EMBEZZLEMENT.

Press, Volume LII, Issue 15487, 14 January 1916, Page 2

EMBEZZLEMENT.

EX-COT7XTY CLERK'S LAPSE. COMMITTED FOs SEXTEXCE. At- tie Magistrate's Court yesterday, before Mr T. A. B. Bailey, S.M., George Saycc Hickman, ex-clerk to the Kowai County Council, appeared on four charges of fraudulently converting the Council's moneys to his own use, as follows: On January 20th, 1915, at Balcairn, he did commit theft, in that having received from Frank Herbert Courage, the sum of £142 lis od on terms rfcquiring him to account for the same to the Kowai County Council, .ho did* fraudulently. convert the same to his own use. Similar charges were" brought against him of' receiving sums of £45 7s, £3o 15s Bd, and £23 13s 9d, from Hugh Henry McLean, James Harrison, and Messrs Dixon Bros respectively, and fraudulently converting them to his own use, the alleged defalcations extending from January 20th to May 26tli. Chief-Detective Herbert prosecuted, and Mr F. W. Johnston appeared for accused. Hugh Henry McLean, sheepfarmer, of Ardross, and owner of two properties on which rates were payable, said that in March, 1915, he received » demand for rates amounting to £41 4s 9d. About May 24th. he posted to accused, as clerk to Kowai County Council, an order on Dalgety and Co., Ltd., for £45 7s in payment of sucn rates. Tho order included a 10 per cent, penalty amounting to £4 2s 3d. Ho identified tho order (produced) as the one he had sent. At tho time ho icceivcd no receipt. In consequence of a communication from the Government Audit Inspector, he applied to. accused for a,receipt, and received the document produced in Court. George Alexander McLean, farmer, of Broomfiekls, and chairman of tne Kowai County Council, said that accused had filled the position of clerk, treasurer, and surveyor to the Council for about 19 years, till about November 22nd last. It Avas his duty to collect rates due to the Council, and to credit them to tho Council's account with tho Bank of New South Wales at Anibcrley. It was understood that the moneys had to be paid into tho Bank prior to the monthly Council meeting. On November 18th witness went into tho office at Balcairn to meet tho Government Audit Inspector, Mr- Eames, and not finding him, went home. About 2.30 p.m. on the samo day accused came to witness's liouso and said he wished him to come to Balcairn at once, to tho office. He said it was a question of money, and had a motorcar waiting. Witness went with him; and at Balcairn met a Mr Turnbull and Mr. Ward, a solicitor. Accused was present. Mr TurnbulL said they had conio to arrange wi'ih the Council for moneys that Hickman had been taking from the Council. If they paid back the money tho conditions were that tho Council was not to prosecute, and that Hickman should bo discharged. They would then be responsible lip to the sum of £900. Witness refused to give any undertaking not to prosecute till ho had received legal advice. Accused said ho did not think the shortago was more than £970, hut he wanted ; to see a book' Mr Eames had taken away before being certain. It was arranged they should all meet 'again next day, and in the meantimo witness got possession of the book re-j ferred to. On the next day by appointment ho met accused in Mr Ward's offico with Mr Turnbull and Mr Hale,>a member, of thes Council. Witness gave accused the book to prepare a list of the moneys missing. This was done, and as far as he was abie to mako up a correct statement, ' the j amount came to £950. It was then arranged that accused should complete I the statement next day, and that Mr Halo should be present. On Monday, November 22nd, witness went to Balcairn and met accused. Mr Hale and Mr Eames, and accused produced two bank deposit receipts on the Bank of New South Wales, Ajnberley, totalling £1207 8s Bd, showing that on the 20th of that month lie had banked that sum, which covered all the shortage. To Mr Johnston: Hickman had given very good service to the Board during the nineteen years,he had been employed by them, and he and His family had borne a -good reputation in tho district. Although tho Council could not give any undertaking nob to prosecute, the Council itself did not desire to do so. Thomas Halwell Bruce, accountant at Dalgety arid Co.'s, Cliristchurch, identified McLean's order for £45 7s. Augustus Webber Jiiames, Government Auditor, said on November Ist and 2nd, he audited the accounts of tho Kowai Council up to September 30th last, at Balcairn. Accused was treasurer to the Council. He handed to witness a rough draft of tho balancesheet in pencil (produced). This rough draft showed that of the general rates, for the year ending March 31st, 1915, £458 2s 3d had been received during the half-year ending on that date; also special rates of £31 14s 2d had been received in the same period. These figures agreed with the cash book, and were the last .entries made therein up to the time'witness attended the office. Witness brought the rate book for tho year ending, March 31st 1915, into town with him, as it did not balance by a shilling or two, and he wanted to see where the discrepancies were, and also seeing that over £1100 appeared to be unpaid, he was suspicious that the matter was not all right. Witness wrote to a few ratepayers to the effect that their rates for year ending March 31st appeared still unpaid, and received replies to the effect that the rates had been paid. Witness also wrote to tho chairman to mako an appointment to meet* him, and on Monday, November 22nd, lie went to Bal'cairn,- and accused jnet Mm at the station, and said he had been a feel and used the moneys for his own purpose, but had now entered into cash book all moneys received and not previously accounted for, and on Saturday ho said he had banked the money and had borrowed the money from friends to enable him to do so. Witness went across' to the office and found that sjpee his previous visit, accused had entered in his books additional moneys amounting to £1207 8s Bd, which he admitted had been received by him prior to September 30th, 1915. Witness made out fresh rough draft of balance-sheet, showing moneys as received by accused prior to Septera"oer 30th. The now draft'of the bal-ance-sheet showed that instead of the Council having in hand lis Id, they actually had £1238 19s Bd. The misappropriations, therefore, must have amounted to £1207 8s Bd. To Mr Johnston: The whole of the appropriated moneys had since been made good. Accused 'then guilty to the charge, and was committed to ' the Sunremo Court for sentence. The other charges, which were of a similar nature, were then proceeded with, and accused, pleading gnilty to each, was committed to the Supreme Court for sentence, bail being allowed self in £400, and two sureties of £200 each.