The first day of the trial of the nine ex-directors of the Banque industrielle de Chine before the lith Correctional Court was limited to two heads of the in-dietment: irregularities committed during two issues of new capital, and dealings, also alleged to be irregular, in these new shares. The first of these charges was brought against all the nine directors, including M, Pernotte, the managing director. The second charge was against M. Pernotte alone. The principal irregularity alleged against the directors was their failure to see that at least 25 per cent. of the subscriptions for new shares were covered by cash payments. Their reply was that it was impossible for them to obtain the information in the time allowed by law, as most of the subscriptions came from the Far East, and that they acted in good faith. One of the defendants, M. Henry, pointed out that when the irregularities were brought to the notice of the directors, they immediately created a fund of Frs. 800,000 out of their personal resources to cover all risks. M. Cauwts, who appeared for the Public Prosecu-for, did not dispute the question of good faith, but observed that the defendants had none the less committed a breach of the Companies' Acts, punishable by a fine not exceeding Frs. 10,000. As for the charge of dealing in the new shares, M. Pernotte replied that all he did was to take up a block of the new shareg in his own name for the convenience of members of the staff who might want to subscribe for them, and that he passed the shares on without any profit or commission for himself.
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