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

" The investigation has, of course, been extended to al

the accounts of each depaitment ; 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 defaloation 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 ho
(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 'through 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 regards 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,
1356—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 a confidential position in the bank of
which they were the brokers ; and as there was no regula-
tion of the Stock-Exehange 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 an 1 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 have 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 10
Now proposed to re-debit capital account
wiliti amount carried last year to credit
of that account from reserved fund
Balance to be paid out of profits of the
year 31,156 16 2

120,000 0 0

• £252,008 12 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 £3,496 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 permanont 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-cross 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.
Fleetwood Pelle w 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 a^
this meeting.

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

THE UNION BANK OF LONDON TOR THE YEAR ENDING
JUNE 30, 1860.
GENERAL BALAI,;cE.

LIABILITIES.

s. d.
720,000 0 0

Paid up capital of the batik
Due by the bank on current accounts,
deposit receipts (including interest
accrued), and other obligations 9,740,548 9 ,
Rebate on bills not due
Balance at credit of No& and loss 124,563 14 6

D 0,595,005 13. 3

ASSETS.
`y ASSETS. in the bank ls 1
De. in Bank of Fliigland ;,,:i,b7l 14 2
Ditto lent at call 1,052,020 0 0

£2,075,83912 3
Investmer.A in Government Stock, Ex-
chequor-bills, City Bomb, Debentures, •
&-c.
Balk 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 7,319,411 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 £

8. d. .0 s. d .

. .
late chief cashier . : 263,125 610 .....
Less amount realised out of
his property
952,008 12 0
3,406 18 4
Balance carried to next year
----

L 255,415 10 4

ASSETS
Profit unappropriated on Juno
30, 1859
Amount of net profit of the
year ending June 30, 1860 124,441 14 00124,563 14 6

122 0 6

Out of which a dividend and
bonus was declared on Jan
11, 1860 C4 000 0 0
And it is now proposed to de-
clare another dividend 'of
0 0
90,000 0 0
12s. per share

56
106
Amount proposed to be reserved £34
100,8513 1154
Proceeds of reserved furd realised
Amount proposed to be debited to capital ac-
count to meet the frauds of the late chief
cashier

£255,415 10 4

SUICIDE BY A SOLDlER.—Yesterday morning a
private of the Gth battalion Military Train Corps, stationed
at Woolwich, proceeded to one of the garrison stables and
shot himself through the head in a most de ~ermined manner,
the skull of the unfortunate man being shattered to atoms.
The deceased had been some years in the service, and no
cause can be assigned for the rash act.