Sunday, May 12, 2013

Hans Erikson in Sydney - Yacht broker and Sailing Instructor



After his short war service in the Australian Army, Erikson gravitated back to his seafaring roots. From 1944, he was working as a yacht broker in Sydney and one of his deals – involving the yacht “Syren” - ended in litigation.[1] A jury verdict awarded him 250 pounds in the District Court. This, however, was appealed. The reported facts of the case, set out below, illustrate the type of wheeling and dealing Erikson was involved in: probably very much like the wheeling and dealing done by his father that so annoyed him as a youngster in Sweden. Did he ever realise that? Or was he like so many sons the world over: blind to the things he shared with his father? We will never know.

What happened with the sale of the Syren was as follows. Its owner, Mr Peil, engaged Captain Kennedy to sell it for him at a price of £1,200. Erikson found an interested buyer, Mr Sunderland, a wealthy squatter, and took him to Captain Kennedy’s office and Mr Peil’s home. Sunderland agreed to buy the yacht at the listed price. On 2 August 1944, Erikson had a conversation with one of his business partners, Mr Carr. The other partners were Carr’s father and a Mr Parker. Erikson said the yacht had been placed in his hands for sale at £1,200 including his commission. But, in his opinion, it was worth £1,500 or £1,600 and he could sell it within a week at that price. Sensing a profit, Carr said to Erikson: “You get in touch with Mr Peil, and I will buy it, and you find the buyer. We will go 50-50 in the difference between the £1,200 and the sum that we get.” Carr gave Erikson a cheque for £1,200 from his father and Erikson duly gave it to Peil on 3 August 1944. On the same day, Peil gave Erikson a cheque for £150 being his sales commission and a written indemnity against any claim for commission made by Captain Kennedy, the actual broker Peil had engaged. Erikson then went to Sunderland and told him the yacht had been bought but the new owner would consider reselling it at a profit. Sunderland took the Syren out for a sail then agreed to buy it for £1,600. Erikson took a deposit of £25 on the sale. The next day, Carr started to get worried when he couldn’t contact Sunderland. He told Erikson to find back-up buyers just in case Sunderland reneged on the deal. Erikson found another buyer, Mr McGowan, and told him the price was £1,700. He introduced McGowan to Carr. Erikson then left for Tasmania; his purpose is not stated but I suspect he had been engaged to deliver another yacht down there. When he returned, Carr and his father had sold the yacht to McGowan for £1,700 and Sunderland had reappeared wanting to finalise his deal. He was “very annoyed” to hear that the yacht had been sold to someone else but Erikson managed to get him to take back his £25 deposit. Problems then began to develop between Erikson, on the one hand, and Carr and his father, on the other.
Carr alleged against Erikson that, on 3 August, Erikson admitted to him that the yacht had not actually been placed in his hands as broker. Erikson also suggested that Carr give him a letter dated 2 July saying that he had agreed to sell the yacht for £1,700. Erikson would use this letter to induce Sunderland to raise his offer. The letter falsely suggested Carr had been the owner of the yacht for some time. Despite the falsity of the claims, Carr gave Erikson the letter. According to Carr, the profit on the resale was to be distributed £25 each to Carr’s father and Parker and the rest 50-50 to Carr and Erikson. Erikson did not tell Carr about the £150 he was going to get from Peil as commission.
The facts of the case did not paint either Erikson or Carr in a very good light. It seemed obvious they had conspired to profiteer at the expense of Sunderland. However, the Judge told the jury that the Erikson-Sunderland transaction was not the matter before them. All they had to decide was: was Erikson acting for Carr in the sale of the yacht to McGowan? If the answer was yes, then Erikson was entitled to his commission of £250. The jury so decided.
Sadly for Erikson, the appeal court judges didn’t agree. They considered that the first judge had improperly limited the jury to considering the arrangement as one of commission agency when it could also have been a partnership that possibly involved “innocent or fraudulent misrepresentation.” They ordered a new trial and for Erikson to pay the costs of the appeal. The trial costs would be left as a matter for the new trial judge. As a litigation lawyer, my own “between the lines” reading of this case is that the appeal court was not at all impressed by the behaviour and ethics of either Carr or Erikson and effectively made a decision that inconvenienced them both (but especially Erikson): sending them back to trial after openly suggesting fraudulent misrepresentation as an issue and knowing full well that neither party would want the expense and risk of a second trial. It is possible the appeal judges knew of Erikson’s reputation as a smuggler and were not inclined to assist him. Unlike in the veronal debacle, Erikson was wise enough to use lawyers this time, Keith Gunn & Co. Had they known all the facts that came out in the trial, I suspect they would have told their client to forget about suing Carr and be thankful for the £150 commission he got from Peil. Litigation, however, is often driven by pride, conceit and ego, traits well established in Erikson’s character. He does not mention the Syren case, one of his many setbacks, in The Rhythm of the Shoe.
In January 1945, Erikson’s article “On Misery Range” was published in the Sydney Morning Herald demonstrating that he still had aspirations in journalism and writing at that time. But seafaring would continue to be his main source of income. In 1945, he established a very successful yachting school in Sydney. It advertised in the Sydney Morning Herald under the name Practicraft Services Co and touted: Learn to sail a yacht. Practical tuition is available under expert guidance aboard a 30 ft sloop-rigged yacht on beautiful Sydney Harbour. Instruction is individual and the course is specially designed to provide complete tuition for the beginner on a unique ‘sail as you learn’ plan. An advertisement on 16 January 1946 proclaimed that “past pupils have won ocean races.” Erikson was named as “Chief Instructor.” He also offered yacht delivery services (“anywhere to anywhere, skiff to a steamer”) and courses tailored to the fishing industry. The company’s office was initially listed as Suite 11, 8th Floor, 117 Pitt Street. It then moved to Suite 6, 8th Floor, 39-48 Martin Place. In The Rhythm of the Shoe, Erikson wrote: “my early students were nearly all black-marketeers. They had made a lot of money during the war and felt socially incomplete without owning a yacht.”[2] He brokered many of their sales and purchases. The success of the business led Erikson to take on a partner to handle the bookings and financial administration side of the business while he was left to concentrate on the sailing. The unnamed partner devised a ‘tax minimisation’ scheme that was arguably ‘tax evasion.’ It would ultimately send Erikson into bankruptcy. In The Rhythm of the Shoe, he tells the story in his usual flippant style:
One day my partner was waiting on the jetty for me when I returned with a party of students. He was not the kind who would ever go out into the sunshine and fresh air except under extreme compulsion so I knew that something serious must have happened … A gentleman from the income tax department had installed himself in our office and was busy examining our books. I did not like the sound of that very much but my partner reassured me that we were much too clever for them and there was nothing he could find that could hurt us. As an added precaution my mate had bought a few receipt books and other papers with him in a bag and thought it would be a good idea if I were to put a rock in with them and drop them over the side when I got back on board. That night we celebrated our anticipated victory over the income tax people.[3]
A prelude to the infamous 1970s “bottom of the harbour” tax evasion schemes exposed in Sydney. In court, the victory quickly turned sour when Erikson crumbled in the witness box. His resulting tax debt forced him into bankruptcy. He worked “out west” as a mechanic until he had enough money to get a boat again. Then he restarted the sailing school business in his wife’s name. Divorce ultimately put an end to it. Erikson had hit upon an extremely popular and lucrative service business that should have set him up for life but his proclivity to mix with dubious characters and take risks meant he had nothing to show for his labours.
Did he learn from his mistakes? It seems not. He turned to the Sydney underworld instead, a story he tells in The Rhythm of the Shoe and one that gave the book its intriguing title. Erikson and two “army mates” set up an illegal baccarat school in Sydney paying protection money to corrupt police. It was very lucrative and only one gambler ever seemed to make money from them. He was a New Zealand musician who paid attention to “the rhythm of the shoe,” a shoe in this context being the wooden box from which the cards were drawn and placed on the table. According to this strange kiwi, a musician could tune into the rhythm of each successive shoe and get a feeling about what was ahead. Much to Erikson’s astonishment, it seemed to work for the man. Overall, however, the business was extremely lucrative and was only abandoned when one of the partners developed a gambling addiction that threatened to expose it. Erikson was now cashed up with a new yacht and a desire to go sailing.
Chapter 14 of The Rhythm of the Shoe is titled “Beachcombing.” As usual, it is without the details of when, where and with whom. It is clear, however, that Erikson sailed up to the Great Barrier Reef and tried solitary life on various tropical isles. It didn’t work for him as his gregarious nature made him yearn for human company. The next chapter is set in Queensland and tells of his prowess as an “occasional lecturer” in seamanship in the Adult Education Department. I never managed to find out where this was: possibly the Wide Bay region where he came ashore to die. In any case, Erikson, with his vast maritime experience and raconteur’s wit and turn of phrase, was a great hit with the students. He ignored the theoretical side of things and launched straight into spellbinding tales of when he and others had gotten into difficulty at sea and how they managed to survive. His skill in this regard may have saved many lives in the changeable waters of eastern Australia where recreational boating was on the rise.
Independent details of Erikson’s life between the war and the publication of his memoirs are scarce. Fortunately, there are some snippets that give us a glimpse of his character and activities. On 13 July 1950, the Geraldton Guardian in Western Australia reported as follows:
A noted Australian yachtsman (Hans Erikson) has won a forecasting contest against the Sydney Weather Bureau. He sent a forecast to the Weather Bureau each morning for ten days and the result was Erikson was correct ten times but the Weather Bureau was wrong twice. Erikson states that his forecasts are made by studying the ever present signs of nature. If seagulls and sharks come into the harbour there will be a blow. Fish accumulating near the shore indicated heavy seas and bad weather, while clouds in a straight line indicate a big change. Erikson who lives on his yacht (Adelante) in Rose Bay claims that natural signs warn (sic) him a week ahead of a cyclone at Coffs Harbor.
At the time of writing in 2012, the Adelante was owned by John Dickins and was up for sale in Southport, Queensland. It was described as 23 feet 6 inches long, made in Hobart in 1939 using huon pine. The designer was Laurent Giles. Dickins had not bought the yacht from Erikson but from an Aboriginal man on the Gold Coast. “Adelante” is a Spanish word meaning “forward, ahead.” Erikson, however, would have noted a Swedish connotation with “adel” meaning “noble” in his native tongue.
On 14 July 1950, the Sydney Morning Herald reported the sad story of 23 year old Jenefer Wornum, a zoology lecturer specialising in herpetology at Sydney University. Her yacht, “Gentleman’s Agreement,” had been wrecked and she was missing. Erikson is referred to as “a friend of Miss Wornum.” He chartered an aeroplane to search for her and found some wreckage six miles south of Wattamolla National Park. It is possible she was a past pupil of Practicraft Services Co. Accompanying Erikson in the plane were Miss Cynthia Sutton of Pacific Highway, Gordon, “a close friend of Miss Wornum” and Mr R. W. Reynolds, manager of the speedway at the Sydney Sports Ground.
The next true milestone in the life of Hans Erikson was the publication of his book, The Rhythm of the Shoe by Jacaranda Press in Brisbane in 1964. Jacaranda actually arranged a joint launching of Erikson’s book with We Are Going by Aboriginal poet, Kath Walker (1920-1993) - later known by her indigenous name, Oodgeroo Noonuccal. There is a charming black-and-white photograph of Erikson and Walker at the launch, smiling and holding copies of each other’s books. At 58 years, his face is weather beaten with a trimmed white beard and receding white hairline. There is a definite air of confidence about him. Did he discuss Aboriginal issues with Kath Walker, an early activist for her people’s rights? Again, we may never know. It is sobering to think that Erikson may well have been voting in Australian elections when Aborigines at the time had either no voting rights or curtailed rights. Only after the 1967 referendum did this appalling situation begin to be rectified and in 1983, all voting law differences between Aborigines and other Australians were fully abandoned.
Two years after the limelight of his book publication, we hear of him living on his boat at Burrum Heads, 300 kilometres north of Brisbane. He is in a feisty mood, fighting against a proposed bitumen road development from Maryborough to Burrum Heads, then a sleepy village of 100 people with no hotel and no streetlights. According to a Sydney Morning Herald article of 22 June 1966, the “6’3” swashbuckling Swede” was the “anti-publicity officer” of Burrum Heads, threatening to tear up bitumen, turn signposts around and put ‘zero’ on the speed limit.
With his saltwater blue eyes, suntan and raconteur’s gift, Erikson was quite a Sydney identity. Since he’s been making those tongue-in-cheek comments about Burrum Heads, he has become a Queensland character too.
The story made it into the Winnipeg Free Press on 6 July 1966 referring to a “retired Swedish mariner called Hans Erikson.” He may have given up his birth name but Erikson never gave up his Swedish identity. Uncle Willy would have been proud: “never forget that you are a Swede and that all around the world that stands for honour and capability, loyalty and manliness.”


[1] Erikson v. Carr (1945) 62 W.N. (N.S.W.) 251
[2] TROTS, p. 99
[3] TROTS, p. 100

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