MISSING MONEYS.

Taranaki Daily News, 16 February 1922, Page 6

MISSING MONEYS.

DEFENCE OFFICER CHARGED. GUSTAFSON ON TRIAL. CASE NOT FINISHED. The theft of Government moneys amounting to £247 6s lid was the charge preferred against William A. Gustafson, captain of the New Zealand Defence Staff Corps, in the Supreme Court at New Plymouth yesterday. Accused, who was adjutant to the 2nd Mounted Rifles, was stationed at Hawera, and the thefts were alleged to have occurred at various times between June and December of last year, and in various sums ranging from £5 to £5O. The case was conducted for the Crown by Mr. C. H. Weston, and accused, who pleaded “not guilty” on all counts, was defended by Mr. P. O’Dea (Hawera), with him Mr. H. L. Spratt. The following jury was empanelled: Messrs. J. Revell, R. Herdman, S. Oliver, W. Hughes, A. J. Millman, W. H. Holmes, E. J. Elliott, E. Douche, W. B. Kivell, H. W. Baxter, R. C. Cobb, J. Blewman. Mr. Oliver was chosen foreman. Gustafson, according to the case for the Crown, took office as adjutant to the Mounted Rifles Regiment in April of last year. He was stationed at Hawera, and had a big field to cover, the area extending from south of Wanganui to Uruti. A maintenance account, which consisted of a Government grant, was used for various expenditure in connection with the running of the regiment, and was kept at the Bank of Australasia, Hawera. As a paid officer and adjutant, Gustafson had the duty of looking after the finances, and the bank account was operated on by him and Col. Munro (the commander of the regiment). Colonel Munro resided at Wanganui, and was in business there. It was not expected that he should take an active part in the management of the regiment, and he received a distinct order that he was not to consider himself entirely responsible, but that he w r as to rely on the activity and integrity of his paid officer. When Gustafson wanted cheques signed he would send them by post with a memo as to what they were wanted for, and Colonel Munro’s evidence would be to the effect that no cheques went out of his possession signed by both him and Gustafson, so that before they could be cashed at the bank or used they had to be signed by accused. He was in a position of trust. “FAT IN THE FIRE.” The “fat was in the fire” on a certain day in November, the Crown prosecutor continued. While Gustafson was absent at a camp in Trentham Sergeant-Major Rowe, who was left in charge at Hawera, received a letter from the paymaster at Palmerston North, stating that - the maintenance account had been overdrawn to the extent of £6 17s 9d. Of course it was against the regulations, but at the same time this might have occurred through carelessness. The letter was forwarded on to accused, and Gustafson sent back to Hawera the sum of £7, asking that it be paid into the bank. The point for the consideration of the jury was, if the account was overdrawn by acciden(. whether Gustafson would have paid his own money into the bank. As a result of this action suspicions were aroused, and the whole affair was investigated, when it was found that accused had used sixteen cheques totalling £247 6s lid for which he had not ac- I

counted. Against this had to be taken a credit of £3 16s in Gustafson's petty cash, as he showed receipts for £l6 odd, whereas the amount be started with was only £l3. Gustafson had nothing to show for the missing money, neither receipts nor equipment being produced. The maintenance ' books were not entered up at all. Of the £247 the sum of £134 went through the Rutland Hotel account, Wanganui, £22 5s was cashed at Hook’s Hotel, Hawera, and £9O was cashed ovei the counter at the Bank of Australasia, Hawera. It was thought that this was a matter that should weigh with the jury in coming to their decision on the question of honesty or dishonesty. In the absence of explanation the fact that £134 was passed through the Rutland Hotel account was a matter to be weighed, as counsel did not see how it could be expected to find maintenance moneys in connection with a Territorial regiment going through a hotel account. The same thing also applied to moneys cashed over the counter, although not with the same force. While at Wanganui in September Gustafson got Lieut.Colonel Munro to sign a cheque for £5O, purporting to be for payment to the band funds, but it was not given to the band; it went through the hotel account. COURT OF ENQUIRY.

As the result of the occurrence in November, when the bank account was overdrawn, a court of enquiry was set up, and met at Palmerston. During conversation there Gustafson was said to have made an admission that he had stolen the moneys, and to the detective who arrested him at ‘Palmerston North on December 13 he said he would plead guilty to the whole thing. Evidence was called as to the various events connected with the investigation of the state of the maintenance accounts. Captain S. V. Trask, paymaster at Palmerston North, said that during a visit in connection with the enquiry Gustafson asked what moneys were due to him from superannuation and leave pay, stating th-it he intended to pay the whole of the deficiency back. Receipts found by witness accounted for £6l Ils lOd. His Honor: “During the investigations did the accused ever mention a missing receipt or a payment in respect of which a receipt ought to be found?” Witness: “No specific receipt was mentioned.” Lieut.-Colonel James H. White, of Palmerston North, who was president ot the board of enquiry at Palmerston to investigate the accounts, said that when Gustafson arrived witness saw him privately, and pointed out that the state of th» maintenance account looked black for Gustafson. On being asked if he could account for the moneys, accused said: “It is no good beating about the bush; I can’t.” The court of enquiry was not proceeded with, as it was not thought necessary. To Mr. Spratt: Accused had a good record as a soldier, having won the D.C.M. in the field. He was given a commission after the armistice. Captain L. G. Goss, N.Z. Staff Corps, Palmerston, deposed to being present when Gustafson admitted to Colonel White that the cheque for £5O had not been paid to the Wanganui Band, and that he had converted it to his own use. Gustafson was told that there were other amounts involved. “NICE CHRISTMAS BOX” To Mr. O’Dea: Gustafson said it was a “nice Christmas box to get”. He remarked that there should be more receipts than

were collected. Gustafson said that if they gave him a week he could fix it up, but he did not say his own moneys got mixed with the defence funds.

Colonel D. Munro, commanding officer of the 2nd Mounted Rifles, gave particulars concerning the issue of cheques. He signed one cheque for £5O for the band, but Gustafson came to him later and said he had held the cheque over after a conference with the commandant, in view of the fact that a camp might be held. He was doubtful whether he signed a second cheque for £5O. The letter “D” in his signature seemed foreign. Some of the cheques were

To Mr. O’Dea: He did not consider he was the officer responsible for the keeping of accounts; the duty was on the paid officer and the adjutant. He had not adopted the precaution of crossing cheques, but would have done so had he known with whom he was dealing. In any case the cheques were not negotiable till signed by Gustafson. v The depositions of George L. Buckley, lieutenant bandmaster, Wanganui, were put in by the Crown. The statement concerned the proposed payment ot £5O to the band. Buckley said he had not received the amount, and was informed by Gustafson that it had been decided to defer the grant till the end of the year. The case for the Crown was proceeding when the court adjourned till to-day.