Evidence On Operation Of Stamp Investment Scheme

Press, Volume XCIX, Issue 29250, 7 July 1960, Page 9

Evidence On Operation Of Stamp Investment Scheme

(New Zoatana Press Association)

AUCKLAND, July 6. Further evidence on the working of an investment scheme operated by an Auckland company, Stamp Investments (N.Z.), Ltd., was given in the Auckland Magistrate’s Court today. The preliminary hearing of 28 charges against the company and three of Its directors has. now lasted three days, and will be continued tomorrow.

The accused are Cyril Ernie Richard Webber, aged 43, a company director, James Phelps Williamson, aged SO, a land agent, Ronal Lachlan Stewart, aged 51, a clerk, and Stamp Investments (N.Z.), Ltd. Each has elected trial by a jury. They face 14 charges of false pretences—which allege that the accused obtained £7890 16e—and 14 charges of theft by misappropriation, involving -£1375 19s lid. The men also face a joint charge of conspiracy to defraud the public. The hearing is before Mr H. Jenner Wily, S.M. Mr G. D. Speight, with him Mr D. S. Morris, appears - for the Crown. Mr R. A. Adams-Smith is appearing for Williamson and Stewart, and Mr D. F. Dugdale for Webber and the company. Transactions Described Garland Clifford Henry St. Paul, an accountant, in evidence, described some of the internal transactions of Stamp Investments .and associated companies. He was employed for a time by Industrial Management, Ltd., one of the companies. The activities of Stamp Investments tapered off about 1953, he said. Each company had its own bank account at first, but later all went in to one pool - account Trust accounts for individual companies still continued separate. After jnoney had -gone into the general account or later the pool account it was used for disbursements by any company within the group. Stewart, Williamson and Webber, who acted as directors of companies within the group, had a joint account in their name, said the witness. He was certain that payments were being made into account from the Stamp

Investments account for the purchase of stamps—which were paid for by the SteWart-William-son-Webber account at lower ■prices.

A part of the booklet “Salesman’s Guide,’’ the witness continued, said stamps were bought by investors from the company at eost to it. He questioned Webber about this, in view of the fact that stamps were being passed on to Investors at what he regarded as more than cost. Webber replied that the term "cost” included expenses of management, said the witness. “Flew into Temper” A former employee of Stamp Investment, George Scott Russell, a law clerk, said that, as he was unhappy about certain of the Ann’s transactions, he questioned Webber, who flew into a temper and told him that if he was not satisfied he could go. The witness said he left He said he had done stamp valuation work in the past. He had known Williamson for many years and obtained stamp stocks for him. Early in 1950, Williamson offered him a post with the firm and he joined it He helped with stocks, and did typing and general office work. He could not recall handling any correspondence with overseas stamp people. He said at times he had learned of the price at which stamps were being allocated to clients as against their purchase price. The former was much higher.