The Sun.
London, England, 1856-09-22 00:00:00

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tack blame in this unfortunate affair where is ' ankl,
due. (Hear.) We have been fixing it upon the tore
and attacking them pell melt ; but, I will ask, are not
the auditors equally to blame in thia.matter l (Loud
cries of "Hear, hear.") We have continually seen the
names of Thomas Chandler and Thomas Page attached
to our balance-sheet, as I vouching for its correctness,
when those pasties, if they had audited the accounts- at
all, must have known tb .t suet! was not Vie fact. (Hear.)
Mr. GILLOTT (a director)—As one of yourselvee, end
a fellow-sufferer in common with yourselves, I am de-
sirous to offer a few observeiion,.. (Hisee.s, arid cri•—, of
"Hear Mr. Gillett.") Ale fellew ehereh triers will re-
member that I called their attention to what I consider ed
to be improper proceedings in reference to the [perigee-
went of this concern in the latter end of 1852 and 1853,
and if the shareholders had gone with rue then they would
not have been in their pre-eut position. (Hear.) I attri-
bute that decision to the subtlety of Cameron, who got
up a charge against me that I was running about all ove
the metropolis doing. what I could to damage the bank,
and that I was one of its greatest enemies. The state-
ments of the auditors were held up in my face in answer
to what were called my calumnies. I confess, at that
time, and I have ever since, had an utter aversion to
those gentlemen, Messrs. Chandler and Pags, the audi-
tors, because I looked upon them as the creatures of the
bank. (Hear.) Mr. Chandler is a surgeon, and although
those gentlemen may be well versed iu Greek and Latin,
and be conversant with our bodily ailments, I deny
that they are the proper persons to be entrusted with
figures. You will remember that I called your attention
to this matter in a small pamphlet I published in 1853.
I asked you at a meeting which took place to take the
opinion of some eminent counsel as to whether your
charter was being complied with, but my proposal was
rejected, and I was met by the cunning subtlety of
Cameron, who framed the first paragraph in the directors'
report for the next half-year by announcing therein that
the directors were prepared to pay a dividend for the
last half-year of six per cent, upon the paid up capital.
(Hear, hear.) This had the desired effect, which was to
turn you (the shareholder) against me, although it was
believed by many that the opinions I had expressed had
done a great deal of good. Thus matters went on, and
I was frustrated in doing that which I believed honestly
would be of service to the concern, and now we all
know what has been the unfortunate result. With
regard to the call counsel has advised us that we were
competent to make it. That counsel is a counsel of
eminence connected with the city of London, and he
said, why not make another call, which you have power
to do, and whether you dissolve or not, do a something
to alleviate the state of misery and su-pence into which
large numbers have been plunged by this lamentable
event. These circumstances and this advice induced me
to acquiesce in the call, as a pro forma and a preliminary
measure, because we know that we cannot do anything•
until the petitions which are lying before the Chancellor
are heard. Ido not object to the Winding-up Act being•
brought into requisition with regard to the affairs of the
bank, but I do hope that, it our affairs are to be wound
up, whoever the official manager may be, he will have a
feeling for the proprietors as wil as the depositors.
I am told that the first charge under the Winding-up
Act, which is an enormous one, may be avoided if the
official manager chooses. It may be done in this way,
as I am informed : We have a right to presume that our

looks, with regard to the deposits, are c irrect, and if
each depositor is called upon t•i state the amount of his
deposit., acd t at statement is compared with our books
and found sati:f ‘cti.ry, much expense will be saved.
Bat if the offictal manager calls upon each depositor
to come into the master's court to prove his or her de-
posit, then the cost to the proprietors will be from 8,000
to 10,000 guineas, because two guineas must be paid on.
pro.of iu each case. I again saw, lam willing limns-.
diately to pay soy further call of 501. on my shares to al-
leviate at once the sufferings of the depositors. I should •
add, that though elected at the last half-yearly meeting..
neither I nor the two other directors who were elected
with use took our seats till the 11th of August.
Mr. STAPLETON (leptity-goTernor) said the directors.
had not paid up their calls, and they would not tidy ise
the, shareholders to pay up until after the Vice-Chraa-
had decided on General Aitcheson's petition .311
Wednesday next. He was elected in February last, end
since then be had been mainly instrumental in driving
Mr. Cameron from the management, and Mr. Brolvn
fro the directory. If the board had fallen in wi th
his +iews, and made a call of 25/. when he wished
them, this catastrophe might have been averted. lie
could name many joint stock banks that were in a ma's()
state than this bank in their infancy.
Mr. GODDARD proposed the following resolution :--
"That the past anu present directors of this bank (except ,-
ing always the three gentlemen who became directors OM
the let of August last), by their systematic misapplica-
tion:of the funds of the institution entrusted to their
keeping, and by their uniform and culpable misrepre-
sentation and concealment of the actual condition of the
bank in the half-yearly balance-sheets and statements
made to the shareholders, as also the discreditable pro-
ceeding of issuing new shares long after the bank bad
beccnne hopelessly insolvent, thus bringing dishonour
and ruin upon many innocent persons, which would
have been entirely averted by better management
or an earlier winding-up, have shown themselves utterly
uafit for the post they occupied, and unworthy of the
confidence of this or any other proprietary."
Toe resolution having been seconded, tho mover im
mediately put it to the meeting, when many hands were
held up in its favour, and the mover dec ared it carried
by all, on which
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mere'tban one-fifth fiatl-Voidd for it, the others felting'
it was a lie, and that the directors were honest men.

`. ~.~

Mr. OwEN, a former director, said the unfortunate po-
sition of the bank was owing to none of the first directors
knowing anything about banking affairs, and the con-
sequence was that they were at .the mercy of Mr. Cr -
moron, and they passed resolutions ignorant of their im-
port. He did not know that any directors, with the ex-
ception of one, had borrowed money of the bank. Mr.
Cameron always told them that paper for discountmuet
not come before the directors or they would not get respect-
s ble customers, but that that department must be left en-
tirely to him (Mr. Cameron), the manager. After Mr.
Alderman Kennedy joined the bank, and he got posses-
pion of the " private book," he set to work to investigate
the affairs.of the bank for the benefit of all. (Great con-
fusion, in which the hon. gentleman was charged with
beinglas bad as a receiver of stolen property, in the
nsidsti of which the hon. gentleman at down.)
- Al 1 erman-KENNEDY said he had been twice men-
tione in the course of the meeting, and the effect of the
obser ations was why he did not, before the stoppage,
anno nee the difficulties of the bank. His answer was
that Ike was in the dark as to the state of the bank at
the time when it stopped payment. When he joined
the bank, 13 . months ago, he made alt the
enquiries it was possible for him to do,
and if he bad been deceived be was not to blame, lie
had done his best up to the last, and all he had to say
was that up to the latest moment he bad done his
utmost to alleviate the sufferings of the depositors. He
was extrerne;y sorry at the- unfortunate state of the
affairi ; he was a sufferer, aad a heavy one, and
entreated the meeting not to cast blame on hies.
When he joined the Bank he persuaded his rela-
tions to follow his example, as he was led to believe it
was atsafe investment.

Mr. GODDARD called upon the chairman to put his
rertnl ution.
Th,e CHAIRMAN declined to do so.
On the motion of General ArroEirsorr, seconded by
Mr. STAPLETON, the following resolution was passed :
" That it appears to this meeting, and it is hereby dc•
Glared, that the losses of the Royal British Bank
have exceeded all the surplus and reserved capital,
and one-fourth part of the now paid up capital of the cor-
poration of the said bank." Mr. Coleman having first
explained that such a resolution was necessary te faci-
litate the winding-up of the undertaking.
The CHAIRMAN said that the resolution having been
carried, it only now remained for him to dissolve the
cmnpany, which he accordingly did, except for the
purpose of finally closing and winding up of the affairs
of the Company therein mentioned.
The proceedings terminated shortly befora five o'clock.

(From. the Times' City Article.)

The meeting of the Royal British Bank on Saturday
excited intense interest and was protracted to a late hour.
The proceedings were such as might have been antici-
pated, and the shareholders, smarting under the rubs
discloses!, resorted to indiscriminate manifestations of
anger, which, instead of Fromoting, obstructed the at-
tempt to obtain specific details that would place the chief
delingeents in their proper position before the world.
It transpired, however, on the testimony of Mr. Cole-
man, the accountant, that the account of Mr. Humphrey
Brown, the member for Tewkesbury, and until recently
a director of the bank, exhibits a debt of 70,9081. ; that
Mr. John MacGregor, the member for Glasgow, and the,
founder of the concern, figures for the more moderate
sum of 7,3621. ; that Mr. Cameron, the late manager,
has obtained 33,0001., against which there are no secu-
rities except such as•are now found to have been pre-
viously charged and encumbered, and the utmost worth
of which is estimated at 3,0001. ; that Mr. Mullins,
the late solicitor, took 7,000/. ; and that one of
the auditors owes 2,0001. It v.as also stated that
Mr. John Gwynne, who was formerly a director, re-
tired in 1851, leaving a debt of 13,640/. ; and that a
loss of 13,4861. was sustained by Mr. Oliver, of
Liverpool. The total of the loss from persons directly
connected with the administration of the bank ap.
pearl to have been 121,0001. ; and it is to the
acts of these persons, and not to the imprudent advarcea
on the Welsh coal and iron works, that the fete of the
sh ireboldera is main), to be attributed. The Wt sh
works have involved a sum of 106,4531., but they are
even now considered to be unquestionably worth 40,0001.,
and there is a possibility that they may prove of much
greater value. According to the balance-sheet the liabi-
lities of the bank are 539,1311., while the assets are
estimated (assuming the Welsh property to fetch
40,0001.) at 328,6441. The loss to be male un is there.
fore 210,4871. It seems that out of the sum appropriated
by the late manager 8,7521. was connected with deal-
ings in the shares of the company, although the charter
among its other deceptive provisoes contained a prohi-
bition against transactions of that nature. It was fur-
ther stated'that the securities furnished by Mr. Cameron
comprised 200 shares of the bank, and as there is no
prospect of recovering anything from him the pr oprietor
wth stiffer proportionably by the non-payment of the
10,000/. which the call of 501. on that number should
bow bring •in. On the whole, the prospects of all parties
have been plies,' by the results of the meeting in a more
deplorable light than they bad previously, ocoupieul, and
there is relson still to fear that neither shareholders nor
depositors have yet recognised to the full extent the
manner in which their calamities are likely to be agg' a
vated by the costs to be drained from them by the
Court of Chancery.