“MECCA" OIL DEALS.

Timaru Herald, Volume CXXV, Issue 18622, 18 July 1930, Page 8

“MECCA" OIL DEALS.

CLAIMS AGAINST PRINCIPAL. HEARING FURTHER ADJOURNED. By Telegraph—Press Association WELLINGTON. July 17. The operations of the “Mecca Oil Company” were the subject of further investigations in the Magistrate s Court, when the hearing of a civil action in which allegations of dishonesty were made against M. P. Pimentel. was continued. The case for plaintiffs was concluded, and after hearing several witnesses for the defence, the Court adjourned until tomorrow morning. Nancy Wardrop, stenographer, said that during the five weeks she was employed by Pimentel, there had been no communications about oil coming direct from America, or going out of New Zealand. Arthur Bynaters. storeman for Adams and Blyth. said that oil for the Mecca Company would come in one day and go out the next. Sometimes it came in and went out on the same day. Eric Manning, a grocer’s boy. said he had been employed by Pimentel. It was part of his job to mix oil that had been returned by some of the district agents who were “pulling out of the thing.” The oil was put into drums bearing the Standard and Texas Companies’ markings. Under instructions from Pimentel, he removed the marks on the drums and substituted the words “Mecca Oil Company.” Isaac Joseph Bason, bricklayer, said Pimentel offered him Auckland as his district. He paid a deposit of £25. and a balance of £450 on the understanding that all money invested in the venture would be secured by the equivalent value in oil. When witness received his first consignment of oil it was marked Secony and Standard. He then resigned. He was given a post-dated cheque for £475 on July 10. This cheque was dishonoured. It represented his life savings. The oil was valued at £123.

Leonard James Paterson, of Aucksaid that he answered the newspaper advertisement. Pimentel wired him saying that if he had deposited £IOO on a £IOOO purchase of his stock, he would transfer the Auckland agency to him. Witness was unable to find the money. Pimentel then suggested that he should find £l5O and go into partnership with Bason. On Bason resigning, witness telephoned Pimentel offering him £SOO for the Auckland agency. The offer was accepted, and he borrowed some money in order to pay the £SOO. Philip Percy Wimsett said Pimentel told him that he was the representative of an old-established American company. and that he intended to establish the business right throughout the Southern Hemisphere. Pimentel said: "Seeing you are not a bad chap, we will let you have the agency for £100.” Witness agreed to invest £IOO in the business on the assurance that he would not stand to lose anything. He entered into an agreement whereby he was to receive a salary of £4, and commission on sales. Another, agreement was drawn up later, under which he was appointed district manager for ■Wellington. On June 28 he asked Pimentel for commission on sales he had made. Pimentel gave him a cheque for £6/13/5. Witness asked for a statement. Witness challenged its correctness, and Pimentel, he alleged, hit him on the mouth. “He thought he was going to knock me out. but he missed. I hit him back and he called for help,” added witness. Mr Treadwell: “You appear to be the only one of his customers who got any satisfaction out of him.” Alfred Dudley Smith said he was the successful applicant for the position of secretary to the Mecca Oil Company. A condition of his engagement was that he was required to invest £2OO in the business. This sum he borrowed and paid in. His salary was fixed at £7 a week, but it was later reduced to £5 on the ground that extra assistance was required. While he was in the office witness saw invoices of the receipt, of oil from the Atlantic Union, Standard and Texas Oil Companies. Outlining the defence, Mr Harding said he would endeavour to show that the statements alleged to have been made to agents who had given evidence for the plaintiffs were not made at all. and that his client had never held himself out as the accredited agent or representative of the Mecca Oil Company. The Magistrate: “Is there such a Company?” “There is not,” replied Mr Harding, who added that it had been in the mind of the defendant to form a company of that name. Oil had been bought locally from the companies mentioned. Further oil had been purchased direct from the Standard OU Company in America. "We submit.” said Mr Harding, “that these actions have been brought mainly at the instigation of Wimsett, who, I think, it must be seen, had a difference of opinion with defendant, and wished to seek revenge. It was regrettable that a cheque for £475 had been dishonoured. but that was probably due to the fact that Pimentel had been' arrested on Tuesday night.” Evidence was given by Douglas Pemberton, Timaru, agent for Mecca Oil, and his partner. Reginald Robert Taylor; Leslie Simpson Adam, Dunedin; and George Hupton. of Nelson. These said they had no definite complaints, but would not have entered a contract if they had known Pimentel was buying New Zealand oil. Samuel Carter, Taranaki, also gave evidence. All these had invested varying sums from £7O to £2OO in the business. D. S. McCaul, P. F. Phillips, and Pike, New Zealand representatives of Standard Oil, said the oil for Pimentel had already arrived. Another shipment of about 8000 gallons was on the water in three ships. It had never been suggested that proprietary brands of oil sold under trade names deceived the public. The case was adjourned till tomorrow.