THEFT CHARGES

New Zealand Herald, Volume LXX, Issue 21561, 4 August 1933, Page 12

THEFT CHARGES

DIRECTOR ON TRIAL J CASE OF J. M. HOUSTON i OPENING OF THE DEFENCE i ACCUSED GIVES EVIDENCE } Tho trial of James Milward Houston, icompany director, aged 44 (Mr. Haigh), I on charges of fraudulently failing to I account for money and of theft was • continued before Mr. Justice Herdman jin the Supreme Court yesterday. Tho j separate counts in tho indictment num- ; bor 64, chiefly alloging failure to account. After lengthy legal argument Miad been heard in chambers the deI fence was opened, and evidenco was Igiven by a public accountant and by •accused. • It is alleged that oti various dates .between October 5, 1928, and February ; 11, /1933, the accused omitted to account for £1755, which ho had received ton behalf of John Burns and Company. I Limited; and that on April 20, 1932, laud March 31, 1933, he stole sums jßerkel (N.Z.), Limited. A further • charge alleging forgery of a stock sheet ihas been abandoned bv tho Crown. The is being conducted by the !Crown Prosecutor, Mr. Meredith, and ;Mr. -McCarthy. ; He-examined by Mr. Meredith.; ;Charles A. Deuxberr.v, accountant, i'ri the employ of John Burns and Company, who has been investigating the l3ooks and records of the accused, gave instances of machines sold by accused of which he gave no notification to Burns and Company, and which he afterwards showed in his records as being in stock. The total shortages were over £6OOO, of which £4200 was represented by machines and £IBOO by cash. Detective's Evidence Answoring Mr. Haigh witness said accused had submitted a false balancesheet.., Detoctive K. M. Mills said that on May 16 a warrant was issued for the arrest of accused. When interviewed ;accused said: "I deny stealing any money belonging to John Burns. Any explanation 1 have to make I will make to the Judge." . ' This closed the caso for the Crown, and an adjournment was taken for tho hearing in chambers of legal questions raised by Mr. Haigh. Mr. Haigh, addressing the jury, said accused would give a satisfactory and reasonable account of each charge made. It was true that he had given false stock sheets to Burns and Company. Nevertheless lie was not guilty of the charges laid against him. The Original Agreement

!' Accused had accounted for every penny of the money received by him, and had not received a penny that wa3 not known to Burns and Company. Under tho original agreement of 1920 beiween Aubrey Houston and Burns and Company the goods when imported became their joint property. Upon the sale of each machine Houston had to -pay to Burns and Company an amount equivalent to the landed cost, plus lo per cent as Burns and Company's .remuneration for financing the arrangement The so-called. consignment account was a debtor and creditor account, and if that were 60 the clause of the Grimes Act, under which the charges laid, had 110 t application. "This is not a criminal action a!t all," said Mr. Haigh. What this man has to face is a civil action. Counsel said that Mr. H. Tiarks as accountant .must have known that Biirns and Company was not being paid for machines sold, and yet over a period of years he took no action. The jury had been - told that because accused had omitted to put seven items through the books of a company in which he held 999 out of 1000 shares he had been guilty of fraud. • - i Evidence of Accountant I George Grey Campbell, public acIcountant, said records produced indicated a debtor and creditor account } between the accused and Burns and ; Company, in terms of the original • agreement between Aubrey Houston < and Burns and-Company. Where goods * were delivered on consignment the 'consignee was tho owner of the goods. Mr. Haigh asked if witness would I expect the same degree of particularity in the accounts of a small one- \ man company as ho would in a large t company. •*' •' His Honor: I should say there was Ino distinction. Every company has got Ho be honest. • Witness: The position is that you ex- ; pect it, but you don't always get it. ; In cross-examination, witness said J books produced showed that accused »■understood he was dealing with consignment goods and making payment to' Burns and Company on account. If j evidence previously given was correct \ then a notification by accused produced »made a false representation to Burns J and Company about tho machine. J The accused, giving evidence, said j that prior to 1925 he had been with •his brother in this business of soiling 'machines, and subsequently ho carried on the business until it was taken over ♦by a' company on April 1, 1932. • He ! considered that when the machines ; Tvoro delivered to him they became his '.property, and were not consignment l.etock. In terms of the settlement of •;1925 he took over from his brother a '■liability of £3OOO to Burns apd Com- - pally, which he paid off in five .years. Annual Statements In 1925 Mr. H. Tiarks was appointed accountant by Burns and Company to look after their interests, but accused' had to pay him £IOO a year, continued accused. Between 1925 and 1932 there fwere several defalcations by his employees amounting to £1250. Witness ;never understood that'he had to account for moneys collected. There was trading account between ' himself sand Burns and Company, and it often i happened that ho paid for several machines with one lot of promissory nates'. He admitted that Burns and Company had a considerable claim against him for money due. Burns and Company had taken a debenture covering all the assets, including a mortgage over his house and over the firm's car. ,

It was true that he had sent false etopk sheets to Burns and Company of his own private concern, because his salesmen had taken money, and bocause of the largo amount taken by Burns and Company in interest. Ho serit in true statements every year of all money received and paid out. These statements also showed all his personal drawings from tho business. In five of the cases which were tho subject of charges bo had paid Burns and Company in full either by cheque or promissory notes. The caso was adjourned until this morning.