HOTEL TAKEN

New Zealand Herald, Volume 80, Issue 24758, 4 December 1943, Page 8

HOTEL TAKEN

SHORT NOTICE GIVEN LARGE COMPENSATION CLAIM (0.c.) WELLINGTON, Friday The hearing of a substantial compensation claim arising frojn the taking over of the Hotel Cecil by the Public; Works Department at short notice in June last year so that the building could be used by the United States Marine Corps was started in -a Compensation Court yesterday. The Chid Justice. Sir Michael Myers, presided and with him as assessors were Mr. J. L. Griffin, public accountant, and Mr. W. Appleton, company director Possession of the premises had been taken by the Public Works Department under the Accommodation Emergency Regulations, and later the site had been taken under the Public Works Act. Mr. D. 11. Hoggard, with him Mi A. M. Cousins, appeared for claimants. Mrs. Guyneth Alberta Edmonds and Hotel Cecil, Limited, and the SolicitorGeneral, Mr. H. H. Cornish, K.C., with him Mr, J. M. Prendeville. for the Crown. Net Sum of £70,914 Claimed The sum claimed was £129,914, the principal items being £72,836 for the land, buildings, and other improvements. £47,161 for the licence and goodwill, £IOOO for loss incurred because of forced sale of the furniture, £750 for loss in the disposal of liquor stocks, and £7967 for interest on moneys for a period necessary for their reinvestment. Against the total of £129,914 was set £24,000 paid by the Government in discharge of two mortgages and £35,000 paid over to claimants on June 3, 1943, on account, leaving the net sum claimed £70,914. Outlining the case for claimants, Mr. Hoggard said that on June 17 the Executive Council made an Order-in-Council which gave power to occupy the premises summarily. At 4.45 p.m. the same day. before the Order-in-Couneil had been gazetted, notice was served on Mrs. Edmonds' solicitor requiring possession of the whole premises to be given up by 9 a.m. on Friday, Juno 19. Between 5 and 6 p.m. on the day notice was served, Mr. Edmonds came to an agreement with the Public Works Department by which the Government would purchase the furniture at valuation, and valuers were appointed. "One Day to Get Out" "The claimants had only one day in which to get out of the hotel," said counsel. The valuers set to work and a figure was agreed on between them which the Government had paid. The Government did not purchase the liquor and food stocks, nor the glassware. The liquor had to be disposed of in one day, Thursday, June 18. "The Thursday was a day of confusion," continued Mr. Hoggard. The staff had to be paid off, Mr. and Mrs. Edmonds were both indisposed, and it was inevitable that there were losses through the free supply of liquor to customers and through pillage. Possession of the premises was taken by the Marine Corps at 9 a.m. on the Friday. Counsel detailed the earnings from the hotel. The profits for the years from 1938 to 1941 and for the period of 1942 to the taking over totalled £16,896. Hotel Cecil, Limited, was a private company, Mr. and Mrs. Edmonds being sole directors and shareholders. Each received £IO4O yearly as directors, and in addition had free accommodation and board. A son who was not in the best of health received £338 yearly and accommodation for his services in helping to run the hotel. Mrs. Edmonds, as owner of the freehold, received £2OOO a year rent from the company. Expert accountants would be called to say that, taking all factors into consideration, the annual profit to Mr. and Mrs. Edmonds was £9209. The profit, counsel said, would have been considerably greater had claimants had previous experience of hotel management. The hearing is expected to last three days. DISPOSAL SOUGHT E.P.S. MEDICAL STORES DEPARTMENTAL DELAYS The suggestion by the Mayor of Auckland, Mr. J. A. C. Allum, that surplus E.P.S. medical equipment and supplies should be sent to missions in the Solomon Islands has led to a disclosure that the Christchurch Metropolitan E.P.S. has been trying without success to get the National Service Department's permission to dispose of such goods. The Mayor, Mr. E. H. Andrews, in reply to an inquiry, said that the equipment included articles which were deteriorating through lack of use, such as rubber sheeting, and also blankets, which were liable to damage by moths. The E.P.S. had written several times to the National Service Department to ask whether it might dispose of these goods by sale or as gifts, and if so, on what terms. The most recent reply asked the E.P.S. to make an inventory. This had been sent to the department, but no reply had yet been received about what was to be done with the equipment. The E.P.S. had had applications almost every day for some of the articles, including applications from New Zealand hospitals which could not get some of the supplies elsewhere. Mr. •Andrews understood that the National Service Department was to have first demand on supplies available for disposal for nrgent public purposes, in which category the Solomons hospitals might bo included. PRICES FOR ONIONS RATES THROUGHOUT YEAR (P A.) WELLINGTON, Friday Limit retail prices for onions all the year round are provided for in a price order effective from to-day. The order, which includes prices payable to growers for the new season's crop, covers all New Zealand-grown onions sold for human consumption with the exception of spring onions and shallots. For fair average quality grade the limit retail prices are: —December, 7d per lb.; January, 1944. 3d; February, 2?, d; March and April, 2|d; May, 23d; June, 3d; July, 3.id; August, 3i[d; September, 4.\d; October, 4i}d; November, o.Jd. Concession prices are provided for purchasers of 51b. or more. The maximum prices to growers are: January, £l3 a ton; February, £l2; March and April, £10; May, £11; June, £l3; July, £ls; August. £18; September, £2l; October, £24; November, £3O. For pickler grade the maximum retail price is 31d per lb. throughout and the maximum price to growers is £ls a ton throughout.