DEFENCE FUNDS.

Taranaki Daily News, 11 January 1922, Page 3

DEFENCE FUNDS.

STAFF OFFICER IN COURT. ALLEGATIONS OF THEFT. COMMITTED FOR TRIAL. At the Hawera Police Court yesterday, before Messrs. S. Blake, J.P., and C. C. Hayton, J.P., several charges of theft were alleged against Captain William Alfred Gustafson, until lately Adjutant to the 2nd West Coast Mounted Rifles, and Captain of the New Zealand Staff Corps, stationed at Hawera.

He was charged that, on or about September 27, 1921, having received a cheque for £5O on terms requiring him to pay the same to the Wanganui Regimental Band, he did fraudulently convert to his own use such cheque or the proceeds of same, and also that, on divers dates between June 22, 1921, and November 7, 1921, he did steal the sum of £193 10s lid, the property of the New Zealand Government. Two further charges were withdrawn.

Senior-Sergeant Henry conducted the case for the police, and the accused was represented by Mr. P. O’Dea, with him Mr. H. L. Spratt. Senior-Sergeant Henry stated that accused, as adjutant for the 2nd West Coast Mounted Rifles, was a signing officer for cheques, and commenced to issue cheques. Accused had admitted that he had received a cheque for £5O to pay to the Wanganui Regimental Band, and had converted the cheque to his own use. He had been shown a list of cheques which he had drawn, and he had admitted that he could not account for the money.

Captain Sydney Vincent Trask stated that he had charge of all financial matters for the command for the Wellington Military District, and all claims for maintenance passed through his hands. The funds were operated on by the officer commanding a unit and a permanent officer when available. In the case of the 2nd West Coast Mounted Rifles the accounts \were operated on from April 21 by Lieut.-Col. Munro and accused. The accounts for the 2nd West Coast Mounted Rifles was audited by the Government auditor on June 20, 1921, and found to be correct. There was then a credit balance of £175 10s lid. There was also an amount of £l3 Is 5d petty cash in hand, making a total of £lBB Ils 9d. The unit was entitled to draw £292 10s from the Defence Department, which left a balance due to the regiment of £lO3 18s 3d. This amount was placed to the credit of the regiment. ACCUSED’S DUTIES.

On December 8 he received a letter from the accused, stating that he could not furnish an account until his return from Trentham, and that he had paid £7 from the petty cash into the regiment’s account. Accused had no authority to pay petty cash into the account, and the assumption was that accused had paid the £7 out of his own pocket. Witness discovered that from June 1 twenty-three cheques had been drawn on the bank by accused to the total amount of £291 Ils 4d. They were signed by Lieut.-Col. Monro and accused. Not a single entry had been made in the maintenance book to account for the cheques. The accused was solely responsible for the entering up of the maintenance book, which should be kept up-to-date according to regulations. To his knowledge no other person had authority to make entries in the book. Of the twenty-three cheques he had receipts for seven, amounting to £6O Ils lOd. ’ For the remainder, representing £243 10s lid, there were no receipts. Accused held the position in Hawera of Captain of the New Zealand Staff Corps, and adjutant of the 2nd Mounted Rifles. As such he was responsible for all the books and accounts, and held the cheque book of the unit. Together with Lieut.-Colonel Munro, accused was one of the signing officers. The cheque for £5O was paid through the Rutland Hotel account at Wanganui on September 27, and passed through the Ba?k of Australasia. There was no receipt for the cheque. Witness had discovered nothing to show what right Gustafson had to cash this cheque. Witness had examined the bank pass book for the period between June 14, 1921, and December 2, 1921. The bank book showed a balance of cash in the bank of 2/3. The sum of £291 8s 7d had been paid out. There were no entries in the maintenance book to account for this sum. The book was a very simple one to keep, and accused had kept his entries from April 22 until May 31. Mr, O’Dea objected to witness putting in a statement showing the list of cheques drawn by the accused, and how they were disposed of, holding that evidence as to the point should be given by Lieut.-Col. Munro and the bank.

It was decided to take the statements and take note of the objection. Witness continued that the regulations strictly laid down that all payments must be made by cheques and supported by receipts, and on no account must an account be overdrawn.

To Mr. O’Dea: The regulation with regard to entries being made in the maintenance book was not a new one, and so far as he a state of “Rafferty’s rules” in regard to this book did not apply until lately. Witness knew nothing of accused’s military record.

THE COLONEL’S EVIDENCE. Lieutenant-Colonel Duncan Munro, officer commanding the 2nd West Coast Mounted Rifles, said that he knew accused, who was appointed adjutant to the regiment on April 14, and took up his duties in Ha wera on that date as a fully paid officer of the Department, Accused was directly responsible to witness for the training, organisation and general efficiency of the regiment. Expenses would be incurred for the purposes of training and general organisation of the regiment. At certain periods accused submitted to witness certain accounts to show how the expenditure was contracted. On some occasions these statements were submitted verbally. He had never any reason, until December, to believe that the money of the regiment was not being properly accounted for. He would not say that the cheques were al> ways filled in. He did not keep a record of what money was spent or what cheques were signed by himself for the regiment. That record should have been kept in the headquarters office of the regiment in Hawera, The regiment started the year with a credit balance of £292 10a : During the week from July 18 to July 23 accused called on witness at Wanganui and discussed the financial position of the regiment. A discussion took place in connection with a grant to the Regimental Band, and it Was estimated at that time that the regiment hafl a credit balance of £lBO tn £l9O, On September 2q he saw accused, who mentioned some pounds outstanding and a grant to the band. Witness signed cheques for accused, including one for £5O, a grant, for the band. Accused stated that he had just arrived from Hawera, in company with Colonel Melville. Witness later found out that this was not correct. Th® cheque was not fplly filled in when witness signed it. Accused could nst Wls= understood his instructions as to the disposal of the cheque for the band. During July, accused stated to witness tfiat tfiere were several small items of the amguut of he wa®

not quite sure, but which was approximately £5. Witness signed an open cheque for these items, but did not at that time sign a cheque for £5O. There were certain characters in his signature in the cheque for £5O produced that he could not swear to, but he could not swear that the signature was not his own. It was now within his knowledge that cheques were filled in for a greater amount than it was represented to witness that they would be filled in for. On some occasions, when accused called and gave witness cheques to sign, some of the cheques were not fully filled in. No entries had been made in the maintenance book during the last training year since June 1. On December 16 he visited Hawera and met accused in his office.

DISPOSAL OF THE CHEQUE. Accused came to search for receipts, but did not find any, and at witness’ request handed to him the keys of the office and the cheque book. . On some of the butts in the cheque book there was indication of the amounts which were drawn. Accused called at witness’ office on November 2. It had come to witness’ knowledge that the cheque for £5O had not been handed to the band. Accused explained that after he had left witness, and in discussing financial and regimental matters with the commandant, the commandant had informed him that it would not be advisable to make the grant to the band until the end of the year, as there, was likely to be a camp, and he had held the cheque over until seeing witness. Witness asked accused what ,he had done with the cheque, and accused said he had destroyed it. Lieut.-Colonel James Henry White, chief staff officer of the headquarters staff, Palmerston North, stated that on December 13 he had been ordered to conduct a court of inquiry into deficiencies in the maintenance account. Accused had been warned to be present, but as he was not prseent at the time the court was to assemble, witness, in view of certain papers he had, decided to communicate with headquarters. Gustafson reported later. Mr. O'Dea said that he would object to any admissions which it might be stated that Gustafson had made to the colonel. If they were made, and it was not admitted that they were made, counsel submitted that they were made under duress. In other words, Colonel Young had forced accused to make the admissions, and in that case they would not be admissible as evidence. ALLEGED ADMISSIONS.

Witness continued that in answer to a question as to how he could account for the money, Gustafson said: “It’s no use beating about the bush, Colonel; I cannot.” Gustafson then admitted receiving a cheque for £5O to pay to the Regimental Band account, and to converting the cheque to his own use. Witness said: “You know what this means, Gustafson,” and accused said: “Yes, I think so.” Witness then called in Captain Goss and accused admitted in his presence receiving the cheque and converting the money to his own use. The police were then communicated with. Since then somebody had communicated with witness over the ’phone. Witness was not prepared to say who it was, but it was some very interested party.

To Mr. O’Dea: Accused had a good war record and had left with the Otago Mounted Rifles in the Main Body. He knew that accused had the D.C.M. Accused, when he made the remark about “beating about the bush,” did not refer to the £5O for the band, but to the whole of the deficiency.

Captain Leonard G. Goss, of the New Zealand Staff Corps, corroborated the evidence of the previous witness as to accused’s admission regarding the £5O. Agnes Kathleen Finch, book-keeper in charge of the office of the Rutland Hotel, Wanganui, identified two cheques for £5O and for £l5 which she had banked. She did not remember cashing the cheques. Accused was staying at the hotel during the time the cheques were cashed at the office. Witness remembered his cashing one cheque for £5O. On December 3, accused paid an account for £2 7s, on December 27 an account for £5 5s 6d, and on November 3 an account for- £1 3s 9d. On July 23, accused paid an account of £6 19s lOd. To Mr. O’Dea: She did not know if accused paid the accounts out of his own cash or not. There was only one cheque for £5O which she remembered. She remembered the cheque because there had not been enough cash in the office to cash it at the time.

Annie Hook, daughter of the licensee of the Commercial Hotel, Hawera, stated that she cashed a cheque for £lO for the accused who stayed at her mother’s hotel, bhe identified the cheque. Edward Bernard Bohan, teller in the Bank of Australasia at Hawera, stated that he had cashed cheques for the accused, whom he knew.

/ftilhaD' Walsh Wlrightson, accountant in the Bank of Australasia at Hawera, gave evidence that Gustafson had paid £5 into the Regiment’s account in notes and had paid £7 into the account, posting the latter amount from the Trentham Military Camp. Constable Andrews, Hawera, stated that on the night of December 15, the accused was charged and made no reply. A plea of not guilty was entered, and accused was committed for trial af the next sitting of the Supreme Court at New Plymouth, bail being granted on two sureties of £l5O each and self of £l5O.