EMBEZZLEMENT BY A BANK MANAGER.

Nelson Evening Mail, Volume XIII, Issue 82, 5 April 1878, Page 4

EMBEZZLEMENT BY A BANK MANAGER.

At tho Supreme Court, Hokitike, on Friday, J v IT. Hamer, lute agent of the B T>k of New Z 'Bland at Robs, and who h&d pleaded guilty to nine charges of embezzlement, was brought up for Bentpnce. Mr Purkisß, prisoner's counsel, said he wished to say a few words in rnitigfition of punishmeef. Ha .would fail his Honor's »tteution to the fact that the prisoner's years were tender, and he was younp iv nßture for bis yenra. No doubt the Court would be struck by the boyish arpearanco of the prisoner. His Honor asked what was prisoner's age ? Mr Puikiss said 27, but he was appointed bnuk agent at Roes seven years ago. The prisoner had been well and strictly brought up, and it was almost a disadvantage to hina to be suddenly transplanted to sue!) s hotbed as a goldfields township. He (Mr Purkiss) coul 1 pp^ak fjoitt experience, and tould only designate a township, such as Ross was as an avenue to perdition. There was, no socieiy. The population wbs made up of birds of passage and adventurers. A goMfielda township consisted of a succession of gin palaces ami paiuted harlots trafficking on the weaknesses of human nature. The prisoner wns suddenly transplanted at a tender age to one of these places, and left the sole custodian of weoltb. H8 couhi scarcely help thinking that the princple of leaving any young man in sole charge was wrong. Then there came a time when thiß young men was tempted. No doubt his first step downwards wqh taken in the interest of the bank, aud then bis struggles to get out only plunged him deeper into the mire. At Ross there were three banks, aud there was a most keen competitou amongst these for thp purchase of gold. Banking business was carried ou very differently to theourse pursued in larger ond settled towne. The business consisted in travelling over the country from one claim to another, and an agent was bouud to spend money to get custom. Gold miners were free livers. They did not object to a social glass, and expected one's band to be con-stantly in one's pockets. This was a bad system, but if one agent pursued if the others were obliged to do so. Consequently there wbs a coutinual leek of money in the case of the prisoner. In all probability if this ycuug nairn had been Btationed in a big place he would never have been in his present unfortuuate position. Seven years ago ha was only a boy placed in sole charge of thousands of pounds, expected to buy gold and make business for a bank. One could hardly wonder that he fell. He would leave the prieoner in the hands of the Court in the hope that justice would be tempered by mercy. The prisoner who appeared very dejected, said he only had to say that ; the whole of his life had been bound up in the interests of the back of which he hud been agent. He took money first to emlatk in a miniug speculation which he considered would have beeu profitable to the bank and afterwards to himself. He took up shares iv the company, but the claim did not turn out well. He could not dispose of his interes*, and the district was grudually getting poorer and poorer. He tried to get out of this claim and always thought he would have been able to pay the money back to the bank. This led him from one speculation 'to another iv order to retrieve his losses. Finally the claim was swamped and the company became insolvent. He had not saved onj penny, but had lost everything. For the sake of his wifs and parents he implored mercy. (The prisoner cried bitterly, and ihe remainder of his stateraeut was scarcely distinguhisable. He "was however, understool to say that he bad not gambled away any money, but had lost it in speculations.) Mr Enabling, Inspector of the Bunk of New Zdaland, said, in anawi-r to bis Honor, that the first defalcation discovered was in the month of March, 1876. At present the total amount embetzied was over £3000, but more might be diacovsre '. The prisoner waß married in October 1875. He believed the prisoner referred (o the Koh-i-noor Gold - mining Company, The prisoner had carried on a system of dariug and ingenious fraud. He (Mr Enabling) had much banking experience, but hud never seen anything more systematic. Everything waß done to throw dust ia the eyes of inspection. Mr. J. P. Harris, manager of the bank ia reply to his Honor eaid he was aware that the piisoner had shares in the Koh-i-nooor Company, bat he wus always under the impression to very iimited extent. Ho could scarcely think the prisoner could have spent the whole of the money on the Koh-i-noor Company. The prisoner was always a zenlous officer. He had no remaika to < ffer to ihe Court, and could not say bow the money had gone. His Honor said the learned counsel for the defenca had urged everything possible with great propriety in prisoner's favor. It had been said that prisoner was a youth, but it was impossible he could be so considered, bb he was 27 years old. He married in the year 1875 and his speculations were subsequent to that event. Therefore the state of society at Ross — ■whatever that might be — could not be urged in mitigation. It further appeared that (he prisoner's frauds were systematic aod carried oa fora long

period. He had also embezzled a large amount. These facts would have to be taken into consideration, and he would be failing in his duty except he passed a heavy sentence, He could not say whether tho bank carried on business properly. It might be possible that some belter system might be devised. It might be that there should be more frequent changes of officers. The prisoner was then sentenced to five years penal servitude on each charge, the sentences to be concurrent.