“A FEARFUL MUDDLE”

New Zealand Times, Volume XXXVII, Issue 8612, 24 December 1913, Page 2

“A FEARFUL MUDDLE”

TANGLED ACCOUNTS SENTENCE UPON O. N. GILLESPIE POSTPONED. ACCUSED TO HELP IN CLEARING THE BOOKS. The Eoilding solicitor, Oliver Noel Gillespie, who had pleaded guilty to eight different charges of having xcceived suras of money and fraudulently failed to account ’for them, thereby committing theft, appeared at the Supremo Court before His Honor the Chief Justice (Sir Robert Stout) for sentence yesterday morning. Tho defalcations totalled £10,130 18s lOd, the amounts involved being as follow: ■ £I7OO to tho trustees of the estate of James Vile, £275 to Samuel C. Andrews, £4OO to Edward Smith, £1470 17s to Charles D. Snow, £1991 Is lOd to I'rank Jarry, £IOOO to John 11. A’Court, £2500 to George Dear, and ££oo to James Ryan. A BIG RESPONSIBILITY.

The accused was represented by Hill, K. Cooper, of Palmerston North, who stated that tu-toro giving tho reasons why he would suggest a light sentence, ho proposed to go into an application which ho had to make. Tho accused, ho explained, commenced practice in March, 1907, and went into partnership with Mr Pryor; ne was then twenty-four years of age, and took solo control of a considerable proportion of tho financial business, which grow to such a size that from a quarter of a million to half a million sterling passed, through tho trust account every year. A business of that magnitude required considerable ability to keep it in hand and to seo that tho assets were not lost sight of. Mr Pryor went to England almost immediately after tnc partnership started, and tho business was more than an ordinary man could manage. In many cases, advances were made and cheques paid out of trust account, and, clients signed printed mortgage forms which, besides the signatures of the borrowers, contained no information at all. There were a number of mortgages in that state; ho did not know how much they represented, but it was a very large sum.

In answer to a question by _ His Honour, Mr Cooper said it was highly probable that there were largo assets that were recoverable. His Honour asked what were the assets and' what were the liabilities. FREE AND EASY TRANSACTIONS. Mr Cooper explained that this could not yet bo ascertained, the hooks being in such a bad condition. He quoted tho instance of one person who had borrowed from the accused a sum of £BSO on a property, had signed a mortgage form such as had been described, and had paid no interest, and did not know who ho owed tho money to, but who was prepared to isigu a right mortgage. Sinco tho -return of Gillespie another man had admitted owing one sum of £2OOO and another of about £IOOO, and' in two days this amount alono was ascertained. They were all matters of accounts w-hich only Gillespie could work out. Two or three thousand pounds were owing by another debtor, and would no doubt be recoverable if an opportunity was given to enable tho accounts to bo made up. Counsel mentioned that Gillespie left tho country, but returned entirely of his own accord. His Honour remarked that tho police report stated that'fact. Counsel added that Gillespie did so entirely to assist the effort to recover as much as possible and to undo as much as he could the mischief ho had caused. Such a hole was made in the trust account by the muddle that, eighteen mouths ago, he had not the moral courage to face it, and fresh moneys, instead of going into the right channels, were diverted to the trust account to meet the loss that w-as incurred before. There would be a great improvement if accused could spend six weeks or two months in Feilding with the files, in order to assist in clearing up the accounts. Mr Clarke, who had examined the books, was present, and would give any information in his power as to tho result TO LIGHTEN THE SENTENCE.

Hfs Honour said the only point was that if it could be shown that there was sufficient money to pay the liabilities, the Court might deal lightly with the accused. Mr Cooper asked that sentence be postponed for six weeks or two months, and that the accused be admitted to substantial bail in tho meantime. There would, ho added, be a great benefit to the estate. His Honour: “If he is likely to show that the money can be recovered, there is no objection to that.” Mr Cooper: “Tho books are in such a fearful muddle that it is impossible for anyone to give an assurance on that point. Mr Clarke could give an estimate of tho value of the estate.” ACCOUNTANT’S EVIDENCE.* Alfred Thomas Clarke, accountant, of Wellington, was then called as a witness. He stated that ho had been employed by the Official Assignee to examine tho trust accounts kept by tho accused. Ho boro out tho statement of Mr Cooper as to tho books being in a muddle, and said that many largo accounts which appeared as credits were really debits, and vice versa. The accused had lent sums which had not gone into tho accounts at all. It was necessary to go through tho accounts to seo what tho position was, and for this the assistance of tho accused was required. Cheques had often heen drawn merely to numbers or initials. Witness had been unable to tell what tho liabilities were. His Honour; “What are the assets, besides the mortgages?” Witness: “Only a few hook debts.” It would bo necessary to go through all tho various files of papers. He did not sco how tho assets could be written up without tho accused’s assistance. There was a fair chance of substantial assets being obtained. BAIL ALLOWED. Mr Cooper’s application was granted, and Gillespie was remanded tUJ February 17th. Bail was allowed in his own recognisance of £2OOO, and two sureties of £IOOO each, the bondsmen being Mr W. E. Clarke, of Eongotca. and Mr L. B. Wall, of Kairanga. The Chief Justice intimated, in conclusion, that if it could bo shown that the liabilities could bo reduced it would affect tho sentence.