MIXING CASE.

Otago Witness, Issue 2481, 2 October 1901, Page 23

MIXING CASE.

At the Dunedin S.M. Court on Monday, the following case WJ3 heard: —

John Ewmg v. the a ourteen-miie Beach Gold Dredging Company.— Claim £33 2s lid, for travelling expenses and disbursements, £38 for pipes supplied to the company, and £23 10s for services rendered by plaintiff's manager and workmen. — Mr Sim appeared for the plaintiff, ard Mr Gallaway for the defendant company. — Mr Sun, in opening for the plaintiff, said that plaintiff lived at St. Bathans, aad when the ofneo of the company was removed to Dunedin, of course, he had to come down to the meetings. He was entitled to recover bona fide expenses incuired in the Tseifoimance "of his duty ss a director. Counsel quoted authority to show that directors of a company were entitled to be indemnified pgainst los 3 and expense incurred in carrying out; their duties, and that was all that Mr Ewing claimed. His Worship would have to asceitain what were leasonabie expenses under the circumstances. As chairman of directors, he did a great deal of work for the company. The pipes referred to were obtained from Mr Ewing. At the time they were reqxured it "was exceedingly difficult to get pipes from Dunedin, s.s the foundries were all so busy, and Mr Ewing, who' had a claim at Roxburgh, supplied them as a matter of convenience to the cornppny. In claiming tho amount stated Mr Ewing was not making any profit on the pipes, and, landed in Roxburgh from Dunedin, they would have cost the company about 'is a foot. Counsel did not know why the company disputed the claim, and if they held that Mr Ewing as a director had no light to sell them to the company, at any rate lie was entitled to get his pipes back again. Then as to the third item, Mr E.ving, at the lequest ot the other directors, instructed his men, who were working on his claim at Bald Hiil Flat, to perform the services for which he now sought to recover. It was pn advantage to the company to have experienced men to mark out the water race, and Mr Ewing was entitled to be reimbursed what he paid them. — Evidence was given by David Robertson (manager of the Alexandra Bonanza claim 1 !, -who said that in August, 1900, he acted es manager for the Fotu teen-mile Beach Company. — Crossexamined by Mr Gallaway : Who appointed you manager? — The directors. — Who actually appointed you? Was it Mr Ewing? — I don't remember now. — Had you any inteiview with anybody except Mr Ewing? — Ko. — The negotiations for the supply of the pipes, were they made entirely with Mr Ewing' — Certainly. — Was it you who certified the account for the cartage of the pipes'.' — I suppose I did. I do not remember if I ever saw the account. — Then I suppose you must have measured the pipes? — Yes. — As a matter of fact, were all these pipes used in connection with the company? — .No, they were not. — What became of them?— They are there yet. — How do you explain that the company has not paid for them? — I don't know. — Would you be surprised to know that there are 1400 ft of pipes lying there? — That is nonsense. — Alexander M'Pherson (manager for Mr Ewing) gave evidence that he was m the employ of the company before the last witness, and gave details of his work in connection with marking off the water race. — Thomas Christopher Donnelly (mine manager, Matpkauui) said that he was one of the original directors of the company. The office was fust ol all jii Dunedm. nnd was then shifted to Matakanui, wheie the directors' meetings were held. The directors decided to mark out a water race ard arrange for the supply of electric power. The carrying out of the proposal was left to Mr Ewing, to save expense. — Crocs-examined . Can you remember when Mr Ewing was axitiiOiised to do this? — No. — Can you say at what meeting' — No. — Were you present at all the meetings 9 — Yes. — Was there ever a resolution of the directors on the subject 9 — It was agreed upon. — Do you remember who moved the lesolution''' — It was discussed, and agreed that Mr Ewmg should do the work. — Can you remember if there was a resolution passed that was not put in the minute book' — Theie are any amount of things discussed the secietaiy does not take any notice of. — If there was such a lesolution, was it moved by Mr Ewing? — It may have been — If Mr Ewing moved the lesolution and subsequently signed the minutes, la it not extiaordmary that it is not m the minute book? — jSTo. — David Crawford (secretary to the company) produced the company's minute booi, and in the course of his evidence said that fhcie was no record ot any resolution authoiising Mr Ewmg to do the woik. There was a resolution about the first lot of 18in pipes 112 the books, but the first he heaid of the second lot was when he received a letter from Mr Ewmg m January last about them. — Plaintiff then gave evidence regarding the expenses charged when visiting Dunedm. On one occasion he said that a dispute had aiisen about the appointment of a dredgernaster, who had been put on by the Dunedin directois without consulting the country directors. He asked for a meeting to state his objections to the man, who was regarded as unsuitable. He and Mr Donnelly asked the Punedin dnectors to fin a day, which

was done, but on the eve of the meeting he received a telegram saying that it was postponed. A fortnight passed without another date being fixed, and then he fixed one himself. When he came down to Dunedm he found ore of the directors was absent, and they refused to have a meeting because they had not a majority. He was thus kept waitn.g here six days before a meeting was held. As to the first lot of 18in pipes, he, as chairman of directors, had to see that they were got, and he tried to buy them fiom several others. He sold lSsoft to the company at 3s 6d per foot, and stipulated that they should be passed by an independent man. He had since told pipes of the same quality for cs. They would cost 7s a foot landed in Roxburgh now. As to the 9in pipes now charged for, they were required as p* by-wash. — Cross-examined : He was practically the directorate up to the tirt>e he resigned. Since then there had been practically no directorate. He did not 'clpim to a monopoly of the brains, but he hsd 9 uicr.opoly of the voik. Thsy could not expect peoole connected with 20 or 30 companies to Co the \\olk properly. He considered he made a oroafc concession in selling the company the piprs at all.— Counsel . Will you tell us where \ou got the authority to supply the second lot of pipes? — My authority was that they were wanted.— You did not get any authority fioni the company to do it?— There was no time. The directors never interfered, and did nothing except make calls. They got ured if the meetings lasted more than 15 minutes. — Did you send m any claim for these pipes before you severed your connection with the company ?—? — I mr-dc my claim as soon as I saw fit. — How lo ag were the pipes in use when you sold them to the company 9 — About four or five years. — Mr Sim said that he had no further evidence to cr.ll.— At this stage (4.30 p.m.) the case we a adjourned till Friday.