BREACH OF THE FRIENDLY SOCIETIES' ACT.

Lyttelton Times, Volume LXIII, Issue 7524, 14 April 1885, Page 3

BREACH OF THE FRIENDLY SOCIETIES' ACT.

4. At the Magistrate's Court yesterday morning, before E. Beetham, Esq., R.M., Ernest Kowland Davis, alias Ernest A. E. ileid, alias James Ernest Oliver-, alias A. E. Eeid was charged under section 11, sub-section 7, of the Friendly Societies' Act, 1882 i that on March 5, at Templeton, with intent to mislead and defraud, he gave to one James Parish a copy of rules on pretence that the same were the existing rules of a registered Friendly Society, " The National Sick and Burial Association," whereas no Society of that name was registered. Inspector Pender said that this was the I first case of the kind in which proceedings ha.d been taken under this Act in the Colony. Maurice O'Connor deposed: I arrested accused on April 2. Charged him then with obtaining 15s by false representations from James Parish. Found on prisoner two papers, one dated March 3'and the other March 5, purporting to be signed by a Government official. The papers were concerning the registration of a Society to be called the " National Sick and Burial Association." The Society could not be registered in that form. Had examined the Gazettes, and found no such Society registered. (Gazettes put in.) Found a Post-office Savings Bank book amongst accused's goods at his lodgiugs. The entries in the book were apparently not genuine. His "Worship : Surely you can get better evidence than that as to the genuineness of the entries.

Mr Pender: There is a difficulty in getting information from the office, but we will endeavour to get better evidence. In answer to the Bench, Inspector Pender said that the documents put in by Detective O'Connor were to show that the Society was not registered, and that accused had been therefore acting fraudulently in distributing the copies of rules purporting to be those of a registered Friendly Society. The Bank-book was also put in, to show the alleged fraud. To accused: Tou did not tell me the Society was registered. I spoke to you about a month since about a similar matter; you did not then tell me the Society was registered. I doubt the last entry in the Bank-book (.£9l), because there is no postoffice stamp after it. James Parish, a labourer, living at Templeton: I know accused. Saw him at Templeton in the beginning of March. He told me there was to be a meeting held in the Foresters' Hall, Templeton, for starting the National Sick and Burial Association. Went to the meeting on March 5. (The accused objected to the witness refreshing his memory by reference to a document. His Worship ..overruled the objection.) There were thirty or forty persons present at the meeting. Accused proposed that Mr Maddison take the chair; he did so, and accused addressed the meeting, saying that the National Sick and Burial Association was a registered lodge, and explained the advantages people would have in joining them by paj'ing half-price, according to the scale in the books accused showed people. Accused gave me one of the ■ books. (Produced.) I joined under "Class 4" in the book. Payments were made after the meeting by several who joined. I was admitted a member the next night, and got another small book. The accused examined me as to soundness of body ; he said he was a doctor. I paid 8s for entrance fee, 3s 6d for monthly contribution, 6d for the book of by-laws, and 3d for the contribution receipt book. Accused filled up a receipt in the book for the money I paid. Seven or eight other labourers in the district also, joined. There was provision in the rules for "sisters" to join. Believed accused examined the "sisters" who joined. A fortnight after I paid accused 3s as a quarterly eontribution to secure medical attendance. Accused told us he had engaged Dr Preston. I met Dr Preston afterwards and asked him to attend me. He refused, saying he had nothing to do with it. I also paid accused sixpence as a contribution towards a Widow and Orphans' Fund. Saw accused after I had met the doctor, and asked him to prove that he had paidthe money he had received intothe

Bank, but he could not do so. Asked accused to show the registration certificate. He replied that he had only been allowed the use of the book showing the registration on the occasion of the first meeting. .To prisoner: Tou read the rules at the meeting, and invited questions. I did not ask you any question. The Chairman did not read any form of application for the registration of the Society. I paid halfprice, as I was one of the first who joined. Could not say whether or not a letter was read at one of the fortnightly meetings from Dr Preston declining to act as medical officer. Tou said there was another society called the "Eational Sick and Funeral Society." You did not say that the name had been changed to the " National." Be-examined: Accused represented himself as the agent for the " National Sick and Burial Association/'

Frank Maddison, a farmer at Templeton, who had acted as Chairman of the meeting referred to by the Jast witness, deposed that he knew accused as "Dr Ernest Eowland Davis." . Accused had introduced himself by this title and name at the meeting at Templeton, when he said that the " National Sick and Burial Association " had been established forty-nine years in England and eleven years in New Zealand. This witness corroborated Parish's statement. He had also become a member of the Society at Templeton, and paid accused lis 3d in fees. After the Society had been in existence about a ißonth, the members became anxious to know what accused had done with the money, and at a meeting held on April 1 accused was taxed to produce his bank book, but he could not do so. Witness had not seen accused since that day. To prisoner: Tou said yoa would prefer me to read the documents you had for the satisfaction of the meeting. You handed me a document which you slid was the registration of the Society. I only glanced at it, and did not read it. You said that the "Eational Sick and Burial Association" had fallen through, and that the " National" had taken its place. At one of the meetings you said you had appointed Mr Scott as Secretary in lieu of Mr Jackson. You told me there would be a meeting in Christchurch on the Tuesday after April 1, and that the Society would have to be registered under a new name. Saw the meetings advertised.

The accused expressed a wish to examine certain papers at his lodgings, and his Worship directed that he should be allowed an opportunity of doing so. On the hearing of the case being resumed, the accused showed several documents to the witness, some of which he identified as being those he had seen at the first meeting held at Addington. James Colenso, a gardener, living at St Albans, said he had been a member of the " Bational Sick and Burial Association " in England for years. Eecently he had tried to open a new district of this Society in New Zealand. It had ; not been registered yet. Advertised for an agent, and got a reply from Dunedin from A. E. Eeid; the accused, who was known in Christehurch. as E. Davis, was the same man.- The letter witness received dated Dunedin, Sept. 3, 1884, was in accused's handwriting. Accused was appointed canvabsing agent at Dunedin for the "Eational' Sick and Burial Association/' Accused acknowledged to witness that he had received money at Dunedin, Waimate, and Addington on behalf of the " Eational " Society, but he never gave witness any money. Accused came up from Dunedin in September, and said he had opened a branch of the Eational Sick and Burial Association in Waimate. The members of the Society in Dunedin had a down on him, and he had fled to Waimate and had taken the name of Davis in order that the Dunedin members ■. might not know where he had gone to. He entreated witness to take him on as an agent and accept the members he had received in Waimate. Witness took him on again, and he acted as agent for the Eational, and collected money, but never gave witnesa any of it. On Dec. 30 last accused was dismissed by the Board, and had had no connection with the " Eational" So3iety since. The contribution book produced (one of those accused had been using) was printed for the " Eational" Society. The accused had had a copy of the rules of the "Eational" Society (produced). Looking at the rules of the "National" Society circulated by accused at Addington, witness said they were similar,, but the number of " Classes " was more numerous.

To prisoner: I can swear that you told me you were both Ernest Eowland Davis and Eeid. T did not, that I know of, say I saw you in Christchurch. - I had business transactions with you before I received letters from you referring to the " Eational Sick and Burial Association." Gave a man named Eeid permission to engage subagents in Dunedin. You acknowledged to me that you were Eeid in the presence of my wife. The cross-examination was continued at great length. This concluded the evidence.

In answer to the usual caution previous to committal, accused said:—l plead " Not Guilty.'" James- Parish with others, on, March 5 last, did, at a public meeting called by me, join as a member of the National Sick and Burial Association. The meeting was called for the purpose of opening a branch lodge of the above Association by me, the representative. After reading the rules and , explaining the different classes and benefits derived therefrom, thirteen came forward, including James Parish, and joined as members and paid the amount demanded, viz., half entrance fee, on the opening night, with one month's subscription and 9d additional for rules and cards. The meeting being public, any questions were allowed, to be put to me by anyone present. A few questions were asked as to how long the Society had been •working in New Zealand. I replied only a short time, but that I had been acting for another Society previously. That Society had been working eleven years in < New Zealand to the best of my knowledge, and was not registered. I then started a Society on my own responsibility, and had written to the Registrar in Wellington an application to register. The Chairman read out a form of application to register, and the whole meeting seemed satisfied. Others, including James Parish, joined as members, and it was agreed to hold a meeting the next evening (March 6) for the election of officers and examination, when those who were found healthy would stand good; any unhealthy, or with any symptoms of organic disease, would be rejected, and have their money refunded, again. The meeting took place as proposed, and all passed successfully but two whom I was rather doubtful of, but accepted on condition that they should be re-examined in a month hence. Cards and rules were supplied to each member w°ho joined, and a receipt given for all money paid.* The meeting closed at 12.15 a.m., and it was proposed to meet again on March 18. The minutes of the meetings of March 5 and 6 were published in the daily papers in Christchurch. I kept nothing secret. Got the printing all done in my own name for starting the "National Sick and Burial Association." I started the Society with good intentions, devoting my whole time to it and its members—collecting and visiting, and also attending to the doctors and all meetings, doing all correspondence .between the Society and anyone else. The members could not expect me to do this for nothing, and the amount of cash already collected has not covered the expenses incurred in opening the Society; but some of my own money has been expended in the management of the affair. D: the members were to pay up arrears; the Society would be independent. Members had asked me what' doctors I had engaged. !• replied, "Drs Thomas and Guthrie,.

Christchurch." They asked if they would attend them for the same fee. I replied, " No, but would charge 5s mileage extrj* after the first three miles." Dr Preston's name was mentioned, and I agreed to visit him, which I did. He said he would undertake the position of medical referee to the Society, if I could promise him 26 members. I said I could guarantee him that, and he accepted verbally. He asked me to write to him by way of an agreement, and state terms, &c, and he would reply accepting the same. I wrote, but got no reply. Told the members on March 18 they would have the doctor's services when they paid the fees. James Parish and two others then paid their fees of 3s for the doctor. Subsequently I received a letter from Dr Preston, which I laid before a meeting on April 1, saying he did not see his way clear to take any more Clubs than those he already had. James Parish then said I had obtained money from him by false pretences. I replied I was not aware the doctor would decline to act, but if they liked to choose any other they could do so. 1 said that I had engaged Dr Moorhouse, and advertised in the papers to that effect. They objected to Dr Moorhouse, and wanted to engage one amongst themselves, contrary to the rules of the' Society, as it was my duty to engage and pay all doctors, as the rules specified. Parish said that Inspector Pender had a'great many of the cards in his hands, and that I should hear more before long. I replied that I had acted honestly, and did not mind, as I could account for what I had received. Some of the members said I was welcome to what they had paid me, as they would pay no more. I said, "Had any of you been entitled to benefit, and declared on the funds, there being no funds to fall back upon, and I could give no.account of the money 1 received, it would have been something more for you to take- to court; but at present none of you are entitled to any benefit. If you pay up your subscriptions, it is bound to be a success to those already in connection with it." They declined. The monthly subscription was again due, but they did" not pay. They said they would pay their assistant secretary. I heard nothing moretill I was arrested on a charge of obtaining money by false pretences from James Parish. I was handcuffed, and led through the streets three times as a public exhibition. Had not given any books of rules to any persons with intent to mislead or defraud them in any way. Had told persons thatthe Society was not registered, but that application had been made to register it. Produced a form of application for registration at the meeting, which was referred to in evidence.

The accused was then committed for trial for a misdemeanour at next criminal sessions of the Supreme Court; . - The'hearing of a second charge of a similar nature was adjourned to April 21. Inspector Pender withdrew an information, for obtaining money under false pretences, which had been laid under the Police Offences Act. The Court adjourned at 5.25 p.m.