No challenge was made to the findings of fact made by the special magistrate. Between the dates mentioned in the charge, the respondent managed a business known as Deborah's Escort Agency which carried on at a rented house at 131 Barton Terrace, North Adelaide. Girls (called "escorts") engaged by the respondent came to and waited at the house so that they might be chosen by men who went to the house to find a partner for the evening. Each man was charged $12 by the respondent as an "escort fee", i.e. as the price of meeting the girl. The pair, having met, left the house and went elsewhere. In some cases the man might have wanted no more than a companion, and if in fact he did not have sexual intercourse with the girl during the course of the evening - if, as it was called, it was "a straight escort" - the girl would be paid by the respondent half the escort fee, i.e. $6. In other cases, however, the man went to the house with a view to getting a girl with whom he could have sexual intercourse, and the girls were prepared to have sexual intercourse with customers who wanted it, on payment of a sum of money. It is admitted that the girls, or some of them, were prostitutes. If sexual intercourse occurred, the girl would be paid a sum of money arranged between herself and the man, and the respondent would receive none of that money. In such a case, however, the girl would not be paid by the respondent any part of the escort fee. Sometimes an arrangement to have sexual intercourse and as to the amount to be paid would be made between the girl and the man in the kitchen of the house at Barton Terrace. The respondent, although fully aware of what was going on, took no part in such discussions; the girls were allowed to charge and keep whatever they liked, although the respondent advised them not to charge less than $20. In no case did sexual intercourse or any other sexual activity take place at the house at Barton Terrace.