The Sun.
London, England, 1861-03-30 00:00:00

THE WESTERN BANK.

(From the 'Scotsman.)
There is now, we learn, a probability that the
litigations between the shareholders and the direc-
tors of the late Western Bank will be settled by a
compromise. It may at least be taken as certain
that matters have reached a position in which it
rests with the shareholders to say whether they
shall accept a certain sum now, or go on with
the litigations in the hope of obtaining a larger
sum hereafter. The question is at present before
the courts in two shapes, or at least in two dis-
tinct actions—one by the liquidators on behalf
of the whole body of shareholders, against
the whole directors of the Bank in office at any
time from 1847 down to the stoppage ; and the
other Messrs. Inglis and Landale, and others of the
shareholders who purchased subsequent to the issue
of the directors' report of May, 1857, against the
directors in office at that date. On the part of the
directors of 1857—aimed at by thb special action of
the purchasers in that year, as well as by the general
action of the liquidators—an offer of a certain sum
for an entire release was made a few days ago.
That offer was declined. Subsequently, however,
a suggestion came from a quarter assumed to be
authorised by those parties, that the liquidators
should name a sum which they could recommend
the shareholders to accept. It is understood that
the liquidators thereupon stated that if the directors
of 1857, and all the directors from 1847, with the
exception of Messrs. William and James Baird (who
do not join in any present proposals), should
together offer to pay the sum of £200,000 in full of
all claims against them, both by individual share-
holders and by the general body, the liquidators
would recommend such offer to be accepted, We
do not know in what proportions this sum has been
proposed to be assessed on the different directors
who held office at periods of various date and dura-
tion ; but we assume that that was left for settle-
ment among themselves—and that it has been
settled. Reasons have been given to the liquidators
and the committee of shareholders to believe that
the proposed terms will be accepted by the direc-
tors. The success of the proposed compromise
depends very much upon the parties represented in
the actions carried on in names of Messrs. Inglis
and Landale assenting to the terms suggested by
the liquidators. The case of these parties is in some
respects different, and somewhat more simple than
those of the shareholders who purchased at various
earlier periods ; and in consideration of that and
of other circumstances, the liquidators recommend
that this class should have a certain prefer-
ence. The recommendation, we learn, is to the effect
that the purchasers after the issue of the report of
1857 should receive £2O per share, in addition to
the dividend common to all the shareholders. The
recommendation includes those purchasers of 1857
who are not parties in the actions carried on in
names of Messrs. Inglis and Landale ; but it is in-
tended that these litigants shall also have their
expenses paid, and an enhanced preference in re-
spect of the diligence in the two cases. If the ar-
rangement be adopted, every ordinary shareholder
e., every shareholder who purchased previous to
the report of 1857) will probably receive at least
£5O per share, of which £25 will be available im-
mediately. In addition to this, there is, of course,
the chance or certainty of whatever sum may be
obtained from Messrs. William and James Baird ;
and we believe that opinions have been obtained
from the highest counsel of the English as well as
of the Scotch bar, that a compromise made with
any one or more of the directors in no way bars or
prejudices the claim against any of the others. The
loss of the shareholders—reckoning the premium
at which most of the purchases were made, as well
as the par price, and the calls since the stoppage—
is estimated, we believe, to average about £2OO per
share.

The following composed the board of directors in
1857 :—Messrs. T. D. Douglas, J. Dunlop, G.
Burns, T. M'Call, T. D. Graham. T. G. Buchanan.
The other directors from 1847 (including the two
Messrs. Baird) are Messrs. J. Burns, S. Bogle (ju-
dicial factor for), J. Douglas (deceased, trustees of),
A. Glasgow and A. Smith. These, of course, are
gentlemen who offer to pay £200,000. It is under-
stood that they have already lost £150,000 in their
capacity of shareholders.
These proposals, if entertained by the individual
litigants whose case is ready for trial, we presume,
will be taken into consideration by the shareholders
at an early meeting ; and the result, we should
suppose, could not be confidently predicted.
On the one hand the shareholders will be
actuated by the very just conviction that
they are entitled in the circumstances to all they can
possibly obtain, heightened, it may be, by some not
unnatural feeling of resentment ; and on the other
hand, they will have to consider that "money down"
is very attractive, that law is proverbially uncer-
tain, and above all, that, while litigations are sure

to be protracted, no man with such responsibilities
hanging over him is likely to accumulate riches
against the evil day, but, besides the chance of
growing poorer actually, is pretty certain to grow
poorer ostensibly and for all purposes available to
creditors.