The Sun.
London, England, 1858-02-23 00:00:00

capital was not paid up when the charter was obtained,
and his impression that the bank did not make, in a
commercial phrase, sufficient provision for bad debts.
The affidavit Pet out the different debts that had
been the subject of investigation during 'the trial,
and gave a detailed account of the transactions
in reference to them, it also referred to the additional
Icharter and the issue of new shares in consequence.

It stated also the appointment of various committees of
the board before whom, almost every day, questions
arose relative to past-due bills and loans ; it further
stated the principle on which the balance-sheets were
made up, and the system of banking carried on. The

directors consented to the issue of new shares, in the
hope that by doing so they would increase the capital
and prevent the run on the shareholders. The applica-
tion for issuing new shares did not arise from the want
of money, but to strengthen the bank and allow them to
recover their lost po',ition. He had no idea when the
application was made for a new charter. He had
no knowledge of the 71st clause of the charter, making
it necessary that the bank should stop when one-fourth
of the capital was lost. He denied that he had been
actuated by any sinister object, and his whole time and
attention had been devoted to furthering the success of
the bank.

Mr. Peter Brow❑ was called, and proved what took
place at a meeting of directors and shareholders, held on
the Ist Feb., 1856. Re took a report of the proceedings
at the request of the directors, and he now produced an
accurate abridged report of the meeting.
It was handed in and read by the associate. The pur-
port cf it was that the direc►tors of the bank represented

the bank a 3 being in a prosperous condition.
Mr. Gatherer was recalled. He proved the certificate
of application to the Board of Trade for the supplemental
charter, on 15th January, 1855. The certificate stated
that 100,000/. worth of nsw shares, of 1001. each, bad
been subscribed for ; that 50,000/ had been paid up ;
and that the subscribers had executed the necessary
deed. Witness then detailed the circumstances in con-
nection with the issuing of circular advertisements, &c.,
and the application for shares in consequence. He
stated that the shares of the second issue were transferred

to the third issue.
Mr. Crawford was then examined at great length rela-
tive to the instructions he received from Cameron, to
take necessary steps for the purchase of shares that were
known to be going into the market, to prevent
which a broker was employed to purchase them (at the
average price of 501. par) in the name of Henry Empson,
who.,e account at the British Bank was debited with the
amount. As dividends were due on these shares they
were placed to the profit of the company. There were
many transactions of this soot, amounting in the aggre-
gate to 9,0001. At the end of 1855, &Lipson's private
account stood at 6,403/. 101. That amount was carried
into the balance sheet as part of the assets of the bank.
Mr. Scott (broker) proved making the purchase by
order of the Bank, for Mr. Henry Empson.
Mr. Crawford, in answer to Sir F. Kelly.—On the
face of it Empson's account would show' him to be the
bona fide purchaser and holler of the shares. Empson
applied to the board for an indemnity, but Mr. Staple-
ton refused anything of the sort. This was just before
the failure of the bank.
Evidence was then given to the purchase of the shares
by the bank in the name of Empson.
The next witness examined was Mr. Thomas Dakin—
He stated thatho joined the directory after the represon-
tations of Mr. Alderman Kennedy, an old friend of his,
who said the bank would become one of the leading
institutions of the country. He said the bank had one
or two " lock-ups" of capital, which bad retarded its
progress, but he thought so well of the bank that he had
introduced Mr. Valiant, his brother-i,law. Witness
paid 1,0001. for twenty shares and joined the board, but
finding afterwses that the bank were iron manufac-
turers, and other matters occurrin.z, he resigned the
direction and insisted repayment of his money, which
was done by direction of Mr. Esdaile.
By Mr. Sergeant Shee—He had the highest opinion
of Alderman Kennedy's integrity ; such was his general
character.
Mr. W. Nicholl, of Eccleston-square, merchant, was
induced to become a shareholder on the representation of
Mr. Alderman Kennedy. He had 20 shares, for which
ho paid 1,0001., in 1855; from information he subse-
quently obtained he refused to become a director. In
February following he sold his shares ; ten of them were
first sold in the market for 5001., and they were trans-
ferred to Mr. Empson. Later in the month he
sold the remaining 10 shares, which were also transferred
to Empson for 5001.
By Mr. Shee—He first knew Alderman Kennedy, in
Bombay, in 1811 ; he understood Alderman Kennedy
was the physician-general—he always bore a high cha-
racter for integrity and honour.
By Mr. James—Witness was a director of the Lon-
don and County Bank. He did not know if that bank
commenced with a capital of 84,000/.
After some further evidence of a similar character, the
court adjourned at a quarter past five o'clock.
The case for the pru6ecution is expected to finish early
_ to-marrow morning.