ALLENDER CASE.

Star (Christchurch), Issue 12070, 27 July 1917, Page 6

ALLENDER CASE.

CONVICTIONS FOR FAILURE TO ACCOUNT. AN INTERESTING CASE. SENTENCE POSTPONED. William Warnock Allender, land agent, of Christchurch, appeared at the Magistrate's Court to-day, before Mr "Wyvern "Wilson, S.M., on two charges of failing to account for moneys received. After a long heaving ho was convicted on the first charge, and then forsMlly pleaded guilty to the second.

Tha accused was first charged with failing to account- to T. I*. Flans for #6 ldi 8d receivo'l from Frank Cother or February 9. In this case tho polico said that they were not going on. as it was a private information. Mr Flans, who was present, declined to withdraw the charge, but offered no evidence, and the charge therefore lapsed. Allender was then charged that between March 9 and June 11, he had received £1.6 6s 8d from Reginald Clifford Bart ram on terms requiring him to account for it to T. L. Flaus, and had fraudulently failed to do so. Mr Cuningham entered a plea of not guilty, and elected to have the case heard summarily. Mr Bartram gave evidence that he took the house from Allender, and had paid the rent to him. He knew that Flaus was the owner of the house. J. S. Middlcton gave evidence that Bartarm's cheques, produced, were paid into Allender's trust, account. Detective M'llveney asked the witness the state of Allender's account, but Mr Cuningham objected to the question, stating that ho did not mind a question regarding the account at a given date. The Magistrate remarked that he did not think the question irrelevant. Iho accused was called upon to account lor certain moneys, and if ho drew them out the fact might be ascertained. To get over the difficulty Detective M'llveney submitted two of Allender's cheques handed to Flaus, and the witness said that tho bank had not paid them. T. L. Flaus gave evidence that he: owned 'the house of which Mr Bartram was tenant. Wilson and Allender were agents, and had collected the rent for about two years. H c did not remember anv definite arrangement about, Bartram. although he had accepted him as a Itenant. The understanding was that all the moneys were to bo handed to him. Ho had called on Allender for the rent, and was told that he had no clerk, and his statements wcro not madeup. On tho second call ho was told tho samo 'thing, and tho third time Allender told him that his books wcro in the hands of a solicitor, who would mako out the statement. A day or two later he received two cheques, which were dishonoured.

To Mr Cuningham: lip was a. builder and architect, not a land agent. .Ho had originally authorised "Wilson to collect. Al lender found the tenant and earned £1 lor letting. Tho question of repairs had cropped up. but ho had not dealt with Allender 'about it, as tho tenant came dirrct to him. He liad trio original information. Ho had called for his rent, and had become naturally annoyed -when ho did not get it. Ho Mvore tho first information for £5 16s Bd, which w;is not now being proceeded with for lack of evidence. Ho did not wish to press the charges, and had no ill-feeling against Allender. Ho had not gone to tho police because he Mas annoyed. He had called on Mr Cuningham at Mr Cuningham's request, but he denied agreeing to withdraw tho case.

To Detective MTlveney: Mr Cuningham asked him to come round, and when he arrived Mr Cuningham asked him to withdraw the case, saying that it was punishing Allender s mother and wife. Ho then said that it'ho caso was in tho hands of tho police. ]\x further cross-examination the witness admitted that certain commissions should»como off tho : total claim of £'2(>.

For the defence, Mr Cuninghnm said that Allender admitted owing the money, hut Mr Flaiis's remedy lay in the Civil Court, not in a criini.uaf action. Kvery penny received from Flans had been properly entered in the books. Jll reply to the Magistrate. Mr Cuningham said that he would produce the trust account ledger and the bank account. He added that Allender was protected by the proviso of Section 214 of the Act of IUI2 which provided that the proper entry of jtcnifi in the books would meet such cases.

Iho .Magistrate said that he did not think this applied to a land agent, who was obliged to keep his own money apart lrom. his clients' money. Mr Cuningham submitted that this related only to moneys for land and not moneys for rent. A man could collect rent without being a laud agent. The Magistrate conceded the point, but- asked whether it did not show fraudulent intent if a man paid rent into a trust account and afterwards converted it.

.Mr Cuningham said that when the cheques were drawn A (lender's account was m credit, ,-ncl j„ another week iUaus wouJd have been paid. Allender. in the. witness-box said that ho was .••. registered land agent, two years in business on his own account. He was previously in partnership with Ah- Wilson, wlio died suddenly. The original arrangement with Mr I'laus was made by the firm of Wilson and Allender. J-l e produced his rent book. His arrangement with Klaus was to collect the rent on the usual conditions, keeping a debtor and creditor account. His books showed that on 3larch 12 he received £3 6s 8d on £ pi ci 14 ,. £ Mis ScL aml on J »™ IS £4 bs bd. Mv Mans used to call and "fit his cheques. He made up the statement for the. cheques given to Flaus in tlio usual way. and drew the cheques but he did not call. His bank passbook (produced) .showed' that on February S. when the first cheque was drawn, his account was £'ll3 in credit, and on March 10, when the second cheque was drawn, £ls. Oet'c-ctivo M'llveney said that these two cheques bore on another charge, and ho had produced them to provo that The account was empty. Allender, continuing, said that Flaus called later for the- cheques, and they Were then dishonoured. If given a little time h c would have been able- to honour them.

To Detective M'llveney: Ho was now bankrupt. Ho had not posited two cheques on July 6 to Flans. He had received the sum of £l6 6s Bd, and had not paid it over. Ho had not used the money himself.

To the Magistrate: All his monoys went into the trust account. Alexander Lowry, accountant to the firm of ?. L. Davies and Co., said that he had gone through the books, and tound a well-kept debit and credit account.

Tho Magistrate, in giving his decision, said that there Mas no defiuito evideuco as to what tho terms of tho contract between the parities really were, hut tho circumstances showed tho implied terms. Theso \xcyq> that the moneys were to bo treated as It'rust moneys, and placed in tho trust account. This was done. There -was no obligation on tho part of the firm to do so, and it therefore seemed thajb there was something more than a personal liability. Tho accused sought to cover the misappropriation under section 242 of the Crimes Act, but the fadt that there seemed to bo something more than personal liability looked for removed trXS case outside tho proviso. Tket defendant would be convicted.

Mr Cuningham said that Allendcr was married with one child. Ho had 4WW &aen before * ?ourt before* Ho

Was now ruined through tho action. It was not an ordinay case, :md many another man in tho same position had struggled through. There was nothing in tho shape of deceit or false entry in the hooks. There was merely a shortage at the hank, which a week or two might have put right. In reply to the Magistrate Mr Cuningham said that tho deficiency in the estate was about £.'300, but Allender hoped to pay 10s in the £. John Langford gave evidence that ho had known Allender for some years and had always found him honest and trustworthy. Tho Magistrate remarked that it was not a bad bankruptcy, but if there wove other accounts in the .same stato it was likely that Allender would bo before the Court again for breaches of the Bankruptcy Act, although the hooks had been carefully kept. It would affect his judgment if he knew that peoplo were not going to loso money- Sentence would be postponed until August 8, at 10.30 a.m., accused being released on his own recognisance of £SO. Allender then pleaded, guilty to the second charge of failing to account to T. L. Flaiiß for £lO 3s 4d received from Frank Cother. Sout«jj.ce was deferred.