SENT FOR TRIAL

New Zealand Herald, Volume 78, Issue 24133, 27 November 1941, Page 10

SENT FOR TRIAL

CHARGE OF CONSPIRACY CHAIN GROCERY STORES J. W. S. McARTHUR'S CASE SYDNEY, Nov. 25 John William Shaw McArtlmr, aged 40, manager, Arthur Bridgewater, 36, director, William Bryce, 40, director* and Arnold Lovel, 49, salesman, were committed for trial at the Sydney Police Court last Friday on a charge of conspiracy. The lyjaring of the case took several days, witnesses stating in evidence that they had given money or securities to the defendants in exchange for shares iu a chain store grocery co-operative company, which they were later told had been wound-up. At the conclusion of the Crown case, Mr. W. Shand, for McArtlmr and Bridgewater, submitted that there was no evidence against either of his clients upon which a jury would convict. Objects of the Scheme "There is not the slightest evidence of false pretence against McArtlmr," said Mr. Shand. '"Mr. Rooney, at the opening of the case, said that the only evidence against McArthur would be given by Mr. Gulliver, and there is not one statement in Mr. Gulliver's evidence of misrepresentation of fact. Gulliver savs he has known McArthur for five years, and has not known him to tell a lie." Mr. Shand added that the co-opera-tive scheme was an excellent one. In 1940 a system of co-operative shops was evolved, each shop being a society. They were to get money by selling _ 10s shares in the society. At the same time, they would get customers by selling to the shareholders. The intention was to buy more shops, and so extend the j scheme to chain co-operative stores. At the back, there was a co-operative wholesale company, whose function was to supply the shops. Capital Raising Restriction Why it failed was that on December 15 it was laid down that no company could raise capital without the permission of the Federal Treasurer, continued Mr. Shand. ''lt is a wicked thing when a man is brought here on a charge of conspiracy like this, and no evidence whatever is offered against him. The Crown could not give one fact of misrepresentation. Mr. Langsworth has dealt with Mr. McArthur over a number of years in transactions of about £20,000, and knows nothing whatever against him." Mr. Lynn, for Lovel, declared that there was no evidence of any conspiracy on the part of Lovel. "It is admitted by the Crown that Lovel was onlv employed as a salesman," he said. "Mr. Rooney made the admission that he had no evidence that Lovel was other than a salesman."