ALLEGED MISAPPROPRIATIONS

Southland Times, Issue 17763, 23 September 1914, Page 2

ALLEGED MISAPPROPRIATIONS

CASES AGAINST CORPORATION. EMPLOYEES. LYONS AND GAMBLING BEFORE THE COURT. COMMITTED FOB SENTENCE. The series of cases which have been termed the Corporation misappropriation cases were heard before Mr T. Hutchison, S.M.. in the Police Court yesterday. John Towler Gambling was arraigned on the following charges:—(l) On or about March 23, while acting in the capacity of clerk in the employ of the Invercargill Corporation, he did, with .intent to defraud, make a false entry in certain cash and receipt books in a material particular, to wit. the sum of Is revived from Joseph Davis, whereas it should have been entered as having received the sum of 12s; (2) did. on May 29. commit a similar offence by crediting Joseph Davis with Is instead of 12s; 13) on June 23 did commit a similar offence by crediting Joseph Davis with Is instead of 12s; (4) on June S did commit a similar offence by crediting Jabcz Hay with Is instead of £1 3s; (5) on March II did commit a similar offence by crediting Jahez Hay with 13s instead of Cl 3s: (6) on February 28 did commit a similar offence by crediting T. Philpott with 6d instead of £1 Is. Detective-Sergeant Cameron prosecuted and Mr Eustace Bussell appeared for accused in all cases.

Evidence was given by Edward Rabbidge. manager of -the Corporation Gasworks, who said tho accused was a clerk in the gas department until July 22. He had charge of the cash book and receipts produced, and the entries almost without exception were in the accused’s handwriting.

In reply to Mr Russell witness said that when the alleged false entries were discovered and the accused was informed he made a further false entry later in the day. . This was to the extent of 21s. The accused was given the opportunity of resigning in the morning, and this false entry was made in the afternoon. Two or three days after the discovery the accused approached witness for a reference as he wished to obtain a Government position. In the course of the interviews tho accused did not fail to realise the position lie • was in. Joseph Davis, dye works proprietor, produced receipts lie received from the accused. He had paid the money shown on tho receipts for coke. Thomas Philpott. carter, said lie delivered some coke to Jahez Hay, Ythan street. He received the receipts (produced) from Gambling, to whom he paid money received lor the coke.

Henry Theodore Thomson., AuditorInspector in the employ of the Government, said he examined the books under the charge of Gambling. The receipt produced from J. Davis for 12s was marked in the counterfoil as being is. and this was entered as is in the cash book. Another receipt of 12s in the name of J. Davis was shown in the counterfoil and cash hook to the credit of .1. Day. the amount being Is. Another of 12s, bearing the name of J. Davis, was entered up to J. Delaney as Is. A receipt in the name of Jabez May for £3 2s was entered up in (he name of Haiti is. Another in the same name for £i 3s was entered up for 13s. A third in the same name for £1 Is was entered up to one. Warden, for 6d. It was impossible to find out the total defalcations. but lie had discovered to date £4O. To Mr Bussell. —Restitution 1o (lie extent o£ £SO had been made since proceedings were taken. He had one or two interviews with the accused and lie did not appear to realise the position he was in. Only one defalcation had been discovered when accused was dismissed and acused knew that witness was overhauling his hooks. The system of bookkeeping was satisfactory in every respect except one, and that was that there was no record other than that kept by Gambling of coke being delivered. Before he found tho defalcations he had suggested a remedy. The system of hook-keeping then in vogue made this matter easier than it would be hereafter.

To Detective-Sergeant Cameron: In respect of cash sales the system was to make nut a receipt in duplicate on counterfoil. The customer took tho receipt to the man in charge of the coke. Under certain circumstances the telephone teas used. The svsteni followed hy accused was to turn the carbon paper face upwards leaving tho counterfoil hare and open for accused to make any carbon copy lie liked Accused, when called upon to plead, withdrew his plea of not guilty. He was committed for sentence to the Supreme Court at Dunedin, t< > tic brought no at ttie earliest opportunity. FALSE EXTBIES. Fight charges were preferred against George Frederick Lyons, recently employed in the tramway department. The charges in effect were as follow: That on or about November 20, 1913. he did make a false entry in certain hooks regarding a stun of money received from Thomson and Co.; (2) that on or about August 23. 1913. he did make a false entry concerning a sum of money received from Myers and Co.; (3) that on or about June 20. 1913, ho did make a false entry concerning money received from F. V. Bos«; (I) that on or about August 19. 1913. he did make a false entry regarding money received from Brice and Bullied; (5> that, on or about February 19. 191-1, he did make a false entry respecting money receiver! from l-’rice and Bullied; (6) that on June 19. 191 I, he did make a false entry regarding money received from Price and Bullied: (7) that on or about May 5. 1913. he did receive from Price and Bullied the sum of £1 10s, and did fail to account -for same: and (8) that on or about October 2. 1913, lie did receive from F. V. Boss the sum of 17s -id and did fail to account for same. Detective Sergeant. Cameron .iriseeoted, and Mr Eustace Bussell appeared for accused. The cases in which accused wa,s charged with making false entries were dealt with first. Lyons was also charged with sti dt’.g £9 the property of the Mayor, i •m----cillors and burgesses of I n verea rg' i; Detective Sergeant Cameron asked that Ihe charge he withdrawn. Lyons was then charged with mailing a false entry in the books of the tramway department. Ills Worship asked whether accused was familiar with all tho charges. Mr Bussell, said that ho had scon copies.

His Worship said that there was no reason to read them all. Ellis J. Foster, tramway engineer and manager to the Invercargill Corporation. was the first witness. He knew accused, who was employed in the tramway offices and attended to the advertising department. He also ret/tved money for any material disposed of hv the department. The books produced were under his charge and the receip’s produced were signed by accused. He first took charge of tho adverf.siag section about the beginning of 1913. Witness had known accused off and on since 1912. Since December. 1913, witness had been manager and as an officer accused gave very satisfactory service indeed, with the exception of the matters with which he was charged. When found out accused made no effort to screen himself, hut he frankly admitted them when charged by the audit inspector. On the Friday night accused spoke to witness in the presence of the audit inspector asking whether any further information was wanted of him. Mr Thomson said that he had no instructions regarding further proceedings. Accused then said: "Well. I think I'll go to Tima.ru." He made no attempt to hide himself.

Thomas Haxling, an employee of Thomson and Co., said that his Arm had advertised in the trams for some considerable time. On November 15 a cheque for £l2 was drawn in payment for advertising on the tram tickets. Ho made the payment and produced the receipt. The cheque was paid into the bank on the first or second day of December. Henry Myers, said that he was a member of the firm of Myers Bros. On August 23. 1013, he bought some copper wire from the tramway department, valued at £4 6s Bd, and he paid for It the same da.y as he took it away. He paid by cheque. Ho received the receipt produced from the accused. Francis V. Boss, dealer, said that on 1 June I t, he paid £5 IGs to the tramway department. He did not know the clerk In the office to whom he paid the money. He received the receipt produced. Henry Theodore Thomson, Government Audit Inspector, said that he knew the accused. He had made enquiries and found that while the receipt given to Thomson and Co. was for £l2, the amount entered on the counterfoil was £3. and that amount was entered in ,the cash book. In respect of receipt No. 434 the receipt was for £5 16s. while on the counterfoil it was shown as £2 6s 3d. In the case of Henry Myers the original was for £4 Gs Sd, while the counterfoil showed £2 6s Sd, Ihe latter amount being entered in the caslt book. There was another receipt to Price and Bullied. The original was for £9 ss, and the counterfoil was for £3. There was another receipt for £3 3s and the counterfoil showed £2 Os 6d. The receipt book and cash book on June 19 showed a receipt for ISs, whereas the cheque paid in was for £3 7s 6d. He had been unable to find the total of the defalcations in this case, but he found up to £27. To Mr Russell; The whole of the defalcations took place in respect of advertising or miscellaneous sales. His investigations had gone slightly beyond the date on which accused took charge of the advertising and miscellaneous departments. Accused handled about £15,000 per annum, and witness understood ttiat his salary was £IBO. He had suggested alterations in system which had been adopted. The position with regard to advertising had been dangerous.

Evidence referring to the rase of Price and Bullied and corroborating that of the auditor was given by Thomas Andrew Wallace. Accused pleaded guilty, and was committed to the Supreme Court at Dunedin for sentence at the earliest possible moment. FAILING TO ACCOUNT. Lyons was then charged with failing to account to the Mayor, councillors and burgesses for the sum of £i 10s paid to him by the firm of Price and Bullied. Thomas Andrew Wallace, accountant to tho firm mentioned, said that on May 5 £i 10s was paid by cheque to the tramway department. It was handed to the accused and witness received a receipt for that amount. E. .1. Foster, tramway engineer and manager, gave evidence that the writing on the receipt was that of Lyons. He had been unable to find a receipt book to correspond with the number on the receipt. H. T. Thomson, auditor inspector, stated that lie had been unable to trace 'lie receipt through the books and there was no entry in the cash book. Accused pleaded guilty and was committed to ihe Supremo Court at Dunedin for sentence. A FURTHER CHARGE. Lyons was further charged with that on or about October 2. 191 :>. he did receive the sum of 17s 4d from Francis Vernon Ross, and that he did fail to account for same. Mr Russell said that this was a matter which they desired his Worship to deal with summarily. The Magistrate; Well, I decline to deal with it now. It is unfair to an accused person going tip on several charges to have a conviction entered against him. Detective Sergeant Cameron said that he was not asking that a conviction be entered, but lie simply wanted the evidence taken. Evidence on this charge was given by F. V. Boss, E. J. Foster and 11. T. Thomson, to show that the amount mentioned was paid. but. not accounted for. Accused pleaded guilty and was committed in conjunction with the other charges to the Supreme Court for sentence.