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

deposit of 10Z. on each share. The share certificates were
lamed in June. On the 20th of that month Mr. Booth paid
up the remainder of the money, 2401., and received front
the bank certificates numbered from 2,642 to 2,647. It
wa3 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
nec Tsr. In this case, as in that, directors had fictitiously
raised the price of shares. He would prove that the direc-
tors wore 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, 1854, 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 of er wards from the Strand brauct. I asked
for them, and they gave them to me on occasions when
their bank meetings took place. I opened theaccount 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 I was told, induced me to
take new shares.

Mr. Mellish said he could not find the circular.
The witness said he had handed it to the solicitor.
Mr. Brown would insist on the production of the cir-
cular if the witness was to proceed.
The Cominis,ioner 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 be was a gentleman in the same office
with Mr. Nelson. That could not be received as evi-
dence.
Commissioner—lt is printed, I suppose.
Mr. Brown replied in the affirmative.
Mr. Msllish—Then let ns hare the minute-book of
March, 1E55.
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 ?
Search was made amid apile 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 I There are at least 20 cart loads.
Commissioner—l suppose he is registered as a share-
holder ?

Mr. Meilish—Oh, yes.
Mr. Brown—We must have the application for shares
as weil 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 150,0001. to the estate. The
question raised is novel and important.
Mr. Mellish—lf we are put to strict proof we mutt
give notice for the production of everything.
Mr. Brown—Yon 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-
duce 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 yon 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 atop here.
Let Mr. Field examine the company's papers and books,
and see whether be has a case or not. If you can't bring
home any fraud by one particular 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 books 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 wi I
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 forth that the money had been paid. I completed
the purchase of the shares before I obtained the certifi-
cates. 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, but 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—rs not this a copy of the report ?
Mr. Brown—.l3e 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
wa
My.
r. 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
oar 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 100,0001. 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 ns have Mr. Coleman to look
through the books.
Mr. Reed—No Mr. Coleman is tho 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—Hebas 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 be found.
Mr. Linklater—That is not the fact. Mr. Alderman
s,nnedy 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.ets.
Mr. Field—But where is Mr. Cameron—where is
Mr. Mac4regor
Commissioner—you 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—la;;i;rini;ou 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. If 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?