The Sun.
London, England, 1867-10-17 00:00:00

SERIOUS CHARGES AGAINST A LIVER-
POOL COTI ON-BROKING FIR3L

.~.-

The Liverpool Police-court was crowded during
the whole of yesterday, on the hearing of a sum.
mons obtained by Mr. Henry Barry Hyde, manager
of the National Bank of Liverpool, against Charles
Lee Campbell, Herbert Campbell, and Thomas
Stretch, trading in copartnership as " Colin Camp-
bell and Sons " at Liverpool, and which charged
them with obtaining by false pretences advances of
money to the extent of £10,500.
Mr. Sleigh and Mr. Gully appeared for the Na-
tional Bank, and Mr. Iliggin for the defendants.
The summonses against Mr. IL Campbell and
Mr. Stretch were withdrawn, as the evidence against
them w,,s not thought to be sufficiently strong to war -
rant a committal. There had been five summonses
on the file of the court, but now the charge was con-
fined to Charles Lee Campbell. Messrs. C. Camp-
bell and Co. were cotton brokers on an extensive
scale, and their system of business was to have cot-
ton to the extent of 25 per cent, in value over the
advances made. To enable them to make these ad-
vances, they procured assistance from the various
banks. The National Bank, on condition that they
should always keep this margin of 25 per cent.,
agreed to advance them £30,000, and as that " ran
off the reel," to keep up their advances so that a
maximum of £30,000 might be maintained.
Mr. Hyde, manager of the National Bank, said
that after some bills had been declined, on the 4th
July two bills, accepted by Colin Campbell and
Sons, and drawn by Gautier and Bertois, were
brought to the bank ; one was for £5,000 at three
months, and the other for £5,000 at three months.
A. cheque was given to Messrs. Campbell and Sons
for these sums, less the discount, and the cheque
was returned into the bank as paid. Witness was
induced to advance the money under the belief that
Colin Campbell and Sons had cotton, with 25 per
cent. margin, belonging to Gautier and Bertois, in
their bands. He believed they were general trade
bills for cotton, or he would not have advanced a
penny upon them. On Sept. 30 Mr. Campbell again
came to the bank, and asked witness to renew the
bills coming due on 7th and Bth October, saying he
could not meet them. The two bills spoken off were
amongst them. Witness inquired where was the
cotton he held against them. Mr. Campbell re-
plied that he had no cotton. Witness then said,
" You must have cotton under your guarantee to
me." Mr. Campbell said, " I gave you no gua-
rantee."

Cross-examined—Mr. Hyde stated that the firm
of Colin Campbell and Co. stood high in the com-
mercial world, and up to September 30 he had never
heard the slightest whisper as to their stability.
Between the 2d March and the end of June the

bank had advanced to Messrs. Campbell £105,000,

and by the 30th June the whole of the bills and the
loans were paid off in due course. Between the end
of Juue and the 4th July there was no indebtedness
to the bank on the part of Colin Campbell and

Sons. On the 30th September witness had a con-
versation with Mr. Campbell as to the outstanding
loans, which were then £36,000, and had reference
to specific quantities of cotton. 'The authorities of
the bank made up their minds to institute this pro-
secution on the Bth instant.
Mr. lliggin concluded his cross-examination by
asking Mr. Hyde if this prosecution was not insti-
tuted for the purpose of compelling the payment of
a debt due to the bank, but the witness gave the
question a direct and emphatic negative. Mr. Sleigh
(and Mr. Raffles, the stipendiary magistrate, agreed
with him) stated that such a question ought not to
have been put.

Mr. Sleigh contended that the money was ad-
vanced, less the discount, to Messrs. Campbell and
Co., upon the faith and belief that they had in their
hands at the time cotton to the value of the amount
advanced and '25 per cent. more.
in defence of Messrs. Campbell and Sons, Mr.
Iliggin said there was no charge against them in
reality, and he would be able to show such to be
the case to the satisfaction both of the Court and
of the entire commercial community. If his clients
had not been unfortunate nothing would ever
have been heard of " commercial morality." The
bank, like all banks in bad times, tried to get all
they could from unfortunate customers, even at the
expense of other creditors, and that was what Mr.
Hyde had done.
The case had not terminated when our parcel was
despatched.

COUNTRY MARKETS.