The Sun.
London, England, 1841-03-04 00:00:00

REPORT

OF THE DIRECTORS OF THE LONDON AND WESTMINSTER
BANK, TO THE SHAREHOLDERS, AT THEIR SEVENTH AN-
NUAL MEETING, HELD ON THE BANK PREMISES, LOTH-
BURY, MA RCii 3, 1841.
Patrick M. Stewart., Esq., in the Chair.
The Directors have much pleasure in meeting the Share-
holders at their Seventh Annual 111ecting, and in reporting
that th 3 business of the Bank has proceeded, during the past
year, in the same steady course which marked the progress of
former years.
The profits of the year, after defraying all the current ex-
penses, and making allowance for all bad and doubtful debts,
amount to 48,951/. Bs. 10,1. Ont of these profits the Direc-
tors paid last September, a dividend at the rate of six per
ceat. per annum upon the half-year ending in June. And
they now declare a similar dividend, payable on Wednesday
next, upon the half-year ending in last December. After the
payment of these dividends, there will remain from the profits
of the year 13,114/. 12s. 10d., which added to 33,1001. 11 s. Id.,
the unappropriated profits of former years, will make the sur-
plus fund arising solely from banking profits, amount to
46,215/. 3s. 11d.

The Direcurs being of opinion that it is desirable t 3 in-
crease the eapltal of the Bank, have cleterniincd to issue ten
thousand more of the unappropriated shares. And as they
think that any additional value which t'lese shares now pos-
sess fairly belongs to those who joined the undertaking in its
early stages, they will issue them wilhout premium to the
present proprietors, in the proportion of one to every three
shares all-catty held. The payments will be made by four in-
stalments of 51. each. The details of this arrangement will be
communicated by a circular letter, addres,A to each share-
holder. By this measure the paid-up capital of the Bank
will be increased to 800,0001.

The Direc.ors who retire from office on the present occasion
are Sir Thomas Freemantle,
.Bart.; William Haigh, Esq. ;
and Joseph Esdaile, Esq. ; but these gentlemen being eligible,
offer themselves for re-election. _

During the past year the banking institutions of the coun-
try have occupied a large portion of pub'ic attention. The
Directors trust that the events and discussions which have
taken place will have the effect of diffusing a correct knowledge
of the principles of joint-stock tanking-, and that institutions
like the London and Westminster Ban' will be allowed to ex-
ercise the sal—e legal rights and privileges which are accorded
to other banking establislatunta. .
PROFIT AND LOSS, 1840.

Dr.
Payment of the dividend on the 10th Sep-
temly.r, 1840, at the rate of 3/. per cent. £17,018 8 0
Paymen' of the dividend nlvv declared, at
the rate of 31. per cent. on the 10th
March, 1841 •••• 17,918 8 0
Balance cf unappropriated profits 46,215 3 11

£52,051 19 11

Cr.
Balance of unappropriated profits 31st
December, 1839
Net profits of the year 1840, after defraying
the total expense of management, includ-
ing payment to Directors, and making
provision for all bad and doubtful debts 43,951 810

£82,051 19 11

Balance brought down £-16,215 3 11
Mr ISAAC COHEN rose to move the adoption cf ih, Re-
lie expreQsed his great satisfaction at the prrgress
they had made during the last year, notwithstanding all
the difficulties the Directors had to encounter, and not-

withstanding the derangement that hail taken place in the
mercantile into eats of the country. Und-e• such circum-
stances he thought great credit was due to them for the
manner in which they had conducted the affairs of the
Benk.—( Hear, hear.) In no inst ince bad the profit; of
the Bank been diminished in any one year. He happened
to have. a personal knowledge of very extensive money
transactions, and he was gratified to state that none of
their Directors, or other parties connected with the Bank,
had been borrowers of money.—( Hear, hear.) That was
a great proof of the judgment and discretion with which
they had conducted the affairs of the Bank. With reg ard
to the increase or capital, he, for one, woul I have been
far more pleased if it had been increased to one million.
Having already had satisfactory proof of the manrer is
which their affairs were managed, it was in itself a sufficient
security that the increased capital would pay an ample
dialled, while it formed a security to the pul.lic, which
was so necessary in times like the present. He believed
there would be no dissentient erg arding the proposition of
the Directors, and he was so satisfied of the continued
prosperity of the Bank, 'Oat he should have been glad if
the capital were increased 200,0001 more.
Mr. LUARD seconded the motion, a-id he could not sit
down without congratulating his fellow-shareholders on
the advantage of being connected with so excellaut and
profitable an undo: taking.
Mannst.ny said, 'Mot-) the question was put be
wished to make a few observations. He fully ago eed in
the observations made by their. Chairman, whose zealous
and indefatigable exertions in promoting tee interests of
the c mcern were admitted by all, as to the benefits and
advantages which were likely to result to the community
at large from the establishment of joint-stock banks pro-
perly conducted. It was equally certain that they might
become mighty implements of miachi f. fraught with the
greatest danger and inevitable ruin to all those concerned
in them, unless they were conducted on prim iples of the
greatest economy and foresight. Now while he received
with implicit faith all the statements of the Directors (for
he could not call it a Report, it was merely an abstract),
he for one was presumptuous enoegh to think that it would
have been far more satisfactory if the Directors had laid
before the Po rrietors not an abstract, but a detailed state
went, of the accounts of the Bank. It would seem from
the Report that the less they knew of their affairs, while the
result was satisfactory, the better. lie, however, be-
lieved that the more th kre.v of them the better
—they were all aware that unlimited confidence
begat neglect, and their affairs would get into a state of
confusion. lie believed no detailed account of the income
and expenditure had ben sent reund to the Proprietors
since the year 1835, and then it was obvious that the plan
gave the greatest satisfaction. He had observed in the
Morning Herald a statement. which be thought required
some explanation, namely, that at their \Vbitechapel Branch
these had been a very considerable c'efalcation, and that
the manager had been found making fraudulent entries in
the books, and had been engaged in transactions with
a fraudulent creditor. He ai,hed to know whether the
secur'ties of that gentlaman had been found sufficient, and
whether he had been removed from the management, be-
cause it was clear that he was totally, unfit to be entrusted
with such a situation?—( Hear, hear.) He should like
also to know if these liabilities with the Northern and
Central Bank, which in 1837 were stated to be sufficient,
had been fully satisfied and discharged? He wished also
to know whether the debt upon the building in which
they then were had been discharged, or if it was in course
of liquidation ? It might be considered impertinent, but
he would wish also to be informed whether they had a
surveyor at present mei% ing a salary from them ? He
would be glad also to know what was the rent received for
the offices let off from their establishment, as private report
had it that they were considerably under'et. He was no judge
of these matters and knew nothing about them personally,
but they were questions of factious consideration to the
shareholders:ea( Hear, hear.) lie now came to another
important matter—he tad agreed to the necessity of
having a detailed esti nate inst-ad of an abstract. They
all knew by experience that a body of men picked out
from the moot respectable in society, who one and all,
would score to deviate from the strictest principles of in-
tegrity individually, committed as a body acts which indi-
vidually they would repudiate ; therefore, it was essential
to the Shareholders to know on what principles the in-
tricate departments of the establishment were conducted.
The Shareholders would recollect that they had a large
number of agents in various parts of the town, and they
required a good deal of supervisi in and auperintendence.
Now, in order to know what they were doing, he should
like to know what were the law expenses of the past year.
Looking at the Report made in the year 1835. he found
that the law expenses amounted to the sum of 2,880/.
In 1837 the law expenses amounted to 2,685/. Is , making
in the two years, not consecutive—the sum of 5,565/. ls.
spent in law. Was not that enough to show the necessity
of some inquiry into the expenditure? Since 1837 the
Proprietors had had no statement upon the subject. Now
he did mean to say that he could not understand why in
such an establishment there should be more cats than
there were mice to catch. —( Cheers ) He hoped he was
not trespassing too much upon their time, but with such
enormous expenses for law business, he would put
it to the Proprietors whether it would not be better to
have a solicitor of their own at a fixed salary, who should
do all their business, and so not only condo` et
xoPeWhieel;
but prevent unnecessary ones. Another
he wi-hed to direct the attetiti on of
h
thought it was a most important principle
tte t
money to
haatet he Direc-
tors should be prevented from v
away
anysanction of the
charities or otherwise without th
tht einwby
direct
Proprietors.—( Hear, hear.) He the newsprapers
mooe/r.o accident he had
to the .Clerka' Pen-
sion that they had voted the sumai
boyf I
Fund—(Cheers)—
learned that they were subscribers to two other charitable
nweh,iohhethheelyieved, was th Bat-
w• re subscribers of
if
iuongdtso. o—c(
hHa er
iatry, ea r.
School,) t Oo
21 2s. a year, and the other he thought was the Adelaide
Bounty Fund for 1/ Iv. God forbid that he should be
the one to put a stop to cha ity I He was only anxious
that such en abuse as it might become should not enter
into their Corporation. Having said so much, he "um
touch
feel called upon to move the continuance of the subacrip-
tiona. It was not the money, but the principalien, ttloaa
t
contended for, because it was one of which he felt great
apprehension.—(Cheers.) He was about, again,
upon very delicate ground—he felt great respect for the
Directors, and would not wish to say oee word that would
appear to reflect upon them; but he believed that they
were'self-elected.—(Crics of " No, no.") lie did uncle--
stand there was to be an election that day, and he would
willingly vote for the re-election of the retiring Direc-
tors, but he had never been c anvassed for any vote, fuld
he was anxious for open electiorpi so that they might ob-

,
f-CIC
EVENII4G ED/TION.

fain the assist:wag of new area able mei, and new' prinele
ples._(Fleur, hear.> There w:es no corp erviona le the
City that was net much abused where the t leatten was
s Agsie, smit n ieley ne.tt7rs :Vele to be set-
tled, and such immense accounts t.) he made out, was it
not straege that there shoubLbe no auditere? Was it
PossiWe that Mr. Gilbert could make out .c.eteh comaca ed
account:, or was it to be cxpectel that tile Dire tyre
could audit them ?—it was tee 1111,61 expect it.
—(Hear, hear, hear.) He wr:s about to tench upon
even more delicate ground than any he had
yet gone over, but he wished to call the particular atter:-
lion of the Proprietors. They would al recollect the
disastrous failures of the two private Banks, aol the
causes which led to their ruin. They would remember
the disastrous and ruinous consequences which followed
the Guildford bankntptey—they would remember the
case of the Northern and Central Bank where t e Di-
rectors were found to have been accommodating r. adr
other to the moat unlimited degree.—( El, a hear.) He
weu!d submit, without in the lea,t referring to the pre-
sent Directors, whether it would not he very setislatoory
If the Directors could suggest some motes among t
themselves for the security of the Proprietors, by whiolt
Vie advances of money to the Directors should be regu.
feted.—.(Hear, hear.) He knew that it was a delicate
subject to trespass upon—(Clieur:)—but he had thought
it his duty to throw out the suggestion—he tea} only to
beg pardon for trespassing so long, and he hoped he had
not said one word which would tun.l to cause ditcerd
amongst the Proprietors.—(Cheers )
The CHAIRMAN said it was the fr e'ing of every oee of
the Directory, and also of every Propr:etor present, that
they were deeply indebted to the Hon. Proprietor for the
questions he had put. H was, because he felt that he
could respond to them moat satiJa2torily, and that his
answers would establish the. Directors steal mote firmly
in the confidence of the Proprietors. The first questi.m -
was as to the detailed accounts which were wished to be
laid before the Proprietary, and the Hoe. Gentleman al..
laded to 1835, when accounts were presented. That gee--
tion had been mooted at several meetings, and the answer
then given he hoped would prove satisfactory on that oc-
cash:). The Directors were responsible for the accerecy
of the details of the accounts laid before the Prop:ieters,
and they thought it proper that t'ley should not proclaim
to the public and to rival establiAments more
of their anirs than was absolutely recessery.
With regard to Mr. Roes,, the Melange:- d V:eir Etstcrn
Branch, he had purpesely abstained front taring notico
of thq in the :t itements he bad made at the opeei eg of
the meeting, in order that lie might give a most explicit
statement to thee Proprietors on the subject. Mr. Reese
the Manager at the Eastern Branch, had been a material
defaulter, and when that was discev.e-cd, the Directors
took all the precaution, which 11E.y. always *did, to guard
the ir,te:ests of the Proprietors, at d the result, he was
happy to say., wee that they had made good their claims
against 1113 securities of that indivhluz.!, and he believed no
loss would take place from that transaction to the Corn
parry. The moment Mr. Ree.'s dolinqueoey was detected.
he was suspended, and his transactioes suppressed.
Ho had a melancholy pleasure i t rrivenirg to
Mr. Rees's eclinquencies, became they n, t as a con-
trast to the conduct of the other six Managers, who
had the entire confidence of the Directors, and
ho had no doubt would ale ays have it. —(Cheers )
Wish rt gated to the northern and coat .al lisb.ii acs, Le was
happy to say tha th it had tunied out a g investment,oriina
for they had get all their moac:, together with 5 percent.
—(Cheers.') With regard t, the tic illiot*, the
demand fur it was .18.000/. ; hut, by some slight bge.rdee
main on the part of the Directors, in applyii g the purchase
of shares to the liquidation tithe expense, ti. a sum had been
reduced to 30.000!. , aed he zit mg lit ti e rrete ietors would
admit that tha' vat a good ievestment c,f the is meaty.
Mr. MAUDSLEY wished to know if he was to uac.-stand
that that amount was not paid; and if it was trot, whether
it was in the tieit of payment ?
. . .

The CHAIRNIAN sae 1 that the •who'e amount was p.
—(Cheers)—and aided to whleit all their tradesmen's
bills were paid—( Cheers)—arid the annunl ter t tee Di-
rectors received from their effices wes 770/.—(Ctee:s.)
As to the law expenses, they had been re eat, he admitted,
is 1835 and 1836, but that expeess been incurred in
procuring their Charter, in their ?am suit with tl.e Balk
of Englael, and in obtaining tad, Act for melee and being
sued. Tho c expenses exceed 5,0004 but this he would
venture to say, and it augured well fur the. Company, that
within the I:st i alt) ear the law exprises had net seceded
1501. for the pr.:sent Bank and all its branches. —( Che qs.)
It was arid i ► his minty that a buret bairn dreat'ei the
fire—(Laughter)—and acting upon that p: inciple, tie
Directors had avoided law ar much as possible. It was,
in short, too vulgar far them.—( Loud laughter.) Then
as to tile charities to which the Honourable Proprietor
had alluded—they hal certainly coot ihtved 1001. to the
Clerks' Pension Fund, and he thought that every Proprie-
tor would admit that they could not have done better with
their more;, because, what was ye object of that excellent
sociea ? Lt was to pro, i !e for disab'e f clerks of bankers
in Lendon. The Bank of England hal given 5001. to
that Institution, and he believed every Bank in the City
bad given the same sum that they had.—( Cheers.) As to
the Directors being self-elected, he Lelieved the Hon.
Propric or was convinced that such • sans not the case,
shortly after he had made Lin statement. The Di-actors that
went out by rotation were in the hands of the Proprietors,
and any geritlemin aspiring to the honour of a seat in the
Direction, by giving six weeks' notice would be earners-
tesit to be elated. In allusion t t the •:iel'alea.ion of !Ir.
Rees, the Hon. Proprietor had observed that he consid..red
some strict superintendence shoal l Le had over the different
Manag,irr. Now with respect to that he could assure the
Hon. Proplistor th it there was a responsible visitation
every day by some of the Proprietors, to all the branchea
connected with the establishment. With regard to au-
diting the ace:au:its, he begged to state that eaery week
there was a Coremittee of Directors to audit every ae.
count, and they had io the result of tl:e accounts submitted
to the Proprietors fie weekly stamp of the are.ctors upon
it. As to the last point to which the Hoe. Proprie;or had
adverted—the advances made to the Directors—he could
assure him that they were treated as the common custom.
erg of the Bank were, and no accommodation was given to
them further than was given to the other customers of the
i bank. He believed now that he had answered all tbo
questions put by the Hon. Proprietor, and he trusted that
I those answers had teen satisfact try.
Mr, MAUD3LEY observed that tie worthy Chairman had
satisfied him upon all the subjects he hal a leers ed to ee-
-1 cept two—one invclved the i rinciple of their voting away
money for objects of charity without the sanction of the
Proprietors. He had no objection to tie Dile:lora being
charitable, but he thought they ought to make some prc-
li at the gene -al meeting for that purpose, end if
they did so, he should not oppose it; but he not like
I the ptinciple c f the Directors ; iving away the money of
the Proprietors without the sanction cf a public meeting.
It appeared also to him, th it as far as regarded their pre-
limitary expenses they ought to 1 aec a c'eatitcd account.
and not such as had been produce .1 tht t day.
The CHAIRMAN said, that the items which had been
given away in charity sac e very small, and he was pre.
pared to justify every eue of them.
The resolution for the adoption and clrculation of the
Report was then put to the meeting by tl c Chairman, and
declared by him to he carried unatiimousle,
On the motion of Mr. SAVAGE, seconded by Mr. MAD-
DEN, the cordisl thanks of the meeting sic,e unanimously
voted is the Directors far eir successful governmetit
and management of thcabank;darine'' the last year.
Mr. HARDY moved that the three Directors who averse Out
by rotation be re-elected, namely, Sir Thor. Freeniarele,
Bart., William Hag'-, and Joe. ES3.IIIIC, EIVP, He had
known the floe. Baronet, Sir 'lle s. Frecirantle, for many
years, and hard the highest opinion of his character and in-
tegrity; and, inch et, the expoi :nee they had already had
of his z.-al as one of the Directors of the Company, was
the best earliest of what might be expected from him in
, future, and he fet much pleasure in coupling with hint
the other two gentlemen.
Mr. NIAUDSLEY said he might be interrerieg with some
, other gentleman, but ato the observations he had felt it his
, duty to snake, be should take the Jibe ty of seconding the
motion as the best Ir.:of he could give of his continued con.
fidence in the Directors, and of his satisfaction at the state.
merit that had just been made.
The motion was then put from the Chair and carried
unanimously.
A PROPRIETOR then move I Cie thauks of the ITICQCI g
, to Mr. Gilbert, aid the Managers and other Otficera of
the La .k.
The motion haying been seconded was carried unani-
. mouslv.

General ARMSTRONG moved the tl:alks of the meeting
to their Ch tirman fs)r his zeal at.d a.tcn:ion to the inteteits
cf ti e c mccra, and his conduct in tic chair that day.
Mr. Nlnuost.Ev seconded the motion, which was carried
with accamaii)r.
The CHAIRMAN briefly returned tianks and the ince....
ing separated.

--- - -- ---- „-
B ELL'S Life in Lon b
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and it is indeed of vital importance
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Bank of England, having devoted their whole
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sated
siftstoi.
iiei arddroeopri
t,i
c:•er c,lprofifri,oes from
bemarle-street, Piccadilly. opposite the York Hotel, and 76, lives
to this branch of Science, and their long extensive .
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which have gained universal approbation. lin •
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every object becomes clear and distinct, candle-lights
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Principal members of the medical
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in.street, Bank of England.
HOUSES IN
FLEET-STREET.—On Monday
mornit g the
staircases of the offices of the Weekly Dig.
patch w •
M. were observed to be sinking, and on examination by
. Aiding and Mr. Ward, the- builders, it was deemed
Ile, ersary to erect additional shores, and to warn the real.
dents of the i d• npen tog danger. The consequence was
workmen were employed the whole of the day in removing
furaitut c. The houses that have fallen were some of the
oldest in Fleet-street, and were standing long before the
plague alel fire of London, and a tradesman in the neigh-
bouthood informed the reporter that he remembers their
having Le ~n mode nized about thirty-five years ago, pre.
vious to which t,me they presented a similar appekrance of
eaves and gable ends, similar to those at the house of Mr.
Johns, the bogies-Ic, adjoining the Temple-gate, opposite
Clinneery-lanc. Iris said that many of
the houses- in the
neighbourhood of P
uppity's-court are in a very unsafe and
ilibi i toted conditior, and that many of the floors have
sunk sme miss below the level. It is hoped that thin
accident a ill draw the attention of the parochial authorities
to the subject, and h
t ereby prevent any future mischief.