CHARGES OF THEFT

Hawera Star, Volume L, 25 September 1930, Page 6

CHARGES OF THEFT

NORMANBY TOWN BOARD CASE

FURTHER EVIDENCE YESTERDAY

Tho hearing of the -theft and failing to enter charges against Donabl Alcxander Stewart, formerly -clerk of the Normanby Town Board, were continued in tho Hawera. Magistrate’s Court yesterday afternoon before -Messrs E. Dixon and G. A. Burgess, J’s-.'P. Mrs L. E. -Grant replied to- Mr Taylor that she was •»' sister of Mrs Stewart. She could not state anything about her sister’s illness, nor about that of accused. Alexander Arch-bold said that he lived opposite the Stewarts, lor the past four or live years the Stewarts had had indifferent health in turn. Stewart’s- moral -character had been everything that could ! bci ■wished foi. To witness’s knowledge during the lasr 2-3 years accused had not smoked, drank or gambled. Stewart had been held in the highest esteem by pa'keha and native alike.

Donald Robertson said lie had known accused continuously for 12 years-. He had found .Stewart’s moral character to be excellent. Both Mr and Mrs Stewart had had indifferent health, either one o-r the other being continuously in bed. Ho had such an opinion of -accused that, lie- would trust him “with un--counted gold.” Further evidence of payments either to accused or his wife, on behalf of the board w-as- given -by the following ■witnesses: Mrs L. E. Grant, March 24, 1-929 £lO Os 3d; Mrs L. Young, December 7 1029, £2- 119 3d; J. E. Archbold, August 7, 1929, £lO 6s 2d; A. Powell, September 11, £2 14s-; J. W. -Harding, on behalf of the Hawera. County Council, Julv 11, 1929, £2 15s lOd; J. Highman, September 16, 192-9, £2 _6s; D. Robertson, December 20, 1929, £o 2s 3d; L. Bell, January 20, 1930, £5 1-Ss 3d; J. Young, January 30, 1930, £6 sst 7d.

EVIDENCE OF BANKING

Arthur Beck, ledger-keeper of the Bank of New Zealand. Hawera, stated that the Normanby Town Board had an account at the bank. He produced two pass books which covered the period from November 23, 1921, to August .18, 1930. He had checked- -the entries in the books with those in the ledgers and had found them- correct as far as the bank was concerned. The Normanby Cemetery Board- also had an account at the bank; he had examined that board’s pass book from March 31. 1929, to August 18, 1930, the entries in it. corresponding with those in the ledger.

Treasury subsidies payable to the Normanby Town Board came direct to the bank and; were immediately placed to the credit of tho board, particulars being entered in the ledger, and from time to time in the pass book. Accused -had -an account at the bank and his pass book corresponded with the ledger. The board’s bank deposit s-lips from 1927 to 1930 had also -been found correct.

-Robert N. Morpeth, -accountant at the Banik c.f New Zealand, produced an authority from accused for -the bank to hand his pass book over to the police as well as Stewart’s deposit, slips. Since April 1, 1927, to .date Stewart had banked £397 in cash.

Answering- iMx Taylor, witness said that -as far as lie was aware every cheque drawn on the 'Town Board’s account had gone to its proper destination. In addition to the -cash -banked by accused bo bad also banked cheques over the period.

AUDITOR’S EVIDENCE

Harry L. Alarbrook, Government audit inspector, stationed at Wanganui, said that about April 2, 16-7, fie had completed an audit of the Town Board’s books. There was then a deficiency of £39 18s 3d, representing cash unbanked to March. 31, 192/. rhe shortage was carried over. This was the first time witness had audited accused’s books, and he had advised Stewart to pay the amount into the \ank. The probabilities were that he had also instructed Stewart as to the proper wav to keep his cash book and account for his money. It was presupposed that Stewart would pay the £39 18s 3d into the bank, but on June l last, when witness had returned to /again audit the books, be could find no trace of it having been banked. Stewart had said lie thought the amount had been repaid in subsequent bankings. At the audit in June this year the shortage was £286 15s 3d, and a fmthcr total sum of £7l 6s had been discovered subsequently. The total amount accused was charged with stealing was £328 Ids od. Accused had a number of" receipt books which were checked with the cash book, and a sum of £lO 6s 3d was found not to have been entered in the latter, while an amount of 10s had been pencilled in. tlie cash book and not extended, while it was later found that receipts had been given for several other sums, but they had not been entered in tlie cash book. Several Treasury vouchers had been entered in the banking column only, whereas they should also have been shown in the name and cash columns of the cash book. Witness did not think that accused quite understood the purport of the entries regarding Treasury subsidies. Several payments by ratepayers had appeared only in tlie banking column. A sum of £4O received from Alulholland on June 11, 1929, for an hotel license, was received by cheque and was banked, but not entered in the cash book, as was a sum of £lO received from Alyward, which was also banked, and a further cheque of £3O from Alyward. A receipt for £8 11s Od was made out to CL Galloway for rates. This amount had been paid by cheque and banked. Accused had told witness after the audit that he had made out a receipt under the same date after the audit. Witness liad then found out that tho original receipt for the amount had been given on a form out of an old book, which could not now be found. Accused bad said that lie had destroyed the original receipt out of tlie current receipt book. The receipt on the old form had come to witness as the result of a circular sent, out to ratepayers. When asked about tho old receipt,, accused had said that, [he thought ho had told witness he liad used the old book, but that was not ’correct. A cheque for £3O Is 4d received from W. T. Hair had been banked in accused’s private account. Accused had given that information voluntarily and had said it was an attempt to rectify an error in banking £2O from h lessee of tlie Domain Board to tlie credit of the Town Board’s account. He bad banked Hair’s cheque in his own account and at the same time had drawn a cheque for £2O and paid it to the credit of the Domain Board’s Account.

At this stage the hearing was ad journed until this morning.

BOOKS IN STATE OF CHAOS

Continuing bis evidence this morning, the auditor said that accused s books were always in a suite of chaos, and bo bad no knowledge of bookkeeping. His arithmetic was bad and witness did not think accused was canable ol' arriving at a balance of the books. Stewart had accepted the amount of .shortages found by witness as being correct, but be did not know where the money had gone. Witness had -suggesetd that it was due to the casual way lie kept his books pud looked after bis cash and banking o-enerallv. Stewart liaci .said he liacl often accepted money in the -street and on occasions when be had not had a receipt book with him, while sometimes he would have a good many pounds (in one instance over £7O) in his, bouse. The bankings were very irregular. Except for tlie use mid disappearance of the obsolete receipt book and the Treasury advices, Stewart had given witness every assistance to clear the matter up. . Answering Mr Taylor, witness said that- Stewart had t-okl liim that the obsolete receipt book and the Treasury advices bad been left at the Tow n jlall, but bad added that the I reasing* advices might have been burnt in bis clearing up. Ordinarily, a bookkeeper would enter all the items of cash received and Treasury vouclieis in tlie name and total cash columns, and that lie would add in the total bank eolumu tlie bankings of ca-sli to date and tlie Treasury vouchers. As far as Stewart’s duties were concerned in relation to Treasury vouchers, it appeared to witness that be made an entry in the banking column of the amounts of Treasury advices, and the omission to make the entry in the ieeeipt column was probably tlie result of bis limited knowledge of bookkeeping. The Treasury monies bad undoubtedly reached the account of the Town Board, and they could not have been paid out of that account without a cheque from the board.

Mr Taylor : Stewart is. as you are aware, charged with failing to enter the Treasury amounts with intent to defraud. Witness : Yes.

“NO INTENT TO' DEFRAUD. “L cannot see any entry in the cash book in relation to Treasury vouchers showing an intention to defraud the board of Treasury subsidy, taking into consideration bis incompetence as a clerk. Had the omissions been made by anyone whom I knew bad a lull knowledge of bis duties, then I would conclude that the omission was done with intent,” answered witness in reply to another query. Answering tlie Bench, -witness said that neglect in the books was obvious ever since 1923. Until the last few years, however, the deficiency was ol no consequence. “Have you found any attempt to misapply any of the cheques drawn by the Town Board?” asked Mr. Taylor Witness: No; except those explained bv the witness Henderson yesterday. “As far as Stewart’s memory goes, and I am convinced it is very bad, he lias been very frank.” With the exception of Hair’s cheques all others bad been paid into tlie bank to the credit of the board. The cash was more ol* less untraceable, and m tlie case of a person who was incompetent and negligent, but who- bad intention to do the right thing, cash could go astray, but there would have to be a poor ‘ arithmetical knowledge There were occasions when accused bad drawn cheques oil bis private account and had paid them into the board s account, which showed that he bad realised be should have banked cash lor the board.

CB UDE BO O K-K EE PER S. ’

Proceeding, witness said that Mrs. Stewart bad remarked that they (Mi. and Mrs. Stewart) were crude bookkeepers. When Stewart bad been told of the deficiency be bad apparently been aware .of the position, but bad not realised the extent. He bad not found any attempt on accused’s part to wilfully falsify the books. With the sole exception of the case of Llovd junior, for an amount of 9s 2d. Stewart bad made entries in the books, showing the receipt of tlie monies by him, but sometimes in an irregular manner. Stewart bad not mentioned, however, the use oi the obsolete receipt book.