He suggested that they work together, and accordingly the Asia Realty took over negotiations on the mission's behalf. "It was finally arranged to sell the Jand for an amount Jeguivalent to $234,905.03, and $70,000 in the form of a cheque issued by the mission to the really company. and endorsed to Mr. Hatherly, was paid as bargain money. 'The balance was to have been paid by the end of April, 1935, a number of payments were, in fact, made, but a balance of $127,000 was' still outstanding. The present sult was filed when the Asia Realty said that they were unable fo pay, as the mission's funds were ted up.
The defence was in the form of a general denial, concluded Mr. Davies, Dut he thought the sole bone of con: tention "was whether or not a contract existed between the two par ties in the present sult.
Giving evidence, Mr. Hatherly said the agreement between himself and Mr. Potter was "a gentleman's agreement" on their Joint account. In the course of the lengthy negotiations, he was introduced to Mr. M. P. Walicer, treasurer of the mission, and finally it was decided that the' land, con sisting of some 84 mow, would be disposed of for Tls. 20,000 commission to be paid by the sion, informing them that Asia Realty" had failed to pay the purchase price and that the mission, as Purchasers, therefore were responsible. If the money were not paid within fifteen days, the land would be sold at the best" possible price. time in order that a high official from the mission's headquarters in New York could come out to China and look into the matter. Mr. Hather-ly later was Introduced to this off dal, and, after walling for some time without "hearing anything. further, placed the matter In the hands of his lawyer.
No Authority Necessary Cross-examined:—He didn't the Asia Realty to show their authority to act on the mission's behalf, as he did not think it necessary. He looked to the Asia Realty for the Payment of the amount due, and, when they failed to do so, looked to the mission to meet its obligation.
Mr. TF. McCrea, secretary-treasurer of the Asia ' Realty Ca., gave evidence that Mr. M. P. Walker was also a director of the company. He was under the impression the whole time that the transaction was one of the usual brokerage deals and that it was on the American Church 'Mission's behalf, The Asia Realty' had received a commission for the sale.
Called by the defence, Mr, Potter' said he was formerly connected with the sales department of the Asia Really Ca, He could not say whether or not the company acted as general agents for the mission in. land transactions, but could recall one instance in' which the mission purchased some four mow of land direct, from the Chinese seller. He frst! drew up a draft of an agreement, for signature by both the plaintiff "and Mr. Walker, but the latter, he later Teamned, refused to sign it, and accordingly drew up a new one, "mission was required to sign. balance, Cross-examined:—He did not know why Mr. Walker refused to sign the first draft agreement. He thought It possible, however, he did not want to sign'it because' it would have made him responsible for an agree: ment which depended. upon. the realty company's ability: to pay a large sum of money within three months. He had never heard of the realty company, or any realty com: pany, selling a piece of its own land to someone and receiving _commission from the, purchaser.
"Not for Health"
Neither Mr: Hatherly not the Asia Realty. Ca. are in the land business for their health, and that is why. there. was provision for the brokerage commission, in. the purchase price," said Mr. C.'S, Franklin, for the defence, in the hearing on Friday Min. Schuhl said he proposed to read from the minutes on of the realty company's directors' meetings, dated February 1i, 1935, Which "there were present Messr F, J, Raven, C. M, Bain, Hsu Sing-loh, French, C. H. Raven, H, Sandor, Sigault, and 34. P. Walker (treasurer of the. American Church Mission), The entry he proposed: to read wa headed "Land Transactions L.: 508" and "ran:—"Buyer, American Church Mission, Seller, A. H. Hather-7 Property.B, C. Lot 124 on Hart] fi Road, aren mow 6.400. Our net profit $2,648.36." The inlautes, ho said, wore signed by all the directors present.
Frequent objections were registered by Mr. Schuhl during the course of Mr. Franklin's examination of Mr. H.
Sandor, general manager of the Asia Realty, who was called as the fist witness for the defence.
Maturing Certificates Mr, Sandor said -that he told Mr.
Hatherly that the funds of the mission wore on deposit with his company in the form of loan certificates, some of which had matured and some of which had not yet matured. This, he said, was the reason why they came to the arrangement that $70,000 would be paid as bargain money, and the rest would be paid within three months.
The land was sold to the mission at the rate of Tis, 20.000 per mow, with an additional Tls. 600 per mow, to be pald by the purchaser, as brokerage to be split between the Asia Realty and. Mr. Hatherly. He gave details of various payments of money up to May 8, 1935, since which date nothing had been paid, Mr. Franklin: Did Mr. Hatherly ever ask you why you did not get the money from the mission?
Mr. Schuhl: T submit that is a lead~ ing question, Witness: T cannot recall if "it. was ever mentioned or not.
Mr, Franklin: If it had been asked, Mr. Sandor, what would your reply have been?
Mr. Schuhl: That's stretching it a bit, isn't Ht?
'Mr. Franklin: I withdraw the question.' T thought I would give Mr. Schuhl a little exercise (laughter).
Cross-examined by Mr. Schuhl, Mr, Sandor said there was no question as to who was the actual buyer and the actual seller of the land ju question.
Mr. M. P. Walker, treasurer of the mission and director of the realty! company, said that he first met Mr. Hatherly in the Asia Realty Ca. when, the witness came to make the first Payment on the land. On. July
Text read from the printed page and cleaned; old type leaves the occasional error.