The Sun.
London, England, 1861-01-12 00:00:00

TEE WESTERN BANK CASE.

Lord Kinloch, Judge Ordinary, has pronounced
an interlocutor, sustaining the general relevancy of
the action against the late directors of this bank
instituted by the liquidators, Referring to the alter-
native charge of knowing the state of affairs, or
failing to inquire, his lordship says :—" The direc-
tors had it specially commiated to them to take care
that the business of the bank was conducted safely;
in other words, that as far as possible transactions
should only be engaged in with persons of un-
doubted credit. . . It was plainly part of their
duty to adopt all means of information, reasonable
and practicable. How much should be held stiffi-
cient for their satisfaction—whether, for instance,
they were entitled to rest satisfied with the ma-
nager's statement—is a point not now to be decidod.
It is enough to hold that they were bound by the
nature of their office to make themselves aware, by
all reasonable and practicable means, of the
condition and circumstances of those with
whom they dealt. If this be so, it seems to
the Lord Ordinary to follow, that responsi-
bility rests on them equally, whether they knew
the facts, or failed to know them by neglect of
a duty of inquiry within their power to perform.
The case to be made out against the directors will
undoubtedly be a different and more difficult one
under the minor alternative than where actual
knowledge is proved. It will be necessary to
establish against each person charged, not only that
the means of information were within his power,
but these were such as his position made it incum-
bent on him to have recourse to. But the question
at present is not as to the measure of proof affecting
all or any of the offenders, but as to the extent of
relevancy. And it humbly appears to the Lord
Ordinary that a relevant case is presented by either
branch of the alternative." Adverting to the con-
clusions founded on non-communication of the fact
that one-fourth of the capital was lost, Lord Kin-
loch says,—" It seems to the Lord Ordinary very
plain, that if at the period of any annual balance
it was by any means made manifest to the directors
that ore-fourth of the capital had bean lost, it was
their imperative duty to report the fact to the
shareholders. If, knowing this fact, they repre-
sented to the shareholders that the capital was
intact and the company flourishing, they were
guilty of a fraudulent mis-statement. Simply to
conceal the fact was a violation of duty. Or, apply-
ing the former aaernative, which the Lord Ordi-
nary conceives to hold good on this branch of the
case also, if, having the fact readily within the
means of information which they were bound to
use, they failed to communicate it, there was still a
neglect of duty, which, involving perhaps less of
moral blame, equally exposed them to legal respon-
sibility. . . . it is difficult to resist the conclu-
sion, that a relevant case is here stated, whether as
laid on actual fraud, or on wrongful violation of
duty. The undue concealment is charged equally
on all the successive directors. Each, as he came
into office, is alleged to have known, or have been
in a position to know, the fact, and culpably to have
mis-stated or withheld it. The evidence may dis-
close great differences among them ; but the case, if
relevant against one, is 'stated equally against all,"

The weather at Worcester, which has been most
intense, appeared yesterday to be changing, a partial
thaw having set in. The Severn is still frozen up
above Worcester and all navigation stopped, and a
most remarkable spectacle has been presented
nightly during the week on the Worcester race-
course. As stated in The Sun of Tuesday, this large
meadow, which lies on the banks of the Severn,
was flooded with water at the end of last week,
which froze to a considerable thickness, and the
water receding from beneath it left the ice upon
the grass, a safe arena for the skaters and sliders.
These have mustered in great numbers, and thou-
sands of persons of both sexes have been disporting
themselves upon its surface by torchlight, Tar
barrels have been burnt on the ice, and every
variety of game indulged in. At the t:me wri''
lag (yesterday) the ice is covered with some thou-
sands of people. Here, as elsewhere, a great many
persons have been thrown out of employ by the
severity of the weather, builders, carpenters, gar-
deners, waternien, and other trades having Mellc
occupations suspended, and much distress is the
result. To alleviate this funds are being raised, and
coal and soup provided for the poor.
On Thursday night a gentle thaw set in at Liver-
pool, which continued throughout the night and
during the whole of yesterday. All yesterday the
streets were in a filthy and uncomfortable condition
from the melting of the snow. In the morning
large placards were posted all over the town for,
men to clear away the ice and snow, for which
service 2s. per day were offered under authority of
the corporation. The ice on the canals has beenls'
inches thick for several days, past.
At Leeds and the neighbourhood yesterday
(Friday) a welcome charge took place in the,
weather. The frost, which for about three weeks
had been very severe, gave way to a gentle thaw,
which commenced early in the morning, and con-
tinued throughout the day. The wind was from
the south-west up to three o'clock in the afternoon,
but about that time it veered almost northerly, the
temperature grew colder, and no certain prediction
could be vanturr.d upon as to whether frost would
not again prevail in the evening.
A southerly -wind yesterday brought fresh
weather at Newcastle-upon-Tyne, and there was
every appearance that it the thaw continued the
ice in the Tyne would speedily break up. The
river engineer was clearing away the ice from the
front of f quay and the vessels that have been
icebound so long were likely to get awry to-day.
Scarcely any change has taken place in the state
of the weather in the eastern counties since the
notice in The Sun of Thursday, with the excep-
tion of dense fogs in the evening succeeding to
very heavy atmosphere during the day. The ther-
mometer has in no instance since Taursday that
we have beard of risen above freezing-point, nor
has it at the period of greatest severity indicated
more than 20 degrees of frost. All the rivers are
completely blocked, and trade at the ports of Mal-
den, Colchester, Ipswich, Woodbridge, and other
places, is almost suspended, the owners of vessels
preferring to lie at anchor rather than run any
risks even where a passage has been forced through
the ice. The consequence hes been a vety con-
siderable advance in the price of sea-borne coals,
thereby adding another evil to the e'ready multi-
plied sufferings of the poor. It is now found that large
bodies of agricultural labourers must seek relief in
Union houses, tenant farmers most reluctantly
parting with them in consequence of their inability
to follow any out-door occupation. New discove-
ries of cases of most intense suffering ere being
made daily, and already the Union houses are
rapidly filling.