The Sun.
London, England, 1858-05-05 00:00:00

LAW INTELLIGENCE—(This Day.)

COURT OF QUEEN'S BENCH.

(Sittings in Banco.—Before Lord Campbell, Mr.
Justice Wightman, Mr. Justice Erle, and Mr.
Justice Crompton. )

THE LATE ROYAL BRITISH BANK DIRECTORS'

TRIALS.
THE QUEEN V. BROWN AND OTHERS.

Lord Campbell, in delivering the judgment of
the Court, said the Court having taken time delibe-
rately to consider all the evidence in this very com-
plicated case, and the arguments of counsel for the
defendants in moving for a rule to show cause why
the verdict in this case should not be set aside, they
were of opinion that no rule ought to be granted.
The jury was justified in finding the conspiracy
charged in the information, which had been entered
into, and that the defendants, who bad made the
application, were privy to the conspiracy in the
information charging the defendants with deceiving
and defrauding certain shareholders of the Royal
British Bank, who were not aware of the true
statement of its affairs, and to induce the Queen's
subjects generally to become customers and cre-
ditors of the bank, to become purchasers and
holders of shares therein, and did conspire falsely
to publish and represent that the affairs of the
bank during the year 1855 was in a sound
and prosperous condition of the bank pro-
ducing profits divisible amongst the shareholders,
they (the defendants) well, knowing the fact that
the Royal British Bank was that year in an un-
sound state, and in an unprosperous condition,
producing no profits for division amongst the share-
helders. The publication and distribution of the
balance-sheet, purporting to give a true state of
the condition of the affairs of the bank up to the
31st Dec., 1855, was a fraud ; and another fraud
was the declaring and paying a. dividend at the
rate of 6 per cent. out of profits, the directors
knowing that no such profits ought to have been
paid. The balance-sheet, taken altogether, showed
that the bank was in a sound and prosperous con-
dition, and that 6 per cent, might properly be paid
out of realised profits; but the evidence on the
trial showed that it was deceptive, and that the
bank had sustained heavy losses, and was incapable
of fulfilling its engagements. The deception was
chiefly accomplished by the directors including on
the asset side the items of loans, bills discounted,
&c. The evidence against Esdaile was irresistible.
His affidavit before the Court of Chancery showed
that he was conversant with the whole state of the
bank's affairs. Brown was aware of the losses the
bank had sustained, and if he did not originate hi
fully concurred in the expediency resorted to for
concealing the true state of the bank's affairs and
deceiving the public. Cameron exercised the chief
control over the management of the bank ; and
though the directors could not excuse themselves
from deferring to his management, the jury wer•
justified in saying he was one of the principal actors.
He now came to the other defendants, who, so far
as moral delinquency was concerned, might be re-
garded in a more favourable point of view—viz.,
Kennedy, Owen, and M'Cleod. They joined the
bank without improper motives. They believed it
at that time to be in a sound state, and was likely
to be a flourishing concern. They obtained no ac-
commodation or advantage from the bank, but, on
the contrary, they retained their shares till the last,
and became involved in the general ruin. They
knew, however, of the insolvent state of the bank
in 1855, and of the deceptive character of the
balance-sheet. Their conduct in that respect could
not be justified, and they were guilty in point
of law of the offence charged in the information,
and the evidence justified the jury in finding them
guilty of their knowledge and concert in the con-
spiracy. There was no documentary evidence
to show that Owen possessed specific infor-
mation relative to the insolvent state of

the bank other than Esdaile's letter of the 15th of
January, 1855, relative to their not " dangling a
_ _

rope of sand" before the shareholders at the ensu-
ing half-yearly meeting, but to present a " bold
front," and, "by God's blessing, all would go
right." Beyond that he was an original promoter
of the bank and an original director, and a governor
for some time whilst the balance-sheet was in pre-
paration ; and he also regularly attended the meet-
ings of the directors and the committees from the
opening of the bank to its close. He was, there-
fore, not ignorant of the losses and embarrassment
of the bank. The evidence was not so strong against
M'Cleod, but the Court could not say by any
means that the jury was wrong in finding him
guilty. He took an active part in the management,
particularly with reference to the issue of new
shares, and preparing the circulars by which they
were recommended to the public, and he must
have known the state of the bank at that time.
On the trial several persons were called who gave
the defendants excellent characters, which rather
tended to show there was a rather low standard of
commercial morality existing in matters of this
kind, without lowering the reputation of the indi-
viduals concerned in it. All the facts in the case
were uncontradicted, and his lordship expressed a
hope that the prosecution, though perhaps it bore
hard on some of the defendants, would have
a salutary tendency to deter men engaged in com-
mercial pursuits, from yielding to the temptation
to depart from the truth, even if they might think
wilful misrepresentation could be resorted to with-
out working prejudice on those who might rely on
them.
Rule discharged.

MARIQUITA COMPANY.

TO THE EDITOR OF THE SUN.

Sir,--I notice in your paper of Ist inst. a leVer
from Mr. C. Richardson, complaining of Mr. E.
Mocatta's intended absence in Venezuela.

I am sure, sir, that almost all my fellow share-
holders will recognise in that letter the bitter feel-
ing of private animosity towards Mr. Fowles,
which has actuated Mr. Richardson in all hl5
attacks upon this company, and they will directly
understand that the directors themselves would not
sanction the absence of one of their body did it
appear at all likely to ba detrimental to the
interests of the company.
Trusting to your sense of right feeling to give
insertion to this,
I remain, Sir, your most obedient servant,
JAS. PARKER.
Highgate, May 3d, 1858.

Mr. John Naylor, or.e of the shareholders in the
Northumberland and Durham District Bank, has com•
mitted suicide.