The Express.
London, England, 1867-05-01 00:00:00

CHARGE OP CONSPIRACY TO DEFRAUD AT
LIVERPOOL.

A case of considerable commercial interest was
brought yesterday before Mr. Barnes, the Liverpool stipen-
=magistrate, an information being laid against Messrs.
, ironfounders, of Liverpool, and Mr. Hyde,
manager of the National Bank, Liverpool, charging them
with having conspired to defraud Mr. Thos. Pearson of
the sum of 10,0001. The complainant was represented by
Mr. Smith, solicitor, of Birmingham ; the Messrs. Rankin
by the Hon. A. Liddell and Mr. Tidswell, banisters ; and
Mr. Hyde by Mr. Higgin, banister. The court was densely
crowded, and the case is exciting the greatest interest in
Liverpool, especially in commercial circles, owing to the
high social position of all the parties conoerned. -The case
for the prosecution was stated at length by Mr. Smith, who
said that his client, Mr. Pearson, a gentleman of property,
was in 1865, and previous to that time, residing oa his
estate in Devonshire. Hearing in 1865 that the Messrs.
Rankin were seeking fora partner with ample means, he
entered into negotiations with them through the medium of
• gentleman well-known in Liverpool as an extensive ship-
owner Mr. James Beasley. Mr. Pearson had subsequently
several interviews with the Messrs. Rankin, and he msde
all the inquiries he thought necessary. He was told by
them that they had an undisputed credit at their bankers
amounting to 15,0001., and that their profits averaged
about 10,0001. a-year. Mr. Pearson was then, on asking
for references, referred to Mr. Hyde, of the National Bank,
with whom they banked. From Mr.. Hyde Mr. Pearson in-
quired what position the Messrs. I+, kin held in the com-
mercial world, and what was their position with reference
to the bank. He was told by Mr. Hyde that the Rankin'
were very respectable, rising, and industrious men, and
that they had an unquestioned credit of 15,0001. at the
bank. Further negotiations ensued, Mr. Pearson employ-
ing Mr. Harwood Banner's his aocountant and Mr. Edward
Banner's hissolicitor. Mr. H. Bannermadeout &statement
of accounts, which (Mr. Smith said ),subsequently proved en-
tirely incorrect, and would form the subject of another in-
vestigation. Mr. Edward Benner was solicitor to the Rankin.,
and also to the National Bank, to which Mr. Harwood
so
was the auditor. From this Mr. Smith argued
that the interests to be served by the Messrs. Banner were
not likely to be those of Mr. Pearson. Mr. Smith, having
referred to the representations made to his client by the
Rankine being corroborated by Mr. Hyde, the manager of
the National Bank, backed again by Mr. Beasley, one of
the directors of the bank, where they (the Rankine) had an
account, went on to state that the partnership was entered
into, the Rankine agreeing that Mr. Pearson should have
2,000/. from the business the first year, and a full share of
the profits afterwards. Naturally thinking that he was
entering into • "good thing" he paid 10,0001. as the
price of his admission into the firm as • partner. At the
very time this money was paid by Mr. Pearson, and when
the above representations were made to that gentleman,
the Itankine owed the National Bank at least 13,000/., and
he (Mr. Smith) was in a position to show that had
not the 10,0001. been so obtained bankruptcy must
have inevitably ensued; that the 10,0011. went
into the bank, reducing the Rankine liability to 3,0001. In
fact, only five days after the commencement of the part-
nership Mr. Pearson was coolly informed that the him must
provide for everything, that their credit would not be ex-
tended, and to his intense astonishment he learnt that at
the very time the above-mentioned representations were
made the Messrs. Rankin were little better than paupers,
and that the National Bank manager, Mr. Hyde, had been
pressing them for at least two years for money, sometimes
telling them that if certain bills were not provided for
the bank would not advance them another shilling. Some-
times the bank threatened to "stop" them, pressing them
for money in every conceivable manner. A ter the part-
nership had existed for seven months the firm became
bankrupt, and made a composition of 12s. in the pound.
He (Mr. Smith) would be able to show by the books of the
Hankins that their payments for income-tax never ex-
ceeded 561. a year, and that they returned their year's
profits at the rate of only 2,500/ a year in place
of 10.0001. It further appeared from Mr. Smith's
statement that when the firm became bankrupt Mr.
Pearson refused to sign the deed securing the creditors
12s. lid. in the pound, but subsequently, under the pressure
of adjudication of bankruptcy, he did sign it, as well as •
release from all claim or demand on the Messrs. Rankin.
Mr. Smith inquired if this was done at the instigation of
the Messrs. Rankin. If it was, it was another feature in
what he would term the conspiracy. But release or no
release it had nothing to do with the offence charged
against them and against Mr. Hyde of having conspired to
get the 10,0001. from Mr. Pearson. In conclusion, Mr.
Smith said that the result of Mr. Pennon's connection
with the Rankine was a serious derangement of his health.
He became very excited, and they had been obliged to
defer that prosecution in consequence, his medical advisers j
not thinking him in a fit state previously to undertake it.
Mr. Pearson was then put into the witness-box,and deposed '
to the facts in the "bitterns tits made by his solicitor,Mr.Senith.
He said that when he entered actually into the partner-
ship he found that the concern was struggling daily and
constantly to obtain money for the payment of wages and