THREE YEARS' GAOL.

Auckland Star, Volume LVI, Issue 282, 28 November 1925, Page 17

THREE YEARS' GAOL.

HARD LABOUR IMPOSED

BANK MANAGER'S FRAUDS

SEXTEXCE OX WILLIAM KERR.

"It U vcrv difficult to find any excuse for your conduct. It is not as though TOl ,'were a young man. "I ou were an experienced and trusted officer of the 1 bank, and yon were ill receipt of what wns a fair salary. You not only misappropriated the bank's funds hut you lived SO much beyond your means that you left unsecured debts amounting to about £1300 among your townsmen 411 through you must have realised that you would he found out and punished. imprisonment is the only thing for your , asc and the term must be a substantial one. The sentence of the court is that you be imprisoned for a term ot three'years and kept to hard labour. AVitii these words, uttered by Mr. Justice Ostler, in the Supreme Court at Xew Plymouth, ringing in his ears, William Kerr, ex-manager of the Lnion Bank of Australia at Stratford, stepped out of the dock to pay the penalty. He

u-as «uilty of falsifying account., for-i-jry'and theft, and he had misappropriated sums totalling £720S 3/0. The Charges. Fifty-nine charges were preferred against Kerr, and to fifty-four of these he pleaded guilty when he appeared for trial on Tuesday. These dealt with Ins defalcations from the bank. The other five charges alleged against him that he had forged, uttered and stolen the proceeds of a cheque given by W. H. Barlow, builder, of Stratford, tho cheque, it was said, having been altered from one of £3 to one of £350, and that, further, he had obtained the sum of £300

from Barlow by false pretences and had stolen that sum. Kerr stood his trial on theso charges, and, in his summing up to the jury, the judge directed them to acquit the accused on the false pretences charge on the grounds that there was no evidence to support the charge. They could, if they accepted the evidence of the Crown witnesses, convict on the others. Tho jury. however. acquitted Kerr on these charges, and convicted him on the charge of false pretences. Surprise at' the verd'et was expressed after the jury had been, discharged, and his Honor remarked that counsel for the defence (Mr. F. C. Spratt) would probably have some application to make upon it before sentence'was passed. "Before saying anything with regard to the sentence. 1 would like to refer to the verdict of the jury on the 58th count, the false pretences charge,"' Mr. Spratt said when Kerr came up for sentence yesterday morning. Counsel submitted" that tlie verdict'of guilty on that count could not be sustained by the evidence. . His Honor: Have I poAA-er to quash a verdict of the jury? Mr, Spratt: I am afraid not, your Honor. His Honor: I do not know of any power. Subject to Avhat Mr. Weston (Crown Prosecutor) may say, I cannot sec any evidence of false pretences. Mr. Spratt proceeded to quote tAVO or three cases bearing on the subject. The Court' of Appeal, he said, could quash the verdict. Judge and Verdict. His Honor: The point is that it will make very little difference in this case. The prisoner has pleaded guilty, to 54 counts. What is the use of putting the country to between £50 and £60 of expense to settle what is an academic point? Mr. Ppratt: Quite so. Your Honor cannot quash the verdict.

His Honor said that he directed the jury not to find the accused guilty of false pretences, but they had found him guilty. He certainly did not feel disposed to putting the country to theexpense of having the case printed to settle what was purely an academic point. Subject to what Mr. Weston might say, he was disposed to go this far, that he would take care that, the prisoner was not sentenced or punished in any way on that verdict.

After -*:• Weston had quoted some authoriti.'■ to assist the court, his Honor said that what he felt about the matter Avas 'this, that if the prisoner was .guilty of anything in the Crown evidence, he was guilty of theft. The jury had negatived that, but he would take.care that the prisoner was not punished on their verdict. If counsel wished to do so and thought it worth Avhile,- he could make application to the Attorney-General to stay the recording of the!judgment.

Mr. ; Spratt: I have made no application, .voiir Honor, and I shall not mature 3 .--.

~s\ Plea for Prisoner. Some of the extraordinary features of case were commented on by Mr. in pleading for the prisoner. It was "extraordinary, he said, that the misappropriations should he for such a sum as £7000, and that when the defalcations Avere discovered, the hank should recover its money from the investments made by the prisoner with the misappropriated funds. Usually, in cases of misappropriation, tho money had been spent in riotous living or the accused had been lured on by moneylenders or bookmakers to steal money to recover himself. Such, men, counsel said, usually received a certain amount of pleasure from tiie use of the money cr some amount of profit, although it was profit that did not appeal to upright men. Kerr had had no re\vard, except the reward that came to Avrongdoers.

Hie prisoner. Mr. Spratt continued, had put the money into a venture that would have recouped to him not only the expenditure he had incurred but would have also returned him a handsome profit. Even under a forced sale the bank had been able to clear the Property for £10.000. The prisoner was guilty of many acts of fraud and forgery, but nobody would believe he had set out to commit so many acts. It "'as hoped that the return 'would be quick. The money was Invented in white Pine timber rights in the South Island, "nd just as the prisoner and his partners in the deal were about to sell, the '.overnment put an embargo on the exportation of white pine. 0„e could appreciate the agony of mind of the Prisoner who had to keep up an appearance of probity and keep on making false entries to cover up his first fault. v

_ Sentence was then passed In- the judge as stated.