The Sun.
London, England, 1857-01-09 00:00:00

THE SUN, LONDON, FRIDAY EVENING, JANUARY 9l 1857,

1 ender-Lyne ; Sale, Worthington, and Shipman, Man-
-1 cheater.

Henry Duckworth, Glen Top Mill, Lancashire, cotton
manufacturer Jan. 21, and Feb. 11, at twelve, at the
Manchester District Court. Fraser, official assignee, Man-
chester ; Hargreaves and Knowles, Lancashire ; Cobbett
and Wheeler, Lancashire. _ _

Jimes Gilbert, contractor, Manchester, Jan. 20, and
Feb. 18, at twelve, at the Manchester District Court.
Pott, official assignee, Manchester; Heath, Manchester.
SCOTCH SEQUESTRATIONS.

John Forsyth, farmer, Cuthil, Linlithgowshire.
James Banks; glazier, Findlay-street, Glasgow.
Robert Mackinlay, grocer, St. Nicholas, Aberdeen.
John Gourlay, plumber, High-street, Dumfries.
James Drysdale, merchant, Renfield-street, Glasgow.
Robert Hinshaw, spirit dealer, Motherwell, Lanarkshire.
Watsons and Company, woollen drapers, Paisley.
Archibald Carmichael, farmer, at present prisoner in the
Jail of Dundee.
Thomas Naismith, carter, Woodside, Glasgow.

BANK OF
An Account pursuant to the Act
the Week ending on Saturd

ENGLAND.
7th and Bth Victoria, cap 32, for
ay the 3d day of Jas., 1857.
'AMIENT.

DIODE DEP.
A
Notes issturl ..... . • • 24,022,615

Government debt.... 11,015,100
Other securities...... 3,459,900
Gold coin and bullion 9,547,615
Silver bu11i0n........ -

424,022,615

£24,022,615
i. MARSIIALL, Chief Cashier.
1857.
PAIIThaNT.

Dated the Bth day of January,

BANKING DE
f.
Proprietors' capital .. 14,553,000
Rest 3,299,314
Public deposits (in-
cluding Exchequer,
Commissioners of
National Debt, Sav-
ing's Banks, and
Dividend Accocmts) 7,592,202
)thee deposits ...... 10,096,525
ieven Day and other
Bills ........ 786,524

Government securities
(includg.Dead Weight
Annuity) ........ 11,6 In ,151
Other securities...—. 19,295.3 ,8
Notes .... 4,797,315
Gold and silver coin.. 634,791

.36,327,565

£36,327,565
MARSHALL, Chief Cashier.
1857.

Dated the ath day of January, 11

COURSE OF EXCHANGE.--Trus DAY.
4.msterdam...... ••••.. 11 14 'Gibraltar ...... ••• • ••
Ditto, three months .. 11 17 1 Leghorn .............. 29 60
Rotterdam ............ 11 174' Genoa ...... i 5 773
Antwerp •• • • •••• .• •... 25 35 I Milan
Brussels 2.5 35 1 Venice................ -
Hamburgh,•..,,,...•. l3 6% Naples .. 43
Altona ................ Palermo ...... 129
Pari5...........25 25 Messina ... •
... 129%
Ditto, three months .. 25 65 1 Lisbon .......... • • 51%
Marseilles ............. 26 673 Oporto • • 51%
Bourdeaux ........ Rio Janeiro..... .••• • ..
Frankfort-on-Maine .• .. 118% Buenos Ayres.. • —
Berlin New York,6o days' sight
Vienna .... 10 43 Philadelphia . ......
Prie5te.......... • • .... 10 44 ! PAICES OP arriatcx, PEI OZ.
Petersburg ............ 37% Foreign Gold in Bars £3 17 9
Madrid 49 ' Portugal Gold Coin .. 0 0 0
Cadiz ........• • • ...... 49% f Mexican Dollars 0 5 1%
Barcelona I New Dollars ......0
0 0
Seville_ .... 1 Sliver in bars .. .0
5 1N

COLONIAL REPRESENTATIVE GOVERNMENT.

(Prom the Times.)

Till within a very few years no product of Eng-
land appeared so impossible to transport aoross
the seas as her responsible government. The great
Republic which has sprung from our American
colonies has developed our love of liberty,
our respect for individual rights, and our de-
ference to public opinion, but has never been
able to appropriate to herself the Eng-
lish executive. In every . State, as well as in
the Central Legislature, the chief magistrate is
elected for a definite period, and the Ministers of
the Federal Government are excluded from seats
in the Legislature, and may retain office, although
they and their opinions are in a decided minority.
The notion of a responsible Government holding
office so long as it retained the confidence of the
Legislative Assembly has for the first time in the
present year been brought into practice in the
Australian colonies. Educated hitherto under a
system of political tutelage, with one-third of their
members nominated by the Crown, and consisting
partly of officials whom no possible success of oppo-
sition could displace, the Australian Assemblies
had but little experience of the theory or practice
of constitutional government. How matters are
to proceed in Victoria we do not know, for the
elections are not yet concluded ; but we have had
a notable specimen of the turbulent infancy of re-
sponsible government in New South Wales. The
spring of last year was occupied in that colony by
an election of members to serve in the Lower House.
The electoral districts in the colony were said at
the time of passing the act under which it received
its constitution to have been framed with great
inequality, and from this cause, or from some
other of which our accounts do not inform us, par-
ties appear to have been nearly equally balanced.
The Governor, Sir Wm. Denison—whose conduct
throughout the whole of these complicated transac-
tions appears, so far as we hive the means of judg-
ing, to have been extremely judicious and impar-
tial—first devolved the task of forming a Go-
vernment of Mr. Thompson, the Colonial Secretary
under the old regime. On the failure of this gen-
tleman the duty was entrusted to Mr. Donaldson,
a merchant and settler, who succeeded, though
with great difficulty, in forming a Ministry. This
Government seems to have been formed of Con-
servative elements, and to have been suspected at
least of an intention to maintain the claims of the
present occupants of Crown lands in all their in-
tegrity. However, the Government obtained a
majority, but a majority so small that in August
last they resigned because they did not receive
that amount of support to which they believed
themselves entitled. Sir William Denison then
summoned to his Councils Mr. Cowper, the leader
of the Opposition, who formed a Government, but
was driven to select his Attorney-General from
among the solicitors instead of the bar, there be-
ing, as it appears, the same line of demarcation
between the two branches of the profession there
as in England. The bar, of course, were indignant
at such a slight, and personal objections seem to
have existed against the new Attorney-General of
more force than his belonging to the wrong branch
of the legal hierarchy. When this Ministry met
the House a vote of censure was moved upon them,
mainly levelled at this obnoxious Attorney-General
and carried by a majority of 2. Mr. Cowper and
his colleagues thereupon resigned, and the scale,
which had inclined for the moment in favour of the
Liberals, once more favoured the Conservatives. By
the last accounts a new Ministry was formed by
Mr. Parker, a gentleman whose fame, whatever
it may be, has not yet penetrated these northern
regions.

-We have been thus particular in narrating these
events, because, as it is of great importance to truth
that the difficulties of responsible government
should be extenuated, so it is of equal consequence
to the future well government of our colonies that
they should not be exaggerated or misrepresented.
It is very easy to raise out of these frequent, almost
theatrical, changes of Ministers and Ministries a
cry that the colonies are unfit for self-government.
For our own part we see nothing in what has hap-
pened in New South Wales which might not per-
fectly well have happened in England itself, always
excepting the sensitiveness of a Prime Minister
who resigns office while he has got a working
majority of two, and the nomination of Attorney-
General selected from the roll of solicitors. It is
nothing new in this country for parties to be nearly
balanced or Ministries to be shortlived. Nor is
the conflict, as has been represented, one merely for
place and power. There is a vast prize at stake—
no less than the. unsold lands of the colony, which
the one party wish to retain in the hands of the
present occupants at nominal rents, and the other
eo throw open to purchase. The minority claim to
represent the larger portion of the people of the
colony, and only to be outvoted by an unfair division
of the electoral districts. The struggle must con-
tinue till victory decides for one side or the
other; and instead of cavilling at its course, we
ought to rejoice that we have provided our colo-
nists with an arena on which to fight out their
local differences by argument and reason, instead
of having recourse to those explosions of fury and
discord which are apt to agitate those communities
for whose passions a similar safety-valve is not
provided.

- Responsible government can do great things, but
it cannot beforehand ascertain the relative force of
parties, nor discern without trial the fittest men to
conduct the government, nor remedy by its own
innate force the faulty distribution of electoral
power ; but there is no reason to doubt that in
Australia, as elsewhere, the effect of responsible
government, when time has been given it to attain
its full development, will prove the same blessing
that it has been in England and, in Canada. ;Vg
must—beware -of *copying_ the impatience tf fJnaPj
NThillneanimrpersons in -1848, ;who, because their.
new institutions did not at once regenerate nations
utterly unaccustomed to think and act for them-
selves, and restore a prosperity undermined by
centuries of misgovernment, believed their aspira-
tions after liberty a dream, and sank back into their
old lethargy. A remembrance of the struggles and
blunders, the crimes and absurdities, through
which England floundered into her present consti-
tution should lead us to look with tolerance and
with hope on our rising colonies, and teach us not
to be surprised above measure if they do not realise
fully in sit months a work which cost us as many
centuries.

LAW INTELLIGENCE.--Jan. 8.

BANKRUPTCY COURT.
(Before Mr. Commissioner Volroycl.)
IN RE THE ROYAL BRITISH BANK.

A private meeting was held to-day under the bank-
ruptcy, the object being to discuss a great number of
proofs on the part of shareholders, to prove as creditors
against the estate.
Mr. Mellish appeared in support of the claims ; and
Mr. Browne (instructed by Messrs. Linklater) for the
assignees, to oppose.
The following are some of the articles in the indenture
between the present directors and other subscribers and
trustees which are important:—
Clause 1. That the parties hereto associate is form a
company called the " British Bank," and promote to the
utmost its interests. They bind themselves to the articles
contained, which are to constitute the fundamental articles
of the company. •
Clause 2. The capital is to be 100,0001., in 1,000 shares
of 1001. each, to be increased if required, by creation of
new shares. The shares not subscribed for, and afterwards
created, to be allotted according to the discretion of the
court: The profits to be carried to the " reserved fund."
No one to hold more than 600 shares unless acquired, &c.
Clause 22. Directors appointed for present year and to
continue in office until Sept., 1850. Directors to nominate
others as co-directors for above period. One-fourth at the
least of the directors to retire at every annual general
meeting, those retiring to be chosen by the court, but al-
ways outof those who have been longest in office. The va-
cancies to be supplied by election of other shareholders.
No retiring director to be re-elected for at least 12 months.
Appointment of governor and deputy-governor and of the
chairman.
Clause 23. A director to hold ten shares in his own right;
no clerk, ke., of any other bank eligible as a director. The
circumstances rendering the office of director vacant. Of
relations, partners in trade, not more than one eligible for
director.
Clause 24. Directors to signify acceptance of office ; sub-
scribing declaration of secrecy tantamount to acceptance.
Failing the performance of both these, offices to be declared
vacant, and court to appoint another, who will stand in
all respects as the one superseded.
Clause 25. If conduct of director appears prejudicial to
company, court at special meeting by majority of three-
fourths may remove director. Shareholders at general or
extraordinary meeting by majorityof four-fifths in number
and value, present in person or proxy, may remove any
director.
Clause 29. Directors and others to faithfully discharge
their several duties, and observe secrecy on transactions of
the company with their customers, and on the state of ac-
counts with individuals. Director to pledge himself not to
make any revelation unless required to do so by the court
or meeting, or court of law.
Clause 30. Director or officer may resign on giving notice
to the general manager. In the case of the general manager
notice to be given to the court. Fourteen days' notice re-
quisite for a director, and three months for manager or
other offiper.
Clause 31. Appointment of trustees; grants of land,&o.,
made in their names. Appointment of William Cash and
others as present trustees, who may be removed by the
court. All purchases, &c., in names of trustees, to be under
control of the court ' • and all writings made in their name
to be countersigned by general manager. The court's di-
rections obligatory on the trustees.
Clause 32. Directors, trustees, and officers, held harmless
from expenses in any proceeding at law or equity, except
incurred by their own neglect ; such expense to be paid out
of the assets of the company, and have a priority over all
other claims, and be satisfied, in the first place, out of the
" reserved fund." Each director and officer answerable for
his own negligence only.
Clause 33. The court to give credit on cash accounts,
agreeably to the bye-laws made to regulate advances. No
proprietor entitled as a right to demand a cash or other
credit. No director or vote on any motion benefiting him-
self directly or indirectly, or become surety in any loan
transaction.
Clause 34. Power to invest capital not required for im-
mediate purposes.
Clause 36. Books to be kept containing true, fair, and
explicit entries of receipts, payments, transactions, deal-
ings, profits, gains, and losses ; also an account of the capi-
tal and moneys deposited with the company. Books to be
balanced monthly, and statement published, fully mani-
festing the actual position of the company. No proprietor,
unless a director or auditor, entitled to inspect the books,
Lie., except those produced at any general meeting; nor
any proprietor entitled in equity to a discovery thereof.
Clause 44. General meeting of proprietors to be held in.
September yearly. Directors to be then elected as pro-
vided. Fourteen days' notice specifying business of the
meeting. to be given. No other than the specified business
to be transacted.
Clause 45. Half yearly meeting may be held, notice and
business as in last clause. If no half yearly meeting be
held, a printed statement of the position of the company to
be forwarded to each proprietor. In September every
year a balance sheet, profit and loss account, and auditor's
report to be sent to every proprietor.
Clause 46. The court, or not less than nine proprietors
holding collectively2l shares, may require an extraordinary
meeting to be called by requisition to general manager,
stating object of meeting, who will appoint meeting within
21 days, giving 14 days' notice. Nothing transacted at
such meeting to be binding unless coArlned by a second
general meeting, which is convened by chairmen of the
first meeting upon notice of 14 days. Upon manager's re-
fusal to call meeting shareholders may call such meeting
upon 14 days' notice.
Clause 47. True balance sheet and report of profits and
accumulation of capital to be exhibited at every general
meeting.
Clause 48. The governor, deputy governor, or director to
be chairman of extraordinary nr general meeting. Chair-
man to have casting vote. Motion primarily decided by
show of hands. Four shareholders may demand a poll.
Proprietors entitled to vote as follow
Holders of 4 and less than 10 shares, one vote; 10 and
less than 20, two votes ; 20 and less than 50, three votes ;
50 and upwards, four votes; of above 100 shares, to have
one additional vote for every 50 shares above 100 held. No
shareholder to have more than fifteen votes ; and no one
possessing less than four to vote. General manager to fur-
nish form of proxy to applicants, kc.
Mr. Mellish appeared on behalf of a large body of new
shareholders in support of their claim to prove for money
had and received, for sums which had been received from
them by the Royal British Bank, on the ground that those
sums were obtained from them by fraud of directors and
managers of the bank—that those shareholders never dis-
covered the fraud until after the bank had stopped, but,
having discovered it, they said they were entitled to repu-
diate those shares, and to claim the sums paid by them as
money had and received. Thera was no doubt as to the
general proposition of law, that if a contract was procured
by fraudulent misrepresentation or by fraud, and money
was paid under it, as soon as the party who had paid that
money discovered the fraud, he had a right to elect to re-
cind that contract and recover the sum he had paid under
it in an action for money had and received. And, of course,
if entitled to recover in an action, he was equally entitled
ofto tphreovceasfeorwtahaetahimaount
:—Thein Rbaonykarluptcy. British
BTahe nkgewnaesrafolramtaetde
by a charter issued February 17, 049, and .by, that charter
th'e epplaif of t4lecebai.nekacwha,s
,fixedN,o,3o4..t.:lotoh,eooolpr. ,tifivhidaerdepinrtoo.
g6arapaittaedl, the shares which formed the original
.sle,olaotoedshhaerldea.aonfy of
the
that new
tio;
time
it w charter,
as
clear that the directors had no power, by the terms of
the original charter, to increase the capital of the bank
without obtaining another charter of the Crown for that
point of law,
bat they
2b3e,l4lBs'Bsll.arePriuoardetro.
might be a serious question ultimately, in
purpose. It
whether even the Crown had power to give
them the right to increase their capital, because the Joint-
Stock Bank Act, 7 and 8 Vic., c. 112, had certain enact-
ments regarding the capital of the company which had not
been complied with in this case. The fifth section ran
thus "Provided always, and be it enacted, that it shall not
be lawful for any such company to commence business
untilalltheshares have been subscribed for, and until the
deed of partnership shall have been executed personally,
or by some person duly authorised by warrant of attorney
to execute the same, on behalf of such holder or holders
being the holders of all the shares in the said business, and
until a sum of not less than one-half of the amount of each
share shall have been paid in respect of each such share :
And it shall not be lawful for the company to repay any
part of the sum so paid up without leave of the lords of
the committee." The learned counsel then proceeded to
argue that when the Crown issued the new charter, the
preliminaries required by this act were not complied with
—lO per cent. of the capital was not paid up—and it was
therefore a serious question whether the parties had be-
come shareholders at all. But the main groand was
fraudulent representation. It appeared from what had
been published in the newspapers that Mr. Coleman was
called in after the stoppage.

proCvoem.nii; ii lOner—Yomust state what you are going to

Mr. Mellish said he would call Mr. Coleman to prove the
facts which he had set forth in his report. He should also
rely on the evidence of the books of the bank. He pro-
posed to read the affidavits of several shareholders to show
that they have been imposed upon by the representations
of the directors of the bank.

Mr. Brown said it was his duty, on behalf of theassignee s
of the bank, to object to the course proposed. This was an
important inquiry, involving proofs againtt the estate for
no less a sum than 60,0001. ; and, as each case might etaud
upon different grounds, he must insist on viva voce exami-
nation in each case. He was not aware of any principle
on which the shareholders could be classified.

Mr. H. Mellish said he would begin with one case—that
of Mr. Edwin Booth, surgeon, of Great Queen•street,
Westminster.

His Honour said he thought the case ought to be con-
ducted as if they were at nisi prius trying an action for
money had and received.
Mr. Mellish was prepared to fallow that the directors had
knowingly published false representations with the view
of inducing parties to take shares, and that they were so
induced. This would be sufficient proof of the fraud.
He would prove that the directors had declared fictitious
dividends—not dividends out of profit, but out of capital,
and out of the deposits of the customers. He then read
the affidavit of Mr. Booth.
Mr. Brown objected to this, unless Mr. Booth was pre-
sent to be cross-examined.
- -

Mr. Mellish said the case of Booth was this. He kept
a drawing account at the Strand branch of the bank from
Oct., 1850, down to the stoppage. He perused the reports
periodically issued, especially one in Dec., 1854, stating
that the bank had 804,7931. on loan, on convertible secu-
rity, &c. Shortly after he called on the manager, and
was by him induced to take shares as an eligible invest-
ment. In March, 1855, he received a circular from the
directors announcing that a new charter had been granted,
and that 300,000/. would be added to the capital. He
would prove that the representations in that circular, as
to the amount of dividend, were false and fraudulent : at
the very time the report was issued the bank had lost the
whole of its subscribed eapitaland a large amount in addi-
tion ; that the dividend of 6 per cent. had been paid out
of capital and out of depositors' money, and that there
really was no reservefund ei 10,0031. in existence. The
directors, manager, solicitor, and chairman had bor-
rowed very large sums of the bank—over from 40,0001. to
71,0001., which in the aggregate exceeded the paid-up
capital, and which the parties well knew they were unable
to pay. And yet these were all treated as available assets,
as were the bad debts due from Mr Oliver, of Liverpool, and
from the holders of Welsh mines. It could not be doubted
that at the time this report was Issued they had lost so
much that they could not go on without this additional
capital, and that there was a scheme on the part of the di-
rectors to induce new shareholders to come in. They must
have known that if a fair and honest statement had been
made not a single penny of the new capital of 300,0001.
would have been subscribed. To obtain this capital it wile
necessary to misrepresent the affairs of the bank Mr.
Booth, after perusing this circular, applied for six new
shares, and had them allotted to him on March 17, paying a

deposit of 10/. on each share. The share certificates were
issued in June. On the 20th of that month Mr. Booth paid
up the remainder of the money, 2401., and received from
the bank certificates numbered from 2,642 to 2,647. It
was not until after the bank had stopped payment in Sep-
tember last that Mr. Booth became aware of the frauds
that had been practised on him; and on that ground he
repudiated his being a shareholder. If any dividend had
been received by. Mr. Booth, credit would be given for that
amount—the contract being treated as null. The falsity of
the reports and representations would be shown by the
books of the bank ; and if this were done the charge would
be proved against the whole of the directors who published
the reports. The learned gentleman then referred to the
case of Burnes and Pennell (2d House of Lords' Cases,
497), where it was held that if the shareholder had been
deluded by the representations of the directors, though not
made immediately or directly to him, he was entitled to
mover. In this case, as in that, directors had fictitiously
raised the price of shares. He would prove that the direc-
tors ware constantly endeavouring to induce all parties
with whom they came in contact, by these false and
fraudulent representations, to take the new shares.
After some discussion, during which it appeared that
Mr. Booth was unable to attend to-day to give evidence,
another new shareholder was called :
William Nelson—l am a clerk, residing at Canter-
bury Villas. I opened an account at the Royal British
Bank in March, 1354, and kept it there (at the Strand
branch) until the bank stopped. I saw reports and
balance-sheets of the bank. I saw them first when I
opened a deposit account there. I saw them first through
a friend, and afterwardsfrom the Strand branch. I asked
for them, and they gave them to me on occasions when
their bank meetings took place. I opened the account with
the Strand branch with a view of taking shares. It was
first mentioned to me by Mr. Davenport, a. gentleman
in the same office as myself. I received circulars, and
that, in connection with what was told, induced me to
take new shares.
Mr. Mellish said he could not Ind the circular.
The witness said be had handed it to the solicitor.
Mr. Brown would insist on the production of the cir.
cular if the witness was to proceed.
The Commissioner said there must be strict proof.
The witness said he appended the circular to the letter
which he sent to Mr. E. Field, or rather addressed to
Messrs. Sharpe, Field, and Jackson.
The circular was at length produced, and witness hav-
ing identified it said he received it from his friend Mr.
Davenport.
Mr. Brown said that all that was known of Mr. Da-
venport was that he was a gentleman in the same office
with Mr. Nelson. That could not be received as evi-
dence.
Commfssioner—lt is printed, I suppose.
Mr. Brown replied in the affirmative.
Mr. Mellish—Then let us have the minute-book of
March, 1855.
Mr. Brown—lt is not here.
Commissioner—Notice should have been given for the
production of all papers.
Mr. Linklater—l brought all the books in my office.
Commissioner—Where is the minute-book I
Search was made amid a pile of books and papers. It
was contended that it could not be expected that cartloads
of books and papers were to be imported from the office
of the official assignee to the court each time there was
a meeting.
A long pause was then made. It was evidently "war
to the knife," neither party conceding a single inch.
Mr. Brown alleged that the claim attempted to be
proved was altogether of a novel character.
Evidence resumed—l made application for the shares
in March, 1855, in the usual printed form. It was after
I received the circular.
Mr. Linklater—l brought everything I have got from
my office. Do you want all that are at the official as•
signee's office ? There are at least 20 cart loads.
Commissioner—l suppose he is registered as a share-
holder

Mr. Mellish—Oh, yes.
Mr. Brown—We must have the application for shares
as well as the answer—the letter of allotment. I will
lend no assistance in making out a claim of this kind. It
. will make a difference of 160,0001. to the estate. The
question raised is novel and important.
Mr. Mellish—lf we are put to strict proof we must
give notice for the production of everything.
Mr. Brown—You shall have any paper we have got.
Mr. Mellish—l wish the Court would make an order
that we should have access to the books, so that we might
get up our case. It is the duty of the assignees to pro-
dnce all books and papers.
Mr. Brown—My friend will have access in or out of
court to all the documents in our possession.
Mr. Mellish—Have you got those documents ?
Mr. Brown—We have an ocean of documents, and
you will see any you are entitled to see.
Mr. Mellish—Entitled to see ?
Mr. Brown—Yes; any to which you would be entitled
in an action at law.
Commissioner—Don't you think it is better they should
have access to all the papers of the bank ?
It was so arranged.
Witness went on to say that he had paid in the first
201., and secondly 801. on the shares.
Commissioner—Would it not be better to stop here.
Let Mr. Field examine the company's papers and books,
and see whether he has a case or not. If you can't bring
home any fraud by one partieular individual the remedy
might be in equity. It may turn out that the fraud was
committed on a body of people, but that a single case of
fraud upon an individual could not be made out. After
looking at the papers, Mr. Field will see whether he
ought to proceed in this court or in equity.
Mr. Linklater—We are to produce all books and pa-
pers that are needed to Mr. Field, but not to run riot
through the boeks of the bank.
Commissioner--What concerns each particular case.
Mr. Brown—Bat not on a voyage of discovery—law
and equity would stop that.
Mr. Mellish—Law and equity would allow us to go
through the books of the bank in order to make out our
case. We want to show that the representations of the
directors were false, and to show that through the books.
Mr. Brown—We will show whatever can prove that
the accounts published by the directors are false.
Mr. Mellish—We must ask for an order of the Court.
Commissioner—But you must not blow hot and cold
—that you are not a shareholder, and that you are.
Mr. Brown—l don't think there will be any difficulty.
. Mr. Linklater—There is a vast deal that it would be
incorrect and unadvisable to publish.
Mr. Field—We want all the papers which can go to
establish our claim.
Mr. Linklater—lf you want copies of them, you will
have them in about a century.
Commissioner—You had better come to some arrange-
ment as to the papers you want to see.
Witness produced two certificates_ of the
.shares, set-
ting birth that thelmoney had been paid. I. 'completeil
the purchase of the- shares before I obtained the certiff-..,
cateei That was after the Midsummer meeting of the
shareholders. I attended the meeting before I signed
the deed or paid the second instalment. I heard the
report of the directors of the bank read at the meeting,
and have got a copy of that report, bat not here—it is
at home.

Mr. Mellish—Surely you can produce that report. It
appeared in the newspapers of the day.
Mr. Brown—l know nothing of it.
Mr. Mellish—is not this a copy of the report
Mr. Brown—He never saw that report before, and
can't refresh his memory with that.
Mr. Mellish—These are the objections with which we
are met.

Mr. Brown—You must prove your casein the ordinary
way.

Mr. Mellish—You ought to admit all circulars, and
all printed reports.
Mr. Brown—Yes ; when I look at the minute-book,
and find they correspond, but not till then. You prefer
a charge of fraud against the directors.
Mr. Mellish—Everybody knows that half yearly
reports were made and published.
Mr. Brown—Show me in the usual way what was
done by the directors.
Mr. Mellish—What do you mean by the usual way
Mr. Brown—Show us by the minute-book that certain
circulars or reports were issued.
Mr. Mellish—You know the minute-book is not in
our custody.
Mr. Brown—Then you should give us proper notice
to produce it.
Mr. Field—l must say this refusal is unprecedented.
Mr. Brown—You ask us to give about 100,000/. from
the creditors to certain shareholders.
Mr. Mellish—We ask for justice and no more.
Mr. Brown—Which we are willing you should have.
Mr. Mellish—Let us have Mr. Coleman to look
through the books.
Mr. Reed—No ; Mr. Coleman is the accountant on
behalf of the directors.
Mr. Field—No ; Mr. Coleman is acting for the as-
signees... _ _ _

-Mr. Reed—Mr. Coleman did act for the directors, and
I object now to this acting against them.
Mr. Field—Then, some other accountant.
Mr. Linklater—Very well. But we have no control
over the clerks of the bank, who are under the control of
the official manager.
Commissioner—lt would be better if you would, with-
out going further, after inspecting the books of the
company, see if you can't make out a case.
Mr. Field—We must examine certain parties to get
at the bottom of this case. We will still, I have no
doubt, arrange the formal part.
Commissioner—You ought to knew what your wit.
nesses will prove, and so instruct your counsel that he
may know what facts he is to elicit.
Mr. Linklater—He has not made up his mind whether
or not.
Mr. Field—l want to know whether all these balance
sheets and reports are lies or not. I fear there are very
few of the directors to he found.
Mr. Linklater—That is not the fact. Mr. Alderman
Kennedy was in court this morning, and, what is more,
paid 501. per share ; and if everybody else did the same
there would be soon considerable as.et3.
Mr. Field—But where is Mr. Cameron—where is
Mr. Macgregor ?
Commissioner—Yun can have summonses for what-
ever witnesses you want to summon.
Mr. Field—We can appoint a day now.
Mr. Linklater—You will have weeks of work before
you can fix a day.
Mr. Field—l do not come to Mr. Linklater for in-
structions as to what I have to do.
Mr. Linklater—l am offering you all the facilities to
which you are entitled, and more. You can go to the
vaults. of the bank and stay there till you are ready to
come back again.
Mr. Field—We now clearly see what you are at, and
how we are to be treated.
Mr. Linklater—You are, and you shall be, treated
with justice and with probity. It you wish to name a
day now, or rather have one named, I will not oppose it;
but I think it very unadvisable to bring parties here
when you are not ready.
Commissioner—Will Monday week do ?

i .f

Mr. Field—We must have summonses for the bank
clerks.

Co►nmissioner--If you establish one case, you can
use the evidence in that for other cases of a similar kind.
Mr. Linklater—There is no objection whatever to that
course.

Commissioner—Let the meeting be fixed for Monday
week, at 11 o'clock.

CENTRAL CRIMINAL COURT, Jan. 8.

OLD COURT.

(Before Mr. Baron Martin and Mr. Justice Willes.)

John Compton, 23, a eenteel-looking young man, who
was described ae a shoemaker, but who, it appeared, was
a con-table in the D division of police, was indicted for
a burglary in the dwelling-house of John Lee Benham,
and stealing money to the amount of 36/., his property.
Mr. Bodkin and Mr. Clerk conducted the prosecution
on behalf of the Treasury ; the prisoner was defended
by Mr. Sleigh.
The following evidence was adduced :
Mr. John Lee Benham deposed that he carried on
the business of an ironmonger with two partners in
Wigmore-street, and a portion of the premises was in
Weibeck-street. In December last he was about to
have a house in Welbeck-street thrown into his pre-
mises, and labourers were engaged for that purpose on
the 10th of December, and a communication had been
opened between the new house and the premises that
were occupied by witness. Witness and his family
and servants went to bed at about 11 o'clock at night on
the 10th of December, and the premises were all at that
time properly secured. About 4 o'clock on the follow-
ing morning he was awoke by a ringing at his bell, and
he Lemke(' out of the window and saw a policeman, who
turned out to be the prisoner, and on his going down
stairs he found the Welbeck-street door open, and the
prisoner standing outside in his uniform. As he was
going down stairs he heard the prisoner say to another
policeman, who was with him, "Don't leave, or I'll
report you." Witness and the prisoner then went down
to the basement, and found a basket belonging to one of
the workmen on the floor, and he took possession of it,
and the prisoner carried the basket and went up an un-
finished staircase, which rather excited witness's suspi-
cion. This staircase communicated with the new pre-
mises in Welbeck-street. Witness and the prisoner
looked over the house, but he did not at the time discover
that anything had been stolen, and he made an observa-
tion to that effect to the prisoner, and he was about to
show the prisoner out, when he suggested that they
should look in a small counting-house, where there was
a desk that belonged to his son. Upon examining this
desk it had evidently been disturbed, but as witness was
nest at that time aware that any money was kept in it
he repeated that nothing was gone, and the prisoner then
called his attention to a drawer that had evidently been
broke* open, and also to two empty portasonnaies that
were lying on a chair. Witness did not direct the pri-
soner to any of the places that he examined, but he went
to them of his own accord. Witness thought at this
time that a small sum of money only had been taken
&urn the drawers, and he went with the prisoner to the
door, where the other policeman was waiting, and they
went away. lie afterwards ascertained that the pre-
mises had been entered by a window that abutted upon
a mews at the back of Welbeck-street.
Thomas Knight, a sergeant of the D division, said, on
the morning of the 11th Dec. he was engaged in look-
ing after the men on their beats, and he saw the prisoner
about one o'clock, and he saw nothing more of
him antil a few minutes before 3, when he asked him for
a penny for the widow of a late constable. The whole
of the force usually subscribed a penny in such cases.
The prisoner said he did not think he had a penny, but
he afterwards pulled oce from his coat pockets, and at
the same said he was not short of a shilling either, and
he pulled out a pocket-book, and witness saw that it
was full of large silver. Witness observed that he ha 1
plenty of money, and the prisoner asked him if he would
have half-a-crown to drink his health. Witness told
him he did not want his money, and was about to walk
away whet the prisoner dropped half-a-crown into his
pocket, and he took it out and threw it on the pavement,
and asked him why he took such a liberty with him as
to put the money into his pocket, and he ought to
report him for it ; he at the same time ordered the pri-
soner to leave his beat at 4 o'clock, and go to the station
on reserve, He saw the prisoner at Mr. Benham's house
about 4 o'clock, with his lamp on, and he repeated his
orders to go to the station, and he said he had foetid a
door open, and witness ordered him to arouse the
inmates and brine, the report to him at the station as
soon as he could.' The prisoner did not get to the
station till just before 5 o'clock, and he was in a very
confused and excited state, and, in answer to inquiries
witness made of him, he said that Mr. Berthana's house
had been entered, and that some drawers had been
broken open, and also a cashbox. He was very con-
fused, and appeared hardly able to stand ; and witness
took him before the inspector, to whom he repeated the
statement he had made before. Witness was thee
about to leave the station, and the prisoner followed
him. 113 went home, and about t o'clock, in conse-
quence of some information he received, he went, in
company with Inspector Mackrell, to the prisoner's
lodging in Little Weymouth-street. He was not
at home at the time, but he came in in about
five minutes, and Mr. Mackrell told him that a bur-
glary had been committed on Mr. ' Benham's, and
that he was suspected, and that he had come to
search the lodgings. The prisoner said he had no
money but what he worked hard for, and that he
and hie wife had a severe quarrel, and that he
took out all the money with him. The inspector was
about to search him, when the prisoner pulled out the
ceicketbook witness had seen during the night. There
was then el silver in it, but the prisoner said it con-
tained a 51. note, and a note for that amount was found
in it. Witness asked him what he had done with all the
silver he saw at 3 o'clock, and he said he had changed
it for 51. note at Mr. Carruthers' publichouse, in Buis-
trode-street. Ten shillings in silver were found in the
prisoner's trousers pocket, and witness saw Mr. Mack-
rell find three pawnbrokers' duplicates in the prisoner's
room. The prisoner was then taken to the police sta-
tion, and remained in the inspector's room the whole of
that day. On the following morning the prisoner was
taken to the police court, and as they were going along
he saw the wife of a constable looking out of a window,
, and he swung up his hands towards her and said, " All
serene, old girl, I'll get over this all right." Witness
said to him, " Don't be too sanguine, Compton ; there
is more against you than you expect." He replied,
" You have not found that gold, Knight ; that licked
you." The prisoner's pay was 18s. 7d. per week, and
I he also worked at his trade as a shoemaker, but his duty
1 as a policeman would not allow him to do much.
--Mr.-Sleigh,- at the close of the caieefor the prosecu-
tion, made a very.earneet address tot the jury on behalf
of the prisoner. •
Mr. Baron Martin having summed up the whole of
the evidence with great care and impartiality,
The jury r tired to consider their verdict, and in a
few minutes they returned into court and found the pri•
goner Guilty.
The learned Judge, in passing sentence, said he entirely
concurred in the verdict of the jury, and tie thought
there could be no doubt in the mind of any one who had
heard the evidence that the prisoner, and no other per-
eon had committed the burglary, and the fact that
he had never attempted to give any explanation
how he became possessed of the money that was seen
upon him appeared to him to be alone quite con-
clusive of the fact. Under what circumstances, then,
was the crime committed ? He was a man paid by
the public to protect them, and they were heavily
taxed to pay such men as he, and they had a right at
least to expect to receive that protection ; but when
they found such a man actually committing plunder on
those whom it was his duty to protect it was a very
heinous offence indeed and if the capital punishment had
not been abolished he would most assuredly have been
executed. The law looked upon the crime of burglary
under any circumstances with abhorence, and the hours
during which the offence could alone be committed—
namely, between 9 at night and 6in the morning—
showed that the intention of the law was to protect peo-
ple from being disturbed in their beds by acts of this de-
scription, and when the crime was committed by a person
in the position of tho prisoner it was of the most aggra-
vated character, and he therefore felt bound to inflict on
him the full punishment, which was that he be trans
ported for life.