THE COURTS

New Zealand Times, Volume LIV, Issue 9866, 24 March 1893, Page 3

THE COURTS

SUPREME COURT—OXtIL 883310N5. Thursday, March 23. (Before Hia Honor the Chief Justice.) Colonial Bank t. T. K. Macdonald and Wipe (Frances R. Macdonald). Mr Edwards (instruoted by Mr Chapman) for plaintiff bank, Mr Geo, Hutchison for Mr T. K. Macdonald, and Mr Jolliooe for Mrs Macdonald. Thu bearing of the case was continued at 10 a. m. Francis Sidey, auctioneer, was re called, and bis o-ose-ezamiaatlon resumed by Mr-Tel* liooe. He thought the property interests which he sold by direction of Mr Macdonald fetched about as much aa they would be likely to bring if put up again. The sale was regularly and properly conducted. His Honor considered a general answer like this was worth little in view of tho Witness’ previous specific statement that the cale was not advertised in subh a way (is, to attract and encourage competition. Croaa efcaminotloD continued } A good many more particulars co.uld have been given !h the advertisement .of the property Interests to ho sold. Ho treated the sale all through as being of very little valu«, and the properties as being jyorth but little,and if of the values ho supposed thorn to possess he would not have gone to much further expense in the way of advertising. Still, bad he written tho advertisement of sale ho would have given more particulars. His Honor presumed the interests in property at Karori related to shares In property then held jointly with other persons. Mr dellicoe : Yes, It was a speculation Similar to that connected with the Melrose estate, in inspect of which a number of g.'utUmeo, possessed of more money than scb?e, put their money into a bag and bought property with it, hopibg to ihake a profit. Some uf the Vogeltowo Sections are ao steep that the r.Dly way of surveying them would be to send up agoat with aohaln found Its ncok. fc / . % The witness, was re-examined at considerable length, namely, as .to the grounds upon which he based his valuation of lover*, loeby Bouse at £4OOO (for mortgage purpose*) and as to its letting value. He did not think he could get £4OOO for it at present or obtain a tenant at £2OO a year. It was a place suitable for a bank inspector or a wealthy mao, cr for the purposes of a private hotel. He was also questioned as to the method by which be assessed the minimum value of the Church street leasehold at £IOOO. He did not think the let* ting value of property io Wellington was much more than 5 per cent on the capital value.

Wilfrid H. Didabary, olerk fa the Union Bank of Australia, deposed that P.O< cheque (produced) passed through his bank on 4th May, 1892, and was placed to the account of Bell, Golly asd Jz*.rd, John Duthie, merchant, remembered being present at an auction sale la Mr Sldey'a auction room OQ2lstJune, 1892. He was at* traoted there by the sale of certain interests la property at Karon, The advertised notice of the sale escaped hie attention, and he was apprised of the sale by Mr Lancaster. The advertisement gave very little informa* tion, and he wont to the sale because he did not know in what way bis own interests might be affected. Prior to the sale be twice sent a clerk to Mr Sldoy for partldularo, cad on tbo second call he was referred to Mr Orr for information. Then Mr Wallace (one of the parties associated with Witness in the property at Karorl) reported to him that he bad communicated With Mr Ofr, but could got no Information. They thCn instructed Mr Menteath to ascertain particulars, but As be gave no information they accompanied him to the auction room bn the day of the ode. The room was fairly well filled. The auctioneer read the conditions of sale aud then various particulars ppjut tbo properties from a document evidently drawp up by a lawyer—lt was so confused. He made oat that the auctioneer bad. to soil Mr Macdonald’s interests in certain property at various stages of assign* ment* to different people. Nobbing was stated to give him an idea of the value of the reversionary interest in Mt Macdonald's father’s will, wbioh Interest was also offered for sale.

Mr Edwards called Mr Macdonald upon his sabpesaa to produce the particulars of sale.

Mr Macdonald said he had nob got them. So far as be knew they were taken off the hie to enable the deed to be prepared, and he hid out seen them since. Examination continued i There was no competition for any one of the lota offered—the interejt in * Beautiful Karori ’ no more than the rest inducing competition. Mr Harris was the only bidder. ‘Beautiful Karori* was owned by a party of speou* labors, of which be was one. Mr Macdonald had an interest in It of the value of about £2OO or £250 on the adjustment of accounts. Thu Value had not been ascertained at the time of the side, as the accounts of the syndicate bad not than been adjusted. Cross-examined by Mr JeJllcoe: He was fond of a bargain* but Mr Macdonald’s interest ia * Beautiful Karori ’ was too mtlph intermixed with law and mortgages to induce him to bid against Mr Harris’ offer of £2s, He never purchased anything that was in the bands of the lawyers. Mr Macdonald's Interest had cost nothing * he bad been repaid hii first advance. ' Beautiful Karori,* after being purchased, was mortgaged nearly to its full value. That la to say, the syndicate advanced £6OO, and the property was mortgaged for the balance. It was now all sold. Xu Court, half an hour previously, Mr Macdonald had offered to sell him bis lutcrest la'Beautiful Karori* for £25. If Mr Macdonald could furnish a clear title be would gladly give him £25 for it; he would have given £53 had he been asked, always provided, of course, the title was clear.

Cross-examined by Mr Hutohiaon, ths witness said there was no Uie in pleasing the question of the value he bed pat upon Mr Macdonald's interest la Karori, »it would probably pen oat more then ha suggested. Mr Macdonald had bought some o{ the best aeotious the syndloate bed (or sale, and as aome of the people to whom be had leased had since forfeited, he had gained by the improvements they made. Alfred Barry Wilson, olerk in Ur Dntbie's employment, said that off and on (or about four years past he had bad charge of the aooount relating to the ‘ Beautiful Karori * property. He produced a balance-sheet, statement of accounts and an account against Mr Macdonald, Tbs balance ebeet showed a profit in round numbers of £I6OO on the speculation. , There were (oar original ■hares. Mr Macdonald was shown to be Indebted to tho syndloate ££32 in respect of lands purchased (£420), and moneys received by him from purchasers and not paid by him (£2l2'. Against this there was hie fourth ehare of the profits (£400). When Mr Macdonald’s interest was advertised for sale by Mr Sldev, he called upon Mr Sidey (instructed by the other members of the syndloate) for particnlars. Mr Sidey said be ouuld give none, and referred him to Messrs Travers and Wilford,

Stephen Lancaster, farmer, of Karori, said be was. one of the syndicate wbiob purchased * Beautiful Karori.’ He wae present at Mr Sidey’s auction room in June last when Ur Maodonaid’s interests in this and other properties were pat np for sale Messrs Dutbie, Wallace and Macdonald (the other members of the syndicate) were also there. Conditions of asle were read out at the sals, and it was announced that there was a first charge against the property, but no particulars were given, and nothing was ■aid wbiob would afford intondiog purchasers an; information.

D. G. A. Cooper, .Registrar of the Court, produced the reoorde of the action brought by the Colonial Bank agaioat Mrs Frances Bossiter Macdonald, wbiob were then pnt in as evidence of the pendency of the action. Application for sale of Mrs Miodonald’a property nuder tbs mortgages to the Colonial Bank was received by him on the Slat December last. He appointed Messrs J. H. Bethuns and Co. the auctioneers for the sale, and approved the advertisements. The sale took place on the 20th January, the property being offered in two lots, both of which were bought In by Mr Cbspmsn for the mortgagee (the Colonial Bank). One lot, comprising Inverlooby House, was knocked down at £3200, and the leasehold property, with six houses, at £4OO. John H. Betbnne, auctioneer, Wellington, said he wai in the- habit of valuing for various institutions. He was employed in the sale of Inverioohy House ; the sale was advertised IB timet in each Wellington paper. There were some bidders for the properly ; Ur Uaoartby and Mr Macdonald both bid, the latter’s last bid being £3IOO. It was knocked down at £3200 to Mr Martin Chapman. The reserve placed upon it wae £1250. The Churob street property was knocked down to the,bank for £4OO. There wae no reserve upon that. Witness had been consulted as to the reserve pnt upon Inverioohy House, and suggested the reserve should be £3OOO.

By Mr Jelliooe: Instruction* as to reserve wees obtsined from Mr Reid and Mr Martin Chapman. Ha would not be surprised at bearing the home was ineored for £4500 at the time the reserve was fixed. Thera was no competition for a boms of that description in Wellington. He had fonad a tenant for the house at £l5O « year, but for tome reason there was a delay in the signing of the lease. In regard to the Church street property bo was instructed that there were six,' and not seven, houses upon it. He was surprised to beer there were seven bouees.

By Mr Hutchison: Mr Msrtin Chspman started the bidding on both lota, and ‘ went one better ’on each lot' promptly.’ Jss. Harlsnd, assistant accountant to the A.M.P. Society, produced a policy of insurance for £IOOO on tbs life of Thomas Kennedy Mtcdonsld. He also prodnoed-a mortgage on the policy on account of an advance of £390 to Mrs Macdonald, dated 30tb July, 1892. By Mr Jelllcoe; iff Macdonald bad signed the receipt for the cheque on bshalf of his wife.

Edward J. Bold, manager of the Colonial Bank, Wellington, stated that he had made an advanoo to Mrs Macdonald, which waa secured by mortgage. Witness wag then away for about 10 months, and on returning found that no interest had been paid. Subsequently Mrs Maodtaild told bim As odoM pay seltbei

interest nor principal, and that she bad been unable to sell tho property which formed the security for the loan. Witness told .her .they would pot press , for the principal if she wodldpay the ihtdresf'. .At a further interview she said she r/otild bow have to look after herself, or she would have nothing left, or words to that effect. Wit* boss then asked her about her furniture, wblob be knew she was going to sell, and she told him she could not afford to live at Inverloohy House, and th-vt she proposed to leave it, and had taken a bouse on the Terrace, wbioh witness understood she meant to purchase. She also said she was going to pay for It out of the proceeds of her furniture. At one of the interviews with Mrs Macdonald be beard for the first time tha'. the right of way and tennis court were not a poitioa of the freehold. Mr Macdonald had not indicated that fact to him when going over the property. The bank had no control over the leasehold. The olty rates on Inverloohy House were in arrear for more than half a year when Mr and Mrs Maodonald left it. A portion of tho ground rent of the Church street property was in arrdar.

The r Cdart then adjotiraed Until 10 o’clock this morning.