The Express.
London, England, 1866-10-16 00:00:00

PRINCESSI!.

Taw Evinno, THE TBLPU ALLIANCE.—AItar which THE
HPCitTEIGT CAPTAIN. Mesas. J. G. Shore BG. Nom ; Misses
Neilson, Augusts Thomson, and Mrs. IMAM& QUIET
LODGINGS.

IiAYMARICKT.

THIS EVENING, THE ovirtEM7IOUTE. Meson. C. Ma-
thews, Buck one, Chippendale, Be.: Mesdames C. Mathews,
Chippendale, Wright. kc. Divertissement ibe Mimes
Healey.—THE CRITIC—And MY HUSBAND'S OHOST.

L 1 CEUId.

Tara Evistraa, BRUTUSAVLiaaAIt. Mai llearade.—Ana
as LONG sTRIKE. Mews. D. Doueicau Emery, Widdlcomb,
Cowper, &c.; Mrs. D. Boueicault.—Concluding with TWULDLS-
TON'S TAIL COAT. Alr. H. Waldlaumb.—Commence at 7.

BTB.AND.

EvanwrO, THE 151ilRD BACHRUHL—IN THE
WRONG BOX.— DER FREISCHUTZ ; OR, A GOOD CAST FOR
A FIRM—And WAITING FOR THE UNDERGROUND.

BRITA:iNIA.

TM Immo, THE OLD CHERRY TREE. M. Lane.—The
Wondrous Brothers Vieterelll ; The Great Vaulting Troupe The
Deferent' ; H. Wardlul; The LOW/Villa Minstrel/L—And MARY
QUEEN Of MITS.

MOH WATER AT LONDON BRIDOL

DAT=goining, 6A. 1571- i;Ont eh. SS=
TO-Monitow—Morning, 7h. Sm Afternoon, 70. Sem.

- - - - -
LONDON, TUESDAY, OCTOBER 16.

THE Shareholders in Barned's Banking Com-
pany (Limited) have been advised to resist their
liability as contributories, and a Special Examiner
in Chancery has been hearing evidence on their
behalf. Some of the results of this inquiry were
laid before the shareholders on Thursday, at a meet-

ing held at the Liverpool Law Association Rooms, by

Mr. JOEL EMANUEL, and are of sufficient interest
to the general public to deserve the widest pos-
sible notice. In referring to Mr. Ememuxx's
statement we shall not forget that it has to some
extent an esparto character, nor that the directors
of the Bank have yet to be heard. We may, how-
ever, exhibit the known features of the case with-
out attemntine nrematurely to decide the nume-

. _
r.:S questions of personal responsibiliiir
arise as its history is unfolded.
The scheme of Barnod's Banking Company
(Limited) was introduced to the public in the
summer of 1865, with a capital of 2,000,0001. in
40,000 shares of 501. each, with power to increase.
Its object, as stated in the prospectus, was to
purchase the business of " the old-established and
" well-known private Bank " of Messrs. I. EAR-
NED and Co., in Liverpool, and to organize it on
the broader basis of a joint-stock company. The
private bank, it was said, founded in 1809, had
done a " large and continually increasing business."
The directors had received encouraging prom4ses of
support, but in making the allotment a preference
would be given to the customers of the Bank.
The following paragraph formed part of the pro-
spectua
" The purchase-money for the business has been
" fixed at one hundred and sixty thousand pounds,
" payable by instalments spread over two years,
" as stipulated in the agreement, and this sum,
"on comparing it with the profits shown by
" Messrs. I. EARNED and Co. to have been re*-
" lised, and their guarantee of the assets taken
" over, cannot be considered other than a moderate
" payment for a bieratire business placed at once
" in the hands of the shareholders."
Thus far the prospectus. Let us now turn to
some of the results of the inquiry, as we find them
stated by Mr. JOEL EMANUEL.
In 1865 the firm of ISRAEL Bsit3rEn and Co.
consisted of two partners, CRARLES MOZLEY and
LEWIN EARNED MOZLEY. From a capital account,
stated between the partners, when Cie latter
joined the firm in 1858, it appears that its joint
capital in that year was 32,0001. In 1865
certain defalcations were discovered to have
been perpetrated by a relative of one of
the partners, by which the Bank was a sufferer.
The amount of these has been variously stated ;
they were estimated at the time at 100,0001., but
Mr. Lewis. MOZLEY believes that they were a great
deal more, owing to a deception that was prac-
tised. It was thus necessary to repair the capital of
the business, and accordingly Mr. LEWIN EARNED
MOZLEY paid into the Bank 20,0001., and Mr.
CHARLES MOZLEY 100,000/. This latter sum,
however, as now appears, was obtained from the
Bank of England on the guarantee of ten Liver-
pool merchants who took a mortgage on the bor-
rowers' property, a fact the bearing of which
will presently he seen. It appears that at the
same time the Bank had about 700,000/. owing
to it by firma which have since failed. More
than this, the business had for some time been
unprofitable. On this important point, since we
have not direct access to the evidence, we had
better give Mr. En.t.NuEL'S report of the evidence
before the Examiner in Chancery :
Mr. Banner (the auditor) say* that Mr. Charles Mosley
told him the profits of the business were 60,0001. to 70,0001-
a year. At ono of the preliminary meetings he said they
averaged 50,000/. a year. Mr. Irwin Earned Mosley told
Mr. Bison that the profits were 70,0001. • year. Mr.
Beneke (a director) told Mr. Robinson that the profits
were 40,0001., after allowing for all bad and doubtful
debts. Now these bad and doubtful debts were repre-
sented by Mr. Lewin Earned Morley as amounting to
20,000/. in the last three years. I had better give you the
exact words of Mr. Bcncke. sworn to before the
examiner: —" When Mr. Lewin Earned Mosley
made the statement about the losses there were others
present besides myself. It was at one of the pre-