The Sun.
London, England, 1858-02-19 00:00:00

r -D
RIAU 49. STAMPED

Witness afterwards found the .guarantee giien- was
avai!able for the bills then becoming due, and in Dee.,
1855, Blacker became bankrupt. At a subeeqUent
meeting Mr. Cameron stated he had beard that Blacker
was abroad, but'it way expected be would recover some
money from a Florentine bank. There were also some
statements relative to Forrester, who had been employed
in reference to this affair. The guarantee p bey was
taken without witness's knowledge. Blacker also gave the
lease of his premises, which was afterwards valued at 300/.
Forrester was paid 181. 18e. on account of expenses
incurred by him in reference to Blacker'e affairs. -
Mr. Crawford, who was re-called, stated that up t
13.50 , 1855, Blacker's acceptances had been regularly
met, and it was a good acc )unt. It was then discovered
the bills in the bank were fictitious. The batik held
in ➢ec.. 1855, 92 fictitions billa.ef B:aeker, amounting
to 4,2051. 1,1465 13a. were then past dae, and the
reniainder w re running.
Mr. James--And the acceptors were running, too.
(Laughter.)

Witness—Taere was a lose on the cash account.
Blacker'e account, which was a good one, bad extended
over between 30,0001. and 40,0001. Blacker's account
was a very good one, and when the discovery was made
of the nature of the bills it came so suddenly upon them
that they could not realise it.
Mr. James—And you never have realised—(laughter)
—much on the fictitious bill.. -
Sir F. Thesiger then proposed to enter on Mr. Came-
ron's debt, which would in all probability involve an
inquiry ieto Mr. Etnpsnn's debt also.
Mr. D. Seymour, on the part of Mr. H. L Cameron,
asked that the account might not that day be entered
on. Oa Monday last the Court was kind enough to
direct that particulars should be furnished to the de.
Pendant, but they had only that minute been handed to
him.

The Court declined to interfere, and the case proceeded.
'After entering at some length into these debts,
Mr. Paddison was then examined by Mr. We!shy.—
He said Cameron was taken ill in 1855, and was Absent
()prin.; leis tlinesa. Esdaile took his place, mainly in the
management ,of the bank, in consultation 'with other
-direoenra, -Kennedy, -Spea-'4, Owen, VidasntoaattiffaeA
leod. They appeared to be In the manager'« room, as
well as in the board-room. • Oa the -13th of February,
1855, a court was bald; and a committee was appointed
to examine into the books and affairs of the bank; and
the rotation was settled on the finance committee and
past-tlue bills committee • The latter consisted of
Iroulaile, Macleod, and Valliant. In February or March,
1855, the directors told me to tell Cameron they wished
en explanation from him as to some shares, and I
delivered the message. He said he mast have Munro's
assistance, and I mentioned that to the board. Eidaila
said he woull write to Cameron.

A long correspondence was here read between Esdaile
and Cameron on the subject of shares held by the latter,
in the course of which Cameron expressed himself a
great loser by his connection with the bank, &e. At
the end of the year 1855 Cameron went to Scotland.
Before he went he gave me some papers, and wished ins
to prepare a security on some property of his at Diva-
wall. I was puzzled with the paper?. Cameron :aid it
was very simple, and he would lend me a hook on Scotch
conveyancing. (Laughter.) Monro found a book, and I
commenced. I prepared a draught, and submitted it
to him on his return. Ho is a Scotch lawyer. I was
not spoken to by the directort about the security till
March, 1850, (Some more correspondence •:as here read.)
In March, 1856, Esdaile and Stapleton had an interview
with me as to Cameron's proposed security. I told them
he had lung before told me to prepare a security for not
exceeding 15,0001. I told them of the difficulty, and
that I coed not get over it, I wax again spoken to in
May, and asked how matters stood, and I said I must
have authority to employ a Scotch canveyancer. Early
in June I chose a Mr. Greig. In .Tuly, I explained to
Eidaile and Stapleton the nature of the securities given
by Cameron in 1841 for the credit of 3,0001., and I said
that from their nature they were no securities at all.
They were three policies. Up to that time there-was no
security for Cameron's debt; except those three policies
for 3,0001. I did not know of any.deht ho owed to the
bank except the 3,0001., and what-I might infer fr )m
the proposed security (not exceeding 15,0001.)
February, 1855, I was always requested to retire from
the Board, which I did. I wish to call attention 'to
that fact as affecting my own character and the position
in which I stood. That; was in Cameron's absence.

By Mr. Seyrnour—lt occurred once in CAmerou's pre-
sone?, and he objected, and said there was no necessity
for me to leave.
Mr. Paddisun cantinued—l left the book.; behind and
was glad to get away. (Laughter.) [Several mire
letters were here read.] I remember being at a meeting
at the latter part of June, 185 G, when Esdaile, Staple-
ton, and Cameron were present, at the South Sea House.
I remember Stapleton in a most determined, manner
questioned Cameron ab Jut his account. He asked
what he had dons with the sum of 3,000/. or 3,500/
Had he sent it abroad, or had be invested it in any way
for him.eif ? Cameron refused to answer. Stapleton
insisted on having an answer. C imeron still did not
answer. Ho said to me, in an under tone, " What
shall I do '

Mr. Serjeant Shee—Kennedy was there.
Mr. Paddison—He (Cameron) seemed agitated and
distressed. I said "Think before you speak, and ifyoa
cannot collect your thoughts don't speak at all."
(Lasghter.) On the 3d of July I applied to Cameron
for the particulars of his title to the Ding wall property,
tho abstract, and Cameron incidentally mentioned that
it was mortgaged already for 3,0001.. of which I was
not aware before. I mentioned that to E•dails and
Stapleton, and they said they were aware of it. [A. memo-
randum in Stapleton's handwriting of Camoron's account,
amounting to 24,903/., was here referred to, and this
was also a correspondence read respecting some shares
in the bans which Cameron held.] The witness pro•

ceeded to state that a mortgage was executed by
Cameron of the property at Dingwall, and also that al
many as 11 life policies and some debts were assigned to
the bank. The property at Dingwall was valued at
10,0001., and instructions were given to realize it.
Some evidence was here given to negative the exis-
tence of the debts assigned, but the proof failed.
Mr. Anderson, the bill-clerk, was then examined by
Mr. Welsbv, and stated.—When I entered the office in
April, 1853, I found promissory notes of Cameron's to
the amount of 9,600/. They at that time stood to
Cameron's debit in his discount account in the discount
ledger. I entered the particulars of the notes at the
end of my diary. They were continued on as current
obligations from one six months to another. The
same entry was made yearly till the end of the bank.
There were also two bills drawn by Cameron on Fin-
layson —one dated Oct. 28, 1852, at "50 days after
demand ;" and the other for 1,5001., dated Feb. 7,
1853, "payable six months after demand," - They all
formed part of Cameron's discount account. Teose
bills were continued down to the close of the bank.
Interest was charged upon them at 5 per cent. oa
each continuance. There was also a joint note by
Cameron and 0 wen for 446'. 9e. 3d., dated Oct. 19,
1852, payable six months after date. That also was
continued current down to the close of the bank. There
was another nose for 1981. 4s. 41, which was also
continued, of which 100/. ss. 31. remained unpaid.
None of these went into "the Past Due Bills Book."
There was also a note of the 18th July, 1853, for
1,009/., payable "three months after demand." In
October that was placed to the debit of Cameron's dis-
count account, and to the credit of his drawing account.
The total was 10,6001. At the beginning of 1854 Mourn
commenced with the discount account. The "green
ledger" was begun in the beginning of 1854, There
were three acceuots of Cameron's in that book—the
discount account, the drawing acceunt, and the cash
credit. All the notes and bills appeared in the new
discount account. Whie Cameron was away ill
Crawford got these bills and notes from me for
the purpose of their being compared with the diary.
He returned there the same day. On the 26th of
June, 1855, I received a note for 1,000/. from Crawford,
and he said' I was to debit it to Cameron's discount
account. It was also entered in the diary and carried
on as a current obl'gation.
Mr. Seymour having made an observation, which
induced Sir F. Thesiger to express the hope that they
would be still able to carry on the proceedings in an
amicable manner.

Mr. James observed that it was getting so late that
it would be impossible to be amicable much longer.
(Loud laughter.)
After the reatling of some further correspondence the
Court rose a little before 6 o'clock, apparently to the
great relief of everybody engaged.
It is a curious circumstance that, although this trial
has hitherto been of the dullest and most unintere.ting
choracter, the coutt 13as been crowded every day with
visitors, and the staircase has been thronged with
persons waiting for admission.

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ter :—Cure 5,4
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