The Sun.
London, England, 1856-11-11 00:00:00

THE ROYAL BRITISH BANK.

TO THE EDITOR OF THE SUIT.
SlR.—Observing that reference is again made in y0...:r
i columns to the proceedings of the official manager, I feel
that longer 1,i1.nc,-; on my part would be injurious to the
interests I represent ; and, although I would gladly have
abstained front cmi,uient until the decision of the Vice-
Cniinceilor has been pronounced, I find that such an
unfair use is made of the delay that I no longer hesitate
to trouble you.
On the 9th of October the Royal British Bank was
adjudged bankrupt, and the official manager well knew
that the assignees would claim title to all the property
of the bank.
The adjudication was disputed by some of the direc-
tors with the sanction of the Chief Clerk of his Honour
the Vice-Chancellor Kndersley, who does not appear to
have been consulted upon the subject, and I have the
authority of eminent counsel for saying that the Chief
Clerk ought not to base given such sanction. The only
per.2on who would have been benefited by successfully
di6puting the adjudication was the official manager, and
it was at his instance, therefore, that it was opposed.
The public are already acquainted with the able judg-
ment of the two learned commissioners (Mr. Holroyd
and Mr. Sergeant Goulburn), confirming the adjudica-
tion. There has been no appeal from that judgment ;
and, indeed, Mr. Reed, the solicitor of Mr. Alderman
Kennedy and Mr. Valiant, stated publicly at the
choice. of assignees that his clients were anxious to wain-
tam the bankruptcy, as being the most beneficial not
only for the creditors, but also for the shareholders.
Numerous other ahareholders are also in favour of that
course.

At whose instance, then, is the pending litigation, and
who is it that is causing a waste of the assets ot the
bank ? I answer—the official manager alone. The ad-
judication having been confirmed, it was the duty of the
official manager to submit. One word upon the relative
advantage of bankruptcy. Under the winding-up a race
is going on on the part of some of the creditors, and
, already numerous actions have been commenced against
the official manager, and many others will be brought.
Judgments have been obtained against. the official
manager, and are registered. Each judgment creditor
must therefore be paid first, and no title can be made to
the property of the bank until the judgments are satis-
fied. Each judgment creditor may also take in execu-
tion the assets of the bank in the bands of the official
manager, and may attach the debts due to the bank from
its numerous debtors ; .so that under the winding-up the
Creditors who can best afford to wait will be paid first,
while the suffering thousands who have no money to
spend in law will have to wait until the complicated
questions between the shareholders are settled, which
may be somewhere about the year 1860.
It is, therefore, an idle mockery to hold out the pros-
pect of equal or early distribution under the winding-up.
Then, again, under the widding-up the creditors, having
piecemeal seized and exhausted the assets of the estate'
may issue execution against any shareholder, al-
th(igh those who may be selected are the very men mutt
Willing to pay their fair proportion. All these dis4cl
vantages vanish under bankruptcy, which provide, for
the equal distribution of property among all the credi-
tors. So that, the assets being speedily realised and
distributed, it would only remain for a receiver to ba
appointed by the Court ot Chancery, as required by the
Act of Parliament, to collect and enforce contribution
from the shareholders, whose rights might be settled
among themselves, and who would be entitled to the
protection of the Court against the proceedings of indi-
vidual crtditors so long as they were willing to des I
justly. Then, again, in bankrukt)), the expense would
be considerably less than under the winding up, as it is
well known that in the single item of the remuneratiou
to sue official manager, as compared with that of the
official assignee, there would be a saving of several thou-
sand pounds under bankruptcy. It is a fallacy to sup.
pose that there would be a double expense.
The committee (:f depositors have from the commence-
ment been unanimous in favour of the bankruptcy,
being convinced that it is for the mutual advantage of
creditors and shareholders. I may conclude by repeat-
ing the words of the learned commissioner, Mr. Sergeant
Goulburn, in delivering judgment, who said—" I would
express my earnest wise that all parties would give their
best attention to all that has fallen from my learned
brother, because I am persuaded that if they da so
calmiy and dispassiona•ely they can but arrive at one
conclusion—that is, th t tie present course of proceed-
ings is one in all resFects most beneficial to toe creditors,
and that it ought to Le sustained for the benefit of all
parties."

Trusting that the sufferings of many destitute and im-
poverished depositors in the British Bank may be my
apology for intruding at this length on your valuable
space,—l have the honour to be, Sir, your obedient
servant, JAMES WYLD, Chairman of the
Committee of Depositors.
Charing-cross East, Nov. 10.