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

THE EXPRESS,

recovered, and no portion of it hadbeen written off, until it
could by Alireerleired what amount could he realised, al the
raisin of the creditors were under investigation.
Mr. Sleigh—Am I to understand that it appeared pro-
minently in the balance-shoat as 40,559/. past due bills not
written off ?
Witness said it did.

Rs-examined —Besides the words " past due bills," there
appeared bills discounted and loans to customers.
Mr. Lewis said that up to that time the balance-sheet
was correct, but it was after that date that the charge ap-
peared against the prisoners.
Witness continued— In the balance of June, 1858, which
be produced, the amount of past due bills was shown as
37,$ 701., and also showed a separate item under the bead of
bills discounted and loans to cuatomers of 133,5791., and
in that balance-sheet the meets, good and bad, are properly
represented. In the baleame-sheet of the 31st December,
1858, the past due bills, bills discounted, sad
loans to customers are treated as separate item. In the
balance-sheet of 30th June the items are similarly treated,
and are so down to the 30th December, 1860. The balance.
sheet down to Dec. 30, 1860, was in Bnrch's handwriting,
and was confirmed at a general meeting in 1861, at *tech
Mr. Alderman Mechi presided. That balanorsheet showed
a loss of 36,179/., which was written off the capital. At
that meeting it was resolved that a sum of 5001. should be
voted to the directors for their services. That 38,1791. is
subtracted from the 179,1951., the amount of the paid-up
capital, making it appear as 141,0151., and is all subsequent
balance-sheets the paid-up capital appears as 141,015/., and
the foe,of 38,0001. sever appears in any subsequent bailees-
sheet. In the Lalauce-sheet unto December, 1861, the pre-
liminary expenses were put down en 32,6481, and wore en-
tered in the general ledger, which he produced, as preliminary
expenses, which appeared to be partly composed of items paid
for salaries after the opening of the bank, amounting to
1,0831. The last date of salary paid included in that
amount was March 14, 1837. There were other items eon-
sistuig of eateries amounting to 7,1371. The bank opened on
the 6th May, 1656, and the amount paid up to that time was
2,6321., and could be fairly entered as preliminary expenses.
A total of 4,316/. was passed to the preliminary expenses,
which included the 1,063/. for salaries. The transfer of
these sums to the preliminary expenses would teed to show
a large profit. There wee an item under the head of sta-
tionery of 3,342/. entered in the column heeded " current
expenses," which was charged, after deducting 6001. for the
preliminary expenses, and brought oat in a balance in the
column under the head of " preliminary expenses." The
amount for stationery up to the opening of the
bank appeared to be 9971., and the amount of
2,363'., which was spent for stationery altar the
opening of the bank, was charged in the preliminary
expenses. The entries were all iu Terry's writing. The
last item was in April, 1857. There also appeared in the
ledger the rent account, amounting to 2,3651. for rent paid
after the opening of the bank, the Mat item being on the
30th of April, 1657, and which was also charged to the pre-
liminary expenses. There was an entry of 2,200/. entered
as loss on branches, which was also passed to the prelimin-
ary expenses ; soda auto of 1,8701. as commission on the
sale of shares, and 648/. for a dinner at the opening of the
bank, were also charged to the preliminary expenses.
Mr. Lewis—The dinner was opened with prayers. (A
laugh.)
Mr. Metcalfe—There was nothing unusual in that.
Mr. Sleigh—lt is a custom in this country, and I hope
there sever will be a dinner without prayer.
Witness continued—There is a payment of 6,0001. to Mr.
Baylis, who was the managing director of the bank, and re-
ceiveda salary of 13100/. a year, and there are three entries
on the books of 1,6601, each, paid to him subsequent to the
6,000/., and the w hole of that 9,1A101. is charged in the pre-
btu wary excesses.

By Mr. Sleigh—There was nothing to show whether Mr.
Terry was only a clerk or not et the time these entries were
made.

xamination continued—The entries with respect to Mr.
Bat ha were also in Mr. Terry's handwritiug. The three pay-
ments of 1.009/. each were made in 1857, 8, and 9. There were
other sums amounting to 5141., and also directors' fees,
amounting to 1971., charged in the preliminary es penses.Tbe
balauce-sheet of June. 1862, appeared in the minute book
Hider the date of lOth Sept., 1e42, and was confirmed oil
the 3rd Oct., 1861, awl at that meeting the shareholders
were called upon to authorise the transfer of the business
of the Unity Bank to • new company then io course of for-
tuation, to be called the London and Middlesex, which wan
agreed to by the shareholders, and confirmed at a subsequent
meeting, held for the purpose on the same day.
The balanceelteet wasread, and was as follows :
BALANCE :111:17 t•T THE UNITE JuHITETOCE lIETEAL BASKLIO
.L.S.IvCIATIuN, JUNK Sc). IJO2.
DR
. .

To capital account C141.015 0 5
7 o amount due on current and other accounts 159,353 6 1
To balstice of interest after pay-
ment of interest to customers... .£3,037 16 0
To I..ilimcc of prout
and lois us per last
repart £1,0:915 6
Less dividend ofl2sc
per thare paid last
hall•year

CW6,600 1J 6

By preliminary expenses
Its rose-t11.11t.5 in banking premises, including
Brigi.coe Fre...told 24,503 3 1
n.ret.c expenses from Dec. :D. 1461, to June
les.J
Bs bills ti ...uuted and loans to customers
key cash In Land

4.106.000 10 6
?tom •N r. Lc •f, •CO,CI/1. rt,ll HAL/ •TTAR 11rD00 J CAE 30, 1302.
currru: ex;•rusts trout,3lSl lh-cecuber, 1001, to
30th Juur, IsuJ, hmughl duwn
To

£6,199 4 0

By balance of littered account after payment of In-
terest on customers' balances
By bal..m.e of. prunt and lea account Lrought down 8 0

L 6, 1 i. 3 4 0

The sheet was signed by Mr. Gould and Mr. Hopwood, an
anditots, with • memorandum, ia which they stated that
they had compared the items with the books, and toned the
same to he correct. That belanoseibeet was in the minutes
in Burcla's handwriting. In the item on the credit side.
207,668/. 14e. lad., the sum of 38,179/. was sot included,
and was written off the capital. The bank bad customers
named Olivier and Co., amid he produced their bills of ex-
change. amounting to 4191., winch were disheaoared. He
produced the boon is which the past due bills were entered
in toe defendant Burch's writing, and he there Vaned
written against slesers. Olivier's bills, in pencil, the
word "forgery," in the prisoner Terry's writing. There was
nothing to show at what date the word which was in
posed was written. On the heck of one of the bills in
Terry's handwritiog is written, " The drat instalment of 2w
in the pound paid 11th May, '61." There was no entry of
I the dividend in the past due bill-book, but Oliviet'a debt
was in the year 1862 carried as 4191. with the item of
297,000/. as bills discounted and loans to customers. In the
committee minute book there wan under date of 19th
February. Lrril, • minute to the effect that Olivier had
been guilty of forgery with respect to certain bills, and that
stage should be taken to have him apprehended. That
sum was carried into the assets as bills discounted. The
batik had customers named Harrison and Co., and beipbr.o;
duced 'bait bi11.,22 in number, amounting to 3,6701.
were dated principally in the year 1660. They appeared
to hare been exhibited in the Court of Bankruptcy
in June, 1661, and after that a dividend was deducted
from them, leaving an amount of 1,86111., which was
I carried into the good meets. Messrs. Cowell and Burk
were customers of the bank, and in 1869 they were indebted
to the bank in the sum of 3,645/. In 1860, 2,0411. wee
written oil as loot, which left a balance of 1,6031. The
entry appeared to be in Terry's writing. In 1659 it ap-
peared that a security of Cowell and Burk was sold, realising
1,376/. re. id. ; and in February, 1661, a divided of sed.
• was received, which left • balance of 1461. 17a., and that
I balance formed part of the sum entered in the balatearabeet
as tool meets of the bank in 1861 A Mr. Lowenthal' was
also • customer of the bank, and in Jose, 1862, he owed
I the bank 4.6351., principally upon bills drawn by
Lowenthal' upon Irousides. In 1660 'repaid's was a debtor
to the bank in the sun, of 73. V., which was written off as
wholly l.et. In June, 1362, Loa eothall'. bill. were renewed,
lroosides' bills being taken by way of renewal, honsidea
being at hat time bankrupt. Ironsides' bill. were entered
j in the Lill drawing book of the bask in September, 1662.
The figures were written in an erasure, and the total,
4,635/.. was in the prisoner Terry's handwriting.
At this stage Mr. Lewis proposed to adjourn the case,
. remarking that there were a number of similar accounts to
! go through, and in that way be would show that 100,009/.
bad assets had been treated as good.
Mr. Sleigh and Mr. Metcalfe addressed his lordship with
a view to induce him to admit the prisoners to bail, but his
• lordship declined to take upon bit:melt the responsibility,
and the prisoners were again remanded.

THE NEW CONPEDERATE CIICISER.—SeTeraI days
ago it was announced that a steamer named the Laurel
left Liverpool for Madeira, &c., under circumstances of
such a su►picious nature as to cause inquiry. It was ulti-
mately ascertained that Captain Semmes and about 100
men were on board ; but this statement was denied by
51r. Lamle, of LiverpooL He wrote d letter to the effect
that the Laurel did out take out Captain Semmes, that
the number of her erew was not more than that required
for a 'creel of the Laurel's sine, and that she carried out
• few parseogers, seamen, to replace those who had died
of fever at Bermuda and Nassau, on board steamer. en-
gaged in the blockading business. By the arrival at Liver-
joul yesterday of the African mail steamer Calabar we are
ppl►ced in possession of facts which clash with Mr.
L►fone's statement. The Laurel has bees at Madeira, and
so has a large strew steamer named the Sea King, which
received a crew on board from the LaureL Thirty-aia of
the men, however, refused to join the Sea King and came
home in the Celaiar.

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