FIVE YEARS' IMPRISONMENT

Evening Post, Volume LXXIII, Issue 29, 4 February 1907, Page 7

FIVE YEARS' IMPRISONMENT

c CANADIAN FINANCIER SENTENCED. [r-RRSS ASSGCI4TIOS.I OTTAWA, 2nd February. Sentence of five years' imprisonment has been passed on Charles M'Gill, oxmanager of the Ontario Bank, for making fahso returns to the Dominion Government regarding the bank's financial position. The Ontario Bank was absorbed in October last by the Bank of Montreal, owing to deficiencies totalling a quartpr of a million sterling. It seems that alleged assets, which had actually no existence, were carried on the books of tho bank, giving the impression that tho institution was in a much stronger financial position than was really the case. There was, for instanco, one item of 778,000 dollars carried under the head of "other securities," which securities were not in existence at all. It appears also that a loss of no less a sum than 485,000 dollars occurred in stock transactions carried on through the agency of a prominent New York broking firm. The losses by speculation in Minneapolis and St. Louis railway stock, it was stated, amounted to 170,000 dollars. These four items gave a loss of 1,653,000 dollars, which, deducted from the paid-up capital of 1,500,000 dollars and the reserve of 700,000 dollars, left but 647,000 dollars of a margin wherewith to boar any possible loss upon 12,000,000 of discounted paper in the bank. The item under the head* of "other securities" and the lost margins in speculations through the New York broking firm were said to have been carried on the books and in the Governmont returns as bona fide assets for some years.. Following on these revelations came the arrest of Charles M'Gill. The information disclosed a charge that he had made false statements intended to decoivo the shareholders and creditors 0" the Ontario Bank —an accusation said to have been prepared for the purpose merely of initiating a prosecution. The document of lesser importance —the summons—charged in effect that G. R. R. Cockburn "willfully" signed false monthly returns of the Ontario Bank to the Minister of Finance. Tho accountants who compared tho monthly statements prepared by M'Gill for the Government with the books for each month as they were coverod by those statements, found that at the end of August tho regular statement was forwarded tj the Department of Finance. The "current loans in Canada" column was filled in with the figures 13,725,277 dollars. The accountants' report, after examining the books, ia that the current loans in Canada, on 31st August, amounted to 12,229,000 dollars, a difference of 1,496,277 dollars.

A recent addition to the undesirables of Wellington was before Dr. A. M'Arthur, S.M., this morning. Her name is Mary Parker, alias Bond, and she waa sentenced to thre-a months' imprisonment for having been found by night without , lawful excuse with threo men on privato property, at No. 5, Marion-street, on 28th January. One of tho men, named Wad«, was recently centenced to six months' imprisonment on a similar charge. The woman Bond wiahed to know this morning w?iy the other two men were not taken into custody as well aa Wade, adding "One of them is my husband . . . one of the very worst menin this town." Tho police explained that thero was only one constable to deal with the quartette, ond that ho arrested as many as possible. Snb-Inspcctor O'Donovan stated that the woman had previous convictions for serious offences at Chriatchurch and Palmoraton North, and remarked that enquiries would now bo made about hor husband. For insobriety Richard Dunn and Wm. Stewart weTo each fined 20b, in default seven days' imprisonment. John Macintosh was fined os, in default twenty-four hours' imprisonment, one first offender was fined 10s, in default forty-eight hours; and three others were each convicted and discharged. Esther Collior was ccnUnced to one month's imprisonment for having importuned in WiflTs-slTect. Tomorrow at 2 o'clock Meg«r». W. H. Morrah and Co. will noil by public auction in their room*, Willia.Btroet, hounohold furnituro and tundrieß, tho contents of a eix-roomod houio. Miss Richmond's Bowon-ntreet School will bo carried on as utual during her atuenca in England. Thu Kelburuo branch will be oloied for tht praitnt.