SAID TO GET COMMISSION

Evening Star, Issue 24909, 6 July 1943, Page 2

SAID TO GET COMMISSION

ALLEGATIONS IN HEARING OF THEFT CHARGE SUPPLY ORDERS FROM AIR FORCE That the New Zealand Grinding and Gear Company Ltd. had agreed to pay 20 per cent, commission on all orders received from the Air Force to an Air Force officer named as Squadron-leader J. T.. Brown was alleged in the Magistrate's Court, Christchurch (reports the ' Star-Sun ') when John Lindsay Graham, a soldier, aged 40, a former secretary of the comJiany, pleaded guilty before Mr E. :C. ..evvey, S.M., to the theft of £671 18s 6d; the property of the company, between February 7, 1941, and May 12, 1942. Graham was committed to the Supreme Court for sentence. * , Senior-delectivo H. . Nuttal! prosecuted, and Graham was represented by Mr R. P. Thompson. John Allen Oliver, managing director of the company from its inception until its sale, said, that he stamped and signed the cheques, Which were then signed by Graham. He was aware of an agreement to pay commission to a man named Brown. Mr Nuttall: Was the commission for the Government?

Oliver: I do not know what you would call, it for. 'Was it- for work done, or was it for Government contracts?—We were working for the Government.

In answer to another question, Oliver said that he did not know of any other way in which Graham could have obtained money from the company except by signed cheques.

Joseph Austin Petre, Government audit inspector at Christchurch, said that he had made an investigation of the books of the company from January 1, 1940, to October 31, 1942, Certain Treasury advice notes had been found among the company's documents, and they showed that public moneys had been paid to the company : for work done for the Air Force.

On June 18 Petre said that he was present when Graham was questioned .by. the police concerning the advice notes. Graham had said that certain calculations on the back of the notes were his, also that cheques and a cash book produced had been written by him. ■Graham said that there was an agreement' by which Brown was to receive 20 per cent, on all orders placed with his firm by the Air Force. Graham also admitted drawing cheques for larger amounts than were actually due to Brown in commission and keeping the difference himself. The total amount drawn by cheque' on behalf of Brown was £3,651 3s 6d, continued Petre, and of that amount Brown had been paid £2,979 ss, the balance of £671 18s, 6d being retained by Graham. Graham had not been able to tell Petre the exact amount of his misappropriations from the company, but from the audit £671 was missing. Graham also admitted using fictitious names in . drawing cheques. These matters had transpired as the result of the purchase of all the shares in the company by W. Toomey and his wife and as the result of a newly-formulated policy for the company and the reorganisation of methods of doing business. Such dealings as those described had ceased after the company had been taken over by Toomey, added Petre. ACCUSED'S STATEMENT. Detective N. Thompson said,that in a voluntary statement Graham, when interviewed on June 18, said that about the start of 1940 Squadron-leader J. T. Brown, an engineer officer at a South Island station, had called on him, stating that he wanted 20 per cent, on all orders put forward by him on behalf of the Air force. Graham had told Brown that he would first have to place the matter before Oliver, the managing director, and F. W. Deighton, the auditor. None of them liked the idea, but they assumed that if they did not fall into line they would not get any of the work, continued the statement. All had agreed that 20 per cent, be paid to Brown, arid after Brown had informed of that fact Brown had said that he, would have to be paid in cash. .All the quoting for-the jobs had been done by Angus, a,foreman, and when the quoting was done the'2o per cent, had'been kept in view. .'. i ... From January, 1940, -work-,, had increased and commissions had been paid to Brown, continued the statement. The payments had been paid to Brown on an average of twice weekly. Brown had never given any' portions- of the. money he had received to Graham. " I considered Brown a very hard man, aiid not • willing to give anything away," continued Graham's statement.

Brown had stuck out for the commission, and had said that it was his influence which had resulted in the firm being given work from outside stations.

Graham stated that he had got into difficulties through bettiug, and all the money had gone in that way. If the books showed that Brown had received £3,900 by way of commission Graham could not dispute it.