SECRETARY’S LAPSE

Te Aroha News, Volume XLI, Issue 6410, 3 November 1923, Page 5

SECRETARY’S LAPSE

PATRIOTIC FUNDS MISAPPROPRIATED Norman Gibbs, late secretary of the Thames Harbor Board, who pleaded guilty at a former sitting of the Magistrate’s Court at Thames, to misappropriating various sums of money, the property of the Thames Harbor Board, was further charged before Messrs H. Lowe and Walton, Js.P., on Tuesday, that on or about December 15th., 1921, as secretary of the Thames Patriotic League, he did steal the sum of £lO, the property of the said League; (2) that on or about December 15th, 1921, he did commit forgery by making an addition to a cheque for £9 by altering the same to £l9; (3) that on or about December 15th, 1921, he did fraudulently omit to account for the sum of £3 received by him from W. T. Penk, and thereby did commit theft; (4) that about August 13th, 1921, he did steal the sum of £4 0s lOd; (5) that on or about October 30th, 1921, he did steal the sum of £44 12s 6d; (6) that on or about November 12th, 1922, he did fraudulently omit to account for or pay the sum of £ls, being proceeds of a cheque received by him from the War Relief Association, Wellington, thereby committing theft; (7) that on or about January 31st, 1923, he did fraudulently omit to account for or pay the sum of £4 10s 6d, being the proceeds of a cheque received by him from the Gisborne Defence Fund Committee; and (8) that on or about May 7th, 1923, he did steal the sum of £llO 14s Bd, the property of the Thames Patriotic League. The total amount unaccounted for is £l9l 18s 6d. I Mr Garland represented the accused.

Detective Culloty appeared for the police, and asked that all the charges be taken together. He explained that the accused was secretary to the League for some- three years. No cash book or minute books were kept. As regards the second charge accused obtained the signature to a cheque for £9, and afterwards altered it to £l9 and cashed the cheque, retaining £lO of the proceeds* Penk also handed back £3 towards the League’s funds, but accused kept the afnount. On charge number (8) he explained that a blank cheque was signed by! the other signatory, accused explaining that he required to close the post office account. The whole of the amount was converted to accused’s own use.

Ernest Napier Miller, barrister and solicitor, of Thames, stated that he was chairman of the Thames Patriotic League. .Accused was secretary and treasurer to the League for about three years. His duties were to keep the accounts, and pay out the funds as required. He was also to sign cheques in conjunction with a member of the committee. He had no authority to take the funds for his own use. As far as witness knew, no money had been refunded to the League.

C. G. Collins, Government auditor, gave evidence as to examining the accounts of the League. He described the defalcations in detail. The accused admitted all the defalcations. Some of the money had been paid into the Harbor Board’s funds.

John Wilfred Danby deposed that he was appointed to sign cheques together with the accused. The cheque drawn for £l9 was for £9 when he signed it. Regarding cheque for £llO 14s Bd, witness stated he signed this cheque before it was filled in on the understanding from accused that the balance of the No. 2 account of the League, which was at the post office, was to be withdrawn and remitted by rail that afternoon to the Minister of Internal Affairs. He knew that the accused had authority to remit such money to Wellington by the local committee. Witness also signed the withdrawal slip enabling accused to withdraw from the post office to remit to Wellington. Witness signed cheque before it was filled in for any specific amount as the amount of interest received on the account could not be known until accused called to withdraw same at the post office. Never on any occasion before had witness signed blank cheques except this particular one in question. Before cheques were signed by witness he always required statement fo the claim in which the cheques were needed for payment. The claims for relief were invariably initialled by the chairman. The accused had no authority to convert any part of this cheque to his own use.

Thomas William Penk, salesman in the employ of F. H. Claxton, Thames, stated he was a returned soldier. In December, 1921, he was a patient in the Whangarei Public Hospital. He received assistance from the Thames Patriotic League. He received a money order from the secretary of

the Whangarei Patriotic League for £9, which had been forwarded by accused. Later he returned to Thames. He called at accused’s office and refunded £3 out of the £9 to be paid into the funds. He gave accused no authority to convert it to his own use. Ernest Cannons, accountant of the War Relief Association at Wellington, stated that on November 3rd, 1923, a cheque for £ls was posted to accused to reimburse the Thames Patriotic League for assistance rendered. In acknowledgement of this a receipt was returned. It was one of his official receipts. The Asociation’s account in Wellington was duly debited with the cheque. William Morton, chief clerk of the Bank of New Zealand, Thames, stated the Patriotic League had an account at that Bank. The cheques produced were paid into the Harbor Board’s account and another was cashed at the counter. Detective Culloty gave evidence regarding interviewing accused on the charges and obtaining a statement signed by accused who admitted all charges. The accused pleaded guilty to all charges and was formally committed to the Supreme Court at Auckland for sentence, bail being allowed as before.