QUESTION OF GOODWILL

Otago Daily Times, Issue 26114, 29 March 1946, Page 9

QUESTION OF GOODWILL

SERVICE STATION PROPERTY CASE BEFORE COMMITTEE Thb Otago Land Sales Committee — Messrs W. M. Taylor tdeputy chairman), D. J. Ross, and E. Sincock —at its sitting yesterday heard the application of Arthur James Rice for approval of the sale of his service station at the corner of Duke and King streets, described as part section 28, block 34, town of Dunedin, to Peter McSkimming Boyd and Edward James Garden Boyd, at a consideration of £3OOO (land £9OO, goodwill £1650, chattels £450). The application was opposed by the Crown, which raised the question of goodwill. Mr W. Lang represented the vendor and Mr J. R. Hampton appeared for the Crown. Mr. Lang said that the vendor had been a “ sleeping ” partner in the business from 1929 to 1931, and after the partnership was dissolved he employed labour until 1936 while he himself directed the business only. Between 1936 and 1946 the station had been occupied by tenants. Evidence was given by the vendor that he had been running the station himself durng the past two months. The amount of petrol he had put through in February was over 1000 gallons. Mr Ross: How did you arrive at the actual figures for goodwill? The vendor said he supposed he had taken it from the value of other stations in the vicinity. The station had had the turnover, but the position had been affected by the petrol restrictions during the war, and he anticipated an improvement when these were lifted.

Mr Lang pointed out that the fact that the industry was licensed should be taken into consideration in assessing the goodwill. The committee reserved its decision. Application Opposed

The application of Mary Smith for approval of the sale of her property described as part section 13, block 8, Otepopo subdivision, to Alison Ellesmere James, at a consideration of £950 was opposed by Robert Barr, a farmer, of Herbert, who sought to be heard as an interested party. The vendor was represented by Mr G. T. Baylee, and Mr J. R. Hampton appeared for the Crown. Mr R. B. Hamel appeared on behalf of Barr.

Mr Hampton said that the Crown valuation was £943, the property being farm land. The Crown did not oppose the sale as it did not desire to acquire the property for soldier settlement. Mr. Hamel said there was a considerable dispute at the present time between Ban’ and the vendor. Barr considered that he would be considerably prejudiced by the sale and that the matter should be deferred until a certain summons which had been issued by Mr Baylee and was now sub judice had been dealt with by the magistrate.

Mr Baylee contended that if the committee granted the application, the vendor was entitled to go to the magistrate and say not only that he had been able to make a sale but that he had found a proper purchaser who would be prejudiced by the delay. The chairman said that the committee considered Mr Baylee's submissions sound but desired to inquire whether Barr had made any claim as a purchaser. Mr Hamel said that Barr had made no claim as a purchaser nor had he had the opportunity, The chairman said that the committee could not entertain Barr’s objection. and the application was granted. Large Sum Involved There was no objection by the Crown to the sale of a property, sections 12 to 15, block 58, on the corner of Rattray, Tewsley and Willis streets, from Messrs John Mill and Co, Ltd., to Leo Phillips Keating. The purchase price was £12,000.

Sales Approved The following applications relating to property transactions of £IOOO or over were approved:— Bertram Harold Haugh to James Kitchener Millar and Moneleith Joan Millar, allotment 3, township of Abbotsford extension; purchase price, £1425. Harold William Hudson and Gladys McPherson Hudson to Veda Nancy Irving, allotment 3, Anderson’s Bay district; purchase price, £2635. John Henry Victor Fiddes to Albert Ernest Ledingham, allotment 8 and part allotments 7, 17, and 18, township of Forbury; purchase price, £1175. William Burn to Barton Graham, allotments 5 and 6 and part allotment 10, town of Balclutha; purchase price, £I6OO. David Borrie to David Houstpn Borrie and William Donald Borrie, sections 77 and 78 and part sections 56, 57 and 79. block 3, Papakaio subdivision; purchase price, £4OOO or such sum as might be payable by the purchasers under the agreement for sale subject to a condition .that any increased price under the agreement did not exceed £4225.

Mary Bridgman to Wardrop Fibrous Plaster, Ltd., allotments 1,2 and 3, town district; granted at a basic value of £2450.

James Alexander Thomson to John Samuel Thorn, allotments 4 and 5, township of Port Chalmers; purchase price £1250. Estate James Allan Hood to James McKenzie andieWinifred Helen McKenzie. section 41, block XI, town of Dunedin; purchase price, £ISOO (reduced to £1250 by consent). Thomas Arthur Peddie to Michael O’Connell, sections 1 to 4, 9 to 12, block 5, Macraes town; purchase price, £I6OO. Charles Lobban Fraser to William Callahan, sections 4, 5 and 6, and block XI, Tautuku S.D., purchase price, £I2BO (land and buildings, £641 15s, stock £456 ss, chattels £182). Louis Albert Paterson to Robert Allan Hill and Violet Ruby Hill, part lot 5, township of Glencoe; purchase price, £I2OO (reduced to £1165 by consent).

Thomas Edward Kennedy to Alexander Humphrey, allotment 13, township of Forbury; purchase price. £I2OO (reduced to £lOlO by consent). William Scott Mitchell to William Fraser Mitchell and Gordon McDonald Mitchell, part allotment 13, township of Sunnyside; purchase price, £IBOO. William. Charles Shepherd to Norman Bateman, allotment 15, township of Tainui; purchase price, £1425. Wilfred Andrew Stewart Smalll to Clifford Renwick Purvis, allotment 31,

township of Clydehill; purchase price. £IBOO. f John Dow to Clarence Victor Mitchell, sections 8 to 15. block 7, town of Outram; purchase price, £llßs. P. G. Jenkins to T. N. Johnston, part sections 53 and 54, block 37, Dunedin; purchase price, £2115 (reduced to £IBSO by consent), James Morrison Boswell to Cedric Laidlaw allotment 65 and 66. Dunedin; purchase price, £I4OO (reduced to £1325 by consent).