THE MERCANTILE BANK PROSECUTIONS.

Press, Volume L, Issue 8484, 16 May 1893, Page 5

THE MERCANTILE BANK PROSECUTIONS.

THE BENCH BJYIDED.

A KESOLUTE MAGISTRATE.

An extraordinary scene took place in the City Police Court ou Thursday morning last when the decision of the Bench -was pronounced in the Mercantile Bonk prosecutions. The time fixed for the meeting of the Court was 11 o'clock, and at that hour there was an/immense throng of prominent citizens, whose suppressed excitement indicated the etrong public interest which was felt in the result of the investigation. At ten min"tes past 12 Mr Manton, the Police Magistrate, accompanied by & number of honorary magistrates, who had been present throughout the twenty-nine days the case had been before the Court, took their seats. A deep sensation was caused by the announcement that there was adifference of opinion on the beach, and that only one magistrate, Mr J. McDonald, J. P., favoured a committal, and that only so far as Sir Matthew JDavies and the general manager, Mr Milledge, were concerned* Mr Pan ton, Mr George Craig, Mr Henry Berry, Mr J. Barneit and other magistrates expressed their emphatic opinion that the Crown had utterly failed to establish a case of conspiracy, and that all the defendants should bo at once discharged. Mr McDonald has the courage of his opinions and he stood up alone and contended ..that there was ample evidence to show that Sir Matthew Davies and Mr Milledge had conspired to issue a false balance sheet, with intent to defraud, lie thus expressed himself:'—"This is most unprecented in the annals of this Court, at all events so long as I have been connected with it, that gentlemen should get up and blazon forth as to whether they are in favour of an acquittal or against it. When the names of the Magistrates who have addressed the Court are published, the police will probably arrive at their own conclusions. To mc, as a very old magistrate, the evidence is very dear. The case haa given mc a very great deal of trouble, bnl I must say I quite ooncur in the evidence given by Mr Ducker and Mr Simpson. Mc Ducker's evidence was very clear and dietinct, indeed he was never asked a question by the Ccown that he was not in a position to answer, end the answers came direct from the books 61 the Company which were irrefutable, and so with. Mr Simpson, of whom the defence did not deign to ask a question. Why, if Mr Simpson's evidence was contrary to .truth, was lie not questioned and cross-questioned! No, it did sot suit the defence to do so. Now, I only say that I believe with Mr DueKery and with his figures* that there, uere £200,000 of bad debt 3 in tiie hooks of the Company, and that they had only written off £5000 of that amount. Notwithstanding that they ; could produce a profit of £26,000, and declared » dividend of 8 per cent. That was done in face of the fact that Mr Milledge writes to Ixradou to cay that the position is critical, that in fact, it La dangerous. I say, that from all the facts, (he defendants are guilty. They brought forward a profit of £20,000 when they had to import £100,000 from other Banks on the other side of the street to strengthen their coin. 1 look on that as a fraud. While they Are eudeavouring to get £40,000 from England Mr Mil* ledge writes a letter, no doubt with the concurrence of the Board, without which he could not act, saying that things were critical, and, in fact;, were dangerous; Then Mr iSimpsoa is called as a professional accountant, and says that the Bank had been insolvent for two years, and nob one of the opposing counsel, who have so eloquently pleaded the case of the defendants, have dealt with that point. It has always been my principle on the Bench not to say anything, and to keep the other Magistrates quiet $ but I may say that I am not at all interested in this Bank, nor have 1 any friend that is. Not one of the defendants have spoken to mc as to what opinion I should give, or tried to influence my opinion. I shall say no more than that I have come to the conclusion that two of the defendants should be committed for trial. The counsel for these .two defendants hereupon asked for an adjournment till Monday, to allow them to determine whether they should produce evidence. - The Court consequently resumed yesterday, wben Sir Katthew iJavies made a lengthy address to the Bench, which now consists merely of Mr McDonald. Great interest continues to be' taken in the c&ee. The action of Mr MoDomJd is looked upon with great favour by the general

public, as it is felt that the case is one which should be dealt with before the Supreme Court, aud it is at preeent regarded as cerUin that Mr McDonald will persist in lib intention to commit, notwithstanding Sir M. Daviee's pleadings. The present charge is of conspiring to issue a false balance sheet, and conspiracy in such matters is always difficult to prove. A second charge hangs over the defendants of concurring in tho publication of the balance sheet, and it has been resolved hy the Crown Law Department- to proceed with this charge against Sir M. Davicn aval Mr Milledge, no matter whether a committal is made on the present charge or not.