The Express.
London, England, 1858-04-20 00:00:00

TOTAL 'MITI'S HANK.

Mr. Sergeant nee said in this case, which was an an
officio information, triad before Lord Campbell, at the laat
sittings at Guildhall, and in which • verdict was found
be the QM spinet all the defendants, he was instructed
M mem as the part of Mr. Richard Hartley Kennedy,
ens of the ishadeats, fur • rule to show cause why there
sheeld net be a raw trial on the ground of the verdict being
whit the evidence, and also on the ground of misdirection
by the hissed judge. The leaned counsel, after giving a
Ikea& of the history of the bank, said the informa-
Yen
eberged that the defendants did among themselves
staryire, confederate, and agree falsely and faudulently
*publish and represent to the shareholders, cuetomers,
end Queen's subjects, that the said bank and its affairs bad
been for the year ending the 31st of December, 1855, and
then went in a sound and prosperous condition, producing
profits divisible among the shareholders, they well knowing
that the bank and its affairs had not been du-
nag the year aforesaid, and then were not
In a sound and prosperous condition—with intention to
deceive and defraud ; and that in puissance of such con-
spiracy they did publish to the shareholders and the
public an attract of the balance-sheet for the year
ending the 31st of December, 185.5, which sets out
• dividend of 6 per cent., sad an amount of assets of 1,178,8121.
The hut item included is that sum, and the one which the
peneenedits Impeached, was this —" By loans on con-
vertible auserities for short periods, advances on cash, credits',
bUle discounted, &c.,986,2721." The information charged that
the report and balance-sheet were fates in two material parti-
es's/le first, in declaring • dividend out of the profits at the
rate of 6 per cent.; secondly, in placing the amount of assets
at • sum in *roam by 180,0001., that sum being
proved to be Irrecoverable debts at the time the
report was made. Now, be submitted that the re-
port and balance•theet were according to the evidence
at the trial—not false, but true—and that, if false,
there was no evidence to justify the verdict against Mr.
Kennedy. If they were trait, there would of course ba an end
of the prosecution. The whole of the weight of the charge
was founded on their falseness, and the misdirection of which
he complained was that the learned judge, with the evidence
before him, told the jury that those documents were false.
The learned connect then proceeded to deal with the first
charge as to the declaration of a dividend out of the profits,
and contended that under the terms of the charter under
which the bank was established the profit. of 1866 were
properly divisible among the shareholders, even although
it was overwhelmed with old debts, amounting to
more than three Hines the amount of those profits. If
that were so ; he submitted that the prosecution would also
fail. The directors, in tact, were not only entitled but bound
by the charter to divide the profits of the year among the
shareholders. The charter said that no sum out of
the net profits should be set aped for the
surplus fund which was available for bad debts, if by reason
thereof the dividend for the current year would be reduced
below four per cent. per annum. That theory might
be false, but it was one upon which the directors
wen boated to act. Even though the bank was
hardened with • heavy debt which the profits for the year
would sot nearly cover, yet it was their duty to declare a
a dividend out of those profits.
Lead Campbell—Even though the bank is insolvent P
Mr. Berjeant Slue—When It is insolvent of course
the beak must stop, but so long as it goes on that moat be
done. We ere not discussing whether this le • sound princi-
ple or not; it may be perfectly valid, bat I would rather say,
from the history of the bank, that his &delusive theory, and
one which in many cases must lead to confusion and
perhaps failure; but If your lordships are satisfied that the
polls of the year were properly divisible among the share-
beihne, although, instal of there being any actual profits,
Shire wee • large deficit, then this prosecution fella to the
mum&

_
(Tbe karuod counsel was procepliwg with hie argnment
vim the report left).

COURT OF BANKRUPTCY.
(Beton Kr. Cassimiarr gyms.)

The bankrupt wu a prom, la Brlatoa•roed. This .0
the seamination meeting. Tles ecomate, prepared by Mr.
Pettis, stiow debts about 9001., mete about 2001.
Oriwbury, on the part of the assignees, complained
tithe bergs personal enponditure el the bankrupt.
His Etweeer allowed him to pane, reserving that and all
ether quelleas fur the certtlioate meting.
(Before Mr. Cotandesioner Hoiroyd.)
Iw la TTZACK.

This vas the examination meeting in the ease of H.
Tyree, tool araufactarer, of Old-street-road. He owes to
asesared areditore, 2,6641. , to those holding mmuity,
2;:tbl ltepaZglyes op, 6601. , ditto held by creditors,
Tba totakrupt palmed unopposed.

(adore Mr. Registrar— Hastitt )
IN 16 SCHLEPONOIII APID CO.

This wu the adjoumted asamlnatiosirsting m the was of
fiettlesinger, Soldesinger, end Parfitt, isseribed as dryealtas,
of Deslngttall-street. The amounts, prepared by Mesers.
Peal sad Turner, .beer 7,969 g. due to 1111111011fld creaks;
vMI assets of 2,200!., besides mosigtenents selhasied at
1,111111.
The asesnate being only just filed, an sdjenrseist ems
lakes try 00110141 t.
Mr. landater appeared for the assignees, sad Yr. Law-
men, Ise creditors.