DEALINGS IN OIL.

New Zealand Herald, Volume LXVII, Issue 20619, 18 July 1930, Page 14

DEALINGS IN OIL.

TORMER AGENTS' CLAIMS. DISHONESTY ALLEGED. RECOVERY OF MONEY SOUGHT. "MECCA COMPANY'S" ACTIVITIES [T!Y TELEGRAPH. —PRESS ASSOCIATION.] WELLINGTON, Thursday. The operations of the "Mecca Oil Com panv'.' were tho subject of further investigation in the Magistrate s ( ourt to-dav, when tho hearing of tho civil action was continued, in which nlle.gat.ions of dishonesty wore, made against M. I - Pimentcl liy former agents, who sought to recover rcouev allegedly paid to defendant when they were appointed. Tho case for the plaintiffs was concluded, and after hearing several witnesses for the defence the Court adjourned until to-morrow. Nancy Wnrdrop, stenographer, said that during tho five weeks she was employed by Pintentel there had been no communications about oil coming direct from America or going out of Now Zealand. Arthur Bywaters, storeman for Adams and Blyth, said that oil for the Mecca Company would come in one day and go out tho next. Sometimes it camo in and went, out on tho same day. Eric Manning, grocer's boy, said he had been employed by Pimentel. It was part of his work to mix oil that had been returned by somo of tho district agents who wero "pulling out of the tiling." Tho oil was put into drums bearing tho Standard and Texas Oil Companies' markings. Under instructions from Pimentel ho removed the marks on the drums and substituted the words, "Mecca Oil Company." Tho Auckland Agency. Isaac Joseph Bason, bricklayer, said Pimentel offered him the Auckland agency of the company. lie paid a deposit of £25 and a balance of £450, on the understanding that all the money invested in the venture would be secured by the equivalent value in oil. When witness received his first consignment of oil he resigned. He was given a post-dated cheque for £475. This cheque was dishonoured. It represented his life savings. 'lhe oil was valued at £123. Leonard James Paterson, of Auckland, said ho answered an advertisement and Pimentel sent- him a telegram saying that if he had deposited £IOO of the £IOOO for the purchase of his stock he would transfer tho Auckland agency to him. Witness was unable to find the money. Pimentel then suggested that he should find £loo and go into parlrnrship with Bason. On Bason resigning witness telephoned Pimentel offering him £SOO for the Auckland agency. The offer wao accepted and he borrowed somo money in order to pay the £SOO. Manager For Wellington. Philip Percy Wimsctt said Pimentel told him that he was the representative of an oid-established American company, and that he intended to establish tho business right' throughout the Southern Hemisphere. Pimentel said: " Seeing you are not a bad chap we will let. you have an agency for £100." Witness agreed to invest £ICO in tho business on the assurance that he woufd not stand to lose anything. He entered into an agreement whereby he was to receive a salary of £4 and commission on sales

Another agreement was drawn up later tinder which witness was appointed district manager for Wellington. On June 23 hi asked Pimentel for commission on the sales he hail made. Pimentel gave him a cheque lor £6 13s sd. Witness asked for a statement and challenged its correctness. Pimentel, he alleged, hit him in the mouth. " 110 thought ho was going to knock me out, hut ho missed," said witness. " I hit him back and he called for help.7' Mr. Treadwell, counsel for plaintiff: You appear to be the only one of his ens. tomers who got any satisfaction out of liim. „ Evidence ol Secretary. Alfred Dudley Smith said ho was tho successful applicant for tho position of secretary to the Mecca Oil Company. A condition of his engagement was that he was required to invest £2OO in the business. This sum ho borrowed and paid in. His salary was fixed at £7 a week, but it was later reduced to £5 on tho ground that extra assistance was required. While he was in the office witness saw invoices of the receipt of oil from the Atlantic Union, Standard and lexas Oil Companies. Outlining the defence, Mr. Harding said he would endeavour to show that tho statements alleged to have been made lo tho agents who had given evidence for the plaintiffs were not made at all, and that his client had never held himself out as the accredited agent or representative of the Mecca Oil Company. The Magistrate: Is there such a company ? Air. 'Harding: There is not. Counsel added that it had been in the mind of defendant to form a company of that name. He said oil Had been bought locally from the companies mentioned. Further oil had been purchased turret from the Standard Oil Company in America. Contentions of Counsel " Wo' submit," said Mr. Harding, " that these actions have' been brought mainly at the instigation of Wimsett, who, I think it must be seen, had a difference of opinion with defendant and wished to seek revenge." It was regrettable that 'lie cheque for £475 had been dishonoured Inn Mini was probahiv due to the fact that Pimentel had been arrested on 1 tiesda;. night Evidence was given by Douglas Pern berton. the T.rnaru agent for Mecca Oil. lis partner, Reginald Ilobc-rt lavloi, and bv Leslie Simpson Adam of Dunedin, and George Iluptoii of Nelson. Thc-o witnesses said they bad no definite complaints, but they would not have en teied into the contract if they had kno.vn that Pimentel wa« buying oil in Nov Zealand. S >i< I Caiifr of Tawnaki. also gave evidence. All these witnesses had invested sums vamng from £7O lo £2OO. D. S. McCaul and P. F. Philhpn, New Zealand ' representatives of the Slanlnd Oil Company, said that oil for Pimentel had already arrived Another shipment of about I'COO gallons was on "he water in three ships The case was adjourned until to-mor-row.