STAMP FRAUDS.

Star (Christchurch), Issue 6382, 30 October 1888, Page 3

STAMP FRAUDS.

« A DEFICIENCY OP .£26,000. " ARREST OP A VICTORIAN OFFICIAL, j [from our own correspondent.] (Per b.b. Eotoniahana via. the Bluff.) MELBOURNE, Oct. 23. The inquiries which have been carried on for some time into the working of certain branches of the Registrar-General's Department, resulted in the arrest yester- j day morning of Thomus Francis Butler; an ! officer holding a high and responsible position in the Department, upon a charge, which, if proved, will render him liable to I a sentence of fifteen years' imprisonment. It is alleged that stamps to the value o£ j ■£100 had been fraudulently removed from j certain documents. The amount stated in ■ the warrant is comparatively small, but it affords uo indication of the losses which the Department has suffered through a system of fraud, which has been carried on for years by some person or persons. The total amount of the deficiency, so far as can at present be ascertained, is stated on reliable authority to amount to .£26,000. It appears that for a considerable time there have been complaints made as to irregularities in connection with the issue of licenses to Fire and Marine Insurance Companies. Under the provisions of the Stamp Duties Act, any Company, person, or firm of persons who carry on in Victoria any fire, fidelity guarantee, or marine insurance business, are required to take out an annual license. These feeß amount to a very large sum annually. There are about fifty Companies, and the lowest amount payable by any is £50 j whilst some pay as much as £750. The fees should be paid on Jan. 31 each year, under a penalty of ,£SO, and the license should Issue forthwith; but the affairs of the office have fallen into such a state of disorganisation that, in many instances, the license has only been obtained after months of waiting and many enquiries, whilst, in many other cases they have not been issued at all. Owing to the illness of Mr E. Gibbs, Registrar of Titles, the duty of issuing licenses had fallen altogether into the hands of Mr Butler, who is the officer in charge of the Registry of Companies' Deeds and Instruments in the. Department. About the middle of the present year the condition of affairs became apparent. Complaint was made by the Manager of a Company that he could not get his license, although he had paid the fee for it, £138. Butler made excuses for not producing it, enquiry was made, and it was ascertained that a number of Companies had never obtained their licenses, although they had paid the fee. A Board was then, appointed, and examined a number of witnesses, with the result that Butler was arrested, and charged with having, on Sept. 22, ? 1887, feloniously, knowingly, and without lawful excuse, in his possession certain stamps, to wit, eight, which had been theretofore fraudulently removed from certain material with intent to defraud. Accused, when arrested, was lodged in the City Watchhouse. At half-past four o'clock he was brought before Mr Coll, P.M., and admitted to bail on two sureties of £500 each, and his own of £1000. Messrs James Sarnett and Robert Shackle were the bondsmen. Butler, who is unmarried, is fortythree years of age, and has been connected with the public service for twenty-four years. On June 26, 1862, he was appointed Clerk of the Papers in the Legislative Assembly during the absence on leave of the permanent officer. The appointment excited a good deal of comment at the time, as Butler was regarded as a very young man to hold such an important and lucrative position. His present salary is £466 13s id per annum. He has always been looked upon as an intelligent and [ trustworthy officer, and the. news of his ! arrest occasioned great surprise.