The Sun.
London, England, 1856-12-24 00:00:00

THE ROYAL BRITISH BANK

Meetings have just been hell on this matter to settle the
list of contributories or shareholders liable to calls, before
Mr. Pugh, one of the chief clerks of Vice-Chancellor Kin-
deriley. Two lists were brought in by Mr. Harding, the
official manager, one consisting of those shareholders who
had taken shares under the original charter, and the other
of those who had taken shares under the new or supple-
mental charter. Considerable discussion and confusion
took place on the question of fraud alleged to have been
committed by the company on the shareholders, in the
course of which the chief clerk intimated that in his opi-
nion the question of fraud would not avail the shareholders
if fully proved, and ho should place them on the list not-
withstanding, with, of course, liberty to appoal.
Mr. Field, who represented shareholders who came in
under tho supplemental charter, made an application that
certain evidence and omissions might go together to esta-
blish what he considered to be the general frauds of the
company, contending that his clients were not only not
contributories under the new charter, but that they were
.entitled to recover back from the company the amounts
they had paid on their new shares.

The Chief Clerk, however, declined to entertain the ap-
plication.
The first case of importance, which will probably rule
many others of a similar description, was that of Mr.
-Winer, of Islington, who was sought to be made liable
under List A. by the transfer of five shares.
Mr. H. Harris appeared as solicitor for Mr. Ulmer, and
stated that, although the chief clerk had laid it down that
no fraud would go in ease of the shareholders, ho should,
nevertheless, be under the necessity of entering Into this
care fully. The official manager stated that he should
have no difficulty in placing Mr. Ulmer on the list as
liable, and then put in the transfer and the deed, the
handwriting of each of which was admitted.
Mr. Gatherer, the company's registrar of shares, was then
examined. He deposed that he know Mr. Loran de Wolfe
Cockrane, who was the transferer of the five shares to Mr.
Ulmer on 31st March, 1856. He got the shares from Mr.
Cameron, the manager of the bank. The bank mu t, there-
fore, have held them. He did not know whether Mr. Cock-
rane was a debtor to the bank or not, but boing referred to
the directors' "green ledger," he observed that at the time
in question Mr. Cockrane was debtor for several thousand
pounds. This directors' "green ledger" was kept under
lock and key by Mr. Munro, private secretary to Mr.
Cameron. Witness had never previously seen it. Referring
to the close of the account he found that at the time thee
bank stopped payment Mr. Harris was a debtor for 10,0001,
He did not think the bank held these shares as security,
because they formed so small a relative value to the amount
Cockrane owed the bank, but he could not say whether
they were held by the bank or not. Mr. Cockrane was
formerly a director of the bank and took 10 shares in 1851
from Mr. Cameron, the manager, and a second 10 shares to
qualify himself as a director. The transactions entered in
the " green ledger' were always kept secret from the clerks.
The consideration for the shares was 2501., and they were
sold at par. He did not know the brokers. He found on
reference to the " green ledger" that the sum of 2501. was
received by the bank and placed to Mr. Cockrane's credit on
the Ist April, 1856. It was the same sum that formed the
consideration for the shares, but he could not say whether
it was the identical sum or not. Mr. Cockrane had also
sold 10 shares to Mr. Butt, who had become a director
above two months before the bank stopped, and five shares
to Mr. Samuel Kerr. He did not know in what books of
the bank the accounts rendered to the proprietors were
entered, but he found, on reference to the book in which
most of the names of the proprietors were entered, it was
stated to be resolved at the last year's meeting, in Aug.,
1856, Mr. Esdaile in the chair, that " the shareholders had
unbounded confidence in the honour and integrity of the
directors." (Loud laughter.) He knew, however, that
the meeting in question was not unanimous, for several
shareholders grumbled, and had not confidence in the
directors; but referring to the minute-book, he found that
the meeting was entered as " unanimous." Mr. Crawford,
the accountant, who had succeeded Mr. Cameron as teena-
ger, could give the beet information as to the accounts.