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SPLOTT "BANKER"

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SPLOTT "BANKER" I FACES HIS TRIAL. Financial Operations r Investigated. ACCUSED -CAREWORN AND ALLOWED, I TO BE SEATED. i m A Crowded Court. *1 AM THE BANK." The proceedings against the Splott "banker," George Matthews, were resumed at Cardiff to-day before theistipendiary magis- traite (Mr. T. W. Lewis. The accused was unchanged in appearance, being quietly clad in the same brown suit, and wearing the same fine shoes. He waJked nimbly into the dock, but looked lesa alert. Tbo-seating accommodation of the! spacious court was fully occupied, and it was evident that some in the auditory knew the "banker"—-ae friends, perhaps, or as old cue-1 tomers of his in his finamuoizl operations. Anyhow, they list4M? iMte?Y to thO j?citaJ of thœe opw-atiom by Mr. George =6d (acting for the Director of Publio Prosecu- tions ). The case, it is expected, will, last at least two days, if not longer. Mr. David opened at considerable length, dealing folly with the Roumanian's alleged modus operandi in the suburb of Splott, and as the bearing proceeded and the facts for the prosecution were' unfolded, it appeared that the longer time, isther than- the shorter, may bwanticipafced. There was A Careworn Look about the banker as he leaned forward over the dock rail and touched on the shoulder his advocate, Mr. Harold Lloyd. There was a hur- ried consultation between the two. For a few minutes, and every now and then, there were similar brief conversations between solicitor and client. Matthews is a good and a patient listener, and when any incident iu the tangled skein of facte struck him as being important in his favour, he would briskly jump up and talk volubly to Mr. Harold Lloyd and gesti- culate as cxnJy Continentals can. At the outset Mr. Lloyd mentioned that prisoner was not particularly well, amd made application tha-t he might be eea.ted, and the court consented. The Stipendiary said he supposed the case would last for some time, and was told that it would. His Worship: No other oases wdll be taken before five o'clock. While Mr. David was on his legs accused looked straight in front. When the witnesses came on he rivetted his gaze at them. THE CHARGES. I The charges were that on July 21, 1905, he obtained by false pretences from Howard Hunt £30 with intent to defraud; also on July 17, 1906, JMO from Charles Howard Hunt; on August 7, 1906, £ 11 as. 6d. from John James Sm&llbridge, the treasurer of the East Splott Permanent Financial Association, the money being that of the trustees of the association. There were two other charges of obtaining by false pretences sums of X20 9s. 8d. and £ 15 4a 4d., and another of embezzling 46. Mr. David, in opening, first described the charges, and remarked that the prisoner absconded, and had been brought back from America on an extradition warrant. There were two charges of obtaining money by false pretences from Charles Hunt; three of obtaining money by false pretefcees from the East Splott Permanent Financial Association, and one of embezzlement from that association. The circumstances dia- closed an extraordinary state of things. George Matthews lived in Carlisle-street in Cardiff, and he (Mr. David) believed that he was the owner of the house. He started what came to be known as the East Splott Rate- payers' Permanent Financial Association, and became its secretary. The hardship of this case was that the money which waa obtained for the purposes of the society was to a very considerable exterat obtained from people of the working olaes, who could not afford to lose it. In addition to that, he carried on a business in the name of the East Splott Banking Association. The name was altered from time to time, to the East Splott Financial Banking Association and the East Splott Banking Company. In regard to this bank a.n extraoordinary state of things occurred. Hunt, who was a working man- a fishmonger in a small way of busineee-- and a cripple got to know Matthews in 1904, and then joined the Ratepayers' Financial Association. Then Matthews induced Hunt to give up his banking account at the London and Provincial Bank, Cardiff, and to adopt as his bankers the East Splott Banking Asso- ciation. Naturally, Hunt inquired who were associated with him in this banking associa- tion, and what security there was for people who placed their money with this bank. He told him that he had men of position with him, and gave him the name of Alderman David Jones as Being Partner with him in this bank. A man like Hunt, who was to a very considerable extend, igno- rant of the ways of banks, was satisfied with this, and considered that the name of Alder- man David Jones was a sufficient guarantee that everything connected with the bank was thoroughly sound. Matthews, however, went on and told him that by way of security the bank had £ 2,000 deposited in the London and Provincial Bank, Cardiff, and that the London and Provincial Bank, Oardiff, was its clearing-house. He aJso said that it had £ 2,000 deposited in the Chanoery-lane branch of the Bank of England to secure customers against fraud and loss. He (Mr. David) need hardly say that not one of these statements was true. Alderman David Jones would tell the court that he knew nothing of this man, had absolutely no connection with him, was not associated in his business,. an the slightest degree, and was not a partner in this banking associa- tion. He (Mr. David) would prove that there was no sum of X2,000 deposited in the London and Provincial Bank, and that there was not even an account there in the name of the banking association. He would also show that not one farthing vrps de- posited with the Chancery-lane or any other branch of the Bank of England. What happened was this. When people opened an account with the East Splott Banking Company cheques were issued, with which they could draw upon the East Splott Bank. These cheques were described as being cleared at the London and Provincial Bank, Cardiff. Cheques when drawn were pre- sented at the London and Provin- cial Bank for payment, although there was no account there witn the banking com- pany. Matthews, however, had his own private account there, and if there were sufficient funds to his account any cheques on the East Splott Banking Company were honoured. If, as very often happened, there were Not Sufficient Funds, in Matthews's account, they were returned and were dishonoured, without reference in the slightest degree, to the account which the customers had with the East Splott Banking Company. Hunt had two accounts with the East Splott Bank, a deposit account and a drawing account, and although his books showed that Matthews, or the East Splott Banking Company, had money in hand belonging to him, cheques were fre- quently dishonoured. The particular items in respect of which Hunt charged Matthews were moneys which were paid not into the drawing aocount, but into what was called a deposit account. The deposit book showed that on July 21, 1905, a sum of XZO was paid into the account of his bank, as Hunt thought it, and later on, at the date of the subsequent charge, a further sum was paid to Matthews, but was not entered by him in his deposit book. To all appearances he kept a pass-book, and he (Mr. David) sup- posed ltept other A>oke of some kind or another. When Hunt paid these moneys to Matthews he paid them on the representations which he (Mr. David) had indicated, believing at that time that they were true. It was not until some time in the month of September that he began to be anxious about his money, and then found that Matthews had absconded. Then upon inquiry he found that the statements were absolutely untrue, Mr. Hunt would give evidence as to the state- ments made to him, and in his case the pro- secution would rely upon verbal statements. With regard to the moneys paid from the East Splott Ratepayers' Permanent Financial Association, he (Mr. David) had included in the charges the last three items that were paid to Matthews. These payments were made to Uiizn in reliance on representations which he had previously made, and in the belief that those representations were true. The circumstances were different to those of Hunt's eaee. because, as secretary of the East Splott Ratepayers' Permanent Finan- cial Association, it was Matthews' duty to keep the minutes of the proceedings of the association and of its committee. 011, the I 30th of March, 1903. Matthews was Appointed Secretary I of this association, which at that time banked with the Metropolitan Bank, Cardiff. In the early part of February, 1904, Matthews commenced a suggestion that the bank account should te transferred to the East Splott Banking Company. The first minute with regard to it appeared on February 8 of that year, and referred to a desire that the committee should deposit certain moneys with the Bast Splott Bank. It also said that the manager of the bank appeared before the "trustees, the committee, and the chairman, and the oommittee resolved to consult the treasurer before they came to a decision. The matter was not finally settled, because, fortunately for them, although they were working men and not sharp business people, they insisted on having some information with regard to this bank before they would would accede to Matthews' request. Then the minute of Monday, the 7th of j Jttareh, was an exceedingly important one, because being in the handwriting of Matthews,- and the minute being signed by him, It contained a record of representa- tions that he had made which he could not get away from. He (Mr. David) should show beyond all manner of doubt that the representations that he made to the com- mittee were absolutely untrue. The minute staged that at the meeting it was moved that the manager of the bank should give some reference as to its stability. The man- ager (that was Matthews) said that the bank was registered, and in accordance with the Uncorporated Companies Act every such bajik must deposit with the registrar zE2,000 and with the London Clearing House £ 2,000. (Mr. David interjected, "1 said the word "unoor- porated," because that is how it is spelt in the minute-book"). Therefore, these condi- tions having been supplied, the minute con- tinued, the trustees or any official of the society might refer to each of these offices for any information as to the stability of the bank. But as to referring the trustees to any of the bank's clieats. the manager said that he had been Bound to Secrecy I and could not divulge the name of any per- son connected with the bank. The matter having been fully debated, it was proposed to invest LID on trial. This, said Mr. David, appeared to have met with an amendment by Mr. Smallbridge that £2() should be in- vested at once and 110 or thereabouts every mouth, and this was carried. On the 18th of April the association decided "to remove the current of the society from the Metropolitan Bank to the East Splott Bank. He should prove that there was no such custom, as Matthews suggested, of money being deposited by a banking com- pany, and that no sum of money had been deposited. The members of this society in agreeing to deposit money with the East Splott Banking Company were misled by statements such as these. This con- tinued right up to August and even later in 1906. The three items mentioned in the charges were the last items paid, and were paid to Matthews personally. There was no other person connected with the business of this banking company. No one else waa seen, no one else received money, no one else kept any books, and the business was carried on in Matthews' private house. Proceedings were taken for the recovery of the money, and then, for the first time, they were met with a state- ment—the action being brought against the East Sphott Banking Company—and the only person connected with this company. An order was obtained in these proceedings for a statement as to persons constituting the company, and in consequence aID affidavit was sworn by Matthews that he was the only person connected with it. In addition, a man named D. J. Jones, having heard that Matthews was making a. statement that he was a. partner in this business, went to him and asked the meaning of it. Matthews denied having said anything of the kind, I and added, "I am the Bank: I, George Miaitthews, and no one else." It was George Matthews, who was masquerading as the East Splott Banking Company, as the East Splott Financial Banking Company, a.nd the East Splott Financial Banking Asfsocda- tion. It was he who had received money, and he had induced" people, by the represen- tations which he (Mr. David) had indicated, to hand their money over to him, believing that they were handing it to an association which would hoW it securely. Matthews, when he was discovered, absconded from the country, and if he (Mr. David) proved the circnmstances which he ha.d described he should ask that he be committed for trial. THE EVIDENCE I ffoartfta Howard Hunt, Buraaby-streert, a fishmonger, was the first witness. He said be first saw prisoner in August, 1904. "What was he at that time?" asked Mr. David. "A banker," said the fishmonger briskly. Witness went on to recount how, in October of that year, he became a member of the prisoner's association- Frequently be came to witness's house, and they had conversa- tions in reference to the bank. He asked if witness bad any money, and he replied, "Yes, I have a little in the London and Pro- vincial Bank," and he was induced to draw it out and deposit the money in the prisoner's bain!k. Matthews declared, when asked, that the bank wa safe, and he said Alderman Dkavid Jones was a. partner. He alod started that he bad XZ,DW in the London and Provincial Ba.nk at Cardiff, which was "his clearing- house," and a. seoond £ 2,000 in the Chancery Bank of England to secure depositors against fraud and loss. He also &howed two "official-looking" documents, which witness did not read, but which were represented to Ihim as receipts for the two L2,000 deposited. Believing all the statements to be true, wit- ness deposited his in the Splott Bank in July, 1905, and he would not have deposited it there but for the that he would get 10 per cent. interest. The "banker" gave him the pass-book (produced). He carried on the same business is the same place undier four different names. Witness was provided with dheque-books, Ac. In 1906 the "banker" said the money in the Bank of England was intact and could be drawn upon. Witness then described the circumstances under which he paid in another £30 in gold in July, 1906, still having faith in accused and his statements. A few days before Matthews went he said he wanted the pass-book, as a man was coming from Somerset House in a few days to "see into the state of the bank." Witness had not been re-paid either of the sums. Subsequently he was handed the pass-book produced. Examined by MT. Harold Lloyd, witness said he had no documents in his possession other than those produced. Mr. Lloyd: You knew Matthews, the money- lender?—I knew he was A Money-Lender ) You knew he held himself out to be a. registered money-lender?—Yes. You first got to know him through hia lending you money?—Yes. Did you say you had an account to meet for fish at Grimsby?-Never in my life. Did you borrow 94 from him?-I did. Did not you have the first L30 back?—No. I put it to you that you constantly drew out sums, and overdrew your aocount far in excess of the amount on deposit?—No. Witness, it transpired, was burnt out in January, 1906, and afterwards Matthews came to him and asked him if he was in- sured. He said, "Yes," and then prisoner observed, "You can have your money." Mr. Lloyd next asked if he didn't know tha,t at the last everyone was "after ?at- th,ews? Witness answered, "He said he would have ±,i,um in October, and was going to face it out." You knew a lot of runiouts were geing about?—Yes. I heard of the rumours. He told you he had lent a. large sufn of money at 40, 50, and 60 per cent.?—Well, I knew some people—yes. The Stipendiary: From the prisoner or other people?—I had it from him, and I intro- duced. him to one man. Did you ever know any of the statements were not true until after he had gone ?-I know he said a lot that was not true. Did you ever know before he had absconded that hds statements were not true?—No. Did he ever say a word about Alderman David Jonw?-Yes. Witness, in answer to further questions, said he had lost at least LoO. Alderman David Jones in the Box I Alderman David Jones, J.P., 13, Richmond- road, said he had never known George Matthews, and that was, he believed, the first time he had ever seen him. He cer- tainly had never been a partner with pri- soner, or interested in any way in his busi- ness undertakings, of whose existence he had never heard. Arthur Watkins, of the private drawing office of the Bank of England, was the first witness after the luncheon adjoummenit. He said he had examined the books of the bank for the years 1899—1906, amd had found no entry in the name of George Matthews, of Cardiff, nor of the East SpAott Banking Com- patny under any of its several titles. No money had been deposited in any of these names at cither the Head Office of t4he bank or at the Iem Courts Branch, which was the ontly branch anywhere near Clhainoery-lane. Ha.rry Wesson Longley (from the office of the Registrar of Joint Stock Companies amd Bank Retume) was called to PR?VO that tfhe, East Splott Banking oomv=y hod not bem registered un^er any o? its names aa a bank xyc as a joint stock company. Them-a vtio, bkmw. I ever, a registration under the Moneylenders' Acts of the East Splott Financial Bank Asso- ciation. This had now expired. No sum. of zC2,000 had been paid by George Matthews or any other person to the Registrar on behalf of the East Splott Bank. Replying to Mr. Lloyd, witness said that T&en the registration was made the persons purporting to constitute the Bast Splott Financial Bank Association were given afe Arthur Lane, Daivid John Jones, and George Matthews. Mr. Lloyd: I warated those names because the (prisoner is alleged to have stated that Alderman David Jones was in partnership with him. Re-examined by Mr. David, he said the return bore the signature only of George Matthews, and not of either of the other gentlemen. Arthur Elward Salt, deputy inspector of the London Bankers' Clearing House, stated that prior to these proceedings, he had never heard of the East Splott Financial Bank Association or any association with a similar name. Neither had A Deposit of X2,000 i been received on its behalf. It was not the practise of the clearinghouse to accept deposits from banks as guarantees of bona- fideg. George Francis Willett, solicitor, of Car- diff, who acted for the trustees of the asso- ciation in the proceedings for the recovery of their money, gave evidence of the affl- lavit which Matthews signed, to the effect that he was the only person concerned in the conducting of the East Splott Bank. In those proceeding in September last year judgment was obtained by default for zEI34 17s. lOd. Daniel Lewis, solicitor, of Cardiff, having also given evidence of the affidavit, Arthur Lee Balding, assistant accountant to the Cardiff branch of the London and Provincial Bank, was called. He said Miatthews had never deposited £ 2,000 with his bank, either on 'his own behalf or on bebalf of the Bank Association. He was never authorised to describe their bank as a olearing-house for the East Splott bank. Cheques drawn on that bank were presented at the London and Provincial Bank for pay- ment, but were never paid. Generally when one was presented, however, Matthews at the same time gave the bank a cheque on his owm private aocount payalble to the same payer, and that cheque would be paid. In the absence of such a cheque from him, the East Splott cheques were returned. Matthews' aocount during 1905 amd 1906 was, as a. rule, overdrawn. There was never more than about JE50 or £ 40 to his credit. AN INTIMATION I I Prisoner to be Sent for -Trial at I Sessions At this point the Stipendiary intimated that the witnesses might be given notice to attend the quarter sessions, as he intended to oomamit prisoner for trial there. Mr. Lloyd asked that he might be com- mitted to the at Swansea, but the Stipendiary, considering that it was highly improbable that they would be held before the sessions, thought it was his duty to cimmit there. Mr. Lloyd said he should have to apply in that oase for a triai in London. Alfred George Richards, a blacksmith, of Swinton-et-reet, said that he was the chair- man of the East Splott Ratemyem, Per- manent Financial Association, which was registered under the Friendly Societies' Act. He produced the minute-book, which was entirely in Matthews's handwriting. All the minutes were signed by him. (Proceeding.)

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