GOLDMINING CASE

New Zealand Herald, Volume LXXIII, Issue 22344, 15 February 1936, Page 15

GOLDMINING CASE

ALLEGATION OF FRAUD PARTNERS GO TO COURT ORDER FOR DISSOLUTION [by tklegraph OWN corrkspoxdknt] PALMERSTON NORTH, Friday Allegations of false representations as an inducement to enter into a partnership in connection with a goldmining venture at Tokomaru were made in the Supreme Court at Palmerston North, when Oswald Frank Foddy, of Hastings, salesman, proceeded against Edward Ralph Martin, prospector. Plaintiff sought the dissolution of the partnership, the sale of tbe assets, and the payment to him of £337 which he had put into the partnership, or alternatively, £4OO as damages. Foddy said he had met Martin in Hastings in May, 1935, when defendant was endeavouring to obtain finance for his mine. On that occasion Martin claimed to be a thoroughly experienced miner and geologist, having prospected in Alaska, Australia and New Zealand. He further claimed that he knew more about mining than anyone in the Mines Department. Plaintiff, continuing his evidence, said defendant stated that he had spent £2OOO of his own money on the Tokomaru property, and that for another £3OO it could be made a payable proposition. Witness also gave evidence as to Martin's Btating that assays had shown loz. 12 pennyweights of gold and some silver. Altogether, he had advanced about £337. A battery had been purchased by Martin, but witness described it as so much scrap iron, essential parts apparently being missing. No Gold Found John Francis Dewey, inspector of mines, said he had taken samples of ore from the mine and forwarded them to the Dominion laboratory and the Thames School of Mines for analysis. The reports showed that no gold or silver was present. Defendant, in ojx?ning his case, requested an adjournment, as he was in difficulties with his witnesses, but this was pot granted. Defendant said most of his mining experience had been gained at Lake Taupo, but be had prospected in both islands as well as Australia and Alaska. He denied lie had induced Foddy to enter into partnership, saying that it was the other way about. Martin admitted that he had sent plaintiff a telegram from the West Coast suggesting that they should purchase some gold, but denied that it was for the purpose of "window-dressing" thg mine. The position was that a miner had offered to sell him between £BO and £9O worth of gold for £35. His Honor: Was the miner drunk? Martin: He wanted to avoid being taken down. " Department Prejudiced " Defendant admitted, in answer to a question, that he had never sold any gold from the mine and that assays had shown negative results for gold. His Honor: Do you still think there is gold in tho mine? Why don't you send samples to the Mines Department and find out, instead of deluding yourself ? Martin said he could call prominent business men to prove that the Mines Department was prejudiced against him. His Honor: L am not surprised at that. "1 can't avoid the conclusion that several of the allegations of fraud have been proved," said His Honor, in making an order for the dissolution of the partnership and the sale of the assets