SON PROSECUTES HIS FATHER

Otago Witness, Issue 3522, 13 September 1921, Page 21

SON PROSECUTES HIS FATHER

A PARTNERSHIP DISPUTE. John James was before the City Police Court on Friday morning, Mr J. R. Bartholomew, S.AL, presiding, on a charge that he did in September, 1920, at Dunedin, receive £329 7s 5d on terms requiring him to account for it to John James and Company, and did fraudulently omit to account for the same. - Mr Brasch appeared for complainant and Air Hanlon for accused. Air Brasch, in opening the case mentioned liow keenly his client, who was the son of accused, felt his position. Proceeding, he said that the John James Company, Ltd. had been registered in January, 1920; the subscribers being the accused, the informant (Hector James), arid another son of accused named A. AI. James, in equal shares. Prior to this the accused carried on business as a slater on his own account, the son working for him since boyhood, the terms being that informant was to get one-third interest in the business when ho reached his majority. In the meantime he was paid a salary of 2s 6d tier week. He attained his majority in 1917, and then went to the war. His father was bitterly opposed to his going, and there had been violent quarrels i:i consequence. When the informant returned from the war he expected the arrangement entered into would be carried out, but the father repudiated this arrangement. After considerable negotiations it was decided to form a company, the son to have a one-third interest, but to pay Rathe shares. lie did this by mortgaging them to the father. Informant worked for the company, and was appointed a director, acting as such from thu formation of the company in January until May, 1920. His wages were fix,ed at £5, but he drew only £2, and the remainder was credited to him, so that £63 was owing to him. Informant left his work in May, because he objected to a war pension of £6 10s which be was receiving, being put into the business, as his father thought should be done. So his father dismissed him, though it was questionable whether he could do so. Informant went to New Plymouth, and received no notices of any meetings of the company. He returned to Dunedin in December and asked that the books of tlie company be shown to him. The request was refused, but informant gained access to certain books. In the ledger lie found that no entries had been made since he left Dunedin. The same applied to the minute book. He also saw pay-in slips and a pass book, and noticed that certain sums of money which he know belonged to the company had been paid into his father’s private account. He made repeated appli cation for the books to fee audited atul a balance sheet prepared, but retained the cash book. Having an idea that the fathei was about to leave the dominion, he wrote a formal letter to the shareholders stating that any attempt on the part of John James to leave Dunedin or New Zealand would be blocked and a warrant issued. Later the informant received notice to attend at Hugh Alitchell’s office, when some of the books were produced. In the minute book was an entry dated July 12, 1629, to the effect that his brother had been appointed a director in his place, which entry was not there when informant saw the books in January, 1921. The same applied to an entry authorising the managing director to use any moneys of the company not required to be used for company purposes. V hen informant saw the books at Mitchell s lie noticed debit entries in the cash book in September, these being amounts purporting to be paid to one Shelton, of £423 on September 29, and £468 on September 14. Informant thought it impossible that two amounts could be paid for imports of slates so close together, and drew attention to it. A search revealed the fact that only one voucher cculu be produced, and that one amount had been wrongly debited. On August 26 informant heard that accused was leaving for Australia, and he went to Wellington and got a warrant issued. Accused had, ho believed, sold the whole of the stock of the company for one-third of its value. Counsel concluded by saving that informant believed that "accused had done what he had, not for his own benefit, but so as to prevent informant, from getting the benefits from the company to which he was entitled. He had a strong feeling against informant. Edgar Alfred Bowman, accountant at the National Bank, North Dunedin, gave evidence as to the existence of accounts at tne bank for John James and Co. and John James. H e produced pay-in slips one of which was for £329 11s 6d, signed with the signature of John James, and another for £59, signed “A. James.” To Air ITaulon: Li the first case ihe bodv of the slips was in the handwriting of A. James, and in the second the whole of the writing was that of A. James, so that John James’ handwriting occurred only in the signature in the first instance. Hugli Mitchell gave evidence as to the books being handed to him by the company for inspection. He also gave evidence as to ihe minutes. He thought the young fellow (presumably the son) was absolutely wrong in liis charge. No entries had been made in the cash book since lie received it. That was the one which was taken away by Hector James. There was another one which was written up by Melville James after the first one was taken. John James was debited with the amount of £329 11s 7d. and be had to account for it to the

company. The books showed that £250 was received on December 30 from D. O’Connell. The informant came to his office and saw the books there. Informant pointed out that one book was missing. Next day there was a meeting of shareholders, the minutes of which were written up from notes taken by witness. The books correctly represented what happened at the meeting, except that they did not disclose the language used. He denied that the minutes hacl been “coloured,” and had no feeling against Hector James, for whom ho was sorry. He produced I lie company’s salary books showing that £63 was due to informant for salary. lo Mr Hanlon: The books had been badly kept, and it appeared from them that the two amounts, £329 11s 7d and £50,wero paid into the company, and it was also clear that they ,were debited to John James. The , books also showed that the company was in debt to John James for a greater amount. The two amounts were paid into the account of John James, with the concurrence of Alelville James. Evidence having been given by J. L. James, law clerk, the case was further remanded until Alondav in order that certain papers might fee produced. DISCHARGED WITHOUT A STAIN ON HIS CHARACTER. At the resumed hearing on Monday the S.M. dismissed the case, stating that defendant, John James, had completely vindicated himself, and left the court without a stain on his character.