“ON WARPATH”

Sun (Auckland), Volume IV, Issue 1027, 18 July 1930, Page 10

“ON WARPATH”

ATTACK BY CR. LUNDON SENSATION IN CITY COUNCIL Allegations made by Cr. J. R. Lundon concerning certain financial transactions angered the City Council last evening. Cr. Lundon, who spoke out his time and was given an extension by courtesy of his fellow members, suggested that Cr. Entrican had placed £SOO with the City Treasurer at short call, the money carrying interest at 4 per cent. Cr. Entrican did this, said Cr. Lundon. after banking hours on Christmas Kv. last. This meant that the council would have to find the interest on the sum over the Christmas and New Year vacations, yet be unable to employ the money in reduction of its overdraft. The effect would be that Cr. Eutilcan would gain at the council’s expense. Cr. Grey Campbell and Cr. G. Hutchison, who inquired into the matter, found the

allegations unfounded, and that Cr. Entrican had done what he said he did, namely placed the money with the City on behalf of St. James’s Presbyterian Church. Moreover the money was paid into the bank on the afternoon of

Christmas Eve, the council losing j nothing. Instead it was paying out , at 4 per osnt. and saving overdraft j at 7 per cent . The City Treasurer reported that on or about December 24. 1929, Cr. Entrican telephoned and inquired if the council was accepting any money at call, as he had £SOO belonging to St James’s Presbyterian Church trustees ; which he wished to place. He agreed to take the amount and this was seiM to the office and a receipt made out to A. J. Entrican, and the amount was banked on December 24, 1929, the credit at the hank being about £B,OOO. The reason for taking money at call on the date mentioned was that on i December 31 the council had to redeem £25,600 waterworks debentures and a further sum of £30,000 for interest on ! loans on January 1, 1930, and the dis- f trict fund account was in debit from ; December 31 to January S inclusive. Subsequently on seeing the entry on the receipt butt, he telephoned Cr. Entrican and told him that same must be altered to “A. J. Entrican for St. James’s Presbyterian Church Trust," and this was done some time in Jan- j uary, the entry in the cash book being altered at the same time. The entry j in the general ledger was in the name : of A. J. Entrican until about June 5 or 6 and was corrected after that date! to conform with the cash book. "That is a very remarkable paragraph and is worthy of attention,” Cr. i Lundon said mysteriously when the clerk had done reading. “You ' will remember that when 1 made a declaration about that £SOO at last council meeting, an at- ■ tempt was made to stifle discussion j by a motion which was moved (the closure). I said that an amount of £SOO was lent to the council on call at 4 per cent.

Continuing, the councillor remarked that when he saw what he did see, it had staggered even him. He asked the treasury officials how the “A. J. Entrican” entry had got in the books and neither the assistant-treasurer, Mr. H. Somerville, nor a clerk could give any explanation, except that the statement was trqe that A. J. Entrican had deposited £SOO on short call on December 24. “I therefore warned them not to make any alteration because I was going to make a statement about it,” said Cr. Lundon. “Cr. W. H. Murray and I again saw Mr. Somerville and he could give no information, the City Treasurer, Mr. Andrew Messer, being then away on leave. We directed Mr. Somerville's and the clerk’s attention to the inadvisability of making any alteration. After the council meeting on June 5 we had a most historic interview with the Treasurer, who had now returned.”

“I felt that something was happening after June 6 and I found that an alteration had been made. By placing money with the city in his own name—if he did it—Cr. Entrican was imperilling his seat on the council,” said the member. "The treasurer told us, Cr. Murray and me, an extraordinary story, which may be true. It it is true, then it should result in someone getting a permanent holiday. We saw that the receipt for the £SOO Cr. Entrican had lodged had been altered from ‘A. J. Entrican’ to ‘A. J. Entrican. St. James’s Presbyterian Trust." I hope that was all right ” Cr. E. J. Phelan: Do you doubt it? Cr. Lundon: I don’t know, but I endeavoured to ascertain. I don’t know what is actually true. Cr. Lundon proceeded to relate how he and Cr. Murray had discovered after waiting for books lo be produced, while keys had been missing and the records unable to be found for some time, that the ledger had been altered to harmonise with the altered receipt.. What the truth was he could not say. But the actual truth could no doubt be found if it were shown that a cheque had been drawn on the funds of St. James’s Church.

“This is a very unpleasant interlude iu municipal life.” cemented Cr. Lundon. “I view with alarm that official | records should be altered in the office. I have Mr. Messer’s word of honour that he had no idea that the ledger had been altered. I asked for Mr. Somerville, who appeared in Mr. Messer’s presence, and when I put it to him that" he might know something of the alteration, he said: ‘I decline to answer.’ I then asked Mr. Messer again if he knew anything about it, but he adhered to his previous statement. That,” concluded Cr. Lundon, “is ail the explanation that I. as a councillor, hare been able to obtain.” REFUTATION

On rising to make a statement Cr. G. Grey Campbell, who with Cr. G. W. Hutchison had made it his business to inquire into Cr. Lundon's allegations, came at once into conflict with this member. “Cr. Lundon made a statement at last council meeting that after banking hours last Christmas Eve ” Cr. Lundon: I did not say that. Cr. Grey Campbell: Those were your own words. Cr. Lundon (hotly): I tell you I did not use those words. Cr. Grey Campbell: I have your words here. The inference was that Cr. Entrican was using sharp practice to get interest when the council was unable to bank. So saying, Cr. Grey Campbell assailed Cr. Lundon in a strong voice which subdued the murmurs of approval from the gallery which had punctuated Cr. Lundon's allegations and continued after be bad sat down-

“The facts are very simple.’ axis - Grey Campbell. “The sum of m J± involved did actually belong tkV* James’s Church. I have se en .T" source from which that money It was entered in the receipt book" being entered by Cr. Entrican. He no difficulty in establishing that tx. £SOO was trust money, being I ** amount which had fallen due to church from a mortgage. "** “I have examined the bank denonit slip,” continued Cr. Grey CamnhS' "It was dated December 24 showed a cheque for £475 ~ Cr. Lundon Hooking up quickie Only £475, oh! Cr. Grey Campbell: And £ls _ cash also paid In.

“Here is a councillor trying , blackguard the reputation of other councillor,” remarked r> Grey Campbell. "Cr. Lundon’s W of knowledge of bookkeeping hL caused him to make these rash «t*-t mente. (Hear, hear, from coi& eillors. The gallery was now siletw If be had looked at the bank slittfc would have seen McGregor ,2 Lowrie’s cheque indicated and in cash. It was not Cr. Entricaks money.”

“It is absolutely intolerable that tk. council should have to listen to <> Lundon making these allegation,* complained Cr. Ellen Melville, -g. knows perfectly well that there « provision in the Municipal Corpontions Act whereby a councillor may m. vest money in the way Cr. Entries, has done. Even if it were his ova there would be nothing wrong. I n ,. self have deposited trust money oa short call with the treasury on . number of occasions, and it does atr. matter if it is in my name or in aai. body else’s.”