Union Secretary For Trial On Theft Charges

Press, Volume XCVII, Issue 28492, 23 January 1958, Page 6

Union Secretary For Trial On Theft Charges

(N.Z. Press Association —Copyright) AUCKLAND, January 22.

On 53 charges of theft, involving £3145 of union funds, the former secretary of the Auckland General Labourers’ Union, Trevor John Potter, aged 44, was today committed to the Supreme Court for trial. Potter pleaded not guilty.

In a statement, made by Detective A. H. Brannigan in the Auckland Magistrate’s Court today, Potter was alleged to have said that secret funds to provide for illegal payments to strikers were set up by. the Auckland General Labourers’ Union in July, 1955.

“No person- in particular authorised the payment of strike money, or the drawing of this money, but the executive and paid officials were aware of what was going on,” Potter said in the alleged statement.

According to the statement. Potter said the No. 2 Australia and New Zealand Bank account (referred to by the prosecution as set up for the union’s building fund) was established to “create funds for the payment of illegal strike pay and other illegal payments. I had power to expend money on my own initiative for various purposes in connexion therewith and irregular payments. “In a strike, the paid officials generally would decide to pay strikers sums of money to prevent them breaking the ranks. "Records were kept in an expense and record book, which I kept, and on most occasions the names of the persons paid would be entered up. “After the strike, all" records would be destroyed, except my personal expense and record book.” The statement said that the No. 2 bank account became known as the “building fund account” when the union sought new premises. “When the No. 2 account began to operate it was decided to keep about £l5O in cash on the premises for the payment of strike money.” the statement continued. Control of Account “If large sums were required, I would draw a cheque on the No. 2 account. It was left to me to draw strike money when required and no-one questioned me drawing sums of money. “When I did draw cheques, in order that the matter be kept quiet I would put my own name on the cheque butt, or ‘fighting fund’ on the cheque butt, or, just leave it blank—anything other than that it was used as illegal strike pay. “It was my duty to move about the country in connexion with disputes. I drew cheques on the No. 2 account to cover my general expenses. I drew sufficient money from the account that, if required, I could hand out money to strikers should they require it “The only record I had of this —and with the knowledge of the executive—was in my expense and record book. As the result of having such a free hand in the finances, I began to look upon the money as being my personal responsibility.” Potter according to the statement, admitted he had used union funds to pay a previous witness, Stewart, for alterations and additions to his property in Stanmore Bay. He said Stewart paid back £5O. “I put this money into the cash box, kept by me and used for strike pay. I used then the sum of £690 for my own use. I believe that Kay, the organiser, may have known I borrowed this money.” Payments to Wife Potter allegedly admitted making other payments from union funds. He said he repaid some of the money, placing it in the strike fund. Potter also said that he made payments to his wife for typing work she had done for the union over a period of years. “I have been shown the balance of cheques held by the police and the explanation 1 give is that they were drawn for strike pay which had a multitude of uses,” the statement said. "When one. Jack McGinn, who is now dead, and who was-an organiser for our union, was ill for several months, and one R. A. K. Mason, now in China, was ill. money was taken from accounts to build up their Social Security benefit to their normal wages. "Apart from my expense book, I -am not sure whether any record was kept of this, but the:

executive knew. This sum to the two men would have been about £2OO or £3OO. "Cheques were drawn on the signature of the president, Mr Donaldson, Mr Lucich and myself. Some of the cheques would have been cashed by other paid members of the union to make strike payments and tor other relieving purposes," the alleged statement continued.

Strike at Kawergu "Cheque 273, drawn to cash for £l5O allegedly for strike pay, was actually drawn for that purpose. Reference to ’Challenge,’ the union publication, shows-that a strike was expected at Kawerau on February 25, 1955. That day Mr Karaka and I went to Kawerau and the strike was stopped. But on March 21, 1955, after prolonged; negotiations there was a strike at Kawerau and this sum was used in that connexion by way of general propaganda, one telegram to Sir James Fletcher costing more than £2.” The statement recalled that on his return from a visit to Wellington, he was confronted by union officials who said he had been borrowing too much money. “They told me they had checked and they reckoned I owed £750. They demanded my resignation and I eventually resigned. I told them I would pay back the £750. They insisted that I resign or they would resign. I wanted to wait for the auditor’s report. It was their threat of their mass resignation that made me resign. I paid back to the union the sum of £750 two days later. "For the purchase of property at Stanmore Bay", and improvements effected, money from the union was used with the intention of selling at a later convenient date, repaying the money borrowed and with the profits I would have acquired a property to live in at Stanmore Bay as a permanent residence. Kay knew I had borrowed this money to purchase property in February, 1956. Jones knew also about the same time, but I don’t think other executives knew,” the statement concluded. Cheque for Sections Evidence that Potter used a cheque, drawn on the Auckland General Labourers’ Union, to pay a deposit on a section he bought in Stanmore Bay, in 1956, was given by Barbara Annie Elizabeth Ross, a book-keeper. Miss Ross said that she was employed by a firm of solicitors and that in 1956 a client of the firm sold two sections to Potter in Stanmore Bay. She received a deposit of £lll2 for one section, drawn on the Auckland Labourers’ Union and bearing three signatures. “I asked Potter who the signatories were. He said the cheque was in order and was from the Labourers’ Union,” said Miss Ross. A number of other witnesses called said that Potter had paid for goods and services with cheques drawn on the union.