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LIVERPOOL BANK: FRAUDS.,1._.…

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LIVERPOOL BANK: FRAUDS. ,1. I r « i GOUDIE AND OTHERS AT BOW-STREET. Richard Barge, Thomas Francis Kelly. and Thomas Peterson Goudie were brought up 'before Mr. Fenwick) at Bow-street Police- court on Monday charged with feloniously uttering cheques of the total value of £170,000, knowing the same to be forged. Keen public interest was shown in the pro- ceedings. and the demand for admission to the court was much greater than could be accommodated in the available space. Mr. C. F. Gill, K.C.. and Mr. C. Matthews appeared to prosecute on behalf of the Bank of Liverpool; Mr. Mellor appeared for Kelly. Mr. Horace Avory, K.C., and Mr. Biron for Burge. and Mr. F. E. Smith for Goudie. Mr Harold Lloyd, solicitor, of Cardiff, attended to watch the proceedings on behalf of certain interested parties residing in that town. Mr. F. E. Smith made a preliminary appli- cation that the whole or part of the JE280 found in possession of Goudie should be retained for the purposes of his defence. It was within the discretion of the magistrate to grant this. if it was thought fit to be con- sistent with the interests of justice. Mr. Gill, for the bank, adopted a neutral attitude, and the magistrate refused the ap- plication Mr. Gill proceeded with the opening state- ment on behalf of the prosecution. He said the prisoner Goudie was a ledger clerk in the Bank of Liverpool, and it was his duty to enter in these ledgers the accounts of cus- tomers. ranging alphabetically from H. to K. He had to enter to their debit cheques, which we.-e paid out by the bank. and to mark cor- responding entries in the customers' pass books. Goudie had an opportunity of handling the cheques, and apparently made a careful study of the signature attached to tho, chequee of a large customer named R. W. Hudson. He stole &ome of thoae cheques to practise the signature until he became able to forge it with great facility. He shortly afterwards forged cheques which were cashed to the amount of £169.000. When these forged cheques came back to the bank they went in the ordinary course into the hands of Goudie, who destroyed them, and others of them were afterwards found in his lodgings. The methods by which Goudie was able to carry out his plans would involve an exhaustive and elabo- rate explanation. The prisoner Goudie ad- mitted some of the forgeries, but there was some question on his part as to the amounts. Although skilled and trusted as a bank book- keeper. Goudie showed extreme simplicity— and, indeed, amazing credulity—in his belief in certain betting men with whom he became acquainted one day towards the end of 1900. when he was returning by train from New- market. One of these men was the prisoner Kelly, and the other was a man named Styles, with whom, at their invitation, he played a game of solo whist. Their acquain- tance rapidly ripened on the basis of racing types, and within a few weeks Goudie was communicating by letters with Kelly and Styles, remitting them from time to time sums amounting to many thousands of pounds for bets on horse races. Goudie seemed to have believed everything they told him. Kelly and Styles appeared to have been acting together in concert instead of acting separately and independently, as Goudie seemed to have believed. In October of this year it became known to the prisoner Burge that Jxelly and Styles had a source from which large sums of maney could be obtained. Burge had a close, intimate, personal friend named Mances, and he knew a man named Laurie Marks. It was determined that Goudie should not be left entirely to Kelly and Styles. Consequently Goudie waa interviewed at Liverpool by Mances between the 24th of October and the 14th of November. A sum of £91.000 was paid in six cheques by Goudie into Marks's account the arrangement apparently being that Goudie should suppose that the money was to be used on his behalf by Marks in backing horses at races, but no bets were made. and as soon as the cheques were obtained the proceeds were at once divided in the proportion of one-half to Burge, one- third to Mances. and one-sixth to Marks. Ae loon as the frauds were discovered Styles and Mances absconded. Marks was alleged to have committed suicide. The evidence was then proceeded with. The first witness was a book-keeping clerk employed by Marks, and he gave evidence with some detail as to Mances and Burge having almost daily frequented Marks's office and transacted business there. The books did not contain a record of any betting transactions with a man named Scott. On the 2nd of November a telegram, signed "Marks," was sent to "Scott, Liverpool": — I am doing no business to-day. Will arrange for next week, so you are not on." Witness saw from reference to the books that Marks was doing business on that day. A further telegram was sent to Scott on the 11th of November, viz.Marks is very sick. I cannot do business without him.—Gargled." The signature to the telegram, viz., "Gargled," was Marks's telegraphic address. Mr. Marks was doing business on that day. but witness did not know of any customer of Mr. Marks's having £10,000 on the horse Samson, which upon that day won the first race at Leicester Witness gave similar evidence with regard to a. further telegram. Mr. Marks's average bet might be a sovereign, but he tooV iiany at half-a-crown and 5s. His average _«.kings on an ordinary da) might be about £20. out of which payments had to be made. Witness had no knowledge up to the time that Marks went away that he had any customers of the name of Goudie or Scott. Cross-examined by Mr. Avory, witness said he had seen telegrams to and from Scott, but he did not know that Scott was a customer nor had he any idea that Scott was a bank clerk. Marks was often late in arriving at the office on account of the state of his health. Burge did not at the office open any letters addressed to Marks, but only telegrams, which they often opened in the absence of Marks Burge was at the office on Saturday, the 23rd of November, the day the bank case was pub. lished. and asked witness where Marks was. and why he had not turned up at the office. He introduced Burge to Marks's brother, who was then at the office. Marks was an American. Mr. R. W. Hudson, Liverpool, the next witness, said that for many years past he had an account in the Bank of Liverpool. A list of cheques was produced, not one of which had been signed by him, although purporting to be signed by him. He identified a small packet of his cheques, which were genuine. He also identified several cheques, which, although no- signed by himself, bore a very good imita- tion of his signature. He saw upon the back of a cheque produced some efforts to imi- tate his signature. He had no transactions whatever in connection with the turf. Mr. Shanwood, manager of a branch of Lloyds Bank in Liverpool, said that on the 6th of December, 1899, the prisoner Goudie called upon him, and introduced himself as John Styles, oil and colour merchant. He asked the witness to collect for him a cheque, which he produced, purporting to be drawn by Mr. R. W. Hudson upon the Bank of Liver- pool. Witness had it collected, and Goudie got the money three days later. The prisoner Goudie called upon witness next on the 22nd of March. 1900, and desired to open an-account in the name of J. Styles." For that purpose Goudie presented first a cheque for £ 300, and afterwards a cheque for £ 400 and one for £ 600. all purporting to be drawn by E. W. Hudson upon tne Bank of Liverpool. Other similar cheques for £600 followed. In November. 1900. a similar cheque for £1,400 was handed in by Goudie, who obtained a draft for £1.300. payable to T. F Kelly. In like manner on the 16th of November Goudie handed in a cheque for £3.000. obtaining at the same time 8 draft upon the London office of Lloyds Bank in favour of- Kelly. On the 30th of November a similar transaction for upwards of £2.000 took place. The examination of witness was continued with reference to like transactions in large amounts in 1901. One of the drafts early in that year was in favour of W. H. Styles. On the 13th of April Goudie paid in a cheque for £5,000, and shortly afterwards got a draft in favour of Kelly for upwards of £4.000. There had been no alterations in the account since May, 1901. when there was a credit balance of £176 18s. 6d. That remained in the hands of the bank under an injunction. All the cheques to which he had referred purported to be drawn by R. W. Hudson. Witness was examined by Mr. Mellor on behalf of the prisoner Kelly. and stated that he had no suspicion about the cheques. A cheque being credited by the bank upon which it was drawn would naturally disarm any- body's suspicion. The increasing magnitude of the transactions had not excited the mis- givings of witness. Mr. Thomas Glencross, of the General Post Offioc, gave formal evidence as to the pro- duction of telegrams. Mr. G. E. Steel, a cashier in Lloyds Bank London, also gave formal evidence, producing the drafts already referred to from their branch at Liverpool. Most of these were pre- sented by the prisoner Kelly. The prisoned were then remanded for a week. Before the court adjourned Mr. Biron pleaded that Burge should be admitted to bail. The Magistrate said he would give the appli- cation every consideration, but he could not accede to it at present. TWO MEN CHARGED WITH BEING ACCESSORIES. At Liverpool on Tuesday (before Mr. Stewart, Stipendiary magistrate) John Aitken. of Liver- pool, and John Roberts, of Seacombe, were again charged with being Accessories after the fact in the charge against Thomas Peter- son Goudie, the Liverpool bank clerk. After some discussion the accused were remanded for four weeks, bail being accepted1 foTMMhinjESS

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