The Sun.
London, England, 1856-12-17 00:00:00

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COMMERCIAL BANK OF LONDON.

Yesterday a special general meeting of the proprietors
of this bank was held at their offices in Lethbury, to elect
a director in the room of Mr. Edward Oxenford, resigned.
Mr. M. Hunter presided, and explained the cause of
Mr. Oxenford's resignation to be that his engagements
abroad on his own private business prevented his attend•
ing to the duties of the direction. Mr. Herbert Taylor,
the son of the former chairman of the bank, being duly
qualified, offered himself to fill the vacancy.
Mr. JOSEPH UNDERWOOD moved and Mr. H. BARNE-
WALL seconded the resolution that Mr. Taylor be elected.
A PROPRIETOR remarked that Mr. Oxenford had
combined the offiee of trustee with that of director, and
inquired whether Mr. Taylor would do so likewise ?
The CHAIRMAN replied in the negative. It was not
usual for a director to be appointed a trustee until he had
been tried and found fitted for the office ; and in answer
to other questions from the same proprietor, he added
that Mr. Oxenford had not attended the board meetings
for the last twelve months, but part of the time had
drawn his salary, he (the chairman) doing the duty for
him, so that the bank might not suffer in any way. By
the deed of settlement they were required to keep up the
minimum number of directors at 16, unless a resolution
were passed by a general meeting of the shareholders,
confirmed by two subsequent meetings, to reduce it.
The resolution appointing Mr. Taylor to fill the vacancy
was then put and carried unanimously.
The CHAIRMAN said that the object for which the pro-
prietors had been specially called together being now
fulfilled, his duty under ordinary circumstances would
be to declare the meeting at an end, but he was informed
that some gentlemen present wished to put some ques-
tions to the directors as to the state of the bank, in con.
sequence of certain rumours which had been promul-
gated, and if so he should be happy to answer them,
and afford every explanation that might be required.
(Hear.)
Mr. 0. E. TEAKLE had addressed a letter to the mana-
ger on the previous day, intimating his intention, in
consequence of the rumours alluded to, to put various
searching questions to the board in reference to the affairs
of the bank. He bad put the questions he intended to
ask upon paper, and would proceed to read them seria-
tim,. His first question was : "It has been reported
that the bank has sustained considerable loss by the
failure of the firm of Fox and Henderson. Is that cor-
rect ?"
The CHAIRMAN—We have lost nothing by the failure
of Fox and Henderson ; nor have for a long period had
any acceptances or bills of any kind of theirs in the
house. (Hear, hear.) We are sorry for the misfortunes

of Fox and Henderson, but it did so happen that we
were warned beforehand not to take their paper, and
after that were not likely to do so. What I say can be
confirmed, for the balance-sheet of Fox and Henderson's
estate is now in the hands of an eminent man in the
City of London, and can be seen. (Hear, hear.)

Mr. TEAKLE —Has the bank within the last six montbs
sustained any special loss ?
The CHAIRMAN—No, nor for many months previous.
(Hear, hear.)
Mr. TEAKLE —I-have heard that you have obtained a
loan of 61,0001. from Jones Lloyd. Is that true. ("Oh,
oh," and laughter.)
The CHAIRMAN—If the question is asked seriously, I
should be wanting in respect to the hon. proprietor and
to the meeting if I did not answer it. I doubt whether
Jones Lloyd would have lent us the money if we had
asked them ; but we never did, and never had occasion
to do so. (Cheers.)
Mr. TEAKLE—Have any advances been made by the
bank upon Westminster bonds, or share, or stock, that
is not readily convertible.
The CHAffilifAN---Upon the whole, I can safely answer
that question in the negative. It is true that we have
some Westminster bonds in the bank, which were depo-
sited with us as collateral security ; but we do not value
them at the worth of the paper upon which they are
written, and no credit is taken for them in our general
statement of assets. (Cheers.)
Mr. TEAKLE —Are any of the directors or officers
debtors to the bank ?

The CHAnutAN—Well, I believe there is one unfor-
tunate clerk who owes us 501. He was hard up, and I
was induced to lend him the money. ("Hear, hear,"
and a la:gh.)

,
Mr. TEAKLE—After the answers yeu have given, I
need scarcely ask the next question I have put down—
whether the securities upon which the bank has made
advances are good ?
The CRAlRMAN—Certainly they are.
Mr. TEAKLE—Who decides upon the applications for
advances, and the sufficiency of the securities offered ?
The CIIAIIMAN—The ordinary mode of proceeding is
for two directors to attend at the bank everyday for that
purpose, one of them being a trustee and the other not.
The trustee is expected to attend the greater part of the
day, that is from eleven in ale morning till about four in
the afternoon, and he generally does so. The other, that
is the ordinary director, comes in between 12 and 2, and
consults with the trustee as to all bills and securities
that may have been offered, and upon their decision
they are accepted or received. If it should happen,
which can scarcely ever be the case, that either of those
two gentlemen are in any way interested in the securi-
ties or the matter brought before them, then it is usual
to call in some other director to see that all is right. I
should state that, in the ordinary course, every transac-
tion goes to the manager in the first instance.
Mr. TB/LIME—Is any member of the board security for
any other person connected with or employed by the
bank ?

The CHAIRMAN—No. As a rule the directors are not
allowed to be security. Some time ago, when I introduced
a person in a subordinate position, I was not permitted
to be his security. In reply to the other questions, and in
reference to a circular that had been addressed to the
shareholders from certain proprietors of Jersey, the
chairman added, that if it was the wish of the majority
i,f the shareholders to reduce the minimum number of
directors, the board would not oppose it ; and with re-
gard to Sir Joseph Paxton, who was alluded to in the
circular, he was one of the moat valuable members of
the board, and had rendered them most efficient assist-
ance in promoting the interests of the bank. During
the year ending June, 11856, the amount paid to the di•
rectors in attendance, fees, and all other allowances
was 2,4601.
Mr. TEAKLE suggested that it might be desirable to
specify in che:annual balance-sheet the nature an well as
the amount of the securities held by the bank. (No, no.)
Ho also thought it would be well to hold their ordinary
meetings, half-yearly instead of annually.

Toe CHAIRMAN did not see any particular advantage
that would arise from doing so, but if a majority of the
shareholders entertained a strong feeling on the subject
the board would not interpose any difficulty. At the
same time any shareholder might, if he desired, ascer-
tain at the office what was the amount and nature of the
securities held by the bank at any period. With regard
to the ordinary meetings the directors could have no
of jection to !beet the proprietors balf.yearly, but as it
was provided by the deed of settlement that the meet-
ings should be held annually, it would be necessary to
pass a resolution at a special general meeting, to be
afterwards confirmed, before the alteration could be
effected. It should also be remembered that the ac-
counts were made up annually.
Mr. TEA LE—What is the aggregate amount of shares
held by the directors ?

The'CLISIRMAN did not know what effect his answers
might have on the minds of the shareholders ; but he
was prepared at once to say that the present directors
held together about one-sixth of the whole number of
shares, and the four largest shareholders, himself being
one, were present. He might add that besides his shares
he always kept a very large balance at the bank. (Hear.)
Mr. TEAKLE declared himself perfectly satisfied with
the explanation he had elicited, and only wished further
to ask generally whether the monetary affairs of the bank
were in a perfectly sound state, and whether, the books
and accounts were open to the inspection of any proprie-
tor who chose to examine them ?
The CLEAMMAN—Decidedly so. Ido not believe that
even the Bank of England is in a sounder state than we
are at this moment. (Cheers.)
Mr. MANNING remembered that amongst the rumours
to the prejudice of the bank which had been circulated it
hacU been said at the West-end that the directors, or
rather a gentleman who had gone out of the direction,
had done as some of the directors of tke Royal British
Bank had done, viz., put his hand into the till. (" Oh,
oh'") Now it would, he thought, do great good to the
establishment if it were to go forth to the world with
the very satisfactory statements which had just been
made, that not only bad the directors not them,elves had
any advance from the bank, but that in no case were
the funds in the hands of the trustees ever used for any
other than those which wero strictly the purpost's of the
trust. (Hear.) It was with this view that he begged to
ask whether Mr. Oxenford was indebted to the bank ;
and if so, to what extent, and upon what security the
Money had been lent'? (Hear, hear.)
The CHAIRMAN—Mr. Oxenford's debt to the bank
about 3,0001., but it is amply secured.
:hNaorelcioswill
be isa
as I can imagine, Can possibly arise from that loss,
rasef.ar
.11fIhre. MANNING—WhatR3iANTo so ism ethe x securitytent his
see7urotihlt.y,
security, but we have ample security
_beyond' , which I
tevery
sharesreason s toan
additionalbelieve to b
annodwsehvaelrl,
notwe
allow them to be transferred until
hhaovlde
generallygioarrdadtvoantheees.dirnecet7csver reciuireeddesbutchispaid
accom-
modation, and that Was also the
gentlemen
occasionnitt
lilernreen around him. There were some amongst
position
most hoa fd then
them, however, who being connected with trade, occa-
sionally brought ordinary
advanced to
bills to be discounted.
The whole amount
than to directors was not more
20,0001., and
the security taken/was even greater
than would be required from any private customer. The
clause in the deed of settlement prohibiting advances
upon the security
formed to.
Mr. CLAY—
of the bank shares was strictly con-
for advances, as
as to necessitate p application to the Bank of England
Have
an y
our operations been so conducted
h has been rumoured ? If not, I should
say you conduct the affairs of the bank properly.
, The CHAIRMAN—I am very glad the question has
been put. It is true that amongst the rumours that
were so industriously circulated was one that the Bank
of England directors, on a particular occasion, sat two
hours in consultation upon our affairs. It certainly was
very kind of them if they did so, but we never asked them
nor do we know anything about it. You can, however,
if you please, go to the Bank of England, and ascer-
tain that there is not one word of truth in the statement.
(Hear, hear.) We have never gone to the Bank of Eng-
land or to anybody else for assistance. (Cheers.) Our
business is conducted upon sound banking principles.
Of course the money that comes into our hands is not
always lying idle in the till. We employ it on profit on