The Liverpool Standard and General Commercial Advertiser.
Liverpool, Merseyside, England, 1843-02-07 00:00:00

BANK OF MANCHESTER.

Yesterday (Monday), the adjourned special general
meeting of the shareholders in the Bank of Manchester was
held in the large room attached to Hayward's Hotel, Bridge-
street, Manchester, for the purpose of receiving a report from
the directors of the state of the concern at the end of the year
1812. The meeting was attended by a large body of proprie-
tors, amongst whom were two ladies, who appeared to take
intense interest in the proceedings. The chair was taken by
JOHN Sr ENcErt, Esq., chairman of the board of directors.
The Cu AIRMAN said the present was an adjourned special
general meeting held in pursuance of the 74th clause of the
deed of settlement. The last meeting, of which this was an
adjournment, was held on the 7th of November, and since
that period the directors had brought down the accounts to
the close of the year. A report had been prepared by Mr.
Smith, the manager, which had been submitted to the board
of directors and adopted by them, which report he called
upon Mr. Smith now to read.

Mr. SMITH, the manager, then read the report, of which
the following is a copy :
The present adjourned meeting of shareholders has been
summoned in conformity with the resolutions of a special
meeting held under the provisions of the 74th clause of the
deed settlement, on the 7th day of Nov. last ; the powers of
such special meeting are, therefore, in full force on the pre-
sent occasion.

The directors have availed themselves of the interval to re-
view the estimates of the probable value of the assets of the
bank ; and the following is a summary of the condition ofthe
concern on the 31st, December, 1842 :
GENERAL SUMMARY.

ASSETS. £ s. 9d.
Amount due to bank from sundry accounts 970,156 17 9
Overdue bills
Properties
Alliance bank
Stamps
Cash
Bills of Exchange £142,872 9 1
Less interest 1,133 19 0 141,738 10 1
Shares of Bank of Manchester 63,175 11 11
Bills negociated

£1,666,003 6 4

LIABILITIES.
Amount due by the bank on sundry open
accounts ....
Per notes Alliance Bank ............ .
Notes in circulation
Unclaimed dividends ... 1,711 14 0

Bills negociated

Sums in transitu with branches:.

581,859 19 1
219,231 16 4

801,091 15 5
3-18 7 4

801,440 2 9
Bank Stock.. £741,030 0 0
New calls..
Reserved fund

861,563 *3 7

SUMMARY BROUGHT DOWN.

Total assets
Deduct estimated loss

1,666,003 6 4

1,666,003 6 4
826,375 12 8

Net assets 839,627 13 8
Deficiency in repayments of new call 46,170 9 1

Liabilities,
New call

885,798 2 9
£801,440 2 9
84,358 0 0

885,798 2 9

Estimated deficiency shown by last report.. • 16,247 7 0
Further estimated loss and expences since
30th June, 1842 ..

£46,170 9 1
On comparing the foregoing with their previous statements,
it will appear
That the liabilities of the bank, including those
contingent on bills of Exchange, were on the
30th June
On the 31st December 801,440

Showing a decrease of £1,009,023
That the liabilities, exclusive of those contingent
on bills of Exchange, were, on the 30th of June£1,062,856
On the 27th October. .
On the 31st December 581,860
Showing a progressive decrease, from 30th June to 27th
October, £349,774 ; from 27th October to 31st December, of
£131,222 ; and making in the whole the sum of £186,996.
The continued decrease of the liabilites, since 31st Decem-
ber to the present period, has been about £120,000, of which
£BO,OOO has been by the maturing of bills of Exchange.
It will, however, be seen that the estimated ultimate loss
has been increased by the sum of £29,922 2s. ld. This arises
partly from a positive falling off in the value of some of the
outstandings, partly from the discovery of more extensive
frauds committed by Mr. Burdekin, and partly from interest
and the expenses of the bank.
The directors take occasion to remark that the estimates
have been revised by the general board, and although they
have endeavoured to come to as correct a conclusion as was
in their power, it is impossible for them to foresee, with any
certainty, what may be the ultimate result of an estate,
which is dependent on so many contingencies.

It will be observed that the sum of 7£84,358 has been paid
towards the call of £2 per share. The directors expect to
realise from that source a gross sum of about £120,000.
They have hitherto refrained from pressing for payment, well
knowing the serious inconvenience which the unfortunate
position of the bank must have entailed upon many of the
shareholders. They trust, however, that the example set by
so large a portion of the body will have its influence on others,
and that they shall not be driven to exercise the unpleasant
duty of enforcing a contribution, which is so evidently neces-
sary, in justice not only to the creditors of the bank, but to
those shareholders who have already paid up the call.
Since the last meeting vacancies had occurred in the board
of directors, by the lamented death of M r. Oilivant, and the
resignation of Mr.:Prince and Mr. Burt. These have been
supplied by the election of Mr. Alexander Bannerman, Mr.
John Goldesborough, and Mr. Peter Rothwell.

By order of the Board of Directors,
G. R. CRAPrELL, Chairman

Mr. GREIG said it was hisin;;tiOn to prop' Os3a TesOlu-
tion which he would forthwith read;
but he would reserve
any observations he might have to make until Mr. Charles
Smith had read a letter which his brother, Mr. J. B. Smith,
wished to be in
in
what
understood to have written to the sharehoihdaetrspoinsittilolins
unhappy concern. After the statements made by Mr. Richard
Robertse.s
Bo an. t
sot the
all
e itlast
ht
oemeetingfodac.
t sT, ihnehoerd(cMr resolutionrt.o Greig)see
he proposed was as
follows :—" Resolved, that the Bank of Manchester be not
dissolved ; and that the directors are requested, at the earliest
practicable period, consistently with the interests of the
bank, to lay before the proprietors a list of all the debtors,
with the amounts owing by each individual, together with a
full statement of all the circumstances connected with the
mismanagement thereof."
Mr. STUBBS seconded the motion.
Mr. CHARLES SMITH asked Mr. Greig to what part of
Mr. Roberts's speech at the last meeting he referred ?
Mr. GREIG replied that on that occasion Mr. Roberts
stated that, to shew Mr. J. B. Smith's confidence in the
bank he had ordered some American stock to be sold, and the
proceeds to be invested in the shares of the Bank of Man-
chester, which were then at a discount. In the same letter
he (Mr. Greig) understood that Mr. J. B. Smith requested
those shares to be paid for by the
money of the Bank of
Manchester ; but when he found the bank was not in a situ-
ation to advance the money for the shares, he requested the
transaction not to be proceeded with.
Mr. CHARLES SMITH, in reply, entered into some de-
tailed explanations; and he read the lelter from his brother,
Mr. J. B. Smith, to the shareholders,
from Grafenberg, in
Austria, referred to Mr. Greig. In this letter, which was of
great length, Mr. J. B. Smith acknowledged to hating been
greatly in fault, whilst he was a director in conjunction with
Mr. Roberts, in not paying greater attention to the interests
of the shareholders—that he had long been aware of the
mismanagement of Burdekin, and wished to get rid of him.
Mr. STUBBS, after reading some portions of the evidence
before the Commissioners in Bankruptcy under the fiat
against Burdekin, which showed a complicated and ruinous
series of bill transactions, called upon the directors to state
how much had been lost by Burdekin, and how much by
Messrs. Potters. He intimated that some machinery had
been purchased with the money of the bank, by one of the
directors who was alderman of the borough ; and he con-
cluded by mentioning that no less than fifty-eight ladies, who
had invested their property in this bank, had lost all through
the mismanagement of Messrs. J. B. Smith and Burdekin.
Mr. G. R. CHAPPELL, in reply, said he never was upon
the managing directory; and he wished for a distinction to
be made between those who were simple cyphers at the
board and those who had the management of the money
transactions. He had paid £l5 premium upon upwards of
1000 shares; and, after that, he had bought others at £8 10s.
At the present moment he was a loser of £25,000 clean' by
this concern. At the same time, he felt more for the dis-
tress which had fallen upon numbers of his fellow townsmen,
and upon females especially, than he did for his own loss ;
and if anything he could do or say could repair the damage
he would do it. His character, he trusted, stood unim-
peaehed. He had never owed the bank £2OO at one time ;
and he had never known the state of any gentleman's ac-
count except his own. The fact was, that the bank always
had money of his in its hands ; and for ten years the average
amount which it had had of his had been £3OOO. The only
fault he had to find with himself was a misplaced confidence
in the managing directors.
Mr. STUBBS asked Mr. Chappell, why, if he was a cypher
at the board, he took the money paid to the directors for
their attendances ?

•
Mr. CHAPPELL said he had often given the explanation
more than once. Out of the body of directors, for the
management of a joint stock bank, three should always be a
part for the special purpose of looking into the accounts.
This was a general custom with joint stock banks. Theother
directors knew nothing of any transactions whatever save
their private accounts ; and, indeed, they got their informa-
tion of any loss from the public, and never at the board. It
had been reported that a private ledger was kept at the bank.
This was so, and the directors insisted upon its being placed
before them ; and, on examination, it was found tbat the only
name in it was that of Mr. George Wood, for a number of
shares which he had bought. In short, this private ledger
contained only the salaries of the different clerks and Mr.
Wood's shares for
it was convenient.
for which he (Mr. Chappell) supposed Mr.
Wood paid whendriesjsr•
edWthlLeLslhehAalrlSomldelTril, th
s in answer
Mr. Stubbs. He hoped the meeting would favour him with
emanagtiongthdeirector, questions then
put ad-
dressed
attention for a few moments, whilst he said a few brief
it
tourds in answerllimnortanttthoutthtehqeyuesshtoiounlds onf Mr. Stubbs.
ometo aright He thought
understand-
ing, as to their relative position, because the insinuations
thrown out by Mr. Stubbs, not only upon the present
rubbs knew—of
bank. w— o f course
He
(blr.
M he
occa-
sions, but at the last meeting. of unwillingness on the part of
the directors to answer the questions proposed to them re-
quired some comment. Mr. Stubbs
must know—that the present board of directors were, as a
board, by no means the same body of gentlemen to whom the
sharehoiders might attribute, with different degrees of blame,
the mismanagement of the
Bff4is of this
Smith) therefore wished the meeting to understand that the
present board claimed to stand upon the platform of perfect
(clihrboard's) to
equality with the rest of the shareholders, and a perfect ex-
emption from blame. (Hear.) He felt it was their duty
(the board's) at once, and without reference to Mr. Greig's
motion, to say that it would be quhietaerd.)uentoethtehosuhgahreth, omldoerres.,
when it could be done consistently with their safety, to give
a full and particular account of the manner in which their
over,
yithwasdsbteheenir dutylost.
be prepared at all
times to give the shareholders an answer in reference to any
eactions g
sof s
itheir
the
nii
misfortunes own—thatforwnaes to say any part of their pro-
s
of the bank had been made
known. (Hear, hear, hear.) They were legitimate subjects
of comment, and the directors ought not to shrink from giv-
ing proper explanations; but, he did, at the same time, say,
tthhoatsethdeisyelmosuustrebs, which might be either prudent or e permitted to exercise a sound discretion in
impru-
dent with reference to the mismanagement of other people.
(Hear, hear.) Whilst he was quite free to answer any ques-
tion fairly and candidly, and to state all he knew in rela-
tion to Mr. Burdekin's account, he would just tell the
Ishareholders that the examinations which Mr. Stubbs
had read, or portions of them, were just the description of
subject on which it would be exceedingly unwise for him to

offer any explanations upon, for there were two heavy actions
at law to be tried at Westminster arising out of those exami-
nations. That the directors must be, also, consistent in all
the statements which they might make, and had made, he
would read• an extract from their report made in October
last. They then said, " The directors are sorry to be obliged
to report that Mr. Burdekin has recently absconded, and
that he has misapplied the endorsement of the bank to his
own purposes. It has not been possible to ascertain the ex-
tent of these fraudulent transactions; but the directors are
in hopes it will not exceed the amount for which his sureties
are liable, and no exertions on their part shall be wanting to
bring Burdekin and his confederates to account." The
amount the directors had then discovered, (and it must be
borne in mind that this report was written ten days after
Burdekin went away, for he went on the 4th and the meetir

was held on the 15th) was somethinilikel6,soo of bills,o.lCVl.ll to
which allusion had been made by Mr. Stubbs. But on
making up their accounts to the end of December, the di-
rectors found a great many accounts with which the frauds of
Burdekin appear to have been interwoven ; therefore it was
only upon a thorough analysis with the parties themselves,
that they could ascertain the exact amount of these frauds.
They had now, he thought, ascertained them to the full
extent, and they amounted to £15,000, or within £lOO
of that sum. (Hear, hear.) They had his securities, as
they believed and thought, for £9,000; he might, however,
tell them that two of the gentlemen who were hi
securities for £4,000 each, intended to dispute their
liability, therefore it was just possible—though he could not
see upon what ground they could honestly dispute it—that
they might fail in fixing them with it. The amount which
was at risk, in respect of the frauds of Burdekin, was
£15,000 ; he owed also to the bank about £15,000 more, but
that, of course, was a mere subject matter of account, and
not one for which the directors could at all call upon his
sureties. That was the amount for which, when the proper
time arrived, they would be in a position to prove upon his
estate, as well as any surplus loss after the question had been
decided with his sureties. The proof upon his estate, at pre-
sent was incomplete. He (Mr. Smith) thought he might as
well—although the question had not been asked—follow out
the latter part of the paragraph from the directors' report,
that every exertion should be made to bring Burdekin to
account. The steps taken were just these. The moment he
went away, the directors took the best legal opinion they
could get as to their ability to bring him back; they found,
however, that the offence he had committed was a misde-
meanour only, therefore it was not one of those offences
contemplated. by the treaty between the United States
and this country. They had hoped, however, that when
the forty-two days had elapsed, and be had not surren-
dered, be would then have committed a legal felony ; and
the case would then come under the terms of the treaty.
Upon the day succeeding the expiration of the time, they
applied for and obtained, after a very great deal of difficulty,
a warrant, signed by the magistrates in Manchester, for his
apprehension ; but their own lawyer advised them, and the
common sense of the thing addressed itself so forcibly to
their own minds, that there was a very strong doubt as to
whether it would be held to be felony; being a mere legal
felony, there was a strong doubt whether it would be lookd
upon as a felony in the United States ; and the board, con-
sequently, did not think it would be well to go to the expense
of sending out a special messenger with the warrant when
great doubts existed whether it would be received. They,
however, sent out a warrant immediately to their friend Mr.
Stell, who had the interests of the bank at heart, and he had
promised to look after Burdekin, requesting bim to address
himself to a competent authority in the United States to see
whether he could legally act up3n that warrant, and if he
could so act, he was to be at liberty to place Burdekin in
custody, and send him to this country. Mr. Stell, in com-
pliance with the directors' wishes, laid the matter before
Mr. Randall, a well known counsellor in the United States,
whe gave a decided opinion that nothing could be done in it,
because, to make it an offence which would entitle the bank
to have him given up under the treaty, it must be such an
offence as would be a felony in the United States. The bank-
rupt law of the United States had no such clause as that
which we had in our law ; there was no felony in not surren-
dering; and, therefore, there was no offence committed for
which he could be delivered up under the treaty. Mr. Stell,
however, was at all times prepared, if he could, to take ad-
vantage of the provisions of the treaty, or to proceed by
civil action against Burdekin whenever he could find him.
These were the steps which the directors had taken ; they
were the only steps in their power to take ; and in taking
them they had fulfilled their pledge to the shareholders on
the 15th October last. With regard to Messrs. Potter's
account, that was precisely one of the cases which it was not
for the interest of the shareholders to go into.
Mr. STUBBS said he considered these statements very
satisfactory.

Mr. MILLINGTON, Mr. SANDARS, Mr. CHARLES SMITH,
Mr. DYER, and Mr. GREIG next addressed the meeting on
some matters of detail which have been already before the
public. Nothiug new was elicited.
The CHAIRMAN having put Mr. Greig's motion, it was
unanimously carried.

This being all the business, the shareholders separated
The proceedings occupied about an hour and a half.

GOOD NATURE.—With the possession of every good
quality, an excess of good nature, while it may appear the
most estimable of all, will often render the whole nugatory.
The Priam of Thought.

A young man, of the name of Berningham, was killed on
the Greenwich Railway, on Wednesday. He was looking out
of the window of the carriage, and had his head and part of
his body out when he came in contact with the roof of a new
station, and he soon afterwards expired.
The Waterford Chronicle says that there is at present a
case of " Estatica" in the Rev. Mr. Foley's Magdalen
asylum, or house of refuge, at Youghall, similar in all re-
spects to the one familiar to the public by the Earl of
Shrewsbury's description.

PORT OF NEWCASTLE.—The following is an official return
of the duties, as registered at the customs :
Customs' duties received in 1841 amounted to £409,815
Do 1842 .... do .... 432,787

Being:an increase in 1842 of.

£22,972