DEFAULTING RATE COLLECTOR.

Patea Mail, 5 August 1880, Page 3

DEFAULTING RATE COLLECTOR.

ALLEGED EMBEZZLEMENT AT WAVERLEY.

.At the Patca II.M. Court, yesterday, before Captain Wray, Dr Croft, and Major Noake, the alleged embezzlement by the late collector to the Wairoa Highway Board occupied the Court the whole day, the proceedings being watched with considerable interest by a crowded court.

Walter Allan Grant Winchcomb was charged under a summons with fraudulently and feloniously embezzling three several sums received by him as collector to the Wairoa Highway Board, and not paid over or accounted for; and he was charged, under a second count, with feloniously stealing, taking, and carrying away the moneys aforesaid, being an indictable offence. Mr E. if. Ward conducted the prosecution ; Mr M. V. Hodge, of Wanganui, conducted the defence. Mr Hodge objected that the charge was not specilic. It did not say whether the money was in 'cheques, or what. Mr Ward : They arc all cheques. I appear on behalf of the Wairoa Highway Board, and what I have to prove is very simple. I shall be able to present to you a sufficient case to require sending before a jury. The accused or defendant was rate collector for this Board, and was employed at a coitaiu salary, and by that I shall be able to prove that he was a servant of the Board, and in that position he must account to the Board or to the proper authorities constituted by them for the moneys received. Notwithstanding that, he is also accused—supposing the Bench should not consider that ho was a clerk or servant of the Board —he is accused of committing larceny as a bailee, in having taken and carried away these cheques. I shall provo that in each or these cases ho received the cheques, but instead of paying them, as directed, to the Board’s credit in the bank, ho paid them to his own credit. He may make it a cry that his place was burnt down, and Ids books and papers were destroyed. But I shall prove that it was his duty to pay the money to the Board’s credit, and not to his own. The money is gone, but we don’t know where. The Board have not had it. This is de facto an embezzlement, because on the one hand or on the other it is a larceny case as a bailee. There is no vindictiveness on the part of the Board ; and they only wish to have the whole matter brought before the public and to let a jury decide. Mr Hodge : I understand from the remarks that Mr Bridge is prosecutor. Mr Ward ; No, the public. Mr Hodge : The Patea Mail says the Crown Prosecutor at Now Plymouth had the facts placed before him, and . Captain Wray : I inust object to have the newspaper quoted. Mr Hodge : I think I am entitled to know who is prosecutor. Mr Ward : With regard to what the newspaper says on this matter, we can scarcely accept it as proper evidence. I dare say the newspaper made a mistake in mentioning the matter, because it was sub judice at the time. Captain Wray : There is no objection to state who is the prosecutor, that it is the Chairman of the Board.

Evidence was then called by Mr Ward. George Stephen Bridge deposed : 1 am chairman of the Wairoa Highway Board. The Board is duly gazetted. W. A. G. Winchcomb was appointed by me, September Gth, 1875, as collector to this Board, He was to be paid at £5 a year ; that was the original agreement. The minute specially says at a salary of £5. This was afterwards raised to £lO. That was his retainer. His duties were to collect the rates, and pay them into the bank to the Board’s credit. The bank was latterly the Bank of Australasia, at Waverley. Mr Ward : Was there any special time at which he was to pay these money’s in ? Witness: He was supposed to pay them in at once, to the credit of the Board. Ho did pay’ in several sums to my knowledge.

Mr Ward : Are you aware of any r other sums that ought to have been paid? Witness: Yes, I believe there are. I know of one cheque for £37 10s that -was paid by 7 Todd and Kells. There was also a cheque of £4 paid by’ Mr Hone. I received a letter from Mr Hone. Mr Hodge : I object to that as evidence. You must produce that person. Witness : I examined the bank slips lo see if that cheque for £4 had been paid in to our account, but found no such record. I informed the Board. Mr Ward : AVill ymti road the minutes ? Air Hodge : They may pass any quantity of minutes,.but those minutes cannot bind us. Witness: The minutes state that the Board resolved to prosecute the collector for embezzlement. There was another cheque for £2 5s lOd from. Mr F. Harris, which should have been received by the Board, but it was not paid to our credit. The money was due by Mr Harris, but never reached the Board’s account at the bank. There was also a sum of £2 Os lOd from Mr Holmes not accounted for at the bank. There was also a sum of £7 12s Gd, due by R. Macintosh, which was not paid in to the Board’s account. I applied to Mr Winchcomb in August to account for these sums, and ho delayed and put the matter off till October. 1 had no conversation with Air Winchcomb about any’ cheques in particular. He told me in the month of October that the whole of the rates with the exception of Air WBrewer’s had been paid, and those on whom summonses had been served. In the year IS7G Mr Winchcomb had his salary’ increased to £lO. It was previously £5 a y’car. The rates, by my instructions, were to be paid from 1877 into the Bank of Australasia at Waverley’. At the time our account was shifted, in January 1877, from Wanganui to Waverley, I told the defendantto pay the moneys into the Board’s account. I cannot say’ the exact date. Accused has paid money’s in to the credit of the Board. By’ this I am aware that he knew where the money was to be paid. If he received the sum of £4 in Jimc he mnst have known where to pay’ it. (The same evidence was taken on each sum said to have been embezzled.) It was Ins duty’ to pay the money’ into the bank, but the bank book docs not show it. I produce the bank book. To my’ knowledge the accused has not seen the bank book. As Chairman, it is my property. I seethe name of accused mentioned in it having paid in sums of money’. There is also a specific sum of £lB 13s entered as having been paid to Winchcomb, The accused had no authority’ to pay’ or to use the funds of the Board in any’ way’. He did sign cheques. After the (ire which occurred on the 31st December, 1879, I had a conversation with Air Winchcomb. Mr Winchcomb wrote to me after his office was burnt and told me of the circumstance. I requested Air Winchcomb to let me know what money belonging to the Board had been destroyed by the lire. (Letter from Air Winchcomb relating lo the lire read and marked “ A.” A letter in reply to Mr Bridge’s query’ as to amount of money alleged to have been destroyed was also read. The following is the substance of it“ In reply to your letter of the 27th, I beg to state jtbat all the money belonging to the board being burnt I am quite unable to pay without time being allowed me.”) Air Winchcomb subsequently told me that all cheques he had received had been paid to the Board’s account on dayfollowing their receipt. B.y Air Hodge : Under the Wellington Highways Act 1874 the Waverley Board is incorporated. The members of the Board are gazetted, I was appointed Chairman before the dates mentioned in evidence. Accused was appointed collector after my appointment (minute appointing Air Winchcomb read); his duties were to collect rates. According to my impression the money was to be paid into the Board’s account, but I don’t recollect saying that cheques were to be paid in without being

cashed. No instructions were given as to how the money was to be paid so long as it was paid. I should consider that if Mr Winchcomb cashed a cheque given him for rates and afterwards paid in the cash it would be a breach of his duty. The meetings of this board were held on the first Saturday in every month. It was the duty of Mr Winchcomb to show amounts paitl during the month, at these meetings. He was in the habit of doing so. A rate book was generally lying on the table showing amounts due, date of payment, and by whom paid. The names of persons who had paid were entered in the book by Mr Winchcomb either in pencil or ink. At the monthly meetings we could sec who paid and who had not. He received £4 on the 29th of June, and on the 11th of July he paid in £2B 7s lid ; this is about 14 days after he received £4 mentioned. That amount would be for moneys received previously. That amount was made up by cheques. The banker can produce the cheques. I can say that accused did not carry out his instructions. He paid money into bank very irregularly, at intervals during the month. 1 complained to him and told him to pay rates as he received them. From the pass book it appears that he paid moneys in as ho received them, but cannot speak positively, as 11 do not know the dates he'received every sum. The Court then adjourned for luncheon. Thomas Hone: In consequence of beingrated I paid Mr Winchcomb £4 by cheque and Is cash, and received receipt 1 now produce. G. W. Booth : I am clerk at the Bank of Australasia, Waverley, where I have boon 18 mouths. I know the chairman of the Wairoa Highway Board. I know the bank book produced marked ‘‘ B.” I received moneys from Mr Winchcomb, collector of the Wairoa Highway Board, and he has paid sums into the bank on the Road Board account. Mr Winchcomb never said to me that he had neglected to pay moneys into the account of the Board. I have spoken to Mr Winchcomb only when he came into the bank. I produce the bank exchange book. There were no transactions on account of the Board on the 27th June, 1879,"with Mr Winchcomb. On July oth Mr Winchcomb passed a credit to his own account of £l7 IGs 4d, and composed of three cheques drawn by Mr Harris (£2 5s lOd), Mr Bradey (£ll 10s Gd), and Mr Hone (£4). 1 produce Mr Hone’s cheque marked “ G.” Mr Harris’s cheque went through in exchange to another bank. Cross-examined by Mr Hodge : The cheque drawn by Mr Hone marked G” is made payable to Mr Winchcomb. I cannot say it is given in payment of rates. Mr Hone being recalled, recognized the cheque produced marked “ G,” and deposed to having given it to Mr Winchcomb in payment of rates. Thomas Harris : I am a farmer at Waverley. I know Mr Winchcomb. I paid him the sum of £2 5s lOd last year by cheque on the Bank of New Zealand at Waverley, and the receipt marked “ G ” was given me. The amount of cheque produced was taken from my account. By the Court : I gave the cheque on the sth July, at Mr Winchcomb’s cilice. Robert Macintosh : I reside at Wairoa. I am rated in the distiict, and pretty heavy too. I remember paying my rates to Mr P. G. Fortcscue, who was in company with Mr Winchcomb, who requested mo to do so. 1 paid by cheque, which I now identify. The receipt marked “ J ” was given me by Mr Fortcscue. I have often seen the accused and Mr Fortcscue since I paid my rates. I had no conversation since with the accused. I know my cheque was paid at the bank. John T. Barr : I am clerk at the Bank of New Zealand at Waverley, and I receive and cash cheques. Robert Macintosh has an account at the bank. 1 recollect cashing a cheque for Mr Winchcomb on the 15th September signed by 11. Macintosh. The cheque marked “ II ” is the one. It was made payable to road rates. Mr Winchcomb put the money in his pocket, and walked out of the ollice. I know Mr Thomas Harris, who deals with our bank. Several cheques passed through his account in July last. I produce a cheque for £2 5s lOd drawn by him in favor of Mr Winchcomb on the sth July) 1879. This cheque came through the Bank of Australasia by way of exchange. . Mr Ward said he had no more witnesses to call. He considered he had made out a prirna facie case. Mr Bridge, re-called, said : In January last, after the fire, 1 went to Mr Winchcomb’s house to find out how much money he alleged had been burnt in the fire. He gave me a statement showing amount for which summonses had been issued, amount paid into bank, and amount

alleged to have been burnt. Mr Winchcomb stated that £55 14s had been burnt. No settlement was mentioned at any of the meetings. I audited Air Winchcomb’s accounts once a year.

Air Hodge, addressing the Bench, said : If y’ou think a case has been made out, I will address the Court ; but if not, I shall not do so.

The Bench ; We certainly think a case has been made out.

Mr Hodge addressed the Court at length, contending that the accused, being collector to the Board, was in the position of an agent. Sums of money had been received by’ Mr Winchcomb on account of rates ; and if ho had paid any particular cheque into his own account at the bank, did that fact look like embezzling the Board’s funds ? Would a man resident in ihe district, an old and respected settler, put his name to the back of a cheque and pay it into the bank to his own account if he intended to steal (he money’? Would he not be furnishing a clear record against himself that the money’ had been received by him and used in a particular manner? What ho had to do was to account for that sum to to the Board ; and he did account for these throe sums spoken to by witnesses. He accounts for them by’ including them in monthly statements he submitted at the Board meetings. The particular money’s he was alleged to have embezzled were included in the monthly’ settlements paid over subsequent to the dates of those cheques. The prosecution had failed to prove that the particular sums in question had not been paid over at the time. It was jio part of the defence that these particular cheques were dcstroy’ecl in the fire in December. To allege that would be puerile. He must ask the bench to acquff the prisoner on these grave charges of embezzlement and larceny. Ho would ask them lo say’ the case was not proven. The Alagistrates retired, and after consulting a few minutes they returned into Court. Captain Wray’ said the case had not been established sufficiently to warrant its being sent before a jury ; and the defendant must be discharged.

Air Winchcomb then left the court