ALLEGATIONS OF FRAUD

Otago Daily Times, Issue 22421, 16 November 1934, Page 7

ALLEGATIONS OF FRAUD

TWO MEN CHARGED FURTHER EVIDENCE HEARD (Per United Press Association) Wellington, November is. The case of the Craftsman Manufacturing Company, alleging fraud against Charles Ernest Vickers and Ernest Mabin Gilmour, chiefly concerning ordtis for motor car headlights, was continued in the Supreme Court to-day. William Hugh M’Kinney, chemist, of Auckland, said he met the accused at Wellington. They represented that the Wellington and Timaru wharves were lit by the company’s light, and witness took 200 shares. Later, Gilmour tried to induce him to take 500 more, telling him that all the Hutt railway buses were being fitted with the lights, also some lawn tennis courts. Witness applied for more shares, and, on the understanding that he was made a director of the company, paid 1500 for them. Subsequently he was notified that he had been appointed a director in place of Gilmour, who had resigned. Had there been no promise Of good business he would not have taken the shares,- whether appointed a director or not. William Ernest SteVenS, a retired farmer, of Marton, described the representations made to him by Gilmour and Kelly as the result of which he subscribed for shares. Cross-examined, he said he Was a - ready a shareholder when he saw Gilmour, and the main reason that he took the first lot of shares was that he had the light on his chr, and it was very satisfactory. Another share purchaser, Francis Lionel Marshall, carrier, of Wellington, gave evidence similarly, and admitted that they were very good lights. John Patterson, of Manaia, said he bought 1000 shares in the Craftsman Company, giving a cheque for £IOOO in payment. Before he purchased the slmics two men, named Kelly and M'Kinlev, called and told him they had bought the rights of the Craftsman light for £15,000 and proposed to manufacture. In December, 1030, he signed a cheque for £SOO for the purchase of 500 more shares. Later he paid £175 for more shares, and still later £325 for more shares. Kelly ami M'Khiley said that the extra capital was required for four sites the company had bought in the four chief cities. William Claus Hanson, of Wellington, said he bought 200 shares in the Craftsman Company, having been approached in the matter by a man named Lavin, who had with him some lamp reflectors. Lavin said he would bring his principal, Gilmour, to see witness, and the same night Lavin and Gilmour came bacß in a car. Gilmour did ali the talking, and ho gave a demonstration with the lights on a car. Frederick .Tenness, jeweller, said that Vickers offered to sell him .500 shares and a half share in the royalties for £250, and a diamond ring valued at £SOO. He accepted, but had never reoehed any royalties and the transfer of the shares was never registered in the company’s books. Evidence was given by Lota Coogan, who from June, 1930, to April, 1931, was typist in the Craftsman Company office, where Gilmour was manager. Witness said that Vickers was there practically every day. He was not working for the company, but woj» attending to

his business as an attorney. She did work for Vickers, and Gilmour was agreeable to this but said the company's work was to have preference. Witness went to Australia in April, 1931, and signed an agreement to go with Vickers, Gilmour and Kelly to South Africa, where they were going to form a Company. She was given £l5O to cover expenses, but the trip was cancelled because she understood Gilniour and Vickers had quarrelled in Melbourne. Witness said that at once time Gilmour had mentioned she was not to use the company’s letter paper for Vickers’s work. The hearing was adjourned till tomorrow.