DEFALCATIONS OF CLERK

Southland Times, Issue 23307, 17 September 1937, Page 8

DEFALCATIONS OF CLERK

INSURANCE SYSTEM BLAMED CANVASSERS DIVIDED INTO TEAMS (Unite-Press Association) WELLINGTON, September 16. A system of what counsel termed “American boosting,” under which collectors of insurance premiums work, was blamed in the Supreme Court for the defalcations of a clerk. The prisoner was Thomas Joseph Kane, aged 28 years, who pleaded guilty in the Magistrate’s Court to twelve charges of obtaining execution of a valuable security and one of theft. Mr Justice Smith said he was not disposed to blame the system, but rather the prisoner’s mode of living. He sentenced him to two years’ reformative detention. The amount involved was £399.

Counsel said prisoner had been in a very difficult situation in view of the system under which he and others were compelled to work. When a man became an insurance canvasser he was placed under a superintendent who had charge of eight or ten men and the superintendent was under a brigade manager. The canvasser sold industrial insurance, but did not receive wages. He was allowed to keep the first twelve premiums received. After they had been in force for six months the superintendent received a commission and after nine months the brigade manager got a commission. All sorts of boosts or “rallies were tried, said counsel. At present canvassers were divided into teams of “Springboks” and “All Blacks” working on a competitive basis. A man’s commission was not paid to him, but was retained by him out of the money he collected. After these high pressure schemes had been in force some weeks persons might become behind in the premiums and the agents might pay several weeks’ premiums to keep the policies alive. That money went out of their own pockets. Driven along by that system prisoner became about £lB short and made his first false step to keep even. Then he entered the hands of moneylenders and finally started gambling with bookmakers.