ALLEGED THEFT

Wanganui Chronicle, Volume 80, Issue 252, 23 October 1937, Page 10

ALLEGED THEFT

Insurance Manager Charged EVIDENCE CONCERNING LOANS I Per Press Association. ] PALMERSTON N., Oct. 22. Charges of theft of money 12550 over a period of nearly four years were preferred against Godfrey Haise, aged 46, company manager, at the Magistrate’s Court, the details being: Theft of £lOO from Arthur Shelton in July, 1936; £lOO from Shelton in the same month; £3OO from Henry George Tucker in November, 1933; £l3OO from Mrs Ellie Hamilton in October, 1935; £lOO from Mrs Hamilton in January, 1936; £3OO from Grace Berry in May, 1935; £350 from Clement Lawson in May, 1934.

Evidence was given by Shelton, retired civil servant, that he was a close friend of accused, who at that time was manager of the A.M.P. Society at Palmerston North. In June, 1936, witness received through the society a cheque for £5OO. Accused told witness that he was a client of the society and applied for a loan, but the security offered was not of such a nature as the society handled. Accused said that the security was the surrender value of a life insurance policy, also a lien on stock on his client’s farm. Accused assured witness that there was ample coverage for a loan of £lOOO and undertook personally to verify the securities. Accused said later that there was risk in the investment. Witness handed over £lOO and suggested taking charge of the securities, but accused said that the matter was confidential and the securities were held in the society’s strongroom. A fortnight later accused advised witness to place another £lOO under similar conditions. Witness agreed. Three lots of interest were paid to witness, who knew that the money was not being handed over to the society but to accused, under the impression that the latter in the capacity of manager was expected to accommodate the society’s client.

Henry George Tucker, manager cf the Club Hotel, gave evidence that lie had known accused for some years. Accused asked him if he possessed any money to invest in advances on short-dated loans on insurance policies. The outcome was that witness advanced £2OO. He was later repaid with Interest. Subsequently he lent £3OO, witness saying that the name of his client was confidential. Accused held securities in the strongroom at the society’s ofiice. Witness declined three further suggestions of investment. Witness said that he had received interest payments. He had undoubted confidence in his integrity.

Mrs. E. S. Hamilton, widow, said her late husband had been employed by the Palmerston North branch of the A.M.P. Society. On his death she received £I2OO from insurance policies. One day accused came to her with three commission cheques due to her late husband, amounting to about £7O. He asked her what she was going to do with the money, adding that he could make it earn money for her. He said he would use it in the society’s business—to finance those business people who had orders for goods coming forward and were unable to meet them. Accused informed her that he had acted similarly with money belonging to his mother-in-law and could do it for her also as her husband had been an employee of the society. She withdrew £I3OO from the Savings Bank and handed it to Haise, who also had been given the commission moneys to invest for her. No portion of the £I4OO had been paid back to her. The New Zealand manager for the A.M.P. Society, Walter T. Ikin, said that accused had been manager of the Palmerston North branch for some years until July 22, 1937, having joined the society on July 8, 1907. His salary and allowance totalled £770 a year. Witness interviewed him in July concerning his financial position, which was disclosed after a long discussion to be pretty hopeless. Haise supplied a typed statement showing a list of liabilities of £6375. For his board witness later made out a statement of accused’s assets and liabilities as he knew them. In the light of further information this showed a total liability approximating £8914 15s. Of the loans Haise was supposed to have made the society had no list of any sort except the list supplied by Haise. There were no securities in the safe at Palmerston North or elsewhere. The society did not assist clients to obtain finance in the manner described in the Court that day. The loans were purely personal transactions by Haise. The society would not sanction such dealings as had been exposed. Grace Berry, matron of the Pahiatua Public Hospital, said that in 1935 an endowment policy matured. She called to see Haise in June of that year. The amount of the endowment was £316 and Haise said; “Ve can invest this money for you.” He said that 7 per cent, interest would be paid and that this was a liberal rate of interest. The £3OO she left with Haise. She presumed it was to be invested with the society. She did not know Haise personally and presumed that he was acting for the society. She had not had any advice since as to where the £3OO was nor had she made any demands on him for it. No interest had been paid. Money From Matured Polley. Clement S. Lawson, sales manager, who had a policy mature in May’ 1934, said that Haise asked him what he intended doing with the money. Certain investments were discussed and Haise said the society handled locally a branch of investment for the temporary accommodation of reputable business firms. He said he could place the money in this direction at 6 per cent. After cashing the cheque witness left with the society £7OO on which he regularly received interest. He had drawn sums from the principal, leaving £350 with interest owing him. Where the money was he had no idea, but he remembered Haise saying on one occasion that the money was invested in a firm “not 100 yards from my office." He believed the money to be invested with the society and not with Haise personally. Mr. Oram: At any time you made

an application to Haise tor payment of principal or interest you never failed to receive your money? Lawson: That is so. Mr. Meiklejohn: Why not make application now, Mr. Lawson? Detective Power said that he interviewed accused at Wellington regarding moneys advanced to him for investment, asking what was the position regarding these moneys. Haise replied that having placed his matters in the hands of a solicitor he did not think he could say anything about it. Detective-Sergeant McLennan, who was present, said: “Have you got the money of these people?” “Well not at present,” accused replied. Asked what he had done with the money, accused considered the position for some time and then said: “I am sorry, sergeant, but I have nothing to say.” Witness pointed out to accused that it was his opportunity to say something and that a spontaneous statement would be more readily received than a belated one. Accused, however, did not wish to say anything. He was later arrested on a warrant and brought to Palmerston North. Accused, who pleaded not guilty, reserved his defence for the upper Court, being committed for trial to the Supreme Court in February, 1938.1 Bail was fixed at a personal bond of £250 with two sureties of £250. The Bench said the bail must be substantial in view of-the amount involved in the charges and suggested that accused report to the police twice weekly.