SUPREME COURT

Dominion, Volume 8, Issue 2472, 27 May 1915, Page 9

SUPREME COURT

, A BUILDING SOCIETY'S FUNDS SECRETARY SUED Tho civil sessions of the Supreme Court wore resumed yesterday before His Honour the Chief Justice (Sir Robert Stout), when a case of considerable interest to members of several building societies in Wellington was heard. Tho plaintiff in the action was the Colonial Co-operative Building Society of Wellington, a duly incorporated building society having its chief office in Victoria Street, Wellington. The defendant was John Crewes, secretary, of Wellington. Mr. R. Kennedy appeared for the society, while Sir. A. W. Blair appeared for John Crewos. In tho statement of claim, it was set - out that John Crewes had been secretary of the Colonial Co-operative Building Society continuously from the incorporation of'the society until June 80. 1911, but he no longer holds any office in the society. - At various times during that period various sums of money had been received by Crowes for the society upon terms requiring him to account for and pay over such moneys to the society. Of these moneys, Crewes had not accounted for or paid over to the society sums amounting to at least ,£9ll. The sums of money alleged to have been received by Crewes and not | accounted for were as undtr: ii2sß 155., which had been entered in the pass books , .of members, but which had not been entered by .defendant' in the ledgers or cash books; gums amounting t/> .£457 17s. more than he had accounted for or handed over to the society; .£6O Bs. from T. W. Fisher, which had not been accounted for; .£67 is. from C. W. Tringham, solicitor, Wellington. on behalf of A. -M. Burns, of Lower Hutt; .£36 16s. from John Odhn and Co., Ltd., Wellington. It was alleged that Crewes had wrongly converted these moneys to his own vse, or misapplied, or withheld them from the society. Frequent demands had been made verbally and in writing by the society, by the board of directors, and others to Crewes to .hand over the moneys or give information concerning them to the society, but Crewes had not complied with these demands. The society therefore claimed the sum of .£9ll as moneys du* or in the alternative as damages.. - ■ In his statement of defence, Crewes admitted acting continuously as secretary of the society from the time of its incorporation until three years ago, when, owing to his indifferent health and weight of years, the active w;rk of secretary of the society was undertaken by his son. The change, he said, was made with the knowledge and consent of the society. The defendant (Crewes) ccntinued as nominal secretary of the society until June, 1914, but with the consent and concurrence of the society tho actual receipt and care of moneys bek nging to tho society was vested in the defendant's son. Defendant (Crewes) denied that he had ® failed to account for any sums of money received by him, or that he converted any to his own use. As to Mr. Tringham's cheque, he said that it was banked to the credit of the socbty immediately upon receipt. He said that, while he was secretary of tho society, all moneys wero n banked within a few days of their receipt, and the bank deposits were always carefully ohecked with tho receipts. After he ceased to actively perform the - duties of secretary, however, the bank book was not checked, and for a long period no proper check was made upon the acting-secretary of tho society. _ The result .was that for a long period it became possible for the acting-secretary to retain in hand or fail to bank moneys belonging to the society. Defendant (Crewes) had with the knowledge and consent of the plaintiff society undertaken the work of secretary of other societies, and, until tho taking of accounts between the various societies it would not be possible to definitely ascertain tho esaol amount cf tli6 frhorkgo (if any)' in tie plaintiff society. The acting-secre-tary, owing mainly to the failure of the directors to maintain the system of qhecking and to have a proper audit made, had become involved in his accounts and the accounts of tho various societies were raised. The result was an apparent shortage in the funds of. some ot the societies, and an apparent surplus in others. Defendant (Crewes) wa6 ready and willing to the extent of his means to make good any shortage, which might be found to be ultimately due by him to the society, and the whole of his property and assets could be realised and disposed of for that purpose. . Mr. Kennedy, in his opening, explained that the defendant's chief assistant in tfh© affairs of the society was his ?on (Fred. Crewes). Counsel proposed to call evidence to show that there was distinct evidence of manipulation of the books. . Evidence in support of the plaintiff's case had not concluded at 5 p.m., and the further hearing was adjourned until 9.30 a.m. to-day. JUDGMENT RESERVED. Legal argument was heard by tie Ohief Justice vesterday morning in tie case of Elizabeth Mary Joseph Brogan v. the Public Tmstee. The case was tried a) Wellington last week before His Houotit and a common jury of twelve. A verdiet was returned that the lato William Moriarty (of whose will the Public Trustee was executor) was indebted to the the plaintiff (Miss Brogan) in the sum oi JtOOO which sum ho had held for invest- • ment. Mr. T. E. Maunsell, of Carterton, who appeared for the Publio Trustee, or"Tied that ho was entitled to a nonsuif on the ground that the claim was statute barred. Mr. Holliiyg, of Masterton. contended that the debt had been revived, and that in any case the olaim, being against a trustee, was not statute barred, "judgment was reserved.