The Sun.
London, England, 1842-10-17 00:00:00

THE BANK OF MANCHESTER.
ANN UAL MEE'FIN G.
Tlie annual general meeting of the Proprietors i:he
Bank of Manchester, held on Friday, as might be ex-
pected, under the present circumstances of the bank,
excited much interest, not only in Manchester, but in
other towns in the neighbourhood.
Mr John Spencer, one of the Directors, took the
Chair. The following Report was read :
CONDENSED SUMMARY, : oth JUNE, 1842.
Estimated Estimated
ASSETS. Gross. loss. net assets.
a. d. X. s. 6. X. 4. cl.
Current accounts 914,01181., 1! 477,354 12 7 436/51 1 4
Building societies '2,322 9 4 2,3:2 9 4
Lodgment accts 16,417 0 7 4,850 19 4 14,593 1 3
Assignees and
trustees ..... . .... . . 5,015 10 1 5,207 3 7 3,808 6 6
Suspense accounts 17,102 17 9 1;,974 8 5 9,1'21, 9 4
Insolventdo... ! 166,077 12 2 125,b61 13 4 40,215 18 10
Bank premises and
proper ies pur-
chased 31,2 718 10 2,6"0 17 7 2',6( 1 1 3
Alliance Bank
Shares
Bank of anches-
ter Shares
Stamps... 626 9 8 618 8 619 11 0
Overdue Bills 176,781 1/ 1 95,180 18 7 81,59) 16 6
Bills on hand and
current
Cash on hand
Funds in transi. tu
with branches 2,113 0 9 2,131 0 9

---
2,59N1C2 7 8 8-.0,887 15 9 1,794;214 II 11

LIABILITIES.
Current accounts 746,158 11 4
Building socie les ~078 17 3
Lodgment accounts 117,461 6 10
As ignees and trus-
tees
Suspense account 11,712 13 5
Notes in circulation 9.680 0 0
Post bills 14,383 0 3
Promissory notes
Unclaitned divdnds l,BOB 14 0
Salaries ......... 707 10 0
Interest on bills on

hand 1,149 17 2
Current bills ,„ 747,607 410

£1,810,462 18 11 £1,810,4t-.2 18 11
Reserved surplus ... 19,321 12 9 Estimated
Branch fund
Profit for year 14,236 19 7
Capital 741,030 0 0 Deficit £16,248 7 0

.C 4505,102 7 8

From the foregoing, it will appear that the direct liabili-
ties of the Bank amounted to £1,810,462 18 11
While the estimated net assets
amounted to

Showing a deficiency of .. 16,248 7 0
Exclusive of the entire capital 0f... 741,030 0 0
And the reserved surplus funds and
profit for the year, amounting in
the aggregate to 43,609 8 9

And making in the whole a total
loss of £800,887 15 9
It must be evident that such a state of affairs was
quite incompatible with the continuance of the busi-
ness of the Bank ; and Mr. Smith, to whom the in-
vestigation had been exclusively confided, with a
soundness of discretion which the Directors feel bound
to acknowledge, assumed the entire responsibility of
devising a plan, whereby the safety of the share-
holders, the convenience of the cu,tomers, and the
general interests of the Bank, might be most
effectually secured. The negotiations for this end
could only be successfully carried out by the most
vigilant caution and absolute , reserve ; and the Di•
rectors were, for ft first time, made cognizant of the
actual state of • irs, on riday the 7th instant,
when called upon to confirm the arrangements de-
vised by Mr. Smith.
It is, therefore, a source of great satisfaction to the
Directors to be able to state, that arrangements have
been made with the Manchester and Liverpool Dis-
trict Bank, for rendering available such portion of
their assets as Fill promptly liquidate every demand,
and for affording all reasonable facilities to the cus.
tomers of the Bank of Manchester. As a means of
insuring success in these desirable objects, and of pre-
venting the premature sacrifice of property, the Di-
rectors have felt it their duty to make a call of 2/. per
share, which they hope will, on due consideration, be
promptly responded to by the Shareholders.
They are sorry to be obliged to report, that Mr.
Burdekin, who has for many years been connected
with the Bank, has recently absconded, and has misap-
lied the endorsement of the Bank to his own purposes.
It has not been possible to ascertain the extent of
these fraudulent transactions ; but the Directors are
in hopes that they will not exceed the amount for
which his sureties are liable; and they can only pro-
mise, that no exertion shall be wanting on their part
to bring Mr. Burdekin and his confederates toaccount.
In submitting so deplorable an exposition of mis-
management, the Directors, or at least that portion of
the board who were in office previous to the last ge-
neral meeting, cannot but feel that they have exposed
themselves to the severest animadversions, for having
so fatally misplaced their confidence in a Managing
Committee ; and the only argument which they can
offer in proof of their having themselves been deceived
and in extenuation of that which they so bitterly re-
gret, is the fact that they have been, and are. still,
among the largest Shareholders, and consequently
among-the heaviest sufferers. • - - -
The- Directors who retire by rotation are—Mr.
John Spencer, Mr. John Hall, and Mr. John Potter;
who will be proposed for re-election. Since.the last
meeting, Mr. Thomas Rae, Mr. John Brown, Mr.
John B. Smith, and Mr. Richard Roberts, have re-
signed their seats ; and the Directors have supplied
their respective vacancies by the election of Mr.
William Haynes, Mr. Willim Hill, Mr. William
Smith, and Mr. William S. Sten, all of whom will
be summitted for the approval of this meeting. The
vacancy occasioned by the removal of Mr. Burdekin
remains to be supplied by the Shareholders, and the
Board would beg leave to submit the name of Mr.
Thomas 011ivant for their consideration.
. In conclusion, the Directors have to state, that, at
a preliminary meeting of some 01 the principal Share-
holders and the Directors, held on Friday the 7th in-
stant, it was resolved to anticipate the wishes of the
general body, by the appointment of Messrs. I Bur-
ton, Thomas 011ivant, and Alexander Bannerman, to
undertake the examination of the accounts, of which
the summary is now submitted.. These gentlemen
will, no doubt, be prepared to express to the meeting
their opinion as to their correctness.
It was also decided to recommend to the share-
holders the dissolution of the Company, and the ne-
cessary steps are in progress for convening a special
general meeting for the purpose.—By order of the
Board. . .
After the reading of the Report, a very long discus-
sion ensued, which was begun by a Mr. GREW. He
made a serious attack on the Managing Directors, in-
cluding Mr. J. B. Smith and a Mr. Roberts, and con-
cluded by making these observations :—There really .
must be a stop put to the wholesale degraded system
which we have got into ; and I say that there could
be no better plan adopted to punish the offenders,
than that a pillory should be erected over the
Bank of Manchester, in which the auditors
should occupy the top station—those Directors
who have plundered the bank so grossly to be below
them, surmounted with a cast-iron likeness of he who
has absconded to another country, showing four faces,
one for the Committee of Management, another for
the Directors, another for the Shareholders, and an-
other for the Public, if it could be considered that he
had one at all—(Much laughter)—and rather than
the thing should fail, I would very willingly give five
or ten pounds towards it.—(Hear, hear.) I say that
there has been a serious fault committed by the Di-
. rectors, in keeping thatman so long in his situation—
(Cries of " Hear, hear")—unless his character had
been very different indeed to what it was known to
be in Manchester.. He could expect nothing else than
that he would have quitted the country before this
meeting. I was fully convinced of it in my own
mind, and therefore Ido not feel disappointed ; but
I shall be deeply disappointed indeed if lie is not
brought back to this country.—(Hear, hear.) Mr.
Greig retired amidst loud applause.
Of Mr. Roberts, who was not present at the meet-
ing, it was afterwards stated by Mr. Smith—Mr.
Roberts having suspended payment, and being
actually in bad debt to the bank, I have no hesitation
in stating, that his total liabilities, on his own account,
and in cpnnexion with others, amounts to 74,5031.,
which caused a great sensation. It was admitted by
the friends of Mr. J. B. Smith that he had committed
' sins of omission in not having paid proper attention to
the proceedings of the Bank of which he was at the
head, but his brother said for him, that his own
individual loss will be some 14,000/. or 15,000/., and
that the loss of his family will be two or three times of
that amount—and some of them, I am sorry to say,
will be among the widows and orphans who suffer on
this occasion.—(Hear,) He has, from his not being
in business himself for offend years past, been in a
position to act a perfectly independent part. He has
no occasion for extraordinary advances from the
Banks no necessity to use the money of the Bank;
nor have any of his connexions ; he has not made use
of the money of the Bank, nor have his family. He
does not, at this moment, nor do any of his family,
owe the Bank one farthing.—(llear.) Therefore,
whatever his faults of omission or commission, I am
anxious to impress upon you, his desire and interest to
do all he asu tbr the benefit of the Bank, and that lie
had and has no interest adverse to the interests of the
Bank.
Mr. J. DYER. another Direetor, Aaid.—,l
ought to
: &,uv
e that it is my firm ictiont &Phi All I
have
4;q
-..K..?,0 f that the intentions and meives by which Mr'
J. LI. bniith has been directed have always been
those of ,I`. 'moth' And integrity ; and that the." • WaS,
not the slighte;.+-. indication of anything like want ch
principle. It was a i7trong, a censurable thing in him
to go away and leave siie!t important duties to the
doctrine of chances ; that is a matter of blame which
attaches to him ; but certainly there is no evidence, I
think, at all implicating his integrity. And as it is
mentioned as a sort of palliation of the faults of the
parties connected with the affairs of ttii.s hank, that
Mr. Smith is a heavy sufferer. I may mention to y°ll
thatl never sold a share in the bank ; that I am i 140
1 unlucky proprietor of -2,400 shares ; that these shares