The Sun.
London, England, 1855-10-26 00:00:00

CRIMINAL COURT.—(This Day.)

OLD COURT.

Before Mr. Jo :Aloe Willi-, Mr. Baron Alderson, and

Mr. Baron Martin.)
THE TRIAL OF SIR JOHN DEAN PAUL,
STRAHAN, AND BATES.

This morning being the ono appointed for the trial of
theit-2priqoners who stand charged with a series of offences
arising out of the failure of the bank carried on ruder
their names the court was (lamely crowded, and the
greatest interest seemed to be manifested as to the result
of the proceedings.

At a few minutes after 10, the learned judges having
taken their seats, the prisoners were called upon to sur-
render.

Slr John Dean Paul waa the first to enter the dock,
followed by Strahan and Bates, and took his position in
the centre, with Strahan upon his right and the other
prisoner upon his left.

As usual upon these occasions there was a very large
attendance of the members of the bar, the proceedings
promising to prove of the greatest interest to them, in
consequence of the array of legal talent engaged in the
case, and the prevailing opinion that the result would
turn upon a point of law.

The Attorney-General, Mr. Bodkir, and Mr. Poland
were for the prosecution ; Sir F. Thesiger and lir.
Ballantine appeared for the prisoner Strahan ; Mr. Sr r-
geant Byles and Mr. Hawkins for Sir John Dean Paul ;
and Mr. James and Mr. Parry for Bates.
Mr. Straight having called upon the defendants, Sir John
Dean Paul, Robert Baker Bates, and William Strahan,
to plead to an indictment charging them with misde-
meanour,

Sir F. Thesigcr rose and said that be had an applica-
tion to make upon the part of his client, which also
would apply to the other defendants, and that was that
they might be allowed to plead a double plea, under the
provisions of 7& 8 Geo. IV., cap. 29, sec. 49 and 52,
which provided that no banker, broker, factor, or other
agent shall be liable to any conviction by any evidence
whatever in consequence of any compulsory process of
any court of law or equity, if he shall have disclosed the
same in any examination or deposition before any com-
missioner of bankruptcy.

After a brief discussion, the judges decided against
the appeal, and the prisoners pleaded not guilty.
The Clerk of the Arraigns was then about to give the
prisoners in charge to the jury, when
The Attorney-General said he had an application to
make that the trial might be allowed to stand over for
a short time in consequence of the absence of a material
witness, who was coming up from Tunbridge Wells, and
had not arrived, and he (the Attorney-General) held a
letter which stated that the witness had been compelled
to take medicine under advice.

Mr. Baron Alderson paid they would wait a reason-
able time, and inquired if a messenger bad been sent to
the station ?

The Attorney-General said there had.
The Court then waited until just 11 o'clock, when, the
witness not having arrived, Mr. Baron Alderson said
the Court could not wait any longer, and then a discus-
sion arose about adjourning the case, and Mr. Baron
Alderson directed that the witness should be called upon
his recognisances and they estreated.

Alexander Beattie, the witness, was then called in the
usual way, and not answering, another discussion arose
as to when the trial was to be taken, and considerable
excitement prevailed, and just as it was at its height
Mr. Beattie arrived.

Mr. Baron Alderson said that he should direct the
recognisances to remain estreated.

The indictment against the prisoners were then read,
and it charged the three prisoners with having received
from John Griffith in 1851, and at subsequent times,
certain bonds amounting in value to 5,000/., and that
they did without due authority, make away with and
negotiate them.

They were also indicted for conspiracy to defraud.
The Attorney-General then rose and said that he was
called upon to perform now a most painful duty, in con-
sequence of the position of the prisoners whom they had
to try. The defendants carried on the business of bank-
ers, and their tronsactions were of a very extensive cha-
racter, and from the position which they held, the very
highest confidence was placed in them by their customers.
Amongst them was the prosecutor in the present case,
Dr. Griffiths, when the firm was known as that of Snow
and Paul, and had continued a customer through the
changes which brought the other defendants into
the firm, and had continued so down to the time of the
transaction giving rise to these proceedings. Dr.
Griffiths had empowered the defendants to purchase
some foreign securities (Danish Bonds), bearing 5 per
cent. interest, and to these securities he should confine
his attention. In 1850 Dr. Griffiths gave to the defendants
2,0001. to so invest, and in the following year 1,0001.
more to invest in these securities, and subsequently
other sums, making altogether 5,000/. The defendants
bought these securities for the prosecutor, who imagined
that they were safe in the bands of the defendants.
The learned counsel then went on to detail the
particulars of the purchase of the stock. The de-
fendants subsequently became embarrassed, and it was
then that they had recourse to the dangerous
and guilty practice of selling and raising money upon
their customers' securities. Sir John Dean Paul then
applied to a Mr. Beattie, who is secretary to an insur-
ance company, to negotiate a loan from his office upon
some of those securities, but Mr. Beattie told him that
the company did not lend money upon such
property, and then Sir John Paul employed
him to negotiate the sale of the stock which
belonged to the defendant, and the stock was sold
through% broker, and The amount realised:passed to the
account of Sir John Deal Paul, and, so far as he was
concerned, his fault was very clear ; but now for the
part taken by the other defendants in the transaction.
When the defondant s became bankrupt, Dr. Griffiths,who
had property in their hands to the amount of 12,0001.,
waited upon the official assignee and snbsequently saw
the other defendants, from whom he requested to see the
books containing the necessary accounts of his property,
and he then learnt that there was •not any relating to
them. Strahan subsequently saw Dr. Griffiths, and
then admitted that his securities were sold, and begged
that he would not take any criminal proceedings
against them ; but Dr. Griffiths said that he could
not listen to any such proposition, having a public
duty to perform. They had heard that the psi-
Boners would meet the present charge by a defence that
they had made certain disclosures before the Court of
Baukrtiptcy, which would absolve them from the
consequences of this prosecution ; but he (the
Attorney-General) was in a position to show
that such statements did not allude to the stock
forming the subject of the present indictments, for that
had been sold and other securities bought to replace
them. These securities had also been subsequently sold,
and the disclosures made in the proceedings before the
Commissioner in Bankruptcy had reference to those se-
curities, and not to those originally purchased for Dr.
Griffiths.
Dr. Griffiths called—l am one of the canons of Rochei-
ter. I keist an aocount since 1830 with the defendant,
at that time it was teen Paul and Paul, it was
afterwards changed to the present title in 1850.
They bought, at my request, 2,000/. in Danish
3 per cent. bonds, and was debited in my pass-book upon
the following February. I entrusted them to purchase
a further amount of 1,0001. in the same stock, and was
debited with this also, and a further sum of 2,0001.,
making in the whole 5,0001. I do not think
I ever saw or • made any particular inquiry about
these bonds. I remember Mr. Bates saying that they
were quite secure and safe in their custody. In April,
1855, I asked Bates particularly about the Danish
bonds, and he said that they had received the dividend on
the bonds, but the dividends upon some gas shares
had not been carried to my account. The dividends
upon the bonds were regularly carried to my account
down to March. I never gave any authority, either
directly or indirectly, to dispose of any of my shares, or
in any way convert them to their use. The total
amount of my securities and property in their
hands at the time time of the failure was 22,0001.
I did not ask for them or to see them, but I had con-
versation with Mr. Bates relative to these and other
securities they held of mine. I transacted business
solely with Mr. Bates, and I have bad conversations
with him since the purchase of these securities. He
said they were quite secure, and would take charge of
them. With reference to the Danish bonds, I had a
conversation with Mr. Bates and Mr. Strahan on the
28th of April. I went to the bank on other business,
and in the course of conversation I said, " You have
received my dividend on the 5,000 Danish bonds,
but you have not received my interest on the gas
shares (ieferring to my pass book). Strahan said Yes,
we have this morning received the interest on gas
shares, but not yet put them to your scowl "Yes; they
Bates
went out of the room, and returned, saying,
have been received, and put to your account.
The
dividends on the Danish stock have regularly been car-
ried to my account in nay Pass-book from the time of
their purchase up to _
March , 1855. I. never
gave authority, directly or indirectly, to either
of the prisoners to sell, negotiate, transfer, pledge, or in
any way convert these bonds to their own use ; they