The Sun.
London, England, 1860-07-09 00:00:00

payments to members of the Stock Exchange, anti is sup-
posed to represent losses sustained by Pullinger in thkoTi
bargains. The investigation also shows that £62,799 6s.
2d. has been traced to ,the bullion broker referred to, who
is known to have been largely engaged with Piillinger in
speculative operations, but was not a member of the Stock
Exchange.
"These sums, amounting together to £187,074, leave
£83,051 not yet traced to parties as having received it.
" It is now known that Pullinger had an interest in cer-
tain racehorses, and that he had betted largely on races ;
but nothing has transpired to throw any doubt upon his
statement that only a small portion of the money was lost
in that way.
" It will be seen by the accounts appended to this report
that the directors have realised £11,116 from property of
various kinds that belonged to Pullinger -, and, though they
have taken the safe course of assuming the balance as a loss,
they can assure the proprietors that the subject engages
their constant attention, and that no steps are neglected
which may lead to the further recovery of property.
" In their circular letter of the Bth of June the directors
informed the proprietors that they had been engaged in a
close examination of the system of checks existing in the
bank, and had in some departments introduced others
which they trusted would prove effectual safeguards against
any repetition of fraud; and the result has been to insure the
greatest stringency in the administration of the office. It
would be impossible to make the effect of these regulations
clear to those not conversant with the daily working and
necessarily complicated operations of a bank ; but they are
based on an extension of the present system of double re-
sponsibility—that is, of each operation of one clerk requir-
ing the check of another, mid on a rotation of duties by the
clerks in certain departments, whereby the accounts kept
by one clerk are from time to time transferred to another
clerk.
" The investigation has, of course, been extended to all
the accounts of each department ; and, after the most rigor-
ous examination, the directors can speak with confidence as
to the entire accuracy of all the accounts ; and they feel
satisfied that the system now in operation is sufficient and
effectual in all respects.
" The extent of the defoliation and the simplicity of the
course adopted by Pullinger tend to increase the responsi-
bility which the knowledge acquired after the event may
cast upon the manager's department, but the directors be-
lieve that no proprietor can forget that Mr. Scrimgeour has
been the faithful and zealous manager of the bank since its
establishment, and that during his management it has at-
tained its present magnitude and high position. No pro-
prietary was ever served with more disinterestedness and
energy, and the directors feel assured i hat those services,
which the proprietors have acknowledged from year to year,
cannot be forgotten on the first reverse which the bank has
experienced.
' The Stock-Exchange Committee, in their repert of sth
June, complain that ' the directors led the public to infer
that the enormous sum of £263,000, embezzled by the delin-
quent clerk, had been lost by him in speculations on the
Stock-Exchange,' while a loss of ' only £53,285 has been
traced on account of speculative transactions carried on
through members of the Stock-Exchange.' The directors
consider that their statement—' it now appears that he
(Pullinger) had been engaged in an extensive system of
time-bargains on the Stock-Exchange'—is fully borne out
by the figures in this report, supported by the resolution of
the Committee of the Stock-Exchange, censuring Messrs.
Bell and Ball ' for having transacted speculative business
to a most reckless extent for Pullinger,' and they do not
think it warrants the inference drawn from it by that com-
mittee.
"The directors give full credit to the Committee of the
Stock-Exchange for their desire to enforce the strict obser-
vance of their regulation against transacting , speculative
business for clerks in public and private establishments, as
well as for their anxiety for the reputation of their associa-
tion ; but, admitting it to be true that only a portion of the
money stolen has been discovered to have been lost on the
Stock-Exchange directly through members of that body
there can be no doubt that the bulk of the defalcations has
been lost ' I hrough an extensive system of time bargains,'
although all those operations were not conducted by mem-
bers of the Stock-Exchange.
" The Committee of the Stock-Exchange also complain
of the directors withholding from them their knowledge,
that Messrs. Scrimgeour and Co., the brokers of the bank,
had carried on a speculative account for Pullinger, while
they furnished information to that effect as regarde four
other members of the Stock-Exchange.
" Shortly after the discovery of the frauds Messrs.
Scrimgeour and Co. informed the manager, for the first
time, that they had had one transaction with Pullinger
which was the purchase of £5,000 Turkish stock in July,
1856—which they had continued without charging any
brokerage till the 16th of March, 1860, having treated it as
an act of courtesy towards a person they had known for
many years, holding g confidential position in the bank of
which they were the brokers ; and as there was no regula-
tion of the Stock-Exchange against brokers dealing with
clerks at the. time the purchase was effected, their attention
was not drawn to the rule as applicable to this case.
" The manager at once reported this communication to
the directors, who received it with equal surprise and dis-
approbation.
" The directors furnished the committee with all informa-
tion traced by them in the course of their investigations ;
and, if they had thus discovered any connexion whatever
between Pullinger and Messrs. Scrimgeour and Co., they
would have reported it to the committee, as they reported
his connexion with other stockbrokers, as soon as it became
known to them ; but they had no knowledge of this trans-
action except from the voluntary statement of Messrs.
Scrimgeour and Co.;and the directors felt, and still feel,
that they would not laave been justified in making such a
use of a spontaneous statement of facts of which the direc-
tors could have had no cognisance in any other way.
In accordance with their report of April
24th last, the directors have appropria-
ted towards meeting these frauds the
reserve fund, which has realised £100,851 15
Now proposed to re-debit capital account
with amount carried last year to credit
of that account from reserved fund
Balance to be paid out of profits of the

120,000 0 0

year

21,166 16 2

X25_2,008 0

" This course will provide for a dividend of 12s. per share
for the last six months, making, with the dividend and
bonus paid in January last, a total payment for the year of
12 per cent. on the capital of £720,000, and leaves an un-
appropriated balance of £3,406 to be carried forward to profit
and loss account of next year.
" The accounts now presented show the results of the
operations of the past year, and attest the extent and highly
profitable state of the business. Notwithstanding the heavy
loss sustained, the number of customers of the bank, as well
as of proprietors, has considerably, increased, while the
amount of the bank's balance-sheet, now submitted, exceeds
the amount shown on the 31st of December last.
" The state of the business at the several branches is, in
all respects, satisfactory and remunerative.
" The directors have now laid before the proprietors all
the information they possess. They had hoped that, on the
21st anniversary meeting, the hitherto uninterrupted pros-
perity of the bank would have been the subject of unmixed
congratulation, and they cannot adequately express their
regret that their expectations have not been fulfilled. They
believe that by the course they now unanimously recom-
mend for adoption the permanent interests of the bank will
be best combined with the immediate convenience of the
shareholders. Severe as the loss is (and to none more than
to the directors, as among the largest holders of the stock),
it is satisfactory to be able to refer to the balance-sheet now
presented as unquestionable evidence of the present prospe-
rous position of the bank, and as confirming the anticipa-
tions of the directors and the surplus profits of a few years
will replace all that has been lost, and that the future will
be marked by the same prosperity which, with this solitary
exception, has attended the past.
"In February last Mr. Wight, the able and highly re •
spected manager of the Charing-cress branch, resigned that
office in order to join a mercantile firm as a partner ; and
the directors have appointed in his room, Mr. John St.
Baroe, who held for seven years a confidential appointment
in the Bank of England.
" The following directors retire under the provisions of
the deed of settlement—viz., Major. General Matheson,
Archibald Boyd, Esq., and Charles Lyall, Esq. • and Ar-
chibald Boyd, Esq., and Charles Lyall, Esq., Offer them-
selves, and are recommended by the Court, for re-election.
Fleetwoodi Pellew Wilson, Esq., of George-yard, Lombard-
street, a duly qualified proprietor, has given notice of his
intention to become a candidate for the office of director at
this meeting.

" By order of the Court,
" H. NEWMARCJ, Secretary
" 2, Princes-street, Mansion-house, July 4, 1860."

THE UNION BANK OF LONDON FOR THE YEAR ENDING
JUNE 30, 1860.
GENERAL BALANCE.

LIABILITIES.

£ 13. d.
720,000 0 0

Paid up capital of the bank
Due by the bank on current accounts,
deposit receipts (including interest
accrued), and other obligations.. 9,740,548 9 7
Rebate on bills not due
Balance at credit of pi ofit and loss

£10,595,005 13 3

ASSETS.
Cash in the bank . . £355,271 18 1
Do. in Bank of England 668,574 14 2
Ditto lent at call 1,052,020 0 0

£2,075,83912 3
Investments in Government Stock, Ex-
chequer-bills, City Bonds, Debentures,
&c.
Bank premises, consisting of freehold
buildings in Princes-street, Mansion-
house-street, Argyll-place, and Fleet-
street, and lease and fixtures of No. 4,
Pall-mall East 108,775 4 5
Loans, bills discounted, &c., including
the balance at the debit of the late
chief cashier.. 7,319,441 13 2
Dividend and bonus declared on the 11th
of January, 1860

54,000 0 0

£10,595,00513 3
PROFIT AND Loss ACCOUNT.
LIABILITIES.

Amount of the frauds of the s. d.
late chief cashier 263,125 6 10
Less amount realised out of

£ s. d

his property
252,008 12 0
3 406 18 4
Balance carried to next year ' .---

£255,415 10 4

ASSETS.
Profit unappropriated on June
30, 1859
Amount of net profit of the
year ending June 30, 1860 124,441 14 0

Out of which a dividend and
bonus was declared on San.
11, 1860 .................. 54,000 0 0
And it is new proposed to de-
clare another dividend of
12s, per share ............ 36,000 0 0

THE CIVIL SER VICE.

War-office.—MajorzGeneral William Frederick:.
Forster has been appointed military secretary to
the Commander-in-Chief, in succession to Lieut.-
General Sir Charles Yorke, K.C.8., resigned-
-2,000 ; As Wil-
lsiaalmati, Mesurier has been appointed Deputy-Coro-
missary-eeneral, vice Mends, deceased; Assistant-
Commissary.-General John Sainsbury Davenport
has been !appvinted Deputy-Commissary-General,
vice Williams, retired. The Admiralty.—Mr.
William Cuming lens been appointed a dockyard
examination. Law Depart-
clerk, and passed
ment.—A vacancy in L'he Marlborough-street police-
court has been created by the retirement of Mr.
Peregrine Bingham, ,se.oior magistrate ; Mr.
F. A. Carrington, of the Oxford Circuit,
has been appointed Rec.:order of Woking-
ham. Customs—Mr. Henry Coxwell has been pro-
moted from the third to the secood class of clerks in
the secretary's department, Londe.n. ; Mr. 4mes P.
Midlane, late supernumerary clerk. has been pro-
moted to be 18th clerk in the ReceiVer-Generid's-
office, London ; Mr. Henry W. Dobeli, late Assis-
tant Controller-General, has been promoted to be
Controller-General, London ; Mr. Robert G. Hast,
senior principal clerk, has been promoted to be
Assistant Controller-General, London ; Mr. 'W-
IT. Dickinson, first-class clerk, has been promoted.
to be a principal clerk, Controller-Generars-
office, London ; Mr. A. White, second-class
clerk, has been promoted to the first-class, Con-
troller-General's-office, London ; Mr. H. J. Gard-
ner, third-class clerk, has been promoted to the se-
cond class, Controller-General's-office, London. The
following gentlemen have retired from the service
on the reduction ot" the establishment of the secre-
tary's office---viz., MC ars. W. B. Hunt,A. L. Tolle-
mache, J. Neale, G. MObYry and R. H. G. F.Pigott.
Inland Revenue Depar;ment.—Accountant and
Controller-General's-office - Messrs. Charles S.
Hawthorne and Frederick Gripper, assis-
tants to the late Accountant aild Contro
bl-
lor-General, and Mr. Wm. M. Moxon, Surveyeeng
in
general examiner, of the first class, have
appointed chief accountants of inland rovcnue.
Mr. . Frederick 'Livermore, first-class clerk,
been promoted to be a principal accountant, vice
Price, superannuated. Messrs. Hugh Tweedy and,
J. G. Le Guay have been promoted from the second
to the first class. Messrs. Henry W. Higgins. and
Richard Incledon have been promoted from the
third to the second class. Messrs. W. B. Garrett
and Fredk. R. Meynell have been promoted front
the fourth to the third class. Messrs. Louis W.
Levien and J.K. Punshon have been promoted from
the fifth to the fourth class'. Inspector's Depart-
ment.—Mr. Ewd. Hyde has been appointed chief
inspector ; Mr. F. B. Garnett has been appointed
assistant to the chief inspector. Excise Branch.—
to Mr. Hugh M'Farlan, officer of Stii.iing second divi-
sion, Stirling collection, has been Edin-
burghappointed fourth division, Edinburgh collection ; Mr.
Norman Smith, officer of Haltwhistle Ride, New-
castle collection, has been appointed to Stirling
second division, Stirling collection ; Mr.
Thomas
Wallis, officer of Llangollen division, Wales
North collection, has been appointed to Wands-
worth first division, Surrey collection. Mr.
Charles Delany, officer of Wandsworth first
division, Surrey collection, has been appointed
to Llangollen division, Wales North collection.
Ireland.—The office of District Inspector of
National SchOols has become vacant by the retire-
ment of Mr. P. Quinlan ; Mr. Patrick Maxwell
has been appointed solicitor to the Commissioners
for Charitable Donations and Bequests ; Mr. john
B. Greene, stipendiary magistrate, has been ordered
to take charge of the Clonakilty district, in the
county of Cork.—Civil ;Service Gazette.

COUNTRY MARKETS.

sinmaarmkoest
NORWICH—JULY 7.
traTdoe-dwaasy'
White wheat 60s to 65s I Red wheat
t w
inactivea s on lonly
tsh it
ant el Y attended, and the wheat
.
563 to 60s
Malting barley....42s to 46s I Chevalier barley 34s to 40s
Distilling do ......25s to 27s 1 Oats.. ' 24s to 28s
Flour, 36s to 40s Od per sack from the miller.