4481.
$
SIR,
PUBLIC RECORD OFFICE
C.O.
Reference :--
885
14 PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
No. 131.
(NEWFOUNDLAND.)
LAW OFFICERS to COLONIAL OFFICE.
Royal Courts of Justice, March 1, 1897.
WE were honoured with your commands signified in Mr. Bramston's letter of the 22nd January last, stating that he was directed by you to transmit to us a Despatch from the Governor of Newfoundland, forwarding a request from his Ministers, for our advice in regard to a difficulty which had arisen in providing for the trial of the Directors of the Union and the Commercial Banks of Newfoundland, both of which closed their doors in November 1891, which, as they were the only banks in the Colony, led to an acute commercial crisis and widespread distress.
That the following statement would enable us to appreciate the circumstances in which the application for our advice had been made.
That on the 22nd May 1895 the Directors and Managers of the Commercial Bank, and on the 17th October 1895 the Directors of the Union Bank, were committed for trial on a charge of conspiring to defraud. That they were still untried.
That before the 1st December 1895 Sir W. Whiteway, Attorney-General and Head of the Government, was informed by the Chief Justice that having been able privately to ascertain the views of some of the English Judges he had decided that he could not, on the ground of interest as a shareholder, take the cases, and that the rule that a Judge was disqualified from hearing a cause in which he was personally interested was so well known that Sir W. Whiteway could hardly have been previously unaware
of it.
That, at any rate, he was at that early date informed that the Chief Justice would act upon that rule and decline to preside at the trials.
That both the Puisne Judges, Sir J. Winter and Mr. Little, were known to be interested in the banks, and that it was apparent that as the Bench was then con- stituted no Court could be formed for dealing with the serious charges of which the Directors were accused. That if the charges were unfounded the accused ought, in common fairness, to have been given the opportunity of clearing themselves without delay. That if the charges were true the interests of the public and the good name of the Colony demanded that the accused should be brought to justice without delay.
That the Government of Sir W. Whiteway, however, did nothing to meet the difficulty, and declined to act upon the Governor's suggestion that they should obtain the services of a temporary Judge from outside the Colony.
That at a special session of the Supreme Court on April 13th 1896, the cases were sent before the Grand Jury, which included the brother of one of the Directors. That the jury, on April 21st, found a true bill against the Manager but not against the Directors of the Commercial Bank. That neither case was proceeded with, and that on the 20th of May fresh indictments were filed. That true bills were found in both cases on the 23rd of May, but that exceptions were taken on the 28th, and, after argument, the Court, on the 11th of August, decided that some of the persons who served on the Grand Jury were not qualified, and that the drawing of the panel had been irregular and not according to the Act. That if it were true, as was stated, that Crown Counsel was present at the drawing, it was unfortunate that the irregularities were not pointed out at the time.
That both cases accordingly fell through, and that on the 18th November 1896 the Attorney-General filed ex officio Informations, and in due course applied to the Court to fix a day for the trials. That the matter being thus, at length, brought formally before the Court, the Chief Justice and Mr. Justice Little on the 5th of December declined, on the ground of interest, to take the cases; Mr. Justice Emerson, who had succeeded Sir J. Winter, being disqualified as having been Counsel in the matter. That the difficulty then arose of which Sir W. Whitoway was warned by the Chief Justice 12 months before.
That the Colonial Government now stated that even if the Judges had not refused to try, they were convinced that there would be an insuperable difficulty in empannelling a disinterested jury, but that they could not' deal with the subject until the actual fact of the Judges' refusal took place.
That that excuse spoke for itself, especially as they suggested no remedy, and only appealed to Her Majesty's Government for the advice of the Law Officers as to the most desirable course of action, and for a draft of the legislation deemed desirable.
95386.-9. 25.-8/97.