Thursday, March 18, 1858, Before his Honor Mr. Justice Dickinson. FRAUD. James Reid was indicted under the 11th Victoria No. 4, 37, for having at Bathurst, on the first day of December, 1858, sold and disposed of certain sheep which he had previously mortgaged to Frederick Strachan: the mortgage debt at the time of sale not having being satisfied. The defendant pleaded not guilty, and was defended by Mr Holroyd. It appears from the evidence, that on the 16th of February, 1856, the defendant, in consideration of £180 mortgaged 1500 sheep to Mr. Frederick Strachan. These sheep were of inferior quality. They were kept by the defendant, at first at Fitzgerald’s Swamp; from thence they were removed to Mount Macquarie, near Carcoar ; both places were ill adapted for sheep, especially the later station; the country being wet, and sheep depasturing there being subject to rot. At different times the defendant purchased other sheep; 500 of Mr., Smith, of which he afterwards gave 260 and £10 in exchange for dray and a team of bullocks. Smith was of opinion that these sheep were a portion of those he had formerly sold to the defendant. He also had from Andrew Rowan 700 sheep, on terms, and in March last, according to Rowan, he went to defendant, and he gave him 700 sheep back. It turned out from the evidence called by the defendant, that Rowan had forcibly taken away the 700 sheep, and that defendant was ill-used by Rowan’s son, in trying to keep them till he had see Strachan. In March last defendant met Mr. Thomas Jones, and he handed them over to Mr. Strachan. A balance was then struck, and it was found that defendant was still £90 5s. 6d. in Mr. Strachan’s debt. Defendant gave a promissory note at six months for this amount, and a continuing verbal lien on the sheep. The promissory note was dishonoured at maturity and Mr. Strachan sued the defendant upon it. Subsequently, he authorised Mr. Jones to take the sheep from the defendant, but Mr. Jones obtained none. The defendant stated that the sheep secured be the mortgage were all dead. The alleged disposals, therefore, were to Smith and Rowan. It was shown that, since the date of the mortgage, many of the sheep had died. Mr. Holroyd, for the defendant, contended that there was no evidence of a single sheep disposed of to Smith or Rowan ever having been a portion of the sheep secured by the mortgage. The statute was a penal on, and the jury must be satisfied of the identity of the sheep, of which there we no evidence. In a case like this, the statute must be construed more favourably in favour of the prisoner than the Crown. His Honor summed up the case with great care and minuteness, and the jury, after having retired for twenty minutes, found the defendant guilty; and his Honor sentenced him to be imprisoned, and kept to hard labour, in Darlinghurst Gaol for the term of three years.