The Sun.
London, England, 1850-01-24 00:00:00

cheque for 200/. in part liquidation foi this claim.
The security held by the Commercial Bank r;:alised
after deducting expenses, 3,2001., their claim being
4,2901. That was without reference to other accounts
and bills overdue. Thomas Webb had been lent 150/.

on Ms promissory note, and other sums, making a
total of 2861., for which Gibson said he held sufficient

security. Money had also been advanced to one James
Smith. Webb was a client of Gibson's, and a man

he (Sturt) would not trust with a shilling. Webb
and. Smith were particular friends of Gibson, and
Smith was one of the assignees. '
Mr. Gibson was to-day examined at considerable
length, and deposed that at the death of his father in
1840, he received upwards of 8,0001., and had also
received 2,7501. from his wife. The total amount of
property at one time in his passessiou was 14,1501.,
and after deducting all liabilities he had a net balance
of 9,824/. The property with the. Commercial B ink
cost 6,6661., and had realised 3,600/. Sturt had
come to him, at his office,-several times upon the sub-
ject of the bankrupt, and Mr. Cuttwell, the manager
of the Commercial Bank, had been spoken to alsa.
Paid 1,200/. into Mr. Sturt's :hand on the morning
of the 17th of February, 1844. He was told that
Sturt was a person to be trusted. Terms were made
between witness and Sturt on the road from the
Commercial Bank, that salaries were to be according
to profits, and' he (Sturt) was to furnish a balance-
sheet, showing profit and loss every three months,
and at the end of the year, if the result was not sat's-
factory, be should stop. Had made repeated appli-
cations since March, 1846, for a balance sheet, but
had not got one. Had often asked Mr. Sturt as to
whether the bank was paying, and his answer was in
the affirmative. It had been stated by Mr. Sturt that
money had been drawn from the bank over which he
had no control. He (Sturt) had been engaged in
litigation respecting an action of libel, and witness
told him that unless he gave it up the hank would
give them up. The letter oil which the libel was
founded was not written by I*. Gibson. The result
of that action was—damages,, 1001., the costs being
upwards of 5001. He had nothing to do with those
pioceedings. Money had been drawn out of the
Commercial Bank after office hours, and after notice
to the contrary was given. Another action of
trespass was brought against Mr. Sturt, and the
result was nominal damages of 1001. and costs 2001.,

which was paid out of the joint assets. The aggre-
gate amount of joint assets drawn out of the bank
by Sturt must be about 2,0001. for the purpose of
litigation. In an account furnished to Gibson's
brother, these costs were put down as assets. The
firm had no right to pay these costs, which affected
the stability of the bank, arid the bankrupt (Start)
upon being spoken to on the:subject, said that it was
nothing to witness. He was determined to close the
bank after an intimation from his brother. He then
gave notice to Start that he intended to dissolve the
partnership; that was in November, 1847. Upon
the insertion of the notice of dissolution in the
London Gazette, be deter Mined to call the creditors
together. The bank stopped on the 3d of Deceniber.
When witness asked for the;books to put them in the
hands of an accountant, so as to satisfy his brother
and the creditors, Sturt replied, " If you do that my
character as a hanker is gone for ever." After this
he (Gibson) said that if he, (Start) would give an
account of the affairs of the bank, his. brother and
friends would Wind the concern up and pay the credi-
tors in full. An unsttccessful_application for

the ledger had been made. What cash there
was in the bank had not been handed over.
Subsequently he obtained possession of the
book., but he and hii brother, a first-rate
accountant, could not arrive at the state of affairs of
the bank, owing to the state in which the books had
been kept. The deficiency of the bank, as shown by
the account produced, was about 2,0001. The account
prepared by Mr. Beghie showed the liabilities of the
bank prior to a meeting of creditors to be 23,0001.,
the as;ets being 18,0001.; thus leaving a balance of
5,0001. When the creditors assembled it had reduced
to 2,0001., but how it had so reduced he (witness)
could not tell. His property (valued at 6,0001.) and
good debts were not inserted in the statement put be-
fore the creditors. He had offered to charge his
property to the extent of the deficiency of the bank
upon the supposition that it was between 2,0001. and
3,0001. The property had been sold by Mr. Pain,
and realised about half the valuation. It was valued
at 6,000/. It was mentioned at that -Meeting that
there was a sum of money 'owing to 'the Com-
mercial *sank. He paid ' all the notes of the
St. Alban's_ Bank which were then in circulation
had paid other moneys on the part of the bank,
amounting in. the whole to about 1,8001. This was
in pursuance of a resolution made at the meeting of
creditors. lie raised the -1,800/. by a mortgage of
his life interest and other property. Afterwards,:he
gave notice to leave his house, parted with his 'ear-,
riage and horses and servants. Had not drawn any-
thing from the bank-since the stoppage. His
,average
expenses down to' 1847 never exceeded' 8001. a year.
While his income was 2,6201. his expenses were
1,2471. Ever since the year 1837, after payment of
all expenses, he invariably had a balance of from
1001. to 2001. The addilk of deposits` in the bank at
the time of the stoppage did not exceed 3,000 L Of
the 4,0001. drawn out of the firm, 2,0004. was for or-
dinary purposes. Some of his clients were customers
of the bank. Upon thanking Mr. Freeman for sign-
ing a resolution, he said that I was honest, being an'
honest man ; but is to Sturt, nobody gave him A good.
name. Witness was very sorry to make these remarks..
Freeman broughtan action, and he.defended it, think-
ing it very bard that he should get all his property, and
thereby have a preference, over other creditors. Had
made no terms with Freeman, and he had since ex-
pressed his sorrow at having brought the action. lie
(Gibson) denied having said-about the time of the
bank stopping that they must take care of them-
selves, the same as other people did. Had paid all the
notes, in circulation; but one had since been
threatened to be put in by Mr. Sturt.
By Mr. BAGLEY—Had put down everything he
received and paid from year to year. Did not know
that Sturt was a man without capital ; but, as he was
living very respectably, believed him to be a man of
2001. or 3001. a year. Commenced the bank on
Sturt's statement. Did not ask Start if he had any
property, but joined him from charitable motives.
Kept a private pass-book of the bank. Had it made
up once a year. At the end of the year 1844 should
say it was made up. Knew that the Commercial
Bank were creditors, and during four years he had
paid into the St. Alban's Bank three sums of 1,500/.,
1,0001., and 5001. respeetively. That was the capital
on which the firm started, but it never had been
said that it was treated as a cash advanced from
him (Gibson), and from which he was to draw. He
told Miss Markham, who put 1001. into the bank,
jokingly,, that in the event of the bank stopping he
would give her a hint. On the 24 December, 1848,
the writ was served on him in B iymant's case.
Did not recollect Mr. George, the plaintiff's attor-
ney, offering to countermand the proceedings if he
(Gibson) would give a cognovit of the admission of
the debt.
Mr. LINKLATER here ' said that he wished to save
the time of the Court, by stating that he should have
to go very fully into the examination of Mr. Gibson,
and he had to ask that the meeting be adjourned, it
being now half-past four o'clock.
Mr. Gibson said it would be of great inconvenience
to him, if such a course were adopted.
Mr. LINKLATER—And there is not a farthing for
the creditors.
Mr. LAWRENCE thought this an ungracious remark.
It was then arranged that the hearing of the case
be adjourned till Monday next.