THE BEARD CASE.

Wanganui Chronicle, Volume LX, Issue 17124, 27 October 1917, Page 3

THE BEARD CASE.

WELLINGTON, October 26. Mr Yon Haast, opening for the Law Society in the application to strike off the rolls W. G. Beard, solicitor, of Masterton, said the case showed that when Beard and Chennels were on the eve of completing their arrangements for acquiring Mangahuia, Kerehoma was advised to make application to be made a European, and thus all the restrictions on the alienation of his land were removed, and although Beard and Chennels know that Kerehoma's lessees, Strang and Hodge, desired a renewal of Mangahuia, Beard and Chennels -purchased from Kerehoma for £48,000, without making any r.^tempt to invite competition or see if a higher price could be obtained in the open market. They received £6000 in cash from the sub-pur-chasers of part of Mangahuia, but persuaded Kerehoma to leave £48,000 (except £968/1/6) on mortgage at 5 per cent., £IC,OOO for five years and the balance fov 20 years, most of the mortgagees being without assets, and although Beard and Chennels themselves were the real purchasers (the transfers being merely volunteers through them), Beard and Chennells did not guarantee payment themselves, or make the whole of the land liable for the whole of the purchase money. Knowing Kerehoma required to raise about £12,000 to discharge his liabilities, they allowed him to submortgage some of the purchasers' mortgages on £8000 for five years at 6 per cent., and they persuaded Kerehoma to allow the mortgages from the purchasers to be so arranged that ,in the case of the following mortgages the amount to be received by the mortgage was substantially higher than the amount of the purchase money for the land, viz.: N. M. Beard, price paid £3736, principal secured £i>£46; G. G. Beard, £6999/£7392; Elizabeth Chennells, £7204/£7609; E. J. Chennells, £7291/£76D9. Mr Yon Haast then dwelt on the fact that when Kerehoma sued Beard and Chennells and it was alleged they, knowing Kerehoma was unfit to manage his own affairs, advised him and procured transfers to members of their families by undue influence, in breach of their duty: th§y settled the action by agreeing to pay £15,000. Beard and Chennells had themselves to become personally liable to a bond for £49,000, and had to agree to pay interest at 6y 2 per cent, instead of 5 per cent., and to make up the interest on the Perry mortgage to 5y 2 per cent., and agree to pay such sums as would reduce the amount of interest on the sub-mortgages from Kerehoma from 6 to 5% per cent. " Mr Yon Haast had not concluded when the Court r033. It is expected that the case will last three days.