STAY OF PROCEEDINGS

Southland Times, Issue 21561, 26 November 1931, Page 7

STAY OF PROCEEDINGS

BRITANNIA BANK CASE. (United Press Assn.—By Telegraph—Copyright.) (Rec 9.55 p.m.) Sydney, November 25. The Grown entered a nolle prosequi against Philip James Mond and William Victor Cunningham, who were charged with conspiracy to defraud persons desirous of becoming shareholders in the Britannia Bunk, Limited. A Crown Law official, in outlining the case, when it came before the Court on September last, said the accused knew each other in New Zealand. Mond arrived in Australia in May. He proposed to Dr Hunter, a director of the Ocean Investment Trust, that he should take over the trust, saying he (Mond) was on a financial mission representing big English interests. He referred to Cunningham as his managing director, who was coming out from England. The money for the registration of the Britannia Bank was drawn from the Ocean Investment Trust. Mond told Mr Wilcox, a public accountant, who asked for some guarantee, that £7,009,000 of tlie capital of the bank had been paid up in England, that he himself paid £5,000,000 and Cunningham £15,000; also that he himself held power of attorney from gentlemen in England. Mond also contracted with the directors of the Primary Producers’ Bank to whom he proposed that they should hand that bank over to the Britannia Bank. When asked for bona fides he produced what he claimed to be power of attorney from Lord Melchett (Robert Mond), Sir Samuel Rothchild and Mr Reginald McKenna. Detective-Sergeant Lawrence said that when Mond was interviewed he admitted he had registered several companies on behalf of a wealthy syndicate, but refused to divulge the names. The capital for the Britannia Bank was subscribed in England without asking for Australian money. It was cheaper to register companies in Australia than in England being £5OO here against £2700 in England. Later, at the detective office, Mond said he was the individual shown as having paid £5,500,000 into the Britannia Bank, but he added: “There has been no money paid at all. All I want you to do is to let mo leave the country with my wife. Our passage home is booked by a steamer leaving on September 15.” Cunningham admitted he had not paid any of the £15,000 shown against his name.” I haven’t two bob,” he said. “I W’ant you to let me return to New Zealand.” Detective-Sergeant Lawrence said Mond’s scheme was lo purchase companies and banks that had gone into liquidation and combine banking, insurance and trustee work. Bank mangers later admitted that the scheme was sound, but they wanted to know who Mond was.

Replying to Mr Manning, who was appearing for Mond, Detective-Sergeant Lawrence gave evidence that Mond had not drawn any money for his work and had not asked the public for money. Replying to Mr Henry, who appeared for Cunningham, witness said the only false representation Cunningham appeared to have made was that he paid up £15,000 in the Britannia Bank.

Dr. David Hunter gave evidence that he met Mond in July. Mond said he represented large English financial interests, and was related to the Mond family in England. He was here to open a bank, insurance and other companies. Mond told witness it would be in his interests if witness became associated with the Britannia Bank. Witness saw- something in the Press about the Britannia Bank, and asked Mond for his credentials. Mond showed him a cablegram containing the words “the big five.” Witness asked him who “Big Five” were. Mond replied, ‘Five English banks.” The accused were committed for trial, the Magistrate remarking that, he would leave the matter to the Attorney-General.