LAW REPORTS.

Dominion, Volume 7, Issue 1987, 18 February 1914, Page 5

LAW REPORTS.

SyPREME COURT. SOLICITOR'S STRANGE MUDDLE. CILLESPIE CASE. " OVERWEIGHTED BY HIS BUSINESS. Muddlement in book-keeping and business method, leading to the conversion of trust funds to objects other than those which wore- their proper objects, was the cause of the appearance in the dock at the Supreme Court, yesterday of Oliver Noel Gillespie, a young solicitor who had practised at Fielding. The additional evidence tendered was in the direction of indicating that the case was no ordinary one of theft, inasmuch as moneys had not' been used by tho prisoner, and he had not been living beyond his means. Mr. Harold Cooper, who appeared for the prisoner, stated that, eince the case had been before the Court two months previously, investigations had ' been made by the bankrupt, assisted bythe firm of Clark and Menzies, and he (counsel) wished to call Mr. Clark to detail to the Court -what the result of this investigatioa had been. The Overhaul of the Sooks. Arthur Thomas Clark, accountant, and member of the firm of Clark and Menzies, stated Gillespie had not used the trust moneys in his possession for his own purposes, but he had lent money to various people, and sometimes on insufficient security. Of these debts about £1625 appeared to be absolutely bad. The books were certainly in a state of muddle,' but witness had (with tho assistance of the prisoner) been able to trace'every payment. The drawings by accused for his own personal expenditure did not exceed what he might reasonably have expected would'have.been the profits of the business. Gillespie had not actually spent: more than.he was earning. The'trust business of the firm was very large. Something between half a million aud three-quarters of a million passed through it'in a year. If all the debts which were due to Gillespie were realised there wouldi-be.a considerable surplus over the amount required to repay all creditors in full. Even now if the : estate were nursed and advantageously realised there would be enough monev to pay to' the creditors a very considerable dividend. As things stood, ho would not liko to say that it would pay the creditors 20s. in tho pound, but id would be anything over los. Mr. Cooper then addressed His Honour. He pointed out that Gillespie bad returned to New. Zealand from a place where he was practically safe from pur-, suit. He had done so of his own free I" will, and-had gone, back to Fielding'to face his creditors, and to do -his best for them. The books, 'it was admitted, were in a hboeless ■ state of muddle, ■'and. had been so for years—nobody, could have understood the .position! from them. This state of things, .he' would suggest, had' iiijseii. because the business was too big: for ■one'man to-handle. On account of the prisoner's comparatively youthful aee, 30 yearsj his conduct since the trouble, and his previous good , character, ho nslced His Honour to deal leniently with the. prisoner. ■'■'•''■"■ The Case Unique. ";. His , ; that waJ a iiniquo one. 'Prisoner lia'diiiot himself benefited by tho mods in which he-had dealt with the trust funds of other people.- 'The whole- business seem-ed-to have been-beyondhis; management. At the same time wisoner miist have known that he> had no right to take trust moneys pxceot for the purpose for which ho held them. Ho would lose no more by his lapse than other persons convicted of dishonesty,(because he would be suspended from the practice of his profession. Up, (His Honnii.r proposed, to impose what he considered a j light sentence, but ihe could nol'.make it a merely ■nominal penalty.- ■ Gillespie was then' sentenced to imprisonment for two years with hard i labour. . THE WINNINC TICKET. HOW THE WRONG MAN GOT IT. ■ Regitial Stanlov-Herbert, a youth in his 'early twenties, had pleaded guilty ■to''a-'charge of having unlawfully re.tained possession of a postal packet. The facts, it appeared, ,were that the .accused had at Woodvillo received a letter'from Tattorsalls, addressed to R. A.. Herbert. The ticket which tho lct.ter .contained happenod to be a winning '.ticket,; and he"/remitted it to Taltersalls.. Unfortunately for him, however, 'Tattersnlls sent the money to the rightful owner of the ticket, R. A. Herbert. Mr; T. -M. Wilford appeared for tho prisoner. ■ ■ ■ . ■ . His Honour said that he would order tho accused to come tip for sentenco when called -upon. "You seem to have thought," ho said, "that beca'nse Tattersails' Tickets were- illegal you could deal with them as if there wero no law. It seems to mo strange that young girls are encouraged to gamble. This ticket belonged to a young eirl, with her father's consent." I don't know what tho country is coming to if this sort of thing is-allowed to go on _ amongst cur settlers. .At the same time, you are not the avenger- of the law."