The Sun.
London, England, 1858-02-17 00:00:00

THIRD DAY.

[The following appeared in successive editions •f The Sun
of yesterday :--]
The trial of the information against the directors and
manager of the Royal British Bank for conspiring by
false pretences to defraud the shareholders and cus-
tomers and the palette, was this day resumed.
The same counsel appeared as before.
Sir F. Thesiger proposed to examine Mr. Paddison
relative to the appointment of a general manager in the
place of Mr. Cameron in December, 1854.
Mr. Sergeant Shee asked before that was done to be
allowed to read the minutes of the Court of Directors
after the 28th March, 1854, when Mr. L. M. Valiant,
brother-in-law of Alderman Kennedy, first became a
director.
Lord Campbell said that the learned sergeant might
then draw the attention of the jury to those parts of the
minutes to which he referred.
Mr. Sergeant Shee said he would do so. The learned
sergeant then read the minutes. Commencing with
28th March, on which day it was agreed by toe Court
that Messrs. Fuller and Horsey should be instructed to
sell the Welsh works at a commission of one per cent.,
and in the event of their not being sold to be pti6id
1001. for their trouble, and 2501. for advertising, &p.,
which those gentlemen accepted on the understanding
that the works should not be sold for less than 50,0001.
It also appeared that Mr. A. Spens, another brother-in-
law of Alderman Kennedy's, joined the directory on
the lit of August. The tendency of the evidence went
to show that Mr. Valiant took no part in the advances.
Mr. E. James read Mr. Clarke's report relative to the
value of these mines, dated 10th Sept., 1853. Mr.
Clarke was a director up to 1853, and after that he went
to the works with a view of managing them to relieve the
bank of its burden. In that report Mr. Clarke stated
he had been enabled to come to a better understanding
of the value of the works, and he was then of opinion that
with an outlay of capital and good management, the in-
come to be derived from them, formerly estimated at
10,0001., might be doubled. pinions on these matters
the report further stated, were sometimes erroneous, and
often visionary, but he had good grounds on which to
base his opinion and to show that it was no chimera of
the brain. The report then detailed the data on which
that opinion was founded.
Lord Campbell said the effect of Mr. Clarke's report
was, that after he had ceased to be the manager he had
a high opinion of the works.
Mr. Paddison's examination was then resumed.
It commenced with the period first referred to,
viz , the appointment of a new general manager. The
witness then proceeded with reading the minutes, the
reports from the inspectors and others relative to the
subsequent state of the mines and the position of the
bank in reference to them, and how to realise the secu-
rity. A report from Mr. Thompson was read, which
stated the mines as inexhaustible, and that gentleman
was appointed manager at a salary of 1,000/. a-year, with
a commission of 7i percent. subject to certain restrictions.
A report dated in October, 1854, was put in, in which
Mr. Thompson stated the iron works were producing
a profit of 2,0001. a-year. From Jan. 20 to May 20, 1855,
Mr. Cameron was absent • wing to a dangerous illness.
Mr. Thompson resigned the management of the men
about January, 1855, at which perio the disbursement
on account of the mine amounted, as shown by the books
of the bank, to 84,0001. At a court in May, Mr.
Humphrey Brown proposed to go down and inspect the
Welsh works ; but before doing so Mr. Beveridge, the
Garth manager, on the suggestion of Mr. Brown, saw
him at his private residence before going to the directors,
that they might talk the matter over in an unre-
strained manner. Mr. Brown was directed to go
to Wales, and in his report made certain suggestions,
for which he received the thanks )f the Court of Directors.
On September 29, 1855, Mr. Beveridge was instructed
to serve on Mr. Trehorne, agent for the ground landlord,
notice of the intention of the bank to give up possession
of the Garth Works in September, 1856; up to the time
witness had anything to do with the bank the Liverpool
property had produced nothing towards the liquidation
of the money advanced on it; the prior mortgage bad
absorbed all, and the 5,0001. advanced was still due. The
Cefu Park Works lease expired in September, 1850;
neither were renewed.

This closed the •xaminiation in chief of the witnesses
relating to the Welsh Works, and the cross-examination
was reserved.

Mr. Beveridge, superintending manager of the Cefu,
Garth, and Park Works—The Park works only were
productive, and that to a small extent. The balance-
sheets presented to the Court of Directors were true
statements of the expenditure and income. There was a
profit and loss account sent with them. Eight 'balance-
sheets were furnished from 1852 to 1855 inclusive. They
were addressed to Mr. Cameron, or Mr. Munro kis
private secretary, or secretary to the Welsh Works
Committee ; fir some time weekly accounts were
furnished to the directors.

The witness was cross-examined by Sir F. Kelly, on
which to found an objection to the admissibility of the
documents in evidence.

Lord Campbell said the object of the Crown was not
to show their truth, but that they were submitted to the
Court of Directors, which was a point independent of
the accuracy.
Sir F. Kelly said that the balance sheet for 1812, on
which a portion of the results of •the general balance
sheet depended had not been proved to hare been sub.
mitted to them.

Lord Csmpbell said it appeared to him that tke ba•
lances were not material, when they had the result of
the whole concern as it appeared in the books of the
Bank.

Sir F. Thesiger said it was important to show that
from time to time the attention of the Directors was
brought to the loss being sustained in respect to the
mines.

The witness said the balance sheet showed an aggre-
gate lose of 1,4301. 2A. Od. There was only one year a
profit was made. The losses included losses in trading,
and losses not legally trading losses.
Mr. Bocill, Q. 0., objected to the admission of the
evidence as showing losses, because a sum of 9,0001 for
plant, and several thousands expended in iniprovernentg,
had not been taken into consideration in these balance
sheets.

After some further examination of the witnesses in
reference to this point, he did not know where bis re-
ports were, unless they were in the hands of Mr.
Linklater ; he only signed one of his reports, and that
wai in 1852.

Sir F. Th;siger intimated his intention to next enter
into the blington Cattle Market debt, and also De
Tart's debt.

Mr. Paddison was recalled, and said the deputation
from the Whigton Cattle Market had an interview with
the Directors of the Bank in December, 1849, and laid
their plans before the directors fur the new market ;
and in January, 1851, the parties gave two pro-
missory notes, amounting to 6,0001, both of which were
dishonoured. There were several renewals before 1852,
and in August, 1851, 1,0001. was paid on account. The
parties to the bills were declared to be worthless,
excepting Mr. Harrison, who was sued abroad.
Mr. De Tart died, owing the bank about 2,0001. for
bills that had been sent to him to collect at Boulogne.
A dividend of 4s. in the pound was however paid.
Sir F. Thesiger said they would now proceed with
evidence as to Mr. Gwynne's debt. He did not intend
to show how these debts were dealt with by the bank,
but merely to prove that they were contracted.
Lord Campbell—Yes, that will be the third point in
your case

Mr. Paddison was then examined by Mr. Wrbaby. He
said Mr. Gwynn. was a director in 1849, and on Feb.
Gth, 1850, the time when he was a director, he ob-
tained an advance of 3,0001. He offered as security his

promissory note, and as collateral security, the Bush
Mills Iron Works,and a mortgage on the same. The Bush
Mills were taken as security. In the following year Mr.
Gwynne obtained a further advance of 5,0001. on a bill
drawn: on Sir James Anderson. The bill was dis-
honoured in Nov., 1852, and in consequence a resolu-
tion was passed in January, 1853, disqualifying "John
Gwynne, Esq.," as a Director. The securities
deposited by Gwynne, embraced amongst others 2,250
shares in the Irish Peat Company. Mr. Gwynne died
after the stoppage of the bank in 1856. The
total advances to Mr. Gwynne amounted to 13,4161.
03. 11d., and nothing had been realised by the bank
from the securities so deposited. The state of Mr.
Gwynne's account was frequently brought before the

direction and discussed.
The next point entered on was Mr. Muliens' liability.
Mr. Paddison deposed that Mr. MuNene died in De-
cember, 1853 ; and at a court of directors immediately
after, a resolution was agreed to by the direc
tors present, in which they recorded their regret
for his loss, and the lively recollection they entertained
for his z3al in extending the distribution, and bearing
evidence of the great qualification he possessed for
carrying out that work of which he was one of the

eatliedpromoters.
After some further evidence, the Ceurt adjourned
shortly before six o'clock.

LIVIMPOOL, Feb.l6.—lntelligence has been received
at this port that the auxiliary screw steamship Bahiaua,
Captaio George Sharpe, charierA by the Ea t India
Conspany faum her owners, the South American and
General Steamship Company, for the conveyance of
troop, made the passage from Kurrachee to Bombay, a
distance of 515 miles, in 47 hours, believed to he the
quickest passage between those points on record. Before
leaving England the BAhiPala wile fitted with a lifting
propeller,