The Express.
London, England, 1864-12-03 00:00:00

THE UNITY BANE FRAUDS.

Joseph Wakefield Terry and Thomas Burch yes-
terday again surrendered to their bail at the Mansiomhouse,
before the Lord Mayor, to undergo a further examination
anon the charge al basin, they being respectively the
manager and seentary of- a public company called the
Unity Joint Stook Mutual Banking Association. unlawfully
made, circulated, and published, and concerned in making,
circulating. and publishing • certain written statement, to
wit, a Mitoses-sheet of the affairs of the said company up to
the 30th June, 180, they well knowing the same to be false,
with intent to deceive and defraud the members and share-
holders of the company, contrary to the statute, te.
Mr. Lewis, jun., of Iffy-place, again appear,il to conduct
the prosecution on the part of the committee of l'quidatore
of the bank. Mr. Sleigh, instructed by Mr. Watson, soli-
citor, of Cansonatreet, appeared for the defendant Terry ;
and Mr. Metaalfe, instructed by Kr. Wontuer, solicitor, of
Bucklersbury, appeared for Burch.
Mr. Sykes, the manager of the western branch, was re-
called, and said—Beyond sending the daily report to the
defendant Terry, he was in the habit of seeing him when
be went to the office. Tarry very rarely went to see him.
When be went to the City be spoke to Terry upon the
matters of the western breach. He generally went to see the
board. The debt of Baring's, alluded to in witness's evidence,
was spoken about by him before the board is Mr. Terry's
presence. He also spoke to the board in respect to Mr.
Humphrey's debt. He went to report upon that and other
matters. He sometimes went of his own accord, but was
more usually sent for. Conversation took place upon the
Pithiest of the debt& between himself and Tony. 1,6964
was owing by Dolman to the bank upon pest due bills. That
sum appeared in the item of loess to customers. He could
not say why that sum was treated as open loans, unless it
was that he held 2,000 shares in the Catholic Bookselling
Company, which he believed at that time ware good. He
thought • promissory note payable on demand was given for
the balance. At the time he made the balsam, after de-
ducting evth the gross deficiency was 17,3004 The
y amount of 3-i,OOOl. wee about the amount advanced to the
customers, of which 17,0001. was bad, In 1860 he wrote off
5,0001., which was • portion of the larger sum of 36,0001.
written off. He was instructed to write it off, but had
not written any sieve, as be was not instructed. The mode
which he had ado ted was the usual way in which all beaks
prepared their shade.
Cross-examined by Mr. Sleigh—lt was the practice in
banking to keep the bills until it was sacertained they were
utterly useless. The whole state of affairs of the west
branch were from time to time elaborately laid by him
before the board of directors, at the head office ; and besides
that the directors attended the branch office, and made in-
quiries theroselv.a, and the directors were from time to
tiros put in possession of the actual state of the affairs.
Cross-examined by Mr. Metcalfe—There was no regular
interval for the visits of the directors to the west branch.
The secretary had no power to alter witness's balance-sheet.
He could not prepare the general balanceadieet from the se-
manta furnished by him.
By the Lord Mayor—Witness himself allowed customers I
to overdraw their accounts, and • list was sent each week ,
to the board. He used his own discretion, except he was
told not to go over • certain sum. The directors knew or
ought to have known. the accounts were overdrawn. ite-
turns were sent is weekly.
/rile examined—Witness's balance-sheet put the bills da-
ms:laid and overdrawn accounts, past due bills, and loans
to customary, in separate items. In the general balance-
sheet the "Sc." was supposed to include the past due bills
and overdrawn acconote. " Past due bills" did not appear
in the general balancesheet. It was not usual for banks,
is ordinary balance-sheets, to show their past doe bills.
(Mr. Lewis then drew the witness's attention to the items
for past due bills, which appeared in several balance-sheets
from 1857 to 18.7.1.) Witness said they were put down for
some special purpose.
The Lord Mayor—To deceive the public. Are the public
to understand that unless .for special purposes, via, west
of a little more motley, they are not made aware of the real
Nate of the attain of the bank?

Witness hesitated, and quoted • portion of " Gilbert on
Banking," and said that was the best answer he could give.
(laughter.)
By Mr. Metcalfe—Looking at the general balseos-sheet, it
Ilia right for the four items, past due bills, overdrawn
account+, bills dna:mated, and loans to customers, to be
included in the sum of la,oool.

----
By Mr. Lewis—lt would not be the duty of the secretary,
or any one else, to put the separate items in the balance-
sheet, showing the past due bills, fast due loans, and over-
drawn amounts. The draft kalsoco-sheet, in which these
items were separately treated, showed the true state of the
bank. The printed balance-sheet did not, but included the
items mentioned in one total.

In reply to the Lord Mayor, witness said be considered
that the dote of secretary to a bank was to do as he wu
directed, and the directors were the parties who directed
hint.

The Lord Mayor—A mere copyist in fact?
Witness—Jut so.
Mr. B. Johnson said he was • clerk to the Court of
Baokruptey. He produced the proceedings in bankruptcy
relating to the bankruptcy of the customers to whom Mr.
Howell had previosidy alluded in his eviduce, and it
peered that that 0. and A. King, who were bankrupt& in 11157,
paid a dividend of 2e. 6d., the balsam of their debt ap-
pearing in the balance-sheet of 1862, 9.491., which was
entered in the 207,0361., and It. and D. Iroosides, who
owed the bank 4.635/., whose estate appeared to have paid
no dividend, and °them were alluded to for the purpose of
corroborating Mr. Howell's evidence.
Mr. Lewis then called for Lord Toniogtoo, brit was not
answered.

Mr. Edwin Curtis mid he was • clerk in the Unity Beak
for about three years, from I&r9 to 1862. He produced the
cash article book. up to the 30th August, 1862. The entries
were in his handwriting only from the let May, 1862. The
book purported to be an account of Dash and articles accepted
an cash, but it contained over due bill r well. There was
an perry of • cheque for 1,095 L, drawn by Sterne on Mar.
tins beak, which was dishonoured in December, 1861, and
entered in the book up to the 30th August, 1862, as
cash. The amounts were, by the manager's orders, copied
daily, unless some were struck out, and the amounts were
daily added up and made one total with Übe cash. The
items for past dr bills were entered is this Name way. He
did not have the bilk to cop y from, miler • bill was
brought to him the same day. The amour of past doe
bills added to the cosh in one day was 15,000/. Oa the 28th
June, 1862, the amount of rah in hand was cast as 18,000/.,
which included 16,0004 dishonoured bilk sod country
cheques. The actual ear was 2,2651.
By Mr. Sleigh—Wirer wasnot present at the meeting
of the directors. The directors were pretty in their
attendance. Irrespective of the meetings, the went
into the bank very often.
By Mr. Metcalfe—The books were taken into the direc-
tors if they wanted them. The cash article book was taken
to them every week. It was oo portico of his duty to see
the uticles, he had only to copy them from the prelims
page, and to strike them oat when he was told.
By Mr. Lewis—He copied the items from page to page,
and the bills did not pre through his hands, except when
there was • fresh entry.
Mr. J. W. Hooch, or of the committee of liquidator. of
the Unity Bask, was again called—He said be bad • ba-
lance-sheet placed is his bands eight days before the meet-
ing in September, 1862.
The Lord Mayor —ls that the last balance-sheet!
Mr. Lewis—lt is.

WitaeMOMtl;st;d—He received other balsnoe-aheets In
the tame manner, and he attended the meetings. He had
spoken to both the defendants with respect to the position
of the bank—Burch more particularly, end Burch had told
him that the shares were worth from 101. to 151. each. He
was always told they were worth more than they really'
were. or he should not have bought the last shares. He
always attended the meetings, and geoerally bad something
to say, and was sometimes ordered out, Maude he said
something that was unpalatable. (Laughter.)
By the Lord Mayor—Not that what he had to say was
adverse to the opinion of the shareholders. He thought it
was more from those who sat opposite, who were the mem-
bers of the board, and the manager and @screwy.
By Mr. Sleigh—There had been meetings of the liquida-
tors since the present proceedings. He had seen Mr. Alder-
man Mechi once. bat nothing about the present proceedings
wee talked about while witness was present.
Mr. Lewis interposed, and said the private meetings of
the directors were nothing to do with the defence.
Mr. Sleif,h said he wee sure his lordship would not
have it kept beck who was promoting the prosecution.
Mr. Lewis said he did not wish anything kept back.
The Lord Mayor add Mr. Lewis had acted very fairly.
Mr. Sleigh said no one could have acted more fairly than
Mr. Lewis had hitherto dose.
_

Witness continued—Mr. Alp nod Deputy Bower were
also propeat et that meeting. He did not remember
whether be was present at a general meeting in January,
1859. _ . _

Mr. Sleigh, to refresh the memory of the witness, read a
portion of the chairman's (Mr. Alderman Mechi) speech,
which was as follows Well, gentlemen, this concludes
our business. I have only to repeat that the directors are
determined to devote close and untiring attention to your
affairs. We have always dose so up to the present time—
we read every letter, we look at every bill, we devote a
good deal of time to your interests, and we ■hall continue
oar efforts in the hope that ere long they will be crowned
with happy resulta." Another portion wu :--'• Yon all
know we hare stuzit to the hank—yea, like leeches have
we stuck to it."

Witueie-1 ea, some of them stuck too tight to it.
(Laughter.)
Mr. Sleigh co ntinued—We examine everything, and Like
as lutanist iu anything.
. . . .

Witness did ea roc:Meet being present at that meeting.
By Mr. Metre,lfe—Witnees could Dotes,. whether he knew
as far batik as 1864 that the affairs of the bank were in •
complicated state. He did not remember my*, at a meet-
ing in July 18.;8, that he feared the bank was is sorb • state
that no hostas exertion or iodustry mold extricate it. He
bjected to some things that were said at the meeting, be-
ams be thought they plastered one another too much.
°Laughter). He knew nothing of the past doe bill, and be
knewfoothing of the interoal arrangements of the beak. He
did sot remember fajta' to Mr. Burch's brother, who wept
to *zanies the books, Wt if be lot lam look at them be
might tied materials to erceseate others.
By Mr. Lewis—The baleen,' sheet in June showed the
hank to he eolveet. He did sot know the amount of the
past doe bill..
Dr. G. If. Cook said be was a shareholder in the Deity
Bank. baring 145 shares, Lad he had lost a large sum of
mosey by it. He was chairman of the conicuittee of NW.