Embezzlement Cases.

Gisborne Times, Volume VI, Issue 211, 12 September 1901, Page 4

Embezzlement Cases.

SUM OF £12,000 INVOLVED.

Great surprise was yesterday (says the Melbourne Age of August 29th) caused in university circles when it became known that an audit of the university accounts had revealed a deficiency of funds amounting to several thousands of pounds. Some days ago the Government auditor, Mr J. Ferguson, commenced the annual audit, to which the accounts of all institutions receiving “ grants in aid ’ are subject. The accountant of the university is Frederick Thos. Jas. Dickson, who has occupied the position for twenty yeavs. For about a fortnight Dickson has been absent from his post through sickness, and it was during this period that the accounts and books were gone through. No advantage was taken of the accountant's absence ; it was simply the " turn ” of the university to have its accounts examined. The discovery which led to the startling revelations of the displacement of such large sums of money, was made on Tuesday last, when several irregularities relating to minor items were noticed, and subsequently scrutiny brought to light defalcations amounting to at least .£7OOO. It is expected that the total amount of money unaccounted for will reach a much larger sum even than this. All the moneys of the university passed through the hands of Dickson as head accountant, and he transacted all business with the Bank of Victoria, where the funds were deposited. Mr Ferguson having learned suflic-ieut to justify him in setting the law in motion, last evening swore an information on two specific charges against Frederick Thomas dames Dickson, that he, between January 1, 1890, and January 81, 1901, did embezzle the sum of £4IBO os 3d, and the sum of £iio Gs Sd, the property of the trustees of the Melbourne University. A warrant for the arrest of Dickson was issued by Mr C. T. Blanket, J.l’., and Detective-Sergeant O'Donnell, with Detective Arthur and Fryer, were detailed to execute it. The officers proceeded to “ Tempe," No. 14, Fitzgibbon street, Parkville, where Dickson resides. He was found sitting in an easy chair in his bedroom, having just arisen, ho remarked, from his bed, to which he had been confined for a fortnight suffering from congested liver. It was his first day up since he was taken ill. He expressed surprise on hearing the charge made against him, but neither acknowledged nor denied it, and beyond saying that he would be able to produce certain documents, was silent regarding the subject. He asked that his state of health should be considered, and that to remove him on such a niglit would be unwise. Detective Sergeant O’Donnell did not consider it necessary to remove his prisoner, and was content to place him under arrest in his own house, leaving a guard of two constables in charge of him. The first intimation received by the university authorities that anything was amiss with the finances was made by the auditor to Mr 11. L. J. Ellery, as honorary treasurer to the University, who was perfectly astounded when informed by Mr Ferguson on Tuesday afternoon of the fact that liis audit had disclosed serious deficiencies in the cash, for which he believed Mr Dickson accountable. The accountant, Mr Ferguson added, hail represented by means of spurious or “ faked ” bank pass books that the finances of the university were from T7OOO to £9OOO better than was actually the case. The detection of seeming irregularities with regard to one or two comparatively small amounts induced Mr Ferguson to make further inquiries at the Bank of Victoria, where, as stated, the moneys of the university were placed. These investigations led to the discovery of what is regarded as conclusive evidence that the defalcations wore enormously larger than at first supposed. The deficiency occasioned by the alleged defalcations will place the university in a very awkward financial position. The university officials are so staggered by the revelation of the audit that they can at present offer no explanation as to how the university can have been systematically robbed of its funds, as it appears to have been, for a period of 10 years, without the fact being brought to light ; but members of the council feel that the Government can hardly reasonably be looked to for help in the matter. The general public, too, will bo interested to know how it was that whilst the university has for years past pestered the Government for over-increasing financial assistance, so serious a leakage of funds as lias been disclosed could have gone on for a whole decade. To say the least of it, an egregiously faulty system of management or non-management would appear to be a factor to the success of the unlawful operations of the defaulter.

Dickson is about 40 years of ago, and is a son of the late Mr Dickson, a partner in tlie once well-known shipping firm of Wray, Dickson and Co., who at one time owned wharves along the river, and hold . extensive interests in the city. It was in the counting-house of this firm that he gained his knowledge of accountancy work. Twenty years ago ho was appointed as the first accountant of the university by Mr Ellery, the hon. treasurer, and was regarded as a highly competent and reliable man. He was extremely popular among a largo circle of ’ acquaintances, who will be naturally dis--1 mayed at the intelligence of his arrest. The registrar, Mr E. F. a’Bcckett, under whom ho worked, and who had always held a high opinion of him, was shocked beyond measure on learning the truth from the Government auditor, and the professors and other university officials, to all of whom ho was well known, were astounded. Oil all sides the sincerest sympathy is expressed for his unfortunate wife and young children. It is thought that a taste for horse racing, with its (in his case) irresistible enticements to gambling, is the cause of the unfortunate situation in which the unhappy man now finds himself. Ho is known to have been a frequenter of race meetings, and to have had an “interest” in most of the more important racing events. Otherwise Dickson appears to have lived quietly enough. His house, “ Tempo,” at Pardville, was quietly though tastefully furnished, as befitted a mail in receipt of il4oo per annum, the salary which he was drawing. THE TRINITY COLLEGE AFFAIR. The Melbourne Age of August 30 has the following with reference to the defalcations at Trinity College : —“ Following upon the sensational revelations with regard to the alleged embezzlement of the funds of the Melbourne University by its accountant, the public will learn with additional surprise that a similar sensational discovery has been made with regard to the funds of Trinity College. Yesterday an information was sworn by a member of the College Council against 11. Fcreival, the treasurer of the institution, for the embezzlement of its funds. The exact amount of the defalcations was not ascertainable yesterday, but it is be lieved to be about ,62000. The embezzlements are. said to have been in progress during the past five years, having originated in 1896. The matter has naturally caused considerable consterna- , tioii among the college authorities, especially as the treasurer was completely trusted by them. Pereival was a professional accountant until very recently, of the firm of Pereival and Jennings. The partnership was lately dissolved. He - was reckoned a good churchman, and took an active interest in various departments of church work, circumstances which make the present disclosures all the more deplorable. His private residence is at Gotham road, Ivew, where he lived with his wife and family. He was last seen in Melbourne about two days ago, and it is believed that he is at present in a country district in Victoria.