EMBEZZLEMENT OF GOVERNMENT MONEYS.

Wairarapa Daily Times, Volume 6, Issue 1685, 14 May 1884, Page 2

EMBEZZLEMENT OF GOVERNMENT MONEYS.

(From the Post.) : The Magisterial investigation into the charge of' embezzlement preferred against William C. Macdermott, late of the Government Insurance Department, was commenced before Mr H. S." Wardell yesterday morning. Mr Izard appeared for the prosecutor. The accused was defended by Mr Fitzherbert,

'Mr Izard having stated the particulars of the case, called David Mitchell Luckie, Government Insurance Commissioner, who deposed that, he knew the prisoner, who in the mpnthiof April of last year was in the employment of the Government, In that month he had charge of tlio cashbox of the Insurance Department, and it .was his duty to bank all moneys in the Bank of New Zealand, paying it intotke.insuranc} account, DrGazo was a'medical officer of (he department, and iu April of lust year (ho amounfc f : due to him was £49 cdJ. Towards the payment of that amount, two cheques were drawn-one being for £4O and tho other for £9 odd. It was accused's duty to pay the cheque of £4s into the bank in order to make up for a like amount advanced to the doctor. At that timo Mr Lyell was connected with the department, and as wituess was away from Wellington' • then that gentleman signed the' cheque in question. Macdermott was. not justified in, cashing the cheque. A Mr JL)akin paid in a .cheque of £7O 8s 4d in connection with the purchase of an annuity, and it was prisoner's duty to pay that money into the bank. On the Bth of February last ho received information that something was wrong with the books. The entry in the book produced was incorrect. Tlio figures should be £7O 8s 4d and nob £3O 8s 4d, as appeared in the entry, which was in Macdermott's handwriting. Tho figure 7 had been erased and a 3 substituted. Several other alterations had been made to make things balance. When he found out this state of things he called the accused into his (witness's) room and asked, him for an explanation. Accused turned over a lew leaves of the book, but did not j>ive any explanation. Witness remarked that accused must have falsified the books and embezzled moneys-of (he Crown, and Macdermott replied in the affirmative, Ho suspended tho accused at once, and reported the matter to the Minister. By Mr Fitzherbert-The accused had been seven or eight years in tlio service of the Government. During the time he had been with witness he had always been well reported upon, and witness had found him such a good servant that he had promoted him to the position of chief clerk.

Arthur Green, a clerk in the Bank ;of New Zealand, Wellington, gave evidence that the cheque for i4O had been cashed at tho bank; it had not been placed to the Insurance Department. A cheque for L7O 8s 4d had also been paid in. :By Mr FitzherheiW —He had known the accused for somo time as a man of good, charactor, and was surprised to learn of the present charge J. H. Richardson, accountant in Ihe Insurance Department, stated that ho know the handwriting of the accused. The bauk slips were both in Macdermott's handwriting. In regard to tho entry re Dakin's cheque, a previous figure had been erased, and the figure 3substituted. [The witness explained. • how different figures had been made to balance,] The effect of the alterations was to make the books balance.' This closed the case for the Crown. His Worship thought that tho case TO one which could be met by summarily dealing with it.

Mr Izard said it was not his intention to offer any opinion on tho subject. He would not object to any course tho Court might think fit to adopt, , Mr Mtzherberfc applied that the case might be summarily dealt with, On being called' upon to plead)defendant admitted that he had been guilty of peculation. . ; :, His Worship said the case was one in which the accused did not possess his sympathy. The. case was a most.painful one,,and, he felt that'the accused must be punished to the fullest extent allowed by law. Tpe sentence of the Court would bo six months' imprison-, ment with hard labor,