The Stourbridge Observer, Cradley Heath, Halesowen & District Chronicle.
Stourbridge, West Midlands, England, 1886-03-06 00:00:00

THE ALLEGED BOGUS BANK.

William Dormer, 48, an accountant, of 28, Ridley-
road, Dalston : William Orange' Phillpott, 34, a
solicitor's clerk, of 48, Chetwynd-road, Dartmouth-
park-hill; and William Patterson Stuart, 27, law
clerk, 3, South Apsley-place, Glasgow, have been again
remanded at Clerkeuwell Police-court, charged with
having conspired with other men not in custody in
obtaining, by means of fraudulent pretences and
representations, the sum of £5O from Alfred William
Moss, £5O from Andrew Alexander Wood, £3O from
Joseph Campbell, and £3O from Boulton Irving.
Mr. Horace Avory prosecuted on behalf of the
Treasury. He said the three prisoners were charged
with fraud in connection with an institution which
they called the "London and North British Bank,
Limited." This so-called bank was registered on the
11th of June last, and the names of the prisoners ap-
peared on the memorandum of the association as sub-
scribers of one share each. Dormer appeared as
"Charles William Erlhach," and Stuart and
Phillpott in their OWII names, as subscribers,
They issued a prospectus, announcing that
the capital of the company was £lOO,OOO
in 20,000 shares of .1-..!5 each. The first paragraph of
the prospectus set forth: "This company has been
promoted for the purpose of affording banking and
discount facilities to the large and increasing class of
merchants manufacturers, traders, and others, both
in England and Scotland, to whom ordinary banks and
financial establishments offer little or no accommoda-
tion." The names of four directors (" with power to
add to their number ") appeared on the prospectus.
The first was Lord Fitz warrine Chichester, of Clare,
Suffolk, and the Beaconsfield Club, Pall Mall. Lord
F. Chichester had no such address in Suffolk, but be
was a member of the Beaconsfield Club. The second
director was given as Arthur B. Leslie, St. Alban's
House, Maida-hill, W. It was found that there was
no such address as this. The third name was Montagu
Loftus Tottenham, of 13, Park-lane, W. This was a
very good address to give, the counsel said, but no
such person lived there. There was a Tottenham
—a "guinea-pig," in fact—a name which appeared
on prospectuses for a small remuneration.
The fourth director named was Charles Erl-
bach, the name assumed by the prisoner Dormer.
The offices taken by the prisoners were at No. 6, South-
square, Grays's-inn. The solicitor to the company was
William Gillett Morris, of Gresham-street, but the only
business he had done for them was to defend them
against actions which had been brought against the
bank by certain persons to recover sums of money
which they complained they had been defrauded of.
Mr. Morris had run up a large bill for costs against
the company for defending them in the actions, but
he never got the money. Last April, before the
company was registered, Dormer met Mr. Morris's
clerk, and told him he was about to start a bank, and
he wanted Mr. Morri2 to be upon the prospectus as
their solicitor. The clerk asked, "What support have
you got?" and Mr. Dormer replied, "We have Mr.
Stuart, who was at one time procurator-fiscal of Scot-
land. He is well connected, and with his advice and
assistance we shall be able successfully to carry on the
bank." He (Mr. Avory) believed it was a fact that
the prisoner Stuart had once held the post of deputy
procurator-fiscal. The four prosecutors and several
other persons had been engaged by the company as
clerks or agents, and they had paid different sums of
money to the prisoners in the shape of secarity
deposits. These sums of money they now
charged the prisoners with defrauding them
of. The first person defrauded was the pro-
secutor, Mr. Moss, who answered an adver-
tisement, and had an interview with Dormer and
Stuart, who had throughout acte as principals in the
concern. He deposited £l5O as security for good
behaviour, and against "breach of trust," being
cautioned against making any disclosures about the
bank. He was promised a salary of £l5O a year, and
on his first appearing at the offices he saw Philpott,
who was apparently doing some work as clerk. He
was set to address a few circulars, and was then told
he might have a "week's holiday" and was sent off.
This sort of thing was continued for some months,
until at last Mr. Moss, finding that he could get no
money out of the prisoners, put the matter into the
hands of a solicitor, and a civil action was commenced
against Dormer. in July the prisoners advertised
for a sub-manager, and the prosecutor, Mr. Wood,
was appointed to the post, agreeing to take up ten
fully paid-up shares in the bank. He paid the whole
of the £.50 down, but, of course, the shares were
never allotted. A total of £406 7s. had been paid to
the company by different clerks in this manner.