MANAGER MARSHALL.

NZ Truth, Issue 218, 28 August 1909, Page 6

MANAGER MARSHALL.

Flash Fred Fixed.

Frederick Marshall, of Ohristchurch, who played fast and loose with the cash of the United Farmers' Uoal Company, then bolted' to Melbourne to avoid the unpleasant consequences, is now branded with the b-roatl arrow, and will be given healthful exercise at . Lyttelton for the next twelve months. There were only about half a dozen shareholders m the Company, including Marshall, who wasmanaging, director, and the management seems to have been sufficiently slack, to permit of considerable leakage m the : funds. When the Company went into Jiq-* uidation, owing to financial stringency or something, Marshall disappeared, together' with the . cash hook and old ledger, ' and it was discovered that a sum of between £500 and £(500 was' unaccounted for. It i .would.- have been very difficult to say, m the absence of the books, what accounts: had been actually, paid and credited,' but fortunately ex-auditor C. H. \b-layell made up a trial balance-sheet from the ledger- before it disappeared, anil when receipts were produced by customers for moneys paid, he was able to show that m some cases they had never been credited m the ledger, but had been pocketed by some person. Flavell sent his bal-ance-sheet to the directors, accompanied by a report which pointed out the serious condition of the Company's finances, but the report never got past Marshall, who, however, produced the balance-sheet before the meeting. To get rid of the auditors, Flavell and Foster, he stated that they had applied for an increase of salary, which was a fact, and on Marshall's suggestion one Hutchings was appointed m their stead. ■MARSHALL WAS ARRESTED' IN MELBOURNE and brought back. He was charged with destroying the Company's books, . and with converting certain moneys to his own use, but m the Supreme Court the destruction of books information was withdrawn m favor of two charges : (1) That on May 1, 1908, he, stole £2 4s of the Company's moneys ; and that on June 2G, 1908, he stole *B 0 belonging to the Company. Evidence was given that Marshall collected £2 -Is from C. G. Hakcr, Lyttelton publican, and I'ailed to account lor it. Accused gave Baker a receipt for £5 os, as Marshall personally owed the publican equivalent to the balance. On June 2fi Marshall went to Ashhurton and received £60 from A. ll. Field, cashed the cheque at Ashburton, and didn't afterwards account for the coin. Flavell testified .that neither of these amounts were entered m the ledger, m connection with the alleged destruction of books, a charwoman said she had seen Marshall bike to the oilice very early one morning with another man and carry away with him what appeared to be the- office books. The Company has besn singularly unfortunate all round. It employed a clerk-canvasser named Saunders, who died from the result of a blow received from one Kiddey outside a suburban hotel, and m respect oi which Kiti-dey was afterwards convicted of manslaughter. Lawyer Acland, for the accused, produced evidence to . show that Saunders had . given a receipt, for £12 that had not been accounted for, and the inference was (as stated by the Crown Prosecutor) that Sauiwlers . might be responsible tor the shortage. Flavell was called' again, however, to show; that tne whole amount unaccounted for m the name of Saunders would not exceed £15, whilst the actual defalcations reached nearly £600. Moreover, the cash book, m which Saunders .might have credited his small araounts, had disappeared. For the defence evidence was called as follows :— .John Finnerty, carrier, said that on January 23 last he received a receipt for £12 from Saunders, one of the Company's employees, the payment being on account. Marshall was sworn, and gave evidence m a robust and aggressive voice. He, had been managing director of the Company, of which he was a shareholder, since its inception. Re the cheque for £2 4s 2d, received from one baker, he met Baker as he (Marshall) was coming from lunch at the City Hotel. The two adjourned to an upstairs room m the city. The amount to Baker's debit m the Company's books was £5 3s, and Marshall personally owed Baker £2 19 since the time of his bankruptcy two years previously. Baker said he was going to deduct this personal liability, to which Marshall objected, but wishing to act honorably by the man he accepted a cheque for £2 4s and gave him a receipt for £5 3s. The cheque was ' taken to the office and he recorded the payment m the office journal, crediting Baker with the full amount, and debiting himself with £2 19s. That debit was reproduced m the ledger, and was included m the sum of £12 odd which had been debited to himself. Cheques of customers were sometimes cashed at the United Service Hotel, the occasions being when the Company's cheques were not completed so far as signatures were concerned. THE CHEQUES CASHED WERE AFTERWARDS REDEEMED with a cheque from 1-hc Company. T n con-

nection wil.hi Field's account, that gentleman's cheque was cashed by Marshall, the money was placed m the Company's cash box, and the payment was entered jn the cash book. Marshall was m the office during the liquidation, meeting and all the books were" there. Marshall wasn't m. the olflce during ■ the lunch, hour, those remaining being Saunders and young Cameron. All of the books were there at 2.30 p.m., after lunch, the cash book being examined particularly by two of the directors. The meeting lasted till 3.30, when all books, papers,, and files were removed to the office of Craddock, who had been appointed liquidator. Marshall didn't touch the books, nor help to remove them. After the departure of the directors and Solicitor Hunt, Marshall found two letter books under the letter-press, and carried them up to the office of the liquidator. Uameron and Saunders were then present. Marshall, who understood that his services, were dispensed with, was not asked to report himself at Uraddocfc's office next morning, although Saunders and Uameron had been asked to be present. Marshall had frequently been at the office at 7.30 and 8 o'clock m the morning, and Saunders also arrived early on many occasions. The Company banked with the Union Bank of Australia, Lyttalron, the money being banked hy Saunders, Cameron and Marshall, as occasion required. • Marshall said he was very much surprised at the non-payment-in of the sums mentioned m the charge, and he had no' explanation to offer. Ho knew of other cases where moneys had not been paid m. The late Mr Saunders told Marshall of one of those non-payments, but the evidence was J inadmissible, more especially, as his Honor remarked, as Saunders ..was now dead. ' To the Crown Prosecutor : He couldn't remember to whom he paid the £2 4s and £60 m the office. The cash' drawer was accessible to everybody m the office. At. the time of the meeting on J an» vary 27, Marshall knew they were thinking of winding up, as the Company Was not flnancial. He thought that he as managing director was not required m winding up the affairs of the Company, and he didn't turn up at Craddoclc's office next morning. The meeting was • on tire Wednesday, Marshall left Christchurch on Frida)', and slapped hy the Mahenb at the Blurt on Monday,, in-' his own name, but unfortunately the ticket was wrongly made, out, m the name of Mitchell. He departed early, hut didn't conceal his movements, and he weht ; because the Company had gone into liquidation through, competition with McClatchie and Co., which was really, the iJnioh S.fc>. Company, and it was useless for him to remain here. 1 ' ' " ' To his Honor: The ledger was Jeep t by Cameron, Saunders, and Marshalli and they had clerical assistance from outside. His Honor asked Marshall to examine Feild's account on August Ist. TMs was made 'out as beinn; 2s '2d by the junior, but before "it was ' Sent ' to Feild Marshall added a sum to the credit of Fcild of £129 14s 7d., Accused swore that the latter credit was taken from the ledger, , ~ ' - ' AND THE ONLY EXPLANATIOiN he could give was that the hoy had not completed the account, when he made it out. It might not be usual to place the debit m the account and another to deduct a sum to credit ' m the same account. ' .-; ■ . . After addresses, and his Honor's summing up (which was against Marshall), the jury returned a verdict of guilty, and the accused was .sentenced to 12 months' imprisonment. Other charges of misappropriation were not proceeded with.