The Sun.
London, England, 1857-09-24 00:00:00

THE ROYAL BRITISH BANK.'

COURT OF BANKRUPTCY.
(Before Mr. Commissioner Holroyd.)
Tll ROYAL BRITISH BANS-IfEETING FOIL .TIIE LAST

EXAMINATION OF THE DIRECTORS.
Yesterday was appointed for the last examination of
;he directors representing the Royal British Bank under

the bankruptcy.
Three balance-sheets have been filed, extending over
upwards of 800 folio pages.
TIN CLAM OF MR. MYERS.—Mr. Linklater, for the
assignees, said, that a few days since the Court was
applied to with respect to a claim made by Mr. Myers,
the builder, and it was submitted that the matter should

be submitted to reference, but the assignees considered
it was not so much a matter of account as law, and he
therefore had to ask his Honour to fix a day for discus-

sing the case.
His Honour appointed the 28th of October for that
purpose.
Mr. Linklater said this was the meeting for the last
meeting, and two balance-sheets had been filed, but so
recently that an adjournment was absolutely necessary
in order that the assignees might have an opportunity

of examining the accounto. One balance was prepared
by Mr. Coleman ; one by Mr. Stapleton individually ;
another on behalf of Mr. Alderman Kennely, Mr. Vail-

lant, Mr. Esdaile and M‘Leod ; and one by Messrs.
Cooper and Stevens on the part of Messrs. Gillott,
Hurst, and Butt, who became directors on the sth of
August, before the bankruptcy. The Court had directed
that the balance-sheet should be filed on or before the

lst of Sept., but the first was not filed until the 12th
Lust, and that by Messrs. Cooper and Stevens only this

morning.
Mr. Sleigh, Mr. Mason, and Mr. Fresh&ld, who
appeared for the directors, assented to the adjournment.
Mr. LINKLA.TBR then said—lt was originally proposed
that a dividend sitting should be appointed for this day.
When here on the 24th of June last the assignees thought

they might make almost a final dividend by this time ;
we were then in expectation of the termination of pro-

ceediuge which were taken against gentlemen (whose
names I need not mention) for the sum of 16,0001. They,
however, declined to try the question between the as-

signees and themselves at law and applied to the Court o
Chancery to stay the action. That was on the eve of the
long vacation, and upon the defendants giving what was
equivalent to judgment in the action, and undertaking to
bring into court 16,0001., the action was stayed. That
money has been paid to the Court of Chancery, and will
unfortunately be locked up till the month of November.
The question lies in a very narrow compass, and by the
end ot November it will no doubt be terminated in favour
of the assignees. Some delay was also caused with refer-
ence to one of Mr. H. Brown's ships, the freight of which
we expected to realise on her arrival. She wns however,
attached at Hamburg by creditors whose debts Mr. H.
Brown ought himself to have paid. Proceedings were
taken in the Hamburg Courts, and within the last few
days the Court of Appeal has decided in-favour of the as-
signees. Another cause of delay has been the inability
of the assignees to dispose of their property at the Wel-h
mines, although they have made every effort to do so.
An item of 125,0001. appears upon the balance sheet
for expenditure upon those mines, and interest upon the
outlay. The assignees now propose themselves to
visit the mines, to see what, if anything, can be done
with the landlord ; and if any of the creditors can make
any suggestion to the assignees that will enable them to
dispose of the property, the assignees will gladly attend
to it. But for these delays we should hare been in a
position to declare almost a final dividend. It has been
said that the assignees should give information to the
creditors from time to time respecting the realisation of
the estate. It should be borne in mind, however, that
assignees have no opportunity of conveying information
to the public or the creditors except upon occasions like
the present, when by the kind indulgence of the Court
they avail themselves of the opportunity of communi-
cating intelligence respecting the estate. Much has been
said relative to the Act of Parliament to which Mr.
Mason bas referred. The assignees and all interested in
the case felt that if some legislative enactment could be
obtained giving the assignees, as the representatives of
the creditors, power to discharge individual shareholders
upon payment of a reasonable amount, or to dis-
charge the whole body of shareholders by some
general compromise which should have the ascent of
an overwhelming majority of creditors, it would be of
great advantage to the creditors. The assignees, there-
fore, took very great pains for the purpose, and suc-
ceeded in obtaining a measurer which received the Royal
assent on the 25th of last month. The rights of indivi-
dual creditors are interfered with by that Act only fer
the general good, and instead of the shareholders being
at the mercy of individual creditors an opportunity is
now afforded them of aiding in a general compromise
which will satisfy the creditors generally. Failing in
that, the assignees have the power_ to compromise with
any shareholder, but in doing so ttey would have regard
to his mesas. Now, sir, the creditors generally are not
injured by this Act of Parliament. Each has a perfect
right to go on against any shareholder, first applying to
the Court for leave to proceed, and unless that share-
holder gives security to the satisfaction of the Court,
and also to the satisfaction of the assignees, as the repro-
' sentativen of the creditors, to such an amount as may in
that particular case be required for contribution to-
wards payment of all the debts, the creditors' hands
will no longer be tied at all. Very great efforts
are being made for the purpose of carrying out the ge-
neral compromise. A meeting of the creditors was held
at the Freemasons' Tavern (which was very numerously
attended) on the 4th March last. A very large majority
of the creditors assented to the terms that were then
suggested. The assignees required payment in the whole
of 16e. 6d. in the pound. There will, we treat, be 10s.
in the pound under the bankruptcy, and a further con-
tribution from the shareholders of 6s. 6d. in the pound.
Shortly after that meeting the dissolution of Parliament
took place, and it did not assemble till May. Not one
word of objection was raised in either house by any cre-
ditor of the Royal British Bank, or any one in connexion
with it, to the passing of the Act of Parliament. It did
unfortunately happen that the Tipperary Bank case had
excited some opposition on a former occasion, and the
Bill was delayed until the termination of an appeal in
that case then pending in the House of Lords.
The Bill did not receive the Royal Assent before the
25th of August. A meeting of many of the solicit-
ors interested for influential shareholders had
been previously called. I attended that meeting as re-
presenting the assignees, as did also the official manager,
who is assisting to carry out this compromise. A circular
was issued, announcing to the shareholders abroad that
the Bill was expected shortly to become law, and in-
viting them to return to this country for the purpose of
contributing to the common fund. Many have since re-
turned, and there can be no question that their safety
&pinch; upon their willingness to contribute so as to put
a stop to further proceedings. The solicitors who re-
present the shareholders are (xerting themselves, and
are most anxious to bring about that result. Should a
general compromise not take place the opportunity will
be afforded to the assignees (which undoubtedly they
will exercise) of compromising with individual share-
heldere, and the others will be liable to the attacks
of creditors. I have felt it due to the assignees to
make these observations, because s me misconcep-
tion has arisen as to the course the assignees have
pursued. The assignees, who are themselves large
creditors, can have but one interest in oommon with
those who have appointed them. They have desired to
get what they can from the shareholders, and the ques-
tion iet., which is the best course to adopt ? There has
been subscribed a fund of 10,0001. by the shareholders
as a guarantee fund. That fund will be forfeited to the
creditors if the compromise should not by carried out,
and unless within the next month that object shall be
effected the assignees will give no further time, but will
proceed to deal with individual shareholders,' leaving
those who will not contribute exposed to the proceedings
of creditors. It will be rather out of place to make any
observations with reference to the prosecutions ; but one
word on that subject in consequence ot the misconcep-
tion that appears to have arisen. It seems to have been
supposed that the ex officio informations filed by the At-
torney-General embraced almost all those matters of
complaint to which your Honour's judgment referred.
That, however, is not so. At present there has been
no information with reference to the circumstance
under which the orignal charter was obtained, nor
to the misrepresentations to the Board of Trade for
the purpose of obtaining the supplemental charter.
The question raised is that in which the public are more
materially interested—viz., whether or not the directors
did conspire to defraud the shareholders and creditors
and the public by false accounts and representations
known to be untrue. That is the simple question
which will have to be tried in the month of December
if the labour necessary in getting up the cases can be
got through by that time.
Mr. Gillett, one of the directors, said—l think it is
those eight directors who signed the certificates to the
Board of Trade ought to be punished. They represented
that they had got 100,0001. capital paid up, and I and
many round me feel that if the charter had not been
falsely obtained this Lank would never have existed.
Mr. LAWRANCS said—The right of individual credi-
tors to proceed for the recovery of their debts must
be somewhat controlled by the statute, and each
application against a shareholder would depend on
is own peculiar circumstances. No such bill could
have been passed but for the aid of the assignees, and
great benefit is likely to result from it, while, at the
same time a great scandal will have been removed
from the profession to which my friend and I belong.
Proceedings have been taken which have resulted in
ruin to many shareholders, and the selyeut shareholders
have been compelled to leave the count7y. A general
compromise, to be !auctioned by the assignees and by
the Court, would be m ;et advantageous as well for the
shareholders as the creditors, and, if carried out, the
16i. 6d. in the pound would be paid ; but there can be
no question that the proceedings by individual creditors
have very seriously prejudiced that compromise. No
time should be lost on the part of the shareholders in
determining at once whether thet compromise should be
carried out. In justice to the assignees, in justice to
the creditors and those shareholders who are willing to
contribute to the extent of their means, I am bound to
state, whatever may be the result either of com-
promise or the application for individual discharge of the
shareholder, that our best thanks are due to the assig-
nees for the pains they have taken. It was ()below
in the very first instance that in a remedial measure
of this kind no effort on the part of the share-
holders could be successful unless supported by the
assignees. The Bill was framed and carried with the