Depositor, Identity of.

(4) DISPUTES IN SCOTLAND.

(a) Albert Coutts. Savings Bank of Glasgow, 1177. 4s. 10d.

Award issued 29th January, 1925.

The account stood in name of Albert Coutts with the Savings Bank. By virtue of two Extract Registered Protests by the Sheriff, arrestments were used in the hands of the bank at the instance of creditors against Lazarus Katz and Abraham Katz jointly and severally arresting the sum at the credit of the above account. Subsequently an action of furthcoming was raised. The bank refused payment and the claim was referred to the Registrar.

The Registrar ascertained that the bank had no depositor of the name of Abraham Katz at the address given, but had a depositor at that address known as Albert Coutts.

After considerable correspondence, it was proved that Albert Coutts and Abraham Katz were one and the same person, and the Registrar awarded payment to the creditor of the sums craved for, and for payment of the Treasury fee out of the account.

(b) Michael Mochan. Savings Bank of Glasgow, 601.

Award issued 11th March, 1925.

Mrs. Mary Bush, widow of Michael Bush, applied to the Savings Bank of Glasgow for payment of the sum at the credit of the account of her late husband. Payment was refused, as she was unable to produce the bank book, and moreover that there was no account in name of Michael Bush, although there was one in name of Michael Mochan at the address given.

The applicant explained that her husband had assumed the name of Michael Mochan. The bank were unable to accept the statements without proof and the claim was referred to the Registrar.

The Registrar fixed a Diet of Proof.

After considering the evidence, the Registrar formed the opinion that Michael Mochan and Michael Bush were one and the same person, and awarded payment to the next of kin of the deceased in terms of the Intestate Moveable Succession (Scotland) Act, and also for payment of the expenses out of the account.

(c) Miss Alexanderina McAndrew. Savings Bank of Glasgow, 150l. Award issued 27th March, 1925.

The depositor called at the bank for payment of her deposits in March, 1925. On comparison of her signature with the specimen signature in the declaration book the bank refused payment and the claim was referred to the Registrar.

The Registrar made enquiries and received declarations, duly deponed to, from various witnesses certified as to the identity of the depositor with the account.

Award in favour of the applicant and for payment of the Treasury fee out of the account.

Deposits, Withdrawal of.

Annie C. Massie. Savings Bank of Perth, 201.
Award issued 22nd April 1925.

Mrs. Annie Duff or Chisholm opened an account with the Savings Bank of Perth in name of Annie C. Massie, a minor-her grandniece, and placed to the credit thereof the sum of 201. She retained the bank book.

Deposits, Withdrawal of (contd.).

The said Mrs. Chisholm died in November, 1924, and subsequently her furniture and effects were sold by auction. After the sale the pass book was presented to the bank by a man called Chas. W. Masterton, known to the bank officials, who requested payment of the sum at the credit. He explained that a man in a sale room in Perth had handed him the bank book and requested him to go to the bank and uplift the money for him, the reason for the request being that the man in question could not leave the sale room as he was anxious to secure a certain lot of goods which were for sale.

The bank official informed Masterton that as the depositor was a minor her father would require to sign, and he handed the messenger a receipt for signature of the father. Masterton returned with the receipt signed "Robert C. Massie." On production of the receipt so signed the official paid the money to Masterton.

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Thereafter it transpired that " Robert C. Massie was not the name of the father of the child but Frederick S. Massie.

Frederick S. Massie some time later called at the bank and requested payment of the money at the credit and on being told that the account was closed, and on being shown the receipt signed "Robert C. Massie he immediately repudiated the signature and demanded repetition of the payment from the bank, who declined liability.

The claim was then referred to the Registrar who held a Diet for Hearing at the request of the agents for the parties.

The claimant's agent stated that he did not think Rule 13 of the bank applied in the exceptional circumstances of this case, but pled negligence on the part of the bank in handing over the money to Masterton, who was known to have no connection with the account. He further averred that it was the duty of the bank to have satisfied themselves that the signature of the guardian produced, was genuine, and held that the bank should make payment as they had paid over his client's money without his client's legal authority.

The agent for the bank stated that the bank had acted in accordance with Rule 13, and that if the bank book had been lost they had no intimation thereof, and that they had issued instructions to depositors that they would not be responsible for loss sustained in the event of a book being lost.

It appeared to the Registrar that Mrs. Chisholm had so hidden the bank book that it was not found when her inventory was made up.

The Registrar considered the evidence led and came to the conclusion that the bank official did not exercise proper care in dealing with this particular transaction and it seemed to the Registrar that the duty of the official was to ascertain further particulars regarding the minor and obtain proper authority for payment of the money.

In the opinion of the Registrar, when the account was opened the name and address of the guardian of the child should have been recorded.

As, however, it transpired that the signature which induced the official to pay the money was a forged one, the Registrar found the bank liable and awarded payment to the depositor, and also that the bank should pay the Treasury fee.

Depositor, Identity of.

Creditors' Claim. Claim by Parish Council for maintenance.

Mrs. Elizabeth Palmer. Savings Bank of Glasgow, 3921.
Award issued 29th January, 1925.

On 6th April, 1915, Mrs. Elizabeth Palmer Duffy or Smith, along with her husband, became chargeable to the Parish Council of Glasgow. Later the said Elizabeth Palmer Duffy or Smith was certified insane and was removed to Woodilee Hospital, and then found to be in possession of the above bank pass book. The Inspector made application for payment of the sums due to the Parish Council, but the bank refused payment and referred the claim to the Registrar.

The Registrar after investigating the case called upon the Parish Council to produce evidence in support of their claim that the said Elizabeth Palmer Duffy or Smith and Mrs. Elizabeth Palmer were one and the same person.

A Diet of Proof was held in Glasgow and Proof led.

The Registrar then awarded payment to the Parish Council on the usual letter of indemnity and for payment of the expenses out of the

account.

Withdrawal, Disputed.

Colinton and Currie R.A. Chapter No. 431. Edinburgh Savings Bank, 291. 08. 7d.

Award issued 29th January 1925.

The depositors applied to the Savings Bank of Edinburgh to ascertain the state of their account on or about October, 1924, and were then informed that the account was closed.

At the audit in October, 1923, the Chapter had in current account 731. 4s. 6d., and the two persons authorised to sign for the withdrawal of the money were Mr. John Scott, Treasurer, and Mr. A. B. McCall, Scribe E. Specimen signatures of these officials were in the possession of the bank.

Subsequent to the last mentioned date sums amounting to 291. Os. 7d., were withdrawn from the account, and the depositors claimed that same were irregularly withdrawn and held the bank liable.

The bank repudiated any irregularities and held that in accordance with the instructions of the Chapter they had paid the amounts on presentation of sufficiently correctly signed withdrawal forms.

The claim was referred to the Registrar who fixed a Diet of Proof. The claimants case was based on the fact that on the withdrawal form for 201. the signature of Mr. A. B. McCall was a forgery and the signature of A. B. McCall on the withdrawal form for 91. Os. 7d. was so lightly written as to be almost undecipherable, and should not have been accepted by the bank officials, as it appeared to be irregular.

The bank admitted having made the payments, but that same were made in accordance with the regulations and rules of the bank.

At the Proof it was disclosed that the said John Scott and A. B. McCall were authorised to operate upon the account, and in the ordinary course of business the accounts should have been passed for payment by the Committee and instructions given for withdrawal of the amounts required. It transpired, however, that this was not done, and that the

Withdrawal, Disputed (contd.).

said A. B. McCall treated his responsibilities regarding signing of withdrawal forms so lightly that he admitted he may have signed several blank forms and handed same to John Scott.

Mr. A. B. McCall stated that on his appointment as Scribe E he called at the bank and signed the Declaration book, but on demitting office he did not communicate that fact to the bank--he did not consider that his duty.

Several witnesses gave evidence, and the Registrar considered same very fully, and formed the opinion that the withdrawal form for 9l. Os. 7d. was signed by John Scott and A. B. McCall, but was of opinion that on the withdrawal form for 20l. the signature of the said A. B. McCall was a forgery, but that it was such a colourable copy that the bank official could easily be deceived in making the payment, and as was urged by the claimants it was natural that a withdrawal form presented by a Teller of the Bank of Scotland on behalf of a body of Freemasons would be accepted as genuine. It, however, was quite apparent from the evidence led that the signature was a forgery.

The Registrar thought that if the Chapter and its officials had exercised the ordinary care which was incumbent upon those who were acting in a fiduciary capacity, the irregularities could not have taken place, and further, that if the bank book had been periodically submitted to the bank the irregularities would have been discovered long before they were. He thought the bank could rightly urge negligence on the partof the depositors in the delay which had occurred in informing them of the irregularities. The bank were quite unaware of the changes which had been made in the Office bearers of the Chapter.

The Registrar therefore found that negligence had been proved to a considerable extent on the part of the depositors, and that the bank had strictly conformed to the regulations and rules of the bank in the performance of their duties. Notwithstanding, they were deceived by a colourable representation of the signature of the said A. B. McCall on a withdrawal form which signature was a forgery.

The Registrar accordingly found (1) that the claimants had failed in their case regarding the withdrawal of £97. Os. 7d. and (2) that the bank having paid the 201. by a forged signature were liable for same, less any sum which he considered the claimants should bear on account of the contributory negligence, which sum he fixed at 67. 108.

He awarded that 137. 10s. should be placed to the credit of the account, and that the Treasury fee should be paid by the bank.

5. Private Bills.

Reports on the following Private Bills were made to the Treasury by the Chief Registrar and transmitted to the Lord Chairman and Chairman of Ways and Means :

Manchester Ship Canal Bill.

Tyne Improvement Bill.

Clergy Pensions Measure.

Colonial Bank Bill.

6. Public Auditors.

Thirteen Public Auditors were removed from the List on death, 13 on resignation, 5 through failure to render any return as to their audits, 2 as a result of inefficient audits and 2 for special reasons which are set out below. Numerous applications were received for appointment and selections were made by the Treasury on the recommendation of the Office which brought the number of auditors included in the List for 1926 up to 1,118, or 3 less than in the List for the preceding year. Taking into consideration only those societies (other than Collecting Societies) where appointment of a Public Auditor is required by statute, the average number of societies per Public Auditor was 5.3 for England and Wales and 4.8 for Scotland.

The following table is compiled from the Returns made by Public Auditors and gives a comparison between audit work performed on 1923 and 1924 accounts:

† Disregarding quarterly or half-yearly audits.

Section 1 of the table relates to societies registered under the Industrial and Provident Societies Acts; section 2 to Ordinary Friendly Societies, Orders and Branches and other societies (including Collecting Societies) providing Friendly Society benefits; and section 3 to societies registered under the Friendly Societies Act, which do not provide Friendly Society benefits (e.g., Working Men's Clubs, Specially Authorised Loans Societies, etc.).

Part of the increase in fees was due to Collecting Societies, the accounts of which for 1924 and onwards are required by the Industrial Assurance Act, 1923, to be audited by a Public Auditor.

The date by which Public Auditors are required to furnish their Returns of Audit Work has been altered from 1st May to 30th June. This extension has reduced the number of letters calling attention to defaults. Ninety-one default notices were sent, and in November further reminders were despatched to 18 auditors whose Returns were still outstanding and from whom no explanation of the delay had been received.

The circumstances in which two of the auditors referred to in the first paragraph of this section were removed from the list are deserving of special mention. In both instances it was found that they had, by arrangement, appended their signatures to accounts the audits of which had been completed by other accountants.