Northern Times.
Liverpool, Merseyside, England, 1859-01-26 00:00:00

obtained the object which, he said, he had long sought, and
became a managing director. The learned counsel here
read several-extracts from the defendant's speech at the
meeting in February, 1858, in which he gave an account of
his proceedings when he became a managing director. lie
said his first step was "to inquire into the condition of
the bank with respect to the declaration of a dividend.
The statement of the affairs of the bank laid before me_
by Mr. Smith, led me to the conclusion that no dividend
ought to be declared. (Hear, hear.) This view of the
case was assented tQ at a meeting of the directors ; but,
at a meeting afterwards, suddenly convened, the decision
was reversed. Mr. Woodward : By the whole of the
board, or by part ? Mr. Dixon : By the board, and to
which I
.yielded, the motive being that it was very dan-
gerous, in the then position of the bank, to run the risk
of the excitement that might be produced by the non-
declaration of a dividend ; it might have resulted in a
run, and the stoppage of the bank."

which had been sustained by the bank in the year 1854,
in consequence,of the depression of the shipping interest,
when, as was well known, the price of shipping fell as
much as 40 per cent. The defendant was ignorant of all
these losses, except what was told him by Mr. Smith.
He believed that there • was an available capital
of £1,000,000, with a profit made in the year 1857,
amounting, after deducting £45,825 2s ld for
losses by bad debts, to £69,318 12s Bd. The Court
would look at the defendant's knowledge in July, 1857
and they would see that lie had reason to believe there
was an untouched and available capital of £1,000,000,
and that an annual profit of more than £lOO,OOO had
been made for several years, out of which, down to the
year 1857, the bank had paid a dividend of 7 per cent.
Tie learned from Mr. Smith that losses had been
ustained in 1854, and that the securities held against
them were under liquidation. The paper produced was
put into his hands, which represented that there was
a loss of £334,500, and that loss was now treated as if
it had been at the time a fixed and settled loss. But
that was a fallacy, for it was only an estimate of probable
1 )ss.

Lord Campbell
statements.

This is the seed of all these mis-

Mr. Justice Crompton said it was no answer to a person
who was thereby induced to take shares.

Lord Campbell observed that the statements made by
the directors could only do good to the bank by being
believed by the public.
Mr. James proceeded with the defendant's speech. He
said, " I acceded to it only on the understanding recorded
in the minutes, that the statement to the shareholders
should contain a full and correct disclosure of the position
of the bank, even although it should disclose the fact that
the dividend was declared out of capital. The report that
has been presented, well examined, shows the fact,
although I do feel that it does not make the statement in
the broad terms that would have been adopted if the
intention had been to state that there was a very hand-
some surplus." The object was not to disclose the fact
that the dividend was paid out of capital, but to lead the
public to suppose that it was paid out of profit, and so.to
avoid a run being made upon the'bank.
_ _

Lord Campbell said it was produced to the defendant
as a statement of the loss on which the directors ought
to act. It must be all taken as a total loss except the
£30,000.

The Attorney-General: Still, if the securities should
turn out favourable, the loss would be diminished. The
learned Attorney-General here commented upon the
report, with a view to show that it did not profess that
the dividend could be paid without trenching on the
capital.
Lord Campbell suggested that the report would be
otherwise understood by the depositors, and that although
the course adopted might have been a good one for the
shareholders, it was not so for the depositors.

At this stage of the learned Attorney-General's argu-
ment, the Court rose, and the further hearing was ad-
journed till Thursday next.

Mr. Justice Rill observed that the draught report
prepared by the defendant was free from ambiguity.
Mr. James referred to the.draught Report, which ran
as follows :

LIVERPOOL COUNTY COURT-TUESDAY

BEFORE W. A. HULTON, ESQ., JUDGE

"In winding up the affairs of 1854, a year which is
well known as most disastrous to the customers of the
bank, who were engaged in the colonial shipping trade,
heavier loss has been sustained in the realization of assets,
then taken over by way of security, than the directors
could have anticipated, and than the large provision
already made for that purpose will meet. While the
directors entertain no doubt that the policy of taking
over these assets was one by which the interest of the
bank was best consulted, they regret to inform the
shareholders that the result of a careful revision of these
assets leads them to declare that the reserved fund can now
no longer be considered an item to the credit of the
bank, and that the further amount required to meet
these losses, if realised at once, would absorb about
£50,000 of the capital of the bank. Under these cir-
cumstances, the directors were in doubt as to the pro-
priety of paying any dividend for the last hall year, but
concluded to do so on the ground that the business of the
past year, taken by itself, warranted their doing so, and

LIABILILY OP BOARDING HOUSE-KEEPERS—PATNR V.
BLACK.—This was an action to recover £6 4s. 6d. com-
posed of the following items :—A carpet bag, 7s. 6d. ;
money, £3 Is. ; a dressing case, £2 I ls. ; and a pair of
razors, 6s. The plaintiff, Mr. John Matthew Payne, is
a gentleman from Warwxkshire, and in October, 1857,
he arrived in Liverpool, and went to the Caledonian
Temperance Hotel, Lord Nelson-street, kept by Mr. and
Mrs. Black. There the plaintiff engaged a bed, and
handed his carpet bag and contents over to Mrs. Black,
who said she would place the bag in the bed-room he was
to occupy. Plaintiff then went out, and on his return in
the evening, he was shewn to his bed-room by Mrs.
Black ; bat on their way up stairs she asked plaintiff
if he had any money in his bag, and he said, as he
alleged, " yes, George IL guinea, and two sovereigns."
Defendant; however, alleged, that he said "guinea
and one sovereign." After this inquiry, the landlady
nformed the plaintiff that in his absence a stranger

that it was advisable to spread the losses arising from the
affairs of 1854 over a future period, rather than expose
the shareholders to the inconvenience of the intermission
of any dividend_ which gnmr, of thorn rn;nhf

had been in the house to tea, and that she
allowed the man to go up-stairs into the bedroom to be
occupied by plaintiff to wash his hands, and that shortly

he stra

0" 7 r----^r-7
very severely. The directors do not see any. more im-
propriety in this course than in that of an individual,
after an unfortunate year's business, supplying his neces-
sary expenses out of his trading capital, provided always
that the fact of this being done is fairly and honestly laid
before the shareholders."

ouc uaat,vi r...uu 111410 1W WALL
cut open plaintiff's carpet bag, broken open the dressing
case, and generally ransacked the contents of the bag.
Plaintiff found his money was stolen, and damage done
to his property, and he told Mrs. Black that he should
hold her responsible. He stayed at the house a day_or
two afterwards, and when he was settling his account
before he left, he claimed to have his loss allowed, but
the son of Mrs. Black—a man who appeared to be about
thirty years of age, and who was called as a witness—
interposed, and insisted that the plaintiff should pay all
he owed irrespective of his loss. Plaintiff paid what- he
owed, and now brought this action to recover the amount
of his alleged loss. Plaintiff having stated the case, Mrs.
Black and her son gave evidence for the defence, declaring
that they knew nothing of the stranger that
was let into plaintiff's bedroom, and who had cut open
and ' lered "vide

Mr. James proceeded to show that there were bad debts,
which the bank had incurred, to the extent of £334,500.
The Attorney-General said, they were possible bad
debts, but not a clear absolute loss.
Lord Campbell said, he thought it must be taken that
the paper produced by Mr. Smith to the defendant showed
a loss of £34,500 in bad debts.- It said, that if the
steam-boats were not sold there might be a further loss
of £30,000.
Mr. James
.said, the directors had withheld from the
public the fact that this sum of £334,500 bad debts, incurred
from 1854 to 1857, had been written off. The defendant in
his evidence said that Mr. Smith produced to him a-state-
ment of £35,500 for contingent losses, and those losses
altogether made up £400,500 of bad debts. Then, what
was there on the other .side-? There was what was

plum the bag. _ais evidence was of a very
unsatisfactory character. His Honour considered there
had been negligence on the . part of the boarding-house
keeper, who had not shown a 'due and proper care whilst
having custody of plaintiff's bag; he therefore gave a
verdict for plaintiff for £4 I ls, considering thatplaintiff's
ci • -

called the " suspense, account," • where commission and
interest were charged upon bad debts as if they had been
available securities. Then, £65,500 was put down
for forfeited shares, which could notfairlvbe taken as assets.

situ for the dressing-case, which was produced, was
excessive. It came out in a discussion between His
Honour and Mr. Grocott, who appeared for plaintiff, that
unlicensed houses where persons are received to board,

Mr. Atherton said, those shares had been paid up, bat
they were deposited with the bank for advances, and as
they were not redeemed, they were forfeited under the
deed.

Mr. James contended that, according :to the defendant's
own showing and opinion, expressed' to the directors,
there ought not to have been any dividend, but he weakly
yielded to the other directors on condition that it should
be stated that the dividend was paid out of capital.
That was a course which could not be justified in any
trader. The learned counsel contended that there was
abundant evidence of false representation which sup-
ported the verdict. Then it was said the plaintiffs had
no ground of action, because the report was not addressed
to them personally. But it was proved that the reports
were furnished by the bank to any broker who applied
for them, and that they were obtained by a broker,
Mr. Fernley. In ,this way they were . seen by the
plaintiffs,' who read them; and so were induced to
purchase shares. That evidence was not contradicted.
The next ground for the rule was, that evidence had been
improperly rejected._ _ _ •_ _ _ _ _

Lora Campbell said, the Court would be glad to hear
the learned counsel upon that point.

Mr. James : The leports of 1837 and 1838 had been
tendered, but,he thought the evidence was not presied.
The Attorney-General said, he had pressed the evi7

be most cruel tUexclude the evidence. The learned
Attorney-General here read the extracts from the Reports
which he wished to have admitted, but which were
rejected. The first extract was from the Report of
1837, and was as follows :

such as the house of defendant.
to the traveller as the licensed inn
ACTION TO RECOVER DAMAGES FOR INJURY DONE EY
Funious DRIVING.—SIMPSON TAYLOR.—The plain-
tiff in this case . was Thomas Simpson, coach and car
proprietor, of Islington, and the defendant, John Taylor,
butcher, of 112, Mill-street. On the 26th of November
last, a servant of the plaintiff, was returning from North
Everton along Church-road, in the direction of Everton
Village; and wheirhe_ had approached a corner where four
streets meet, and was by Rupert-place, a butcher's shandry
was coming along, driven by one of defendant's young
men, at the furious rate in which butcher's carts are in
the habit of being regularly driven, much to the danger
of persons moving about the streets. The shandry took
a very sudden turn into Church-street, and the driver of
the .shandry having no command over his horse, the
shandry run against the cab's off wheel, splitting the
under carriage from the body of the cab, the body
falling into the high road. The youth in charge
of the shandry, thinking he was free, continued to drive
furiously along, until he was stopped and brought back
by another cabman. The action was brought to recover
the cost of repairing the cab, and compensation for three
days' loss of its use, together, £5 6s 6d. Mr. Almond
appeared for the plaintiff, and Mr. lime for the defen-
dant. After hearing the evidence of several witnesses on

are by no m3ans so safe

each side, His Honu.r gave a verdict for the plaintiff for

LIVERPOOL POLICE INTELLIGENCI

MR. MANSFIELD.

It maybe proper hereto remind the

harton was

the intern-al man

vent is essentially that of a

bank. With the exception of one only, appointed by the
directors out of their own body, it is combicted by the

chairman and managing director, no other having access
to the pecuniary transactions of the customers, thus

combining the secrecy of a private with the security of a
joint-stock bank."

The second extract was from the Report of the following
year (31st of July, 1838), and ran thus :
" One other point only remains to be mentioned, the
internal management. This remains as before, being
exclusively confined to the manager, assisted by the
directors, who alone have_ access to the details of the
bank."

➢ir. James contended that the evidence was irrelevant
to the issue to be tried, and was inadmissible -upon that
ground. Moreover, it was not tendered to show the/prac-
tice of the directors, but that the plaintiffs were ac-
quainted with their practice ; and it was neither relevant
to the issue nor contradictory of the plaintiff's evidence.
The practice shown by the extracts was contrary to what
was pointed out by the deed, which placed all the direc-
tors in the same position. If the fact referred to in the
extracts was of any importance it- was proved by the de-
fendant in his vivo voce evidence; and, even-though the
evidence had been improperly rejected, if the court saw
that it could not have influenced the verdict, they would
not, upon such a ground, send the cause down again for
a new trial.

Mr. Wilde and Mr. Brouen followed on the, same side
but directed their observations chiefly to the point of the
rejection of the evidence.
The Attorney-General, in rising to support the rule,
said, he wished to possess the court and the public with
the real merits of the case, for the defendant, who was a
gentleman of great fortune and unblemished character,
felt very severely the stigma cast upon him by this verdict.
The defendant held 1,400 shares in the bank, and
had thus invested as Much as 14,0001. in the es-
tablishment. He had never parted with a single
share, and '• never derived any advantage
from the resources of the bank. He had, invested as
much as 5,000/, in the bank in the course of the previous
half year, and a . portion of that sum in the month of
May preceding the month of July, when the report in
question was made. That was the gentleman WILD was
supposed to have believed at that time that the bank was
in a state of insolvency. The :plaintiff's ease was that
the report was false, and, in order to show, that, they
produced a report made by Mr. Banner in February,
1858, which showed that at that time the whole of the
capital was gone. He (the Attorney-General) objected
that there was no ease for the jury ; but, subsequently,
the paper produced by Mr. Smith to the defendant
was admitted in evidence. He (the learned Attorney-.
General) contended . there was no evidence to show
the untruth of the statement in the report, that the whole
of the capital had been paid up. It was true Mr. Banner
was of opinion that only £936,136 lOs had been paid
up, but he was not set right by 'Mr. Sellar. The learned
Attorney-General here read from the report of the pro-
ceedings of the meeting on the 25th of February, 1858,
in support of this statement. The defendant knew
nothing at all about it. The statement on this subject
was not evidence on oath, but was merely a report of
what took place at the meeting. The defendant had no
motive for misrepresenting the fact.
Lord Campbell said, the-re was motive, for if the truth
had been told the sharoA would have been down at zero.
The AttorneY'gqe;* TcfeYre4 to the get loisoP,

whatever

fanning nine improper houses in Albion

peured that the prisoner is a boot and shoemaker and a
coal dealer, and had been formerly a policeman. Last
week he charged a police-officer with assaulting him, but
was dismissed. To prove the present charge,
officers were produced, who swore the
prisoner kept the houses, and that there had been
robberies and disorderlv conduct there. It was urged for

:yeral polic

the defence that the prvisoner only collected the Cents of
the houses. It was also endeavoured to be shown that the

)olice had a bad feeling towards the prisoner. Ile was
•eniandcd, but let out on his own recognisance.

THE- NORTHERN TIMES, WEDNESDAY, JANUARY 26, 1859

SOCIETY OF PINE ARTS

A general meeting of the annual subscribers to the
Liverpool Society of Fine Arts was held iu the Clarendon
Rooms, at two o'clock, yesterday. Thomas Dawson, Esq.,
presided.
The minutes of the original meeting at which the
society, was formed, were read and confirmed.
The following report was read :

" The provisional council, who were appointed at the
general meeting on the Bth February last, to prepare a
code of laws, t 9 appoint the honorary lecturers and
treasurer, and to make other arrangements for securing
the objects for which the society was established, have
summoned this meeting, in conformity with other pro-
visions of the resolution under which they were
appointed, which ordered that the laws, together with
a report of the financial and other proceedings be sub-
mitted to the first annual meeting, to be convened within
twelve months. _ •

"The provisional council have to report that immediately
after their appointment, they requested Mr. Henry
Thompson to act as treasurer; and they and the society
are greatly indebted to that gentleman for the able and
efficient manner in which he has discharged the very
onerous duties of the office.

" The provisional council also appointed, as honorary
lecturers, the following gentlemen ; a selection amply
justified by their well-earned reputation in literature and
science : Ancient History, William Ihne, Ph. D. ;
Literature, Rev. James Cranbrook, Queen's College ;
Anatomy, Alfred Higginson,
" The provisional council have been so much occupied
with the recent exhibition, and in the preparation of a
code of laws, that they are unable as yet to present any
report of their proceedings during the past year; and they
suggest that this meeting, at its rising, stand adjourned
until Monday, the 7th of March, for the purpose of
receiving the general report, and of electing the council
and officers for the ensuing. year. If the meeting adopt
this suggestion, it would be necessary to continue the
provisional council in the functions conferred upon them
until that date.

"Anticipating that this suggestion will be approved of
.by the society, the provisional council on the present
'occasion forbear from any detailed notice of their general
proceedings. They beg, however, to congratulate the
society upon the successul results of the late exhibition.
That exhibition has elicited such warm applause from
the general public, and from artists and connoisseurs, as
fully justify the anticipation of those by whom this
society was established.

" In preparing the code of laws to be submitted for your
consideration to-day, the provisional council have ad-
hered to the following principles :
"1. That the constitution and management should
combine the influence of a liberal and enlightened public
opinion with the cultivated and technical intelligence of
artists ; and it is anticipated that thus will be secured all
the substantial advantages derivable from academies of
art, redeemed from the imperfections inherent to the
contracted sympathies of our exclusive coterie.
"2. That the professional supporters of the society
should feel that admission to participation in its advan-
tages confers honourable distinction before the pro-
fession, and the public at large. For this purpose on the
one hand, it is provided in th draft to be laid before the
meeting, that no artist shall be permitted to take any
part in the management of the society, unless generally
elected by the council ; and on th 6 other, it is proposed
to confer upon artists so elected the right of participation
in the advantages of the society, and in its management ;
and also certain privileges in the exhibition of their
works, to be defined by the council, from time to time, in
bye-laws.

" It is, further, proposed to form a superior and limited
class of professional members, with additional privileges ;
the greater difficulty in obtaining admittance into this
class, under judicious management, will render . the
distinction so conferred more honourable. •

" 3. That the wealthier amateurs of art should be invited
to give substantial tokens of their interest in the objects of
the society by compounding in one payment for their
annual subscriptions, and by such other donations as they
may feel disposed to make; the value of their liberal
support being acknowledged by the bestowal of the addi-
tional privileges specified in the draft of laws. All these
donations, it is proposed, shall be invested in the names
of the trustees of the society, in order to modify varia-
tions in the annual receipts, which will necessarily fluc-
tuate with the prosperity of the community; and also, as
far as possible, to secure the limited liability of those
-gentlemen, who may vouchsafe their support from, the
love of art, or on grounds of public polity.
" In conclusion, the provisional council beg to assure
the society that the draft of laws now submitted for con-
sideration, has been prepared with the greatest care; and
and having received the approVal of gentlemen very com-
petent, and warmly interested in the society's welfare,
it is hoped, therefore, that it will be adopted as the con-
stitution of an association, which may prove eminently
useful in promoting the highest interests of art in this
great succesor of these commercial principalities, which
were ever the best patrons of the most perfect develop-
ment of art."

The Chairman moved that the report be adopted.
Mr. T. J. Ewbank seconded the motion, which was
carried unanimously.

Mr. Henry Thonipson, hou. treasurer, moved that the
meeting at its rising do adjourn, as recommended in the
rezort,toM?pday, the 7th March next.

BOWdle seconded the motion, which was carried.
Mr. Qoepel moved that the council be requested to
continue in office until successors be appointed, which
was seconded by Mr. Hay, and agreed to.
Dr. Thomson, hon. sec., then read a draft of the code
of laws, adopted by the council, for the future regu-
lation of the society, and submitted for the approval of
the meeting. Dr. Thomion moved that the laws be
approved of.
Mr. C. E. Smith, sculptor, seconded the motion.
No,. objection was made, and the motion was, accord-
inzly carried.

The Chairman read the following letter :

"Liverpool; jaTruary 21,.1859

My Dear Sir, —You will remembei that, at the last
council meeting, on the 17th instant, I stated that, having
seen the first exhibition through, and the code of laws
for the future guidance of the society adopted by the
council, I should resign the post of honour and laborious

duty which I hold.
" It seems expedient that, as I received from the public
the pen which I have wielded on their behalf, to the
same public should I return it, though it be nearly worn
out ; and you will do me the favour to lay my resignation,
as one of the honorary secretaries, before the subscribers,
on Tuesday next.

"Not tliit my zeal is quenched, nor mp desire to help
is at all diminished, but the time occupied in the arduous
labours of the put year admonishes me that those duties
must be relinquished, to prevent their interference with
my professional engagements.
" It will be to me a happy recollection that, during so
arduous a year of service as this has been, I have enjoyed
your friendly and efficient offices, and been so closely
associated with so able a colleague.—l remain, my dear
sir, most truly yours, "DAVID P. THOmsou, MD.
" To Joseph Boult, Esq., Hon: Secretary."
The Chairman observed, that it was with much regret
he read. that letter. He could bear testimony to the
efficient manner in which Dr. Thomson had performed
his most laborious duties during the several months
through which they had passed. As Dr. Thomson's
professional engagements were interfered with, of eourse
no public duty should have preference over the duties
which that gentleman owed, as a professional man, a
married man, and a father. Under those circumstances,
although it must be painful to them to- receive his
resignation, they must sympathise with his motives
in giving up the post which he had so ably filled.

Mr. Halcordialy endorsed the remarks made by the
Chairman in briumng before the meeting the great
merits of, Dr. Thomson. He was sure Dr. Thomson's
merits were above all praise. He hoped the time
would arrive when they might have am opportunity of
getting some portion of the services. of Dr. Thomson
in the course of their future career. He concluded by
proposing the• following resolution : "That this
meeting mucht regrets engage-
meats that the professional
of • Dr. Thomson prevent that gentleman,
from continuing to act as one of the honorary
secretaries, and to .be obliged to accept tis resignation.
They desire to record their highsense of his very valnAble
services during the arduous period in which he held
office."

Mr. enllow seconded the resolution, which was carried
by acclamation.

Dr. Thomson returned. thanks in a few words, 'and
decletred that ii' he could in any way contribute• to 'the
progress of the society, he should be most happy to
render privately any services in his power.
Mr. Joseph Boult, honorary secretary, in moving a
Tote. of.thanks to the chairman, expressed his very great
regret at the loss the society was about to sustain by the
resignation .of Dr. Thomson, and testified. to the very
great pleasure he had himself enjoyed during their
harmonious co-operation together for the benefit of the
society.
Thanks were passed to the Chairman, and the meeting
separated.

Dr. Tschudi, the well-known traveller, has just
returned from his last journey to Peru ; the results of
which will be submitted shortly to the public.
11. Home,' Secretary of the Academy of Fine Arts at
Brussels, well known by "History of the City of
brussels,". is publishing a new history of Charles the
Fifth, from original sources. The first volume of the
work hwi left the poss.