PARTY LEADERS SUED

Southland Times, Issue 22998, 18 September 1936, Page 8

PARTY LEADERS SUED

Democrat Political Federation

ORGANIZER CLAIMS SALARY SOURCE OF FUNDS DISCUSSED (United Press Association.) Auckland, September 17. The hearing of the claim of Henry Charles Baulf, a political organizer, against several former Democrat Party leaders was resumed in the Magistrate’s Court before Mr Wyvern Wilson, S.M. Baulf claims to recover from them the balance of salary and expenses allegedly owing for work as Auckland organizer for the party. Mr J. F. W. Dickson is appearing for the plaintiff, Mr A. K. North for William Goodfellow, Mr H. J. Butler for A E. Davy, Mr A. St. Clair Brown for J. B. Donald, and Mr B. Elliot for T. C. A. Hislop, the leader of the party.

Plaintiff was examined by Mr Butler. Baulf said that he was engaged by the United Party in 1928 and had not been fully paid. This was the first time witness had made a claim against Davy personally. When he was engaged in October there was no Democrat Party. He regarded Davy and Goodfellow as partners in the movement. He knew Davy was also paid by Goodfellow. He denied that the original agreement with Goodfellow was for him to be paid £4 a week. Relations were then becoming strained between Goodfellow and Davy. He received £4 a week from Goodfellow and £2 from the organization. In June he was given an assurance of payment.

Cross-examined by Mr Elliot, Baulf Said that he looked to the Dominion executive for payment. He considered Hislop a member of the Dominion executive, as the prospective leader. Hislop first came into the picture in July. He had joined Hislop as a defendant on legal advice. He understood that some of the debts had been paid by Hislop. Hislop’s Reply.

Mr Dickson: You rang Hislop on the telephone once? Baulf: Yes. I asked him for an advance, as I knew he had £lOOO of the party funds. He was very rude to me and said that “he would see me in hell” before he would give me a cent. Mr Elliot objected to further questioning on this line on the ground that Hislop did not have a chance of being cross-examined on the point. Mr Dickson mentioned that Hislop at present was arranging to put his financial commitments with the Democrat Party to arbitration. Robert Alexander Denny, an insurance inspector, v.ho was the next witness, said that Davy had approached him to tell him he was forming a new party. “He asked me if I would be in,” said witness. “I said yes, provided the finances were all right.”

At a subsequent meeting the organization known as the Democrat Party was formed, witnes said, and in April or June 1935, witness became treasurer and a member of the Auckland committee. He acted in an honorary capacity. Baulf was supposed to put in statements of his accounts fortnightly. Those statements were put before the committee, of which Donald was chairman. Baulf had raised the question of the money owing to him before Donald, and Donald had said that it would be paid, but that Baulf would have to wait. It was generally understood that the money would come from Wellington. Baulf had asked at various times about the money and had always been told that it would be paid. The accuracy of the figures had not, to witness’s knowledge, ever been challenged.

Whereabouts of Books.

“Where are the books now?" asked Mi- Dickson, referring to the question of accounts. “Oh! I don’t know. I last saw them in a drawer in a desk in the office,” said witness. Where did yoa receive the money from to run this organization?—Except for the last cheque for £3OO, and it was received direct from Wellington, it was banked by Donald. Presumably it came from Wellington. Under cross-examination by MiNorth, witness said that Goodfellow’s early advances to cover salaries were in the nature of advances to the organization to put it on its feet. Witness said that he knew nothing of any refunds to Goodfellow of the money he had advanced. Donald had paid into the Auckland Trust Account at the bank approximately £5O in June, £75 in July and £125 in August. Witness was not aware where the money was coming from. They were to have received £lOO a month from Wellington. Replying to Mr North, witness said that Baulf put in a list of his expenses each month. He was paid irregularly. Denny was questioned by counsel concerning the -books of the organization. They had been kept, he said, by Miss Foster. He had asked about the books following the election and had been told that she did not know where they were.

The Dominion Secretary. Spencer Bruce Clark, a public accountant of Wellington, said that he had become interested in the party some months after its inception. He was appointed Dominion secretary on March 26, 1935. When further questions had been put about the finances of the party, the Magistrate remarked: “It doesn’t look as though they had unearthed anyone to be Minister of Finance.” Mr Dickson: In the Shadow Cabinet Mr Donald was to be Minister of Finance.

Witness said that £lOO a month was to have been paid to Auckland, but it was not always paid regularly, and, to his knowledge, the Dominion Executive had never objected to Baulf’s claim. If Hislop had handed over the balance of the £3200, what would have happened to these accounts?—These accounts would have been paid.

Under questioning by Mr North concerning the evidence of Hislop heard in Wellington, witness said that it was definitely organization money. “I have no doubt of it,” he said. Mr North: Did you object to £lOOO going to him? At this stage Mr Elliot objected on the ground of irrelevancy. Mr North was allowed to continue. Witness, answering, said'that he did not approve. The hearing was adjourned till Tuesday week.