5 November 1936

CAUGHT BY A CONFIDENCE MAN

One Way Of Making A Store Pay

In 1904 I advertised for a person with capital to join me in a business proposition; and received an answer from a Mr. McTavish. I replied to him, and we met and discussed the matter. After several meetings I decided to join him in a business venture in Western Australia, where he had acquired a general store. The district was a good one, good average rains could be depended upon, wonderful crops were reaped, and the farmers generally were prosperous. The former proprietors of the store had allowed the business to languish through want of capital. They were unable to keep a sufficiently large stock for the growing needs of the district, and consequently farmers and others had to secure their supplies else where.

It took me a few weeks to wind up my affairs in Adelaide, and I reached Western Australia about a month after McTavish. He received me very cordially, and shed for a time the reserve which up to then had been such an outstanding trait in his character. The reason for this cordiality did not dawn on me at the time, but I had not long to wait to find out that it was but a variant of the confidence trick, and that he had caught me in his net.

McTavish got down to business straight away with regard to carrying on the store. I agreed to accept the management at £250 per annum and to invest my capital (fortunately for me not as a partner). McTavish produced an agreement, which was drawn up in a most masterly fashion. Each clause was set out concisely, clearly, and in proper legal form. Even the pages were joined together with sealing wax, and the document was finished off with seals. This agreement was duly signed by the parties thereto. Several of the employes of the old firm were retained, among them being Mr. Jones, the accountant. I also found a position for my brother Bill.

McTavish started to make things hum. He apparently had unlimited re sources at his command and every commercial traveller that called upon could be assured of an order. Nearly every wholesale firm in Western Australia was patronised to such an extent that in a few weeks McTavish's total commitments were in the vicinity of £10,000. The arrival of such huge quantities of merchandise quickly filled the store, and the bulk store was also filled to capacity. The farmers were pleased to be able to get all their requirements at the store. The prices charged were to their liking, and every thing seemed to be opening up most auspiciously.

On one occasion McTavish said to me, 'Do you think that Jones is honest?' I answered, 'Now that you speak of it, I am dubious. If you wish I will test him out.' He said. 'Do so please.' I laid a trap for Jones. A few hours afterwards I was able to report to McTavish that I had caught him.

At the close of the day McTavish said to me, 'I want you to get Jones's key of the store. As he sleeps in the same room as you do at the hotel, it will be an easy matter for you to take it from his pocket whilst he is asleep.' The audacity of McTavish's proposition astounded me. I exclaimed, 'How dare you ask me to do such a thing! Do you expect me to rob a sleeping man? If I were to do such a thing, it would leave me open to be classed in the same category as Jones.' McTavish replied, 'I must have the key before I discharge Jones.' I said, 'Leave the matter to me. I will get the key without resorting to robbery.' I did so. Jones was discharged next morning.

I suggested to McTavish that the position of accountant might be filled by my brother George, who was employed in a bank. He was a very capable clerk, good at figures, and I felt sure that if the position were offered to him he would accept it. McTavish offered no objections, and asked me to communicate with my brother, who lost no time in accepting the position. George had not been told the name of the accountant whose place he was to fill. Soon after he arrived from Adelaide and was taken into the office his eye caught sight of some writing on a small card at the back of the desk. He said, 'I know the writer of that card. He worked with me in a bank in Melbourne five years ago. He was summarily dismissed from the service. His name was Jones. Not long after Jones's services had been dispensed with, he forged a cheque for £1, and was sentenced to 12 months' imprisonment.

With the near approach of Christmas business increased. The turnover had doubled in a month. It looked as if McTavish had struck a little goldmine, and, incidentally, my prospects of getting the 10 per cent, interest I had been promised on my investment seemed rosy.

Early in January McTavish told me that he was not feeling well. He said that he was run down and that he must hare a holiday. He intended going to Busselton for a couple of weeks. He asked me to do my best in his absence. I asked him to give me his address at Busselton. He said that he would sooner not In fact, he said— 'I may change my mind and not go there. I am looking for a quiet holiday, so that I may forget business altogether.'

Before he left on his holiday he gave me strict instructions to bank all money I received dally at his bank in Northam. About the middle of January Mc Tavish left for his holiday, ostensibly to Busselton. He travelled fairly light. He took with him two suitcases, a kit bag and rug. Subsequent events, however, proved that the greater portion of his luggage had been quietly spirited away unknown to anyone.

For the first week after McTavish left I paid all the money I received, which amounted to several hundred pounds, into his accounts as instructed. I then found that replacement of stores was necessary, and, as I had no authority to order goods, I held the cash, so that I might procure them. I discovered that there was insufficient cash with which to carry on, and, as I did not want to suffer the loss of business. I borrowed £400 from my brother Bill. It was shortly after this that it seemed to dawn on me that perhaps things were not quite O.K. I had not used all of the £400 which Bill had lent me, so I gave him the balance I had in hand and set out to get the remainder. This I did in a few days, and gave it to him. I longed for the return of McTavish.

Three trucks, laden with cornsacks had been forwarded to us by a Fremantle firm, but had been over-carried by the railways to the next station. These were urgently needed by the farmers, who had been advised that they would be available for delivery on a certain day. Many of them came in from a great distance for the express purpose of getting them, and when they found that they could not get de livery of the sacks they were dis gruntled. I told them that it was the fault of the railway people, but nothing I could say would appease them. This incident upset me, and I came to a quick decision. I decided to communicate my fears to the six largest creditors. I sent a telegram to each of them, to send a representative to the township that night.

At midnight the train arrived with five out of the six firms' representatives. For four solid hours the conference lasted. I was the star performer I was bombarded with questions from all of the creditors. They were suspicious of me. They seemed to have made up their minds that there had been collusion between McTavish and me. I was eventually able to convince them that there had been no collusion between us. At their request I opened the safe. It contained nothing of value. I told the creditors' representatives that I was not a partner in the firm, but had put some capital into it, which was to bear interest in accordance with an agreement I entered into with McTavish. At 4 a.m., just before the conference closed, the director of a firm which was involved to the extent of £900, said to me: — 'We are indebted to you for your prompt action in notifying us of the position. The answers to our questions have the ring of truth in them, and later, if we confirm your statements, we shall see that you are treated as an ordinary creditor. We shall see that your capital is returned to you intact. We ask you to carry on, for the present. In a day or two we shall decide what course we shall adopt.'

After I had had breakfast that morning I decided to replenish my wardrobe while I had the chance. I made out a docket for the various articles which I had taken, and put the docket book in the safe. Northam was about 30 miles away, and I decided to go there and consult a solicitor, and find out from him what was the best course for me to pursue. The solicitor told me that it was very lucky for me that I was not a partner, or things might have gone hard with me. He advised me to secure a room and take goods to the value of my investment; to lock it up safely, and defy anyone to interfere with it. I then told him what the director representing the largest creditor had promised, and said that I considered his advice absolutely dishonest in view of what the director had said to me.

On my return from Northam I found two detectives' waiting to interview me. They took me into the store and subjected me to a lengthy cross-examination, after which they said they would like to inspect my room. I took them over to my room, and when they found the supplies of men's clothing, brand new, they seemed to be quite cheerful and happy. They asked me where I had got all this stuff. I told them, and invited them to check it off with the docket I produced. That ended the interview.

The Official Receiver in Bankruptcy then took a hand in the affairs of McTavish and sent an officer to carry on, and I was appointed as his understudy. Diligent search for McTavish was being made by the police. Busselton was combed, but no trace of the sick man was found; lists of passengers on boats which had left during the past few weeks were carefully scanned without result. McTavish's statement that he was proceeding to Busselton was mere bluff. When he arrived in Perth he purchased a number of leather kit bags, suit, cases, and jewellery (on credit), and then vanished into thin air.

A fortnight before the hue and cry had been raised about the disappearance of McTavish the steamer Coolgardie sailed from Fremantle. When she arrived at Port Adelaide a little man disembarked. Mr. Segerlind, a detective, who was on duty on the wharf, noticed the large number of kit bags and suit cases brought ashore by this man. His suspicions were aroused and he made a mental note of the happening. The little man went up to Adelaide, where he remained for a few days. He then returned to Port Adelaide with his kit bags and suit cases, and was seen by the same detective to embark on a steamer which was on the point of leaving for Melbourne, Sydney, and Brisbane. The detective was more than ever convinced that this man should be put under surveillance, and reported the matter to the authorities in Melbourne.

When the steamer reached Melbourne detectives went down to the boat and gave the man a look-over. A report was then sent on to Sydney. The steamer left for Sydney with the man on board, and when she was midway between Melbourne and Sydney news was received by the authorities in Sydney from Perth, notifying them of the mysterious disappearance of McTavish.

On the arrival of the steamer in Sydney the detectives were quite sure the man who was travelling under on alias was none other than McTavish. The Perth authorities were notified that he had booked his passage through to Brisbane and were asked whether he should be arrested. The answer came back to let him proceed to Brisbane.

The steamer reached Brisbane, and Detective Mey was in waiting for his suspect. He witnessed the booking of the little man's bulky luggage at the Roma street station for Toowoomba. The little man then proceeded to a hotel carrying a bag. The detective gave him time to book his room and make himself comfortable before interviewing him. Mey then went up to his room and requested an interview with him, which was granted. The detective asked him if he came from Western Australia, and whether his name was McTavish. He stoutly denied that it was. The detective then said that he would like to inspect the contents of his bag. This he did, and choosing a writing pad which had been little used, he lifted the blotter to the light of the window and reversed it, when several signatures of McTavish were revealed.

The detective said, 'I arrest you, Mc Tavish.' He then took him to the railway station and ordered his goods to be held until further instructed. McTavish was eventually lodged in the Perth gaol, his first appearance being at the police court. He was committed for trial from there to the Supreme Court. The case was temporarily held up pending the arrival of the detective from Brisbane. The stage was now set for the hearing of the case. I was the principal witness and had to undergo a gruelling cross-examination by the solicitor for the defence. The judge several times protected me, and on one occasion told the defending counsel to get off the questions of finance on to something else. He added, 'The witness has answered all your questions fearlessly and honestly. Had I been placed in similar circumstances I should have acted similarly.'

McTavish got two years. The bankruptcy proceedings cost the creditors over £1,000. The estate paid 12/ in the pound on a total of about £10,000. The business was a good one, and whilst being conducted by the Official Receiver showed a very fair profit to the creditors. The promise made to me by the largest creditor was never honored. I had to rank as an ordinary creditor.

My people, who were living near Hamilton, New Zealand, subsequently put me in possession of the facts regarding McTavish's escapade in that town. When he was discharged from Fremantle gaol he was met at the gaol gates by an officer of the New Zealand police, who arrested him and escorted him back to Auckland to stand his trial for fraudulent practices. McTavish was booked in at Mount Eden gaol for, I believe, two years. From then on he faded out of the picture.

How he was able to gain the confidence of astute business men was always a mystery to me. I was in New Zealand in 1930-31 and stayed with my brother Bill. I asked him if he had ever seen McTavish since 1905, and he said, 'Yes, once in Wellington. He came up to speak to me, but I cut him.'

Bill also told me that some large electrical machinery was to be erected in New Zealand. Advertisements were inserted in the papers for an engineer to supervise its erection, and McTavish applied for and got the Job. He was a qualified mechanical engineer.— A.J.P.