RATANA'S BANK.

Auckland Star, Volume LVI, Issue 188, 11 August 1925, Page 16

RATANA'S BANK.

ALLEGED FALSE PRETENCES.

COUPONS FOR bEPOSITS.

THE CHARGE DISMISSED.

PURELY A "CIVIL" MATTER

(By Telegraph. —special to " Star.") WANGANUI, Monday, j A large number of Maoris attended Court to-day when Wharekuri Timoti proceeded against H. M. Downs, manager of the Katun a Bank as follows: "That on or about July 10, 1924, H. M. Downs, by false pretences, to wit, a statement thaJ. informant was entitled to receive £80 . from the Ratana Bank in return for an investment of £5. did procure a sum of £5 to be paid find delivered to the said Downs, as representing the said bank." Wharekuri Timoti stated that he put £5 in the Ratana Bank. He received i eighty dockets, which purported to show that they were worth £ each. He paid the money in order to secure a loan of £80. He saw Downs and another two months afterwards, and they informed him that at that particular time he did not have any money in the bank. When he paid the "fiver" in he was told that any time he wanted the money he could come along and see them, when he could get £80. About six months after this he visited the bank again with George McGregor to apply for £80. He saw Downs. The latter informed him that the dockets he held were not worth one pound. He did not receive any money from the bank. He said an entry was made in his bank book of £4 IG/4. Coupons Change Hands. Mr. Treadwell: Where are they (the dockets) ? Witness: McGregor holds some of ' them. I have lost some. | Mr. Treadwell: McGregor holds not more than GO. You also got a receipt for your £4 10/. What you actually paid was £4 16/4, not £o. —No, the actual amount I paid into the bank was £;! odd; 3/8 was perhaps on account of , interest. Witness said he paid the money to ! Downs, as Downs was manager of the bank. j Mr. Treadwell: I suggest that you \ paidMhe money to the secretary. | Witness: Mr. Downs was manager of the bank and all negotiations were done through him. The secretary did not write out the receipt for £4 1(3/4 in my presence. In fact, I never received one. I was not told by anyone that I had paid £4 IG/4 as a deposit on £80 worth of j coupons. I Witness denied he just asked for £100 worth of coupons. The secretary told him that if he paid in his £•» he could draw out £80 and did not tender any other advice. Downs did not say to him "You have not paid for the coupons, you have only paid a deposit." It was untrue tlint Downs accused witness of trying to obtain money by false pretences. It wns also untrue that this was a "try on' , on his part. Farmer Meets Banker. George McGregor, farmer, said he had 50 coupons from the bank from informant in payment for a debt of £00. After witness received them he went to Ratana with informant. He saw Downs and told Downs Miat he had coupons to exchange. He asked if the bank could redeem them. Downs, after seeing a coupon, said "do you demand payment of these coupons?" Witness replied that lie hoped that there would be no need to demand; he just asked for payment. Downs brought along an account book and showed him one side of the ledger in which were the figures £4 It!/. Downs closed the book up and remarked "Don't think that we haven't got enough money in the bank to pay the coupons." Then he showed witness what he said was their balance sheetß. He said: "We have £5400 in this ' safe. ,. Witness said: "Well, why not Hnlpcim them?"' Downs replied: "The paper you hold is worthless paper." Witness said: "Is your bank in the habit of keeping a staff to print, us you say, worthless coupons?" Downs made no answer. Witness added: "We will see i bye and bye whether your bank is allowed to keep on issuing worthless stuff." .Just before witness left Downs said: "Look here, your place is on this side of the counter, helping mc to run the nfl'airs of this bank, instead of being on the other side of the counter, stirring up dirty water. Witness replied that in the best conducted banks there was no dirty water to stir up. Witness had ' accepted the coupons thinking that the bank would redeem them at their face value. Downs said that informant had , .placed £4 10/ in the bank. He (inform- ! ant) knew that he had not deposited £80. Witness could not remember, as suggested by Downs, that informant should pay more for the coupons. No Criminal Case. The Magistrate said he could not see anything to form a criminal case for false pretence. Informant might have something on which to base a civil action if a promise had not been fulfilled. The information would be dismissed. Mr. Treadwell said that in fairness ! to Downs, he would 6tate f,hat a com- : mittee had been formed at Katana for | the purpose of benefiting and encouraging thrift among Maoris, and to get Maoris to save their money the committee had adopted the practice of issuing coupons. Those that were fully paid off carried with them 4A per* cent interest. If allowed to remain in the bank the other of coupon entitled Maoris to make deposits, and when a certain amount had been paid in interest was paid. lii the case before the Court a clerk made b mistake in issuing coupons before the full amount had been paid in. This also had happened in another instance, and had caused trouble. Each coupon reads as follows: "The League for the Welfare of the Maoris ! of Aotea to Waipounamu and Chatham Island, North Island and South Island. An undertaking, confirmed by the League at Ratana pa on the 25/5/23. Received from the sum of to assist the League. This docket is the receipt, to | be retained by the holder, and to be i returned to the money office of the League at such time as the office is able to redeem the amount represented thereon, together with interest. Dated this