DIRECTORS CHARGED.

New Zealand Herald, Volume LXIV, Issue 19698, 26 July 1927, Page 11

DIRECTORS CHARGED.

ALLEGATIONS OF FRAUD.

PURCHASE OF MOTOR-CARS

LARGE AMOUNT INVOLVED

SIX ACCUSED SENT FOR TRIAL

[BY TELEGRAPH. —OWN CORRESPONDENT. | DUNEDIN. Monday. The hearing was continued in the Police Court to-day of charges of false pretences against Alexander Campbell (manager), James Shaw Campbell (draper), Samuel Campbell (draper), Charles James Thomas Alexander Lowery (valuer), Frederick William Bamfield (accountant) and Clifford Peel (salesman). All the accused were directors of the New Zealand Motoring and Engineering Company, and it is alleged that they obtained from the Otngo and Southland Finance Corporation, Ltd., and the Traders' Finance Corporation, Ltd., Auckland, various sums by falsely representing that they or their clients had purchased cars and paid deposits on them. There were six charges against the five first-named, involving an aggregate sum of £2875, and all six were jointly charged on three informations involving £llBO. John Greenfield, accountant, local agent for the Traders' Finance Corporation, Auckland, described the method adopted by the corporation in advancing money. It was assumed that a third of the purchase price had been paid by the buyer and the balatice was then provided by the corporation. A sum of £515, and another of £562, had been advanced to the New Zealand Motoring and Engineering Company on the assumption that sales had been made to Alexander Campbell and Samuel Campbell respectively. The promissory notes had all been met before the company went into liquidation. The corporation financed hire purchases, and not straight-out purchases. This closed the case for the prosecution as far as the first series of charges was concerned. The defendants reserved their defence, and were committed to the Supreme Court for trial. The hearing of the other charges was then continued. Hugh Blake Bur'dekin, general manager for the Otago and Southland Finance Corporation, said the company gave an advance of £465 to the New Zealand Motoring and Engineering Company on March 6, 1926, on a motor-car purporting to have been sold to the accused Peel. All the promissory notes had since been met. All the accused were committed to the Supreme Court for trial. Bail was fixed for the three Campbells and Bamfield in the sum of £2OO, and one surety of £2OO on the first charge. On the other charges they were released on their own recognisances in the sum of £SO. Bail in respect of the other accused was fixed at £IOO, with one surety of £IOO on the first charge, while on the other charges they were released on their own recognisances in the sum of £SO.