FRAUD ALLEGED.

Hokitika Guardian, 5 December 1925, Page 4

FRAUD ALLEGED.

SAVINGS BANK TRANSACTIONS. WELLINGTON, December 2. A case was beard in the Magistrate's Court to-day in which William Smith, labourer, was charged with obtaining from the Savings Bank £350, by means of a valueless cheque drawn oil the Bank of New Zealand, Invercargill. and Erie Baume, law clerk, was charged with receiving £350 from Smith, knowing it to have been stolen. Both were jointly charged with obtaining from the Savings Bank, sums totalling £llOO. Edwin AYilliam Rudmnn, senior supervisor of flio accountants’ branch of the General Post Office, said that Smith opened an account at AYellington on 0 ten her 13, 1925, and he was issued with a Savings Bank pass bonk. On October 30 he deposited £1 in his acaccount and a deposit ol £SO was made by cheque next day. The cheque was accompanied by a deposit slip, and was received hack from the Rank of New Zealand, Invercargill, marked “No Account,” on November (I. The next transaction was a. deposit of £IOO. also made on October 31. The deposit was accompanied by a cheque, also signed by Smith, and also altered to read “Invercargill” from “North End. That cheque was also received back marked “No Account.” A withdrawal of £lO was made on November 2, and the withdrawal slip , was signed by Smith. The next transaction was the withdrawal of £350, also on November 2, which was paid over by Post Office cheque, drawn on the North End branch of the Bank of New Zealand. A deposit of £2OO was next made by Smith on November 2, and the amount was represented by cheque on the Rank of New Zealand, North F.ml branch, altered to “Invercargill,” The alteration was made in handwriting. At the request of the Post Office the cheque was given to the police by the manager of the Bank of New Zealand. On November 3, £750 was withdrawn front the account, the amount being paid bv Post Office cheque on the Bank of New Zealand, North End branch. AYellington. The last transaction in the account was dated November 3. The £SO and the £IOO cheques were returned by the Bank of New Zealand marked “ No Account,” and were received by the Department on November (!. On receipt of information from the police the Chief Postmaster, Auckland. opened a mail hag in transit between AYellington and Sydney and secured a letter addressed to “ AA ■ 0. J. Currie, care Post Office, Sydney.’’ The letter was opened by Governor’s warranl. The envelope contained six £oo bank notes. Witness said that Baume opened an account in the Post Olfico Savings Bank, on .lime f, 1923. The ledger card recorded transactions till October 17, 1925, on which date £l2 IHs 2d remained at the depositor’s credit. On October 20 the withdrawal of t'.'i was entered on the ledger card, loiter on the same date a deposit of £35 was made in the account. The deposit was made by cheque drawn by Arthur Bankart, Auckland. The cheque was post-dated, and in consequence was returned by the hank. On the same date a deposit of £33 10s was made, included in that amount was a cheque lot' £25 drawn on Auckland. That left £-13 B.x 2d to Uaumo’s credit, of which £1 was withdrawn on October 29. Later on in the same day the withdrawal of £35 was made. The cheque drawn by Endian and Holloway (Auckland) was not cleared by the hank at Auckland before the withdrawal of the £.35.

Percy Herbert Wright, first teller at the Bank of New Zealand, said he examined the cheque for £350 on the Chief Post master's deposit account. Witness cashed the cheque on November 2. lie noticed i't was on the North End branch of the Bank of New Zealand. hut had no hesitation in cashing it. Smith was (he man who cashed t !,* cheque. flic lollowing day Snuih came hack with a. large cheque, which witness did not cash, because “he di I not like lhe look of the person, who appeared to he under the influence el drink."' Witness told Smith to go to tin l North End branch. Red ward Maurice .M'Gralh, teller at Ihe North End branch of the Bank of New Zealand, said he cashed a cheque on the ('hid Postmaster’s depos'd account for £759, presented by Smilh on November 3.

John Ryan, sou of the proprietor of the Afot ronolitan Hotel, said that Smilh firsl went to witness's hold on Noveinli.i- 3. Two days later witness noticed (hat accused had a lot of money. Smith asked witness to mind COSO for him. out of which witness paid Smith to and handed the rest to the poliee. Rupert Henry Eastman gave evidence that the typewriting on the cheques had been done with a typewriter in Ratline's office. Accused were committed for trial, hail of £250 each being allowed.