The Sun.
London, England, 1850-01-17 00:00:00

LONDON AND WESTMINSTER

BASK.

Th'3 usual half-yearly meeting of the proprietors
of the above bank was held yesterday on the bank
premises, in Lothbury ; Joshua Walker, Esq., Chair-
man of the board of directors, in the chair.
The advertisement, convening the meeting, having
been read, the report (which appeared in our City
article of yesterday), was submitted to the pro-

prietors.
The CHAIRMAN, in moving the adoption of the
report, observed that it would be in the recollection
of the proprietors, that at the last meeting a pro-
prietor gave notice of his intention to move, that the
directors be requested to take into consideration the
propriety of adopting cash credits upon the Scotch
principle, and perhaps it would save time if he stated
that the directors had already cansidered the subject,
and come to a decision upon it. Now, if the
directors adopted that system, they would have
to lock up and keep their capital idle, but a
neighbouring bank was testing the principle under
the most favourable circernstances, and if it suc-
ceeded it would then be time enough for them to adopt
it. With regard to the report itself, the proprietors
would perceive that it was as favourable as the state
of commerce would admit of. No doubt many pro-
prietors had attended in the hope of hearing a dividend
declared, in the shape of a bonus ; but although he
was not in the pleasurable position of being able to
gratify that expectation, he had this gratifying intelli-
gence for the proprietors,that the losses of the disastrous
year had been wiped off. In that year there were no
less than 480 failures, amounting in the whole to
3,400,0001., and this bank being large bill holders,
came in for more than its fair share of the loss,
amounting to 60,0001, which had operated as a mill-
stone round their necks ever since. Those losses,
however, had now been cleared off, and in future the
directors would have to deal with the entire profits as
the proprietors thought fit. There was another inci-
dent which occurred in 1847, that he thought it right
to mention. In the worst week of that period,
which was now known as the reign of terror,
the bank had to dispose of 300,000/. of Con-
sols. On the followiag day the Government
letter came out, and the result was - they had ulti-
mately to buy in again at a loss of 20,0001. Still it
was a source of pleasure for him to know that all
these loises had been written off, and when he men-
tioned that within the last four years their accounts
had increased by 11,000 in number, and 1,000,000 in
amount, he thought the old proprietors would agree
with the directors, that this bank was likely to prove
one of the most flourishing in the metropolis.
Mr. TITE 'lid not come there with the expectation
suggested by the chairman, nor dil he wish to blame
the directors for their system of management. Still
there were rumours out of door,' thate he thought it
right to mention. In the first pace, it was thought
that the Bank did not do t amount of business
11
which it ought, and whiP. the magnitude of the
establishment entitled it to. This arose from the cir-
cumstance of their not ;hawing interest on cash
deposits, and he would therefore take the liberty to
suggest that this principle should in fature be
adopted. Another rumour out of doors was that the
price of their shares nits not what it would be if the
published accounts were moce extensive, more clear,
and given with mare det li; ; and, while he doubted
the propriety or acting neon the Saotch system,
thinking it imitacticable in the metropolis, he would
earnestly urge Upon the directors the necessity of al-
lowing),Kerest upon deposits.
'l;3/CHAIRMAN wished to know if the Hon. Pro-
tor meant interest on deposits, or interest on cur-
eent balannea ?
Mr. Turn said on both.
~. The CfIAIRMAN did not think it right to adopt the
1 suggestion; bat with regard to the accounts, in fu-
ture they should be given with more elaboration.
Mr. Caouca now claimed the privilege of moving
the motion of which he had given notice—namely,
that the directors be requested to adopt the Scotch
sv,tern of banking ; but in doing so, he wished
it to be distinctly understood that he had full
coefidence in the integrity and ability of the directors.
This hank was started on the understandint, that it
would be conducted on the principle he now hoped to
see adopted. It was high time that the monopoly in
banking, which the Condon houses enjoyed, was
done away with; and since the system he recom-
mended had rei,ed Scotland from an insignificant po•
sition to a nation of vast importance and unquestion-
able prosperity, he thought it would confer
an advantage on the middle and industrious
classes of the metropolis, and add materially
to their own profits, if it were adopted by this bank.
That they were in a position to adopt it no one could
dispute. At present they had a large laid-up and
accumulated capital lying idle in the funds, which
might he lent out at an excellent per-cent-
age to tradesmen and manufacturers who
were now crippled in their operations for the
want of such accommodation. Let it not
be said that the system was not based
on a sound, sate, and solid foundation, because it was
founded on truth, and served not only to increase the
profits of the hank, but to enhance the comfort and
wealth of the great mass of the people. To prove the
stability and safety of the system, he need oely men-
tion the fact that in Scotland the losses of bankers
during a period of 120 years had amounted to
scarcely 40,0001., while in this country the losses by
banking within the list 20 years had reached no
less than 20,000,0001. It was preposterous then
to tell him that the system was not applicable to this
country ; the fact wes, under the existing system,
the bankers of London were the origin of more than
half the insolvency of the country, and as he saw
nothing in the character and ability of the people of
this country which was averse to the carrying out of
the principle, he hoped the time was not far distant
when it would be adopted by this bank. He should
not, therefore, press his resolution.
Mr. MAUDSLEY did not agree with Mr. Tite that
any published accounts could have the effect of
enhancing the value of their shares, but it certainly
would he more satisfactory to him if the accounts
were given more in detail. He had hut one complaint
to make against the management. It was said out of
doors that parties banking with this concern did not
meet with the courtesy and accommodation that they
had a right to expect. Now, at the London Joint-
Stock Bank a committee of management sat daily, to
whom all parties anxious to do business with the
bank were introduced, and he thought it would do no
harm if the same practice were adopted in this hank.
The Craarawt reminded Mr. Crouch that the
Scotch system was so far profitable, that the R )yal
Bank of Scotland only paid 5 per cent., but as the
- directors -proponad to take 'the . question into their
further consideration; he woubl.not answer the argu-
ment of the lion. Proprietor. With regard to the
suggestion of Mr. Maudesley, he begged to inform
hint that a portion of the directors were constantly
- in attendance at the bank.
Mr. KEMBLETON had had some experience in the
Scottish system, and he gave it as his decided opinion
that it was not applicable to this country. In Scot-
land bankers were allowed to circulate notes without
providing for them in specie, a privilege which did
nat exist here, while, with regard to the profits of the
system, the Hon. Gentleman, Mr. Crouch,
was labouring under a
,delusion. One bank alone
with which he was connected—the old Aber-
deen Bank—had merged with a loss of 200,0001., and
he had no doubt there were many establishments in
as bad a condition. The system, he allowed, had
worked well in Scotland, but they did not know one
another sufficiently in this huge metropolis to make it
safe to adopt it in this country.
Mr. MAUDSLEY wished to know if it was not a fact
that the branches had made 22,0001. of the profits ?
The CHAIRMAN said that was so.
A PROPRIETOR inquired if the value of the banking
houses and branches were included in the surplus
profits.
The Curium/ex—Oh, no, it is a clear cash balance.
Mr. MATIIEW—Is the surplus fund a guarantee
fund ?

The CHAIRMAN-It certainly is.
Mr. MAYHEW—I have been told that the surplus
fund is a mixed fund, and strictly there is no gua-
rantee fund.
The CHAIRMAN—Oh, yes, there is. We have a
reserved fund to meet losses and contingencies, and
keep the dividend steady.
Mr. MAynEw was of opinion that it was highly
desirable that the accounts should be enlarged.
The CHAIRMAN was not aware that the mode of
stating the accounts had been complained of till to-
day, but if it was any satisfaction to the meeting be
would renew his promise that in future the ac-
counts should be given more in detail.
'AI. SMITH wishe,l to have the opinion of the direc-
torsurpon the system of allowing interest in current
balances.

The CuAIRMAN replied that the London Joint-
Stock Bank and the Union Bank had tested the plan,
and found that it would not succeed. The directors,
therefore, did not think it prudent to adopt the
practice.
The resolution for the adoption of the report was
then put and carried, after which the dividend was
declared and the retiring directors re-appointed.
Captain PORTER then moved—" That the remune-
ration of the directors be reduced from 4,500/. to
3,0001, and that as vacancies occur at the board the
number of directors be reduced from 15 to 13, with
the same remuneration."
The motion having been seconded,
The CHAIRMAN said it was hopeless to expect first-
class men to join the direction if their remuneration
were reduced. The directors had heavy duties to
perform, and if the proprietors had their own interest
at heart they would allow things to remain as they
are. _ _

Thanks were then votel to the chairman and di-
rectors, and the Chairm ;n having acknowledged the
compliment, the meeting was about to terminate,
when

A vote of thanks was passed to Mr. Malcolm, the
manager, and the clerks of the bank.
A PROPRIETOR suggested that the income-tax,
which was generally deducted from the salaries of
their managers and clerks, should be refunded to
them.
The CHAIRMAN said the matter should be considered
before the next meeting.
Tne meeting then broke up.

AUDIT OF RAILWAY ACCOUNTS.
The adjourned meeting of the representatives of
railway companies was held at the King's Arms
Hotel, fridge-street, Westminster, at one o'clock

yesterday.
Amongst the gentlemen present we noticed the
Earl of Lonsdale, Mr. E. B. Denison, M.P., Mr.
Glyn, M.P., Mr. C. Russell, M.P., Mr. Laing, Mr.
S•ewart, the Secretary of the London and North-
Western Railway Company, and many other influen-
tial gentlemen connected with railways.
Tne Earl of LoNSDALB was called to the chair, in
taking which he said—At the end of last session of
Parliament the opinion seemed to be very general
against Government interference in the auditing of
railway accounts. They had a meeting in the be-
ginning of November, which came to certain reso-
lutions as to the ground-work of a Bill to be
introduced into Parliament on this question, and
they were to meet again in December to take
the opinions of the shareholders and directors
of all the different companies. In December, how-
ever, they had received very few returns to the cir-
culars which had been sent to the shareholders with
a view of eliciting their opinions as to the proposed
Bill for the audit of railway accounts, and they
thought it expedient to defer the meeting until this
day. He was sorry to say that those returns had not
very much increased at this time. The representa-
tives of railway companies, therefore, considered that
they could only_ be justified in introducing a Bill
into Parliament by having an overpowering majority
of shareholders to support them. They had not got
such a measure of support from the shareholders to
warrant them in bringing forward such a Bill, and he
considered that they had no business to introduce it
into Parliament, supported as it was by compara-
tively few shareholders. Few of the share-
holders whose opinions had been taken had expressed
themselves in favour of a Government audit ; but a
great proportion had not expressed any opinion at
all, and before the proposed Bill could be brought
before Parliament, he and the gentlemen with whom
he acted thought they should be backed by
the zealous and cordial co-operation of a
large number of shareholders. That not being the
case, he feared they must, in a certain degree,
withdraw, and leave the matter in the hands of the
shareholders, who would meet next month, when,
perhaps, a clearer and more decided opinion on the
question might be given. Under ordinary cir-
cumstances he should not have thought it necessary
to call a meeting on the present occasion ;
but he considered it necessary, from the circumstance
of his motives and views on this subject having been
misrepresented. He had heard it said that he had
changed his opinion on this question, and that he now
thought a Government railway audit was necessary.
He had now to say that the more he considered this
subject the more was he convinced that it was unne-
cessary fir the Government to have the superintend-
ence and auditing of railway accounts.—(Hear.) He
was glad to take this opportunity of stating that his
opinion on this subject remained unchanged. The
complaint against railroads two years ago was, that
the shareholders were incapable of managing their own
affairs. Recent investigation, of different companies,
which it was unnecessary to mention, showed, he
thought, that there was intelligence, vigour, and
perseverance enough among shareholders to unravel
and probe even the most intricate accounts to the
bottom ; and therefore he considered the supervision
of railway accounts ought to be more properly left to
the shareholders than any other party. Tee Noble
Earl concluded by submitting the fallowing resolu-
tions to the meeting :
The Secretary having laid on the table the draft
of a Bill proposed by him, in accordance with his
view of the resolutions adopted at the last meeting-
- Resolved—That a'though there still apps ars t, be
the strongest fr eling amongst railway propret)rs gene-
rally against the principle of any Government audi',
yc t a, there has nr t been Lund to be the needful una-
nimity of opinion, even amongst the boards of directors,
as to the provisions cf this Bill or the propriety of the
ree,,lations formerly adopted, it is not exped eat to in-
troduce the Bill into Parliament.
" That it no longer appears to be the duty of, or to
be becoming in, dire tors t ) take any prominent part
upon the question of audit, since it would seem to be
now viewed, though most errone usly, by a portion of
the shareholders in some of the companies, rather as a
question between the board and their c nstituents.than
between the body of sharvho'ders and the GON ernmenr.
" That it the-ef )re be let t shateholders them-
selves to take her( after such course with regard to the
clue:Aim as they think fit, each board communicating to
its constituent; this resolutior, prior to the ensuing ge-
neral meeting, in such Ray as may be deemed right."
Mr. GLYN, in seconding the resolution, said, the
result of the inquiry which had been made since the
last meeting in November, bad brought him to the
conviction, that the resolution passed at that meeting
had not met with such a general assent from
the main body of railway proprietore as to warrant
their proceeding further with the Bill. So far as
concerned the London and North Western Company,
he could state that the returns made to the circulars
submitted to the shareho!ders on this question, showed
that,a large body of thelproprietors were against any Go-
vernmental interference in the audit of railway accounts.
He might make the same remark with respect to the
shareholders of other companies, with whom he
had had communication, although the majority was
not so decidedly overpowering. He hoped it would
not go forth to the world that there had been the least
alteration of feeling with respect to this question among
those who had had the administration of the affairs of
railways. He entirely acquiesced in the views ex-
pressed by Lord Lonsdale, because he thought the
public in general had taken an erroneous view as to
the proceedings of the directors on this ques-
tion. He had always said this was a pro-
prietors' and not a directors' question ; and
he would leave the question in the shareholders' hands,
confident that it would be much better dealt with by
them in Parliament than by any further action on
the part of directors.
Mr. E. B. DENISON, M.P., thought it was now uni-
versally admitted that there ought to be an Audit of
railway accounts of a 'perfectly honest and inFlepen-
dent character. Everybody was of thateoisinion, and
his opinion was that it was not • the more necessary
for directors than for the shareholders and proprietors
themselves.—(Hear, hear.) Speaking for himself,
he said advisedly that he would_ not remain a
director of a railroad unless some means
were adopted for investigating the accounts,
which would at once settle the question.
He was sorry to say that railway directors, generally,
were rather more suspected than respected.--(A.
laugh.) What system of railway audit was to be
adopted he was not prepared to say, but he quite
agreed with his friend and neighbour Mr. Glyn, that
the audit ought not to be a Government
appointment ; and he (Mr. Denison) was
at liberty to say that the members of
the Government did not wish to have the onus of
the appointment put upon them. What the Govern-
ment said, he believed, was that it was a commercial
affair, and the directors and shareholders were to
manage it among themselves, but as it was a great
public affair also, it must be managed fur the benefit
of the public.
Mr. LAING still approved of the Bill, although it had
not' met with a sufficiently hearty approval by the share-
holders to justify its being proceeded with. He left
the matter to be dealt with entirely by the share-
holders at the approaching general meeting. On the
question of a Government audit, he thought it might
be very well left in the hands of the shareholders.
Mr. Enets thought this was entirely a shareholders'
question, and that the course now proposed was the
only sound and proper one. It was a mercantile
business, and a mercantile business ought to be ma-
naged without the supervision of the Government.
Mr. C. RUSSELL feared that in adopting these reso-
lutions it would be considered they were departing
from the pledge given by them at the close
of the last session of Parliament, when they
pledged themselves to do all in their power to intro-
duce an efficient system of audit. Since that time
they
_had ascertained the opinions of their share-
holders, and what had been the result ? In the
Great Western line, with which he was connected,
they had 5,600 shareholders, and out of that number
they had got only 600 answers to the circulars
sent to them to elicit their feelings on this question ;
and out of that 5,600 shareholders 267 had said that
they objected to a Government audit. He admitted
that this was entirely a shareholders question, and if
it were possible to act with the shareholders and
proprietors he should most heartily concur in
that mode of action ; but he did not believe
it was possible. They could not even come at the
opinions of the shareholders urn this question. How
then was it possible to persons so nuttier-
ous and so scattered as they h
that
te
could be brought
to concur in any scheme on such a question as that of
an audit of accounts ? He should heartily concur in it if
it were possible. He would not oppose the resolutions
which had been proposed, but he feared they would
be a dereliction of the pledge given by them last year.
The resolutions were then put, and carried unani-
mouely.
ancilitrheGmureNetminog
vesedpaarvaoteted.of thanks to the Chairman,

A NEW POLICE BARRACK.—The Commissioners of
Pollee are now constructing an extensive reserve police
barrack contiguous to the Old St. James's watch-house,
Vine-street Piccadilly.