The Sun.
London, England, 1857-03-05 00:00:00

ROYAL BRITISH BANK.

Yesterday evening a general meeting of the depositors
was held at the Freemasons' Tavern, Great Queen-street,
for the purpose of obtaining their assent to the compro-
mise proposed by the shareholders, and which had been
approved by the committee of depositors. Resolutions
were also to be submitted to the meeting in favour of a
general Act of Perliament, by which the above object
might be effected.
The large room of the tavern was crowded by anxious
creditors of this notorious hank, and at 7 o'clock it was
proposed that Mr. James Wyld, the chairman of the com-
mittee, should take the chair. Some opposition was
evinced by a small body of persons, led on by a Mr.
Dwyer, who said that the chair ought not to be occu-
pied by any one who was already committed to a parti-
cular line of action, and he therefore proposed that Dr.
Wakley should preside. Much noise and confusion en- ,
sued, when Mr. Dwyer at length became so excited that
he was obliged to be ejected by force from the room.
After considerable delay, and after many irregular
speeches had been made, the meeting settled down
quietly, and on a show of hands Mr. Wyld was all but
unanimously called to the chair.
The CHAIRMAN said they were met to discuss an im-
portant question affecting their own interests, and he
hoped the proposition which was about to be submitted
to them would be discussed fairly and dispassionately.
It had been said that he was committed to a certain line
of conduct ; he was certainly committed to one line of
conduct, which was to obtain for the depositors of the
British Bank all that it was possible to obtain for them.
(Cheers.) Mr. Wyld then entered into an historical de-
tail of all the proceedings which had taken place from the
time of the failure of the bank on Sept. 3, 1856, to the
present day in the Court of Chancery, and in bankruptcy,
and with which our readers must be quite familiar.
After describing the contest between the assignees of
the creditors in bankruptcy and the official manager of
the shareholders in Chancery, and the fact that the as-
signees finally succeeded in getting possession of the
property, he proceeded to state that a dividend of ss. 6d.
in the pound was immediately declared, and that but for
the vexatious delays occasioned by the present disgraceful
state of the law a further dividend of 2s. or 3s. in the
pound would have been paid before this. He hoped that
would be done within the next two months, and if the
estate should turn out according to Mr. Colman's expec-
tations there was reason to believe that a further divi-
dend of Is. or 2s. might be realised, and then the estate
would, ho believed, be exhausted. But the committee
had not confined their exertions to the distribution of the
funds already obtained ; they had endeavoured to effect
an arrangement with the shareholders, which should be
beneficial to the depositors, and at the same time the
least onerous to the shareholders themselves. It was
found that some of the creditors were pursuing and ha-
rassing individual shareholders, driving theirs into the
Bankruptcy Court, and turning their wives and children
into the streets, not for the purpose merely, let it be re-
membered, of obtaining payment of the debts due, but
to defray enormous law expenses. Others of the share-
holders—the wealthiest and the most dishonest, not being
attached to trade, were flying across the water, and thus
putting the water between them and their creditors.
What, then, did the committee do ? They adopted that
course which he believed time would show was the wisest
for them to pursue—they expressed themselves ready to
accept from the shareholders as much as they could get.
No doubt they were entitled to 20e. in the pound, but in
what way were they to obtain it ? There were three lists
of shareholders—list A comprised the present sharehold-
ers, who were liable for all the debts of the Bank ; list B
consisted of new shareholders, who, under the advice of
an able lawyer, said, " We are 74 in number; we sub-
"scribed to this bank upon the strength of certain accounts
which were presented to us ; they were fraudulent ac-
counts, and we are neither morally nor legally liable to
pay you, and we shall contest inch by inch our liability."
The third list were those who were not on the present
list, but who had been shareholders during a period of
three years. It was under these circumstances that a
composition was proposed by the shareholders. A list
was handed to the committee with the amount of con-
tribution pieced opposite each shareholder's name.
That list had been carefully gone through, and, after
the best knowledge that could be acquired as to the
circumstances of every' shareholder, the committee
had _come Eto the conviction that the greater por-
tion of them, at all events, had contributed to the full
extent of their means. No doubt if the depositors in-
sisted upon it they might ultimately get their 20s. in the
pound; but though the demand might be just, yet it
might not be expedient to enforce it. The question they
had to consider was—was it worth their while to accept
a composition of 15s. in the pound? (Cries of "Yes,
yes !" and "No no f') The committee had not come
there to.press upon the depositors a foregone conclusion;
they were asking for their verdict—aye or no. It was
absurd to suppose that any compromise could be carried
out without the deliberate consent of a large majority of
the creditors, and before that consent would be of any
effect it must be given under their hand and seal. They
had already received ss. 6d. in the pound. A dividend
of 3s. would be paid in two months, and the solvent
shareholders proposed to pay 6s. 6d. in the pound, mak•
ing 15s. in the pound. For this 6s. 6d. he had required
a guarantee of 20,0091. hard cash, to be lodged in the
joint names of himself, Mr. Lawrence, and Mr. Field,
That 20,0001. was to be paid over to the official as-
signee, and he was to place it against the call of the
directors. The object was that, should, after all, this

arrangement fail, the estate would still be benefited

to the extent of that 20,0001. (Cheers.) At the
present more than 10,0001. of that sum was
subscribed, and the whole arrangement would
be completed before the end of April next. (Cheers.) It
had been said that if they accepted this proposition they
would deprive themselves of the beneit of the principle
of unlimited liability. They would do no such thing.
But, in truth, the principle of unlimited liability was the
principle of humbug. (Cheers and laughter.) If every
shareholder of the British Bank had been liable for every
1001. share to the extent of 5001. he would have paid the
money, and all the depositors would have received 20s.
in the pound ; but, as according to tke present law every
shareholder found himself liable to'the extent of 2,0001.
or 3,0001. for each 1001., he was obliged to shirk his lia-
bility by every means that the law enabled him to do.
The chairman here became suddenly hoarse, and was
obliged to resume his seat, which he did amid loud cheers.
Mr. R. TAYLOR, in moving the first resolution, said
that unhappily in this metropolis there were many petti-
foggingltvvyers, who worked mischief instead of good to
society. If these affairs had been intrusted to men of
business instead of to lawyers the whole matter would
have been settled long ago, and they would have known
the worst of it. He strongly recommended the deposi-
tors to accept the terms proposed, and movecrthe follow-
ing resolution
:---
"That, in the opinion of this meeting, it is essential
to the interests of the creditors of the Royal British Bank
that the proposed composition of 6s. Gd. per pound beyond
the assets in bankruptcy, should be accepted, and that
the shareholders should be required to pay the same by
instalments before April 30, next."
Mr. RAIN seconded the resolution.
Mr. WAKLEY, jun., then moved an amendment in
these terms :

" That this meeting is of opinion that it is not expe-
dient to accept any offer of a composition from the share-
helders of the Royal British Bank until an official state-
ment has been laid before the depositors of the actual
pecuniary resources of the shareholders, nor without re-
ceiving the most ample and satisfactory security for the
payment of composition, should aey offer from the share-
holders to that effect be accepted by this meeting."
He believed there were shareholders who were able to
ibh uote w.
pay much more than the sumo which it was proposed they
eonktnheew a t
board th
ofe par ese
publicnt momentcompany, a
staorueldhoeldonertr w
and who was driving his carriage in the streets of Lon-
don. (Cries of "Name !") He had been asked to prove
this ; but he called upon the C )urt of Bankruptcy to
prove it. These shareholders should be summoned be-
fore the commissioners, and an inquiry should be made
into their circumstances. This had been done in two or
three icstances by Mr. Linklater, but that gentleman
had applied to the commissioners to have inquiries car-
ried on in secret. How oould the creditors in that case
know what these men were worth I Why was Mr. Hum-
phrey Brown not examined ? (Cheers.) He was heard
in private because he could give some important infor-
mation. What was that important information ? Let
it be produced. All these examinations ought to be pro-
duced. Everything ought to be known. Mr. H. Brown
alleged that he did not owe the estate anything, but Mr.
Colman proved that he was indebted to the bank to the
amount of upwards of 75;000/. He repeated that if pro-
per means were taken the depositors could get 20s. in
the pound. (Cries of " How ?") He knew they could if
they could get hold of the shareholders who had the
money. (Laughter.) The question was whether they
would permit those men who had made over their pro-
perty to other persons, and who were evading their cre-
ditors by living on the other side of the water, to defraud
them, and whether they were to allow themselves to be
led into a compromise by whichithey would lose a fourth
of their just demands ? (Hear.)
Mr. KING seconded the amendment.
Mr. LINICLATER, having been loudly called for, then
addressed the meeting, and entered into a long statement
of the legs: steps which had been taken to get the assets
of the bank out of the hands of the directors and to place
them under the control of the assignees in bankruptcy.
That 'great organ of public opinion, the Times, la-
mented the destruction of the property of the creditors
by its being attempted to be placed in Chancery under
the administration of the directors themselves, over
whose conduct the creditors had no control whatever.
If it had not been for that disgraceful state of the law the
depositors Sever would have beard of him or of a bank-
ruptcy in this case. Ile disclaimed all interested motives
in the course he had pursued, and declared that he felt
he should have neglected a duty he owed to the public
if ho had sat by and suffered such vast property to be so
mismanaged, and he therefore obtained an adjudication
of bankruptcy against the bank. This gave the creditors
that which it was desirable they should possess—a power
of distribetion over their own property, equal rights, and
a protection of their property for the general good ; and
lastly, and that which be considered a paramount public
question, a right to inquire into the conduct of those
men who had brought a scandal and disgrace on the
banking interests of this country. From that hour the
whole proceedings of this bankruptcy had been under
the control of the committee of depositors. He was
quite consent to await the result of time to expose and
refute the egregious, scandalous and disgraceful misre-
presentations concerning this bankruptcy. (Loud cheers.)
The present was a question for finally putting an end to
the differences existing between 4,000 depositors and
280 shareholders ; and it was for that meeting to decide
whether this should be effected by the compromise pro-
posed or not. (Cheers.) The learned gentleman, in ad-
verting to what had been said by Mr. Wakley respecting
the conducting of the examinations of certain par ties be-
f,ire the commissioner in "secret," indignantly denied