The Express.
London, England, 1867-10-17 00:00:00

DITAMPIID, 1(1. ADDITIONAL.]

SERIOUS CHARGES AGAINNI roTTO-V-
-BROKERS AT LIM:1'0(a.

The Liverpool police-court was crowded during
the whole of yesterday, on the hearing of a summons ob-
tained by Mr. Henry Barry Hyde, manager of the Na-
tional Bank of Liverpool, against Charles Lee Campbell,
Herbert Campbell, and Thomas Stretch, truling in co-
partnership as " Colin Campbell and Sons "at Liverpool,
charging them with obtaining by false pretences advances
of money to the extent of 10,500/.
Mr. Sleigh and Mr. Gully appeared for the National
Bank, and Mr. illggio for the defendants.
Mr. Sleigh said that the charge was framed under the
88th section of the 24th and 25th Vic., c. 96, by which it
was enacted " that whosoever shall by any false pretence
obtain from any other person any chattel, money, or
valuable security with intent to defraud, shall be guilty of
a misdemeanour." There were five summonses upon the
file of the court.

Mr. Higgin wished to ask upon which summons Mr.
Sleigh would first proceed, and some discussion took place
whether the GLOM should be taken separately or not, Mr,
Raffles (the stipendiary magistrate) ruling that they should
be so taken.

Mr. Sleigh said the case which, after the decision of the
bench, he should take first was the charge of obtaining
10,500/. upon a certain bill of exchange drawn by Gautier
and Bertois upon Colin Campbell and Sons on the 4th
July, 1867. This prosecution he (Mr. Sleigh) deemed it
only right to say had not been undertaken without very
great deliberation, but the National Bank felt that in the
interests of justice and of commercial morality they were
bound to institute it. A. regarded the case against Mr.
Herbert Campbell and Mr. Stretch, though his learned
friend and himself thought the circumstances were ',ef-
ficiently suspicious to warrant a summons being applied
for against them, they were not in a position to lay
before the court evidence which would warrant a committal,
and therefore with regard to those two gentlemen all the
summonses would be withdrawn, the charge being confined
to Charles Campbell. It was well known that the firm of
Colin Campbell and Soas was one of great eminence in
oottoa brokering up to the period of these transactions,
and entitled to the respect and esteem of all who knew
them ; but it would be abundantly manifest by the facts
which he would adduce, that, overwhelmed by difficulties,
they in the month of July of this year had recourse to
means for raising money which were undoubtedly frandu.
lent, and by which they obtained from the National Bank
of Liverpool in the aggregate ...bout 30,0001. The course of
business in the cotton trade at Liverpool was this.
Messrs. Cohn Campbell and Co. were cotton brokers. It
was the custom that the merchants or importers of cotton
when requiring advances from the brokers to provide •
margin beyond the amount of the required advance.
Messrs. Gautier and Bertois were mercharts and
importers of cotton. The defendants carried on their
financial operations with other banks than the National,
and not with the National until the 2nd March this
year. About that time the defendant called upon Mr.
Hyde, represented that he should require advances to a very
large amount, that the banks with which be was already
in connection were " full," and that in case the National
advanced he would always have cotton in his hands, the
property of his constituents, to the full amount of the ad-
vance, with 25 per cent. margin. Mr. Hyde consulted his
directors, and on the `2nd March wrote the following letter
to the defendant's firm :

" The National Bank, Liverpool (Limited),
"March 2, 1867.
" Gentlemen,—Referring to our interview this day, we
will be happy to commence business with your firm by
taking your acceptances of approved drawers to the extent
of 30,0001. current, your promise that you will in all cases
have cotton, with 25 per cent. margin again them, being
quite satisfactory." The meaning of this document plainly
was that if Messrs. Campbell took an advance they pledged
themselves that they had under their control and do-
minion cotton belonging to theiroonatituents tithe amount
of the advance, and 2:i per cent. over. Nor could it be
suggested with any force or truth that it referred to
• specific transaction of 30,0001., and not to future
transactions, because the words "to commence business
with you by taking your acceptances to the extent of
30,0001. current " obviously meant, " We will discount for
you upon the faith of your representation to the amount
of 30,000/., and when 5,0001., 10,000/., or 15,0001. shall
have run off the reel, we will still discount for you to the
extent of 30,0001., but there shall not be a greeter amount
current in discount than 30,000/." This 30,0001. was
advanced, and ran off the reel In the ordinary course of
business, and was paid, and he (Mr. Sleigh) mentioned it
merely to show the inception of the transactions with the
National Bank. Now with respect to the form of the bill.
In order to obviate any objections as to his referring to
any bill earlier than the 4th July, Mr. Sleigh called atten-
tion to the peculiar form of the bill, which was specially
adapted to cotton transactions between brokers and mer-
chants or importers in Liverpool. In ordinary course, if
Gautier and Bertois were indebted to Colin Campbell and
Co. for an advance, the bill would be drawn by Campbe
upon Gautier ; but in Liverpool these bills were drawn
by the merchant or importer upon and accepted by the
broker, and were substantially bills drawn by the im-
porter against the cotton deposited with the broker.
The moment Colin Campbell and Co. handed this bill to
the National Bank, they plainly said, " We have in our
hands cotton to cover an advance of 10,500/.,with a margin
of 25 per cent. over." The National Bank placed implicit
credence on the representation made, and advanced the
money. This was the charge as regarded the bills of ex-
change of the 4th July. Turning to previous transactions,
Mr. Sleigh stated that on the 21st March the defendants
wrote to Mr. Ashlin, sub-manager of the National, this
letter :—" Dear Sir,—Would it be satisfactory to you to
discount our acceptance of &femora. W. G. Crenshaw and Co.
three months drafts for 15,000!. We shall, I need hardly
say, be amply secured." Negotiations took place, and
upon the 22nd March defendants wrote to Mr. Hyde :
" Sir,—We enclose for discount our acceptance of Messrs.
Crausbaw and Co.'s drafts for 15,000/. at three months'
date. During the currency of these bills we shall keep our-
selves fully protected by ample security in cotton in our
hands." Thus it was clear that in the whole current
of these transactions there was, on the one hand, • distinct
engagement as to the margin of security ; and, on the
other, • perfect reliance upon the truth of the firm's repre-
sentations, or the advance would not have been made.
That 15,000!. was paid, and he (the learned counsel)
alluded to it only for the reason already specified. On the
Ist July Mr. Campbell wrote to Mr. Ashlin :—" Dear Sir,
—I could do with about 2.5,000/. discounts within the next
10 days if agreeable to Mr. Hyde. If so, what would be
the rate." An interview took place, and upon the 4th
July there were handed to the bank two bills purporting
to be, and undoubtedly drawn by Messrs. Gautier and
Bertois, one for 5,500/. and the other for 5,000/. at three
months date. The money was advanced less the discount
to Messrs. Campbell and Co., upon the faith and belief
that they had in their hands at the time cotton to the
value of the amount advanced, and 2.i per cent. more. Mr.
Sleigh was proceeding to refer to a transaction on the sth
July. when Mr. Higgin interposed a technical objection
which the court allowed, and, returning to the two bills of
the 4th July, he asked the court to consider the circum-
stances under which they were " manufactured "—he used
the term advisedly. Had these pipers any refer-
ence to cotton at all? So far from this was
the fact, that Menus. Gautier and Sertois drew
the bills at the request of Colin Campbell and Co.,
and expressly for the purpose of raising money, and evi-
dence would be given that not only these but a large
number of other bills and papers were manufactured at
the express request of Colin Campbell and Co., by the
drawing of Gautier and Bertois, Messrs. Gautier and Ber-
tois being then largely indebted to Colin Campbell and Co.
If therefore the transaction between them was what
might be called a clean and honest transaction, Mmars.
Gautier and Bertois being largely indebted to Colin Camp-
bell and Co.' the converse of this would be before the
court, and Colin Campbell and Co. would have drawn
upon their debtors. It was now only necessary to call
attention to an interview on the :10th September between
Campbell, the defendant, and Mr. Hyde. The bills would
mature on the 7th October, and Mr. Campbell suggested
to Mr. Hyde that the bills should be renewed. He said,
" I cannot meet those bills, will you reuew them? " Mr.
Hyde replied, " You know there is the cotton." He said,
" What cotton ?" Mr. Hyde replied, "The cotton which
you have in your hands to cover these advances." " Oh,"
said he, " I have got no cotton in my hands." " What,"
said Mr. Hyde, "do you remember the basis upon
which loans have been made to you all through
by the bank ? do you remember the words be-
tween you and me on the 2nd of March, the letter I
wrote embodying the terns of that conversation and upon
the faith of which I have always advanced money to you,
namely, that cotton to the amount of the advance and 25
per cent. margin should be in your hands, and was in
our hands when you got the advance r He said, " No,
y I don't remember that." Mr. Hyde showed him the
letter book, and the letter of the 2nd March, and he ex-
pressed his great surprise, but stated that he had no cotton
to cover the advance. Now the matter lay in a nutshell.
Did Messrs. Campbell and Co. when they presented the
bills to the bank falsely pretend that these were bona fide
bills in reference to the cotton transactions. and represent
that in reference to the advance of 10,5001., they had in
their hands cotton to cover it with a margin? He (the
learned counsel) submitted that they did ; and whereas the
bills were aocommodation bills having no relation to cotton
transactions. He contended that by this act they bad
rendered themselves criminally liable, as of late unfor-
tunately many other persons had done who bad strayed
from the paths of commercial propriety, and of truth and
honesty. Though they would no doubt be losers to the
amount of every shilling they had advanced, the

[TWOPENCE

National Bank• thought it their duty upon public grounds
alone to bring this case before the court.

Mr. H. B. Hyde said he was general manager of the
National Bank of Liverpool. Previous to Marco in this
year the bank had no business transactions with Mesas.
Colin Campbell and Sons. The first introduction to Mr.
Charles Lee Campbell, on behalf of the firm, took place
on the 2nd of March. Mr. Campbell said his banters had
a great number of cotton houses leaning upon them, and
bad suggested to him that it would be advisable for him to
get some of the money he required elsewhere. He said
he required 4u,000/. or 50,0001. Witness asked what was
the nature of his transactions? He replied, "My clients
are importers of cotton, and require advances." Witness
told him the bank would be happy to make advances cm
the usual terms-25 per cent. and the usual guarantee.
Mr. Campbell replied, When we accept we never give
a guarantee against specific cotton, but as it is
always going in and out of our hands we always
keep • sufficient margin." Witness told him he would
lay the matter before the directors, who met • few minutes
afterwards. Messrs. Campbell were informed that, upon
the understanding that they would always keep a margin
of 25 per cent of the cotton upon which advances were to
be made, 30,000/. would be advanced to them ; and this
sum was advanced upon the faith of the guarantee that the
arrangement in question would be adhered to. The bills
were taken up on the sth of June. On the 21st of March
a letter was received by Mr. Aahlin, sub-manager of the
bank, from Mr. Charles Campbell, asking If it would he
satisfactory to him (Mr. Ashlin) to discount the accept.
ances of Messrs. W. G. Crenshaw and Co. three months
draft, for 15,MU1., addin, " I need hardly say that we
shall be amply secured." Witness declined to discount
upon that letter, and on the 22nd of March Mr. Charles
Campbell wrote to witness a letter enclosing acceptances
of Mean. Crenshaw and Co. for 15,0001. Mr. Campbell
stated, "during the currency of the bills we shall keep
ourselves amply protected by cotton in our bands." Oa
the 4th of July two bills, accepted by Colin Campbell and
Sons, and drawn by Gautier and Bertois, were brought tech*
bank ,• one was for 5,000/. at three months; and the other
for 5,500/. at three months. A cheque was given to Messrs.
Campbell sod Sons for these sums, less the discount, and
the cheque was returned into the bank as paid. Witness
was induced to advance the money under the belief that
Colin Campbell and Sons had cotton, with 25 per cent.
margin, belonging to Gautier and Bertois, in their hands.
He believed they were general trade bills for cotton, or he
would not have advanced a penny upon them. On the
30th of September Mr. Campbell again came to the bank,
and asked witness to renew the bills coming due on the
7th and Bth of October, saying he could not meet them.
The two bills spoken of were amongst them. Witness
inquired where Ins the cotton he had against them. Mr.
Campbell replied that he had no cotton. Witness then
said, " You must have cotton under your guarantee to
me." Mr. Campbell replied, " I gave you no guarantee."
Mr. Hyde then sent out for his letter book, and showed
him the letter of the 2nd of March. Mr. Campbell said
he did not remember receiving any such letter, and took
copy of it.

On cromexamination by Mr. Higgin, the witness said
when the National Bank of Liverpool wee established, the
firm of ColinCampbelland Sons stood veryhigh in the com-
mercial world. Would swear Cast up to the 30th Septem-
ber he had never heard even a whisper against the stabi-
lity of the firm. Correcting himself, Mr. Hyde said that
some months previously he had heard tho firm spoken of
as three-fourths of the firms in Liverpool were spoken of.
The bank had made an advance of Z 5,000/. as a loan to
Messrs. Campbell upon a specific guarantee as to cotton.
Between the 2nd of March and the end of June the bank
had advanced to Messrs. Campbell 10:000/., and by the
30th of Juno the whole of the bills and the kens were
paid off, and in due course. Between the end of June and
the 4th of July there was no indebtedness to the bank on
the part of Colin Campbell and Son. On the 30th of Sep-
tember witness tied a conversation with Mr. Campbell as
to the outstanding loans, which were then 36,000/.
and bad reference to specific quantities of cot-
ton. The authorities of the bank made up
their minds to institute this prosecution on the btk
instant. Prior to the issue of the summons there have
been no negotiations on the part of defendant or his
friends as to the debt. If the hank debts had been paid
witness would not have advised this prosecution. Mr.
Muni concluded his cross-examination by saying, " Now
Mr. Hyde I will ask you one final question, and I don't
care a fig bow you answer it. Is not this prosecution for
the purpose of compelling the payment of the debt to the
bank ?'

Mr. Hyde—No.
Mr. Higgin— Then you swear that?
Mr. Hyde—Yes.
Mr. Higgin—Then I am sure Liverpool won't believe
you.
Mr. Sleigh said this was an observation that ought not
to be nude, and Mr. Raffles concurred in the rework.

Mr. Dickens, • clerk in the National Rank of Liverpool,
proved that on the 4th of July, he handed to Mr. Charles
Lee Campbell, a cheque for 10,0004 upon the Lank of
England, and gave him the balance in gold.

M. Jules Leitois was the next witness called. He said
he was in partnership with Mr. Gautier as cotton deale:s,
and they did business with Colin Campbell and Sons. On
the 4th of July he and his partner were indebted to the
firm In the sum of 8,0001. or 12,0001. The bills produced
were in witness. handwriting. On the 4th July, Mr.
Charles Lee Campbell asked him to draw upon them for
10,0001. or 11, and Le consented to do so. Mr. Camp-
bell had, prior to theoool. 4th July, asked him to put his name
to bills of exchange. Mr. Campbell gave as his reason for
asking witness to draw upon hem for 10,0001. or 12,0001.
that he wanted the money he (liertois) owed him and he
could not pay him. liming the preceding ten or twelve
months velumss had drawn upon Mr. Campbell for about
20,0001. It was the custom in the cotton trade for the
merchant to dram upon the broker. In respect of the bills
dated 4th July, witness never 'llama a airgle bale of cot-
ton in the bands of Meier', Campbell and Sons.
Cross-examined by Mr. Higgin—At the time he drew the
bills his firm was perfectly solvent, and they had as
account at the Bank of Liverpool.
This was the case on behalf of the National Bank.

In defence of Messrs. Campbell and Sons, Mr. tlir-,;ina
said that there wu no charge against them in reality, and
lie would be able to show such to be the case to the uitia-
faction both of the court and of the entire commo rand
community. If his clients load not been unfortunate
nothing would ever have been heard of •• comm.-re:MI
morality." The bank, like all banks in bad times, tiled to
get all they could from unfortunate customers, ever. at the
expense of other creditors, and that was what Mr. Hyde
had done.

!dr. Sleigh said the prosecution was instituted in %indi-
cation of justice, and that 19s. lid. in the pound %%Quid
not induce the National Bank to withdraw it.

Mr. Iliggin rejoined that when his learned friend said
that the payment of 19s. 11.1. in the pound would not
induce the withdrawal of the prosecution, he was making
• statement which the people of Liverpool, cue and all,
would repudiate as totally absurd.
Mr. Sleigh said that if the bank believed that a fraud
had been committed upon it, it would be guilty of a mis-
demeanour if it condoned it by taking 2thi. in the pound.
Mr. Margin remarked that the bank directors believed
that a fraud had been perpetrated. It was the talk on
'Change, it was the talk of the town, that an arrange-
ment had been made and the prosecution withdrawn.
The learned counsel commented at considerable length oa
the testimony given, contending that there was not the
slightest evidence to show any fraud or any intention to
defraud on the part of the defendant, adding that at the
time the hills in question were discounted 110 bad in his
hands4o,oool. worth of free cotton, which lie could have ten-
dered had Mr. Hyde,required additional security, though he
had none belonging to Messrs. Gautier and &riots. He
also contended that the letter of the ad of March was
not the continuing of the contract, and that when the bills
of the 4th of that month were paid, there was an end to
the contract.

The magistrate, renilrking that the care was one of the
greatrat importance, aliourned it until to•monrow (Friday)
morning.

SALE or CATTLE RELO.VOING TO inr. MaJE,Tv.
—Yesterday, a sale of royal stock took place at the Prince
Consort's model farm, at Froguaore, in consequence of its
being over stocked, under the hammer of Mr. Staf-
ford, which was attended by between three and four
hundred farmers. graziers, breeder', and butthi ra
from all parts of the country. Previously to the
commencement of the sale, a very handsome collation was
provided ander a marquee for three present, including ale
and wine. The chair having been taken by Major( :eneral
F. H. Seymour, deputy ranger of Windsor Great-park, who
alter the repeat gate the health of the Queen and the
Prince and Princess of Wales, which amiable and intim-
thous lady he (the geLeral) was happy to say wa, so fast
recovering that we soon should have the pleasure of
.aga.in
seeing her in public. After "Success to the sale was
given, the sale commenced in • portion of the Home-park
adjoining the homestead. Forty-two calves and brifern
and eleven bulls with first-class pedigrees were din...led
of. all fed by Mr. Tait, the royal bailiff, and Laving weal,
aristocratic, and fancy titles.
- - - - • •

•
Yesterday the sale of the decorations, devices,
and illuminations used on the occasion of the late Rel4,-ian
and national volunteer balls commenced at the Agricul-
tural•hall. and attracted a very large number of pet.ms.
The sale is to be continued this day.

Herbert Wildgooae, a young man Who creat,d a
disturbance and interruption of the service at All Saints
(ritualistic) Church, DU benhead, on Sunday last. was
yesterday fined 40s. and costs by the local magistrate+.
DISPENSARY POR SKIN DISEA,ES' 56, GREAT
lIARLBOEOCGII-MTRZET, RECENT-STREET, W.— One hon.
died and ninety-four patients were relieved at this dis-
pensary during the week ending Oct. 12.

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