The Express.
London, England, 1864-11-12 00:00:00

THE UNITY BANK FRAUDS.

Joseph Wakefield Terrj, and Thomas Burch were
placed at the bar of the Mansiou.bouse yeatorday, its the
Gusto* of Detective Sergeants Webb end Mow, before the
load Mayor, to undergo a further examination upon a
Sharp That they, being respectively the manager and
staretary of a certain public company, called the Unity
Joint Stock Banking Association, unlawfully did make,
aircalate, publish, and concur in making, circulating, and
pabtriblog a certain written statemeut, to wit, a balance.
asset of the affairs of the said company, up to the 30th
Jane, Iho2, they knowing the same to be false in divers
arterial p.atiouLas, with intent thereby to deceive and
derand the members and shareholders."
Mr. Lewis, jun-, was for the prosecution ; end Mr. Sleigh
appeared for Terry, and Mr. Metcalfe appeared for Burch.
The eridruce given upon the last occasion, it will be re-
membered, was merely that contained in the information
upon which the warrant was granted for the apprehension
of the prison,:rs, and which went to show that in making
the talance.sbeet the defendants had Introduced as assets
esztaia sums to a very large amount, which it was con-
tended ou the part of the prosecution they were 'well aware
were entirely lost to the bank and peat recovery, and so
made it appear that the affairs of the bank were in a pros-
perous and solvent condition, they well knowing that at the
time the bank had lost large sums of money, and was in a
state of hopeless iuso!rency.

Upon the information being read over the prisoners were
remanded until yesterday, the only witness called being
Mr. Kertch, %Ilk; Wall one of the committee of liquidators,
sad who produced the charter and articles under which the
0001pilOy well Incorporated.

, -
Mr. liertch, who was called on the last occasion, said, in
*sewer to Mr, Iletealte, the committee of liquidators con- ,
tithed five geutionen, with himself. Mr. Hopgood was out
in the conieuittee. The whole of the directors and com-
mattes of liquidators were directing the prosecution.
In answer to Mr. Lewis, he said the reaolutiuu was passed
toprosecute, and three of the directors were present at the
aseting—Mr. Alderman Sfechi, Mr. Deputy Bower, and'
liteirge Eyre. He thought the dirtviors refrained from •
voting. The resolution was passed by show of hands, and
there were Ir.• 11.10,111 shown against it.
Mr. Howell, whose evidence was contained in the in-
formation. was reealied, and said be was an accountant, and
had bad the management of the accounts of the Unity
Bask ou behalf of the liquioatots. The hooks
were temporarily placed in his hands in February
the present year, and permanently on the 15th
March. :Snee that he bad investigated the accounts
for the purpose of ascertaining the assets. He produced
the minute books of the board and committee of the bank.
He bedieved the two defendants were in the bank from the
commencement. The handwriting of Mr. Terry appears in
the books trom the commencement. The first mention of
Mr. Terry an manager to the bank was made iu the minutes
on the Istli of August, 15.57. On Unit date there is an eutry
in his hazel sod to that effect, which was signed
nor." Mr. Burch was appointed secretary
on the sth of January, 1861, and there was also a minute
on that date t that effect. Re produced the minute-
book of the 1.0:h of August, 1657. The minutes taken on
that day were in the handwriting of Mr. Terry. A letter
was contained in the minute, in which the directors were in-
wiled to cell a meeting of the proprietors in consequence of
the 13.1 Late of toe affairs of the bank. The letter
was &steel I, John-street, Bedford-row," and ad-
dressed to " Mr.:theist' Mechi,Goveroor of the Unity Bank,"
sad signed "t.;. L. Lyres," and was as follows :—" My deer
sir,--niece our last court day 1 hare taken into COOSidera•
ties the positiou of the Unity Bauk, and my own responsi-
bilities sod di.ties is connexion therewith. After what
then posed, and the small share of support 1 received from
the chair, 1 tit, not feel personally mobbed, nor do I 'see the
advantage that would arise from my again attending the
smut until my duty may imperatively require me. I desire,
however, to put on formal record my views as to our pre-
sent positmo, and as to the course which ought to be put-
seed. lou ..te aware that I have for some time past re-
garded the pi •t.ti ei of the hank with apprehension. That
apprehensn n has been seriously increased by the recent rave-
billions. The committee appointed at my instance has brought
to light larger lures and a far more iniperfe:t mestcm of
management than we were any of us previously aware of.
The examieation has also elicited facts connected with our
loom which are, of a very serious character. 1 Lave ventured
to submit to yourself and my colleagues what appears to me
to be our only remedy. •But whilst I hod my collesgues
generally concurring with me as to the serious character of
past triuweotioos, 1 do not find them prepares! to take the
only step lo which, sett seems tome, the property is likely
to be saved from ruin. Under such circuwataoces the grave
question which 1 Lave to consider is, by what course of pro-
ceeding I .0 divest myself of any portion of the serious
responsibility which devolves noon me, and how far 1 can
beet perform my duty, not only to those who at my instance
have invested their money in the bank, but to all pro.
istietors at large who have honoured me with their rooti•
stew., es a Mrecter. There is no ordinary meeting of pro-
prietors until the month of January, IK-'OB. The circum-
stances, however, are so serious, that I think it ought to
be deliberate.y considered whether we are to await that
period, or give the proprietors an opportunity of considering
W position of the bank. le the balance sheet to Stith
April lal7. our losses were stated to have been I,lotll.
Aecanding to your statement at the court in July they are
now upward, ef showinta lose of nearly:l,ooUL in
three tur-inil, The customers' deposits in the lank do not
increase. .1t the present time they would be less than they
were sir moiths twee, had not several thousand pounds been
pad in respect of the call by the Unity Fire Company. Our
.paid up capital, 15,0ta.W., hadheen so dealt with that we have
no more thatil".o ism/. or one-teeth of the whole, • wadable at
the present time fur banking purposes. Our sharesof the v al tae
cel'ai: M are at the present tune not saleable in the share
market. Without reference to the many other grave and
startling facts which are known to us, it appears to me that
the foregoing consideration alone was sufficient to indicate
the propriety of calliog oar proprietors together. 1 aceor.
Jingly roitiest that you will Lave the kindness to submit
this communication to the court and take its deliberate
*Pinion as tc the propriety of calling a special meeting of
the pmprietois to consider the position of the hank. In
the event of any such meeting I shall be prepared to state
unreservedly my view of the present position of the pro-
perty, and at the same time to resign my seat as a director.
la the contrary. • I shall at any rate feel that I have
done my duty by putting on record of y protest against the
present system of management, and my opinion as to
the veers-, which ought to he taken in jennies to the pro-
pistols."
Upon the reading of the above letter the following rasa-
latiou was pawrtl :—" That this court regrets that any
delay should have taken place in answering Mr. Eyres'
letter ; but circumstances have rendered that delay neces-
sary in order fully and satisfactorily to reply to the commu-
nication. It ins now to inform Mr. Lyre that the court
has received and accepted Mr. Clestulrers's resignation on
such trios a.. it ti one will be for the benefit of the bank, and
be aatisfcetorc to the proprietors. The court has rude
arrangements for the present management of the hank with
Mr. *IS fry. 1 uder thee, circumstances the court does not
think it uecvssary to adopt Mr. Lyre.' suggestion of calling
the pro{ rieLtetc;;,etkier before the °Winery time for holding
its helf-2C•11,...116,etin,.

By Mr. Sleigh--The resolution was confirmed by J. J.
Multi on the :::)th Aag., 1657.
'e% I tuts. omiluuvat—the directors did not call together
the pharehoiders upon receiving that letter, but appointed
kir. Terry manager. (The minute to that effect we.
read.) iM the .kd Nov. the committee of investigation
wes iuraled re investigate the affairs of the look, but he
cou:d not Cud the report of that committee. He produced
the beasd route book, and root the minutes of
a board meetuat held *...th Noe., 16.7,7, which stated
that the report of the committee of investigatiou
having teen read, it wee resolved, That the report of the
cornmat.ve etromted to i igate the affairs baring been
considered, ehu directors desire to place before the gentle-
st*, horning that committee the following considerations.
With reapect to the first clause of the report they hare
desired the to see that the hank Le forthwith
registered ito-h-r the Joint Stock Companies Act,
With rek.el to the second clause, in which the committee
state that they bare carefully lave/Alerted the aoc.wnts
laid before them, and discover ties startliog fact %bat
abnut •do,t.r. • has been lost in bad debts, preliminary

expense., and bank presniami, leaviug about tiU,uUl. evad-
able for le.tiLess purpneen, the directors would request
the committee to see whether it is a fact at all that 90,VOUr.
he. been )oat. whether this sum includes all the iovest-
smuts of the company, and whether it would not be better
a public and official document that may Le called for at
a public meeting, testate aceur.,tely the facts a. they are—
via, eatincited loss on bill., 30,00u1. ; on Leek premiers
4PULlico, A Idgate, Watfutd, aid St. Albans), 2,77 e/. Itis. Id.,
less estimated amount to be realised on the same,
7214 1t... 9d.. leaving a lose of 2,0:e1f. PA. 4d. ; preliminary
expeasee, ; ihvestthent in bank premise.,
24.0.17/. In Id. The director. therefore request the coni•
suttee to revise the report in this respect—that with respect
I. the attendance of directors &Claudio, at the batik. this
Ira been carried out, and the other recommendations of the
goestuittee shall be carried out u far as practicable. Re-
solved, that • copy of the above resolution be sent to It. A.
Ewing, Lvi., the chairman of the committee. This Nadu-
Mon tine coonnord 4th December. 1:67, by T. J. Hecht.
In answer t. Mr. Metcalfe, Mr. Dowell +aid the enter of
these minutes wu io the prisoner Terry's handwriting.
Is may, a call of on tack share was made, which
appeared is the n,ioutes of a niceties on the 12th of March,
be entry of which was in the defenders' Burch's hand-
Writing.

&Tia;war to Mr. Metcalfe, withers mkt there were 3,000
shares out at that time.

Re-examined—The call of :V. a Aare would realiee
15,000f.;50/. per share bad been previously paid up. They
1111111. 1001.. hares end unlimited Dial ihty, There was an-
other call of V. a share made in December, DCA and there
11111/ a minute of a resolution made to that effect on the lot
of October, 185 it. Mr. Bower was in the chair at that time,
sod the entry was in the baodwriting of Mr. Burch. He
predneed the minute books of all the ruseunp and the be.
lenos-sheets down to December, 1,,60, and all the balances
lowa to the one of December, IMO, show promisently the
amouet of the peat due bills. He produced the balance-
@beet for December, 1857. In it there appeared an entry of
se pout due bills, and there .14 a minute
be theorise% that 11,0004 of that sum would probably be