MAYOR AND A CHEQUE.

Taihape Daily Times, Volume XI, Issue 3536, 26 July 1920, Page 7

MAYOR AND A CHEQUE.

SEQUEL TO WESTPORT DISAPPEAR ANCE. WELLINGTON. July 22. A few weeks ago the member for Duller told the House about the disappearance of a fdj(lo\v trustee, then .Mayor of Westport, with a large portion cf a cheque which he cashed in his capacity as trustee in the O’Connor Estate. The Minister in Charge of the Public Trust Office (Hon. J. A. Coates) made a statement on the matter in the House to-day. as he suggested that Mr HoVaml ■ had drawn an inference that due care pvas not taken by the Public Trust and Post Offices in making payment. Air Holland and the Roman Catholic P-h-hep of Wellington wore two trusiees, and they signed a special authority under which the Puli-

lie Trust Department made a payment j to Mr Lever, another trustee. As there was no permanent officer of fhe PublicTrust office at Westport, the authority for payment was forwarded, in accordance with the usual practice, to the Postmaster at Westport, who paid Lover by bearer cheque on the Bank ■of New Zealand. Westport. It the, cheque had been to bearer or payable to Lever’s order there would, suggested the Minister, have been no special protection, because he could have endorsed the cheque on presentation., or put it through his aec uni. Had Lever demanded cash. tl;e Postmaster would have had no option but to pay if. Mr tv. W. Kane, financial adviser to the Public Trust Office, had investigated Hie whole circumstances and approved of the reply which was being made, as j he considered the Departments had acted in a businesslike way in carrying j out the definite instructions ef the two i rust ees. Mr Holland explained that he laid made no charge against any official, j but simply showed Unit the system was faulty under which lingo sums of I trust money were paid by a public in- ' stitntion by means of open cheque. Lover was the only trustee who lived at Westport, and handled all the monies of the trust in that town. There-# fore, his fellow trustees had no option Iml to sign the special antlioritv.