The Sun.
London, England, 1858-02-18 00:00:00

TRIAL OF THE ROYAL BBITIBII BANE

DIRECTORS.

COURT OF QUEEN'S BENCH, GUILDHALL,
THE QUEEN Y. BROWN AND OTHERS.

FOURTH DAY.
[The following appeared in SUCCOIIiTO editions of Vie 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 public, was this day resumed.
The same counsel appeared as before.
Mr. Paddieon's examination was resumed. A letter
from Cameron to Brown, dated Nov. 26, 1855, was put
in and read. It detailed the state of Mr. Brown's
account up to that period, and asking for a liquidation
of the balance. It stated that previous to Mr.
Cameron's departure for Scotland, in January, 1855, the
amount was 23,9051. ss. 3d., which, on his return in
May had been increased to 74,539/. Is., owing to cer-
tain amounts having been transferred from Mr. Walton's
account to Mr. Brown's, and that at the date of the letter
it amounted to 77,5981. Ys.2d. Mr. Cameron in that letter
called upon Mr. Brown to provide additional security
and take means to liquidate the debt. In December
following, Mr. Brown wrote to Mr. Cameron, inclosing
him a draft for 1071. odd to be placed to his credit. In
October, Mr. Cameron wrote a letter to Brown, urging
the necessity of insuring and registering the ships; and
Mr. Brown's reply, on which was a memorandum in
Cameron's haudwriL.ng, %las that the matter had been
arranged. On the 20th of November, 1855, Mr. Owen
gave notice of a motion for the appointment of a committee
to investigate the convertible securities, which was
seconded by Mr. L. N. Valiant ; at a subse-
quent meeting, held on the 4th of December, when
the defendants were present, Mr. L. N. Valiant
seconded the motion, and Mr. Esdaile, Mr. Stapleton,
Mr. M'Cloud, and the general manager, were appointed
the committee. On 17th December a meeting of the
committee was held, when Mr. Stapleton, Mr. M'Cloud,
and the general manager were present. Mr. Brown's
securities were examined, A valuation of them was
made in a tabular form, which was produced. He
believed the pencil marks on them were upon them when
they were presented to the committee. Some of them
were in Mr. Cameron's handwriting and others Mr.
Walton's.
Mr. Huddleston proposed to read the valuations of
the ships held as security by the bank.
Lord Campbell—Whose valuation is it I
Mr. Paddison said he always understood it was Mr.
Walton's.
Mr. Huddleston then read the valuation, Mr. Paddi-
son examining the original. The ship Hornet was 1.287
tone, and was purchased in July, 1854, for 18,3501.
There was expended on her 3,5001.—t0ta1, 21,850/., and
the present value was entered in pencil 15,0001., and
again 18,0001. The Magdalena was 870 tons. She was
purchased in May, 1853 ; cost, 4,750/. ; there was
expended on her 3,5041.—t0ta1, 8,200/. ; present value
5,5001. and 8,000/. The witness, in answer to questions,
said that some of the pencil figures, showing a lower
valuation, had been placed on the list since its produc-
tion before the security committee.
Evidence was then called to prove the writing in
pencil was partly Mr. Walton's, governor of the bank at
that time.
A Juryman said he saw a mistake of 10,0001. in a
copy of the list produced.
Mr. Atherton said it was a deduction made in the
Court of Bankruptcy relative to vessels in the list not
mortgaged to the bank.
A Juryman—The difference still exists after that
explanation.
Mr. Huddleston then read the; statement. Helen
Lindsay, 544 tens, cost 6,500/., expended on her
1,5001., valuation in pencil 6,0001. and 7,0001.; Hero,
455 tons, cost 4,5001., expended on her 2,0001., valua-
tion in pencil 4,8001. and 5,500/. ; Ambrosina, 437
tons, cost 6,6001., expended on her 1,000/., valuation in
pencil 6,0001. and 5,5001. ; Ocean Wave, 347 tons, cost
6,6001., expended on her 1,5001., valuation in
pencil 5,0001. and 6,0001. ; Bride, 396 tons, cost
' 2,700/. expended on her 1,2501., valuation in pencil
figures 2,8001. and 3,200/. ; Wasp, cost 2,5001., expended
on her 1,4001., valuation in pencil 1,500/. and 1.8001.
Rosy Brown, cost 3,000/., expended on her 1,500/.,
valuation in pencil 1,6001. and 2,200/. ; Caroline Brown,
112 tons, cost 2,0001., expended on her 400/., valuation
in pencil 1,200/. and 1,7001. ; Young Morgan, 135 tons,
cost 2,1001., expended on her 500/. valuation in
pencil 1,6001. '
and 2,000/. Madonna, 126 tons, cost
1,100/., expended on her 3501., valuation in pencil first
sold, and in the other 1,450/. Mr. Walton initialled the
whole of the account, which gave a total of cost of the
ships, 82,8501., and the valuation first 52,5001., and the
other 65,8501.
Mr. Paddison was then examined on the freights.
Mr. Linklater was then called to explain the mistake
discovered by a juryman. He said he had not discovered
it before the paper was put in that day. It might have
been brought to his recollection some time since, but he
could not say.
Mr. Paddison was recalled. He stated that on. the
17th December, 1855, a court was held at which a reso-
lution was adopted stating that whereas Humphrey
Brown, Esq., M.P., was indebted to the bank in a large
Qum of money secured to the bank on several ships, and
whereas it appeared to the committee the securities now
held were insufficient, it was necessary to realise them ;
and whereas Mr. H. Brown had offered to give additional
security by mortgages over real property, and an
assignment on a ship called the Severn, it would
be for the advantage of the bank to sell them
forthwith, and that consequently the broker to
the bank be: directed to sell them for the benefit of the
bank as they came into port, and render an account to
the bank. Mr. Brown, on receipt of a copy of this reso-
lution, repudiated this decision on the part of the com-
mittee, remarking that they could not place his affairs
is tho hands of other persons without leading to the
most awkward revelations in reference to the bank.
A very voluminous correspondence was then read,
relative to the details of Mr. Brown's account of the
attempts of the bank to realise his securities, of an unin-
teresting character.
At an interview with Brown and Cameron in the pre-
sence of Mr. Paddison, Mr. Brown stated that he bad
not received the Hornet's freight. Messrs. Buchanan
and Brown, of Liverpool, had informed the bank before,
in answer to an inquiry from them, that they had
paid Mr. Brown TOOL, the amount of the freight..
After Mr. Brown had left, Mr. Cameron
said to Mr. Paddison, "how painful it was to find such
a man as Mr. Brown so committing himself to
falsehoods."
A letter of Mr. Brawn's, acknowledging the receipt
of 5001. on the Hornet's freight from Messrs. Buchanan
and Brown, of Liverpool, was put in and read.
Mr. Atherton said—That, my lord, is the whole of
Mr. Paddison'e proof of Mr. Humphrey Brown's debt.
Several letters were put in on the part of the respec-
tive defendants relative to Mr. Brown's debt, and their
conduct in reference to it.
Mr. L. Winterbottom, of Stroud, an officer of the
Gloucestershire Bank, was called. He stated that in
1850 Humphrey Brown opened a drawing and discount
account with the bank. He was at that time conducting
a silk throwing business at Tewkesbury. On two
occasions the bank took mortgages of the ships the Rosy
Brown, the Bride, and the Severn. On the Rosy
Brown they received 985/. ; the Bride, with the freight,
1,715/., and the Severn 1,021/. In December 1854,
the balance against Mr. Brown was 0,5541.
Mr. E. James objected to the reception of that evi-
dence, as showing knowledge of those mortgages.
Lord' Campbell said that if it could not be carried
further it had better be withdrawn.
The evidence was withdrawn accordingly.
Cross-examined by Mr. Huddleston—The bank ad-
vanced 4,0001. to Mr. Brown in December, 1854; out
of that 2,6001. were paid over to the British Bank. The
Gloster Bank held in addition to the ships, mortgages
on several distinct properties, estimated to be worth
17,0091. but they realised lees. In 1851, 1852, and
1853, Mr. Brown was reputed to be rich. He was
member for the borough, a magistrate, and had twice
filled the office of mayor. He was on one occasion a
carrier, and afterwards traffic taker, and furnished re-
ports lmon to the House of Commons.
Re-examined—He knew of no security being given to
the Royal British Bank. All Brown's securities had
been realised, and there was still a balance due to the
bank of 5,000/.
By Mr. Atherton —Mr. Brown was bankrupt in
1831 and 1835.
By Mr. Huddleston—He did not know if the
first was superseded, and that he paid 20s. in the
pound on the latter.
Mr. Wymark deposed that in September, 1855,
he sold the Madonna for 950/., and in May,
1356, he sold the Young Marquis for 1,7651.: he
paid the proceeds over to Mr. Brown. - He
was instructed by Mr. Brown and the Gloucester.
shire Banking Company to sell the Rosy Brown. A
paper was put in on which was written by Mr. Brown,
" say nothing about the sale of Rosy Brown, or certain
parties will want me to pay the proceeds over to them,
H. B.
Sir F. Kelly objected to the evidence. It did not bear
on the conspiracy, but rather that Mr. Brown was de-
ceiving his brother directors.
Lord C trunbell said he did not see the materiality of
the evidence, and it bad better be withdrawn.
The evidence was withdrawn accordingly.
Mr. Ridley, ship broker, deposed that he sold the
Ocean Wave by auction at Lloyds on s:h March, 1857,
for 3,5751. ; and on the same day the Hornet was sold
for 5,6271., and the Helen Lindsay was sold on the 25th
Ju1,1857, for 3,200/.
f‘,.34,r„. Wyniark was recalled.—He sold the Ambrosio&
„,,‘,OOl but he could not state the date.
es.r. Ridley.Jeraem, recalled and cross-ex mined by Mr. E.
Londe The Hornet wise sold to Mr. Greenhouse, a
the
Ambrosias
Royal n nlrich. t Witness did not know if the official
assignee had been offered 10,0001. for her. The ships
were sold in the name of the owner, and by direction Gf
British Bank. He sold Mr. Brown the
n February, 1854, for 6,160/.
It was proposed to
call evidence to show previous
mortgage of the shiptsdwhen the money
knowledge of theec mortgagesto its being received,
was advanced.
defendants.laßm r:.i.
AthertonenJamesee
8. enroetberaolulgshutchhoemvied unlesse
t evidence.
c ,th the
aldhe.woulwd
Evidence was then given of the sale of the shi a.
that at the time of the sale ships had depreciated from
m and
to
3440r.pvirera el
te
on
nt :
son of the late governor,
r, said that he
dn his father's
if
, and his father had liquidated the w
' debt of 60,000/. The amount was for
I
father commenced retiring the bills befosrceoull'its,cie hie
and the witness had since that event retiredathe
remainder. His father valued the ships for the bank.
He was a man of great experience in shipping
matters.
Mr, Paddison recalled—He did not believe the

bank knew of the previous mortgages on the ships
till Aug. 6, 1856, and the bank stopped on Sept. 8,
1856, and after Mr. Cameron had left the bank.
Brown always represented to the bank the ships were
on the voyage, and on their return they should be
realised. _ . _ _ _

The Crown then proceeded with the debt of Mr.
Oliver, of Liverpool.
Mr. Paddison was called and examined by Mr.
Ballantine. He read the minutes of the different board
meetings relative to Oliver's accounts, at which the
defendants were present. It referred to the advances
to be made and made to Mr. Oliver ; the subsequent
offer of a composition of 3s. 4d. in the pound. At aboard
meeting, held in February, 1855, Oliver's deed of trust
was produced, and a resolution was passed that the
seal of the bank be affixed to the deed. On the 6th of
March, 1855, at a meeting of the directors, the gover-
nor explained that be had consented to the guarantee
of Mr. Walton in respect of a bill drawn by Oliver or
Johnson for 4,2351. 17e., and which was approved of by
the board. On the Bth and 26th Dec. there were entries
explaining the manner in which Oliver's missing bills were
found, and also a correspondence with the solicitors of
Oliver's trustees, offering to refer the dispute about the
bills to Mr. Bacon, of the Chancery bar.
Mr. Geo. Anderson deposed that he was a clerk in
the Royal British Bank. Mr. Oliver kept an account
at the bank. On 13:h October, 1854, he made out an
account of Oliver's obligations to the bank, which he
handed to Mr. Crawford, the accountant. The account
commenced on 17th May, 1854.
A long discussion ensued as to the admissibility of the
list as evidence, without evidence being first given
that the past due bills book, containing the original
entries, were laid before one or more of the directors.
Lord Campbell ruled that the books were admissible
as evidence to show the part each defendant took in the
proceedings.
Mr. Sergeant Shee said it bad not yet been proved
that either of the defendants were members of the past
due bills committee.

Lord Campbell said he would put aside the list, and
have the entries in the books read.

Mr. Atherton called Mr. Paddison to prove who were
the committee from the commencement of Oliver's trans-
action, which commenced in the early part of 1855.
Mr. Paddison then proceeded to read the names from
the minute book, which was a very tedious process, and
Sir F. Belly having taken some further objections to
the dates to which Mr. Paddison's entries referred, when
Lord Campbell said, Mr. Atherton, don't you think
some better arrangements could be made for getting at
the names !

Mr. Atherton said, that if he bad known the names
would have been required he would have had a list of
them made oat. He could get it done by to-morrow
morning.
Lord Campbell (warmly)—lf the objection be per-
sisted in I will adjourn the Court till to-morrow morning
for that purpose.
The Court was accordingly adjourned at 20 minutes
past 3 o'clock.