LORD HEWART’S ORDER REVERSED

Wanganui Chronicle, Volume 83, Issue 30, 6 February 1939, Page 9

LORD HEWART’S ORDER REVERSED

ALLEGED SHARES FRAUD FIRM “EVAPORATED” LONDON, Dec. 8. An order of Lord Hevvart, the Lord Chief Justice, that the case of Mr. Otto Ullstrom, a retired shipbroker, who alleged that he had been defrauded of £lO,OOO in share transactions, should be tried by an Official Referee, was reversed by the Court of Appeal. Mr. Ullstrom, who lives at Holden Road, Finchley, N., brought his action against Mr. James Petter, Astor House, Aldwych, Mr. Charles Naar, Mr. C. Owen, Mr. Richmond, A. Williams and Co., and Mr. Alfred Williams, of Bishopsgate, E.C. When the hearing was opened before the Lord Chief Justice on November 23, it was stated that Richmond had disappeared, Williams and Co. and Mr. Williams did not appear, and Owen was serving a sentence of imprisonment. Mr. Ullstrom alleged that Naar, Richmond and Owen had induced him to buy shares in a company called Nash (London), Ltd., which, counsel said, had since “evaporated.” Petter and Naar denied the charges. Mr. A. S. Cornyns Carr, K.C., for Mr. Ullstrom, opening the appeal, said the result of the order made by Lord Hcwart would be to cause an immenue delay. The cause would be heard before a tribunal of a much less public character. There had already been adjournments. case of conspiracy to defraud ought to be tried in Court, air.-, possibly by a jury. Lord Justice MacKinnon: What was the supposed commercial transaction of Nash and Co? Order Reversed Mr. Cornyns Carr: It was a company buying the Nash motor-car. We have never said it was not a genuine business, but was of such a financial structure that the shareholders hue no hope of getting a penny out ol it. Lord Justice Goddard: The Olhci; . Referees sit in public. You see newspaper reports of cases there. Mr. Cornyns Carr: I say this is too important a matter to be sent to a tribunal whose main purpose is not to investigate charges of fraud. For Mr. Petter, Mr. G. O. Slade said he was content to accept Lord Hewart’s order. Mr. D. H. Boggis Rolfe, for Mi. Naar supported the appeal. Giving the judgment of the Court allowing the appeal, Lord Justice MacKinnon said the case was not within the category of those which could be sent to an Official Referee and the order ought not to have been made. The case would be restored to the long non-jury list for trial at the earliest day practicable. Lords Justices Goddard and du Parcq agreed.