SPEEDWELL OIL CASE

New Zealand Herald, Volume LXX, Issue 21505, 31 May 1933, Page 13

SPEEDWELL OIL CASE

DEVELOPMENT OCCURS PRODUCTION OF DOCUMENT TEMPORARY ADJOURNMENT A development occurred in the Supreme Court yesterday, in tho "hearing of the claim by shareholders against former directors of Speedwell Oil Company (N.Z.), Limited, when a witness, Leslie Clarence Adams, produced a document which lie stated on the previous day he believed to have been lost or destroyed. He bad been pressed by cross-examining counsel on Monday to admit that the document never existed, but had asserted that it did at ono timo exist. Tho document was an unsigned draft agreement between Charles Adams and Harry Clinton McElwain.

Plaintiffs in the case, which is being heard before Mr. Justico Smith, are Georgo Ernest Smerdon, jeweller, of Auckland, and 48 other shareholders in Speedwell Oil Company (N.Z.), Limited. Their claim is for £1633, against Harry Clinton McElwain, company manager, of Auckland, George Frederick Parkes, company secretary, of Auckland, and Murdoch McKenzie Millikin, consulting engineer, of Auckland. Plaintiffs allege that representations in the prospectus of the company, issued by defendants, were untrue, that they were made with the intention of deceiving the public, and that the company did not obtain the full minimum subscription of £6OOO within 90 days, as provided in the prospectus. The defence is a general denial of tho allegations.

Mr. Gould appeared for tho Wellington plaintiffs and Mr. Dyson for tho Auckland plaintiffs. McElwain was represented by Mr. Weston and Mr. Goldstine, and Millikin and Parkes by Mr. Wilson. The hearing was resumed yesterday with Leslie Clarence Adams still under cross-examination by Mr. Weston. Mr. Weston: Are you willing to admit that the so-called missing document never existed? Witness: I can produce it. Witness then produced the document, with other papers. Mr. Weston: When did you find it? Witness: It was found by my typist this morning and handed to me, together with other documents. Addressing His Honor, Mr. Weston said the production of the document had taken the defence by surprise and he would, ask for an adjournment to consider the position. Tho documents should have been produced months ago.

His Honor: On the face of it this man could not have been served with an order for discovery. What is your present application, Mr. Weston? Mr. Weston suggested tho Court should adjourn for half an hour. Witness (to His Honor): I should like to explain, Your Honor, that when I claimed the privilege of the Court yesterday, it was done because I had already been threatened with criminal proceedings. His Honor: Oh, well, I cannot go into that matter just now. The Court then adjourned. After counsel had conferred among themselves for more than an hour, and finally with tho Judge, it was decided to extend tho adjournment until this morning.