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

TEA' R )1' AL B ITISH BANK.

There was a meeting yesterday, at the Court of
Bankruptcy, before Mr. Commissioner Holroyd,
for the further examination of Mr. Edward Esdaile,
the late Governor of the Bank.
Mr. Linklater appeared for the assignees ; Mr.
Yenning for Mr. Esdaile ; Mr. Ellis watched the
case on behalf of the representatives of the late
Mr. Chas. Walton.
- Mr. Linklater, before proceeding with Mr. Es-
daile's examination, applied to the Commissioner
for the appointment of a further dividend sating in
this matter. He stated that there was now in hand
sufficient to pay a further dividend of 2s. 6d., or
at least 2s , in the pound. The assignees were very
desirous that an early sitting should be appointed.
Mr. Linklater then remarked that the general com-
promise wish the shareholders would, in all proba-
bility, be delayed in consequence of• Parliament
having risen so unexpectedly, but that the assignees
were proceeding with the composition, and it was
all-important that the creditors who had not
already done so should signify their acquiescence as
soon as possible.
The 17th of April next was accordingly appointed
for the dividend sitting.
Mr. Linklater said it was due to Mr. Paddison
to state that be had no.hing to do with the securi-
ties taken from Mr. Walton, and those taken from
Mr. H. Brown were taken with the perfect know-
ledge, on the part of the directors, of the irregu-
larity of such securities.
The Commi.sioner—lt is not a common practice
with bankers to take such securities.
Mr. Yenning—Among merchants I am told it is
exceedingly-common to do this thing upon honour.
Mr. Linklater—" More honoured in the breach
than in the observance."
Mr. Linklater stated he had teen asked by Mr.
Goddard, a professional man, a surgeon, to mention
publicly that he is not the Mr. Goddard who be-
came bankrupt by having taken shares in the Roya'
British Bank.
Mr. Paddison stated, as to' Mr. H. Brown's
securities, that he did advise the directors most ex-
plicitly about the consequence of the non-registra-
tion of the ships, pointing out that the consequence
wool 1 be that, for want of registration, it would
cerrainly be in the power of Mr. Humphrey Brown,
if he thought proper and chose to do ie.), either to
sell or to mortgage the ships and to destroy the
bank securities.
Mr. Paddison further said, respecting the state-
ment he had made as to the discussion about clause
71, at the instance of Mr. Humphrey Brown, m
March or April, 1855, that all the directors present
at that meeting appeared to be opposed to Mr.
Humphrey Brown's suggestion.
Mr. Esdaile here said—With reference to my evi-
dence given at the last examination on the subject of
Mr. Walton's account, I find that in consequence of
Mr. Linklater having brought to my mind circum-
stances which showed that I knew the state of that
account before I took the chair in February, 185, I
was led to infer that 1 must'have had access to the
green ledger before that date, contrary to my first
impress'on ; butfromfacts of which Mr. Paddison h
reminded me I believe I was right originally, and
that I mu-t have come at a knowledge of that ac-
count from some other source, and not from that
book (probably from Mr. Cameron's statement of it).
As to the case of Mr. Frederick Clark, and the ad-
vice given by the Attorney-General, I wish to state
that I am not aware that there was anything in that
case which the bank would have been made to ex-
p so, except the fact that it had a serious lock-up of
capital in a colliery in Wales, and this, I suppose,
was the meaning of the Attorney-General in his
advice to us. With respect to the general couduc
of myself and my brother directors', which Mr.
Linklater has so severely arraigned, it is only fair
to state that, except those directors who were debt-
ors to the bank, and who were but four in number
oat of 22, we had no personal interes sin carrying
on the bank. For myself I swear I was actuated
by a sincere desire to do the best for the sharehold-
ers. We were not taking money from the bank,
but were labouring incessantly to retrieve its
affairs. After I became governor, I was my-
self there almost daily and almost all day long ;
and, if the attempt to carry on the bank should
now appear absurd, it is surely due to us that the
public should consider that the present state of af-
fairs was not present to our minds. The disasters
which have occurred came upon us by degrees, and
the large deficiency now shown by Mr. Coleman is
to a considerable extent due to the loss which al-
ways attends realisation in bankruptcy. To the
last we were led to suppose that there were m‘iny
chances of extrication before us ; that the Welsh
works would have been leased at. a royalty or taken
up by a public company, so as to cover that outlay.
The loss by Mr. Brown we did not suppose could
be a heavy ono his oeouritips having been valued
at 00,0001. We were, moreover, in treaty with
another banking establishment, which was not un-
willing to treat, with us on the footing of giving us
a large capital sum for the good will of the business we
had acquired at so small cost, subject of course to in-
vestigation. We also looked forward to strengthen-
ing the bank by additional capital and by more influ-
en t iald i rectors ; nor did we consider it improbable that
under our altered circumstances and improved posi-
tion, some men of capital and enterprise might be in-
duced to ally themselves with the bank, who, with
a knowledge of its burdens, would likewise appre-
ciate and be influenced by its capacity of profitable
development. If our hopes in any of these respects
had been realised the failure of the bank would
have been averted. lam not anxious to show that
we were right in the course we took. We may have
been too often injudicious in our conduct under the
difficulties of our position ; but I am most anxious
that it should appear that our motives were correct,
and that we bad no other aim than to do our best
in the circumstances in which we were placed. It
is in this way that the matters upon which Mr.
Linklater has so strongly adverted are to be ex-
plained. When we presented the hal f-yearly account
—when we declared dividends—whsn we called in
or invited shareholders to join us with further capi-
tal, or did any of the other acts which have been
censured, we were governed by the same motive.
So long as the directors thought that the circum-
stances were not such as to warrant them in
closing the bank, so long it was absolutely neces-
sary—as every man of business w.ll kuow—t I pay
interest on the capital, and to uphold, as we enclea
voured to do, the credit of the bank with the pub-
Fe. I have been much pressed as to my opinion of
the insolvency of the bank at different periods. I
think it must be apparent to every, ody that up to
August, 1854, when I took up 10 of the new shares,
I could not have Many fear as to its stability and
ultimaee success, and, atterwards, surely my con-
tinue! connection with it is the best evidence of
the reliance I placed on the future. I joinel the
bank in its earliest stage with upright intentions ;
I have remained by it through its troubled career ;
and I have sunk with it, thauk God, with clean
hands—(hisses and other marks of disapprobation)
—and a conscience which exon rates me from one
act of intentional wrong.
Mr. Linklater—Mr. Esdaile is welcome to the
benfit of his explanation.
Mr. Esdaile was then examined by Mr. Linklater
as follows :—The promisory note fur 18,4571.,
da•ed the 28th of Jan., 1854, payable three months
afrer date, produced, igned by Mesas. bl‘Lear
Chandler, John Baring, J. C. Thompson, and
Humphrey Brown, is signed by me. 1 and three
of those persons were directors of the bauk. Ms.
Chandler was the auditor. Mr. Thompson was the
engineer of the Waudle Waterworks Company. That
note was given for money borrowed by me and my
co-directors, for the Wandle Waterworks Company,
of the Royal Brieish Bank. Tiro note was repaid
with interest. I think there is no balauca due ut on
I can have no conception that there is upwards
of 2,0001. due upon it. The Wandle Water works
Company had started the thing, I think, in 1852.
It niers!, have been that I and my co directors bor-
rowed in 1852 of the, Royal British Bank 15,655/.
for the Wandle Waterworks Company. I was, in
1852, a dirt ctor 9f the Wandle Wat-rworks Com-
pany. The money borrowed of the Royal British
Bank was for that company. It was upon ample
security, and was repaid with interest. If lam to
answer the question as to whether or not the
Wandle Waterworks Company went to Parliamsnt
in 1852 or 1853 fur au Act, I admit they did. The
Bill was opposed.
Mr. Yenning submitted that there was no reason
why the afftirs of the Wandle Waterworks Com-
pany should be para tel before the pueiie.
The Commissioner—Your anxiety gives the ap-
pearance that there is something in it.
Mr. Linklater—Mr. Yenning is your brother in-
law, I believe, Mr. Esdaile ?
Mr. Yenning—He is.
Mr. Linklater—That may account in some mea-
sure for the interruption.
Examination continued—l don t know how long
that Note for 15,0001. remained unpaid. When it
was tale nup it was paid with interest. lam not
quite sure Whether a portion of th it did not r emaiu
uP(1). the eccouut, and was inc )rporated in
18,("://- in the pre4oue b 11. I presume that note
was unpaid on Jan. 3, 1854. It was afterwards paid
with in' erest,-and the bank ran no risk in that ad-
vance. I cannot answer the
the only security the bankq hulesfir /5,6551. was my signal it re to tp ronlas
advance of
to whether
the CrTae
r
Jtn
theasc a
lik
f atancery for a return of the teni
bill was thrown out. Tit e B auk received
t'o;iiy ne
to
security for the note for 18,0001. I have not beene'
ahsepßiitta3t-aolißritish Bank.
connected w th 'any companies s
ue at I know of chat
Waterproofll,t rßaripecrk
pro-
duced Tile Company. z_
duced without my
Imawlaes unsoetoaf
Int heefhyuennrclaaomfoetshwet
authority. I was acquainted with