The Sun.
London, England, 1858-04-26 00:00:00

THE LONDON AND EASTERN BANKING

COBPORATION.

Oa Saturday an important meeting in the matter
of winding up this unfortunate undertaking was held
at the chambers of Vice-Chancellor Wood, before
Mr. Leman, his chief clerk, to proceed to make a
call on all the shareholders in A, being the holders
of shares at the date of t'he winding-up ordf,r, and
also on those included in Class C, being shareholders

who had transferred their shares within three years

prior to the date of such order, the amouut of call
proposed to be made being at the rate of 501. per

share.

Tie financial statement of Mes=rs. Stuart and
Ball, the official managers ebgagei in investigating

and in winding up the bank, set forth
that the liabilities of the corporation on the 6th of
April last amounted 193,5121., which amount was
made up asfollows :—drawing accounts, 2001. ; de-
posit accounts, ex interest, 7,042/. ; bills payab'e,
107,7001.; Delhi Bank, 2,000/.; Uncovenauted Ser-
vice Bank, 570/. ; Indian claims, 13,000/. ; Orien-
tal Bank, 63,000/. ; total, 193.5121. The actual and
eitnu tied assets of the corporation amounted to
102,750/., made up as fellows :—Cavh in hind,
1,100/.J Bank houses in Pall-mall (leasehold), and

King William-street (leasehold), 000/. ; bill 3 re-
ceivable current, 4,500/. ; past-due bills, say
35,250,/. ; sundry debtors, say 10,0001. ; Brauk-
sf,a Lland, arid other asset,,, 50,0001. ; total,

102,750/. Tile official managers believed that the
above estimate of the assets and liabilities was fair

and reasonable, but the assets were insufficient to
meet the liabilities by the sum of 90,7621., or the: e-
about% To meet this deficiency it weal be neees-

saty to make a call on the shareholders of 501. per
share, but inasmuch as on a call being made prior
to the winding-up order—viz., on the 9th April last,
of 15/. per share, and a similar call on the 14th July
last, many of the shareh elders have made payments
in respect of the same, such shareholders will have
credit for the amount so paid. In arriving at
the necessity of a call I:),.ing made of 501. per
_

share, the official managers liad used the following
estimate of the result of the said calls, and which

;hey believed to be fair and reasonab!e :—Uucol-
ecte:l arrears of call of the 9th of April, 1857
rwhic,li was to produce nominally 75,000/.), 40,000/,
of which the avilable amount is 10,000/. ; call the

14th of July, 1857, of which the available amount
is 45,000/. ; a further call of 201. per share, `to pro-
duce nominally 100,000/., of which the estimated
availftble amount would be 60,000/. ;—totsl
115,0001. If a call of 501. per share were made the
official managers believed that, after giving credit
for sums paid on account of the calls of April 9
and July 14, it would not produce more than the
above e timated amount of 115,0001., and that the
margin of 24,238/., which it was estimated that
the call of 50/. per share would produce in excess of
Vie deficiency of 90,7621., was a fair and reasonable
margin ti insure the discharge of the liabilities of
the bank, and to cover cont ngencies arising from
interest, cost=, and charges, and other sources which
could not now be specifically estimated.
Considerable discussion—in which Lie et.-Colonel
Tucker, Colonel Bevan, Colonel Yates, and others
connected with the East India Company's service,
and through their solicitors; took part—ensued on
this proposition for a call on 501. pershare on share-
holders in Class A.
Messrs. Burchell, solicitors to the official mana-
gers, sated that although it had been proposed to
make the e ill on Class C, still, from Vie present un-
certain state of the law in regard to the transfer of
shares, the call on them would not bo pressed at
the present moment, and it was probable it would
not be necessary to call on shareholders in Class C
for payment.
Messrs. Tatham, Upton, and Johnstone, Messrs.
Smith and Nels in, solicitors for sundry share-
holders in this category, applied that the call in
respect of Ciass C should be discharged.
The Clerk ordered a discharge, but refused
payment of coats.
Lieut.-Colonel Tucker said he was a large share-
holder, and that without his consent his Immo
was published in the company's prospectus as a
director, and sent out to India. He regretted to
find that Major-General Uorfield and Gen. Brooke
and others, who had taken an active part in the
affairs of ie bank, and held shares largely, now
sought to obtain exemption from their liability,
while numbers of military officers in the East India
Company's service,
and ladies and civilians con-
nected with India, who bad embarked the hard-
earned savings of years in this bank, were sought, ,
to be held liable, to their loss and ruin. He should
strongly object to their names, and that of Mr. G.
H. Smith and Mr. Stephens and others, being
erased from the list of those to be held liable. It
was a point of honour with him to protect the ab-
sent shareholders. He (Lieut.-Colonel Tucker)
had already contributed 8,000/., and was about to
pay 4,0001. more, although he had been grossly
deceived by the misrepresentations of the managers
of this bank, and he hoped that other directors and
shareholders would be compelled to pay their just
quota. On the ground of moral and commercial
principle he felt it to be his duty to call the atten-
tion of the public and of the Attorney-General to
the gross mismanagement and to the transactions
that had taken place in this bank between four of
its directors--Colonel Waugh, Mr. Stephens, Mr.
G. IH. Smith, and Mr. Griffith—among whom a
very gross breach of trust had been committed, by
which the unfortunate shareholders were saddle.!
with the total loss of money they had invested iu
the London and Eastern Banking Corporation,
together with the 50/. per share they were now
called on to pay. If the official managers, Messrs.
Stuart and Ball, did their duty on behalf of the
shareholders, which he hoped they would do, they
would work this matter out and carry it into a
public court. Were he (Lieut.-Colonel Tucker)
not now a ruined man through the transactions of
the directors of this bank he would himself retain
the first men at the bar for the purpose, but he now
called on the official managers to protect the inte-
rests of the shareholders, believing that they were
well and handsomely paid by the Court of Chan-
cery to do it. During Ihe last few months he had
written to them continually, and had pointed
their attention to several matters that appeared to
have escaped their observation, and he felt con-
vinced that if this affair was properly sifted Mr. G.
H. Smith would be found liable for 19,000/.2 and
the other directors in proportionate amounts, and
justice would be done to all parties. He (Lieut.-
Col. Tucker) was induced to go into the bank on
the representations of Smith that it was a flourish-
ing concern, and that he (Smith) held 400 shares,
which 400 shares, however, he sold in three weeks
after ; that Col. Waugh was a leading man in Lon-
don ; that he had married a lady worth 25,000/.
a-year, had introduced an immense business to the
bank ; that his personal property was very great,
and his real property 70,000/. a-year ; and although
in March, 1857, the affairs of the bank and the de-
linquencies of Stephens were not fully known, there
was quite enough to damn him. It would he hiTc,hyr
desirable to have these gentlemen examined on their
oaths and honour. In consequence of their_ con-
duct be (Col. Tucker) bad to sell hiS house and fur-
niture to meet this call.
After some further discussion the call was made,
and declared payable cn the 3st May.