BETTING CASES

Dominion, Volume 10, Issue 3183, 6 September 1917, Page 6

BETTING CASES

RAILWAY OFFICIALS IMPLICATED

' ALLEGED CONSPIRACY

Yesterday afternoon, Mr. S. E. M'Carfhy,. S.JL, heard tho betting cases in regard to whijh. considerable interest was evinced.

The defendants were Frederick Campbell Fraser, David Hodges, John Edwaid Fitzgerald, and John M'Wiliiams, who were charged that on July 17, with intent to defraud by false pretence, they did attempt to obtain from Henry 3J.artin.dale and others tho sum of J8975 in money; also with conspiring together, and with other persons unknown by fraudulent means, to wit by false telegrams, to defraud Henry Ma'rtindaie, William Ryan, Robert Law, Arthur Law. David ltoss, and William Whelan of divers sums of money. Mr. P. S. K. Macassey, of the Crown Law Office, prosecuted, and Mr. T. Neave represented Fraser, Mr. T. Wilfonl npp<>ar«d for Hodges, Mr. A. Gray, K.C., for J. B. Fitzgerald, and Mr. H. F. O'Leary for Jl" Williams. \ Mr. lliicassey, in opening the case, said that tho facts to be presented would establish a carefully-planned scheme for the purposo ol! defrauding certain people by means of false telegrams put in after a race had been run. A race meeting was held at Trentham in July—a three days' meeting. Hodges arranged the matter of a telephone message from Trentham to be sent to Fraser, who was a clerk in tlis Railway Department. Fraser got into touch with Fitzgerald and ill ranged to have the loan of his "no reply wire with Martiudale. Fitzgerald saw Jl'Williams, who had several "no reply' telegrams. Fraser, Fitzgerald, and M'Wiliiams met on Saturday morning, and the telegrams were tilled in with the horse's name omitted. In the meanwhile Fitzgerald had seen Martiudale and arranged for the telegrams to be sent from the telegraph oih'ce in the Government Buildings. On the morning of tho race Fraser went over to the Government Buildings and put in his telegrams and asked the officer there (Miss Driscoll) to time the messages, which she did, and further asked tho officer to hold the wires as li« had something to add to them. He made use of the telephone and then completed his telegrams. On tho Monday following Fitzgerald sent to Martindale asking for payment, and as the money was not received he went to see Martindale, who said he was not paying out just then. On July 20 Fraser was interviewed by: certain officials, and he then made a statement disclosing the whole proceedings. On August 3 Fitzgerald went to Martindale and said to him that ho was quite right not to pay out. M , Williams, wrote to Ryan, from whom lie had received a cheque for .£55, returning the money and explaining the position. After a. few other remarks Mr. Macassey proceeded to call evidence. William Ryan, financial agent, Auckland, stated that on July U he received a telegram from John M'Williame, under his "no reply" privilege, "Put 10 on I'nn Sebastian." He knew M'Wiliiams well. San Sebastian~won the race, and he sent M'Wiliiams a cheque for .€55, the payingout limit being -,£7 10s. On August 3 he received a letter from M'Wiliiams, in which was returned a cheque for .£55, and explaining the position. To Mr. O'Leary: He had had small dealings with M'WilHams, and had found him one of the most honourable of men. Witness wrote to M'Williame on August 7, thanking him for returning the cheqne under the circumstances. At that time he had no idea. M Williams was to bo prosecuted.

Postal Official's Evidence. Arthur Theodore 'Markmann, Chlief Clerk in the General Post Office, deposed that in July last, on account ot something that had come to his knowledge, sie collected ' certain telegrams put in the telegraph office at tho Government Buildings at 11.29 a.m. on July 14. He produced, the telegrams under authority. He went to the Hailway Office, and with Mr. M'Villy, of that Departniont, interviewed Fraser. The latter stated that on Friday, July 13, he met Hodges i;i the street, and was. asked by him if it would be possible to make a bet if they got the results through in time. He then made arrangements for tho uso of certain "No reply telegrams" with Mr. Fitzgerald, and at 8.30 o'clock on the following morning he met Fitzgerald, who handed him tho skeleton telegrams. Fraser said ho reached his office at 9.45 a.m., end shortly before 11.29 a.m. he went to tho Government Buildijigs • telegraph oßico and presented the telegrams to Mis? Driscoll, the officer in charge, and asked her to time them at once, which sho did. As eoon as this was done he remarked to her that the telegrams were not quite complete, and that he wanted to communicate -with someone. Ho asked

if ho could use the telephone. After tlis lapso of a few minutes he got the information ho wanted over the telephone, completed tho telegrams from his point of view, and handed them back to the officer. He etated that he had received the telephone inessnce from Hodges, in the District Traffic Manager's office. Witness- had no of Fraser mentioning having received "no reply" telegrams from M'Williams. Fraser stated very definitely that Fitzgerald was fully cognisant of _ the arrangements in haud, and that Fitzgerald was to receive half, the proceeds, althongh he could not say b> what extent M'Williams was to participate, but believed that his proportion was to be onethird. Hodges was asked if he had telephoned the result of tho first raco to Fraser. He replied that he had, but could not say how long it was after the race was run. Hodges further stated that he had made no arrangements with Fraser, so that he would not bo a r/arty to "taking down the bookmakers." It wns then remarked by Mr. M'Villy that no question of "taking down the bookmakers" had been raised, and asked Hodges what he was referring to. Hodges said he understood there was some trouble '■ with the bookmakers. Hodges denied that ho lind any conversation with Frasor on the street on the Friday. Fraser, however, in the presence of Hodges, was very emphatic, and remarked, "Oh, yes, you did t Hodges. Yon know very well we talked about it in the lunch hour," and 6tated to Mr. M'Villy and witness that that was absolutely true. Witness saw Fraser some days later at Mr. M'Villy|s office. He said on that occasion that his previous statement was absolutely correct. Witness showed tho thirteen telegrams to Fraser, who admitted that ho had sent them.

Cross-examined by Mr. Neavo, witness stated that he first eaw Mr. M'Villy on July 2,1. On July 1G he collected some of the telegrams. Martindale lead mentioned the telegrams to witness, and asked him if 'he could verify Hie time at which they were sent. He did not regard tho request as involving a charge of fraud; but witness certainly thought there wae something wrong. JkYti'iJalo called at the office two or thiee'times after that to see witness. Ho showed Martindale the writing on one of the telegrams, and also told him of Eraser's admissions. The interview with Eraser in M'Villy's office took about three hours. Eraser was standing the whole timo. There was no suggestion of ajiy adjournment for lunch. Fraser was examined principally by M'Villy, as Fraser was an officer in the Railway Department. Witness saw M'Villy prior to seeing Fraser, and discussed the matter with him. They came to the conclusion that there was fraud owing to tho time marked an the telegrams. To Mr. Wilford: Hodges was present in the room for about 15 minutes. Witness was giving (ho substance of *tho interview: ho took no notes. To Mr. Gi ; ay: Either M'Villy or witness asked Fraser if Fitzgerald knew of tho arrangements, and Fraser said he did know—of that he was positive. Witness had had no conversation with Fitzgerald on the subject. Ho had no recollection of M.'Villy charging Fraser with conspiracy with the other three defendants to swindle the bookmakers. Ho could not eay definitely that he did not make that charge. To Mr. O'Leary: They had two men m tho Post and Telegraph Department named Morris- and 'J'albot. One wns an inspector and the other a superintendent Witness had seen M'Williains in the Post and Telegraph Office iutorviowiiiß Mr. R. B. Morris, inspector. Ho did not know what passed between them. This lntor-

view took place after the interview witness had with Fraser. Mr. M'Villy's Statement. It. W. M'Villy, assistant general managor, Government Railway Department, said that he interviewed Fra6er in the presence of Markmann. Fraser stated that on Friday, July 13, he met Hodges at lunch time, and the latter told hiin that ho could get information from Trentham by the railway telephone. The arp rangement arrived at betweon them was that Hodges was to get the information IS from Trentham, Fraser ivas to ring it Hodges tin, obtain the information, and use it in connection with certain telegrains. Fraser saw Fitzgerald on Fri- ■ day ovening, discussed the matter with him, and arranged with Fitzgerald to 0 secure "no reply telegrams." He saw t Fitzgerald on Saturday morning somed where about 9 o'clock. Fitzgerald, who e was then on the point of leaving for . Trentham, gave Fraser some of the telel( grams to be used in a beting transact tion. Fraser stated that Fitzgerald was fully 'cognisant of what methods he was following, and tho action to be ■' taken by ' him in filling up the f telegrams after he had got tho results of the race from Hodges, n with which Fitzgerald fully concurred. e Fraser came on duty on Saturday at i- 9.45 a.m., and his explanation in the at- ,, tendance book was that ho was not well. At 11.25 a.m. he Btated he left the liailway Office and wen.t to the Post and i, Telegraph Office m tho Government .1 Buildings, taking with hiin a number of r telegrams. These he presented to Miss 5 Driscoll, and asked her to time them, r He then told her that ho had to get ; some information from a friend before 3 he could complete tho telegrams. Ho - obtained tho telegrams from her, took 1 thom with him to tho telephone bureau t in the Government Buildings, rang up t Hodges, got from him the information 1 that San Sebastian had won, filled up tho telegrams and took them back to - Miss Driscoll for dispatch. Fraser said - that Fitzgerald was to get one-half of ■ tho proceeds of his "no-reply" telegram. - He further stated that Fitzgerald had 5 arranged with M'Williams, after discuss- " ing tho scheme with FrHser, to obtain 1 "no reply" telegrams from M'Williams. : In respect to those telegrams, Fraser was " not definite, but he thought M'Williams ' was to get one-third. Hodges was then > sent for, and in tho presence of Fraser ! admitted that he had a conversation with ! Fraser in. July respecting tho races; that ho had agreed to give Fraser the result ' of certain races in quite a casual way, f as he put it. Witness corrected this ' part of his evidence, a,nd said it was ; "the first race" that Hodges said he had agreed to give Fraser. Hodges stated further that he was often asked for tho 1 results of the races, and said tho time taken to get his information varied according to the pressure of business on the railway. Ho admitted giving Fraser the result of the first race over the telephone. He did not know tho purpose for which the information was wanted; he did net know it was to "taJce down bookmakers," or he would ha.ve wen no ; party to it. Hodges was nskod why, if ; he did not know the purposo for which the information was wanted, lie should refer to the bookmakers, who had not up to then been mentioned by anyone in the room. Hodges could give no explanation. Fraser, in the presence of Hodges, said that the latter knew perfectly well what the information was wanted for, and said that as a matter of fact the proposal had emanated from Hodges. There was a direct telephone wire between Trentham railway station and the District Traffic Office in the city. Ho saw Fraser on two occasions after this. Fraser never went back on his statement, but assured witness that what ho had stated to Markmann and himself was absolutely corrwt To Mr.. Ncavc: He was first approached about tho matter by Mr. Mnrkmanii. He met the latter at the Tost Office, and it was arranged that Markmann was to make inquiries in his own department, and when completed he was to seo witness. About a week later Markmann. came to witness's office, and brought some telegrams with him. He wanted to see specimens of Fraser's nriting. Markmann again cantts to tiio office two or three days later, and it was on this occasion that the interview with Fraser took place. He had discussed tho method of the fraud with Markmann prior to tho interview with Fraser. He did not think he had expressed the opinion that Fraser had been guilty of fraud. He had a perfectly open mind on the matter until he recognised Fraser's handwriting on the telegrams. At the first interview with Markmann witness did not see tho telegrains. saw them on the day they had tho interview with Fraser. Bffore the interview Markmann suggested that it was necessary for his inquiries that certain telephones should be disconnected, so that there might bo no collusion "between railway and Postal officials. Fraser was called in at 12.45 p.m.. and was released about 2.30 p.m. Fraser was not permitted to go to. lunch, becauso it was necessary to complete the examination. Fraser was" not offered a seat by witness; he seemed quite comfortable, however, leaning on the desk—as comfortable as witness was in the witnessbox at the moment. Fraser was told i when he came into the room what the | complaint was and what was suggested. . Fraser volunteered the statement that , Hodges gave him the information. He j did not warn Fraser against incrimin- ( ating himself; it 'was not his duty to do so, for he was not a police officer. Fraser had been suspended- since about July 31. To Mr. Wilford: Ho believed he had covered the entire story of his interview with Fraser in the evidence he had given. Mr. Wilford: Your interview took . three hours, and you have taken seven-' teen minutes to tell the Crown Prosecu- p tor your story. What happened in tho • rest of the two hours and forty-three minutes? f Witness: 1' was probably taken up with asking questions. 1 Mr. Wilford: Did you offer Fraser a seat? E Witness: No. I did not. f Mr. Wilford: Did you ask him to sit s on the sofa? _ 1 Witness: There are no sofas in tho t railway offices. 1 To Mr. Gray: Fraser volunteered the c statement, that Fitzgerald had a full o knowledge of what was being done and ( the methods that were to bo used. In ( his examination witness said he had used the word "cognisant" in connection with £ the matter, but that was his own ex- s pvession, and was not used by Fraser. He relied--upon his memory for his statements for he took no notes of the inter ww. To Mr. ilacassey: He made a- statement to the nolic very shortly after the interview with Fraser. Mr. Wilford asked for the production of the statement and contended that he and the other counsel had a right to see it. Tt was not a privilege document. This anneal was supported by Sir. Nenve and Mr. Gray. The Magistrate refused the request. At this stage the furthfr hearing of the case was adjourned to 10 a.m. on Friday.