New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1856-10-09

policy Of 1854 and lc,6 is the offspring of the coup
d'ttat Of Bonaparte Yet il canno. be denied that
they are innocent Of the breeding OF that curious
mixture of Imperial Socialism. ST. Smonistic stock
jobbiDg and philosophical swindling which makes
up what ia called the Credit Mobilier. In strong
contradistinctOn to this continental refinement,
English speculation has gone back 10 is coarsest
and most primitive form Of fraud. plain, unvar
nished and unmitgated Fraud was the mystery
Of Paul, S.rahan q Bates; Of the Tipperary Bank
of >adler memory; of the great City operations of
Cole, Davidson & Gordon; and fraud is the sad
but simple tale of the Royal British Bank Of
London.
For set If directors 10 eat up cOmpanys
capital while cheering on It's shareholders b. high
dividends and inveiging depOstors a1d fresh share
holders by fraudulent accounts no high degree Of
refinement is necessary. Nothing is wanted but
English law. The case Of the Royal British Bank
has caused sensation. not so much on accoun, ot
the capital as on account Of the number of small
people involved. both among the shsrehod-
er, and depostors. The division OF labor in this
concern appears to have been very simple, indeed.
There were two sets of directors, the one content
to pocket their salary of $4,000 year for know
ing nothing of the affairs of the Bank and keeping
their consciences clear the other intent upon The
real direction Of the Bank, On 10 b. its first Gus
toners or rather punderers. The latter class be-
independent for accommodation upon the manager,
at once begin with letting the manager accommodate
himself Beside the manager they mus. take inc
the secret the auditor and solicitor Of the Company.
who consequently receive brides in the shape of ad-
vances. In addition 10 advances made TO them
selves and relatives in their own names, the drec
tors and manager proceed TO set up a number OF
meu Of straw, in whose names they pocket further
advances The whole paid-up capital amounts now
to $50, eco, of which f12l $40 were swallowed
directly and indirectly by the directors TIE founder
Of the Company, Mr.. McGregor NJ 7. for Glasgow,
the celebrated statistical writer, saddledthe company
with e. .362; another director and Member of Par
lament, Mr. Humphrey Brown of Tewkesbury,
who used the bank TO pay his electioneering ex
penses, incurred at one time Liability to it of
go COO and appears to be still in its debt to
the tune Of 10000. Mr.. Cameron, the manager,
had advances TO the amount of 100000.
Every year since the bank went in operation, il had
been losing $50, 600, and yet the directors came
forward every year to congratulate the shareholders
upon their prosperity. Dividends Of six per cent.
were paid quarterly, although BY the declaration of
the official accountant, Mr.. Coleman, the share
holders ought never TO have had dividend at
all. Only last Sun mer, fallacious accounts to
the extent of over $50, 900 were presented 70
the Shareholders the advances made to McGregor,
Humphrey BrowD, Cameron & Co., figuring
under the abstract head Of Convertible Securities.
When the bank was completely insolSent new
shares were issued, amid glowing reports of its
or, gress and a vote Of confidence in the directors
This issue Of new shares was by no means contem-
plated as desperate of relieving the position
Of the bank, but simply to furnish fresh material
for directorial fraud. Although it of the
rules Of the charter that the bank not to
traffic in its own shares. it appears to haze been
the constant practice to saddle IT, by way of Sc
curity, with its own shares whenever they hsd
become deprecated in The directors hands The
way in which the honest portion of the directors
pretend 10 have been duped, was told By one OF
them. Mr.. Owen, at a meeting OF shareholders, as
follows:
Wien oil arrange -f't ' ti,f ne tins concern
had been made Nr. iI.. %: 1pp 'lntcl our man.
aeer. and soVnf tn! coz e. ga! pt having man
sger who Lad rcver p'c,.ur-! been connected with
any bank in LONDON. il of that circumstance
srose MURDER of dlficultcs | will state what &C.
CURED two years and months ago when left the
bank. Why, shortly before that time, did not know
that there single shareholder Indebted to the
bark 10 the amount of 10000. either for discount or
advance. at one time heard whisper OF some COM
plants that there large sum due by of them
on Of discounts, ana asked one OF the book
keepers a. to the matter. was told that when shut
the parlor door had nothing TO do with tue bank NJ
said that director must bring his own bills
TO be discounted before the Board. He sad that such
bills should 20 the general manager for If they were
brought before the Board we should never get mercan
tile men OF high character to bank with us. In this ig
noronce was until one OCCASION when Mr. Cameron
taken dangerously i'll that he not expected
to recover In consequence OF his illness ths Chair
man and some Of tie other Directors made some inqu
res which disclosed to US that Mr. Cameron had
book with private key which We had seen.
When the Chairman opened that book we were all in
deed astonshod."
1t is due TO Mr.. Cameron TO say that, without
waiting for the consequences of these discoveries,
he, with great prudence and prompttude, expa.
trated himself from England.
One Of the most extraordinary and characteristic |
transactions the Royal British Bank was its con-
nection with some Welsh Iron Works. At time |
when the pad-up capital Of the Company amounted
TO but 10000, the advances made to these Iron |
Works alone reached the sum Of 10000 to
$4,000. When the Company first got possession
of this iron establishment it was an unworkable |
concern. Having become workable after an IN
vesiment Of something ike $50, 900, we find the
property in the hands of Mr.. Clarke, who, after
having worked it ''for some time" threw it back |
upon the bank, while expressing his conviction