ALLEGED MISREPRESENTATION.

Otago Witness, Issue 3518, 16 August 1921, Page 38

ALLEGED MISREPRESENTATION.

Af c , AUCKLAND, August 11. At the Supreme Court to-day, the third day of the trial, Alfred Oscar (itto, managxng director of the National Co-operative K-ealty Company, was found guilty of obtaining £4OO from James Mackay Linklater by means of false pretences. Tho Grown case was that tile accused misrepresented tno financial position of the company to Linklater, and thereby induced him to take shares in the company. Accused represented that the turnover was £lO 000 tho assets between £3OOO and £5090, 'and the liabilities about £IOO. When Linkiater’s soheutor asited for tho books he was told tnat they were not written up, as the firm being too busy making money, the balance sheet was not made out. The Solicitor advised against investment but Lmklater invested, and was engaged also as a salesman. Shortly afterwards I.ink-lat-er discovered in the office a statement sictied by accused showing that the liabilities were £2186 and the assets £2OO less | Immediately lie joined the office Linkinter was asked for a loan of £2OO on tne ground of financial stringency, and to keep the eompa.nv afloat. In March,' a. distress warrant for £l4l was issued against the company, Link-Inter paying the amount and taking a bill of sale over the company’s furniture. In addition, he advanced £H3 to pay the rent, the typist, and legal expenses. The defence was that accused honestly he’iovi d what he represented. and that the statement in question did not show the assets : only the liabilities. The public accountant evidenced that a comparative statement of affairs for the same period snowed that the company was at that tune in a fairly substantial position, the assets exceeding the liabilities by £5452. leaving out fully paid-up capital to the amount of £5755, which was a liability, but was balanced by goodwill of a simi'ar amount. He admitted it was purely a paper balance sheet, but stated that it was drawn from the company’s bonks. The jury recommended merry on account of the vri-fo and seven children of the accused. Sentence was deferred.