Union Secretary Faces 53 Charges Of Theft

Press, Volume XCVII, Issue 28491, 22 January 1958, Page 12

Union Secretary Faces 53 Charges Of Theft

(New Zealand Press Association) AUCKLAND, January 21. Trevor John Potter, aged 44, a storekeeper, and former secretary of the Auckland General Labourers' Union, In the Magistrate’s Court today faced 53 charges of theft from the union. The charges, which alleged theft from the Auckland Ceramic Concrete Builders and General Labourers* and Related Trades Industrial Union of Workers, cover a period from between August, 1954, and January, 1957. Amounts in the charges range from £lO to £250 and » total of £3145 10s is involved. Twenty-four witnesses are being called by the police prosecutor (Mr H. E. Campin). Mr W. R. Teape is appearing for Potter, who has elected* trial by jury. The preliminary hearing today, before Messrs S. T. Carter and D. A. Henderson, J.P.’s, is expected to continue tomorrow. Bruce Arthur Christmas, a public accountant, said that on June 7, last year, his firm was instructed to conduct an investigation into the financial affairs of the union. He received from the union certain books which he produced—cheque books, union minute books, receipt books and banking books. Christmas said he found seven cheque forms in blank bearing only the signatures., of Donaldson and Lucich, union officials. There were disparities between the amounts of some of the cheques and the corresponding cheque butts. He also found cheques authorised for specified amounts had been drawn in excess of these amounts: cheque butts in some instances could not be found and on a number of them no data was shown other than the amount, or the amount and the date. Christmas said he had been unable to find receipts in respect of some of the cheques. Cheques earmarked for specified purposes had in some instances been drawn to “cash.” Blank Cheque Butts Harold Kay, secretary of the union since last year and a member of the union executive since 1956, said that in December, 1956, his attention was drawn to a number of blank cheque butts, but nothing was done at the time. In 1957, the union's finances were fairly low and in March or April a discussion took place between an executive member and himself “I told Potter about the blank cheque butts we had which totalled £750. We wanted to know what they had been drawp

for,” Kay said. “I said some of them had been drawn in favour of someone named Stewart and somepne named Whitehead, and we wanted to know who they were.

“Potter did not say who Stewart or Whitehead were, but after a lot of talk said he had borrowed the £750 and repaid it all except £5O. “I said that was impossible. He could not have done it if he put in all his wages in the period. I asked him to get receipts for repayments. I checked the payin book and no record of money being paid in could be found. “Potter didn’t say much, and Donaldson requested his resignation, and he agreed to resign. He said he would pay back the money owing,” said Kay. Kay said an executive meeting was held at which Potter agreed to make available £750. He was given permission to use the union car so he could arrange to pay the money. Another discussion was held at which it was agreed that £750 would be accepted. Improvement to Cottage Robert Miller Stewart, a storekeeper, of Stanmore Bay, said that towards the end of 1955 Potter arranged with him to add some rooms to his cottage and generally improve it. Potter nnkje progress payments by cheqtjQ? drawn on the A.N.Z. bank, at Newton. Stewart said he received several cheques for values totalling £746*. Frank Haydn Haigh, barrister and solicitor, said that in 1956 he acted for Potter in the purchase of two lots of land at Starupore Bay. In the course of the trains actions, he received from Potter two cheques which he saw were the ones included among the police exhibits. Anthony Lloyd Hopper, a contractor, of Stanmore Bay, gave evidence that about January, 1957, Potter engaged him to level two sections on the Whitehead Estate. Hopper also provided topsoil and base-course metal. The total account was £5B 10s. He was paid by the cheque produced in Court by the police. Billy Sung Chong, a milk bar proprietor, said his wife had sometimes cashed cheques for Potter. He recognised three of the cheques exhibited in Court, as having been cashed by Potter’ Reginald Frederick Roberts, a factory foreman, of Johnston Industries, Ltd., Newmarket, produced a purchase order for Venetian blinds for Potter. He said that when he was helping Potter load the blinds into a car he understood him to say they were to be put up in his bach. Douglas Stewart Young, credit manager of Fletcher * Sales and Services, Ltd., gave evidence that Potter had purchased £132 15s 6d worth of gopds through his firm, paying by cheques. Items bought included Venetian blinds, a formica sink top, towel racks and other fittings. Marko Lucich, a member of the union and a signatory of the union’s cheques, said cheques

never had the body filled in before he signed. Potter or a union organiser used to bring th? books out to him on the job. Robert Marshall Donaldson, president of the union, confirmed the evidence of the previous witness concerning the signing of cheques. On May 15, 1957, he went to the Union Bank and withdrew 10 cheques which had been drawn against the union funds. All except one of these were in Court now, he said. Donaldson said he was present at a discussion with Potter about union funds. Kay accused Potter of misappropriating the funds. Potter said he had borrowed some money, but had paid back all but £5O. Donaldson said he was under the impression that £750 was the extent of Potter’? defalcations. On May 20, Potter presented to witness a declaration in which the union would give him a clearance from any further liability, and asked that this be signed before he handed over the £750. After talking the matter over the executive agreed to accept this condition. At that stage, Donaldson thought balance sheets had been brought down for 1956 and 1955, but he learned later that all that had been presented were statements of accounts.

Sheffield Shield.—Centuries by Jack McLaughlin and Des Bull helped Queensland avoid outright defeat by South Australia in their Sheffield Shield match which ended today. Queensland finished with 420 for five. South Australia won by 241 runs on the first innings.—Brisbane, January 21.