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

[PRICE 4D. STAMPED 5D-

which had been taken from Mr. Cameron as part and
parcel of the securities by which the advances to him
were covered.
Mr. MITCHELL —One of the precautions of our charter
was that the bank was not to traffic ,n its own shares,
but the result of this single operation of Mr. Cameron's
had been that the 200 shares which stand in his name
have been transferred to the board, and that instead of
See being shares upon which we should have had the
right to make calls, to assist the other shareholders, the
amount of those shares will fall upon the great body who
are already threatened with ruin. It is as plain as pos-
sible that from the very first years of the existence of the
hank the accounts which had been presented to us had
been constantly falsified and tampered with. We had
no right to infer from the reports of the directors rub-
mitteu to the shareholders that among the assets of the
company there were included advances to Mr. M'Gre
gor, Mr. H. Brown, or Mr. Oliver, and others, amount-
ing to a total of more than 120,0001., which, it appears,
were brought forward year after year as convertible secu-
rities. The failure of this bank at any time would have
been a serious thing, but it would have been infinitely
less serious if those gentlemen had honestly come forward
and said the bank has failed as a commercial speculation
and proposed to wind up its affairs. I must be allowed
to say that I cannot concur in that exculpation which
the directors seem desirous of making for themselves—
an exculpation that we, the shareholders, can know
nothing about—thatit waeMr.Certeron or some one else
who did it all. In the first place, we pay the directors
la sum of 2,0001. per annum, and as the members of the
board do not average more than seven or eight, that is
about 3001. per annum for each—(hear, hear)—and that
alone, in my opinion, entitled us to expect that they
were at least giving us faithful service in return for the
money. On the- other hand, I cannot help saying that
I think a fearful responsibility and the ruin and curses
of many persons will lie at the door of Alderman Ken-
nedy. (Hisses and other marks of disapprobation.) It
is not my desire to speak in terms of harshness of those
who are placed in the painful position which they occupy,
but less than this I cannot say—that I for one should
never have been a victim in this business, but that I saw
the name of that gentleman among the list of the direc-
tors. I made some inquiry wit h respect to his position,
and I was told that he was a man of character and capit il,
and I had no right, therefore, to suppose that any such
gentleman would go into a direction which, by conniv-
ance or indolence, had allowed a state of affairs to exist
such as has just been disclosed. (Hear, hear.) If you
take the accounts only as they were presented to us last
Midsummer, they were fallacious to the extent of over
370,0001. We are now told that there exists a defi
ciency of 227,0001., but no credit is taken on that
account for the paid up capital of 150.000/. Taking
these two sums together, there was a deficiency of not
less than 370,0001., so that for every year since we have
been in operation we have been losing 50,0001., and yet,
in the face of this these gentlemen have 'come forward
every year to congratulate us upon our prosperity.
(Shame.) I cannot bring myself to believe that for so
many years the directors, who now seek to exculpate
themselves, could have been ignorant of the existing
state of things. (Hear, hear.) There sits a gentleman
—Mr. Stapleton—l believe that he went into the direc-
tiers anxiously desirous to make things right if he could,
and I think if he had had the courage so say boldly that
things were not altogether right, it would have been
very much better for toe interests of all parties. (Cheers.)
I apprehend that all of you have received a circular simi-
lar to that which I have received. We are there coolly
asked [to
.pay up [immediately a call of 501. per share.
Now this is a subject of most serious gravity. I know
not to what to attribute such culpable blundering on
the part of the directors as absolutely to call upon us
outright to pay up immediately this call. Do they sup-
pose that every person walks about with two or three
thousand pounds in his pockets, which one would pay
out as he does his omnibus fare ? I think the directors
might have much better said that they regretted the po-
sition of this bank, and called up the remaining capital
by '„easy instalments. The consequence .of the present
precipitate step will be, that many of the shareholders,
with ruin staring them in the face, will at once declare
themselves insolvent, and evade the payment of their
share of the calls. I should, therefore, advise the pass-
ing of some such resolution as this, that the proprietors
decline to pay any calls into the hands of the existing
baard—(cheers)—not considering them safe custodians
of our money. " (Loud and repeated cheering.) I should'
hare liked the resolution to go on to say that the pro-
prietors pledged themselves as soon as a recognised and
suitable agency has been provided, to use every possible
exertion to meet the call upon their shares, with a view
to the liquidation of the righteous claims of the credi-
tors. (Loud cheering.) Ido not want it to go forth to
the world that we, although we have been unfortunate,
wish to make that a cloak for our dishonesty. I should
like, if that resolution were submitted, that the latter
portion of it should be embodied._ 5... ;j,Lliiink eeitsoa -
riedy it might be made a means of safety for us, and of
course for the depositors. It is above all things desir-
able that we should appear t 3 act in something like
unison and forbearance towards one another. It is
obvious that the " winding up" cannot be an affair of
days or weeks, but must be a work of years—perhaps
many years. I think that many of our depositors would
prefer the nimb'o ninepence to the slower shilling, and
I think that some system might be devised by which
an arrangement of this sort could be carried out. The
effect of something like a compromise would be to ease
us in some measure of our liabilities, and confer a benefit
up in the depositors and creditors of the beak. At all
events, it is quite clear that before we separate to day
we must come to a distinct resolution that we do not
intend to pay up this call to the present beard of direc-
tors. (Cheers.)
General AITCHESON—I am determined to have a most
searching investigation into the state of affairs of the
bank—(cheers)—and pursue it to the utmost, so that
the guilt—fir guilt there is—shall rest where it is due.
(Cheers ) If you believe me sincere in making this
statement, I would ask you to consider, as rational
gentlemen should do, how we are to proceed to effect
this object. It is clear, from the statement of the ac-
countant, that all the delinquencies are of old standing,
and that, to the credit of your present chairman, no
great liabilities have been incurred under his manage-
ment. Gentlemen, we can only arrive at the solution of
our difficulty by the interposition of the law. You may
attempt to stave off the time for resorting to the lan',
but in the end you must, go to it. You most ga where
equity will conibino with law and protect our interests.
Tne directors can only deal with the registry of ehare-
ho'ders as it now exists, and the Court of Chancery alone
has the power to deal with matters which took place at
the time of those delinquencies, and if it could be pos-
sible to bring against those parties a charge of a criminal
character, I would be willing to join with you in taking
the necessary steps for so doing. (Cheers.) You will
find that the only way in which you can bring these
parties under the power of the law is by the Court of
Chancery. (Hear, hear.) You may bring an actien, or
a thousand actions, against shareholders, but what is to
pay those actions ? Why, your own funds. If this be
the case, the less expense you incur in the shape of actions
the better for yourselves. (Hear, hear ) No matter
what the charter of this or any other bank may state,
you will find by the Joint-Stock Companies Winding-up
Act that all persons who have been shareholders or
directors within a period of three years previous to the
stoppage of the bank are liable as contributories,. Tne
only difference in favour of persons who had ceased to
be sl areholders or directors for souse shorter term, is this
—that if they can prove that large debts had been con-
tracted after they quitted the bank, for those debts so
incurred they are not responsible. (Hear, hear.) But in
the present case it appears from the statement of the
chairman, that for the last two years no new debts have
been contrasted, that all the great liabilities had been
contracted previously. (Hear, hear.) All this must
show you to the Court of Chancery you must go, and
that it would he ruinous to the depositors themselves to
institute actions. (Heer, hear.) It appears to !me that
the most adtisable course would be to adjourn this meet-
ing for a week—say, to this day week. (Hear, hear.)
It has been determined to IA( you to pass a resolution
declaring yourselves dissolved ; but I think you should
not pass that resolution until you have considered your
accounts sufficiently to enable you to calmly and deli-
berately decide whether you, should bring the concern
under the operations of the Winding-up Act. I trust,
gentlemen, that you will agree with me in thinking that
outw
othe f
yoursug gesti
attention,os whichand a
have
the one best calculated to benefit all parties. (Hear.)
th e course thrown
I bare are
proposoerdthiys
A SHAREHOLDER--Oh, we had better come to some
conclusion to- jay. (Hear, hear, and cheers.)
A SHAREHOLDER—I wish to know, in the ewe of a
shareholder who is also a depositor, will you take his
cheque upon yourselves in liquidation of his liability
upon his shares I
The CHAIRMAN—Mr. Coleman thinks that a share-
holder so situated will be entitled to the set-off to the
amount of his deposit.

The'PXOPRIETOR—Now I wish to ask another ques-
tion. You (the directors) have made another call. Do
you think that we (the proprietors) shall be justified in
placing any more money in your hands f (Laughter
and cheers ) I know you are not all of you the original
directors who started this hank. But although' you are
not the identical directors you are imbued with the same
blood, the same virus runs in your veins—(laughter)
and that being the case, I a.,k you do you believe that
we, as sensible men, can again venture to trust you with
our affairs ? (L'tuhter, and hear, hear.)
The CHAIRMAN—WeII, I am afraid that if you put that
question to this meeting the decis;on will be in the nt—
ptive. (rear, hear, and cheers.)
Mr. PORTER—I wish to ask the directors under what
plwer they have made the call upon the proprietors
within the last few dap: ?
The CHAIRMAN—We have done so under the advice of
counsel.

Mr. PORTER—Did you intend it really as a call, or
have you mere!), rna,de the call pro forma ?
The CHAJtotArr—Well we made the call pro forma.
The Chancellwr will decide the question on WeJneNdoy
Lexf.

A. PROPRIETOR—WiII you inform the meeting whether
any shareholder has paid upon that call I (S out of
derision.)
Tile CHAIRMAN—None. (Cries of "I should think not,"
and "Hear, hear.")
Mr. PORTER--I am most desirous that we should at•