The Sun.
London, England, 1857-03-12 00:00:00

developed at all, because we had not laid our railway down.
We bad not opened our slips, or extended our cutting, and
other things. The property was in a very different state.
Mr. Liuklater—l w,ll ask you until I get an answer. Do
you or do you not believe that you were making an honest
represeu6tion to the shareholders in telling them that the
Welsh mites were an available asset to the amount of
120,0001.1—1 can only make the same answer that I made
efore.

With that answer lam not satisfied.—l cannot give you
any other. I can only say that at that time we did not be-
lieve amongst ourselves that there would be a loss upon that
property. There is no question as to its lost power of deve-
lop ment

The Commissioner—You would have sold it for 53,000/. if
you could ?—But since that time we have done a good deal.
We made a very Large extra outlay upon it.
After 1554 ?—ln fact the principal outlay wad subsequent
to that periotl.
Subsequent to We expected sale of Messrs. Fuller and Co. ?
—Yes. Perhaps while we are upon that property it may not
be considered germane to the question to say, that the valve
of the zuineral property depended almost entirely upon the
railway communication we could make to it. Had we suc-
ceeded, which we fully anticipated doing, in introducing
our coke fairly to some of the leading railways, I think that
there were the elements of redemption on that account, and,
indeed, it is that feeling, Mr. Linklater, which makes me
hesitate to give you a strightforward answer, which you
think I am shirking, which is no such thing. I repeat it,
the coal was of great value for railway purposes, and had
we been in a position to have opened a free access to the
Great Western, the South Devon, or to the South Wales,
or even to run up to the Midland, such a new and important
feature would have been impressed upon the whole thing that
I do believe, and we believed up to that very time, within a
week of our stoppage, that there would be the chance of ulti-
mate realisation, and, therefore, you must not press me to
say whether I am prepared to admit that we were making an
honest statement.

In the balance-sheet ending the 30th of June, 1856, sub-
mitted to the shareholders on the Ist of August, did you not
represent the bank as solvent ? It is impossible to say we
were not deficient. We were sanguine of surmounting the dif-
ficulty by the extension of business and increase in capital.
Was you not aware that the whole of the subscribed capital
was lost ?--/ can't deny but that we were in jeopardy. I
can't say lest,' while there w's a chance of redeeming the
Welsh property anti realisieg Mr. Humphrey Brown's secu-
rity.

Mr. Linklater—How much out s—lt would depend on the
estimate at the time of the value of the securities.

Mr. Linklater several times asked if the account given in
Febru,ry, I 856, was true or false ; and Mr. Esdaile said he
could not deny that it conveyed an erroneous impression.
Did ru, Mr. Esdaile, as governor, sanction those accounts,
knowing them to be false ?—A long pause, and no answer.
Question repeated—No answer.

I again ask whether you did not know the accounts to be
false ?

Mr. Esdaile (warmly)—By this question you are charging
ree with an untruth, which is foreign to my nature. I will
not answer the question in that way.
Mr. Linklater —ln your anxiety to protect the sharehold-
ers, did you not give a statement which was Lase ?—lt was
not strictly justified by truth.
Mr. Linklater—l find in the accounts ending the 30th of
Juno the gross profits, after making allowance for bad debts,
interest on promissory notes, ac., amount to 15,0691. 153.
6d. Was tl e.e any profit ?—Yee.
Mr. Linkla er—Were not bad debts to 100,0001. taken cre-
dit for as as-ets I—You mean including advances to direc-
tors. Question repeated Adding reserved fund and in-
creased capital there was a large mat gin.
Mr. Linklater—Was not the representation untrue ? —lt
was certainly not borne out by the analysis.
Did you believe it made a sufficient reduction in the bP.d
debt ?—No ; but in the course of years we hoped to fine. it
sufficient.

The Commissioner—You wanted to throw the present
losses on future generations.
Mr. Linklater—ln the 810,000/., were not del:4s included
as assets which had been bad for years? —ThorJght as doubt-
ful. We received 13,000/. last year.
Mr. Linklater —But a large amount ?-7 es.
Mr. Linklater—Knowing them to be hs' d, did you not insert
them as good, intending they shoulc-.1 extend over future
years ?..7-.Yes.

Mr. Linklater—Did not the bad. r
150,0001. I—They must have. Ad doubtful debts exceed
You knew that in August, 18.514 1
—yes.
And in December and June. '1855 I—Partially.
Mr. Linklater—Then those statements made to the share-
holders were untrue ?—Yes, with some explanations.
Then you knew there &.Y iuld have been no division of pro-
fits in 1854, 1855, and, 7185 G ?—lf we are governed by the
principle of meeting e. very obligation that appeared on our
books.

Question repeated- yes.
At the time Mr, T...addison, the solicitor, wrote to the Board
of Trade for a cer cificate under the supplemental charter, did
you not know ou were in a state of hopeless insolvency ?
No ; only em),arracsment.
The Comm! ssioner—You could not have paid your way
without vie, ,r capital ?—No.
Mr. LinY.later You became governor in Juno, 1855, and
did you %hen believe all the capital to be lest ?—Mr. Esdaile :
Wa beli eyed we should have recovered Cameron's debt, and
that P_umphrey Brown would pay. In June, 1855, he did
not know all the capital was lost, but believed it to be com.
promised. Went on paying dividends after that. Believed
Alderman Keunedy was not aware of the position of the bank,
but could not say he did not kw ow it to be insolvent. The
new shares were issued at a premium.
After some further examination of a less important char"'
ter the sitting broke up.

THEATRE 111,WAL, LANE.—
Lef.ineri, Mr. E. T. Smith.
Acting Ms.nager„, Mr. C. Mathews. Stage Manager, Mr. 11,
Roxby. Scenic Artist, Mr. W. Beverley.
Last Se,ven Nights of the present Season.
The eminent 'Comedian, Mr. Charles Mathews, every evening,
and Mr. and Mrs. Keeley.
Last 7 Ni 7 Us of the Grand Christmas Pantomime, the
most niagnif,cent ever produced on the English stage.
THIS ET/ENING, her Majesty's Servants will perform the
Popular CAmedy,

I CURE FOR THE HEARTACHE.
Characters by Messrs. C. Mathews, Keeley, Vincent, Til-
brig. Templeton, Carter, Walton ; Mrs. Frank Matthews,
Miss Cleveland, and Miss %I. Oliver.
alter which will be produced

SEE, SAW, M.I4.IIGERY DAW ;
Or, harlequin Holiday, and. time Island of Ups and Downs.
The reduced prices as follows, varying throughout the
house to suit every one;—Galleries, lid. and is.; Second
Circle of Boxes, ls. fide, ; Pit, 2s. ; First Circle of Boxes,
2s. 6cl. ; Dress BOIV3, 3s. ; Stalls, is. ; Private Boxes,
10s. 6d., I'. Is., 11, lls. 6d., and 21. 2s.

ROY A L PRINCESS'S THEATRE.
T 117,3 EVENING, will be perforrued
Shakespere's trlgedy of
BIN( RICHARD THE SECOND.
King Rie/iard 11., Mr. C. K an ; Queen, Mrs, C. Kean.
Preemb.d by MUSIC BATH CHARMS.