FRENZIED FINANCE

NZ Truth, Issue 1201, 6 December 1928, Page 3

FRENZIED FINANCE

George Hinch Promises Friend Excellent Return ALLEGATIONS OF FRAUD

(From "N.Z. Truth's" Palmerston North Representative.)

Evidently Greorge Robert Hinch is a financial genius whose talent is misdirected, judging by six offences of false pretences and one of forgery and uttering for which he was sentenced at Wanganui to three years'* reformative detention. A seventh charge of false pretences was preferred against him at Palmerston North a few days ago.

HE pleaded not guilty to altering a promissory note which he had given to a man named Nitschke, a farmer friend who lives at a tiny hamlet named Bonny Glen, )ust a few miles from Marton on the Marton-Wanganui line. Nitschke's first introduction to the accused man was when Hinch worked on a farm at Bonny' Glen. In March of 1927, Hinch approached Nitschke and asked him to negotiate a loan of £100,' so that he could take up a bond m a commercial association. Accordingly, the farmer's wife drew £100 from her banking account and gave the. money to Hinch, who later handed her a promissory note for the amount. Shortly afterwards he left the disirict and went on to Wanganui, where he had secured a position with a firm conducting its business under the title of "Dean and Co." Nitschke says that three, months later Hinch came to him with the story that as Dean was leaving Wanganui and Hinch was adopting his mantle, it might be an excellent opportunity for the farmer and his wife to invest some of their capital m the combined businesses of "Dean and C 0.," and the "N.Z. Commercial Association." The sum of Hinch's representation was that Nitschke should invest £350, Hinch would contribute £150, whilst the £100 already on loan would make the total Of £600, with which Hinch could purchase 300 shares m each of the two companies. » The identity of the shareholders m the Association was not disclosed, and when Nitschke handed Hinch a cheque for £300, it was explained to the farmer that so far as he was concerned the profits of tne company would be on a fifty-fifty basis, and nothing but giltedged securities would be considered as investments. The following month I—July—he1 — July— he was told that Hinch had an investment m the taking over of the furniture belonging to the Bridge Hotel, Wanganui, and as the result of certain other representations, Nitschke drew a further cheque for £250 and placed it m the keeping of his friend Hinch, receiving the assurance that every penny !of it would be dealt with by the Com- ! mercial Association. ■ I The farmer understood that the Association would invest the money and be responsible for it, and, so far as he could remember, this £250 was to reap no less than £150 profit! Some four weeks later Hinph paid another visit to Bonny Glen, this time asking for £300 to succour a business

which an Auckland firm was allegedly pressing, and suggesting to Nltßchke that the profit on this deal alone should be m the neighborhood of £ 200. In due time December was ushered into the calendar even as Hinch bowed low before the money-bags of Bonny Glen, declares the farmer, who tells how Hinch, his friend and financial adviser, appeared m urgent need of £55 with which to complete a transaction lacking the final few pounds to close it. When Nitschke asked Hinch for a balance-sheet, he received the assurance that as soon as the financial year closed the position would be clearly defined, and they would be astounded at the figures. Why, the possibilities were such that Hinch said he could use £5000 — had it been available. Described as the man who "acted as a father to Hineh," one Charles Seymour Pratt, managing director of the N.Z. Commercial Association, carried an expression of pain and disillusionment ort his face when he entered the witnessbox of the Palmerston North courthouse. Of the two hundred £ shares constituting the registered capital of the Association, Pratt held 199, and he stated that at no time had the share capital of the company been increased, nor had any shares been transferred. There was nothing m writing to show that Hinch was a shareholder, nor did Nitschke's name appear at all m the share register. As to the charge of altering the amount of a promissory note and uttering it as a negotiable instrument to Nitschke, Pratt, the managing director, said it was one for £200 which he had given to Hinch, since altered by Hinch to £260 and then to £1100, both alterations . being initialled by Hinch, without authority from Pratt. It seems that Hinch offered a promissory note with "The old man's backing," the "Old man" being Pratt, who had backed a P/N for £260. Hinch struck out this amount, substituting the amount of £1400, leading Nitschke to .believe that such an operation was perfectly m order, as Hinch and Pratt were co-directors m the Commercial Association, and that the backing of the bill could be left to the "Old man" who "acted just liKo a father to him." , Lawyer Willis applied for bail of £250, but the bench stated that m view of the gravity incorporated m the situation, the amount would need to be increased to a personal surety of £500, m addition, to two others of £250 each.