The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1855-11-24
TRIAL OF PAUL, srRAHAN & BATES.
APPROPRIATION OF SECURITIES
TIE BRITISH LAW AGAINST scBUYLERIsM.
CHARGE OF THE JUDGE.
4 Baronet and I've Leading Londoners Sem
fenced to n Years Transportation.

From the London Times, Oct ~ and ISL
CENTRAL CRIMINAL COURT-oLD COURT.
Or 26.--Ihis morning having been specially appointed
Spr the trial of sir John Paul and his partners Messrs
straLan and Bates for Illegally dsposing Of securities to
. large amount which had been entrusted to them as
bankers for safe custody the court filed vt early
hour by persons anxious to hear the proceedings.
han, John Dean Paul and Robert Mekin Bates surren.
ssred and were placed in the dock.
At 10 O'Clock the learned Judges Mr.. Baron Aderson
Mr.. Baron Martin and MIR. Justice Wiies took their
seats upon the bench. Aldermen Sir Il. w. Garden and
stone accompanied their Lordships great nunber Of
gentlemen connected with tho banking and mercantile
community also present.
The Attorney General, Mr. Bodkin, and Mr. Poland ap-
peared for the prosecution: Sir F. Thesger who sps
esny retained and Mr. Baantine appeared for the de-
kncant Strahan; Mr.. SERGEANT Byes and Mr. Hawkins
we're specially retained to defend Sir John Paul. and Mr..
e. James, Q. C., also specially retained and Mr. Parry
appeared for the defendant Bates.
Mr. sleght the deputy Clerk of Arragns then read the
INDICTMENT which alleged that the defendants had
ed on the & IN sSas ss
without any authority to pledge, sell negotiate the
bonds SO intrusted them they had, contrary to good
faith sold and converted them to their
In oil er counts the defendants were charged with
having sold the bonds in question, and with having
sotiaed them, and they were also charged with
spiripg together with the same object.
The defendants having pleaded mot guilty."
The Attorney General then addressed the learned
judges and the jury He saidI have, on the present
occasion, painful duty to discharge in ing
sa,n If very serious character against defendants
this neutrality-suspicious. known to most of us, and
Who have hitherto maintained high position in society,
and Character of upquestoned integrity and h1uor
which prevented them from being supposed capable the
offence with which they charged. The present
charge only involving penal conseq uences OF
great magnitude but also aec ing the honor charac
ter Of those gentlemen at the bar. You
that The DEF carried on Tor some time the
cient date large, AMI enjoyed the
confidence of highly numerous BODY of customers.
bepdary Rochester opeoed an account with the then
firm OF Snow Paul Co., in 1880. In 1888 Snow retired
firm. subsequently Sir d. Paul. the father Of the de-
kneans Sir j. D. Paul. died. and from that period the
Dr.. Griffith continued the account he had opened wi h
the firm Of Snow, Paul Co, in 1880 until the
transaction, the subject Of inquiry occurred. He
was gentleman u great fortune and character, and
employ ed the Defendants bankers to invest money for
hun from tine TO time in public and foreign securities
The present inquiry relates to some Of those securities
audulenty disposed Of by the defendants ia
ton Of the statute which makes it penal to dispose of
surises placed IN their hands for safe custody. Among
these securities were certain bonds issued by the Danish
government bearing interest ut the rate Of five per
and will conine my present observations entirely to
those securities they form the subject of the present
inquiry. seems that three several occasions DR..
Griffith employed the defendants to invest money tor him
raised loan and issued bonds security to
the persons advancing money. In January, 1850, DIR.
Griffith instructed the defendants to invest for him in
these Danish five per cent bonds the of G2 900.
Whether he gave written order that occasion Is
distinct Of That and no or np
had been found but nothing turns that pointfor it
quite clear that he gave authority to make the pur
chase. Accordingly stockbroker in the city did pur-
chase, behalf Of Dr. Griffith th.t amount. The bonds
bought the ID of February 1885, and after
wards delivered ut the bank of the defendants. They
80 z55 and 45s DR. Giaith was forthwith deblted il,
The books Of the bank with snm Of 81 002 los, which
the amount paid, including the commission for the
bonds bought The next transaction in the month
q April Of the year, when Dr.. Griffith author
ised the defendants 10 invest another of 81 co.
In the securities. On that occasion the defendants
eave the or or to Messrs Sims and HILL stock brokers'
and he MT mad nd
TO hedefendan.s' banking house in one bond The num-
Der Of this bond ST. and the defendants debed the
prosecutor In the books OF the bank TO the
Ross los. Their third transaction Ia 1851, on
that occasion 1t i quite clear that writ order was
given by Dr. Griffith 10 the defendants. That has been
found and it IL order desiring the defendants to invest
f2,O00 in the securities before mentioned. The
Hill to purchase the amount and the latter did the
10th Of April and forwarded the bonds the 10th to the
banking house The bonis consisted of two Of fI0O
each numbered 426 and 573; two of f3o0 each number
Cd 1893 and 194 and six Of fI00 number cd $751; $50, &c.,
66 662 and $685. FOR this purchase The prosecutor was
debited In the bank books Of the defendants CO 03T los
These several bonds purchased by the defendants
through the brokers these three several occasions by
the express authority of Dr. Grith. The defendants
gasry received the dividends these bonds they
due, and credited in their books DIR. Griffith with
them. They received the dividends from tme 70 time
and continued 10 do until the 1st Of March, 1854
appears thai at that time the firm Of St,ahan Co had
got into certain difficulties, and had to the dos
they held in their hands belonging their customers
for the purpose of raising money to meet the necess
March, 1854 Sir ]. Paul applied to gentleman of the
Of Beatie, secretary to company called the Ma
Sebn e ana Sum a s
these bonds Mr. Beattie, however answered that the
company did not advance money on such securities upon
which Sir j. Paul asked him ii he would dispose OF
Of there securities In order to raise the money Mr..
Beatte consented to this transaction and took some
u the securities from Sir j. Paul and placed them In
Che bands Of Messrs. Foster Bsahwaite, broke in
the city, for the purpose of sale Among these ecu
rifles were the very bends, the numbers Of which
have enumerated, and which constituted security for
5000 These were placed BY Mr.. Beattie in the
on the following day, the 10th March. Messrs.
Foster Braithwaie gave their ch"ck for the
q as sale t. Mr. hs sans The r. the
being crossed, Mr. Beattie unable get 1t immeii
ateiy casbed hand the proceeds to Sir j. Paul
check he had RI ceived at the ne account ot
proceeds from other securities not Germ with this
avor OF Sir Paul, and gave 1t Sir J. Paul There
doubt but Sir j. Paul received the money
Of that check and made II available for the purposes
the firm. Therefore so far as Sir J. Paul is concernei
there can be no question Of his completely in the guilty
81 s & or tn .s Which viii A
made perfectly clear by the evidence thai Sir j. Paul IN
his partner had authority direct indirect, from
Dr. Griffith TO sell or otherwise dispose Of these secur
tica They had been deposited In their bands being
The bankers Of DR.. Griffith, for safe custody Nevert
ss Sir j. Paul do dispose of tbem and carried the pro.
oeeds, not TO pr. Grith's but TO his
Therefore far a. Sir j. Paul Is concerned the Is
DESCENDANTS what Was Of their knowledge Of the
transaciionY That must be shown by other .vi ence.
This Transaction took place in March 1884, and in the
Month Of June in this year the embarrassmens Of the firm
became great that II was impossible for II !, e. on.
accordingly stopped and became bankrupt On hear.
ing this, DR.. Griffith who had at the time f22, 600
worth Of securities in their hands became considerably
alarmed and Immediately put himself in communication
With the Off al assignee and asked what had become
OF his securities The official assignee proceeded to tn
banking house, and inquired about them. He was tol
ny Mr. strshan in the presence of Mr.. Bates that IN
securities were either sold pledged He then aske
whether In any book the securities Of the customer
were recorded and Mr.. Strahan and Mr. Bates looked
another and he got no ans yer shortly aferward
Mr. strahan proceeded TO DR.. Grifitb who In the
meantime had laid criminal information against the
partners Mr.. strahsn acknowledged fully that the se
cu,ies had been disposed % With BIS knowledge and co
operation, but urged most anxiousiy on Dr. Griffith
6orego this prosecution and not 20 adopt ANYTHING like
criminal proceeding Dr. Grifith observed that no ha
public duty TO perform and that, however un siln
he might feel 20 act hos,ey towards gentlemen With
whom he had been acquainted, he had alternative