The Sun.
London, England, 1857-04-29 00:00:00

COURT OF BANKRUPTCY.
(Before Mr. Cmuni,sioner Holroyd.)
THE ROYAL BRITISH BANK.

91 - 93
98 - 102
11 - 13
133 - 135
3 - 44

To-day was appointed for the examination of Mr.
Humphrey Brown, whose name has so prominently ap-
peared in connexion with the affairs of the above, of
which the bankrupt was a director. His examination
has been anxiously looked for, and the court was
106 108 I I crowded to excess.

Mr. Linklater appeared for the assignees, and Mr.
Brown wag assisted by Mr. Grevilie of the firm d
Greville an 4 Tucker.

12:3 13
23 —24
1102 104
par p
21
88 90

Mr. Wylde, one of the assignees addressed the court
in reply to some observations made at the last meeting,
in which it was stated that the prolongation of the
fnquiry was against the desire of the depositors. He
justified the course which they had 'pursued, and be
passed a high compliment on Mr. Linklater for his zeal
in prosecuting the inquiry.
His Honour briefly said that it was a duty imposed
upon the Court, and the assignees were bound to bring
the creditors before the Court.

* - # P
54 - 56

!1.31 - 134
8 - 9
9 - 9i

Mr. Brown said he was desirous of giving an expla-
nation of his connection with the bank. He became a
director in April, 1853, when, for the purpose of quali•
fying himself as a director, he took up ten shares, fur
which he gave his note of hand for 5001. He never paid
in any other way. That note was paid on the 17th Jan.,
1854. It was agree' by the directors that the directors
should take up ten other shares, and be bought them of
Mr. Cameron, giving a promissory note for 1,0001., which

311- 34
SG - 88

included the amount of the first note. The last note was
not paid by him. In March, 1853, he opened an
account by paying in 181. 4.., and on the
same day he borrowed 2,0001, and gave a security.
Oa June 10, 1853, he borrowed 4,0001. and 3,0001.
The day he joined the bank be got a bill or note die-.
counted for 2,0001. Could not say whether it was sub-
mitted to the finance committee. He was induced to
join by Mr. Mullens and Sir John Shepherd. He was
director of three other companies. A long examination
followed with reference to other loans and renewals of
bills. He did not thinkehe could answer such questions
of figures without their being put into writing. He
had not been an old friend of Mr. Cameron before he
joined the bank ; he had only known him for two or
three weeks. When be applied to Cameron for 4,000/.
on discount, be wrote to him to say that he would within
48 hours deposit deeds or other valuable security.
On the 16th of June, 1853, there was 3,0001. placed
to his credit, and for the two sums he gave a bill of sale
on the Allan Lindsay. They were renewals of the bills.
(A. letter was put in from Cameron, stating that the bill
of sale was only to be held as security, and not put in
force.) On the 12th September he borrowed 5,000/.
The opening account was only 18/. 45., and at its clos-
ing he was debited to the amount of 70,0001. The secu-
rity given for the 5,0001. was Gei the ship " Magdalena."
Soon after he joined the bank he found that the
Directors were in the habit of going to the counter
and discounting their own paper, and he com
plained of the practice, • and an order was made
prohibiting it for the future. He mortgaged the
two ships on the sth of February, 1854, to Mr.
Walton, together with the Hero, for 10,0001. In 1854
his drawing account on the 20th Nov. was 13,3181. 165.,
7d. On the 25th of May it was 2,368/. 4s. Bd. On that
day the bank discounted bills on Walton for 6,0001., but
that was bills renewable. On June 29, he borrowed
2,000/. on convertible securities, that also was a re-
newal. On Sept. 4,1854, the balance on the overdrawn
account was 7,0001., and discount account was 22,8441.
2s. 61. He considered that the mode in which the
accounts was unsound and calculated to mislead—he
WAR liable to the bank for 22,844/. 2s. 63.

A further examination wat gone into through a mass
of figures.
Mr. Brown complained of the course of examination
pursued, and declared that he was only anxious to afford
the fullest information in his power—it was not fair to
impute that he made any reservation.
The case was proceeding and not likely to be concluded
to-day.