -irrelevant), he told prisoner he had better come to the point. Mr. S. Mays, of the Crown solicitor's office, read out the charges against Maxwell, in accordance with his request to know what he was charged with. Maxwell said he had been advised by three counsel in West Australia that he bad been unlawfully charged, and could,' therefore recover damages, and on recovering them he would be able to pay his creditors. When asked if that was the onlysource upon which he* relied to pay bis creditors, he replied that he had no other means. With regard to the £6000 already referred to as lying to his credit in Lloyd's Bank, London, Mr. Mays read selections from a letter received from the police at Scotland Yard, London, with respect to the search made in London for the £6000. A selection from this letter read as follows: — "A provisional warrant was issued by F. W. H. Fenwick, Esq.", at Bow-street Police Court, for the arrest of Walter Maxwell, for obtaining goods by false pretences in New Zealand, and inquiry has been made with the view to arresting the fugitive, but up. to the present without .success. Inquiry has been made at the head office of Lloyd's Bank, London, and the manager states that no person named Walter Maxwell has an account there, nor at any of their London branches." When witness asked prisoner what he had to say to this he replied: "I had no money at 'Lloyd's Bank;" and he added that he would "plead guilty to the charge of having absconded from the colony with more than £20 of his creditors' money. The delay in bringing proceedings by creditors was due to prisoner having undergone a term of imprisonment in Australia. Prisoner asked witness if he did not bring Mr. S. Mays with him for the purpose of "trapping" him (Maxwell). This Mr. Gerard denied. Mr. S. Mays corroborated.

A. H. Wright, traveller, . said he had never heard Maxwell make a remark to either Mr. C. J. Parr or Mr. R. Burns that he had £6000 on the occasion when witness met prisoner and Mr. Burns. No reference at all was made to money in witness' presence at that time. '

Cross-examined by prisoner, witness said he had told no one in witness' presence that he had £6000.

The Clown Solicitor: Your anxiety was to show John Burns and Co. up'' Witness: I am most anxious to show John Burns and Co. up : yes. Did you write this anonymous letter? Tt is addressed " Mr. Tolc, solicitor, Auckland," and reads: "Mr. Tolc, if you call Mr. Wright, the other partner in the late stores, to give evidence when the case conies before the Supreme Court pome startling evidence will come out, in which one of Auckland's leading firm's dishonest dealings will he brought to daylight. I cannot mention more, as I am leaving Auckland in a few days, and will not be kept here Co give evidence against myself, but you will find all this out when you' call Mr. Wright. —I am, yours, Honesty. [So much was in typewriting : tie rest was in handwriting.] Mr. Wright's office is Market Entrance. He has left Auckland yesterday by inducement of this firm." Now, did you write that?— No. '■' - ,-,..- r ,

You have get your knife into Burns.?— No; no knife, and no malice. I wish to do justice to Maxwell, that's all. Was anything said in Parr's office by prisoner that he expected to get £6000 from Home I would not swear to that. It might have been £2000 which he said he was to get from a bank in Melbourne. Do you believe that?—l did at the time. This concluded. the evidence. After an address by the prisoner, the jurv retired at twenty-five minutes past four p.m., and returned at ten minutes past nine p.m., having failed to agree upon a verdict. An application for a new trial was deferred until this morning.

ANOTHER CASE. Prisoner was next arraigned on charges of making fictitious entries hi his books, and with falsifying accounts. He pleaded not guilty. Another jury was empanelled to hear this case. -■_.

E. Gerard, official assignee, gave evidence in support of the charge, and described the state of prisoner's affaire, adding that a dividend of lis in the £1 was paid by the prisoner's estate, and no more was expected. There was a deficiency in the prisoner's books of £480. Witness also went into several items recorded in the books. In leply to His Honor, witness said the accounts did not show gross ignorance, but that the prisoner had some knowledge- of accountancy. He had discovered no capital put into the business by the prisoner. Witness repeated his evidence given in the former case of hi« conversation with prisoner in the gaol.

W. K. Holmes gave evidence of the stale of prisoners account books, and explained the methods of his accountancy, which showed some acquaintance with book-keep-incr. At this stage the case was adjourned until ten a.m. to-day.

. CIVIL MATTERS. .' „ The actions of Arena Tubi atsd others r» Kenneth Finiayaou awl another, and Turi* Baku arid others v. B Kenneth "Fialaysott mid another, have been - postponed till tide February sitting; of the Court in 1907. owing to* application having b<en made by plaintiffs for an Order-in-Counr:! under the Laud Titles Protection Act. 1902, which m ."tiil pending. The actions are in reference to the ownership of native land*'.

PROBATE. In Chambers yesterday probata vn§ granted by His Honor in the following estates:—Janet Drinnan "(Mr. JobnatOft), William Gray (Mr. Jackson), Row Ulrica (Mr. Mahony). Neil Smith (Mr. Nieho!son), John Rowe (Mr. Lusk), Alfred S'leventon (Mr. Dealc). Joseph .Johnson <Mr. Burton), Patrick Mtcdoaakj (Mr. YVrnyard), Daniel Powell (Mr. Lusk). Letter* of administration were granted in the cst<ite of the late Mary Ann Rowe, or: the. motion of- Mr. Lusk.