AUCKLAND ATHLETIC AND CYCLING CLUB.

New Zealand Herald, Volume XXV, Issue 9146, 30 August 1888, Page 5

AUCKLAND ATHLETIC AND CYCLING CLUB.

SPECIAL MEETING. ALLEGED MISAPPROPRIATION OF FUNDS. A special general meeting of this club was held last evening in the Imperial Hotel for the purpose of considering several matters in connection with the club funds, which had come to light since the departure of the treasurer from the colony. There were thirty-three members present, and Mr. B. J. Esam was called to the chair. He called upon the acting-secretary, Mr. J. Halyday, to read the following statement from the committee of the club :—

Auckland, 29th August. ISSS. To the members of the A.A.A. and C. Club: Gentlemen, —It is with feelings of the greatest regret that the committee have called you together to make the unpleasant announcement of the misappropriation of almost the whole of the funds of the club by the treasurer. The discovery has been as great a surprise to the committee as it no doubt will be to you. The following are the facte as known to your committee. Last year was the first audit of the club's accounts. Never before have the treasurer's' accounts been open to inspection. On the occasion of the auditors examining the accounts in September, ISS7, everything appeared to be in correct order, a bank pass-book having been presented by the treasurer, showing a balance of .£l4O Ss 6d to the credit of the club. The recent disclosures lead to the conclusion that this particular book must have been made up by the treasurer for the distinct purpose of deceiving the auditor, as on that date, according to the account kindly furnished by the manager of the Savings Bank, the amount to the credit of the club was only £56 16s sd. The committee being aware that the treasurer contempleted a visit to the other colonies, requested him to have his accounts audited prior to his departure. The audit of the present year's accounts took place recently, when the auditors demanded the production of the bank pass-book for verification, showing the sum of £177 0s Id to the credit of the club. The treasurer replied that it was in possession of the hon. secretary, who was absent from the colony. The auditors then examined the vouchers.and found them correct, and further agreed to certify to the correctness of the balance-sheet, subject to the treasurer obtaining a certificate from the manager of the Savings Bank that the amount to the credit of the club was as represented in the accounts. This the treasurer faded to do, and on the auditors learning that the certificate was not attached as promised, the requisite information was applied for to the bank, when the discovery was made that the treasurer had diverted the funds of the club to his own use. The surprise of the committee was beyond expression, as they understood the account was operated on by the hon. secretary and treasurer. This appears to have been the case as regards the current account with the Bank of New Zealand, and why the same course was not adopted with the Savings Bank your enmmittee cannot at present explain, as the hon. secretary is absent, and so unable to give the information. That the treasurer informed the auditors and also the committee that the account in the Savings Bank was in the joint names of the hon. secretary and treasurer is confirmed by the clearest evidence. It is therefore evident that both auditors and committee have been deliberately and purposely deceived by the treasurer. The committee held a meeting oil Friday last, when it was decided to place before the members the whole particulars in their possession, leaving them to decide what action, if any, should be taken with regard to the treasurer. Communications have taken place between the committee and a member of his family on the matter, but nothing is determined up to the present. Mr. Esam has been appointed treasurer pro tern, ponding confirmation by the members. The pass books of both Bank of New Zealand and Savings Bank cannot be found, and several other documents which would have been of service to the committee are also miss(Signed), James Halvdav, jun., acting hon. secretary, B. J. Esam, acting treasurer.

Mr. Robt. Garrett, one of the auditors, then explained what had taken place between the auditors and the late treasurer at the examination of the club's account, just previous to the treasurer's departure, as mentioned in the above report, and stated that not the slightest suspicion of the untrustworthiness of that officer had arisen in his mind till it was found after his departure that the money was not in the bank as stated. Considerable discussion ensued, and Mr. J. J. Poland proposed, " That the committee of the club should take criminal proceedings against the treasurer for the recovery of the misappropriated money." Mr. B. Owen seconded. Mr. M. Gallagher moved as an amendment, " That the committee do all in their power to recover the money without taking proceedings." Mr. W. Speight seconded. The voting was taken by ballot, and resulted : For the amendment, 16; for the motion, 15; neutral, 2. The amendment being then a substantive proposition, the following emendation to it was moved by Mr. Poland, Mr. Davy seconding:—" That the question of criminally prosecuting the late treasurer be deferred till the annual meeting next week, the committee meanwhile to take legal advice a3 to the powers of the club to prosecute." The Chairman put the amendment, which was carried without dissent. The election of a pro tem. treasurer till the annual meeting, was then decided, Mr. B. J. Esam being chosen. It was resolved that the secretary of the club (now absent from Auckland on business) be asked on his return why he had permitted the funds of the club to be placed in the Savings' Bank in the treasurer's name only, instead of in the joint names of the secretary and treasurer as laid down by the club bylaws." A motion was then passed to the effect that the members of the club considered no blame whatever attachable to the auditors. The customary compliment to the chair concluded the proceedings.