SHORTAGE OF £1490.

Gisborne Times, Volume LXVIII, Issue 10736, 6 November 1928, Page 5

SHORTAGE OF £1490.

BUILDING SOCIETY SECRETARY BEFORE COURT (Press Association.) AUCKLAND. Nov. 5. The former secretary of the Wlianganei Co-operative Terminating Building Society; Frederick William Webster, stood his trial before Mr Justice Blair in the. Supreme Court on a charge of receiving divers moneys totalling £1490 on terms requiring him to account for them and fraudulently omitting to do sio, or pay them ’in, and so committing theft. Mr Johnstone for accused raised objection to the term “divers sums of money” in the indictment, as it did not m any way identify the sums intended. He moved that the indictment should be quashed, and His Honor noted the point for later decision. Dir Meredith, Crown Prosecutor, said the Whangarei Building Society consmenced in 1924 and Webster was its secretary until he was suspended in Aiigust, 1928. At the end v of the first year, Mr A. M, Rust, auditor, gave such a favorable report of Webster’s work that the di.rcctors decided to increase his salary from £IOO to £l5O. At the end of the second year, things were not going so smoothly as they should ave been. In August 1927, Webster was cautioned about this and, last May the auditor put in a report claiming that the hooks were not up-to-date, and that the general positon was unsatisfactory. Mr Rust was given instructions to carry on a continuous audit. On August 12, he reported he could not complete the balance sheet for the year ending August 12 owing to a shortage of over £I3OO. Webster said: “I cannot understand it; 1 could not possibly have used as much as that.” On being questioned Webster admitted that he might have taken as much a 4 £l5O or even £2OO. Counsel commented that Mr Rust seemod to have been exceedingly slack and possibly exceedingly weak. If ho was not cognisant of what was going on ho must have been very careless, and perfunctory in the way ho was carrying out his duties. In none of the interviews in which accused was faced with the shortage, did he suggest any inaccuracy in the figures or blame anyone else. His onlv explanation was that the money had gone, hfe did not know how, but that he had not had it; He eventually exonerated Mr Rust, his own son. and Miss Brown, both of whom worked in the office for him. Tho position was fully investigated by Messrs Thomson, Gray . and Rodger, auditors, of Auckland, who found a total shortage of £1490 16s Sd. The case for the prosecution has not yet concluded.