THE MERCANTILE BANK

Otago Daily Times, Issue 9564, 21 October 1892, Page 2

THE MERCANTILE BANK

MEETING OF CREDITORS,

fßy Slectmo Telegraph.—Copyright. ! (Per Press Association.)

London, October 19,

(Recsived October 20, at 10.35 a.m.l

The creditors of the Mercantile Bank of Australia have resolved to obtain counsel's opinion in Melbourne as to the criminal and civil liability of the directors of the bank, and, if there is a reasonable prospect of conviction, will take preliminary steps to get the Government to prosecute them. The meeting refused to hear Mr F. Millidge, late manager, and appointed Mr Stewart liquidator. The latter advised contributors to make the Provisional Committee a permanent one to act with him. Mr Stewart expects there will be but little shrinkage in the London calls. The method adopted by Sir M. Davies and Mr Millidge in making advances to the Davies companies in Melbourne is strongly denounced by the liquidator. At the meeting of shareholders the resolutions carried by the creditors were confirmed.

(Received October 20, at 7.30 p.m.)

At the meeting of shareholders of the Mercantile Bank of Australia, Mr Stewart, the liquidator, declared that the assets of the Davies companies in Melbourne were worth L 174.000. Sir Matthew Davies had virtually controlled the bank, and the directors must explain how they had authorised the advances which had been made by the bauk to Davies' companies.

A shareholder who was present at the meet ing declared that nothing so fraudulent as thi transactions in connection with this bank hac ever occurred iii the history of Victoria.

General Babbage reiterated the charge against Sis' Graham Berry of knowing the condition of tha bank when he sold his shares, and when he arrived in Melbourne of having helped Sir Matthew Davies to delude the local shareholders. He contended Sir Graham Berry was just as bad as the others.

The meeting of creditors represented 670,000 shares, but Mr Stewart stated that 815,000 were still unaccounted for. The books he said had been cooked to conceal the real facts, and he recommended that tho whole capital of the institution be called up ou easy terms.

(Special to Press Association.) London, October 19, (Rsceived October 20, at 7 p.m.)

Speaking at the meeting of depositors in the Mercantile Bank of Australia, Sir E. C. Guinness said the honour of the colony was involved in the affair. Mr Brooks declared the London depositors would not rest until those connected with the management of the institution had been punished

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