The Sun.
London, England, 1857-12-19 00:00:00

THE LONDON AND EASTERN BANK.

COURT OF EXCHEQUER.
[The following appeared ix part of our impression of yes-
terday :—]
THE LONDON AND EASTERN BANKING COMPANY V.
J. B. STEPHENS.

This was an action arising out of the transactions in
reference to the London and Eastern Banking Com-
pany, which are now so well known to the public by the
recent examination of Mr. Stephens in the Scotch Bank-
ruptcy Court. Liter the failure of the bank it appeared
from the opening statement of the learned counsel for the
plaintiff, the Oriental Bank took, under certain condi-
tions, the business of the London and Eastern Bank, an
arrangement having been come to tbat the shareholders
in the latter should pay up the remainder of the calls I
due on the shares. Under that agreement the defendant,
who was the holder of 172 shares, gave a promissory
note for 8,6001. to the Oriental Bank, the amount of the
remaining 501. due on each share. Of the 172 shares,
150 of them belonged to a gentleman named Griffiths,
of whom the defendant purchased them for 6,000/.,
drawing a cheque on the bank for that amount. The de-
fendant pleaded a variety ;of pleas, and amongst others
that the shares were purchased on account of the bank
to secure a certain gentleman being on the direction ;
and, furthermore, that he had given a bond for the
amount, which bond was for an illegal purpose.
Mr. Bovill, Q.C., Mr. Lush, Q.C., and Mr. Honey-
man were concise' for the plaintiff.
Mr. M. Smith, Q.C., and Mr. Maud were counsel fur
the defendant.
Mr. Bovill called the following witnesses :
George Clough said he was a clerk in the London and
Exeter Banking Corporation till May, 1857. Mr.
Stephens was manager of the bank and a director. He
bad a drawing account there. Mr. Griffiths had also a
drawing account. The balance on Mr. Stephens's
drawing account was 111. 6s. 51. The last entry was
on the 11th of April-
The Lord Chief Baron—How came Stephens to cease
to be manager 1
Witness—l don't know. By resignation I suppose.
Examination continued—This cheque (6,0001.) was
given to him to enter in the journal to the debit of Mr.
Stephens and credit of Mr. Griffiths. Referring to the
deposit ledger Le found this entry-1856, July 22,
120 shares London and Eastern Bank, purchased of
Mr. Griffiths, 6,0001. This was carried to Mr.
Stephens's floating account first, and then transferred
to the EIX per cent. share account. The signatures to
the various receipts to the cheques and dividend warrants
were in the handwriting of Mr. Stephens.
Cross-examined by Mon4ague Smith—He did not keep
the ledger himself.
Mr. Smith—When that 6,0001. was carried to the
credit of Mr. Stephens in the share account, was there
a sum of 5,0001. to the credit of Mr. Stephens on the
current account ? Witness-4,9791. 2s. 7d.
Mr. Smith—Were there similar accounts kept between
other directors? Witness—l don't know of any other.
George Harrison said he was a clerk in the London
and Eastern Bank in 1857. He filled up a demand of
payment on Mr. Stephens.
The notice to produce this document was admitted by
the council for the defendant, but it was not forth-
coming.
Witness—The amount claimed in that notice of
demand was 6,011/. 6s. sd. In March, 1857, Stephens
held 172 shares in the bank, including the 120 shares
bought of Mr. Griffiths. The promissory note given to
the Oriental Bank for the calls of 50 per cent. on the
shares was in Mr. Stephens' handwriting. He signed
it in witness's presence. The promissory note was for
8,6001.
Cross-examined by Mr. Smith—When he filled up the
notice he posted it to Mr. Stephens, at Gothic
Lodge, Twickenham. Mr. Stephens' bond was given
at the time the transfer of shares was made, but it
was not executed till September following. It was a
cash credit bond.
Mr. Smith—Do you know that the shares bought of
Griffiths by Stephens were bought for the bank i
Witness—No, I don't. I know the contrary.
Mr. Smith—Was this transfer approved of by the
Board of Directors ?
Witness—lt was approved of after the transfer was
entered. A resolution approving of it was passed on
the 10th of August, and it was signed by Mr. Morris,
the chairman.
Re-examined by Mr. Bovill—The bond was signed
by Mr. Stephens soon after the British Bank broke,
and Stephens directed witness to place it amongst his
private securities. ,
The bond was produced, and it was found that there
was no stamp or seal to it.
Mr. Bovill—As this is not a bond, we will call it the
cash credit paper.
The Lord Chief Baron—You may call it a bond just
as you call a thing a bad shilling. (Laughter.)
Mr. Smith contended that the plaintiff could not re-
cover on the bond, although the defendant admitted it.
The bond en the firm in which it was given, was to
secure a balance on the account credit on which there
was only 111. due. The other was a separate account.
The learned gentleman read the terms of the bond, which
was to cover any account current.
The Lord Chief Baron said that all accounts were
covered.
Mr. Bovill said he feared that in his opening speech
be had thrown more discredit un Col. Yates. That was
very far from his intention, as Col. Yates was a most
honourable man.
The jury returned a verdict for the plaintiffs, for
6,011/. ss.
Immediate execution was applied for.
The Lord Chief Baron—Certainly.
The Clerk—immediate, or in four days.
The Lord Chief Baron—lmmediate.

From the London Gazette of Last Night.

NOTE. —For " Harhood," in page 4434, No. 5, or the
supplement to the Gazette of the 15th instant, read " Har-
good."

FOREIGN-OFFICE, DEC. 16, 1857.
The Queen has been pleased to approve of Don Juan
Pico y Villanueva as Consul at Cardiff for her Majesty the
Queen of Spain.
FOREIGN-OFFICE, DEC. 17.
The Queen has been pleased to approve of Mr. Alfred
Winter Evans as Consul at Port Natal for his Majesty the
King of the Netherlands.
The Queen has also been pleased to approve of Mr.
Antonio Pisani as Consul at Malta for his Majesty the
King of Hanover.
The Queen has also been pleased to approve of Mr. An-
tonio Pisani as Consul at Malta for the Free Hanseatic
City of Bremen.
CROWN-OFFICE, DEC. 16.
MEMBERS RETURNED TO SERVE IN THE PRESENT
PARLIAMENT.
Borough of Ashton-under-Lyne—The Right Hon. Thos.
Milner Gibson, in the room of Charles Hindley, Esq.,
deceased.

DECEMBER 18.
Borough of Whitehaven—George Lyall, of No. 17, Park-
crescent, in the county of Middlesex, Esq., in the room of
Robert Chas. Hildyard, Esq., deceased.
BOARD OF TRADE, WBITEFIALL, DEC. 18.
The Right Honourable the Lords of the Committee of
Privy Council for Trade and Plantations have received,
through the Secretary of State for Foreign Affairs, a copy
of a Despatch from her Majesty's Minister at Copenhagen,
reporting that the Danish import duties on bran, oatmeal,
oilcake, and husks and brand of rice, are provisionally
suspended.
BOARD OF TRADE, WHITEHALL, DEC. 18.
The Right Honourable the Lords of the Committee
of Privy Council for Trade and Plantations have re-
ceived, through the Secretary of State for Foreign Affairs,
a copy of a Despatch from her Majesty's Consul at the
Cape Vert Islands, reporting that in consequence of the
recent inundations, no salt can be shipped from the Island
of Sal, until the month of March next.
WAR-OFFICE, PALIOIALL, DEC. 18.

3d Regiment of Foot—Major-General Sir Henry Have.
lock, Bart., and 5.C.8., to be Colonel, vice Lieutenant.
General Nichola3 Wodehouse, deceased.
WAR-OFFICE, PALL-HALL, DEO. 18.

Royal Regiment of Horse Guards—Lieutenant R. M. L.
Williams-Bulkeley to be Captain, by purchase, vice F.
W. Fitzhardinge Berkeley, who retires. Cornet Walter
Palk Carew to be Lieutenant, by purchase, vice Wil-
liams-Bulkeley. John Albert Craven, Gent., to be Cor-
net, by purchase, vice Carew.
sth Dragoon Guards—Gentleman Cadet Charles Walter
Lee, from the Royal Military College, to be Cornet,
ithout purchase, vice Devaney, appointed to the 3d

Dragoon 'Guards.
7th Dragoon Guards—Gentleman Cadet John William
Zorapore Wright, from the Royal Military College, to
be Cornet, without purchase, vice Echalaz, deceased.
4th Light Dragoons—The future designation of Captain
Keith to be " The Hon. Charles James Keith-Falconer,"

and not Keith only, as hitherto stated.
7th Light Dragoons—The Hon. Walter Harbord to be
Cornet, without purchase.
Military Train—Captain John W. McFarlan, from the
9th Foot, to be Captain, vice Rogers, who exchanges ;
Lieutenant Noel Alleyne Harris, from 34th Foot, to be
Lieutenant, vice Rutledge, who exchanges.
Grenadier Guards—Lieutenant and Captain and Brevet-
Major Ed wyn S. Burnaby to be Captain and Lieutenant-
Colonel, by purchase, vice Rous, who retires ; Ensign
and Lieutenant William Henry iarnell to be Lieutenant
and Captain, by purchase, vice Burnaby ; Charles
George Henry Viscount Hinehinbrook, to be Ensign and
Lieutenant, by purchase, vice Parnell.
6th Regiment of Foot—To be Ensigns, without purchase
Oliver Robinson, Gent. ; George William Morland,
Gent. • William Lowe Butler, Gent. ; Charles Edward
Whitaker Roworth, Gent.; Jon Giffard, Selby
Barry Moriarty, Gent. ; William Seymour Selby
Lowndes, Gent.
The second Christian name of Lieut. Hunt is George and
not John, as stated in the Gazette of the irtth inst.
9th Foot— Captain George Alleyne Rogers, from the Mili-
tary Train, to be Captain, vice M`Farlan, who ex-
changes.
20th Foot—Paymaster John Matthew Gibbs, from the 2d
West India Regiment, to be Paymaster, vice Mosley,
appointed Paymaster of the 7th Foot; Lieut. John James
S. O'Neill, to be Instructor of Musketry, vice Captain
Lutyens, who resigns that appointment.
26th Foot—Gentleman Cadet Lancelot Allgood Gregson,
from the Royal Military College, to be Ensign, without
purchase, vice Barton, promoted.
29th Foot—Gentleman Cadet William Boycott, from the
Royal Military College, to be Ensign, without purchase,
vice Hart, promoted ; Gentleman Cadet Howell Davis,
from the Royal Military College, to be Ensign, without
purchase, vice Winn, promoted; Assist. -Surgeon William
Alex. Mackinnon, from the Staff, to be Assist.-Surgeon,
vice Chartres, appointed to the Staff.
30th Foot—Gentleman Cadet Malcolm from the
Royal Military College, to be Ensign, without purchase,
vice Wray, promoted.
31st Foot—James G. Hamilton, Gent., to be Ensign,
without purchase, vice Inge, appointed to the Bth Light
Dragoons.
34th Foot—Lieutenant John Bruen Rutledge, from the

Military Train, to be Lieutenant, vice Ir.larris, who ex-
changes.
36th Foot—Ensign C. S. T. Sale to be Liei tenant, by pur-
chase, vice Hugo, who retires.
37th Foot—Gentleman Cadet Henry A. I ogles, from the
Royal Military College, to be Ensign, w ii shout purchase,
vice Jarvis, who ieaigns.
44th Foot—Ensign Henry Leake to be In v tructor of Mus-
ketry, vice Captain Staveley, who resig- a s that appoint-

ment.
45th Foot—Robert J. Callwell, Gent., to be Ensign, by
purchase, vice Webber, promoted.
52d Foot—Gentleman CadetC Charles Mid lleton Prender-
gast, from the Royal Military College y to be Ensign,
without purchase, vice Beattie, prom, tied ; Gentleman
Cadet Thomas Brett Cowburn, from th e Royal Military
College to be Ensign, without purchas , in succession
to Lieutenant Hallam, deceased.
58th Foot—Lieutenant G. J. R. Wynyardl to be Captain, .
by purchase, vice Isaac Rhodes Cooper, si 'ho retires.
60th Foot—Gentleman Cadet John East B.enter Peyton,
from the Royal Military College, to be Ensign, with-
out purchase, vice Hatchell, promoted.
61st Foot—Lieutenant Thomas Maitland Id :oore to be Cap-
tain, without purchase, vice Dely, tlo ceased.; Ensign
Edward W. Rumsey, from the 91st Foot t,, to be Ensign, in
succession to Lieutenant Moore ; G r 3 ntleman Cadet
Frederick John Farte, from the Royal A lilitary College,
to be Ensign, without purchase, vice Casement,
promoted.
62d Foot—Jules Victor Le Blond, Gen t., to be Ensign,
without purchase, vice Clay, aopointe( t to the 78th Foot.
65th Foot—Lieutenant Thomas Georges itr ange to be Cap-
tain, without purchase, vice Bazalget re, deceased.
67th Foot—Gentleman Cadet George Baker, from the
Royal Military College, to be Ensign, without purchase,
-rice Kingsley, promoted.
70th Foot—William Henry Ralston, Ge art., to be Ensign,
without purchase, vice Backhouse, pr emoted.
78th Foot, Thomas Hinde Thompson, G mut., to be Ensign,
without purchase, in succession to Lie LI tenant Swanson,
killed in action.
79th Foot—Lieutenant Arthur Walker i,o be Instructor
of Musketry.
91st Foot—Gentleman Cadet Horace B ilph Spearman,
from the Royal Military College, to be I f:nsign, without
purchase, vice Rumsey, appointed to 1-1 e 61st Foot.
97th Foot—The second Christian name (if Ensign C respin
is Champante, and not Chawpante,, as stated in the
Gazette of the 11th inst.
98th Foot—Gentleman Cadet William Al -offett, from the
Royal Military College, to be Ensign, w. ithuut:purchase,
vice Gregory, promoted.
99th Foot—Gentleman Cadet Albert Lt tncelot Walker,
from the Royal Military College, to be, 'Ensign, without
purchase, vice Jacob, promoted.
2d West India Regiment—Paymaster NI Tilliam Neilson,
from the sth Lancashire Militia, to be Paymaster, vice
Gibbs, appointed to the 20th Foot.
3d West' India Regiment—Lieut. John 0 'Flanagan to be
Captain, without purchase, vice Hi .nyston, deceased ;
Ensign George Stow Beet to be Li .entsnant, without
purchase, vice O'Flanagan ; William thair, Gent., to be
Ensign, without purchase, vice Beet.
Royal Canadian Rifle Regiment —Payt master Luke Fitz-
gerald Bernard, from the 68th Foot, -to be Paymaster,
vice Wardell, who retires upon half-pa y.