"TRUST ABUSED"

Evening Post, Volume CXI, Issue 92, 20 April 1931, Page 9

"TRUST ABUSED"

THEFT OF MONE\

ACCOUNTANT SENTENCED

I The statement, that the prisoner had {committed theft becnusc he had been relentlessly pressed by a moneylender, was made by Mr. W. Perry, when, pleading in, the Supremo Court to-day for j Albert Kcllaway, 3? years of age, an accountant, who appeared before his Honour Mr. Justice MacGregor, for sentence for theft as a servant of tho A.M.P. Society. Evidence of the prisoner's previous i good character was given by Alexander Martin. Mr. Perry said that Kellaway, who was a. married man with one child, had pleaded guilty to theft as a servant of £1120, the theft having extended over | a period of three years, 1927-30. POSITION TO MAINTAIN. When a'man whose character and reputation which had hitherto been unblemished fell in the way the prisoner had, counsel submitted that it was appropriate to endeavour to ascertain the j reason for that downfall. Often enough it was found that a man fell on account of riotous living, extravagance, or domestic unhappiness, but none of'those factors was present, in the prisoner's case. Kellaway joined tha staff of the A.M.P. in 1910, when he .was 16 years of age. In 1915 he was appointed to the important position of chief clerk, and afterwards to accountant of the industrial branch of the society, and he acted as branch 'manager during the manager's temporary absence. His salary was formerly £110 per annum, and after deductions for pension, etc., his net salary was £2 Is 3d per week.- By 1917, his gross salary was sSI-10 per annum, his net salary per week being £2 10s. He had his position to keep up as chief clerk and accountant of the particular department, and in that position he came into contact with various officers of the society when they were passing through Wellington. He helped to some extent, entertain these people, and little by little he began to live beyond his means. He attempted to enlist in 1914, but permission was not i granted on account of tho important position, he occupied, In 1917, cireum-j stances arose which' compelled him to bring his mother, who was living m Australia, to Wellington, and that involved him in ■ a considerable amount of expense. He obtained permission to- go into camp, ami was away from 1917-19. 1' GRIP OF MONEYLENDER." He instructed, his mother to pay certain moneys, if she could, into a certain account, because in. 1915 he got into the grip of a moneylender, and he owed considerable sums of money when he left to go to the war. His .mother did not know the circumstances, and was unablo to use tho moneys to mako repayments. She became ill, and on his return he found that little had been paid into'the account, and he owed, with the accumulation of interest, more than he had owed when he went away. He continued with the society, and all the time the interest accumulated' on th'o moneys, bo that in time, in 1927, ho owed £1500. In 1924, notwithstanding that fact, he married, but there were no defalcations at that time. In September, 1927, his child was. born, and at that time ho was being pressed relentlessly and threatened with bankruptcy unless he found a substantial sum Ho gave certain promissory notes., and under that pressure he began to take moneys. . _ ■ BOOKS "MANIPULATED." ' From 1915, to 1927, twelve years, while he was in a .position pf trust, ho kept his trust inviolate, but owing to relentless pressure he was tempted, and began to take money. In doing so he "manipulated" tho books of which he had charge. It had been suggested that he did so with the deliberate intention of carrying on tho defalcations indefinitely, but, said counsil, his instructions were to the contrary. He did "manipulate" the books, but in such a manner as would enable him to mako inpayments in instalments. In ? support of that statement, counsel said that he would say that when the thefts' were discovered tho prisoner was able- to show, in one hour, the exact amount taken and when it was taken. In 1929, Kellaway purchased a house, but the moneys he had taken had not gone into tho property. .Ho borrowed £2000 on first mortgage from the society, and sufficient money from his father to enable him to pay the whole of the purchase price. There -could not bo any suggestion that he now had any of the moneys taken, or tho control ot them. All the moneys had gone, and he had not ono penny or any pthor money at the present time. He had fallen from his high position, and. had incurred very substantial pecuniary loss by reason of the forfeiture of moneys previously due to him. "It seems that this is tho case of a man who is not likely to offend again, said Mr.- Perry. "The .circumstances are such,' and the reason for his fall j are such, that your Honour will, in doing your duty, endeavour to temper justice, with mercy." POLICE* INQUIRIES. ' Mr. P. S. K. Macassey (Crown Prosecutor) said that the prisoner's explanation was that he borrowed £350 from a moneylender named -Hanlcy. Iho police had made all inquiries, but could not find any such man. ' ••'. His Honour remarked that-it was a very sad case. The prisoner had occupied' a position, and had had very good prospects.. He abused that trust.. It was his plain duty to pass a.substantial sentence, though he took into consideration what Mr. Pcrryhad said. He imposed a sentence of two yoars,. reformative detention. .