TOWN CLERK CHARGED.

New Zealand Herald, Volume LXI, Issue 18629, 9 February 1924, Page 11

TOWN CLERK CHARGED.

1 ALLEGATIONS 'OF THEFT. | MARINE BOROUGH FUNDS., EVIDENCE FOR THE* CROWN. A plea of not guilty was entered yesterday at the Supreme Court by James Wilson. (Mr. A. H. , Johnstone), •• formerly town . clerk of ] Devonport, to; a charge of stealing, between March 1, 1923, and January 15,; 1924, £768 ss;, the property of Devonport Borough Council. The case was opened'before Mr. Justice Herdman. The portion ;of the Court open to the public.was -crowded. - • - Mr. Patersoh,Jior the Crown, said accused was charged with an offence known as :". theft as t a servant." He was charged ] with stealing money belonging to the Devonport Borough Council, his employers. ' Accused had chargo of the Sorough finance.'lt was discovered in anuary that, there was a deficiency in the money. Accused put back a certain sura of money, but unfortunately for him that amount was not all the money that was missing. Thomas Lamont, Mayor of Devonport, stated that accused had held office as town clerk and borough treasurer for some years prior to January 15. Witness had made various requests to accused for the preparation of an audit. To the first request, prisoner gave quite a reasonable excuse. Accused had been ill for about a month' during the middle of the year. Eventually it was arranged that the auditor should go to.'the office immediately after the holiday, and accused was informed of that. ' 'i; - On January 9, witness attended the otfice and met the Government auditor and the latter, mentioned that there was a shortage. On January 10, witness saw accused at the office.' ' : * Borrowing From the Cash. Continuing, witness said that when questioned by the auditor accused; admitted that he had been in the habit of borrowing money out of the borough cash from Miss Faulbaum, the cashier. The auditor told accused that Miss Faulbaum had stated that he had had £300. Accused admitted that he had met Miss ; Faulbaum on the evening of January 9 at the office and had put £306 into the cash box, taking out cheques totalling that amount. He had also put in a further £100 to cover other items, including a sum of £35 to make good a shortageexisting on April 1, 1§23, and £50 as a loan to the cashier in case there was a further shortage. : ■ When the auditor told accused that, notwithstanding the amount of money in the cash box," there was still, a short' age of £300, accused said: " That cannot be so." The auditor then suggested that accused should take the day with Miss Faulbaum, go through the books, and see if he could find the £300. Witness, continuing, said that the auditor questioned accused about gambling, and he said he had gambled a little. When asked if it^ was poker or horse-, racing he replied:*" A little of both." He said he played for very small stakes, and never gambled either for £5 or £20 stakes. Busy Year for the Staff. Cross-examined, witness said it was no part of accused's duty to take cash at the counter. The balance-sheet was wanted for the ratepayers. He quite believed that accused's excuse about pressure of work preventing him preparing the figures was a valid one. Many things combined to make 1923 a busy year for all of them. He had no reason to doubt accused's statement as to his illness, or that some of the staff were away ill. Toward the end of the year, proposals for a loan scheme were placed before ratepayers, and that would add a good deal to accused's work. • Witness said he believed that the annual revenue of the borough was about £20,000, paid in amounts of from £4 up to £100. There was a lot of night work. Accused had not had a holiday in witness* Siine. The first conversation. febout a' shortage was with Miss Faulbaum. They spoke to her on three occasions before discussing it with accused. When the auditor put it bluntly to accused that the amount short was about £300, he answered, " Yes." . There was one entry in the book, written in pencil, and not in ink, .which witness considered a false entry. Do you know that Wilson's attention was never called to that entry?l have never heard him say it was not. Evidence of the Auditor.

Cyril George Collins, Government auditor at Auckland, stated that) he approached accused i» June in regard to an audit, and.he then said he was not ready. On two subsequent occasions he was again told things were not quite ready. On the last occasion witness said he would be over" immediately after the New Year. On January 8 witness went to the Devonport Borough Council's office and told the assistant town clerk 4 Chambers, that he was ' going to' commence the audit. The cashier, was absent on leave, and Chambers produced the cash box and cash receipt book. \ Witness" counted the cash, and informed Chambers that there should be further cash.' The amount in the cash box was £227 16s 7d, including a cheque of accused's for £15. Witness had found no signs' of defalcations or alterations in the books. His Honor asked what the shortage was, and witness replied £362 ss. His Honor: This money would be paid to Faulbaum. How did accused have anything to do with it ?— do not know what connection accused had with it except that he is-the treasurer. . Some Money Hot Traced. Witness, continuing, said £406 had been paid hack. The shortage originally was £768 ss. He had not been able to find out what had become of the remaining shortage of. £362 ss. It was still missing, • His Honor: Is there any way of tracing it? Into whose hands does it come in the first instance?— The cashier, Miss Faulbaum. ■ ■ . ..,:>< Is she responsible for banking it? Yes. Did she bank it?— She could not have done so or there would not have been the shortage •'•..• • < y Has she got the money, or who has got' it?— That is what the Crown has got to ( prove. •''■'■' -~ • C; ' Mr.. Paterson said he thought, the auditor knew as much about it as the rest of them. It. had vanished into thin air. To His' 1 Honor, witness said accused had admitted ho had had.cheques in for £306. . . In regard, $° a specific item of £28 lis lid in the "'accounts, witness said he did not think there had been. any defalcation in respect. to that. \ * The Cashier's Position. ; Mr. Johnstone stated that he wanted to make it clear that they did not want to say a word against Miss Faulbaum. ; Sinclair W. H. Chamber*; _ assistant town clerk at Dnvonport, stated that in the' absence of the cashier he had received the banking moneys. On one occasion he knew accused to receive money over the counter. On January 7 he rej ceived a telephone message askinc if ha could 'send accused some money. Witness took £15 from the cash and received , a cheque for £15 in exchange. The cheque was put, with the cash, and accused on the following v day asked him to hold it. Next day witness received, £15 for the cheque. ' Witness had no idea in regard to the money which was missing. ; A bank clerk gave evidence of accused's banking account being overdrawn to about £85 for 18 days in May. Greta Tui Ingham Faulbaum, the cashier, said -she took her instructions from accused, and'in his absence from Chambers. . She entered the office in October, 1921, and a few months later she cashed ■ small cheques. She had cashed cheques on numerous occasions , for accused, and latterly she had not been allowed to bank them, having to hold them back till he" redeemed them. She had been, on accused's " instructions, holding cheques back for the past year. j The hearing was adjourned till to-day.