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ACTON ONTARIO WEDNESDAY MARCH 31 Second Section One Hundred and Seienth YearIssue Stones by Helen Murray SkeTcTies by Paul McCusker the witness as the sensational Dominion Hotel Ire second degree murder Monday Mercuri defends himself The financial difficulties of the Dominion Hotel surprise to Us owner ding his defense lawyer In his opening in the defense of on Monday Michael Moldaver said Ins client sal in silent bewilderment as a forensic testified that was about to go broke The accused felt business was increasing and gelling better each week told the jury Thi deftnse pointed out his client sat quietly as Kirby linked to organized in disregard of his wift and ihret children Mtrtun said he first thought of purchasing the hotel in September but it was not until I deal was closed His first mortgage or J 165 was set at the prime interest rate plus five per cent When he first st irted his pay were at but flue tualcd weekly getting as high as monthly whtn it was refinanced in His second gage was for TOO said he did not know anything of shirts anil loan hank whichnpre- v ious rown witness said the business was set up with Ik said it was just he and his wife and the morlt Whin the business was first purchased by the lit said it wis taking in about to make the payments lu food and pay tht rem By 1979 this was in en rtal estate agent for must of si deals told the court was his 16yearold nephew who pi ins for shopping and apartments on site of iht the house lo the north Id tourt boy did the drawings n his own as i ink you to his uncle The plans wire noted Thesi pi ins wtre seized by pohct in October IJJ 1 was the busies time of the week said with in of SI being taken in Saturday was slow considering the day of week indhewouldonlytakcinll 100 The seemed to frequent the hotel he told Hit jury tonstructionworkcrs firt ricipiintsinduntmployment people lkt lust 1 J ttnt tax on his- business Hit it used said took money ih did not go on tht books In July 1T9 Rot a telephone call at i in and by pin was on a plane going to his ill mother in Italy He took the money from tht Dominion hesaid making a when the decision down at August 1979 hearing it hi is to lost his liquor license for two wnks Id said the would only set him losing about i week because he would not ivt to hire a band or pay staff He still dining room and bar license he pi intedoul was solid testified His and it gave he and his wife jib Hi was not aware of any of the ids in the Tironln St ir idvcrtismg tht business for sale Tht w is never listed with a real estate idmitted to his relationship with 1 ikslun said it was possible he had her born in He never offered baby Mtrtun Id the was getting and involved m the business against his judgment Their friendship was less less She knew she wasn I said frequent usually about her inting to know so much about business Hi said ht ntvtr told her he was fed up the business best tiling would be for the hotel to burn down He di say it didn matter if anyone died bet tht wire just a bunch of drunks said he liked the people living in the ittl sometimes had them to his home for Sunday nner culled the doctor for them were sick I loved them he told the ftw months before the fire Gibbons was sick all over trying to get him i to st is or into the hospital but he had no luik He ended up contacting Gibbons brothers who took him away to the hospital In w to come back after he checked out tin Mtrtun said no However when he f un later Gibbons was sleeping on hi parkin lot he took him n That was Th time was at the restaurant when hi w is supposed to have met with Kirby Main family was at his cousin wedding in trior He did not know the Mafia family Mol in r pointed out at the end of July Mer tun rokt his hand and it was placed in a said cist was not taken off until Crown Pant Stent August or alter tht tin docs not remember speaking to at the construction site in Pickering Mercuri recalls coming to his door January 1982 along with another person who was dressed sloppily He told the men to leave The accused told the court of his activities the day of the fire He explained he was short staffed and did not have a chance to get home for sup per lie night of fire everything was normal he testified Moldaver questioned him about Mercun said he asked the man to leave to avoid a fight with three other men over a girl Engleby was not happy about being asked to leave and threatened him as he left Mercuri said Most of the time Mercun the go ings on in the hotel from the bar area He re members going outside and having a cigarette on the ledge of the Mercuri denies having in affair with Heather Mo re and He said she was a good employee did her job and didn talk too much At 1 a one hour before the fire only the staff was left at the hotel There was trouble with one of the band member car and ht helped boost the battery hesaid While helping the band member he moved his car from iround the back to tht front of the hotel wanted to know if someone was able to get into the kitchen would be able to get into tht rest of the hotel windows were old wooden frames Was there anyway to the bar from the basement asked revealed then was i hole from the basement to the bar in which beer was trans ported from basemtnt to the bar He had closed it up however one strong push could have opened it Everyone left the hottl about OS i m had just hid time to take his shoes off and make a toffee when the telephone rang at home At the same time he said he heard the town fire alarm blaring He got back to the hotel about a Mercuri said he lost silver photographs and about in cash in the He said he used to keep in a tomato juice tin In some crates in his office Other money was kept In the safe beside the bar The defendant said he never told police with the land free and clear he would be able to get monty as had been previously testified by other witnesses He never mentioned anything about rebuilding hesaid On August 19 the business records were all in office he said leading him to believe they had been destroyed in the fire told police and his insurance company duplicates could be found with his accountant in Hamilton He later spotted his filing cabinet in the rubble and had the police give them to him They remained in his home til seized in 1979 Upon his arrest Mercuri said he did not say I caught to the arresting officers Mr Mercuri did you set fire to the Dominion Hotel Moldaver asked No he replied Did you have the fire set tint No sir In his crossexamination Crown Attorney ask if he wis aware he was from the same part of Italy as the Toronto Mafia said he was not aware of it Stunt pointed out kept very detailed records from everything to ledgers and his own cur expenses By the time you bought the Dominion Hotel you had owned six or seven houses and two hotels Stunt counted He continued that must be familiar with negotiations of buying and selling land and of financing Mcrcuri said his lawyer did all that He said he knew nothing of shares Stunt pointed out let people think he was the manager and not the owner said healwayshaddone this if someone wanted something he could tell them the owner was against it without revelling he was the owner The and the police knew the truth At the trial during the time was the hotel owner Stunt pointed out Mcrcuri told the court while under oath he was the manager of the hotel Mercuri said was not a business just a real estate agent with whom he had had dealings with in the past Stunt said Mercuri had loaned him over interest free Meriuri said sometimes the agent would sign a letter culling people off the hotel if he knew the person He told people sometimes Tony was the owner he said and he was just the manager Stunt pointed out Mercuri cashed a che que for Mercun said he cashed ques for many people out of the cash register Stunt noted Mercuri said the people who wercpoor said he did not say poor He said were construction workers and people on welfare and em ploy insurance Frank was not considered by hesaid he just rented the kitchen Stunt pointed out in his earlier testimony of the day the kitchen helped bring in the food alcohol split said a pie times a week he wot Id see how Pugliese was doing but he did not count the money Some rent was being charged to If someone came into the dining room and wanted food would prepare and sell it Stunt said making him a business partner said he did not stick his nose Into the kitchen business Stunt pointed out Pugliese was Ecksteins baby godfather said he did not know He attended the Chnslening to deliver some wine He said there was lots of people there Stunt challenged Mercun claim that the hole was selling gallons of alcohol a year He showed a beer purchase schedule for a year period which did not come anywhere near he testified rate Mercuri said he did not know how these figures were added up Ii was the re with the numbers not he Stunt noted that after had relneved his records from the rubbled the hotel he did not contact his Insurance agent or police who had been asking for hem Mercun told him he had told the agent of the duplicates in Hamilton and felt when the police were the people who gave him the records from the rubble he saw no need fell them Business was down for a couple of months in the winter Mercuri said that was normal Stunt asked If he was tired of Howard Gibbons He pointed out in Mercuri statement he said he was tired of looking after him Mercun said the man was sick and he could not offer him the proper help Room keys were kept behind the bar Mercun said in response to a question by the Crown At tomey The lounge door to the lobby had an Allan key and not a conventional lock Leonard was acquitted Monday Cripps acquitted Leonard Cripps has been acquitted of second degree murder charges in the fiery August 19 1979 death of Howard Gibbons Cripps was charged in December 197J along with codefendants Mercun and Michael MeCnstall alter fire levelled the Dominion Hotel resulting in the death of Gibbons Monday as the now infamous trial entered its fourth week Mr Justice Coulter Osborne told the jury he had reviewed the evidence of the trial as it relates to and reached the conclusion that evidence cannot be elevated to the point of Justifying conviction He directed that a verdict of not guilty be returned The jury all nodded their heads in agreement and was allowed to leave the courtroom lawyer Peter K McWilliams made the application for dismissal of the charges Follow the decision he pointed out the case is Illustrative of the fact more than just at the scene is required especially where evidence is based on circumstantial evidence He told reporters in the hall afterwards there has to be some evidence of some act of McWilliams said when he made the Hon for dismissal he was hopeful Cripps would be released Granting of directed verdicts does not happen often McWilliams said Cripps feels good his name is cleared he said later When asked if he was glad to be able to go back to Acton and tell people I told you so that he was innocent smiled and quietly chuckled as he said Yes McWilliams pointed out what did not come out in the trial was the fact had had a mild stroke two weeks before the fire and had returned to work the night before the fire Mr Justice Osborne in delivering his decision on the application pointed out to the jury if his decision is wrong a court of appeal can correct lawyer Thursda Mercuri said Im caught when he was arrested When police wvnt to the home December 199 to arrest the Dominion Hotel owner threw his hands behind his head and ex claimed caught Bruce Richards of the Regional police took the stand late Wednesday afternoon and Thursday mominp and told the jury of Mercuri re action when he and his partner am at the door Crown Attorney Paul Stunt asked the officer at what in the investigation of the August 19 fire did Mercun becomesuspect Richards said hen he returned from vacation on September he was told Mercun was a suspect The arrest wasn made Richards told the court codefendants Mike and Leonard Cripps were originally rested October the Crown Attorney told them to release them pending further investigation All three were arrested in December Under questioning by Stunt said he rested for the second time at in downtown Tht man at the timeof arrest the policeman said asked to call the brunt had no involvement in the ar rest of Cripps Later that afternoon Richards said telephoned Mercun to w him they ere coming over to his on south of town but did not tell him why Mtrcuri started to raise his voice and wanted to know why they have he was broke and had a family to feed He was then taken to Division in Milton where thty taped the interview With Richards reading from the transcript of the tape jury heard Mercuri s version of what hap pen d the night of the fire also of his financial situation During the interview Mercuri said he did not remember telling people he was going to burn the hotel down He said he had no plans for the land When Richards told him they would come up with damaging evidence against him Mcrcurirephed I have been waitinp for you Richards read When told Cripps and MeCnstall were also in custody Mereun replied 1 don care what you think me but do you really think and Mike would have anything to do with something like that would you really believe deep down in your hearts and Miki are smart enough to do some thing like that Stunt Richards what Meriuri s attitude was like throughout the interrogation The detective as being very guarded very Richards told the court on October 1J7J at m ht went to i reil estate firm in Toronto and talked to rtal atcnt Tony who turned to polite copies of advirlisemenls which appeared in the Toronto Star for the salt of the Dominion Just before the beginning of tht on March I lolheToron lo Star and got copies of tht ids from the microfilm machine In seven ads the name Aelon appeared The adsal ran in 197J he pointed out Stunt Richards when he became aware Cecil self confessed arsonist was being called as a witness Richards said he found out in October suggested the in Mereun volte that night was the Italian trying to find the proper words Moldaver ilso suggested when was first arrested rather than saying 1 m caught he said Oh my God and Richards heard wrong because of the accent The said he distinctly heard the word caught Debbie iGagnon I redencks told the court the nigh of the fire she was in a in front of the taxi stand which wis located down the street from the hotel She and a friend Norma Qutt were talking before Mrs Fredericks went into her apirtment across the road About a she saw smoke coming from the hotel She said she saw Engleby come running out of the inxi stand shouting the hotel was on fire and starled to follow him to the Stunt pointed out to the Fredericks wis a w at the Station that summer and had known ill Under questioning by Stunt redencks told the court how on the after the fire there was i ill from the fire mirshal wanting to speak to Bert I- She isked if he had seen Eade panicky and nervous and around trying to find the other man She event found cade in the dining room and led him to the phone joined him We just hiv to cover up for a little while longer was overheard by Station Hotel employee Kim Timbers the following the fin took a telephone call in that room As was talking on the telephone to the fire marshals office MeCnstall stood beside him Allan said she thought It odd when said over the phone No I have not seen Mike told Lade to remember lo tell the fire marshal he hid been knocking on doors waking people up At this point MeCnstall said Bade We just have lo cover up for Cosimoa little while longer Smith pointed out Allan had just presumed Eade meant Mike MeCnstall when talking on the phone or suggested she heard it wrong Moldaver Rested lo her that Eade had been asked ii he had seen Mike the night of the fire and he said I had not seen Mike Allan said this was possible Moldaver asked Allan if was possible Mc said We just have to cover for Cosimo in stead of We just have to cover up for Cosimo By taking the one word changes the meaning he contested During the summer of Bren da Adams work the midnight shift Jeanne s Rest Home across the street from the hotel At the night of the fire she said she was shampooing the carpets Sometime between 30 and lam she saw Lngleby standing in front of the main lobby door and witched him cross the street and head south She had seen Mercun at the trunk of his car and then go back into tht hotel About SO she said she sat down at the window to have her lunch She was joined by Catherine Mcintosh another night shift employee About she said she saw come out of the hotel at the north lobby door and feel the air conditioning unit at the front of the building Mer hid just driven away she told the court Mc Cristall returned inside the hotel and about one minute later she saw a gush of black thick smoke bellowing out of Ihe unit She immediately ran across the road and into the lobby and met He told her he knew about the problem She did not hear an alarm She went back to rest home and by the time she crossed the street smoke was pouring out of the fourth window of Ihe second floor directly above Ihe air Stunl asked about the appearance of when she met him In the lobby She answered that he appeared culm and she did not think there was anything wrong because he was not upset All three defense lawyers had Mrs Adams repeat that she saw standing in front of Ihe north lobby door Mcintosh also an employee of Rest Home told Stunl she made her a rounds Just after two She had seen just before making her round and she watched him walk from directly In front of the north lobby door and go Into the bushes just lo Ihe north of the hotel She said many hotel customers went in there When he came out he headed north Mcintosh recalled The next time she saw him he was running towards the hotel After her a rounds she said she sal down with Adams and watched someone who she presumed by his dress to be a waiter go out and touch the sides and lop of the air conditioner She said the and truck she had previously noticed in front of hotel were no longer there She watched Ihe man go back into the hotel few minutes later she told she saw smoke being blown out of the unit When Adams ran over to see what is happen ing she could see the man standing inside the lobby door with smoke around his head At about she heard the town fire alarm Sergeant Michael told the he at tended a hearing on August in Toronto and 1 1 quor Licence Board of Ontario to testily the Dominion Hotel When the decision came down the told the court Mcrcuri was and pointed his finger at and said he hid ruined his business Mercuri had to be restrained by his lawyer the witness said Wednesda First man on hotel fire scene says rescue efforts in vain Willi mi Whikj rnglibywislhtfirstpersonou the scene of the Dominion Hotel firc August 19 197J W inters following behind two men testified last Wednesdiy they on the scene ifter seeing smoke pouring from the second floor but efforts to rescue people were in vain because of the dense smoke told rown Stunt he had been drinking at the hotel around 7pm Satur day August IB irgumenl followed a few hours liter over ihe pool and Mercuri asked him to from litre he went ftw blocks to the Station House Hotel there until closing lime about he said and relumed to he Dam hotel told the court he had no ride home Georgetown and had been told to sneak into the hotel and knock on one of the room doors and he would be let in by However said because of his disagree ment with Mercuri earlier in the evening he did not want the owner to see him He saw Mercuri car parked out at the and proceeded up the street He then went back towards the hotel on the opposite side of the street and watched leave in his Once he saw the owner leave said he decided to go up to the taxi stand and get a sandwich As he was coming out the front door wilh his meal in a bag he spotted smoke of Ihe front of the hotel about the fourth window down he testified He ran back into taxi stand and told them to call ihe fire department then sprinted up the street to the hotel Attempts lo get up to the sec floor were hampered by tht smoke said In his cross examination Mithael lold threatened to get back at Mercun for kicking him out of the hotel Engleby denied the charge inquired if had gone in the parking lot of the hotel that night The answer was no He revealed he was planning on spending the night with Joe and Howard Gibbons On her second day on witness stand Heather More I and admitted she perjured herself at the pre hearing when she claimed the police put words in her mouth and were acting superior pointed during Tuesday lest imony Morcland said Mercuri treated and Cripps likedirl said her boss them staying there because they spent there but did treat them poorly Moldaver nocd It was a free country and employ ces could come and go as they pleased He said Ihcy did not have lo slay and work at a place if they unhappy Morcland rhymed off names of who had left because of and admitted she also had quit three times However because of financial difficulties she was forced to return Moldaver charged that Morcland was afraid of the police after she testified at the preliminary thai they had her lie suggested they frightened her into saying she had perjured herself said It had never entered her mind She knew she had done something wrong and fell guilty about ft She went to the police and admit ted her lies