A NEWSPAPER CASE.

Gisborne Times, Volume XXVII, Issue 2459, 25 March 1909, Page 3

A NEWSPAPER CASE.

EDITOR CLAIMS A PARTNERSHIP.

THE WAIRO.A GUARDIAN

His Honor, Air Justice Edwards, was engaged _at the Supreme Court at Napier on Saturday : ; and Aionday in hearing a civil action James Attridge Connell, of Wellington, v. Edward Arthur Slack, of. Wairoa. In this case the plaintiff claim-; ed £6OO for exclusion from the partnership of the Wairoa Guardian and the sale of the paper without his knowledge. L •' - ~ Air Lusk appeared for the plaintiff and Air Cornford, instructed by- Alessrs de, LautOur, Barker and Stock, of Gisborne, for the defendant. Mr Lusk outlined the ease , for the plaintiff and said the defence was simply that he was only an employee of the defendant and not associated in the partnership. Counsel read correspondence to show that after, the purchase of the Wairoa Guardian had been Completed Air Stock wrote from Gisborne that as the plaintiff had no capital to offer as security it was better, to- allow the raising of the purchase money, that he should not be admitted as a partner-' until he had finished his case with the

Gisborne Times, when lie would be given a half-interest. Air Wade, another partner, had written to the same effect. The paper was to- have been run until after the election in the interests of Nojicense.

James Attridge Connell, journalist, said that in 1907 he was editor of the Gisborne Times, When lie left the Gisborne Times he had a communication •with a Air Wade, who evidently took a deep interest in his work. . Air Wade suggested that another paper should he started in Gisborne with a capital of £4OOO. Witness said that the capital was inadequate and in addition he did not think there was room for another paper in Gisborne. As a result of further conversation witness got an offer for. the sale of the Wairoa Guardian. Saw Air Wade about Rand' (he suggested that witness should see the paper. Went to Wairoa at liis own expense and found that the price of the paper was £ISOO. This offer was reduced to £I4OO, but Air Wade evidently found some difficulty in raising this amount. Ho said he could get some friends Lo supply the money and it was. eventually decided that the paper should be purchased for £I4OO. Air Wade then mentioned Air Stafford and Air Slack. Subsequently had an interview with these three gentlemen and understood that Air Slack was to take an active interest in the business and the other two were to financially assist. The upshot was that he and Air Slack went to Wairoa again with a view to purchasing the paper. Interviewed Air Timperley, the. proprietor of the Guardian, went through the books and decided not to purchase owing to the probability of another paper being started. Air Timperley threatened an action for breach of contract but afterwards come to the conclusion he had no grounds for this. Timperley then asked if any other offer could bo made and subsequently an offer of £IOOO was made. Air Slack said be did not think; he would have any difficulty 5 in finding the whole of the money ir witness would pay interest on the half of it and give security over the plant. Witness said he would not only do that but would give additional security over some shares he had. Air Slack said he would require interest a shade over, the bank rate and eventually it was decided that 6 per cent- would be a fair thing. Air Timperley accepted an offer for the sale, of the paper for £IOOO. It was agreed that witness should draw, a salary of .£4 a week out of tlie business and defendant £3. Witness had formerly been paid £350 a year as editor of the Gisborne Times. Mr Slack remained in Wairoa, opening an account at the bank in the name oAhe firm. On August 4th received a letter from Air Slack and also a typewritten letter from Air Wade. Wrote to . Air Slack protesting. ..against the terms of these letters and giving him clearlv to understand that he was not satisfied with his breach of faith in the matter. Received a reply/ but although not satisfied left the matter in abeyance until Air Slack returned to Wairoa, when he stated that it had been found impossible to raise the money if plaintiff was taken into the partnership without capital. Worked the paper with Mr Slack, who was m charge of the printing, department. The paper had to be registered and this was done in the name of Connell and Slack, and an agreement was entered into with the Press Association on their joint behalf. Also entered into an agreement with Aliss Powdrell for the lease of fresh premises. Went to Wellington in December and on returning to’Wairoa heard rumors that the paper had been sold. Challenged Air Slack ;with it but he denied it. A little later the workmen came to witness and complained that they had not been treated fairly owing* to.the paper, having been sold " without their having been given a chance to obtain other employment. Witness again denied the truth of this, but Mr Slack said in the presence of the!men that ,he had received an offer which lie intended to- consider. Protested against this and took possession of certain books. Locked the office but on going back found that the locks had

been changed and his. keys would not fit them.' Some other people then went into possession of the property. Was more than satisfied with the Wairoa .Guardian as a property and it had a prospective value. Had been put to considerable expense to move his family from Wellington. He had subsequently received a letter from Air Slack dispensing with his services, of-which lie took no notice. Edward Arthur Slack, the defendant, printer, said that in the beginning of July, 1907, he 'was employed at his business of the To Rau Press. The plaintiff came to see him "and said he had inspected the Wairoa Guardian, which iyas under offer for £I4OO. Plaintiff- said lie thought it would be a bargain for £I6OO, and asked witness to take np a half interest. He said he could find the other half. After some consultation witness refused to have anything to do with the matter. Next saw Air Wade, who said Connell had been to Wairoa and ivas satisfied the Guardian was a good; investment. Witness again said he could not see liis way to have anything to do with the matter.' As the result of a further meeting it ivas decided that he (witness) should go to Wairoa alone, to investigate. It was decided that if the paper was bought Air Stafford was to put in £2OO and witness and Wade were to make up the remainder. Connell was to be employed as manager. He said he had money in some southern papers on which he would realise and purchase a share. It was decided that the pa--per should advocate No-license and be independent in regard to politics. Arrived at Wairoa about July 23rd, when Connell also arrived, the paper starting that day that Connell had arrived for tlie purpose of buying the Guardian. Connell said that when he got to Napier from Gisborne he found the boat leaving for Wairoa, and lie thought it was best to come in case lie was wanted. ' When the paper was Connell ..ccygnoA +F* agreement because he had assisted at the purchase. It was neverintended that witness should find the whole of the purchase, money as alleged by Connell. Did not arrange to find "Connell’s half at 6 per cent.. Had rot tho money to do this. Returned to Wairoa about a month after the purchase and had a conversation with Connell about the imprint. Told Connell that the imprint was not as _ agreed upon, and he said it would injure'Lhe prestige of the paper and belittle him in the eyes of the public if'it was altered. Consented to allow the imprint to remain as it was but gave Connell clearly to understand that he would not be a partner until he had bought Wade or Stafford's share. Prior to Connell bringing his wife and family to Wairoa told him that the business might- be sold and he would not be responsible for the expense in connection with this. Evidence for the defence was also given by Francis Stafford and Hamiora Hay (solicitor), and the Court rose at 6.15 p.m. till 10 a.m. on Wednes-day.—-Napier “Telegraph.”

JUDGMENT FOR PLAINTIFF. ASSESSAIENT OF DAAIAGES TO BE - . ARGUED. NAPIER, Alarch 24. The hearing of the action J. A. Connell v. E. A. Slack was resumed at the Supreme Court-this morning before Air. Justice Edwards. At the close of the case His Honor said that lie did not say that defendant and his witnesses were not telling the truth, but lie preferred tlie plaintiff’s story to theirs. He found that Connell and Slack did enter into partnership to purchase the “Wairoa Guardian.” What the effect of that finding would lie was a matter for argument afterwards.' The case was adjourned until to-morrow to admit of legal argument on the questions of assessing damages and taking of partnership accounts.