The Express.
London, England, 1864-03-15 00:00:00

IMPORTANT REPORT OF THE AUDIT COMMITTEE.

UNITY BANK.-(THIS D 4 Y.)

This day the adjourned extraordinary meeting
of shareholders was held at the London Tavern, for the
;won of receiving the accounts es audited by the com-
mittee appointed at the Let meeting ; Mr. Alderman
Nam is the chair.

Dr. Coon, the chairman of the audit committee, read the
following rtipict of the committee....
•

" Wohthi;aaeleveigned, your audit committee, appointed
by the extraordinary general meeting of shareholders on
the 9th of Febtuarylasit, to examiner the accounts of the
bank, audit the °Metal balance-sheet then presented, and
report thereon, do report as follows:—let. That the duty
of the committee proved to be at. exceedingly oae-
roue one ; sad was rendered much more so by
the careless and inaccurate manner in which they
found many of the books had been kept. 2nd. flat your
committee deemed it to be their first duty to ascertain the
accuracy, or otherwise, of the balancrealteet of the 30th of
Jane, 1862, the last published prior to the closing of the
bank on the 31st August following, it being the basis ral
which the directors founded their recommendations to
transfer the business to and amalgamate with a
new bank and from which the shareholders formed
their lodgment se to the 'modems of such advice. 3nl.
That your committee soot found that important discre•
pennies *aided, and that the best means of placing the
matter in an intelligible form would be to prepare a new
balance sheet from the facts manifested by the book, and
vouchers laid before them. This they have done,
• tencomparing the two, the shareholder
o • the discrepancies above alluded to.
4th. That, amoopt others, your committee beg to direct at.
titration to the following :—ln the official balance-sheet the
amount doe to customers on current and other amount.,
including the reserve fund, is stated to be 159,392/. ne. Id.,
whereas the amount really doe at that time was 173,039,.
3d., or 13,647/. is. 2d. more than stator!. the amount being a
bond fide liability of the bank, and also involving the fact
that tie difference in question was the amount overdrawn at
the chief office as current accounts, a dubious asset, as
proved by the fact that 9,5031. 10s. Id. of the sum had not
base reps, and are a total loss. Again, credit 'a taken in
the oe-sheet for profit to date 6:193f. 4s. whereas
losses considerably over that amount actually existed at the
time. The next item to which attention is directed is
207,6681. 14s. 10d., represented ea a good &east, under the
term,' Billadiacrounted.loms to ccuitomers.kc.' Of tit is amount
38,5011. 15e. 9d. are comprised of unpaid loans, !caged and
dishonoured bill', many of very old date and desperate cha-
racter, and overdrawn accounts at the West Branch, all of
which amount (except 1.5601. 175.) is written off as bad in
' the last balance-sheet. The last item in the June
balance-eheet is • crab in hand, ..,,713/. Os. ld.'
Your committee's balance-sheet shows that the
cash really in band was but *....1.6a0!. 4..
the rest of the amount oonsistisg of uncleared cheque,
6,2451. 17a lid.; totally worthless paper (enumerated es
cash articles), 2,738/. Be.; and an actual deficiency of
501. 10a.; thus making up the sum stated, 38,715/. Os. U.
sth. That the number of shares held in the bank being 2,880,
it will be found that the amount deemed good assets in the
officialbalasosasheet shows about 34/. per share divisible
mooed the shareholders. This estimate does notinclude
10,0001. which the directors anticipated receiving from the
Loudon and Middlesex for the goodwill of the Unity busi•
sees, and reckons the value of the bank premises at 10,00/.
instead of 24,5901., es stated in the balance-sheet. Vont
committee's balance-sheet, however, shows that under the
most favourable realisation not more than 15/. or 16/.
per share could then have been expected .• subsequent
events, however, have proved that no inconsiderable por-
tioa of the amount fairly deemed good at the time by the
bank books has proved all but worthless, in part consisting
of debts due to the bank, on paper discounted for parties
already defaulters to a considerable amount, and of whom
the directors affirm, and the manager confessed that the
knowledge that they owed the beak a single penny was wil-
fullycoocrealed from them,till the (ley before the last meeting.
6th. That the balmoe-sheet laid before the last meeting to
the 31st December, 1863. being full of imocuracies, your
committee have prepared a statement compiled from the
books laid before them, bat from the loose and irregular
manner in which the books have been kept it is far from
being an accurate statement of the real position of affairs.
7th. That your committee cannot conclude without express-
hag their deep regret at the unjustifiable management of
the bank, which has resulted in its capital being lost in loam
and discounts to parties whom the commercial world gene-
rally deemed totally unworthy of credit ; more especially as
these parties, in very many cases, motioned to re-
ceive fresh accommodation after having repeatedly
dishonoured their acceptances, and whilst they continued
largely indebted to the bank. Bth. That your committee
tfd=rxprees their conviction that even now, if the she:s-
will strengthen the liquidators by adding to their
number from amongst themselves a few earnest, able. and
energetic men, the affairs of the bank may still finally be
wound up, with results rather more favourable than those
indicated by any statements derived from the bank books.
Lastly. That your committee beg distinctly to disclaim by
this report, is my way to home the personal honour or
commercial integrity of the court of directors. All which
is respectfully submitted for your consideration.
JOBS HENRY COOK (chairman), ROBERT PROCTER
(deputy-chairman), THOMAS GORING, JOUR
WALKER KENCH, HENRY THOBAS LAMBERT,
THOMAS SHEFFIELD."

It appeared from the balance-sheet of the committee
that the deficiency on the 30th of June, 1862, was
133,4361. Ide. ; the balance of capital left contingent on
the realisation of the assets, 45,7.70. ; paid-up capital,
179,195/.
Dr. COOK then moved the adoption of the report,
which was not much different in its results from that
presented by the directors, although the mode in which
those results had been arrived at was somewhat different.
The committee which he represented came to the conclu-
sion that the balanc►sheet of the 30th of June, 1862, was
incorrect, and ought never to have been presented. (Hear,
bear.) It was quite evident that the dividend of 12s. 6d.
win not paid out of profits, but out of capitaL He com-
pl►ined that the luscious but untruthful balanoe.abeet of
June had been put forward, on the faith of which be
and others bad been induced to enter into another
establishment. He should say that Mr. Alderman
Meehi bad given instructions that a truthful balance-sheet
should be prepared. I Hear, beer.) But some one wee re.
spoosible, and he regretted to say that some of
the parties who bad placed them in this position
had been transferred to another establishment when
they committed greater enormities. The result of
the whole was that instead of getting back 341. or 301. as
they expected they would not get more than 13/. or 121.
The system pursued by the bank in granting scoommodatioa
was most reckless, whilst, when an asset bad to be pre-
sented to the shareholders, the most worthless rubbish,dis-
bosomed bills, and forged cheques were swept together
is order to make it up. One person, a jouroey-
man tailor—who occupied a siogle rooorn—got acierennio-
datios to the tune of hundreds. And another, who actually
lived in a rookery, was also accommodated. (mime,
shame.) He had seen a great many insides in his time, bat
be had never seen one so foal as th►t of the Unity Bank.
(Cheers.)
Mr. Paocrtia, the deputy-chairman, seconded the motion,
and characterised the helancosheet of Juin, 1862, as false
and fraudulent—a mockery, a delusion, and a snare. (Bur.)
The Cnuarax, in reply, defended the board, and said
that any frauds or irregularities which had taken place were
doss entirely without their knowledge. nor were they aware
of them till they were discovered by the committee. He
also stated that the system of weekly examination carried
oa by the directors was that which existed in all the old
joint stock banks is the City.
A number of searching questions were then put to the
Chairman,and *lowered apparently to the satisfaction of Use
welting. esPeciallylas many of the answers were coo firmed by
Mr. Howell, a clerk of the London and Middlesex Bank, who
had been the chief assistant of the committee of share-
holden.
The motion of Dr. COOK wan then adopted unanimously.

GENERAL OMNIBUS COMPANY.-(THIS DAY.)

This afternoon the ordinary general meeting of
shareholders was held at the London Tavern ; Mr. Laws
in the chair.
The report, which boa already been published, having been
read,
The CHAIRMAN, In moving its adoption, congratulated the
meeting on the successful working of the company dunes
the past half year. The result of their operatics. during
the past half year exhibited an increase of profits to the
amount of 10,000/.. and • diminution of expenses to
the amount of 12,0001. They were, therefore, enabled to
offer the proprietors • dividend of 5 per cent., and to carry
7,0001. to the reserve fund. It was natter the con-
sicleratioe of the directors whether it would not
be better to increase the dividend, but they came
to the oonolnitioa that it was both safer and better not to
extend the dividend at present, but to increase the
amount of rmerve. The mileage duty pressed heavily
and unfairly on the proprietors of omnibeess.
They actually paid 9per cent on their receipts, whilst
the railways paid but IS per met. and the steam-boate
nothing at all. No less than 34 memorials would be pro-
moted to the Chancellor of the Exchequer on this subject.
The pm
of the railwayslied notiojured than. The
receipts pm omnibus on the New-road route increased from
181. 15e. to 201.175. fed., although there was railway com-
petition the whole way. (Hear.) The competition of the
°haring-cross Railway was not found to injure the profits of
the compiney's omnibuses on the Strand. The feet was the
mare the number of persons brought into Loedon by the
railways the hatter for the ountibudes.

After some eosverestioe the report was adopted, a dial.
deed of Sh. per share, free of income tax, was declared, and
the 'Wain directors were rwalected.

Boum Kixouroyow Muszum. —During the week
wan Mara 12 tho visite', have bees as follows On Mesday. Tuesday. sad Saturday. free demo. or* from
10 a.a. to 10 p.us., 9,717 ; as Wedseeday, Thanula. awl
Friday, Mules& days (admiesies to tbe public 6d.), open
free 10 a.m. till 5 p.n., 2.606; total, 12,323. From the
epode( et the wwiesers, 4.463,150.
ROYAL Fits 110111.1TAL, Oway's-Wes-soaw.—The
sambas of satiate relieved at this barite.' &win tke west
sedum March 12, was 3,210, of which 1,036 were Dew cases.