FRAUD CHARGES

Timaru Herald, Volume CXXXVIII, Issue 19958, 16 November 1934, Page 6

FRAUD CHARGES

CONTINUATION OF HEARING TWO MEN ACCUSED By Telegrapb—Press Association WELLINGTON, November 15. The case of the Craftsman Manufacturing Company alleging fraud against Charles Ernest Vickers and Ernest Mabin Gilmour, chiefly concerning orders for motor car headlights, was continued at the Supreme Court to-day. William Hugh McKinny, chemist, Auckland, said he met the accused in Wellington. They represented that the Wellington and Timaru wharves were lit by the company's light, and witness took 200 shares. Later Gilmour tried to induce him to take 500 more, telling him that all the Hutt railway ’buses were being fitted with the lights, also some tennis courts. Witness applied for more shares, and on the understanding that he was made a director of the company. He paid £SOO for them. Subsequently he was notified that he had been appointed a director in place of Gilmour, who had resigned. Had there been no promise of good business, he would not have taken the shares, whether appointed a director or not. William Ferndss Stevens, retired farmer, Marton, described the representations made to him by Gilmour and Kelly, as a result of which he subscribed for shares. Cross-examined, he said he was already a shareholder when he saw Gilmour, and the main reason he took the first lot of shares was that he had a light on his car, and it was very satisfactory. Another shares purchaser, Francis Lionel Marshall, carrier, of Wellington, gave evidence similarly, and admitted that they were very good lights. John Patterson, of Manaia, said that he bought 1000 shares in the Craftsman Company, giving a cheque for £IOOO in payment. Before he purchased the shares two men, Kelly and McKinley, called and told him that they had bought the rights of the Craftsman Light for £15,000, and proposed to manufacture. In December, 1930, he signed a cheque for £SOO for the purchase of 500 more shares. Later he paid £175 for more shares, and still later £325 for more shares. Kelly and McKinley said that extra capital was required for four sites the company had bought in the four chief cities. William Claus Hanson, of Wellington, said that he bought 200 shares in the Craftsman Company, having been approached in the matter by a man named Lavin, who had with him some lamp reflectors. Lavin said he would bring his principal, Gilmour, to see witness, and the same night Lavin and Gilmour came back in a car. Gilmour did all the talking, and he gave a demonstration with the lights on a car. Frederick Jenness, jeweller, said that Vickers offered to sell him 500 shares and a half-share in the royalties for £250 and a diamond ring valued at £SOO. He accepted, but had never received any royalties, and the transfer of shares was never registered in the company’s books. Evidence was given by Lota Coogan that from June, 1930, to April, 1931, she was a typist in the Craftsman Company office, where Gilmour was manager. Vickers was there practically every day. He was not working for the company but was attending to his business as an attorney. She did work for Vickers and Gilmour was agreeable to this, but said that the company’s work was to have preference. Witness went to Australia in April, 1931, and signed an. agreement to go with Vickers, Gilmour and Kelly to South Africa, where they were going to form a company. She was given £l5O to cover her expenses, but the trip was cancelled because she understood Gilmour and Vickers had quarrelled in Melbourne. Witness said at one time Gilmour had mentioned that she was not to use the company’s letter paper for Vickers’ work. The hearing was adjourned till tomorrow.