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. Linklater—l will ask you until I get an answer. Do
you or do you not believe that you were making an honest
representation to the shareholders in telling them that the
Welsh mines were an available asset to the amount of
120,000/.1-1 can only make the same answer that I made
•fore.
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 dove;
lopruent.
The Commissioner—You would have sold it for 53,0001. if
you could ?—But since that time we have done a good deal.
We made a very large extra outlay upon it.
After 1854 I—ln fact the principal outlay was subsequent
to that period.
Subsequent to the 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 value
of the mineral 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 strightfor ward answer, which you
think I am shirki ag, 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 7 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 ?—I can't deny but that wo were in jeopardy. I
can't say lest, while there was a chance of redeeming the
Welsh property and realising Mr. Humphrey Brown's secu-
rity.
Mr. Linklater—How much out ?—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
February, 1856, was true or false ; and Mr. Esdaile said he
could not deny that it conveyed au erroneous impression.
Diva yLu, 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
Mc 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 false I—lt was
not strictly justified by truth.
Mr. Linklater—l find in the accounts ending the 30th of
June the gross profits, after making allowance for bad debts,
interest on promissory notes, tic., amount to 15,0691. 15s.
6d. Was these any profit ?—Yes.
Mr. LinklWer—Were not bad debts to 100,0001. taken cre-
dit for as assets ?—You mean including advancc:s to direc-
tors. Question repeated. Adding reserved fund and in-
creased capital there was a large margin.
Mr. Linklater—Was not the representation untrue I—lt
was certainly not borne out by the analysis.
Did you believe it made a sufficient reduction in the bad
debt I—No ; but in the course of years we hoped to find it
sufficient.
The Corntnissiener—You wanted to throw the present
losses on future generations.
Mr. Linklater—ln the 810,0001., were not debts included
as assets which had been bad for yearsl—Thought as doubt-
ful. We received 13,0001. last year.
Mr. Linklater —But a large amount ?—Yes.
Mr. Linklater—Knowing them to be bad, did you not insert
them as good, intending they should extend over future
yearsl—Yes.
Mr. Linklater—Did not the bad and doubtful debts exceed
150,0001. ?—They must have.
You knew that in August, 1854 I—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 should have been no division of pro-
fits in 1854, 1855, and 1856 ?—lf we are governed by the
principle of meeting every obligation that appeared on our
books.
Question repeated—Yes.
At the time Mr. Paddismr, the solicitor, wrote to the Board
of Trade for a certificate under the supplemental charter, did
you not know you were in a state of hopeless insolvency ?
No ; only embarrassment.
The Commissioner—You could' not have paid your way
without new capitall—No.
Mr. Linklater —Yon became governor in June, 1855, and
did you then believe all the capital to be lost ?—Mr. Esdaile :
We believed we should have recovered Cameron's debt, and
that Humphrey 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 Kennedy was not aware of the position of tile bank,
but could not say ha did not know it to bo insolvent. The
new shares were issued at a premium.
After some further examination of a less important charac-
ter the sitting broke up.

THEATRE ROYAL, D TICTRY LA..rsT E.—
Lesseo, Mr. E. T. Smith.
acting Msnager, Mr. C. Malliews. Stage Manager, Mr. P
B,oxlty. SCCIlie futist, Mr. W. Beverley.
Last Seven Nights of the present Season.
The eminent Comedian, Mr. Charl,sAfathews, every evening,

and Mr. and Mrs. Keeley.

Last 7 Nights of the Grand Christmas Pantomime, the
most magnificent ever produced on the English stage.
THIS EVENING, her Majesty's Servants will perform the
popular Comedy,