The Sun.
London, England, 1857-03-26 00:00:00

extent of 5,9001. maturing ; that he was under
obligation to meet demands, part of which would
be compromised to the extent of 1,5001. or more,
and at that time there existed an over-draught
upon the account—my memorandum states of
1,8001.,—making together 9,2001., against which he
placed these credits. You asked me why we let him
go on. He said there were the proceeds of cargoes
of wood in his brokers' hands to the amount of
5,995/. ; that there was due from the Halifax house
with which he had commercial transactions 4,0001.;
that he held shares in the bank, and other securi-
ties, together equal to 2,000/. ; that he had cash at
this time at the London and Joint-Stock, and at our
bank, 8001., in all, 16,3901., having actually given
us a return of five large debts °wine to him from
estates which had then become bankrupt, including
Oxley's failure, and Kirk and Furness, together
amounting to about 7,0001., the dividends upon
which he reckoned to be quite equal to 2,2001., or
thereabouts, and appearing in the schedule of cre-
dits to the extent of 18,527/. Besides that 18,000/.
those 5,000/. of the Liverpool bonds were running,
so that it did appear, unless there was some great
fallacy in the figures, that the bank was covered
with a very large margin—by 5,277/. The doubt-
ful figures which he reported to us in these credits
were the 5,2901. given in as the balance of proceeds
of the cargoes of wood. He said brokers had
charged for interest upon advances and other
charges, such as dockage expenses, which would
very much impair that figure, but he said in his
opinion there must be between 2,0001. and 3,000/.
coming to him. That would still have left a large
margin to cover those advances, and under those cir-
cumstances, not wishing to expose the bank to the
unpleasantness of the failure, and the unnecessary
failure, as we believed, of one of our number, the
bank allowed him to act upon the account to a
certain extent, always feeling that they had a mar-
gin of many thousands in their favour. If you ask
me whether these securities were then of a tangible
character, such as we could put our hands upon, I
should say they were not, because the dividends on
the bankrupt's estates were coming in to the extent
of 2,000/. His dividend of the Halifax house had
not been realised. His bank stock remained, and
though now you may say we had no right to look
upon it as a security, we did look upon it as a secu-
rity. That is my general answer to the question.
How could I, in my position, see the account accru-
ing from the date I took the chair ? My answer is
that we believed the bank was amply secured by the
credits he showed in the statement of his affairs.
Mr. Linklater—Why delude yourself with such
language as "having security ?" Does it amount to
more than this—that Mr. Cochrane represented
himself to be a solvent men ?
Mr. Esdaile—Yes, very farabove insolvent. They
held among other securities a number of shares in
the bank. (Laughter.) • The bank at that time began
to experience inconvenience. This was in Sept.,
1855. Their funds were becoming very short. They
relaxed their discounts, but be was not aware whe-
ther the discounts to the directors were restricted.
A letter was here produced from Mr. H. D. Ma-
cleod, an officer of the bank, as addressed to Mr.
Cameron. It commenced, "Dear Mr. Manager,"
and acknowledged the receipt of a haunch of veni-
son, which had arrived safely. It also set for h that
he could make up 25,000/., but that that was their
last shot--(a laugh) -and that there was no pros-
pect of meeting their payments on the 13th. The
manager was much wanted again at the helm.
It appeared from the further examination of Mr.
Esdaile that, notwithstanding the board bad con-
siderable apprehensions in Oct., 1855, of being able
to go on, they issued a circular to the shareholders
stating theiri intention of opening a branch in Hol-
born and adding 2,000 to the existing number, of
shares. By issuing the shares they were endeavour-
ing to do all tney could to uphold the bank.
(Laughter.) The last report to the shareholders
was issued without a signature. Did not know who
drew the report. He must have bad a hand in it.
Mr. Cameron's absence from the general meeting
on the Ist of August last was, no doubt, at the in-
stance of the board of directors. (Sensation.) He
had written offering to come. The bank paid him
his salary up to the Ist of Sept. 1856, and then let
him go before the general meeting of the Ist of
August. He never treated the green ledger as a
mysterious book ; all he said was that he was not
cognisant of it. He durst say he heard it stated
that Cameron kept that book from the directors,
and that he alone had the key, but he might have
heard that statement made by Owen, and not con-
tradicted it. The book could not have been kept con-
cealed by Cameron, because it was open to obser-
vation. Would not like to swear that he did not
know before he came to the chair that Cameron had
a discount account at the bank. Mr. Cameron
might have discounted. his own bills. . •
Mr. Linklater—Did you allow him to keep the
accoun's as he pleas .d
Mr. Esdaile—He was the supreme executive of
the bank.
Mr. Linklafer—Supreme ! I thought you were
the governor 1
Mr. Esdaile—l am talking as executive.
Mr. Linklater—You do not mead to say he was
there for use, and you for ornament 7 (Laughter.)
Mr. Esdaile—lt was very much the case. (Re-
newed laughter.) On the 31st of May, 1856, a
special court was held, when it was determined
that Hugh fnnes Cameron be not continue 1 as
general manager beyond the let of September,
1856." It would have been an awkward circum-
stance to mention in the report that he hack been
" dismissed," and it will be found there that Ca-
meron had " resigned." In May, 1856, the Rev.
J. H. Gossett, a shareholder, required the bank to
find a purchaser for his shares, he being uneasy in
consequence of a communicatiou from an unknown
correspondent. The bank replied that he should
put them in the hands of his brokers. Mr. Gossett
did so. But being unable to find a purchaser, threat-
ened to call a meeting of shareholders and deposi-
tors. The directors gave directions that the shares
should be purchased. That would be with the
bank moneys. There was no entry in the books of
this transaction. Ob, no. The broker was my bro-
ther-in-law, and I recommended him not to put in
his name as the transferee of the shares. During
the whole period of the bank's career a sum of only
4,0001. odd was carried to the bad debt fund,
whereas the bad debts exceeded .150,000/., debts
which were ascertained to be bad appeared, not-
withstanding, through subsequent half-yearly ac-
counts as assets.
A report had been issued in which it was stated
that " the contributions of innumerable small rills
gradually swelling into a mighty head might be dif-
fused so as to fructify the surrounding space and
be a blessing to the givers and receivers." This
simile applied to the blessing to be derived from
the Royal British Bank. (laughter.) The report
concluded--
" That the benefits of the institution to the commu-
nity would as much exceed those of even savings-banks
os did the gains of the good and faithful servant those
of him who kept his pound laid up in a napkin."
(Loud laughter.)
On 'further examination Mr. Esdaile said—lt
was true, most true, that the best principles were
of
n littlytl,e and were practically, intelli-
gently, on ; these were the geavafilai unlessthfui ly
they
pro-
fessions of 1849. It was intended that the bank
should a capital of 500,0001., but
as
with
not respond they reduced the
the
e
commence
i blc woud
capital to 100,0001. They made every effort to get
public
out the shares. The Parliamentary expenses were
9,006/., including 1,000/. paid to the directors. He
(Mr. Esdaile) bad seen the bank through all its
hopes and all its difficulties—the difficulties first
and the hopes after. A Mr. Menzies was the se-
cretary of the bank at the commencement. He
did not know then that he was at that time in
Whitecross-street. Did not know of Mr. M'Gre-
gor's arrangement with the proprietor of the Hall
of Commerce to give him 500/. if he got the bank
to purchase the building. He remembered Menzies
going to the North with Alderman Kennedy to
look after shareholders ; they got plenty of pro-
mises ; the Newcastle people got their money back.
A letter was read from Menzies to Mullens, the
then solicitor of the bank, dated Burden's Hotel,
Whitecro,ss-street, June 21, 1849, requesting Mul-
lens to oLtain his release, that he might be enabled
to attend the next board meeting, and put all
things riight.
Mr. Lenklater here read a statement of the di-
rectors SE ,nt out to the world :
"That theßoyal British Bank being incorporated by
Royal charter, it possessed a privilege of doing local
business 'equal to any bank except the Bank of England.
The Loriis of her Illajesty's Privy Council of Trade had
already approved of the deed of constitution by increa,
ing the capital as the naturo of the business might re
quire.

(Sensation).
Mc. Mendes was described as "John Menzies,
Eq., Secretary," in the report. (Laughter.) • Mr.
Job AVGregor is indebted to the bank about
7,040/. (Mark of disapprobation.)
Mr. Ellis explained as to the discount account
whif Mr. Walton, deceas'd, had kept at the bank,
the.t was beneficial to the bank. It was a mistake
thercefore to Fay that Mr. Walton was at any time
inalebted in a sum of 43,0001. on that account.
T': a bills discounted were all paid off. The letter
h had written to Mr. Cameron was p; nnel on a
sit & bed, Mr. Walton being then confined to tilt
house under a severe attack of illness.
His Honour said that it would be a very benefi-
cc al rule if direc!ora would not discount with their
o ,vn banks.

Mr. Linklater stated he bad concluded Mr. Es-
d wile's examination. It .was his intention to exa-
n tine Mr. Apsley Pellatt on Wednesday next., and
h e had prowitied to attend for that purpose.
Owing to the extreme length to which Mr. Es-
examination proceeded yesterday, it has been