The Express.
London, England, 1864-11-04 00:00:00

THE UNITY BANK.

SERIOUS CHARGE AGAINiT THE MANAGER
AND SECRETARY.

Joseph Wakefield Terry, of 3, Albreak-teersoe,
Wandsworth, and Thomas Burch, of 26, Edmund-square,
Kensington, were placed at the bar of the Mansion-house
yesterday, before the Lord Mayor, having been apprehended
by Detective Sergeants Webb and Moss, upon a warrant issued
from that court charging them that " they being respectively I
the manager and secretary of a certain public company called
the Unity Joint Stock Mutual Banking Association, unlaw-
fully did make, circulate, and publish, and concur in
making, circuleting, and publishing • certain written state-
meet and account—to wit, a balance-sheet of the affairs of ,
the said company up to the 'loth Juue, 1862, they the said
Joseph Wakefield Terry and Thomas Burch then well know. !
iug the acme to be false in divers material particulars, with
intent thereby to deceive and defraud the members and
shareholders of the said company, against the statute," Ste. I
Mr. Lewis, juta, prosecuted; Mr. Sleigh, barrister, I
instructed by Mr. A. Watson, appeared for the defendant
Terry ; and Mr. Metcalf, barrister, instructed by Mr.
Wontner, jun., was for the defendant Brach.
Mr. Lewis, in opening the cue to the court, stated the
facts at emus length, and said he was instructed by the
committee of liquidators of the Unity Bank, the affairs of '
which were wound up in the year 1862, to support • charge
against the two defendants of a very serious nature, under
the Yt and '25 Vic., cap. 96, endue. Si. He was sure that
when he had laid before his lordship all the facts, he would
hardly conceive • case of greater import, so far as
the public generally were concerned. The defendant Terry
was the matinee of the ULM), Banking Company, and the
defendant Burch was the secretary. They had entered the'
bank at its commencement in 1850. Terry received a salary
of 750/. • year, paid out of the money of the shareholders,
and Burch, who was under him, received • somewhat
smaller salary. It would appear that soon after the coin.
naeocement of the business of the bank they must have ,
been perfectly aware that the bank had become embarrassed ;
to a considerable amount, and that • great portion of the
capital had been lost to the shareholders. Between the
years 1856 and lartS the bank had lost • sum of 39,3604 by
bad debts, which the previous manager, Mr. Chambers,
had nude and during that period sot leas a sum ,
than ;L:,618/, was said to have been expended in I
what were called preliminary expenses. The bank continued
under the management of Mr. Terry from 1858 to September,
186?' when the directors of the bank called a general meet-
hag of the shareholders, and for the first time they were made
aware that the bulk was not in • solvent state. The charge
Nosiest the defendants was that they had published to the
shareholders, io 18062, • false balance sheet for the half-year,
with a view to induce the shareholders and creditors to believe
that the bank was in a solvent and prosperous condition, and
showing that • profit of f' had been made, out of which
it was pro,osed to pay a bolus of 21. per share. lie should
be able to show that at this time the defendants knew per-
fectly well that instead of having made a profit of 2,f55/. the
affairs of the bank were in • totally insolvent state. The
peidmip capital was 179,100 L, out of which the bank had
lost no leas than 135,0014/., and the balance-sheet that
was circulated must have been to their knowledge
• fraud and deception on the shareholders. As
be had stated, the paid-up capital of the sharehold-
er was 170100/. some of the shares having
been taken at 601. • slea-e. Under the mansgeineut of Mr.
Comelier, the sum of money lost oat of the capital was
36,17a1., and the plan which had been adopted with reapect
to that loss was of an extraordinary character. Of coarse
the capital of the shareholders ought tot to have been
touched, and therefore, to hide the loss, and to make it ap-
pear tiaist the hank wan in • prosperous state, the BUM of
j5,01.a1. which had been lost was act deducted from the
capital, but it was represented that the amount of paid-up
capital wits 141,0001., ins that only the latter sum bail to be
accounted fur instead of 17a,0001. This matter, however,
he did not blame the defendants so much for, as it was done
apparently with the knowledge of the directors. Mr. Lewis
then proceeded to glance over the various items °Defamed in
the haietice-sheet, with • view to chow the deception which
had been practised in making up the babince.sheer. He
drew atteutiun to the credit accounts of the bank, and it
appeared that the preliminary anal incidental expenses were
made out as 32,6481., and is that sum were included 16001.
fora dinner at the opening of the bank, and • sum of
9,000/. paid to Mr. Baylis, the promoter of the bank. "ei-
ther of which sums could ever possibly be brought again
lute the capital. Thee it appeared that, having received
sums of money from the shareholders and deposit customers,
they wish to show what money they had in band out of
which to repay their customers, dm. and they brought for-
! ward as saints bills discounted aullous to customers to
the amount of f 07,6681. 14s. 10d., which should have in-
cluded simply bills discounted sod loans to customers, but,
instead of that, it was Wade up chiefly of items which,
from tutnes in the books in the handwriting of the
defendants, they must bare clearly been aware were en-
tirely useless and past all hope of recovery. Mr. Lewis then
reed from • book a number of items against which were
written, as he said, in the handwriting of the defendent
Terry, various remarks, such as " dead," " no more ex-
pected," " bankrupts," "dividend of 54d.," and such other
remarks ; clearly showing that he was aware that they were
irrecoverable. Some of them were dated as far back as
1857. The amount of cash in hand was represented as
38,7174., and that included a number of dishonoured cheques
and bills dated as far back as 1857 and 1458 ; and against
several amounts were written, in the prisoner Terry's
writ lug, "forgeries," showing again that be must have been
aware tint the amount of cash in hand was not so large as
hail been represented. Mr. Lewis enumerated several other
amounts which had been carried into the assets in • similar
manner. all tending to the same end. The prisoners might
shield themselves by saying that what they did was with the
directois knowledge ; but be would call the directors, and
he was instructed that they would deny it ; even if it were so,
the two defendants bad prepared the balance-sheets knowing
that the sums mentioned as assets were composed chiefly
of sums which were entirely lost to the bask, sad though
the directors were aware of it, they had been guilty of •
great crime in circulating to the public and the sbar holders
• balance-sheet shoerieg that the bank was in • prosperous
condition, they well knowing it to be hopelessly insolvent,
with • view to induce the shareholders to bold their shares,
and their customers to continue to deposit their mosey with
them. Out of the 179,00i.f/. of paiii.up capital 134.436/.
liad been lost, which left to the shareholders the
sum of 101. per share. At the time the Unity
Bank's affairs were wound up the London and
Middlesex Bank was started, and some of the directors of
the Unity Bank being greatly interested it it, the share-
holders were induced to invest this tea pound per share is
shares in the London and Middlesex, which started with •
paid-up capital of 75,001., and was carried on under the ma-
nagement of the two defendants, as manager and secretary.
Eventually that bank broke, the defendants having lost the
whole of the 75,000/. A committee of liquidators was ap-
point-if, and the beaks were investigated and the result was
as he had stated. The liquidators had no feelings of aM-
mosity against the defeudasts, but they felt it was a matter
of great pa laic import, and one which raptured strict inves-
tigation they hoped that if it were proved that the de-
fend into, had been guilty of • crime they would be punished
for it, at the same time they would hs very glad, if the de-
. fendanta could explain away any of the facts which be
eboald Ining forward in support of the prosecution..
• ' ..

John Ws!ter Kench sai wu one of the shareholders
in the Unity Joint Stqck Busking Company. I took
shares at the commencement, in Insti. I originally held
10 sbsres, cod afterwards increaaed them by the purchase of
'di) more. The original one. I purchased at 601. each. lam
at present one of the liquidator., and produce the charter
which the bank was incorporated- The liquidators
were appointed by the creditors oo March 15 of the present
year.

some formal evidence was then taken to prove the
charter and the articles, and the appointment of the hqui•
o.4tory.

Mr 81ei.;11 and Mr. Metcalf here suggested that the case
shoolil be At once adjourned. Mr. Lem. • statement having
occupied the court *onto considerable lenlth of time, being
quite content that the information laid at the time the war-
rant wee issued should be read oven as evidence to justify
a remand.
The information was then read, and was as follows :
Oewalel llos ell mid-1 ant Accountant to the liepodators
of the Unity Joint Stock Mutual Bunking Association,
which basociation carried on busmen in Cannon-street, in
this city. One .1 seph Wakefield Terry %es the general
manager of the association, and one Thorns' Burch was the
secretary. aid it was their duty respectrynly to prepare
every half-year a balaoce•Aheet of liabilities and assets of
the association and the profit or lose made daring the half
year, mod to send a copy of such balance-sheet to each of
the shireholelers for their approval at a general meeting. I
produce • balance-sheet prepared by the said Joeeph Wake-
field Terry awl Thomas Burch, which balance-sheet was
printed and circulated by them amongst the said share.
holders ; and 1 produce in the handwriting of Thomas
Iturch the items forming such balance-sheet, and which
were sent to the printers of the association, and
from which items the balance-skeet was pointed.
The btlaucasheet is made up to the 30th June,
1-it2, and shows is profit during the trading of the
misociation in the six months preceding of 22,5581.
'lto items by which the alleged profit is made up are as fol-
lows • —The assess of the mid meociation at the period
LIA tned are alleged to be as follows. Preliminary expenses,
i .1....,ie1q. 15e. ; investment in hank premises, including the
Itri.:htou freehold, 21,5001. 3s. Id. ; current espouses,
2.!1:71. 17e. ; bills discounted, loans to customers, &c.,
i 2,7,664/. 14.. 10d. ; and cash in hand, 38,715/. Os. Id. 1
have on hebelf of the liquidators carefully examined the
books of the association kept at its office, and I find that
the association did not make any profit during the sin
months preceding the 30th Jaoe, 1862. bat had up to that
time lost from its paid. up capital the sum of 133,4361. Ns.,
which amounts appeared in the books of the msociation,
from which books the balanae-sheet was prepared by Joseph
Wakefield Terry and Thome. Burch. The items of the good
assets were made up as follows. There were overdrawn
accounts at the chief office, amounting to 9,5031. 10s. Id. ;
and at the West Branch, 2,0731. Be. 10d. ; both of which
sums were irrecoverable. There were past due bills and
forged bills dishonoured in the years 1859 and 1860, alienating
to 10.7601. 18s. Bd. ,• in the following year like acceptances,
12,559/. 15s. fid. ; also acceptances lying unpaid at the West
Branch, due from 1857 to 1862,amounting to 7,9901.135. 2d.;
there were dishonoured acoeptauces in the years 1857 and
1858, upon which under the bankruptcy of the acceptors a