PROSECUTION he THE MESSRS COLLIE.

Otago Witness, Issue 1244, 2 October 1875, Page 5

PROSECUTION he THE MESSRS COLLIE.

Messrs Alexander and William Collie, of London and Manchester, whose failure and the crisis in the Eastern trade occasioned by it I mentioned last month, were brought up at the Guildhall, London, on July 21, on a charge of obtaining upwards of L 200,000 from the London and Westminster Bank by fake pretences. The gist of the charge against them was that they had conspired together to draw bills which were in reality only accommodation bills, instead of what they professed to be, viz., trade bills given for goods sold, and bearing on them certain marks and numbers purporting to refer to the bales of goods and the accounts in the ledger. The defendants sent the bills to bill-brokers, who negotiated them ; and although in many cases the words "For goods" were not upon them, the marks relating to goods were always there. On examining the defendants' books, which were now in the hands of an eminent firm of accountants, it was found that there were no such goods as those indicated by the marks on the face of the bills. In fact, there were only goods to the extent of LIOO,OOO at the outside to represent the L 1,500,000 or L 1,750,000 for which bills were held by the Bank and other persons. Had the real character of the bills been known, the Bank would never have discounted them to such an extent. It held bills to the amount of half a million, and its ultimate net loss was estimated at between L 200,000 and L 300,000. Both sides seeing the necessity for a remand, it was granted, but a difficulty arose about the bail, the Magistrate demanding LBOOO bail for each prisoner, viz., L4OOO each himself, and two others in L2OOO, or four in LIOOO. As the bail was not forthcoming up to a late hour in the afternoon, the prisoners were taken to Newgate in the prison van, and locked up for the night. Next day the bail was obtained, and the prisoners were released.

Since then the examination of witnesses has been proceeded with, but it is evident that the trial will occupy a long time. Meanwhile the creditors of another firm, that of N. Alexander, Son, and Co., which failed through the stoppage of the Collies, has brought to light a disgraceful state of things. This firm's liabilities amount to £240,535, while the assets are only £34,254, It came out that Alexander Collie had been since 1867 a secret member of the firm, and to the extent that he was, so drew bills upon himself. During the last year the commission bill accepting, which the Times stigmatises as "probably the most disgraceful kind of mercantile imposition of modern days," came into use. In concluding its remarks on the subject, the leading journal says that " like all these mercantile collapses, the more deeply this affair is probed, the more scandalous it appears." The prosecution of the Collies is being watched with the keenest interest by all commercial men, and many sections* of the community.