MOND AN ABLE MAN

Star (Christchurch), Volume XLIV, Issue 233, 1 October 1931, Page 1

MOND AN ABLE MAN

Britannia Bank Case is Continued. TRIBUTE TO ACCUSED. United Press Assn.—By Electric Telegraph—Copyright. SYDNEY, September 30. The case concerning Philip James Mond, aged forty-two, and Victor Cunninghame, who are charged with attempting to defraud various persons by inducing them to become shareholders and depositors in the Britannia Bank. Ltd., and other companies they were forming, was continued to-day. John Wilcocks, accountant, in evi* i dence said that while he was discussing I with Mond some of his plans, Mond said: “I am confident that we can get practically all the banking business in Australia worth having. We are going to pay interest on current accounts, and on fixed deposits, one half per cent in execess of ruling bank rates.” Witness commented on the colossal nominal capital of the proposed Britannia Bank, to which Mond replied: “The people I represent are already negotiating for the purchase of five small European banks, which, together with those I am negotiating for here, is the reason for such a big nominal capital as £100,000,000. Witness suggested difficulties which might be encountered with other banks, whereupon Mond answered: “I will be able to clear all bank cheques through other companies.” A Logical Idea. • Wilcocks, who is a Bachelor of Economics, cross-examined, said that Mond’s scheme involved using surplus funds in Great Britain and the Dominions for the development of Empire resources, with the ultimate idea of making the British Empire a self-supporting economic unit. Such a scheme has been occupying the world’s leading economists for several years, embracing complete control of all banking, shipping, insurance, investments, and trustee work. Leading economists had described it as a faultless and perfectly logical idea. Witness considered that Mond was one of the most able business men. His methods were quite above board. Mond had told witness that English shareholders had paid £11,000,000 which was held by his principles in England. Taking Over a Bank.

Eric Jones, director of the Primary Producers’ Bank, gave evidence. He said that Mond had expressed the hope that he would be able to take oyer this bank, at the same time submitting a document purporting to be a power of attorney for Sir Alfred Mond, Mr F.eginald M’Kenna and others. Bona Pides Demanded. Ernest Riddle, Governor of the Commonwealth Bank, related the negotiations for the suggested taking over of the Primary Producers’ Bank by Mond. Witness asked Mond for evidence of his ability to carry out the transaction. Mond replied that he was prepared to guarantee the transaction and would lodge bonds for £360,000 in sugar companies in New Guinea. Witness continued to press Mond for evidence of his bona fides and offered to cable to London for them, but Mond gave no names of his principles. Witness finally told him he was only wasting his time. Witness explained that the Commonwealth Bank had been asked to finance the Primary Producers’ Bank un ti! such time as the Britannia Bank was registered, but as Mond was unable to furnish ample bona fides the proposition could not be entertained. The hearing was adjourned.