The Sun.
London, England, 1859-10-22 00:00:00

EDINBURGE AND GLASGOW BANK.

A summons has just been issued against Sir Wm.
Johnston and others, as trustees and executors of
the manager, John Thomson, now deceased, of the
Edinburgh and Glasgow Bank, Edinburgh, con-
taining certain charges, the details of which extend •
to an immense number of pages, but the drift of
which may be gleaned from the following remarks
of the Nora British Daily Mail :
In the ease of " Cullen against Sir William John-
ston and others." there is what appears to be a most
respectable banking company, the " Edinburgh and
Glasgow,"carrying on business, as it was supposed,
in the ordinary manner, under the usual conditions,
with necessary officers, proper regulations, and all
that could he looked upon as desirable for the pur-
pose of securing success in business and publicity in
its accounts, so „far as it was thought desirable to
make them known for the information of the
shareholders; and yet almost from the first
.the real state of the affairs of the bank was
studiously concealed. Th 3 regular books did not
contain the real accounts. Private books, concealed
from all but the initiated few, held the secrets which,
if revealed, would have brought the whole concern
to the ground in 1850. It was provided by the
rules of the coinpaoy that when the roserve fun:l
and one-fout ill of the capital stock was lost the com-
pany should dissolve without the necessity of any
further procedure ; and yet, for above eight years
after this, the company was kept up by false re-
ports, although it was going from bag. to worse,
until in 1855 it fell to pieces, after having lost the
whole of its capital. It was stipulated for in the
laws that no shareholder should get credit to a
greater extent than half the amount of his stock
without security, and that all otlurs doing business
should find real or personal security; and yet, in
defiance of this, credit was given in the most reck-
less manner to people in the most doubtful circum-
stances, and some of the advances made to these
figured as good debts, even after the patties had
undergone sequestration, and the dividends on their
estates lrad been taken credit for. Bills were re-dis-
counted in London, loans to a large amount Were eon-
tract ed, and shares bought in for the purpose of keep-
ing up the market price, whilst troublesome share-
holders, who had threatened exposure, had their
shares bought at par, when their real value was
only equal to half the original price. During the
whole of this time flattering reports were issued !or
the purpose of gulling the shareholders and the
public, and. false abstracts of the accounts were
laid before the annual meeting. In fart, it would
be impassible to imagine anything more t horoughly
disgraceful, or meanly dishonca, as during the
whole of this time the private ledgers and other ac-
count books showed the real state of the affair, so
that it is not possible for any one of the parties im-
plicated to p.ead ignorance of the real condition of
the bank, so far as we are enabled to judge from a
perusal of the summons, and an examination of the
allegations contained in it. It is evident that Mr.
Cullen believed the false reports issued, and became
a vie; irn in consequence of his belief in them. He
bought, year after year, stuck to a considcrabit
tunount, and at the end, when, according to t
statement of the directors, the concern ought have
to e
been in an excellent. position, he found thew le
thing rotten, and every penny'
of his large invest-
uwsl;iicbhut\Niet
have been commenting makes kn
ment
_gone. Ail this the docutrenotwunp°
toll
others were led by
arne trap, and rao -tdlcirees :raontw inf°rlcnans us
into
docu-
ment can inform how much of rum and misery
has been EnCered in consequence of such wicked,
nrhear:3'
and fraudulent deceit.