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This item is filmed at the reduction ratio checked below/ Ce document est film* au t?ux de r*duction indique ci-dessous. JOX 14X 18X 22X 26X TT 30X 12X 16X 20X 24X 28X 32X Th« eopv filmed h«r« hM b««n r«praduc«l thanks to th« ganaroaity of: Memorial Univarsity of St Johtfu L'axamplaira film4 fut raproduit grftca A la g*nAroaiti da: Memorial Univereity of St. John'i Tha imagaa appaaring hara ara tha baat quality poaaibia considaring tha condition and It-jibility of tha original copy and in kaavirg with «o-^B. W. H. C. W. II. C. 'w. H. C. W. H. C. VV. 11. C. W. H. C \V. II. C. \V. II. C. W. II. C. W. 11. c. W. II. c. \V. H. C. W. 11. C. w. II. (;. W. II. c. W. II. c. W. II. c. \V. II. c \V. II. V. W. II. c. List of Exhibits. -Silinilts Prodnced ind Glreo to Evidenci bj W. H. CROWDT, :o: 1.— (icneial Statiiiu-iit of tlie affniix of the Union Hank for ^ear ending :jlst >Iav. IHfW. 2.— 59th Annnal Kcpoit, .Iiino 17th, ISU.J. 3.— Balanci- Sheet Boo!;, lS9:i. 4.— Copy of .Minutes, .huw Stii. ISiKJ. o.— Copy of .Minutes, June IGth, 189;J. 6.— Copy of Minutes, June 17th, 1S9:J— Annual Meeting. 7.— Extiaet from Uahuiee Sheet, 189;j.— tie tails of item :} Asset Side. ' 7.J._Gi.,M>niI Statement of the affairs of the Union Hunk for year ending :!lst .May, 1891. ..^ W. — 10th AnnuaJ Report. June Kitii, 1894. . —.—Copy of I'roHt & Loss a/c.. May .'Jlst 1.S9-1. 9.— E.xtract from the Individual Ledger. 10.— List of Debit Balaneis, .\ov. .'{O, 1894. 11.— Statement of Director's lialnlitiis May aist 189.'}. 12.— :Memo. of Kxchaiige for same in Treasury, Mav .'ilst. 1891. ' J' •> ^") * Hi. — Memo, eash hook. 17 — (iuaranlee of M. Dfa. 18 & 19. — Minute M.iok fur I8S»|. oo._statement of Notes falling due in favor of .^ -ectoi-s (Maine, .lohnsKm, & Co.) IS.— Tht- «iiiiie for ISW. W. U. C. 2U.— Di>cutiiit Book, Local Bills Uiicountwl. W. II, C. 27. — StaCtiiu-iit showing^ yi-arly bahiiic*?i« of Voce* niiininy fr«>ni 187.> to 18W (Harvfy d: Co.) W. II. C 28. — t'o|»y of Kfoc-rvv Fund n/c. t— Eihiblts Produced and Given is EtideKs by CHAS. S. PIRSEST. -:o:- C.S. C. S. C. S. C. S. C. S. C.6. c. s. C. is. CVS. c. s. c. s. C.S. as. c. s. c. s. C. 8. C. S. <;. s. c. s. C. 8. c. s. c. s. c. s. c. s. c. s. c. s. c. s. c. s. c. s. C. 8. 1 :* 4. •'t. (5. 7. 8. 9, 10 11. 12, 13 14 15. Hi. 17, 18. 19, 21). 21. 22 2.J 2G, 29. :K). 31. :J2. .33 31, 3r,, & 2. — 2 .Miniuc BookK from 1880 to present timt-. —Copy of Mimiti's Oct. 1881. — Copy of Mlniitcii Juno IGlh 1884. Copy of Minutes April 18th 1889. Copy of Minutes June 2."ith 1890. Copy of .Minutes Dec. 9lh 1891. —Copy of .Minutes May 2nd 1892. — 8tatpnient of ti»e pmfits for 1894. — .3 Leiteis from \V. B. G. mai ked A. B, C. — Baine & Joiinstop.'s Letter, Murcli 21.st, 1894. — Bainc & Joiinston's Letter. May 7th, 1894. — Letter Goldie to Grieve, March 27tli 1894. —Letter Goldie to B. & .Johnston, April 10th 1894. —Letter Goldie to B. & Johnston, May 18th 1894. ,— Litlei' Outerbridjjre to Pinsent, June 13tli 1894. . — Letter Harvey t(i 'riiori)nrn, I'res. June 9th 1894. —Letter Harvey to Thorburi.. June 20th 1894. , — List of shr.res transferred, June 17th 1893. -Statement of profits for N'ov. 1894. — Analysis of profit & loss aect. to May 31si 1893. , 23, 24. — 3 Mortsjajres from W. B. CJrieve. — Statement of piofits to May .31st 1893. 27, & 28. — Statement of Tiiorhurn & Tossier'* business. —Letter from Harvey, Au-r lOtli. 1891 — L'eply to above. Auj;. 31st. 1891. —Letter from Harvey. .Vpril 20th, 1893. — Heply to abrve, April 31st, 1893. — Slii) found in letters in Union Bank. —Letter from Thorbuni. Dec. lij.h, 1891. — Statemeni of the Sale of American Securities. \ > I I'S. S— Eihlblb ProdDMd md Clien lo B?ldenM bj Wl. f . I4TS0I. W. W. W. 1.— General Stutenient of affnini o* Union bank on DecfiubiT 3l8t 1894. W. T\ . W. 2. — Gfneral Statemf^t of affairs after ■ppiifiiniute udju»t- ment l-l\change. *.— bililblts Pfodoced ud Gl?en In E?iJenM bj JIIES CORDOH. :o: •I. G. 1 A 2.— Exchange passing bclweeu Munn and IJi-inu-tt through Union Bank. J. G. 2. A to v.— Receipts ior Exchange. J. G. 3.— Keinittance to C. T. Bennett by Union Bank for Civdit of J, Munn & Co. J. Q. 3. A. to Z.— Reiueats for iraftt froiU I. Miitin & Co. u, Union Bank. J. G. i.— .Monthly Balance Sheet for the year ending^lst May. 1893. J. G. S.—Letter from C. S. Pinsent to McRsm. Thorburn & Testier March 23rd, 1895. J. Q. 6.— Letter fiom Thorburn & Tessicr to C. S. Pinsent. March 2'";th, 1895. J. G. 7.— Letter from C. S. Pinsent to Messrs. Thorburn & Tessier. March 25th, 1895. J. G. 8.— Letter from Thorburn & Tessier to C. S. Pinsent March 26th, 1895. J. G. 9. — Inventory of Stock at Fogo. J. G. 10.— Remains of stock at Twilliiigate. J. G. 11.— Gross Statement of Stock at sundry places. J. G. 12. — Account Current BrK)k. .T. G. 13.— Union Bank Statement of (.'apifal. Reserve and Over- drawn accts., from 1870 to 187G. J. G. 14.— Sir Robert Thorburn's Acct. with Uniow Bank from 1889 I J 1892. J. G. 15.— List of shares transferred. fro?ii Jany. 1892 to Dec. 1894. J. G. IG.— Current Acct. Credit balances and Deposit ReceijHs 1870 to '76. J. G. 17.— Statement of Bills of Exchange of certain firms runniu- from 1870 to 1S76. ° •F. G. 18.— Statement of interest on account and on Xotes discounted and the profit on Sterling Exchange in Thorbin-ii and Tessier's Acct. from 1888 to 1894. J. T. G. _V.-St.Ue B.— Exhibits Prodaced and GiJea in Evidence by J. T. GILLARD. -:«:- inrrit showing laigesi iiidebfedness at any one time of certain firms. wii . i iii m I i p i ij ■" Ill— ^iPB^I^f I i I I -■* i f ' J. T. O. — M. — Stntfiiicnl ^linwins; lnr};v>^ iiuIcbtedii«M tn Bank on CuiTciit Acct. A-f. J. T. O. !.—(nt of 31st of May 1804. J. T. G. 3.— Amount of iimmi-iMtry notes of Thorbnrn nu(( Ti'»#i»*r and John Mnnii <& Co.. nnd which ilnrvfjr & Co.. and A. Ilarvfj- & Co. wt-re i-r.dorst'ni. i-Exbibit Produced and Giveo In E?ideDCt bj J. I. GRElTi ■:o: J. M. C». 1. — Annual Ki-puit and Jstatemont of the Bank of Montreal, ldU5. T.— Furlliet Exhibits Prodaced tnd Given in Erldence by f . R, CROWDT. :o: \V. II. C. (n) — Memo showing total amt. of promissorj Notes paid by each of the firms. W. II. C. (6)—.!. V. Furlong's letter, -Fany. 29. 1892. W. H. C. (c)— L. O'B. Furlong's letter. Jany. 29, 1892. W. H. C. (rf)— J. P. Furlong's letter, Jany. 29tli 1892. W. H. C. («)— A. S. Hcndell's letter, 3rd Oct. 1889. \V. H. C. (/■) — Statement of L. Parker's .\sset8 and Liabilities. W. H. C. (g) — Outstanding adventures, J. Munn & Co. i. -Eiblblt Produced and Giien in Eridence by W. E. STAYERT. :o: W. E. S. 1. — TrH«tec»' statfracnto of Thorburn & Tessier's affairs. 1 _/ •• • I TWEx«min«iion of Wii.i.iam II. Cmiwnr, of St John'*, CashMr ot the Union Bank nt NeMrfoiiiiiltanU, taken u|ioo oath, lio m**: ** t am th« Acmnntiinr of the Union Kank. anit in calli.il the - Vniinnl U.|m)iI for" ih- jear, as thv year may l)c. It in pivparod by the Mana^rer from tlie Balance-sheet of the Bunk. The Balanct-Sueet iit anhniitteil to the Directors of the Bunk; they H«e it and check it off from the Ciencral Ledger. ** We take a Balancc-Sheei before closinjf the look*, and one after the closing^ which i» on the .iUt of May.)a« a matter of nraetite. That ik taken off by the Accoinitnnt or peison aeliiijf for him. We Uke a oimilnr Bitl.nnce-Shect every month to the one taken before the closing. The Balance-Sheet taken after the elosini,' of ti»e books in after distribution of profit*. It is fr„m the one shewinjif tlv distribu- tion of profits that the Animal Report and .Statement ai-e taken and nade. The BaJmice-.Shcet and Annual Statement agree — that is, the ■eeond Balancc-Sheet. •♦ In May, 1893. t» ■ General Statement wan made (as nsuni, a« imr aa I know), by Mr. Goldie. Mr. Goldic was Manager. The Di- rectors in 1803 were Sir K. rho-burn. Mr. Ilnrvey, Mr. Grieve, and Mr. Donnelly, all now present, and Mr. Mann, since decea-ed. I'he paper writing now put into my hands is in th« the practice to produce the Aiv.Sui Statement at the Annual Meeting. "The General .Statement pni|>orts to shew the liabilities of tin- Bank and the assets of the Hank." (Thi, evidence was objected to. and J.imes Gordon was called t. prove pnldieation. Vide his evi-' dence, post.) •• Looking at the liabilities of the Bank in '• W. H. C. l."the first item is "Proprietors' C'aintal," the s.-eond is •• liesJrvc Fnnd,"(he third is •• IVotit an.I i,oss. (Undivided I'.olit)," the fourth is « Bank Notes in ( ireulation." the fifth is •• Am.mnts due by Hni.k including d.-posits"; the sixth, seventh, and eighth an th, distribution' of the Dividends. And the amount of the Liabilities of the Bank is f4,7oO,7f)8.:i3. - The Assets, (irst item, are " SiK-cie." I believe the amount to be correct. The second item is " \„tes of other Banks." I believe i' to be correct. The Ihir.l item, .>J2,30:J.72S.1(), is •• Bills Discounted, uoans, itc." (The Balance-sheet Book. 18!).{, is here produced.) "I note the balance for 18!»3; the final balance lor 31st Mav 189.3 is to be found in " W. n. C. 3." now put in. The diffe.cnJe between the M..Ul.lil8.(il and the figures cheeked off by the magistrate and marked "J. G. C." are madi up of F<.ivign Securities. Looking U . ■ ■ ' . ' iU^ rmi^mf'wimtmicwrt 111 » mi 1 if 3 S 4 i i i i J i 1 :| *• back at the Stiitoipent for 1S9:}, the entry " CillsJ)i«c<.niite(I, Loans. &c.," ;?L',;5ti;{,72S.l<), incliulcs Current Acconnts .■?1.74 Cr. of Exchange Account 312U 42 Making a total of . . . §984.>3 G7 " I am unable to make up the n-jt profits for that half year. There is no account in the Bank books for thai half -ear of the net profits. " 1 turn up my Minute Book for ISfKi. That is kept bv the Ma- nager. It is in his handwriting foi- 1893. For the 8th of June 1893 the minute is in Mr. t^oldie's handwriting." (The reception of this mmute is objected toon the ground that it is not signed bv the Di- rectors against whom it is offered.) " It is .signed by" Chairman Thorburn, now present." (Coi)y put in, marked •' W.II.C. 4.") (In tile same book the Minute for 16th of June, 1893, marked " W. II. C. o," is offered and objected to. The Minute refers to the Bubmission of ti.e A-iiuial Statement to the l)irectoi-s by the .Mana-er Th.- Minute of June 17th. 1893, marked " W. II. C. G." is a record of the Annuai .Meeting of .Shasebolders, and its admission is objected to.^ Witness' attention is called to a Mcmoranilnm, marked •• W. H. C. 7." whose admission is objected to.) " It is taken from the iJalanee-.SJieet, shewing in .May, 1893, the Local Bills discounted on hand on the 31st of Mav, 189.3, and over- drawn accounts at that date. It shows ilu. same in .Vovember, 1893. f made the copy from the Balance-She.'t. It shows the Local Bills discounted and the Current Accounts correctly. Local Bills di>counl..l and held 31 May 1893 came to.. $.39.3,309 79 Current Accounts overdrawn ainounli'd to 1,7G8,121 G8 In Nov. 1S9,3, Local Bills Disconntc.l amounted to '.>9l'9S8 27 Current Accounts to 2,318!27.-, Go .< „/?,^^^'''■"""'^ '"'"■'^''■•' " ^^'- "• ^- '^" (l'«^'^- 1' -'. :{. 4.) and U . n. C. 1. •• W. 11. C. .1." au.l " W. II. C. G." are correct copies made by myself from the books, and are correct as to figures. "I turn up IVolit it Loss .Vcc(mnt for 1S;»3;— the balance for the 3Ist of May. I8!t3, alter transfer, shews to cre.lit 89,2 H.G3. It 18 a correct cojiy of the Baianee-Sjieet. The balane- lor 1S9.3 is $1.),172.1.-, to cre < .. ., i .i • i • ■ • "• *^"' *• •""" »' • ll. C !<. and then- admission is objeaitic.x named "The Bahinee-Siioet-* (or Mayaad X(.venilH;r, 18!>4, arc contain- ed iu •' \V. II. C. .{." The Statement taken from Bahince-Sheet shewin," Local Hills disoonnted and Cnrrept Accounts overdrawn for May and N'ovendier is correct. I'he amounts are respectively:— Local Mills discr iited. May .'{Ist l,Sf)4 ^98,4()9!4L Current .\ceounts. s.inie date, 2,248.2n.4{). Local Billsdiseonnted, Nov. .JOth, 18i)4,ani't to ol!),8.82. The Cnirent .Veeounts amount to 2,792,471.08. "1 pro.luce a correct copy of my Profit and Loss balance, shew- ing ?7,.Sli».79 to the credit of that .Vccount up to May .•{1st, 1894. The Credit to XovenilHi' ."{Otli, ]S91. is the same. " In 1894 the H;,ik opened a Continjrent Account. (Jn 31.«t May 1894, the amount to the Credit of that account was .i!;W.O(M).00; and the same amount in N'ovemlier, Folio 24. (General Ledyer." (*'g''t'l) \V. H. ( 'HOWDY. Sworn before me at St. John's, aforesaid. I this Thirty-first day July. A.I). 189.->. \ (Signed) J. G. COXPOV, J.P. The evidence of Jamks Goisdox, of St. John's, Merchant, taken upon oath, who says: — "I am one of the i-.formants. I was present at the A:inual Meeting of the Union BauK Shareiiolders in 189;J. An Annual Keport and Statement of the affairs of the Unl.i) Bank for the Hnan- cia! year ending on the .Jlst of .May 1893, was read bv the Mana-cr, ana 1 took a copy of the items,— liabiiaies and assets.' I reco-uize the writings " W. H. C. l." and " W. II. C. 2," as Mr. (ioldie's writ- ing, and I believe this pape. iu my hand, (as above marked) is the Keport. The contents of tlu- Heport which 1 coj>ied are quite the same as tho^c in this !{. port, and 1 believe this to be the Statement which was read." Cross-Exnmitied by Mr. .Marine: •• I have been for sixteen or seventeen years in the habit of attending the Annual Meetings. 1 made a copv of the Statement. I have no. cnipare.l my copy with the Statement,— but I believe it to he a copy of that Statement. ! havf not recentlv com,,ared them, and I don't ulenfify this writing as the particular docum-nt read that day, but I id..ntify the contents as those read on the occasion. I cant ulentily the .locunu.nt as the one actually read at the meetin- I swear It had contents like that, and that it was signed by Jud-" Conroy, ' o j o u ...^/IV^IT""''.'^ ''•"•• "''J^'^" '""'■ ^" "'^' '■'•^•^''1" of this document. " \\.1I.('. I, 'and • AMl.C. 2." Mr. (ionlon is called to prove publication, and his evidence is taken as sullicient for jirima fmic proof.; ^'''K''i'l) JAMES (iOHDOX. Sworn befori- hk :,i St. ,ii,m\, afoivsaid, I this thiily-fiiM .lay of July, A.l). 18!t.-). / (Signed) J. Ci. CUXUOV, J.P I & The further Examination of William II. C'iiowt>y, taken ui)on oath thix Fir^t day of AiiffiiKt. A.D. 189.",. « In the GiMural Statimont fo;- ISO!?. " W. IT. C. 1." the Divi- dend of $27,.'}<)(l nnder iit'ad of Liahiliticr^ was paid to the various Shaivholder>-. The Dividend of .'?27.:M)0 for llie half-year endinj» on the .3Lst of May. 189.J. was Maid. ' To Bonus, !?18.(), for the half-year eudiuy; May .3ist 18&4, wasi paid. The Bonus N'o. IM5 for the year eiidin<^ May 31st. 1894, of $i:{.ti8(l, was paid in eiish. remitted, or credited. All the Dividends and Boiuises were either paid in ^ash or remitted, or ei'edited in account. " Of local Bills discounte.l. the lial)ility on the :nst of May, 1893, of Messrs. Harvey «S: Co. were §188.373. Their liability then on Current Account was .542, 18< ».()(>. " The liabilities of the Directors on the 31st of .May, 1892, or of their firms, were as follows: — (The acbnission of this evidence w,«8 objected to.) Harvey & Co., May 31st, 1892. Liability on Discountf. $291 ,857 00 Ditto on Current Account 5,244 3o Ditto on Furniture Guaranteed. . . . 18,480 25 Total ?31.5,.">81 (il Harvey & Co., 31st May, 1893. Liability on Discounts $188,373 00 Ditto on Current Account 42,180 GO Ditto on Furniture Guarantee 18,480 2.') Total $249,033 91 Harvey & Co., Nov. 1893. Liability on Discount $295,213 00 Ditto on Current .Vceonut 62,^87 35 Furniture Factory 19,0.37 14 Total $.370,437 49 Harvey & Co., May, 1894. Liability on Discounts $195,584 00 Ditto on Current Account 07,451 7(5 Ditto on Furniture 19,4. Liability on DiscovmU $2'i3,984 00 I)itto oil f uiiilture 20 IfMj 50 1'o'al • ?254,180 50 Less (Jivdit on C.'ui:-ent Account.. . . 127 32 Balanceof I,uirhtt(lnet.sf..rhalf3Tnr S2.>4.0.");j 18." (Mr. Johnson, Q.C., objects to Mr. llarveyV Account Ix-inij in- eluded m Dnccfors' discounts for 1894. ht- not In-ing a Director.) " Tlu' foiegoinjj liahijitius on discounts incliuuCnot only any lia- bility of Harvoy & Co. as inak.M>. of notes, but also an- liability a^ indorsers of notes of third paiucs. There wrs a credit to the account of Harvey & (Jnterl>rid-e, (1 believe the partners iu th > firm of Ilarvey & Co.,) closed on the 6th of September, 1894, amoununif to ?2(),(wo .14. It went to theii- cre.lit on that .late, and it reduced the cfiri-ent account on the 80tii ..f Xovember, and placed it in credit to $12< 32. On Januaiy 1st, 1894, tiie account of Harvey & Outer- bridge was in credit i?l.->,9(JG 48. and in the course of 1894 there were •ome half dozen credits up to the 6th of September." (AVitness has i.ot the Hguies, i)nt thinks that Harvey & (Jutcr- bridge was in credit at the various periods in 1893 and 1894 that the balances weie struck. Witness has his attention called to the account of Thorbuni & Te*ieier.) " 1892 xMay 31. Discounts, were $33,434 00 Ciiri-ent Account jgj jjq y^ Walter Grieve & Co 35;3os qj Thoibnrn &Tessicr Seal Oil 142,940 98 Exchange on Englisli Hanks, I Union Hank indorsed, } • • - 20,400 00 '^ofal »41 3,193 7fi Nov. 30, 1892. ^^'«<^"""t« $5,582 00. Current Account 246,508 88 Ay. Grieve & Co 19 26(i u Seal Oil Account gj 28G 10 ^"""'"Se 71,280 00 '•'"tal $^03,923 62 1893 May 31st. '•'*'<'"■•'""' $16,142 00 Current Account 280,610 ;}() AV. Grieve & Co 19 j,.,,, ^^ ^^•■''<^" 57,.W1 26 ^'^«*'""e*^ 78,240 00 Total $4.-.2,272 «i2 y .3^ a y ^ 11 ■■ ^ ■ j 79 82 Exchange 192,000 0(» Seal Oil Account 28.327 48 Total $.'ilJ.741 :<0 Baine, JohnMton, £ Co., 18!)4. Muy 31. J>iiK»«nla #18,783 00 C'unvnt Accouit 294,1 17 85 Exchange l(ki,000 00 Toul fl80,f)00 85 Xov. 30. DiscountH f JO,720 00 Current Account 4:«,(i0C 01 Exchange 172.S00 00 Total $6;»<.12G u\ (The account of John Munn A Co. in handed to witnew ) John Munn & Co., 1892. May 31. '^'«'"'""»'' $1.^,907 00 Cun-eut Accounts 75,09t) 84 Exchange 188.000 00 Total *2o9,()(Ki 84 Xov. :». '^''*^"'«"»« ?(;,723 00 Current Account \{i\;.V:^ ,% Exchange .-124.000 00 T«»»al »13.-).1()1 8<> John Munn & Co., 18{».3. .May 31. *^'««^''""«« $9,8:^1 (K) Current .Vccount 70,404 <»;{ ExchiiUge .. 1.51.200 (K) Total $231,4."5.-; 93 12. Xov. 30. l)i»coimiK |18,4" 00 Ciirivnt Account 1.^/' *0 2.'. Kwliniip- :W9,0()0 (10 Total f-»4(J,!>97 r. Joliii Miiiin & C'<... \Sm l/iHcoiintii $0,18.'J (10 l.'uriviit Acfoiinl 74.(il 1 70 Exchinipi. n8,00() 00 T.HhI |2.il,794 7J» Xov. :V). l)i«coimt(. *l.->,002 00 Cunvnt AccoiiiU!!> 198,79.j 74 Kxch in;;i- .^ri.GOO (Kt Tniiil $.mJ).:H»7 7-1 (The AccMuut «>f W. J. S. Doiim-ll^ is produced.) •* The iii oil .r.iii. 1st ..f 18<»i was §7.*),ni:{ G(8 of 18i»:{ 74,l(h{ («i of 1804 72,4 i:J (Hi of 18«».-, 72,1(»3 m 'I'liiii i" not ilif only !ic!.-:i:iiit of Mr. Doiincllv, tluit i^ N'o. 1 Account. •' On the 'Mat of January, ISOl. anotlicr account, \o. 2.. was o|M-uc(I for him witli a credit of .S.'J.()<)(I.(H>. whicii was transferri-d from N'o. 1 account, on whicli there is a ileliit of the smne amount on the fame date. Tiie l)ahince of .No. 2 account ou .lannaiy l>t was in lS!t2, a credit of .i!2.707 71 in 18!):{. a credit of 4 40 in ISiM, .1 dehit of 2,7r):j i;{ in 180.J. a debit of rt.lW 44 In the No. 1 account interest is cliarj;;ed up lo Deceinher 31st. 18IM). It is not eiiarjfed on No. 1 account after thai dav. No. 2 uoconnt is reijulariy eharjjed .vith its own iutere-t." (" W. II. ( '. i>." is produced.) '• It is a corri'Ot evtract Ironi the Individual liedtrrr. It is a Memorandum of .V. M. McKav's dehit halauees from Ihe-'H-I of May. 18;I0. to tlie 'JOth of Noveini>er, 1S!N." (The admission of this evidence ■.*;• .ihjected to.) 1 13. "Mr. McKay owed the Bank in May 1800 $105,141 34 Nov. 1890 108,168 99 May 1891 109,532 09 Nov. 1891 108,512 39 May 1892 107178 28 Nov. 16^2 106,671 44 May 1893 106,504 67 X..V 1893 l()(),38:j 71 May 1894 102,499 19 Nov. 1894 102.970 99 (« \V. II. C. 10." is haiuK-d to the Witness.) " It i« a list of ail the debit lialaiiees for the 30th of N'oveiiilx.'!- 1894. It is a correct extract from the Individual Ledger." (The admission of this is (il)jocted to.) " The total amounts to $2,792,474 08." C^ig'Hil) W. H. (;U<)\Vl)V. Sworn l)ef(>ie me at 8t. John's, aforesaid, I this First day of Aii,i,'ust, .\,.D. 1895. ( (•'>'K"i''l) J. fi. COXROY, J.P. »» « «» The further Examination of \V. II. Ckowdt, taken this 2nd day »f AuguRt A.l>. 1895. " The extracts put in are correct copies of the Bank Minutes for the 8th of June, 1893, 16th of June, 189.3. and 17th of .June, 1893." (The reception of these is objected to l)y Mr. Morine, as a^'aiiist Donnelly and Grieve, and by the other professional gentlemen as re- presenting Ilarvoy. N'ot the copies, but the minutes tliemseK-es are objected to. Mr. .Mortis, tor Tiiorburn, al-o objects.) " I will produce the coiresponding minutes for the correspond- ing dates of 1894. I produce :lie stateineut of the totil li i!)ilities of all the Directors on the 3Ist of May, ISD.J. and their firms, ou Cur- rent Account. The Furniture Factory (iuara'itee is included in Mr. Harvey's account. In the Ledger the Furniture Factory's account is marked " (inaranteed by Harvey & C«>." On ^lay 31>^t. 1893 the total indebtedness of Directors and their (irnis was 8 of Directors and .iieir firms on Current Ar -.nt is •••• *WW.l-»4 41 •inpc indebtedness for the >auie |)eriod is 1 U60 4vS0 00 •'•■,.11. C. rib.") ( The Disccints for (tame period :i8G,7:i8 00 The total indebtedness under the three head- for .Nov. 189.} !.- $2045,302 41 For May 3l8t, 1894. Their total indebtedness on current account was 89:10.)0 Gl On Exchange 35X5,480 00 On Discounts 2G2.2T4 00 Total indebtedness under these three heads $l.>ol,S04 Gl For Xov. HOth. 1894. Curient Account $1221,:522 Oo On Exchange 609,240 00 On Discounts .' 2i)l,835 00 The total is .$2122.397 0.'> Witness is referred to the Ralance-Sheet for the .list of May,1893 Hud 1894, and to the item •' returned Bills of Exchange," amounting each year t(» .?18 89.") 32. " Tiiat was a bill of J E. Simpson & Co., a bill drawn by Philip Clearv on them and dishonoured." ("W. II. C 10," List of CJiurent .\ccouuts, is handed to Witness, who is iisk<'d to look at the J'ccount of Barnes & Co. This is ob- jected t.-,.) "Their indebtedness is $(5.7)(>.0.'). Clift. Wood, & Co., owe f3G..>27.].".." (At this stage " W. H. C. 10" is ruled out for the present, as it appears to the Coin-t (hat the condition of the jjrivate accounts of in- dividuals at the 31st of May. 1894, must lie first taken.) "The account of Barnes & Co., on the 31st of May, 1894, was $G,7r)G.O,".. It was the same in Xov. 1893 and in Xov. 1894. In May 189.! L. Parker's aecount was 818,728.31; in Xov. 1893 ?17,184.19; in May 1894 .8l9.9:!7.70; in Nov. 18i)4 .?20..->.3().(M). Ciift. Wood, & Co's A/c on 31st .May 1893 was .•?4..">27 79 aoth Xov. 1893. . . . a'>,074 44 31st May 1894 ... .32.334 78 30th Xov. 1891. .. .3G,r.27 lo Wate'uian & 'Jo.'s i\cct. was on 31st May 1893 .•?34,217 49 30th Nov. 1893 .34,217 49 31st May 1891 32,2i>l ,12 .30tli Xov. 1894 32.201 .Vi .1. V. O'lX'a's account was on 31st .May 189-3. . .52.88.-) 33 30th Xov. Itt!t3.. shews none 31 St May 1891... 2,.')G.3 07 30th Xov 1894... 8.11 87 1 1 \5. "Fisherman & Sfainan'.-* Homo, Ma> ISfCJ $12,747 3? " I think there iii a !u„ ,|,ai i,o..k. It is si;,,,..,! in IS94 hv Ilarvcv with his initials, l.y Duniielly and I'hori.mn with tluir initials 'rh,. signature l.y initials is the usual practice. Mv cash was c.unte," .Hi the 31s, .lay ..l" May, lSil4. as I'aying T..|ler. Th,. i.'eceivin.r IVlh.,- cash w, s also eonnt..,! ,.,, that .lay. ! .l„„'t ...n,..ml,..r w li.reuuuted my cash at that .late, hut I can tell l,y reference to mv h.,ok It W118 on Satmdav the 9lli of ' •'une, to the I.est of my kiiowkd-.- ami *<^p*^-rii ■! ai ^ w ^ II ^Ji l ll l MjfViWiJi ili^ 4 iK'lief. that tliv Oawli in llio Tifasury wa.t couiiU'd. Hy rufcreiice tu my iiKiiuiiaiuliiiii liiMik I tiiiil that luy cn>ih was coinitod oi' the Hist day of May. 18!»t. ami also the Utftiviiij,' l\-ller's on thi- saiui- date. ii'« is i an.l Hi.")" (Si;,MKd) \V. II. CUOWDY. Sworn lK-f..ru nic at .St. .John's, al'oivsaid. I this fifth day of Anj^nst, A.D. 1S!».'.. | (Signed) J. «. COX KOY, .).»'. The Kxaniin.-ition of Wii.i.i.vM II. ('r<>\vi>y, eontinned. Cross-Kxaminctl by Mr. Morino. I...I...1{., for .Mr. Grieve and .Mr. Donnv'lly : — " The .Vnnna! Ueport is prepared from the Rooks of the Bank by the Man-i;;er. not from the Ualance-Sheet. It is the .Vnn.ial Statement that is taken from the Balane»-Slieet. The Keport is in the handwrin;-- of the Manaj^er. i^ned by him or l)y the Directors. That i>. the Ueport for lS\).i in .Mr. (ioldie's handwritin;i,'. The Hejiort lor 181)i is in Mr. I'insent's handwriting. In each the Keport refers to the Statement in words. The Statement in neither year refers to the Ueport " The Ueport for IS ':{ itfeis to a largi- loss nnide by the liank by the sirsp,.„^i„„ „f .N[i.ssr8. 1'. & L. Ti-ssier, and says ' as the bal- ' ance at I'rolii and Loss aecoant is not .sntticient to pav the iisnal 'dividend and i)onns, your Diieelors eonsidcivd it prefei-able to draw 'from the Ueserve Fund tli.in to make any reduction of the dividend, ' which they trust will meet wilii your approval.' The amount trans- ferred from U'eserve to supplement Profit and L.iss is shewn by the UeiMM't to have been .•?4(MHi(>. " The U'eport for lcSit;S makes refere.u-e to bad and donI)tful debts. It ^iivs that fidl provision nas been made for them. In I8i)4 a similar statement is made in effect. These statements are made in the .Vnnnal Uej. )it. In ISiKJ an.l 1804 ther.' was an acc-onnt for bad and doubtful debt-. That was the title •• IJad ami Doubtful Debts." It was an aeconni standiuj!' to credit in tlie !)ooks oi the b:ink to meet bad ami doubtful debts. It was createear f^reater by that amount. There were amounts charged to that Bad and Dimbtfui I'ebt account in 1894, anil certain other account* credited with those amounts. .Sonrv of these accounts were do. ed altoj^ether. and .s 05 Henry Blatch 640 12 T. &J. Grace 1,357 59 D. J. Green, Harbor Grace 445 70 Rev. William Kirby 557 73 A. M. McKay 54,000 00 Newfld. Fish Drying Co., Ltd 2,87G 81 John P. 5, A.D., 1895. W. H. CUOWDY. (Signed,) J.G.CONUOY, J.P. K. « W liPJ O-^l yi i^^gify^^ Wj i f i u w.— y . »T^T I& The further OoxH-l-IxMMiniiiiion of Wim.iam H. C'lcownr, takt-ii i ii|Miii oiiih il'i- *ith .liiv of Aii;l;iisI, A.D.. lrvfiiil>i-r. l.S'.t.J. liiTf wfit crfilits Jnn. 4th, 1S!»4, CVh $1.(X)0 ()0 Ffh. 3.11. 18JM. Cii-h 147 2() Fc-1). -.'Is!. 1S04 1,000 00 MhicIi L'uth, ls(!t4 1,000 00 April 27lh, lS{t4 1,(KX) 00 Dt-c. lOHi, l«i)4 400000 l)fC. :nst, 1>S«)4. hail and donhtful dohtt* .•)4.0(KJ 00 leaving a halance due on Pee. "ilst, l.SiU, of .fi4.970 m due the Bank. The anioum.x erediled in Minus of a thoMSi«nd dollars eaeli were inHtainients of the pnreliasi „i his house from the Hank. The ci-edit of .^^.(KHJ was IVoni the (iuardian Life Insurance Coni|)an}. There have l)eeii in I8!*,» Creunt Jan. 22nd, 18!).-), Cash per Morison $2,0(X) 00 Jan. 31st, 18it.">. Koyal Insurance 5,070 00 Feh. 2.hil. 1S!»,">. .Sun Life 12,57;J 2U May l.'Jth. KSO.J, proceeds of I'olicy of Devon])ort 3,740 31 These siuns have been received, all of iliein, from securities in the hands of the Hank 4. The Hank holds otiier secniities ap|>Iical)le to that account. " I have s|)oken of .*^hea & Co.s account as hein^' in delit in May, 1803 and Jfay, 1804. We had some securities for thai account. We had two leases anil two life-ix Mcies. " I have spoken of an ov idraw n account of J. V. »)'l)ea. both in May, LSJKiand May, 18!I4. IK- was a F'our C'onuuission Merchant. Those halane.-s on the dates referred to were not old balances. His account would l,e erediled from time to time by C'asii, and by notes of other people to him. The Hank had a s|)eciai securitv, the guar- antee of his father. .M. Dea, for .S|,0(M). If ii,at amount of -uarantee had been credited to him at any of the dates I have referred to. iie would have I.een in credit. The -uarantor, his fatli-r, is reputed to be a man ..f means." (Copy of .guarantee produce. an7() as seven and a half |)er cent.. dam;.-es ot. returned Kxebau-e. This means on di>li.)Uour- 19. 1 9 fd Exchni.jft. of Wnterinun 4 Co. on Eii>cli-h poiliis, ntiirnoil to the iiniik. Thi- lYiuueu of Watirman & Co. wore A. F. < ;uilr tlw li:iliilitii-K of tht- nircotors and thiir fliniit in 18JKJ •nd IH'M iind nl»n hi .iihor mir-. I inchidod tlu-ir liahilitj on dif»- coiintK both iiM iiKi.ii«or> iind drmv.rs, nnd their liiihilitv on Exchiin),t> as dinwen.. Th- li.il.ilitv on ••:v,hMn-,'e would inciiul.- i-xchiiii;,'!- nc- ce|«tfdh_v|)iiitii*onulioiiiit wm- clniwn.iinil not m.itiircd. The h^mex of their li.ibility inc hided nil ("ntin^jent linl>ilit> ua well n-. (Tiit-ct liability. If a Director were a payee of n note which he endorsed, he would apiH-nr in my stafiinent as liable to thf Hani ulihoufjh ihe liubility WMH merely eontin.,'ent upon the non-payment ,y the maker. If one liirector were flu- maker and another the 'endor>*er Ijoth parties appear by my statement liable to the Hank. Therefore in makin" up from my stHtemento the total of the Directors' liability, any such notes wonid appear more than once, and i>i this same total 'would appear as linbiliiy the unmatured notes of third |)artie8 to the Direc- tors themselves, inasmuch as endorsed by them. " Take .John Muuu & Co.'s liabilities on E.\ehan>?o on May 3Ist, 1893, §1-)1.2(M). ThMt would be exchange drawn u|H)n Bennett of Bristol, all acci-pted by Bennett (that was not in trnnsit by nmil) not matured at that time, but disposed of by the lliiiou Bank to other parties, and afterwards paid in full when due. That is also true in principle ,.f • Exchauirt. Liability in May, 1S94. as shown by my .-tater nt. Th-. nme is true in principle of the liability on Ex- change of the other Directors as shewn by mv stulemeut for May 1«93 and 18!)1. The liability of I )irectors on current account on .May 31st, 1803 and 18<»l appears in the Annual Maiements of those years as assets of the Bank. But their liability on Exchange and dis- counts does not api.car as assets in those Annu:;.on 'I'leasury account alone. On May31si, 1894. ilie (ioyerii- . ment was oyerdiawu on Tieasuiy account .'?:'"'-.'.88:t.31. 8o thataboit i?;!00.00( ).()() of the excess of overdrawn accounts in 1894 as eomiiar- ed with 1S!.3 is .ttribut.ble to (he overdraft on (Jovcrnn.ent account. " The Cajnial of the Bank was .•?4.')(i.(« 1(1.(10. On the ."{Ut of May, 1893 and 1894. the credit to If-s.-rve was respectively A!()0(l(l(» :'nd i?.'L'(MKlO. . s . V " The incase ill 1894 of if JO.CtHi was ,l„t. to ,hat aiuoun. bavin.' been set asi.lc (V,„„ IVotit and Loss. B^-sides the Capital and iC ■•""!^w»w*"nB»»imH 1 ■ n I h i 1 1^ ; ^ I 1 1 20. sfi-vo, thfie wiTf in iSiH 5:{(MXHJ to (.'ruilil of Coiitiiij,'t'nt Account. and to credit of Had and I)oni)tful IK-bt Fini.i .•i!L'.'>S,73.i.28, so that besides tile li; .liiity of tlie Sliaieliolders the Bunk had over ami above its own af^M-ts in ISiU, .5I.(H}4,7:«.28. made ii|i of Ci'|)ital fi.->G.000 00 Keserve 320.(XK> (M) CoMtin;:;ent Acconnt .{0.0( K) 00 B.. . and Doubtful IX'i)t Account 258.733 28 §10(>4,733 28 " Mr. (iiieve did not sign the Annual Statement for 1894. He was not ii. the Colony at the time of the Annual Meetinsj of 18!)4. I produce the Minute Books for 1894. (Marked " W.II.C. 18 and 19.") (It is understood and a^'recd that these I Xo. 1 acconnt had been credited with .S->()()0 from tiie same source, property in Harbor (irace, and in January, 1891, ,is- coiints in the acconnt of Harvey k Co, it was an anumnt that they might be liable for; it was contingent for part. t)nt not an amount due at that dale. It ccmsistcd alnio-l entirely of promissory notes of i^. W"-' - * 1 21. which they were endorsers. That amount has been paid: in the ordinary course the $171,808 won!,', b- taken up bv the innker. I cant«ay by whom they were p.^id. The statement I made wouhl not he more correct if I lef; out that iiabilitv of .'?17I.8ti8 ' Jn the evi.ln.ce [ ^^ve the other day "ou DireetoN' habiiities on certain dates. ass„,„i„. M,„.„ ,t Co. ha.l ^nveu their n,.te on Harvey ■ Lit -7/ '""■';'? i «•>'"•— ^^- -f'.OOO.-tha, amount would a,.pea., discounted by the latter, accordinj^to my way of statement. «s a hab.h.y ol Harvey & Co. and of Munn & Co. al«o. Thou-W, tl .re were only one note and one transaction for $.uim. it would am, ..r i„ my statement i„miM.r's liability in the case of IIarvev'& Co. was very small •.. 18..2 and s„bsecpient yc-ars as compared with their eudojsements. Fn May 18i»:>, the total h^ure is §291, S,-.7. ,.f which «1<,.,2.{ was promise, and S-^.m was endorsement In Nov 1802 the total w.s S120.] 1 1 ..f which .^10.810 was p, ...uis., and sKi. " It' r.;i^^'"^'«'''^'".''"'- '" May 18;.:i ,h.. „.,al was .ilSS.lilli ol which $10..,..o was piom.s,. nid $171,808 was endorsement. In .v 18 Harvey & Co., on C •C'iii ,,f $127.:52 .Ml ihe i, bal; Th nice aiLjainst ijieni exeeji. the I inreni .Vceount, ajraiiist which tl 1st o. .Nov. J 894 t( lere was no ey migh. have closed tl "o eoii.iujreiit liMbiliiies (pioled. on ,lia, date by leir aecoiint with the Ha,,!, i*f«*« p i 22. diawiiiff out till- .SI27..'{"J. OiiMiiy :n»t. ISiW, sotting off the credit of Iliirvey & ( )uti'il)iiii.ro ;ijj:nin>t the ililtils of II:ii vov & ( 'o., illld k'aviiijj out the ooutiii;;i'n( li:il)ilitii> of tin- jjittor, tin- amount |)!i_v:ii)U' b_v Univi'v & Co.. wouKl lu' s:{l,lSS.r)*J. In Xov. IS'.CJ tiie balani-u. made in tlie « •>? wav. would !)»• .'>U),i).".S.:{,>. In May, 18!t4, it woulil he ;?^18,718.1':{, el(>-in;r in Nov.. 18!»l. witii the halanee already stated to credit of !?1:.'7.:{'_'. " Mr. Harvey i!id not >ii;n the Annual Statement for 1894, nor the Fie_>ort for that year. lie si-^ned the Aiunial Statement of 18!):J. .lune 7th. 1804. was tin lust attendance i>f Mr. Harvey at a Board Mi't'liiijj as tar as the MiiuUe Book >hews. " .\ll the suin:» which I have (juoted as liabilities of Harvey & Co. on Discounts for 18!L', 18<)8. ami May. I8!)4. have been paid." To Uns. Mk. Moiiitis:— •' In reference to the acc<,init of 'riioritin-n & 'IVssier, they drew their Kxchan<;e on Hanks in Enj^laud. not on private firms. With respect to tin- liability on Kxchauije of that iirni, all their Exchangt' has been paid, and the Hai.k has .sul'feretl no loss on account of their Exchanjje. The amount set down foi' Ivxchanjje for Xov. 1804, ^it0,8-l(>.80, was a contin';;cnt liability. It was drawn on two banks, the Merchants" Hankinjf Company and I'ari'^ Bank, and it was paid by these. There were thn— bills, aniountiuj; to £'7(K»0 Stg., drawn by the firm after the od.'h Nov. 1804, it was remitted to England on the lOth I)iv,inber and paid. We had no dishonoured bills of Thorburn & IV.ssicr returned. The liability on the ^idtli November would be less tlian tiu' figures I pioicl oti luy Kxaiuiuation-in-chief by the a;uount af the Exchange, at least as Car as that item. " We had collateral security in the foi-ni of shares in the New- foundland Steam .Scaling and Whaling Company. 1(J7 shares, against the overdrawn account of the firm. The i)ar value of the shares was $2W per share. I (h>u't know the market value. The Seal Oil Ac- count was a distinct account from the Steam Sealing ("oinpany. There is no credit in my statement for these shari's, although the Bank still holds them. I slated the liabilities of the Diiectors to be ;?2,lL'2,:«»7.(l.J on .Nov. ;{(lih. 1804. riial amount included the con- tingent liability as well as their accrued liability. In reference to Simpson's .Account, we have the Dredge as Securitv." (Signed) Sworn before me at St. Jclnrs, afori'said, this eighth day of .Vngnsi A.D. ISO."). W. H. CUOWDY. (Signed) J. G. CONKOV, j.r. The further Examiuatian of Wii.i.t.-.M II. ("kowdv, taken ni>on oath this 12lhday of August, A.D. ISOo. Jif-Kx(imhitd bij Mn. EMt:iiS(>\. (^.V. "On the last day but one, (ui my cross-examination, I said that on the ."list of May. |S0|. tlie Bank had, over and above its own assets, .'fl,(M)|,7:!:i.'_'S. and in that I include a Bad and Doubtful Debt Fund of .'?L'.">8,7.t;{.ii,S. It ap|ieared on the books as an asset, but it 23. nhould he uri'tin off to ct-rtniii Had iiiid I>oiil>tfiiI IX't)ts for which it pii>vii|eil. It 'hoiilil not a|)|)"ai- in inv fvidcnco on pa^jc S as an assi't on that date. That amount. .fil'';s.7;n.2S shonhl Ih; iludrtctcd from the ."?l.n;»4,7.i:*..'JS, leaving .•^«i(l.;,(»iMI." Uci sTiox: — •• Was there any collateral secnrity held by the Bank for the overdrafts of the Diri-etorsy" Axswek: — •• N'oliiin;.' thai F know of. except the Sealing shareiH I have referred to l»elon;^iiii; to Sir li. rhorlmni. We had no collateral ■iecinity tliat I am aware of for .\Ir. Donnelly's overdraft. I have eiKjnired in the Mank, and eouid not ascertain. I heard that there w»s an agreement, aner, 1804. The Union Bank is not able to pay its creditors one hundred cents iti the dollar. The Protits on which tlie Hank paid dividends for N'oveinber 1802 and .May :8!W is made up ot:— Credit on I'rotit & Loss .\cconnt $6,428 43 Contingent Account 20,0()<) 00 Leasehold Premises on Water Street 34,69.1 iCl Interest Account 1(M),61.^ .*»0 Exchange .\cconnt 27,8.'>7 Gl Colonial Kxchange Accoinit 39,i».'J7 67 From lleserve 4'J.OOO 00 Total §i2()0,.-);l3 14 " These were the earnings for the year enii...^ .{1st May, 18!>.{. •'The ('ontingent Account has been lying for several years thai is, $20,(KH) t<» the credit ot the Contingent .U-count. 1 think it was placed in one sum to the cre.lit of that Contingent .Vceount. I shall find out what year the Contingent .Veeoinit was created. We took ^0,tM)0 that year fron. the Ites.'rve Fiuid and put it to the credit oi' Profit and Loss. When our Reserve Fund commenced I don't know, but will liud out. " "'lie sum of .S'M.O'.CJ !>;{ from Leasehold property is thus made up:— .$17,(MM) odd was a credit on the books, and the balaiKe wan Insuranc.' after the lire of IS!»2. i)\\ llie 'Msi ot Sl-.^y, IS!»2. tiiis was taken in on the Assets,— that is, the amount of .•:jI7,(i(»0 on the books, but 1 can't say if the value of the lea.-ehold property was taken in. I will find out. "The three items I have refei'red to. — Conlingeut .Vceount, Ue.serve, and Leasehold Pioperty. make in all .S!l4.(j!»:{ <);(. Deduetiu'' these frcmi the I'rolit and Loss .Vceount for the Hist ot May. IS!*.? there wouhl be .'?l74.8.t!» 2L ■ I'lie cliaiges on the oliicj' side of the I'rolit iVr Lr)>s Account are.S-.'7.26S •_'». Charges Account for the year. Ha, I and Doubtful Debts .s;iti4,(;20 27. I'hat is all except dividends." (Question :—" Comp.iring in ihi- way the two sides of the Profit •pwi fm\mfmf_. » yt »i m i j» ii ■M«» 1I 24. * Loss. Aicoiint, mill (U.liictinj,' tin- ;ilK)Vf sum of .s-!»4,(i!t:{ !i:j, would tlu-re ic'iniiiii anvthiii;.' :iv;iil;ilil). for (iiviilfiul'/" Axsmkr:— " No. afu-r iiiiikin;; provision for Biui iind rVnihtfiil IVIits. 'riicie woiil.l bo .'III iii.lfl)ti-(liM-ss. " In thf Annn.il Stjil.in»-iit or l{.|.<)rt tlioii- is no refeit-ncr to the transfer from t\n- ( •oiitiii-.nt Ai-t it .'n.l from tin- Lensehoia m^ IH-rtv of .^-.'(MMX) ,„„1 ^njyj,i ,,;, ,,.,,„.^„i,.,.,,.. p,,,.,^. ,, .^^.^^j^,, ^,. the sum tnmsferifd from the Uosurvc to I'roHt & Loss. In the Report for l.S'KJ there is .•, refeivnce i.> the loss l.v l». & I,. IVssier's firm. " I produce II .»;t.iteiiient .11 .Votes f,i!liii;r iliie in favor of Di- rectors, mid eharped to the .vei. -eiu'iallv in the shape o( a cheque of Marve.v & Co.. a few .lavs later. I tnrn'up the Indi- vidual Li'd^rer for 18!):{ to .five an illustration. A. Harvey &(;„.. Feb. (5. .V note is charged, .■514,000, to an ac- count wlueh «as ahead.v overdrawn. Feb. ]]. Theie is a cash credit of .^^.(MX). ()„ the latter date there was a cheque charnvd to Ilarvev &' ( 'o. for .$I4(K)0 ^ "On the 9th of February IlarvVy & ( 'o.. are credited with a - •; -onnt of .S|(;.(>08S(.. I eaii't tell from this book who was the Pro- n.i.so;- I pr,„l„ee the Discount Hook. " Local Hills Disconnte.l" Ihe I romisor was .V. Harvey .t Co. for !}Um); this was a renewal note." Qikstion:— " When that note became due, how was it paid'" Ans\vi;i::_" h was char-e.l to A. (larvev & Co. On the ac- count of A. Harvey & Co. there was a cre.lit ihe followiu-' dav for the same amount. That was by cheque fr-m Ilarvev & Co there was a diseuuiit of .S-_'(i..t(>(. ,0 the credil of Harvev .fc Co. a .lav or two aft.-r. It inel.KUs a uole for .-?M.()<>(. of A. Ilarv..v & Co., .Uie 13lh <)ct.)l>er. Qltksti.in:-" How uiaiiy u >t..s for .•S4,(K)0 in IS9:j, an.l in 1S9J s'M.m) I ,,,o,l„ce ■, Matenu.nt sh.wi„;,Mhe vearN haia,,,. of n,„e, nuiuiug i.etw.vn \ .) llarvey. cne.war.ls. f,„m 1884. .\. Ih.rv,., & C„..) and Harvev & Co. from lv^(., to 1894. 1 W H C '7 V m. - . .• e t- ' ,. , v»».n. v^. _«.; i I lie reception of tins was objected to.) <■■»■! .1 ■» iim> i,m.i. \ « ^ 25. "Theiiiiioiiiit niniiiiiff in !*s of tlu- tliiw I)iivpt.H» cliiii n;,.,| !,) ovi-iili iiwii «i-i;i)nnt-4 of Hk- iiiakiTs foi- ISaj i, .S217,Tt>l. iiiHin wliii-h Diivct'M-H wctc onilorM-iv*. "The lrt!i4 »uin was $|(>4.7.W.0«)" (Signo(l) \v. H. CHOWDV. Sworn lwj,.ii. nu- m St. .John's, afoivsaid. I thii* tvv<-r»li (lay of .Viij^iHt. .V.l). l.S!»."». ( (Sij^ned) J. (i. COX HO V, .».!». « f «» The further Uo-Kxanriiiation of Mil. Wim.iam I!. Chowby. takei. ii|V)i-. (.:ith this 14th >liw of .Vtii,'ii.st, A.I). l.S!l.-,. '*_! produce a < o;,y of th.- Ueserve Kund Aceount. eomnienein- 111 18.J.J witii eil.U) eu.rene.v. ami ending in 1894 with .>;:{2<).(KMIL " W . II. C. "AS." Durin-f that period there was n(» sum of that Ue- serve c'.urinp the exis-:. i.co ..f the Mnnk tran-ferred to IVofii & Los.s iiiiless in IHIKJ, whin we took .ii^O.lt^JO from it. "The(V)ntin,i,'ent .Veconnt. refern-d to in niv last examination wa^-, opened in Ma.v IST.S with CIOIK) ounvuev, and ' ,.sed in Mav 1879 by a credit to Cojoiiial lOxehan^r,. ,..{ f.-,(i(H( c-urrerK^y. In lH!»i on M.iy :11st. there was a credit of.^20.(MM» to liie ('ontinf;ent .Vcfomit' which was transf.rrt-d to P,„lit inid j.oss in ISiKi. in May ISiM we plae-d to Contingent Account .SSO.IXH). which still stands toits credit. The i.easchol.l premises reienv.l to in inv last evi.leiiee were the premises occupied oy rhorhurn & Te,sii.r hoforc the Fire an.l burnt in the Fire. These premises the Bank had an umxpired Lcas,- Md tnterest in. and the Uank kept the premises insured ..l.ont ?1 < .fXK); that IS what we reovered out of tile insaranee. We • ..,,t au account ruiiiiin- since LSliO in connection with these preii . for rents and grouud-ivnts and insurance premiums and repairs .n,,! „u the .-list of May. 1S!)L'. the halancc was a credit of .^17 n.-,l m The Num of tho i,:s,„,,nce and of thai Ijaiauce made the »iun of >-:" (MM) transferred to l'ro(it & Loss .Vccouiit. LS't.S. The .•$l7WM)'to the Civdit of that account I.elore the Fire was kept f.n- repair.s. as the lease was about riiiiuiu!,'- out. ♦• Our claims on the Insolvent Firms of Thorhurn & Tes.sier .»ol,n .Muni, S: Co.. and Haine. .Fohnstoi, & Co., are respectively:- ' (1.) Thorluirii & Tess.er. al)out $470.(KM) (Ml ^ (2.) John :\Funii & Co •• .^SO.rHK) (K) (Ti.,>t last item includes exchange on which ('. T. I$ciiuett, is liable.) Qi.) Uainc. dohnstoii. & Co..abon. ... (>;{.-),0(K) (H) '■''»' ""='' i'* $1. (!.!.•;,()( M) (M)." Tu .M'!. Morink: — nar," '." 'i' "7T "' '!"\"=''"'">- '"' '^"'■^•""- •""'t spoken about, and paitienlariyof Mnnn .t Co.. that account is ma.le up principallv of o mlrawn current account, and secondly of Kxehauge of whiel, t'hey «ue drawers, and ( . W Ueuuett acceptor of all but .Cll.(KM) .^|.; and winch accepted Exchange is also a claim against the Fs,ate';:f ^p ! ■ i^' w i t i^ m pi nj Bi 1 2». C. T. B»M>iu-tt. jCtJi.OnO St;?, vvoiilil bt' the ncwpri-d (xMiioii of tin- Kxfliuii^i- ill \Iiiiiir- iMsi-. Thf iliviilciuli ivci-ivod fr mi the K-tati- ofC. T. livnnett would be applicublu to the ivductimi of Miinn'M lmbilit> iiH Htiiu-.l ill iii\ .vi-lfiicf. " Thf liability of thi- thrie Diivctoi-M roftTivd to by im- would in- cliuU' p«|«'i iiidoi •.(■.! I)\ thi'iii «ln-ii- rlic ui.ikiT- uiv inwilvi-nt. •* The MaiikV liaMJiold iiiLnM in thi- Water Stieot pn-iniHfH. dwH not n|>p4'iir in the Stuieiiient of the HaiikV affairs for 18!"i. May 31x1, a8 an A»M4t. Tin- iiilaiiii- to the .-i-.-dit of thin leasehold ac- count aiipeaii in .May 1892 a» a liability of the Dank in its Annual Statement for the year. The invniin"* weiv burnt down in l;ff»2, and the lease Murreiideird in ci)nie<| i.ncc of the flie. Phe grouml Ian i- lonl wuM Meiiry Stiiddy. i-'roin iii-irance the Ba.ik received in the financial year isa{ •■• .iit $1 r.(t.MI ,iii j the amount HtaiidiiiR to the cit'dit of the accoii..i rt-.i- .7 (il (nilonial K.xehange 39,937 G7 Total $108.410 78 I' That year there was in addition from Leasehold [ntcrest $;t4,(!9:J.93 and from Coiiliiigent .Vccount there was transfiired $20,000. That makes a tot.il profit for 18!>.3 of .•j!223, 104.71 accrued Hi ip i w hm ^w ^ i rytw i^' " wiu 27. that year. Every cent of that was profit calculated for distribution amongst the shareholders for that year for the Hrst time xf "tln,^*"''''"^^'' ^^^- ^^-"••*'"' "'"' distril.ute.l as a dividend; in May. 1893. th,- dividend and i>,)ims imoiinted to fH.IHO, the total of the two being |ebt Fund appear in the Annual .Statement for 1894 as an \sset or a Liability?" Anweu:-" It app.Mrs as a liability. It ap,,eared in the book.s as a liability. Its appearance in the .\nnual Statement for 18.^)4 as i liability made the liabilities appear that much greater than thev really were. ■ ■^ "Among the as.set8 on the otiier side of the Annual .Statement were included the current accounts which this fund was intended to meet, so that the one offset the ither. And the e.feet on the balance of the Annnal .St.-»teraent was the same as if those current accounts had iH-en closed into the Bad and Doubtful Debt account before the Annual Statement was prepared. As the pa.-ties owing those account, were not wound up, it was necessary to keep th.se current accounts open in some form, unless they were abaidoned by the Bank Vs a practical accountant, I believe it was right to put on the one" side as assets those current accounts, and upon the other side as a liability the fund which was in.enle.l to provide for tliem. I don't speak from my own personal knowledge when I say that tlie Bank aithe time of the suspension or now held no securitv for Baine Johnston's account or for Mr. Donnelly's ae.ouat, or for "any oF the other parties except the sealing shares. I was not admitt -d to th. meetings of the Directors ot the Bank. .Vs an Accountant of the Bank, I u',uld not necessarily know of the securities, those might be known to the Manager or Directors without being known to me. As a rnaUer of routine I would n..t have my a„e:.,ion ealled to anangeinentsmade by tne Manager and Diivetors. My work was somewhat of a machine character, and had nothing wh.Uever to do with the practical maiuigeineiit and control of tho Bank. " With respect to Ueserve Account, in 1S7;{ the sum of £-'5 000 cunvncy of that Ues.-ne was distributed a.iongst the MM- ers 111 the torm ol additional shans. an.l ,t';{.S.(H)0 in 188^." Tr Mh. .Johnson. Q.V.:— " Vi ith reference lo • .Statement of Notes,' ( W. H (' 04 *, 0K\ ■ iaihug .iue in lavonr of Direetoo. aii.l ehavg.d to ovenlrawn^eeo.n;, Accoui of Ml. A..). Harvey, changed in 1884 to " A. llarvev & Co." I'm aware ,ha. Mr. A. J. Ilaivey entered i„ 1875 o,/ tit 28. \. bakery biisini-ss (iii tlio |n-i)|H.'rty in Iloyle^iown, wlieiis he carried it on uiitl the lime of thi- Fire." Ql'estiox: — " Itct'ore the business of A. J. Ilnrvej was coiu- ineneed, was the Union liank askeil wh<'ther if the bnsiness was establijijieil wilii a cash capital snllicient to pay for the premises, its plant and maciiinery, tilt- iiank wonid disconnt notes endorsed by Ilarvoy & Co.. for tiie pin-pose of impor'.in to the close of the Bank will have been pro.nptly paid. That account of A. Harvey & Co., has been a very profitable aceonnt to the Bank, in every way desirable in the Bank's intfiest. The averaije of the account of Messrs. Harvey & Co. for the past five years would be .•Sl.^.'W.iHG. The .Vnuual profit on that ncyoiint would be $17,()(X) to the Union Bank." To Hon. Mh. Moishis:— " In reference to the three insolvent Directors indebtedness, I don't know what their respective debts v.ere worth the day the Bank closed, even approximately. 1 believe Sir itobert rhorliurn made a statemiat to the Bank wliieii would slu'w his Instate able to pay one •inndrid cents in the dollar. If Munu's Instate pays fifty cents in the dollar and Bennett's Hfty cents in the dollar, there would be no loss on accepted Kxeliaujje tiintitufii Mmiu & ('.i. In one item, the iix- chaii<;e account of Thorbnin &, Tessicr, tlu-re will be no loss at all; it is not included in the .i()4,l)Ut», of which $2i>7,G()U is aeeepti'd In Bennett." (Signed) Sworn before me at .St. John's, aforesaid, this 14lh day of .Vu;^'usi, ,\.l). 18!».>. W. H. C ROWDY (Signed) J. G. CONUOY, d.P, The Examination of Chaklks S. Pixsen'T, late Manajrer of the Union Bank, taken upon oath this 2()tl) day of Augnst, X.D.. 18U5. " I have been thirty-seven years in the service of the Union Bank, and was Accountant for 18 years, and so continued until July the 6th, 1894. Previous to July the (Jth, 18i»4— the Manager was Manager until his death, June -Jlst, 18<.>4,— after his death 1 was ap- pointed Acting Manager, on the (ith of Julv. 1894. I was appointed full manager on the Ist of August. 1894. Before Cioldie's death I had authority to sign ' pro Manager.' either in his uhsenc' or pre- sence as occasion might require. Mr. (ioldie left thi.s country on the 21fit of May, 1894. After his departure 1 signed ' pro M.mager,' and acted for him, attended the Board of Uirectois, and 1 was Manager' from the 1st of August till the a|)poiutinent of the Liquidators. " i produce the .Minute Books from July 1880 to the ..lesent time. (" C. S. P. 1 & 2.") They are kept bv the .Manager or the person .ictmg in his place, and signed by the Chairman when signed at all. The rule is to read the minutes or a meeting at the subseq'^ient meeting, and for the Chairman then to sign th.-m. He always signs when there is any special minute to sign. I kept the minutes" in 1890 in the absenei' of .Mr. (xoldie." (Mr. Morine objects to the reception of the Minute Books and to questions as to their contents.) QUE.STIOX, (objected to.) :— " Ale there any minutes regulating th« ..mounts of the overdrawn accounts of Directors?" ° AyswKn:~" I produce copies, extracts from the .Minutes. (1) '■•om minute of Gth Oct. 1881. •• C. S. P. 3." (2) " lOth June, 1884, •• C. S. P. 4." (3) " " 18th April, 1889, •' C. .S. P. .j." (•*) " " ^'5111 June, 18iK). " C. .S. P. «." (o) " " 9lli Dec. 1891. " C. S. P. 7." (6) " " 2nd May, 1892, " C. S. P. 8." •' These aive.xtracts from the minutes of the board, louchin- the himts of the accounts „f the Directors, and they are all correc't ex- tracts from those miiuites. That limit was not kept by the Directors. "The following was the position of Thorburn & Tessier on Current Account on 7th May, 1888 81st Dee. 1888.. 9th Dee. 1891.. 29th Feb. 1892 . . .'list Dec. 1892 . . §20.-.,14.S 09 198,782 88 802,498 49 2.>;!,S2(I GO 81U,88(i m 1 <^ * I 1 "The poKitioii of John Miinn S' Co.: — 2ikI Mhv. ISM-J ."?2H7.T<^) ?*?< 31»t May, IS'.fi 2«,009 M 30th S,.i',t. l,Si»2 -VnSl^ 20 30th v.. lJ02 :« 30th N'ov. 18!»2 428,378 8<) 31st Dec. 1802 447,011 42 •'Thi- accounts of .Inhn Minin & Co., and for ThorI)iirn & 'IVksIit iintl for thi- othci' Diiic-tors for l,S!t:i iin.l ISO! ;iie ahtiuly in cvidoncf iiiM)ii tlu" K\:niiin;ition of W. 11. ( 'rowdy." (JLKsTiox: — '•War' thiTi' a riik' of practice in the Hunk with rejfnrd to the phic-in;; liifon- the Diri-etors a list of jverdrawn accounts and amounts (hie tlie HanU?" Axswkh: — " Ves, a list of overdrawn wx-onnts was placed Ijefore the Directors once a month, on the Hrst Thm^day of every month. Tliat rule was strictly carried out. That list wouM ineiuile all sums due by the Directors on (,'nrrent Account. There was a rnie ivgulatinjj the amount of exchan-{ tin- rule. T!ie otlier two firms frequently exceeded the limit. Messis. Ilaivcy & Vo. and V.. Donnelly had no iiinuiujj exchanjie account of any consequence. I will |)roauce in rej;ard to Maine, Joliuston & Co. and the other Direc- tors accounts similar to tli(»f furnisued in respect ot John Muun & (^o. and Thorhurn & Tessier." (Witness* attenti.m is called to " \V. 11. C. 1. & 2.") " I identify it as tlu- Report and (ieneral Statement of the affairs of tl-e Cniou IJaiik tor the year eu(lin<,'.'Usi dl May, 1803. The fcun- si;juatures to the .Statement are those or the parties. The body is in the handwritinjr '■• the late Jame< (ioldic. I know it to be the Statenu'nt brouj-ht l)et(ire the shareholih'rs, to the In-st of my know- ledfj;e and belief, but I was not proenl at the nieetinjjf of the share- holders." (Witness' attention is c tiled to the St;ite.neut and iteport foi- the year endingaist of May, 18;I4, •• \V. II. C. 7 & 8.") " It is siffiii'd by Uoberl Tlioiburn, W. J. S. Donnelly, ami Uobert S. Mumi. It is the Statement and Report laid beloie the shareholders on the IGtii June. 1804. It is in my handwriting. .\t that time 1 was still tile .Vccnnntant of iIr- IJank. i)iu authorized to siijn ' pro .Manaifer,' and was actinij for Mr. (Joldie. " When that .Statement was nuide up, Mr. (irieve was absent from the Colony. .Vt the tinu' the .Statement was eonqileted in that form Mr. Harvey was alisi iii iVoiU the ('oluny. The last date that Mr. Harvey attended a nu'i'tini;- of the board was 7th June, 1801. lie atlendeil the Uank on<-e after that date. I believe it was the 0th of June, 1804. I had a conversation with him. lie cauu> for the special purpose that Ihe Directors mia that day to count the Treasury cash. It happened that I had prepared that day a statement of the 81. profits for the year, and I laid it before the Directors in nn informal way. This is the sheet produced that I laid before them, and I shewed it to Mr. Harvey, "C. S. I*. 0." I had it made up ami Hhewed it to Mr. Harvey. He wiiil he \va«t pleased with the 'tatenient of the prf>fits f(»r the year, and approved of the .•?;{(M)0() U-injf placeil to Contingent Account. That is a meinorandnm made from the books for the purpose of arriving at the amount of the piofits for the year; the General .Statement is not made n|) from that. That was the last occasion that I saw Mr. Harvey before the date of the .Annual Meet- ing. I lielieve the day of the week was Saturday, and I think Mr. Harvey left on .Sunday, the allowing day, I don't know by what line he went. I don't remember when he returned. " I was present at the .Vnniial Meeting. The five Directors of the previous year were all re-elected at that meeting, Kith June, 1894. These wei-e Sir K. Thoriiurn, Mr. Harvey, Mr. (irieve, Mr. Munn. and Mr. Donnelly. At that .\nnuul .Meeting tiieie was .lothing said about a change of Directors, .\fter that .\nnnal Meeting, at which Mr. Harvey was not present, Mr. Harvey did not attend any meet- ing of the Hoard of Directors. I never saw bini attend a meeting of the Board after the 7th June, 1804. There never was an election of any Director to take Mr. Harvey's place. There is no Minute of the resignation of Mi-. Harvey from the Board of DirevUors. There is no ?uch minute on the Minute Book. We have no record now in the Bank of his lesignation from the Board of Directors." Question:—" Have you any letter from Mr. Harvey now in your possession or that of the Bank resigning his position as Director'?" Axaw.iR: — Xo, Mr. Harvey never addressed to me either as pro-Manager or as subsequently Manager any letter sending in his resignation as Director. •' Mr. Grieve returned after the .\nnual Meeting, and was at the first meeting of the Board suhseiiuentjy to the Annual Meeting. On Monday, 18th June, 1894, he was present at a Board Meeting. At that Board Meeting the Minutes of the .\nnual General Meeting on the IGth were read and signed by the Chairman. The Directors present on that occasion were Sir Robert Thorburn, Mr. Grieve, Mr. Munn, and Mi-. Donnelly. " We have coiresiiondence between Baiiic ,t Johnston and the Bank. I produce three letters"— (.Mr. Morris ol)jects;—" dated March 8th, 1894, •• C. S. P. lOa" to Goldie, " C. S. P. 10b" to Manager, and " (J. S. P. 10c" to the Directors, ah from Mr. AV. B. Grieve." (Witness is handed a letter from Baine & Johnston, Greenock. Mr. Morine oljjects.) "I know the tiiin. They are the Greenock branch of the local firm of Baine, Johnstou, & Co., and com|M>sed of the same parties as compose the (inn here, inclii.ling Mr. W. B. (irieve, now present" (Marked " C. .S. P. 11." Objected to.) " On May the 7th, 1894, a letter from tne same parties is pni- duced." (.Marke.nrore«aid. I this 2l8t day of Aiignxt. A.I). 18».>. ( C. S. PIXSENT. (Signed.) J. G. COX ROY, J. P. The further Examination of f iiarlks S. Pinsext, taken upon oath this 21st day of .■Vn^ust. A.I>. 189r>. " Yestc-rday I stated that Mr. Harvey had no communication with me on the subject of his re«igiiatiou in 1804; I ivceived a letter dated 18th June from hie partner, Mr. Onterhridge, received about the same date, which I produce, " C. S. P. 1(5." I laid that 'itter before the Board in the usual way, on the first meeting after the re- ceipt — Thursday. 14th June. There is no note of it on the minutes of the Hoard Meeting for the 14th of June. I was present at that Meeting. Sii- Kobert Thorburu stated that he had a private note from Mr. Harvey. (Evidence of its contents ruled out.) " That letter was produced and read by Sir liobert Thorburn at the meeting." (It is put in and marked " C. S. P. 17.") " The Directors present at that meeting were Sir Robert Thor- burn and .Mr. Dounelly. That li'ti-r and Mi-. Outerbrit'ge's letter were both discussed at that meeting of the I4th, and it was consider- ed that tlie letter of Harvey to Thorbnrn was not in the form of a resignation. The letter tVoui ilarvey to Thorbuni was discussed at the Hoard two days before the .Vnnual Meeting. '* I know Mr. Harvey did resign on former occasions. I have swu his letters, one dated in 1801 and one in 180:5. but he came back. The Bo;nd ditl not, therefore, take iiis letter of 1804 as a resignation, and did not consider that Mi. Onterbridge's letter was entitled to con- sideration, as he. being in town, could attend the .Vnnual Meeting, and there carry into effect Mr. Harvey's wishes. The subject of these letters. '• C.S.P. KJ and IT,"' was not Inonglit befoie the .\nnual Meeting, and Mr. Harvey, with thi- other Directors, was re-eleCed unanimously. Mr. (>uterl)ridge did not attend the Annual Meeting, and was not in the habit of so attending tiie .\unual Meetings. Mr. Onterbriilge did not address juiy letter to the .Vinuial Meeting. No- body attended the meeting on behalf of Mr. Harvey or Harvey & C'0.,and say to the nieetingthat .Mr. Harvey did not tlesire re-election. " .Vfter the .Vuuuul Meeting .Mr. Harvey did not .send me any letter iufonning me thai he retired. He sent a letter to the ("hair- man, Thorburn, from New Vork. That was read at a Hoard Meet- ing. It is dated June 20th. 1804, and marked " C. S. P. 18." I can't say at what Hoard Meeting it was discu.ssed. I believe Sir R. 33. Thorbuiii, Mr. (Jiieve, and >[!■. Doiiinlly wi-ir pi-CM-nt. \o oclioii wan taken ii|m)|| that li-lttT. Mr. Ilarvi-y was still ul»»R'iit from St. John's at that nu-ctiii;;. .Sir KoIh it riiorbiirn k.pt the l.tter hinit^.lf, anil iiu ri'|)ly wax iiiailt- thioiijfh I hi- Hank. " So publicity wu« irivoii to the fact uf ''.•. Harvey 'h reMlgnntloii. The Board cxpivx^cd the opinion that it wan not for tlu in to jjivi- it fMiblicity, nv Mr. Ilirvey niij,'ht in the Hr^t plaee chanjfe his mind, and in the second place thit when he came back he could make it known himself. .Mr. Harvey returned shortly after that. After hi>* return no publicity was jfiven to his resijjiiatioii either by the Itaiik or himself that I am aware of. The thing was discussed at the IJoard after his return, but not piaetically. I ilon't think it ever came up for discussion in u practical wav. '* There's no Minute at all on the Ixioks At: Harvey's resiy- nati >n, or of the appoiiitineiit of a successor to him. There was n general idea araonjj the Hoard that a s •■ tute to Mr. Harvey ought to be np|K)ii)ted within the year." (This was objected to.) " After Mr. Harvey's i-eturn I had no conversation with him on the subject of his resignation. H. iween his return from New York and the 10th Decenii>er, I8!)4, on very few occasions, not -e than once or twice, F have sei-n Mi'. Harvey in the Bank. He chi.e to me in the Manager's r.K>m. He never spoke of his resignation, or whether anyone had been electe.l in hi<« place, or what the intention of the Board was about filling his place— never a woi-d on the subject. His visit was of u businesa, not an ollicini character. " Mr. Harvey after his resignation was never summoned to a meeting of a Board. It is m>t the custom to summon l^irectnrs to mcetiugK. There are special days and times f<„- B„urd Meetings, and the Directoi-s aiv paid for their services. I)i,ecto.s are sonte- times 8umii)oned to special meetings of the Hoard. The Hoard Meet- ings are regularly held on " >• / ys a.;.i Thursdays atone o'clock. There was no special meet between Mr. Harvey's letuin and the lOth of December ,e.e's no record of such. The only pay for Directors was ,„al attendance, unless when absent from illness or attendance on public business. .Mr. Harvey did iioi. recpive remuiieratioa for attendances- froin the time of bis letter of ivsignaticm to the )Oth of December, I8!»4. " In 1893 a sum of $2r,0.m) was held as covtr by the Union Hank of London foi- overdraft. Tlu^se were securiti..s owned by the Union Hank of Xewfonnir.«etop« dfchir- e-\ a (lividiiiil for ihi- h:ilf-\tiir fiidinj,' on the :'.Olh i had rel'eren<-e to the premises oceui)ieil by Baine, .Fohustou, & Co.. im the South Side of Water ."street and also on the ."^outll Side of llu- llarhoui."' ( (ibjeeted to. ) "That Mort- gage was in tile possession ol' the Bank ai the tinii- when I took .NIr. (loldie'.s i)laee at tin- Board. Ii.il I don't think it wa» then signed by Mr. W. B. Cirieve. bul he signed it I think after lie came back. That deed was never registered. 1 think Mr. .vnight. . Solicitor to the Bank, obtained >Fr. ( irieve's siguaiure to it I liert I'lioiburn, .\Fr. (irieve, .Mr. Munu, .NFr. Doiiiielly, and the Manager being present." 1 i 37. (Mr. Moiiiu- ohjectf to thi^ as it wuh after the date of the Infor- mation. The Minute it* shewn to Witness, page 1G-— 'It WH8 decided by the Moard th.U the Mo,t«aKes of I.and« and 1 n-m.ses from Mr. W. H. (i.iove b,. recorded on the first of October. '""''" L ; 'T"".""" ""'' """*' "'' *" "'" *■"""'*'""' valuations, nan.eiy, .r , ^ '' ''•""' '""' •''•^'■n''**-'^. *.-.0.(H»(». .South Si.le ditto. «2().(XXf lotal, ^lO.OOO.') " That deed wan not registeiv.l s^ Acfonnt. for tlif year iiiding -Ust Mav. 1S«>:}, marked "C. S. V.2ir (Signid) Sworn bf fort- nie at St. JolinV. aforesaid, this 2:}r(l day of August A.D. lSi).->. C. S. PIN'SENT. (Signed) J, (i. COXKOY, J.P The further Examination of Ciiaiu-es S. Pissent, taken upon oath this 2Gth (hiy of August. A.D. 18it.'>. " In giving the Statenunit of Transfers of Shares on Friday hist, I overlooked two accounts of Sir liohert Th<)iburn as Tinstee. lie had 18 shares as Trustee, and he sold theu> to James (ioldie, Trustee, Aug. 1887 12 shales A. G. Smith, Aug. 1887 3 do, Robert J. Moores, .Sept. 18fH 1 do. Charles Niehois, Sept. 18J)1 2 do. " In another account Sir K. Thorburii had 1.*) shares as Trustee, which he sold in 1887 to \. O. Smith. Mr. (Joldie, late Manager, never had any shares in hie own name in the IJank; he had some from time to time as Trustee, but at his death there were none .stand- ing in his name either in his own right oi' as Trustee. " I put in two Mortgages from \V. M. Grieve, intended to i)e filled up in Xewfouudland. They were signed by .Mr. Grieve here but had been drawn up in Scotland. '• C. S. P. 22" and " C. S. P. 23." Subsequently auothi-r Mortgage was sul)stituted for them, drawn up by Mr. Knight as .Solicitor for the Bank, " C. S. P. 24." This was also signed by Mr. Grieve. Xone of these tbrc was ever registered." (Mr. Morine objects to the reception of these documents.) (Signed) C. S. PIXSKXT. Sworn before nie at St. John's, aforesaid, I this 2Gth day of August. A.D. 18!)."j. | (Signed) J. G. COX ROY, J.P. The further Examination of C. S. Pinsknt taken upon osjth this2Sth day of August, A.D.. ISi)."). " I wish to correct an error in my statements co.icerning the Mortgages from Mr. W. H. < brieve whicli wore sent from Scotland. They were signed by Mr. (Jrieve before they arrived in this coinitry." Crosx-Rxnmi nation bij .Mit. .Mokink: — " The failure to register them was not due to any defect in the signature. They were not used at all, anotiier was sul)stituted for them and signed by Mr. (irieve here. Phere was a blank in them when they eame out, the nanir of the Mortgagee was not lilled in. The Mortgagee would l)e s(imel)i>dy on beiialf of the llauk. and the name could have been lilled in bv the Uank after the Mortgages came out. "The Statement and Uei)ori ior lSi)t were in my handwriting. The Slatemeiil was sworn to by me as correct." QiKSTiox: — "To the best of your knowledge and belief was that a true statenKMit?" IJI ^ ill t I 99. AxswKu:—" With Hio inf.irtnation I tla-ii hml, to thi- U>st of my knowMjjo and ln-lief it was n triio Statement." QcKSTiDx:— " Ah u inattei- of fact wa» it a true Staleiiieat of the •ccomits of the Bank as they a|.|K-aie.l in the iKKiks of the UankT Axuwkr:— " To the best of my |)ie>M>nt knowledge and l)olief it wn« so." " I believe the letter- that I have pnt in sijrntjd Baine & John- ston were in the handwritinj,' of Mr. liol)eit Uiieve, who resides in Greenock." QuKsTiox:— '• What |H'rcentage would the Bank dividends in 1890 and 18!U alony there pay upon the market value of the shares at that time?" Axswkh:— " I think, though we kept w record of the market price of shares that the dividend and bonus voul.l amount to Hve per cent, of the market xalue in IS'M, and perhaps in 1.S!>1 also. Baine, Johnston, & Co., were paying on th.-ir overdrawn account in the same years six per cent. It would he a saving of money to sell shares and put the proceed* to ciedit in the Bank o>- into the business of Baine, Johnston, & Co. I will prepare a memoiandnni of the Inteiest charged upon Baine, Johnston. & CVs cuirent accojiut since January KSiK), and the piofit on their exchange account for the same period." ToMu. JoiiNsox, Q.C.:— " Referring to May and June, 18<»4. [ have said that there is no minute in the Minute Book of the Bank recording Mr. Harvey's re- signatiiju." QuKSTiox:— " If a full record were made of the proceedings of the Board meeting of the 14th .rune, would it not appear tliat^yon read Jlr. Outerl.ridge's lettei- addressed to you. stating that Mr. Ilai-- vcy had finally retired from his position as Director, and that he would not sit again at Board Meetings?" An8\vei{:— " Of eomse if u full record were made that would appear; but the Board were not in the habit of making minutes of pioceedings which were not accepted." QuKSTiox:— •• Would it not also be reconled that at the same meeting Sir Uobert Thorburn produced Mr. Harvey's letter to him to the same effect ?" AxsWK.n:— " The same answer applies, with the additional point that Mr. Harvey's letter to Sir Robert was in the nature of a private note." QuKsTiox:— " Was not that letter. jecl of .Mr. Harvey' leeeived his letter. Mr I :•' kv m the same w.ty as he wrote, and added that Ik I - J -'^ipi ^ 1. • 40. Ycrk, was n-iid nt a HiMinl Mitt Harvey's (leciition di-cliiiiiiir iv-vlect injj had iiifdiiniMl ihe Diieotor« to the •luiiie iffvct. I umlorstooil from Mr. f)iit.rl)ii.lj,'r that Mr. llurvfy'* rotin-ment wan flnal,— that Mr. llarviv inti'iMlfd his rf.ii>;ii;itii>ii to ht> limd. I don't nMii<r if I iiifiitioiK-(l thf fact of my intorviiw with Mr. ()iitc'rl)ridjji' at th«' iiK-oting of thi- 11th. .Mr. Unrv.-y's Utter of .Iiine 'JOth. from Vew The letter reiterat'.'s Mr. ion, and refn^int^ to act in any "V in the capacity of a Director. Mr. Hiirvey's first letter, of th< *h of .Iiiiie, vv I i,o» re^jarded by the Hoard att u resif'nation.'' Qi KsTiox: — • Did the Board at any time coinmnnieatc to Mr. Harvey that they did not eon-ider that letter as a resignation V Axswek: — " N'o. Thi- Board made no remark about the finality or sufficiency of Mr. Outerbiid«e'» letter. In my jndgment there is no ambipiity as to the meaning and finality of Mr. Outer- bridge's letter. To my mind Mr. Harvey's letter from Xew York is clear, decisive, and uiiaiiil)i;^iions in his refusal to act as Director. These letters of Mr. Harvey and .Mr. Oiitcibridge were not made niatteih of record by the Board. Vftei- the 'Jth of June neither I nor the Director!), to my kn(>wle(l<,'e, consulted with .Mr. Harvey in any way as to the affairs of til.- Bulk. le .v -it i*ay on thj'lOth of June, .\fterthe receipt of his letter of the 20tliof June Mr. Harvey had no connection with tlie Bank as Director." QiKsTio.v: — " Do you assume to ignore Mr. Harvey's previous letter of the Dtli June and .Mr. Outerbriiljfe's of tha Mth. an I Mr. Outerbridge's personal communication to you and the Directors?" A>f>*WKK:— " The loiters of the 9tli and the i:Jth June, and Mr. Outerbridge's personal communications were not acted on, for the reasons that I have given before. I mean, not acted ui>on by the Directors. The letter of the 20th of June got no pul)licity from the Directors, but I believe it was their intention to appoint a new Direc- tor within the year. Plie subject of the appointment of a new Drec- tor was inloiiu:illy discussed after the receipt of that letter. After the 9tli of June Mr. Harvey knew nothing whatever of the manage- ment of the Bank. He left the Joloiiv. I ^K'liuve. on thj norain»- of the 10th." Qu STiox: — •' At what meeting of tiie Board was the Annual Statement and ; -[ion for 1S!»1 submitted U> the Board of Directors?" A.NswKii:— "On the lltli of June, 1894. .Mr. Harvey was not present at that meeting. My reason for saying that it was submitted on the lltli is that I notice the atlidavit verifying it wa^ sworn on the 12lii of June, and the lltli was also the date at which I submitted to the Board a Statement of the Annual Profits." Qi*esTio.\; — " Did Ml-. Harvey at any time sec the Statement or Keiwrt of lS. ISO.'i. To Mr. Joiixsox. Q.C. The accomit of ILtivi'v &, Compjiuy was an advantai^eo'is one to the Bank. The Mank contiiuied their account after Mr. ILirvev's resignation as prev.onsly. It made v.n difference to tiie state of the account wliether he reniaineil a Director or not. I pre|)ared the 1894 State. iieut and submitted it to the Directois, Hnd they signed it.— tliose v.ho were piesont. who^e n.inies iiave ah-eady been given. J did not prepare that Statement with the inten- tion of deceiving inybody. I got the data from which I prepared tiiat Statement from the IJaiance-Siu-et. and tiie IJahnice-Shvet was taken from the books of the Bank. Xo alteration in \\^\ proposed State- ment for the year was snggesti-.l by any of the Directors. In pi-eparing the Statement I followed the preeelenl adopted bv Ml-. Goldie, and 1 believe by .Mr. Smith before him. We fiist take off a balance sheet before the lir.al closing entries of tlie bonks. That is not necessiuily submitted to tin- Director-. It was Mr. William n. Crowdy, the Accountant, took off that Malance Sheet. N'e.vt, from that Balance Sheet and from the aeneral Lj Iger, a Statement' of the Piofits for the year is made up. I prepared that in 1801 Mr. Goldie |)iepared it in 180:5. That i- submitted to the Directors, (the Statement of thu Pn.fits.y and iioui that balance of profits the Directors apply it for pur|)08es of Dividend and Bonus, and Reserve Fund, Contingent .\ceount. Bad ami Doui)lfnl I Vbi..; in brief, for the purposes of the closing entri.'s f„r tlie yei". When th.-^e closing entries are made we take off the the final balance sheet. From the final balance sheet the annual statement is then taken. While ad tliis was being done in 1!-;^! theie was no expression of want of confidence by the Directors in the Statenunt as p;i.|)ai'ed by iiie. Thei-e was nothing between nic and the i)ireLtors in the natmv of a conspir- acy or agreement to uiisivpresenl tJie true state of the accounts. To my knowledge there was no discussion tending to that cud anion" the Directors themselves. I wa.s piesent at the time at all meetings of the Diiectors. I he 1804 Sfitemenl was compiled by uie and sid.- initted to the Diiectors, ami >i.-;ned by all of them who saw it. It was imt .signed by Mr. Ilaivey, and he had not >een it." Qlkstiox:— " Was the Statenunt mr J804 as prepared by you and subinittid at the .Vnniial Meetin;; of that year in anv way what- ever the result of a conspiracy i)etween you and the Directorsy" .\xs\vi:u:— " It was not. TIk re was no such conspiracy a.> far as I am concerned, or any eonsphaey to my knowledge. In mv position as pro-Manager I had no knowledge of any conspiracy to deceive anyl)ody. It was I made up the Statement of Profits that was submitted to the Directors, and no director suggested an ainend- iiient to that. From the information I \\\,-n li.id, that statement was a hnna fith' statement of tin. result of tin- l{:iiik"s bu>iness for the year, prepaied by me honestly niul in ;,'..'.il faith, and shewing a bal- ance of profits for the year out of wliieli l>,.uii-es and divi.len.U (ould be i>aid. I r-iinply submitted the Slaleuient. which sliewe.l a vei v large i)aiance of profit, and merely -uggesied that .S;fO.(HH) should be put toConlingent .\ceonnt. It would be taken as a matter of couim- that the dividends and luuuis shoidd be paid out of tbesi' profits." " ('. S. P. 0," is heie iJiodueed, and witness savs: •• That is the » * 42. .StateiiU'iit as I siibinittwl it to the Hoard, and the allocations were made bv the Hoard. I wrote iu pencil upon the bottom of tiie state- ment when snbiiiitting it to the Directors the foilowinij; proposition, namely: — Dividends $54,720 00 Bonus 13,680 00 Reserve 20,000 00 Cohtingr vcconnt 30,000 00 Profit & Loss 7,319 79 Total «;l2o,719 79 as now appears in ink. The Directors approving of this proposition, I then wrote it in ink. A Statement similar to that was made in 18iV3. " I now produce a Statement of Profits to .Jlst .May, 1893, in . -• handwriting; of the late James Goldie, "• C. S. P. 25." '• Appearing at the fool of tiiat Statement in pencil in Mr. Goldie's iiandwi'iting, antl added to theamoniit oi the profits as shewn in ink is the following: — From Reserve $10,000 00 making a total of ^242,2^ f putting before the Directors for their ndo))tion a St,.tenieut of Profits and a proposid to deal with tlie apparent profits for the _' .w which could have s lijecteil them to an necn.-ation of lui ii ■) deceive and defraud tiie shaieholders. On the contrary it . my inteutiou that tUe .Statement of Profits and their upproprialioi) shoii'd be perfectly honest. " These are the di>tinnents. namely the Statements and Ueport for 1S91. which tlu Directors and 1 presented to the Shareholders and pubji^iied, and for the piil)lieation of which the Duvetors are now accused. 1 was in the Hank before any of the late Directors were on the Hoard. Of late yi-ars my bnsini'ss relations with Mr. (Joldie had been •.f.y iiitimale. I wouhl spend aln)Ut thirty hours each week in the iSr.^ik, and would lie constantly iu eonnnunicatiou with the Manager. The tiifie of the Directors in llu- Hank wouM be at)out an hoin* a wei'k. " 1 believe it has always been the practice of the Manager to make up tin .'statement .if I'rolits and the .\uuual Statement, and to 43; shew how he thought thi- Malanop of profit* should be disposed of, and to lay the same iK'fore the Directors for their iipproval. I was iiot in a position to know if tiie Directors ever disivgarded the Manager's adviop. Generally eoiniuunicatii)ns on business matters between the Bank and its customers were carried on throuith the Manager, and the result rcjwrted to the Directors. The late -Manager would generally have known more of the al'fans of individual custom- ers thai, the lioard worlil know as far as their relations to the Bank. All debit balances were laid before the Directore monthly, the first Thursday of every mouth. " Mr. Goldie was never indebted to the Bank in any amount worth speaking of. He never thought an increase of salaiy to my knowledge. He had the same salary from the fiist day to the last. The Directors never promised him, to my knowledge, any increase. They once presented hi-n with a suite of drawing-n>oin furniture. In 1882 the the shareholders voted him a Bonus of ^ilOOO. During the last two year^ before his death, and for some time previous, .Mr. Goldie was a man of considerable means, quite inde|)endent of the Directors. I believe hiii. to have been a man of high honour and integrity. He had long experience as a banker in several banks. He began immediately when he left school in a Scotch Bank. His repu- tation as a banker stood high before he came to this country, and enicp. I believe he was not a man to make up a Statement to lay before his Diiectors with intent to deceive the stockholders. I believe he was not a man who would consijirc either openly or tacitiv to en- able Directoi-s to put a false statement before the stockholders. I have seen the statement and rcjiort for 189.'}. They were drawn up by Mr. Goldie, and he attested the accuracy of thi- statement on oath in the usual way. I believe that the statement agreed with the Bank books. As far as the books went, I believe it was a correct state- ment. I have no doubt that with the information he had at the time the statement was correct. Some of the amounts due to the Bank on the 31st of May, 18iW, and :Jlst of .May, 18II4, which were consid- ered nt those dates perfectly good, have since tinned out not worth their face. In some degree this has been owing to the crash, — to a considerable extent so iliie. I had not, and I am not aware that any of the Directois ha 1, any anticipation of or reason to fear the coming of the calamity which occurred (Jti the lOtli of December, 18!>4, at the time of the .Vnniial Statement of the .May previous. The imme after the crash. At the time of the A niiiial V iiv.W ^^ »i ^ -- s i* -.- 1 li '» 44. Meeting in 1893 the balm.ce of the credit of the Bad and Diubtful Debt Fund vnm, I believe, the result of a careful e^^tiniate. I bt'ieve it was at that time con>*idered to be sufficient to liquidate all such accounts in the books." (Signed) Sworn before ine at St. John's, afore.«aid. I this 2nd chiy of September, A.D. 189.1. J C. S. PIXSENT. (Signed) J. G. COXROY, J.P. The Cro8s-E.\uinination of Cn.\KLKs S. PrxsEXT i-esumed this .3rd daj of September. A.D. 1895. " The appropriation of the balance of Profit & Loss oil May 31st. 1893, was carried out exactly as arraiijfcd by a meeting of the Board of Directors, and as api)enred in pencil in " C. S. P. 25." The pencil writing was Mi-, (ioldit-'s. like the rest of the document. The state- ment of Profits and tlie mode of appropriating the balance, as noted in pencil, was all the wi.rk of Mr. (JoUlie, and was carried out as noted in pencil and adopted by the Board of Diieclors. The Divi- dends and Bonus weie paid as noted in pencil in that Statcneut. The form of the Annual ."statement has been the same from a time previous to any of the late Directors being on the Board, and before Mr. Goldie came to the Bank. • " In I* !, ,.-iice to the .^'J.IO.OOO of Bonds belonging to the Union Bank of .Newfouiulland which were t'ausferred as collateral security to the Union Bunk .1 London to cover any overdraft, these Bonds are included in tlie Stateiiieuts for LSO.J and 1894 under the heading • Balances due by Banks, and funds available in fifteen days.' The overdraft is included under the heading ' Due by Bank, including •deposits at interest, pay.ible in .January and .July only, on receiving •fifteen days' notice.' There was collateral held by the Union Bank of Loudon for the saiii-.- piirposi- before any ineraber of the last Board held ollice. Such cllateial has always been included under the fame head in the Annual .Statement. There's no item on the Assets side speeifieally shewing the .S2.">0,0(K) Bonds. The absence of that item might be considered as u isleading, because if the Bank were largely indebted to the Union Bank of London, it would be ap- |)ro|)riated to that indebtediieMi in case of necessity, as was done in fact when the crash came and our Bank suspended payment. 1 mean that that amoiuu of .^^.lO.OO being included in the item ' Balances •due by Banks and Funds arailable in fifteen days,' might be considered misleading, in a- iiiueh as that amount might be applied, if neci'Ssary, to payment of debt due the Union Bank of London. .\s a matter of fact that was a f„n,l available in fifteen days. I mean that instead of being a free asset lor the benefi( of all creililors alike, it was subject to a first claim by the Uui.iii Bank of Loudon if any b.il.uice due to it at any time were not other- wise met ill aeeordanee with the conditions of the assignment. The whole liabilily to the Union Bank of London was inelnded in an item m the liability siile. .\ .sliarelioliler of the Bank taking liie Annual Statement would see upon the liability side incliuleil in an item the whole liability to the Union Bank of London, but he would not know it to be such, and upon the other side, amongst the assets, would be 'III ! i il ^^ &. included m an item the full amount of thcM- securitio-. thouirh he would not kno»^ it to be such. VeitI.er assets n.,r li;,l,ilitie.s purport- ed to Ik- stated in drtai! in the Annual Statement. I'nttin;; „,vself in the iH,s,tion ..f a Shareholder holdin- that State.nent. all the assets appeared to Im? appliealile to all the liabilities. ycKsTU.x:— •• What difference did it make to a shai-eholdei- an «uch, not as a e.vditor, that a ,.ortion of the assets, instead of bein- applicable jrenerally to the liabilities, was ri.«t applicable specially t,. a particular liability?" ^ ^ITITT'^ '' """''■ """*' "■•'••tevcr. Koferrin- to the State- ment of 1S04. I made that Statement in refoivnee to these [ioiuU or securities fjoua fidt, without any intent to mislead or (!•> Doing the same by the account of .May, 1892, the balance is j;:j'" |.M <0. shewing a decrease of .^IS.7t!I.Uof a re.luction from 18927o Qt'KSTi..N:-" Was the gross aimsint of John .Mum, & Co.V habihties and I.a.ne Johnston, .t Co.'s less at the Annual Statement or 189.{ than at the Annual Statement of 1892':'" Ax.swKK:-"Yes. by .«?27..-)70.91 in Munn-s case, aiul l,v.82:i :tG8 •>7 inHaine,. Johnston. .V: C./s. Thorbuin A- Tessier were iirHie habit'of submitting an Annual Statement of their affairs to the IJank." Aug. 1887, 13ec. 6th, 1888, 12 shares. (Signed) Sworn before me .it St. -loltnV. nforesaid this ;{id (lay of September. A.D. 189, (Signed) C. S. JMXSKXT. t\ i i ) J. C;. COXKOY, J.P 46. The Crotut-Kxiimiimtioi) of Ciiaklm S. Pixsext renuiufd, this 4th dny of Sf|>tentlx'r. A.D. 189.». . " I pifxliicf tlic Aiiiiii:il StatiMiu'iit siilmjitted to the Flnnk by Mews. Thoihiiin & Vv^shr for Mil. lft«J2. iiiul 189:{. Thi-y nhew proHts of tin- fiinrs biiMii.-:*!. in 18!>i to ho $24,Mi tner>. .•J7(i.-|.->.{.i:,. The Statement for 189.1, '• C. .S. P. «8,"also, like the otiier two, in Mr. Bradshaw'ii handwritiii" Shovr, a proHt foi the year of $14,017.2 >; Capital dne partners, $80,401.74. The increase in Capital is the effect of the Profits. "These Statements weie reqnired by the Bank, for the pnrpose, I believe, of fortifying tiie Directors as to the condition of the busi- ness. That was done in one otiier case, Jolin Mnnn & Co.'s, bnt not to the same extent. We had a Statement from the latter i rm in 18<)1, also in 1892. but not in 189.S. The Capital in the Statements referred to does not include Sir liol.ert Thorburn's interest in the Sealinj; steamers, amoiuitini; to 1()7 shares, at §200 each face value. Sir Jiobert Thorhiun, 1 lulleve. paid in the dividends from these shares to the Bank. §;i:VJ82 were paid in that way. Thorburn & Tessier never got any allowance on their account, except a l)alance to the debit of the Greenock Store .\I'.it;^.ig" aecoiint. whiih beiuif to the amount of between $f,0(X» and .^^.j.OOO, was cliarged oiftothe Bad and Doubtful Debts account. Ii was .ni account ihit was opeii'.'d, I think, alx.ut the same time that the new firm of TI i-burn & fessier began. There was another Statement from T.rburn & Tessier which did not come in until after the crash. I'ha. was submitted bv the firm to the Committee of the Legislature appointed under the charter. It shewed a surplus of Ix-tween $40,000 and $.")().(»U0, as well as 1 remember. 1 have i<')t examined the Statements •• C. S. P. 20, 27, 28," but a>sinning thai the figures are correct the Statements would satisfy me as to the solvency of the lii.n. I'hese Statemetits arc not in detail. If they coj lectly represent the facts of their business, they shew the firm to be solvent. Lxaminiug those Statements, and assuming them to correctly state the condition of the business, and taking into con-ideration the very huge amount shewn to be due to the partners, the amount of the assets over the liabilities exclusive of the liability to the partners, would allow of a large eontraetiou in the value of the assets, and >iill leave the business a solvent one. (n other words, it would be able to pay one hundred cents in the dollar to all creditors except the partners. "At the .Vnnual Staiemi-nts of 189:! an.l 1894 the balance due bv Munii & Co. on current aceomit was under .'i;75,O00. i'liey were doing a veiy large liusine-s, and had coiisiil,.ral)le as-;ets— large assets in the way of lloaliug craft and steamers. I believe Mnnn & Co drew altogether on Bennett of Bristol. Bennett of Bristol was rated at .fOO.(KHt sterling by us from our latest information. l!:ven in view of the large (|uantily ol |)roperly owned l)y Mniui &, Co., and their amount of Kxchange <>n Bennett of Bristol, .S7.'),000 wouM be a large risk. On August 2iid .Mr. Crowdy referred to the accoinits of Shea IMAGE EVALUATION TEST TARGET (MT-3) W . lire piovidi-d for." To Mr. MoiiiVK. L.L.n.:— „ *• Taking the ProHt & Loss Acco.int of .Statement " C. S. P »y that i.s chai-.-d with varioiH losses durin- tiie year, $:in S.-.(J • the meaning U-ing that that amount so written were debt^ due Th(n-- burn & Tessier, and reganhnl by them as uneoliectabie. The I'i„Mt * I^ss Account for 1892 in the Statement " C. .S V '>7 " shews $9,2(jrrtiof u..c..Ileetable.lebt. charged off. I„ the same 'account for m.i, " C. S. I>. 28." m, (i4:{.2.J were charged off. The total in three yeai-s would be .$80,708.11). The (irm l,egan in 1888. These amounts written off would be on accounts for supplies to dealers Losses u|)on fishery adve.Unres are charged separately and apart from these. The charges for the losses ar,- made e.ch year before any distribution of profits to the partners. By their Statements Thorburn & ress.er would apj.ear to haye allowed a prope- proyisiou for loss.-s upon bad debts. They di.l not appear to be carrying forward bad and doi.btful dents from year to year. In 1892. looking at the profit •nd loss account, they made a los, of .$1.1,487.14. The loss on that year's busmess is charged to the partners in their St.itement Look- ing at that account, exclusive of all the charges for conducting the buiuness, the losses were • Ist. Lo.s8 on adyentnres foi' 1891, including out- standing Adventures and the realization of *'''^''^'' $12,310 81 2nd. Loss on Adventures for 1892 7,114 83 3rd. Loss on Seal Oil A/c. excln-sive of interest 18.663 87 4th. Sums written off Dealers' andotheracconnts 9,268 !Hi 5th. Sums written off Steam Launch 1,316 47 6th. Shop loss by Fii-e 2 2i)4 lo 7th. Smn retained at Credit to meet future con- *'"*>'^"«'^-'* 4,500 00 '^'»'"' $55.469 66 '• The sniiplying business does not appear to be all '^ain ^.s a Bank Manager, the Statement impresses „ie that 'I'horbnm ATessiei- were keepn.g a careful eye to their losses, an.l making due provision «ol ■'".'?>..;,'■""""" "*■ "'" •'""•■" '"'~'"^"-*- '^^''-^ statements for 1891 ami 18.M impress n>e i„ the same way. These Stateu.ents put iK'fore Dnectors would in u.y opiuiou on their face so impress them and m the absence of any other special infornn.tion, would justify them ni considering the business of tlie Firm as solvent." (•'^'i?"**') C. S. nXSENT. Sworn before me at St. Jnliirs, afcresaid, | this 4th day of September. A.I). 189.1. f (^'e"^'<0 d. (i. coxHov, J.P. The Ke-Kxamination of Ciiaki.ks S. P-nskxt, taken this 12th d.ny of September. A.I). 189.";. "1 stated on Cross-Kxamination that wlib the information I then had, the Statement of 1894 was true." 11 I i I 48. Srn,em^ntu.?,'';r" '^^''"' ""^ i"f"''nation which you now have, i. that Answku;— " I shoHJd not consider it nltogether true with the informntion I now hiiTo. ' r,.«il^?^""'',"'\r ■)!'■■ ""'■""•'■'' -^^'S""'""'. ' '•^'ff.re.l t.. pr-vionn .XI' tf ','" '■'•''• ''•"••" '•-'?"'•■- hi« Directorship. I pioduceth. reply :o that, « pressed eopy dated 31., of An^nst, 1891. •ioi'.* Tm' • ■'■'' '" ■"■ '■'-''-'"'■'' "*■ ""• '«'f'^'l't""ce of that resigua- h ...cords of the Ha„k-. the Minute Hook for the year 1891 ^hew.! hlVi '■ w % '^"""""^•'' "" ">^' »'>-">l until the en;l of 1891, and oei:r%":r'''''^''-^--^'''-"-^ '"=" •••• --P-ent «. the Hoard •neefnjrs of hat year, i „ow pmduce another letter from Mr Ilarvey, dated the 20th of A,.ril, 189:j. •' C. S. P. .T.." I prodnce pivssed copy of answer, dated 21st of .Apiil, 189;j, " C. S. P. 3^ " B p ?ili' ^'"'il"" "''J'"''^ *" '*"^' P'"'l'K-tion of " c' S. P. 30" and "C. {>. V. AZ as affecting his clients.) h„ M ^i*"'*'" ',''"'■'■'' "'"' '■'*''''''■'' "*'''' P'wioced were found together in • "''"'' " ^'"^ ^-'^''^'''^'''^ '^■""^^" '" "'e Bank or out- *Kle that Mr. Gold.e .ntended to resign. Mr. Goldie as f.,, as I am aware, never had before 1893 resigned or intimated his intention to resign I a>n not aware that he was aske.l by the Directors or any of hem to revoke his resignation or n.,t to resign. Mr. Goldie told ,ne eho,l resigned, out I am not aware of his .x-signation on anv other authority, except the minute of .-)th October, 1893." Question:— "Ueferring to the Minute of the ISthof April. 1889 conhrmed and amended by .Minute of the 2.-,th of June. 1390, ( C. S I o. and " C. S. P. G.") how far did Manager Goldie and joursell afterwards carry out that .Mi..utey we.-..'^r'"[i"'7'"".^"'',r "" "^■^"•'^'•="'* wereconcerned. the amonnts «e.-e placed before the Duectors on the first Tlu.rsdav of every month. Thcv^e overdrafts continued to increase from time" to time, some at least h<.se of the large exporti,..,. houses, such as B.i„.. .Johuston's and Ihorburn .V I ess.er's. .Vi ..II events those of the latter house, continued to increase. I .lon't know of my own knowle.lge of anv objection to these overdrafts mad.- by the Directors d„Tin- Mi- Go die s tune. While I ups ..ither pr .-.Manager or Manager no ob-" jeetiun was n.a.le by the Board to overdrafs or to the increasiu.^ exchange or Cunvut .\erounts of the Directors. I .lon't think the Ex- change accom,,s,.dthoughtlu.y were over the liu.its.inc reasolin invtiine on the Board. .Vlter I went to tl.e Board there was no protest "made i.-re against the increasing eunvnt aecouni .f Thorburi. & Tessier nine, .lohuston. & Co.. or Munn & Co. .Vfter I went to the Boanl here was no ellort made by the Board as ■, body to induce individual members of the Directorate to reduce thei. current accounts, and to i ilii •1 : f . 49. comply \»ith the bound!. pivxciilM'd by the Minute of Apnl 1889 confirmed by that of June. 181H); and that thonjrh these account* were brought regul.rly Mo,v the Boanl the fir.l Thursday of every month. •' ' " Id reference to the Minute of the Oth of December, 1801, con- cerning Thorburn & Tessier. ! pr-xbice a l.tter fiom Sir Hubert Thorburn, dated IJth Decenber. 1891, to James Uoldie, Manager of the Union Bank, " C. S. P. 34." (Mr. Morine objects to its reception as against kin client.) •• I don't remember that money was advanced by the Bank to Sir Hobert in payment of calls on Sealing share^.. but ! iiave no iloubt there was. The letter " C. S. P. .«" was a reply to one conveying to fhorburn & Tessier the Uesoliition of the Bo.rd of the 9th of Dec- ember. Thei-e was « Seal Oil .Vecoin.t opened in the Bank after that Minute. 1 don't remember the particulars of that account. I will look into it and ascertain the particulars. "The Minute of the 2nd of May 1892 concoining Munn & Co. wu referred to by me as stating that • at the end of the present sea- *«on, when the result of the year's operations have been nncertained,' the matter wa« to be considered by the Board." (Signed,) c. S. PINSENT. Sworn before me at St. John's, aforesaitl, I this 12th day of September, A.D. 189.5. j (Signed) J. G. COXKOY, J.P. »«« « » The Ke-Examination of Charles S. Pinsent resumed this i;ith day of Scptembei-, A. D. 1895. •• The indebtedness of John Munn & Co. was on the 2nd May, 1892, on Curient Account $103.30« 88 ^^<'^>^»S^' 134,400 00 Total ?237,700 "88 'fheir indebtedness on the 31st December, 1892, was, on Current Account $11.5 811 42 Exchange 331,200 00 Total $447,011 42 " I don't know that that Account was taken into consideration by the Ou-ectors in accordance with the Minute of the 2nd Mav, 189' I don't think ti.eie is any record to that effect. There was no pe,'- mai'.ent reduction of tha< Cuirent Acco t between that date and the ' .late of the Bank's susi>onsion. At the attor date their indebtedness was about .?ir,,5,0()0 on Current Account. On the 30ih of November, 1891, their indebtedness was J^''*«'"""'s 1?15,002 (X) CUirrent Account 198.79.5 74 K-^c''»"fc'^' M.ym 00 Total .f-,.-,9.397 71 1 \1 % i. 60. "The Stattimnt "C. ?\ P. 9" i. tlu- (lociiiiK-nf I «hi'wv«l Mr. Ilaivi-v, I think on S^nlin-ciay, rho 0th of Juik.. miuI the other Direc- tori» who weiv present. I «hewiiig his approval of the umoui.t put down to C;.utin-jeut .Vccount. [n making the Annual Statement no use is made of this do-umenl. The closiug entries in the boks the .Annual Ke- porl is eompiled. That Statement is made up for the object of shew- ing the Dii-ec(ors the result of the year's i)usiue.*s. Tiie amount of di-ideuds in tliis Statement. ("C. S. P. 9,") and Bonus, and the nn)ount to liiserve Fund, and tiie am(,init remaining at Civdit of Profit and Loss \ccount are referred to in the Annual Report." QlEsTiox:— " i» that the pur|H>se for which this Statement is made upy" .-Vnswkk: — "This Statement is made up for submission to the Diivetois to shew them the residt of the year's business." Qlkstion: — " Is the result of the year's business as contained in this Statement as :• matter of fact what is contained in the .Annual Report, so far as tiie Report goes?" AxswKit: — " Yes. " When this Statement was laid before Mr. Harvey and the Di- rectors present on the 9tli, there was no partioulai- comment on it, as they did not give themselves time to ctmsiilerlhe matter. It was not the regular day for it, and they were not expected to coni^ider it. I mean to consider it fully, as they were ther.' for another purpose, and the matter was to come U|) fojinally and specially on the regular Board Day, .Monday." QiTESTios:—" 111 calculating the Had an.l i^iubtful Debts for the Annual l.'vport for 1S!»4, did y..ii go through the overdrawn ac- counts carefully, for the pinpose of striking off such debts?" Answki!: — •• It was not considered tiiat there were any Bad or Doubtful Debts that had not been already provided for in tiie 1893 Report. 1 refer to the Board of Din-elors as not considering that there were such, as the matter was ;d| l;,id before them, and they did not consider any provision for the purpose beyond that made in IfiM. " -Vt the time of the .Vumial R.iK.;t for 1S94 the letters of \V. B. (irieve and of Baine it .lohiisioii were in the possession of the Bank. In KS'.l.i ti-itaiii Bad and Doubtful Debts were taken into account and provided for. but no further pixtvisioii was made for them in 1894." yiJK^Tiov:— " In lSi>.{ were any of the aceouiits of the Directors considered bad or doubtlnl debts?" i Jl i\ \ ! SI. AxswKK.--" \,.. fn iSDi „„nc of th.- .cco.mt. of the IWrn... tnr« were coiwulori-.l Iw.l aii-l Jouhtfiil .lobt*." fK. ,';l"''-f' "=»=-" ^yh*"" i^ n» «cco.,„f i,. th.. Bank co.widcred by thf DinclOM lin. 1 i.NSF.NT resHmed this IGfh day of .September, A.D. 189.>. Mr. P1S8KXT says: — " In my evidence of ,|,e 3,d .,f .Sept.-mluT I said that there w.s CoHatcal hel.l 1^- the Uni.,n B.i.k .f ,.,,.,.„ to o..e. ^.^^^ before any n.e.nber of the last boa.,1 hel.l o«ice. On looking ove. the I il Mi >• t \ eorrwpomleiKH' f fiiul that the flntt tnin«rfr of Bond* wm mail* in 1808. at which time Sir Ui»Uil Thoi liuiu ninl Mr. lUrrty w«rre Diiec- took That wn« in tho timo nf Mr. SinithV maiiii^rctnenl. At thr Urn* of thf Annual Siatcnu-nu nia.lo lK-t»-t>(.-n IH(W uml th-.- rt-tiivinvnt of Mr. Smith tlif Itunk wa* lu-ver in debt to any bank holding collateral oL unii>. •* Thf J?2">0,000 ivaa inclndud in the item un tho Statement. • Bainncvs due hy Banl<- ami finuU uvailal)le in fifteen ilny«.* Thr HondN emilil Ijo (iirucd intn cash in fillwn day*. Vothing of that §'J.V»,(K)() wiiiilil be a\ aihible for our liaiil*'* |iiir|UH(>9, except the lialance after |iayiii^' the L'nii.ii |i;iiik of L..-i,l.iii, that \*, if anytiiinjr 'wrrr due that Dank. We were not always* ov^-idruwii there. .Vt the time of the .Vnnnal Stalenn-nt of 189:1 we weiv overdrawn .eU.OiXI Sterling, an«l of 1894 t':{2,(KH). On the .Hth of Xovember, 1894. the amount we owed the Union U ink of Uina»n wa* .ecfore the crash. I produce a Statement of what was sold in 189.1 and in 1894 up to the time of the siis|K'nsion of the Bank, " (\ S. P. 3.1" It shews when tiiey were iioaght as well as .i-hen they \s rv sold. In 189.1 and 1894 the face value of these Bonds sold was $I.4oO,(KX), "A Cable Transfer is a remittance by cable; that is, an order to a Bank on the other side «.f the .Vtlantic of the sum njentioned to the person in.utir>nel in t!i • transfer. I pco Ine^- a list of th^' Cable Transfers made in 1894 for Baine, Johnstcm, & Co. 8' 5 .|„ II M. April 16th, 1804 £5.000 sterling June !3th, 1894 £'5,000 sterling June IGth, 1894 £13.000 sterling August aOth, 1894 £1,500 sterling December 5th, 1894 £3,000 sterling ••In 1893 there were cable transfers for the same firm as follows; — June IGth, 1893 £4.000 sterling July 20th, 1893 £5,000 sterling August 10th, 1893 £6,000 sterling " The total amount in 1894 was £29,500 stg. The total in 1893 was £15,000 stg. I couhl not say what transfers would be for. but I know that in some cases the cable transfers of Baine. .J niston, & Co. weie to letiro Exchange of the litter on Baine & Johnston, that I*, tcceptances of Baine & .Johnston." QcESTiox:— " Referring to the overdraft of Mr. Donnelly, was that overdraft counted as an asset in the .Vnnual Statements of 1893 and 1894?" Akswek: — " Yes." (Signed) c. S. PINSEXT. Sworn before U/e at St. John's, aforesaid, I this 16th day of September, A.D. 1895. f (Signed) J. G. COXKOY, J.P. — — »»♦»♦■ The Examination of Cii.vui.es S. Pixsext resumed, thia ^^rd day of Septeml«;r, A. IX 1895. To Mr. Moisine, L.L.B.:— " When I said on my re-direct examinati:)n that with the infor- mation I now have I should not consider the Amnial Statement of 1894 altogether true, the word ' correct' wonl.l have conveyed my meanmg just as well as the word " true." To say that with the in- formatmn I now have I sjiould n(.t consider the Statement as alto- gether correct would have conveyer! niv meaning. Accordin-r to the books, the Statement gives cnvctlv the amounts due to" the Bank. The books were correct. At the tim,- I signe.l the Statement I did not believe it incorrect in any particular. ,Vs far as I ain aware of, the Directors who signe.l it. and who are now accused, did not know the Statement to be incorrect at the tinii; of signing it. So far as I am aware, if the Statement were ine-.rivct in the seiisol uow mean It was not ma.le so wilfully or f..,- the purpose of defraudin-r by myl self or by anyone else, as far as I know." " " Qiestion:— "In using the words of the Directors of the Bank, 'as business men I consider they would know more of the trade and ' business of each other than I wouhl." .lo you meu:. that they should kiu.w moiv from tlu-ir business knowlclge .vmorallv. or that as a matter of laet they did know more?" Axswek:— " I mean they shonld know more from their busim-ss knowietlg.- j:.-„,.rally. and tlhir daily iutercouisi. with each other I do not mean to asM-.t that as a matter of fact they n. in answer to the question ' doesthat omission ' make any difference to a credit .r?' [ said ';)f c.)ursc it doesl". I mean that it makes a difference since th( insolvency, because of the insolvency of the Bank." QiKsTiov:— •• Did the omission, in your o|)iuion, make any difference in inducing persons to l)ecome creditors of the Bank?" Axswkr: — '• In my opinion it did not." QuK.sTiox:— '• Was the omission oi' mention of that cover intended to induce persons to become creditors of the Bank?" Axswkk:— " N„, it was not. Then, when I said on the Kith that the omLssiou ' as a matter of fact (it) would be misleading •to that extent,' I did not mean to say that the omission did actuallv mislea'' anybody, because I don't think it would have made anv diffeii-nee in the minds of any creditors if the particulars had Ix-eii given in the Statement. .V piist.n would not become a creditor of the Bank unless he thought il solvent. A person would not become a creditor of the Mank which he thought insolvent, because as a creditor he would shan- in particular assets of llie Bank." Qukstk.n:— "Did the Directors who signe.l the .Statement of 18!»4 know that the linns of .lobn .Munn & Co. and Baine, Johnston. & Co. were insolvent 'i*" I I ! i i f: " : 1 1 •! X i }: :i ss. Axswkk:— " N'oi iiH fur as I am aware. Tlioy did not sav or do anything at the IJourd t.. iiiduw mc- to Ih-M.-vo that tluv considered those firms to be insolvent. They acted and treated these firnw an lhoui?h tiiey hcMeve.l th.Mu lo he solvent. I'he same answers are ap- phcal)ie to other aceonnts as well as to the two firms on which I was questioned l>y Mr. Knier.aon. " After the Fire of l>S!)-> the de|M)sits in the Bank rapidly in- cii-asod. On -May .list the .le|>..sits for various years were as follmv.s: 1890. .?l,!H)!(„L'i'..S.{ ISOI, .^l.Ssniit(i..J(. 18!)-_>. $2,0:{7 i)15 23 180.3, $2,!>.-)1.214.9.-. 1894. .•?.>..-,.$( ».7i»!».!»7. Ou August :nsi, 18!)2.the deposit, reael-.l their highest point, viz:- $;M<»8.<(,.J.(14. On the .Jdth of Xov,.ml,er, 18i)4. they reached *2..^10...}.x0,. Prom August 18i)2 to .Vovember 18!>4 the amount of decrease was $1,182,(128.87. " The Governuieut of N'ewfoun.llaud owed the Bank on 31st May, 1893 $73,4^! 0.1 and on 10th Dec. 1894 71(J,32.-> :« an increa.sc in that time of .•5642,840 78 Adding that inciease of (;overunu.ut deht to the decrease of deposits already referivd to, the auioinit is .Sl,824.8(i9.G.-). " The Union Bank invested iu American Seciuities after the rush jf dc'posifs iK.gau after the rire of 1892, the amount of .•«il7(X),- 000. As bmJduig went ,m and l)iisia,.ss opi-rations g.-nerallv the de- posits decreased, and we resold the American |{on«l. bought after the fire, to the extent of .•? 1.4.-.0,(1 i I 88. Ill oi-dcM- to km.w the conditio,, „f ., .nistomer's account in the fall, wc should re,,iii,v to know »hc quantities of (inh or p.oluce he ha.1 ,u. hand, aiul the fact that his account was h.r^a-r at a narticuh.r reason in one vear than a) the ^a.ne season of another year does not necessanlv in.,.iv that the account i. poo.vr. Although one owed more to the Kmk at the end of 1804 than at the end of ISD.} the qum.tity of fiKh on hand might enable him better to pay it." (Signed) Sworn before nic at St. .rohn's, aforesaid » thiN 23rd da.v of SeptenilK'r, .V.I). ISil.^ \ C.S. PIXSKXT. L'pten (Signed) J. aCOXUOY, J.P. The further Examinatir.n of C. S. l'ins,.nt. taki , this 24th day of September. A. P., 189.1. " I wish tf. explain, referring to the figures I gave vesterdav re- "JK-cing the liabilities of the Uovermneut of X.nvfouudland to' the Hnnk on the liUt May, 1.S1K5 .„d on 10th IX-cemher, 18!K. instead of being indebted, as I sai.l. to the \i.uu: on the :nst Mav, 18!»:{ in $7:5 - , j«4«o fhey were in credit .?112.1S:U:., owing to the credit balance at the ( n.ton.s which F overlooked in giving that statement. On ti,e 10th of I )eee.nber Ks '4. the debit balance given by me as $716,82.1 :j:} should be 548:U.-,1.77. because F ought to have allowed for the credits ntthe ustom IFouso. The actual increase of iudebte,luess in that time of .>.n.,,(,.T,.2(5 should be given in place of .■??.-.!) •'7:i (W " QuKSTlox:— " What was the amount of dishonoured cvchan-e'^" Answki!:— •' .'Sl()±24().(l()." ^>->'.iUo<. . QiKs-noN-:— About what amount did the Union FJank lose on he '"'.Is sol.l :n order to meet the Sayings FJank requirements after the 10th Decemiier, LSitr:" goo 4r rr^rT"" "i^ """'"'^^ '*'"'' ^1<>.7S2.():{. by lieceiyei-deneral ^-.l....i(,.(,.{ i iK-se lour .-.nounts ailded together making .■^201 8:52 :U weie entirely eonse(|iieiit upon the crash. '• deferring to the .Minute-Hook F "find the Last meeting of -.he Hoard attended by Mr. FFarvey In ]8!M wa. i.th F)eeember }m Th.- 30tl of May The hist lu September of that year was the 12tl, of Sep- tember. After .Vngust. ISi.H. th.. ,i,., ,„,eting Mv. Flaryey attended wastlK.4tl.ofSepte,ul„.r; be neU attended on the IFth of Septem- iK-r. 8..,{,ag.un on the Ilth of September, i«!».J, again on the I8th and 21st of September. Mn. After the 21st ..f ; .„.„,,,., ,«.,:, there was an abse.ie, the !tih of November, F8ii3. Ft was on the' ..th of October. IS'KF, that Mr. GoMic notilie.l his .t.signatbn. The ' li , I'll ■■. i (. I !■ I '>\ m. U.I w m,'\ \ ll «T. Directors n-wivi-d their feon •emi-nnmially, in Juno and I>eccniber, usually. They would Iw ciilculutid to the on.l of May and end of Nov«-inb<'r. The whole 8uni ullotti-d for the Directors for the half- year beginning .Fnnc Ixt mid endin- \ovumlMT .10th. IS'M, was rfi- Oi'ived by the Directors, except two sums to two Direc'ors whieii were not paid at the crash, ami wliioh we now hold in the Hank 8 noteii. These latter two directors wore .Mr. (irieve and Mr Munn. Including the amounts now held by us forth.se two Directors, the whole sum allotted for DirectoiV fee- for the half-year endins? .)n the 30th of .Voveinlier has been divided between Sir Itobert Thorbnru and Mossr-i. Grieve, .Munn and F>)nnelly. " Mr. Goldie in his time as Manafjer and I in mine nsmdly man- aged the sale nnti purchase of Kxchange. The rates did not vary. The Board was not nsually consulted in the sale and purchase of Kx- change, except so far as fixing the limits of the amount that should be bought fro.u a single firm. Of late years, since 1891, that has been the i)ractice. We, the Managers, have not been in the habit of consulting the Boui-d at* to the pinchase and sale of Kxchange generally. " Referring to my statement on iv-examination that the over- drafts on the current accounts of the large ex|v)rting houses, at all events, such as »aine, Johnston, & Co. and Thorburn & Tessiei-, con- tinued from time to time to increase, I am ref<>rred to the evidence of Mr. Crowdy, given August 1st. 189,5. and there find the overdrawn account of Munn & Co. on aist .May 1892. to be . . . $7J,099 84 on 31st May 1893, to be . . . 70,-101 93 and on the same date 1894 74,011 7ft Comparing Thorburn & Tessier'son same dates: 31st .May, 1892 f {59,:J59 75 31st May, 1893 357,890 02 3l8tMay.l894 359,09i) 15 In both these accounts on these particular dates the indebtedness on current accounts were smaller in 1893 and 1894 than in 1892. That has reference to C.rrent Accounts only. I said at the same time, ' I don't think the Exnhange Accounts increased miuh duriu' my 'time.' As betwe-n the 31st of .May, 1892, and the 31st of Mav. 1893,B3ine,Johnston,&Co.'s current account decreased by §7.802.27.'' ('"^'g'^-d) C. S. PIXSEXT. Sworn before me at St. John's, nfonsaid | this 24th day of .S'ptemi)er. A.l). 189."). f (%"k1) J. G. COXKOV, J.P. ii i 1 The further Kxaminafion of Ciiaiii.ks .S. Pixsknt, taken ujion oath this 25th day of September. .\.D. 1895. To Mh. ilfiniT.K, L.L.Ii.:— QrKSTK.N:— " Can you produce the balance-sheet referred to in the letter signem. of St Johu't. Uai.k Clerk, taken n|x>ri oath, who miyt:— " I WBn nil offlciul of tho U„io.i H,,>,k h,.i DeciMiilwr. I was Re- cciv.njj Teller when it closed. [ have h.^.„ i„ the B«„k twelve or h.rteonjea,x There we.-e meetin^^ of ,he MhMr.l.oi.ler, hel.l dnce theclo.,n^oflhe»ank. Tlu-.v were h.M in the BritiW, Hall St •John s. The first uieetinir was heM o„ the mst of Decemln-r, 18i>4 I was ,,re«c-nt at the nieetin-s. an.l was a,.|H,inte.l an.l acted as Secre- Uryatal thow meetings. The Di.octors of the Union Bank were p.-esent Messrs. Thori.nrn. Don,,. II,. (Jrieve an.l Harvey, now p,-.- wnt. I toc,k « note ot what transph^.l „t ,hos.. meetings. There wm _re,narks ,nade l.y ,„,n,e of the I)i,-eeto,^. now present, at those "At the meeting of the 31st l)ece.nb..r, 18!)4, F made mim.tes of the remarks of those Dnvetors. .M,. Harvey at that meeting rose and made a per,«onal explanation." Xfi„„?^'-f >""'!!'■ "''■'''^'.' "' 'l^^- ^"•"■- 'H'i''J,' eva.nined from the Minutes if it is the intention of the Crown to ..ifn- them later on ) " I tpy of a letter II ! ' *> » » ' — »Wei..jr received to ' Thatisanihi^r^i^d^rtr"^'^ ^"^" -''-' ^^'"^-^->' tion inJf B;;;i'"i;:!.;': 7" '='"'7 ''■• ""-^ asked «<,... transferred. ' 'Til' """"" '""."^ ""' ^'^■^"- '^-" '4'"^ original minuteT .f tie „:: t^,;"" /" ""' T'^'"- ' ""^ ^^"^ «poke at that meeting al all. "• ' '""""^ ''"^' ""'^ -^^'•- "--^ M. u^:::^ !;;:?,:' .;s r'r"^^ "*: ^"^ «- --i-^. i ".-d that for 1804. ihieh \::\i::r^ i^ s;::s -v^ f """"' ^r'^'-^-' at that meeting which I overlonL I L f " ''''""''' "^' ^is «.K.nt the corretpondeLe th:;;:'::.;^'''"'' '■^'"•'•'"-^ '" ^'^ --•''^ tharhe alt,is w^;', . 'r'T'^"''''' '■"' '™ '''•- tb. tin.e oi z .::n; M S';;';;,r .;;;r'";, '•■-■; ^ ^"'-^ "' re-elet.e.l in 18!»;J onh -.t the m- , , ""-''' '"""^"" '" ••^' c.-ieii^:x:Mo :';.';" ^ ^ '"^"-'^ "^ '^-- ^^^-. '^^^. -. m. t-..-y ;n.s. g ,.ek not .hree. bn, U^emv-l;::!:;:::: -l" "'" "'■ ^'""^^ (Mr. Johnson, C^. C. objects „, .."ny statemen't of ^r.■ f • • • i.-.g taken a. evidence against Mr. n.Ly, uZ^. llL hau:;.;; 'ii i ^ I l\ I; ^^^ 61. prewut. lion. Mr. Morris objectn also, on the part of Sir K. Thor- burn.) " Mr. Grieve miid he Mieved both Banks thtMi took a wrong onrse. He place.l himself mion n-cord twenty years aj?o a*, oppo- . It, and had at various times since pi-otested a<,'ainst it. 1891 was -late for Mr. Harvey or any niemlwr of the Board to resi.rn. In reply to a question as to whether- he himself weiv heavily indebted to the Bank, he i-oplied that if ho was it was Iwcaus,. the Board had agreed to allow it. The words I have in my notes were ' Perhaps •o; Directors allowed it.' These words are but the skeleton of hi*; answer, and as far as n.y memory serves me I have correctly reported him m my last sentence. I i-enienilx-r he said, ' We are all in the •oup!' That was after he sai.l lSi)l was too late for Mr. Ilarv- or any member of the Board to resign. "At the meeting of January l.-,th, 1895, thei-e »vei-e questions addressed to the Manager as to whether certain property had been mortgaged to the Bank, the deeds <,f which were not reteinber, A.l). 1895. ( >V. W. WATSOX. (Signed) J. G. CONUOY, J.P. The Examination of Wh.i.iam W. Watson. R-sunied this 27th day of SepuniiK-r, A.D. 189.5. ^'o Mil. MoHiNK, L.L.Ii.:— " Thea- was considerable excileinent over the Bank affaii-s at the lis I Jli ii 62. time of those inietiiif,'s to which I have referred. I can't Hav that there was any excitenu-nt .lis,,|a.ved at the meetings. There was con- Kiderable discussion. Soni^ of the speakei-s displayed excitement at the meet.Mg.H. At the opening of the Hi.' meeting the Chairman intnnated that the ni.-eting was called for the puriwse of electing a p«-ovisioi.al Hoanlof Director.-. I think the statements put in vesT-r- day wei-e submitted i.t tl. • second meeting. January IJth, 1S9.3. In fact they were submitted then. They are in the handwriting of the Manager, Mr. I'insent. I believe they were compiled from the books of the Bank. They were prepared, as far as I know, by the olRcers of the Bank. I presume Statement 1, ('-W.W.W. 1.") is a copy ot the usual monthly balance sheet. " Sir Robert rhoiburn read those Statements to the meetin». I ara not sure whether they were signed immediately before .m° im- mediately after the rea.ling. They weie signed at the meeting. I beheve they were not signed when they were lirst pioposed or sub- mitted to the meeting. I believe they were signed at the meeting, on a demand that they should be signed. " The words used by .Mr. Grievf; were ' We are «ll in the soap,' used Ml the present tense. That was at the first meeting, the Decem- ber meeting. These words were used after he had been roferrino- to Mr. Harvey's action in 1891. I took him to refer to the condition of affairs obtaming at the time the speakei- was using the words. [ look them to be used figuratively. I thought they conveyed the meaning that all the Directors were in the same boat at the time the speaker was speaking. The accent was upon the word 'all' as far as 1 remember it. The tenor of Mr. Grieve's remarks right through was that there was equal responsibility upon all the Directors and that they should sMnd or fall together. The words • equal .-esponslbi-itv' in my answer may appear to convey more than Mr. Grieve seemJd to intend. His sole ine..,.ing seemed to me to be that no director could be allowed to resign at the time th.it Mr. Harvey tendered his .x-signation. I understood .Mr. Grieve to mean by sayin- ' we are all in the soup,' that they were all in the sam. position at° that time, that IS, in their capacity as Directors. The Commercial B.i.>k had Buspendea at that time, and the Union Bank also. With the leadin- firms at that time inx.lvency ?as imminent. There was a "eneral financial panic at that time in t.ie Colrny. " " In reference to Mie Mortgage which had been prep.ucd and not registered, Mr. Grieve, at the meeting of the l.-)tl, .lanunry 189.) 8aid that he arranged to have it registered in Decemoer, when he ha.l made up his mind to go into liquidation, meaning, as I u:i.lerstood tin-., he had made up hi-^^ mind to go int.. liquidation in December' He did not s.iy that he bad comm cated that decision to anvbody He did not intimate, that I understood, that there was anv un.iei- standmg to that effect with the Board of Directors. He "did not intimate the time at which he had come to that (leci>;on. He used no qualification or amplilication of the world • li.inidation.' which is the word I have on my notes, and which 1 believe he used." To Mh. Johnson-, Q.C.:— " As Secretary of the meeting, I to.,!; the notes with the idea of having a recor.l to -vhich I eoul.' refer in the event ol questions bein-r asked in sul).sequent meetings. I d.m't profess that my notesaiea 'I i ,1 i I '\i 63. v-rbutiin rv[y>vU except tluit the words I hnvo in my notes are the words that were used in mi>st ca-^es. f-i most c ises the words exact, in all other nspects my notes re|>ri>sent the meaning of the H|H.'aker9 as I iniderstood th?ni. Yesterday I said that some of ilie KjM'akei-s spoke very rapidly, and that I did not take all that they sai.l,— but I took the purport of what they said, accurately, I think. I sat at n table at the upper end of th.- Hall.— at ii k-aru of his re-elec- tion, and not that he learnt that on his return to .Vewfoundland, as luy language yestei-day i.nplied when referring to his speech." To Ho.v. .Mr. Mobuis:— " On the IGth January, l**"). Sir Itobert Th.)rburn referred to the condition of his own rtr.n. It was after the presentation of the report drawn up by the Shareho; lers' Committee. " He said there were two > U.s to the story. He had some capi- tal when Thorbiiiii & IVssier started in tlie business, he had some shares in the -Sealing Sr,- 1 uers; ti it t i,-v li 1 1 oie.i n i L- over to the Bank, and they were good assets. He claimed tiiat his account was an exception to the rest, referring, as I to.)k it, t . tile accounts of the other Directors; they all knew the late Walter (irieve had pK-nty of capital, but he lost all, and when he dieil. he. .Sir Robert had onlv the bones to pick. The Uank.at Mr. \V. (brieve's dealb.stoo I to lose a" con- siderable sum; that he, .Sir liobert, did his best to realize the assets of the lirui; that he g(.t .Mr. James Tessier to come in; and he, Sir Robert, took the luirden on his own s|i„nlders! thus relieving the IJank. He admitted that his overdraft was large', but he claimed to hav more to set off against it than any other linn.' His K.xchange haon lii,. having submitted .statements of his affairs diifering one from the other; on the .lay after the crash he hail been asked to make a Statement to the Uaiik.'but circumstan- ces had since occurred eompeiling liim to make an alteration; he had been thirty-three years dealing with the I'niou Hank, with an annual lunu.ver of .•?.")(«!,(>!)<;; iie ii.id paid large intereM charges, wliiell had helped to make the large dividends declared; He had not one dollar stowed away, and eoiil.l j.M.k anyone in the faee, an.l had never caus- ed loss to anyone intenti.. .ally ; he iia.l been chained like a horse in u I- ■ ' ! ! : If.! 4 61. cart between (ishtnneri and miaaieincii. It was well enough for the latter to nccusc him ami othoM, hut out of his trade they had made theirs, lie conclude.l by expressing the hope that he had shewn them there were two sides to the question." (Signed) Sworn before mo at St. John's, aforesnid, I thi« 27th day of Se|iti'ral)er, A.U. 18J)5. ( W. W. WATSON. (Signed) J. G. CONROY, J.P. I; i -! i I 1 H I : ! ' Thf Examiuntion of James Goudox. (,r Saint John's. Merchant, takt-n uj)on oath, who sa\>: — "On the 17th June, 180:{, and pievions to that date, I wax a •hareholdcr in tin- Union Mank. I havo Ik-imi a shareholder sini-f 1875. I was a customer of the Bank hcsidei. [ had a current account thei-e, and also had ujouey ^here on de|Kjsit. I continued to he a HharehoMcr until the 10th of December. 18{»4. I iiad Hfieen shares on the 17th of Jnni, WXi. and I purchased forty shares on April <»th, 18^1. Fi-oni June, 181».{. until Deceinher, 18i)i. I continued to l»e a shareholder and to he a customer, having money on deimsit and on ■ccunnt current. " I was present at the Annual Meetinj,' of 18!«, when the Annual .Statement and the Iti.|)ort were read hy Mr. (Joldie, the Manafjrer. in the pivsence of Sir Kolwrt Thori)urn, in the Chair, and some othei' Directors. [ have already identih'ed. and I now identify, the pa))er exhibit "U.W.l I.e. 2" as the .Vnnual Uep-nt and Statement of ,\ffHir8 of the Union Hank for the year ending :ilst .May, ISiJM. •' I have laid an information in this case, makini; certain charges against the late Directors of the Bank. I complained that this was a false M ,d fraiidiilent statement, made with intent to mislead the shareholders. F was (leceived by that .Statement. That Statement misivpresents the true stat.' of affairs of the Bank. I peru.s<(l it. and on reading it I came to the couclus;.,ii that the affairs of the liank were in a healthy condition, when it was not in a he.dtliy condi : .n, as the Statement was not a true st.itement of it- affairs at that time.' In the item t.f 'assets- we have -balances |ue bv Banks and fnn Is 'available in l."> days, .«i2.l71 07(1.12.' That item is ineorrect, inas- much as !?2.-;0.0()0 of these a-si-t,., were \ew York City Bonds, which were not held l)y the Bank, and were not availi ble for the general civditors of the Bank at that llmi'. " Ueferring back to the !{eport altaehed to he Annual State- ment, the Keport says liiat the |>rolits of ih,. year vere ■S.U.2l(>.20 after .nik'u,' fill provisin ; , • ,|| i,,l ,,l I ,,:,• f.,! ,.|,ts. On hearing the Ueport read, and on reading it myself, I ' _„eved thai all bad debts h.id k'eu written off, and provision i; ..• lor all d..nl)ifnl deius. In 18!t;5, wlu'u that Statement was ma . was not true that all the Assets in the Statemeiit were available within Kfteen davs. and the two huiulred anl'U- ItilllT i|i-|||M wliiih Will, viiv il.)iil)tfii|, ,111,1 i»iii;ht f.iiwunl a* i>Ii- lor any lotx that iniifhl aii«'. tiU-H thf l>iivcl(»r*' brou;,'ht foiwiird ax II) »<»iiu' biul, at that ti I )i»g8 are not shown to bo know,, to the l)iroetor« ) from tlu'r'T~'r ")!.■■ t"7\f^''''^ ""-' """"•^' "^ ^''"' '^'"'i"^-« U iiom the hooks of the Bank. (ScooiKl objection, is that this in ^condnry evidence, the primary I— ..ft, .. ^'iilable. ) '^ "' nor, '^/'^'^ -^^k:--' Messrs. John Mi.nn & (.'o.. di^w „,K,n C. T. Ben- ZZu 7 , ' : ''^L^ T" '" '^^' ^''""" »-'^-- -"' ->- "-• (Signed) JAMES GOKDOX. this JUth day of .Septoniboi. A.I). IHIK"). \ (Signed) .1. G. COXKOY. J.P. The further examination of James Gonlo... taken upon oath thi« Ist day of Octoboi-, .\. I) ]sa3 aiuir'TM'T'T;',""'^"!^"""" '"^^"'" ''^'•^^-" ^'""" & Co. il;: /sisr z" M ;t:^r 'tTh^'' """ '- "^ ^™- ^'•"'" .J. (; ,,) • *'••'■ ( '^''^T "II' put in ami marked two. ," m"^' "'■'■ i":;"*^''^"" <■'•"■» '• • 'x'oks of Kxehange passi,,,. bc- «een Mum, an.l Heimot, thivigh the Union Hank. boh. Jone x-Vs n^HncUons eontamo.! in two years' books. Tlu-y are n^a.^o.^a^ ^ . (b)^ '"■ l-l-r «• ) .s Kxohange sent I>y .-onnest of Mnm. & Co ', IKimoll, (o )'> ^ ^' •••''*" the receipts from C. T. ^^^ _^ gt,KsT.os:_« What was that Exchange sent to C. T. Bennett II i • '1 I r 1 1- . ■ 1 ■ ^-M- 67. (Question objected to bv Mr \r„,.:„„ ., i T^ ' because \J (Jor, on h-. suL.. h u ? ' "^J''*'' '" '^''' "^''''^"^^ the„,atte.. refer Id to d ^k "T '7 '""""" ^"'''''-'^'' «' are in he can only cit^t'he 1 '''?^' ''■'"" '''^^ ''•>'^"'"""t^ that .ieduetion.f.o:;L:\,tu;:;;:r.;'"^''^''"^'''^-^'*- --' "-^ ^"- "■•« John1iru'& Co !ll'c t'V"" "\''^^""""<"'"tion Kxchanj^e by ortb. 'innteXu^;./b,tri:.:';:^'v";:'?:'^: ^"^^?'- for that statement A » ' .„„ " , : ^ ^- ^- ' • » ), is my autlior ty then,, that i.. , I . ^ZtZJ'^''''''' r'T '""'^'"^ "^""•-" we.* sent by the Un J ^ k"' 'I'"' "*'''" '^^"^^^ Kxcbanges Bennen. Lnt. rp;;;:^ have ab-eady paid 2,3 cents on the i,;;;;:.;. - ' ''' ''^^""'"""-^ ^'^ ^'"'''-^ a« .^Jtfu. accor Tt^xi'tirs ^n t^,;:;^;:-- - SlunsiioN.— Was that bnnmn;' forward of thnf ™„ -hAnl/.^.?-;-^^^^^^ Ba„k?''"""-~" '' "••" '"' " «"•■•-' «'"t-n""t of'the affairs of the has::::x:ii;L;;r:;ri::rr*-'*"-^'^'-- ^^-^ «- Trustees. I have ev„n , Z •"."° '"""'"' "'* ""^'"'' 'he to their deaiin,. .wMuiirt^ ! . '»: r^ ! 1^;^;,::' '" '•'■^^-- •argesumofmoneytothernion H k 'li! l" . ?''" '"'"''" curity, 1G7 share, in the Sealing n\vi .''" ' •"l"'^' ^"^' P^'-fal «o- thc request of the Tnio U... k " ' . '' '"""? ^"■"^•*"^- 1^"^ i" at f.-om per.sonai knowlX- Tb' ""^^°'"=""'''' ">'-' inforniation mentsinthepo.: !f: \,,J'; .::;'7/'^';'>• "'f-'-'ion is doou- 167 shares as cover f o S i • .bet H. ^^ T' '''•" "-'^ holds .:.> of «;i,«, „ ., ,1'S ■ r, "■' »'■• ■ »'»'-i"s » <--|.i- bu.in«. d,,., ,,,.,0 ,i„ „ , ' , ■'" " ""'■' " " "l'i'»l foi- 11.0 »-" "i". .'» c .';"..,■ . :i'::j""f' ; •'"■;""•■- transacted Ibeir I-:vclnn-e l.v I " """''""■n & Tessie. Co.. l.on.lon, bvp. X. • M ;m"'V;" '^' ''"•'■"""^' '^"'"-'^ .he 1G7 -bares referred to." ' ""'"'" "'^^""'" ^'"^'Pt unioiu;;:;::;^;;,^;::;!/""'^^"""^ «^ ^''""•'•".•" & Tessier with the il li -^Wi 4 68. (Mr. MouiXK objects, as rhe aiiswei* would only be a mutter of opinion; if based on Klines they should l)o [ ulueed.) .\n3WEk: — ' 'Ihe account was a very doubtful account." Qlkstiox: — " From the amount of Capital of the firm and the amount of business they were doinyp, and the amount they owed the Union Bank in 189:5, was their account at that time doul)tfur:"' (Mr. Morine objects. That u fact is assumed that is not proven, viz. : — (1.) the amount of business done, (2.) That it is a matter of opinion, (3.) That it is not a i*ubject u|)on which e.\|K;it evidence is admissible, and (4.) That it is not shewn that Mr. Gordon is an expert.) Answek: — " It was a doubtful, dangerous account from the start, and in 1893 was a very doubtful account, and should have been provided for by the Contingent Account, and partially written off as a matter of safety, doing such large business with the Bank. The Estate of Thorburii it Tessier is insolvent, and will not pay 100 cents in the dollar." II I (Signed) Sworn before me at St. John's, aforesaid, this 1st day of October A.I). 189."). JAMES GORDON. (Signed) J. G. CONROY, J.P. The Exai iuation of Jamks Gordon resumed, ti j 2nd day of Octo- ber, A.D. 1895. " Sir Robert Thorburn had a meetin? of his creditors in the Commercial Uoom^s at which I was piesent. I was not at the first meeting, but I was appointed at that meeting one of the Trustees. Sir Robert Thorburn told me that the Estate of Thorburn & Tessier would pay fifty cents in the dollar. He offered me. i;i one of the Trustees anis or carried to a Cnulingeut Aecouut to meet bad or doubtful debts." Qltestiox:— '• Was that aeouut in 1803 a good, bad, or doubt- ful Account';'" ((Question objected to. Mr. .Moiine objects uidess the witness speaks from his personal knowledge at that time; if he speaks fiom sources of knowledge, sueh as books of accoinits, he must produce the accounts, and not his deductions from them. Same objection from other c(ninsel for l)efi'nce. ) " I i-.iwu- In the .■oiiiiijy isi !.S.",7, ;ind have l»een engaged in the business of (he coiuilry ever since. I have been an .Vceouiilant for twenty-eight years, and am ae(|Uainled with the general lusiuess of the country. I had six years' exi>erience in the olfice of J. & W. Stewart, and ke|>t the books of James Baird (in whose business I am :l( 69. . paitner) tor 18 yeu,-,. [„ ...y expen.nce I have a jjeneral kn.,wlod..o of the radeof the country. uc.,„ire.i i.. that tiim-.-.f l„,ok .lebrs, fishery ,leb s. and anythi,,"^ pertainin- to the trade of the (Jolonv [ have «.^.. theacoomus of Maine. Johns.,.,. & Co. i„ the Union Bank, «l.oustate.„c.ntot affairs sni.n.itte.l l.y Mr. (irieve che Director Hhewinj,' his .Assets and Liahihties " john?torrr^~'^''"" """■• "''=" "■'" "'^' ^""•"'''"' "f »••""*•. Johnston. & Cos account n. 18i»;i; was it ^^ood. doui.tful. or l,ad?" (Question objected to as indicatin- a better source of iufoiuiation which must Itself be j)iodiice(l ) ' An-swkk:— "-rhe Statement siienn me was a Balance Sheet r;;: B„;r '""■""''• ^^'"^^ '"- "^'^•" '"'^'••"^•- ""'^ -"■••« ^<' '--^ the u.'i;:B.:^ •:"""' ^'^ '"^""" ''^ '*'""^' '^ "'-'""' * <'«• -'^^ Ql-ksti(,.v:_"A,u1 from your examination of that account will you .ay whether in 18!,:^ it was a ,.>od. doubtful, or bad acco.nU-'" h..J P ,''V'* -^^ '• 1"^-'i<>""f the opinion of the witness bed ou facts which should be produced. (2).' If tendered as' evl ^:5;:: rSnii: '"""■"" ""'' "" "'^''"' '- ^ ''■ '"^- "'^"" ^-- «■- of M"7'!sor'h''' "'■^" '^"TT "^ ""'"'■■ •''''^'"^"" * ^""- «» ''•- ;^i^< «08 l)'r- .V •'deb.tof.?18:{.84.-,.4.-,. aiul on Seal Oil acct. ♦-0,1/vHM,., and on tAchange .\ccount, $120 CKX) " tionrlT)''' ^'*"'"'"'^' '""'''-■'■ '"^ '"''■'"' ■'"''J'^'^^ ^'^ ""^ preceding objec- doub^uS:""'" ''"""' •'■••^--" * < '-'^ -count was „ bad and Kt«, !i •''*'^ """'' *""' '" "'"' ''■"'' "" ^^'^•'""3' whatever. Mv. Grievo Htatcd in ,ny presence in the British Hall that they were waitiultor then 1 h "l'f^'-^"""y t" f,'" i"K- liquidation. The Bank had not then mid has not now. any security fro.u Baine. .Johnston. & ( 'o " ( i'he answer is „bjec(e.i to on the ground that it must be from information since received.) (Witness is ,.,F,.,,ed to 'C. S. P. 11.' and is aske.l to read the last paragraph on page li. Ft i« objected .hat this should not I,,, v, I. ..the letter speak, for Itself, an.l one part of it only is asked for ) Ql-KSTiox:—" Was security asked for bv the Bank^" for tTT"'"" '' " "'" ''''' "^ "'•^' '^■"-^•'-l'?^-. -. I . 1 , ,_r wish t,. correct that statement, the letter of doinn.id that I refer to is 10,h April, I8!(l (• (J S l> U' ," (Mr. Morine objects to the reception of this letter.'as not shewn to have been sent or receive.l with the kiiowle.b.e of either of ehcms. >,.. (,,eve and Mr. Donnelly; and in The l^o^ ^ ' . ^ pro..f of their knowledge the let.er being only the unsworn esHm,. of a person not a witness.) "mnoiu [^7^'^;'"^=-; "i'l M-'. Itaiue (Jrieve ever state in your hearii... that he had o!feren of forty ci-nt-. in tiK- dollar. That ini.tin- was hold in th.- Cinnicrciul U.hiuw in Ffbruary or March of thio yvur." Ql-KSTlox:— •• Was it a triu- statj-nu-nt of tin- affair;* of the Union Bank to brin- forwan! tht> account of Hainc, Johnston. & Co. in full, without provision U'ln-; made for it in Contingent or other accoimr:'" ((Question objected to as opinion evidence,) •Vxswkk:— ■' It was a false and fraudulent statement of the af- fairs of the Hank. I was diceived by the .Statement, inasmuch as I invested more nioiiev in the stock of the l?ank on the strenjjth of that Statement. It wa.s a false an I fraud iKmu .St ite uenl to briu'r forward Baine, John.ston, & Co.V accounl as a goo.l asset. I bought further stock subsequent to that st it.'.ueit. an I lost :m i ciistcnjer an 1 a depositor." (*^'f<"i<0 JAMES (iOUDOX. 1) before me at St. .lolin's. aforesaid, ) s 2nd day of October, A.I). ISO.j. ( (Si;,'ned) J. G. COXKOY, J.P. The fuitherc.xainiuatioii of James (Gordon, resumed this 3rd day of October, A. I). ]89.*). " In Xoveniber, ]8!):{. the Bank declared a dividend." QlESTlos:—-' Mad the Hank from its net earnin-s for the pre- cednij,' year earned that dividend?" ANswF..t:— '• In November, I,S!. ...e bo .ks wonl.l not shew, as far as 1 have seen, the profits earned lor the six mont'.s preceding' Bad and doubt" d debts would be written ...T at the end of tiie finan- cial year. The Directors- accounts in IS!).} were brou},'ht forward in their entirety, and interest char-ed upon them, except in Mr. Donnelly's case." ^ ^ (In answer to a .|iiesti()n objected to by counsel for the defence.) " That interest— the inlerot on ijiese accounts— was part of the fund out of which the Dividend was paid in N'oveniber. 18!»;S. " My information was not personal— it i> fr„ui the books of the Bank. I was paid my .lividend in Xovember. LSiVJ- it was paid to my account." C^rKsTiox:-" I„ lSi».{ (J.-ueral .Vccount. Annual State.uent there IS the statement in the assets. • Bills I)i..counte.l, Loans, &c ' Does that amount contain liie overdrawn accountsof all the eu-.toiners of the Bank?." AvswKl!: — " It does. " ''"''^" ■'•'"'^ '^*'''l"^ " ' I< <-:illed the Mont 111 v Balance-Sheet Book, which shew- the .assets of the 1,,.. '. at the end" of each month In that Mn,„bly Balrmee-Sluel Book overdrawn accounts are shewn n. a se,.arate item from Bills Discount.-d. I here pr.ulnee a copy of the Balance-sheet. ( Mouthly,) for .'Ust Mav, KS'.I.!, • ,1. (;. 4.' ' I waspiv^ei.t al ih.. Annual Meetin- of ilie Shaivholders in LS.U, and heard the Ueport and State nent read. This pa(,er put I !| I 71. inlo my hniul- is that Uiinirt mid that Statciiunt, • \V. II. C. 8.' and ' W. H. (;. 7i.' Tiiniiiiy to Item :i of tin- A^vts ' HiH^ niscoimttd •Loans, &c.\ that inchnlos ih.. Din-cton.' C'uireiit Aeto.intM. Thf«e Di,-octo,V Accoui.tM i„ im wiTc- l,ro„^.|,t forvvanl i„ tla-ir ....tirftv lh.'ix. was „o |.iovi>ioii for bad au.l .loul.tf,.! acfounts in that m-iv f" yuKsTK.N:-" \Va, ,|h. Diroet.Ms- ||al,iii,v at tinit |R.rio.l .rreater orlesHthanatai.y,.,vvious iKMiody Or du-r wonN, what was the amount of their liability in [mi and ISilt :-.s,u.c.tiveIvy In lS9:{v" AxswKit:— •• riR. fonr njivctors' liabilities, or those of their HnnP, Mie.vased. on overdiawn acc-onnt only, fioni .list Mav 180;{ to V^'!)'-^t^^^'^'^''' ''•'"- "' ^''"•'- •■?'^!''-"^H..L'l, and in I'm r',r- •'''■"' '""'■ 'vc'-'-' (''<"'<• "t Km,... Johnston. & Co., Ihorl n, & ressier, .fol„, M..:.,, X- Co.. an.l W. J. S. Donnelly iiVwn^.'.""".'' •^''"""" *■'"■ '*'•'* ""'v.-.v & Co. owed the Bank $42, SO.(M, without r..fe.vnc-e t„ their interest in the Fnrnit...-e & Mon d.nj, (o. In im the sa;ne Hrn. owed an over.lrawn aceonnt of "PX.^jl.ib. •■ Interest was ehar-ed on these aeconnt., and brouL'ht forward to forn part of thi- assets of the Bank on the :{lst May 1S<»4 \t tuese dates there wore to the cre.lit of llarvev and i)nt..rl,rid-P's 1894 $18.,.i{..,.l Ad.l.ng Mr. IlarveyV. the total increase on the cnrrenf acconnts of Directors from I«9.'{ to 1894 is §1()4 •)40 .)-j The Harvey & Onterl,rid-e credits have i)een .ledncted in arrivi.r.'r at that total. " "The Bank, f-^v the half-year en.ling rJlst May. 1894. declared a dividend of 6 |)e.r c.-nt. and .^S per .share Bonus " Qukstion:-" Di.l the interest on these Directors' Acconnts form part of the f.nul ont of which the Divi.lend and Bonus were Ax.swek:— " Yes it did. 180i" ' Tl^!'''*""'^"^'"' ^y »'"'♦ -^'"i^-'m-nt. I continne.1 a customer in 1894 and M money on deposit. I have lost the share-n.onev, that's ^ 'Mliy gone." (Objected to.) " I have lost a Iar..•. i.»„ .„;„ ;;,::",;;:: x;;.;:";,;! I cau«|. he wnnu.l ... ,,;,.v ,„,. .,., .u„..u„r. un.l he ch.«..,h.,t wuv of pay. my uiul I mti|)ti.,| it. ■ r^y "lU.f.Mv 1S!..»| |„..1,„ ,.U. ,.,„x.hu.,., f.H -om- ve.„H I,.,, -ben I H... p.nd.,...l ,.u. f.H... v,.l,u. w., ,,,«, , .,,.,. ■ h. ' l.a " ZvV 1 -r "■ i;"7"--'. ■'-:.. ne the h..I.l.... „f „„,.„. ^„K, «hmes. I .1..,, t ki...w ,lu. h,.,.K.., ,„•!,.. .tfaioc-d l.v ,he $1(K. .ha.v ^"•.l""tnm..u-.,o,.. „.,h..n,. UoM ,,,,,,..•.. i„ lift. , , j., J "The. MqMi.l:„..,:..f,h.. rni.... H,.„k ;,,v .John T. (iillanl. .).„„., H. Km^.h,. ..a...... Kvan. ..anu.. 1). Rvan. au.l ,„v..|f. T L I ik nri.niH, init l)v ,ht' l.ij^wlatiiri-. result ..f ,.n..s„.:aio.. in,,, .hc Hank", a.fai.s. ^as ,1,;,,. „ v fi.uli 1 i-ep...t.o,-;.,.ola.-,.,io„. ,1m. ,ho IJauk ^vas ins„|v.,„r ^ A\swkr: — '• 1 am imt awaivof am. "Jan.... IJaini .l.,..s l,„.in.... in Saint .John's-genn-al b„si,u.«« h.. l,nHn...s „nhc. c.o.,n„.v. cash, fish an . oil an.T lol.sto.s. , ." no: K".-. ( ,M .. Umh.,.. .I..hn-,„n & (J... h:.,|. I l,diev... :, !,„.i.u.s. i-, Konnnsta, l.n, 1 n.-v...- ha.l a„y husin... with ,1,. (ionavist 1. nc i «n,l 1 hau. no knowl..,l,.. .„• „,,a, l.nMn.s. ,1,.. ,.,,,.,h .,,1 Z,',' know .1 ., was eonsi.U....,, ..„,,,„,,,. , ,,. ,„., , ' <^- '^-^ '; '^"'.'^•- •'"'•">'"". & Co. .lia ,h. p,i„c.. .-,,, of the. I r.i .u-^s,a .a.av.s,a .....n-tknowpaKicniv,,' evLl ^ ^ Tickl.. ro... U..,,Hi,f Man... .,,... l.all. P,^, (' 7' ,^' .^t. ... an .t ( ,o. ,, lv„,^, s (J„vo have ,l.e unl v lar,... l.nsinc-,. in that n.i.H.- -mejl. On the Son.h .i.!.. ..r Mnn.vista liav. hon, Capo H .v" u oN,h a;,... ,,..,.,, Ha.,.. h..„se.l..in^ business exc...p,'ja...eX I hn,k .ha, (..veins... of l .j,,,,, ,j,,„., ,„,, J^„ , ^^ - IhoHann A: IVssk..- h .s, ,„ ,ho .leale.s .„. ,|,a, si.l.. „f ,.,; {l^^ ';Ihavesa,.lh.„ ,Si, l..,,„.„ l'|,„,|,„,,, ,,,.., ,.ffe,e,l .10 eel.ts •'.■ I ..„st..es ,.F n,..,l,n,n .t r..,si..,. are -f. P. (Ji,,...,. .,....p,, o . .; .n. .... an.l n.vs.-ir. I .Ion". ,...n.en.l..... if ,|k.,v w.,s eo.-es Ln ce by Nu.H...,w..n SIH:..!...,, .n.. ,he Li.,:.i.,a,....s on ,he sn 'j.; .; co.npr.,n„se. thn.k .lu.,e wa- n.l I will p,...,|,u.e i,. n... e wer c.onversa„ons al,ou, i, with n.vs..!,-. ,U: .,,.,,,. „. i.,^,„ ,.„^, ,,,, ^ ;"l-".l.„..,s. l.,.on.h, „p ,h. sal.Jee. of a eon.p,...n.is.. .".f T|„„.,.nn & I essK... at a re-nlai' n.,...„n^. „f tl... I.i.p.i.lators. |, was -, sn, ,;..,. whieh I .lon'l as a to|.u.al offer. 1 IT.. .1 of ill.. Lii|ui(l,ilor- i'.nienil..T. I ,|„n"t ivnu.jnl.er (h,. rale, it ,|i,| ■ won", swe;ir ,l.a. (i,". eents was ».>, It wa < in ,he Hank parlonr. at III no. hrinu: aii.iffi puisne the nia...r anv fnuhei Vs a rriistee of I lor'inn. it T iio, e.iim' •neii,ii)iu.il. :i nieetii.:; 1' ill il " It t i »..'>'ii'.. I .liil no. 73. " The I.iqiiiilatopx diil not accopt the offer of fifty ceiit«. Prior to Sir Kolxrt'H off.r of fifty ciiIn there wiim not an offer of »ixty cents l,y him, to my rocllection. I wat not it the fir^t nieotiiig of Thorburn A Tissier'-* civ.litors; I wa-. at the second, when the Trn«. tees brou-ht in a veibal re|H.it. The Trustees alno bronght in nn abstract of the affaii-s in writing:, but the |{e|M>rt was verbal. At that meeting Mr. KoIkmI II. I»ri.v«e wan ( "hairni.in. I leniemU'r at that meeting Sir Uobert offere.l Hfty eetit* !.. the H.nk. I don't ren.eni- ber that he <• fered sixty cents—he may have. We have gone on Hince to realize the assets of Th .rbnrn & To»-.ier. We have Tcalized the bulk of the assetK. There were three paiNof the SMfn .old; Hhc it) 22 y.-ar>* old. ami ont of class— 221 t..:i.<. I think; Captain .VeHbitt, wliooHiwfl one-foiiith of her before, iiii-chiiwd her. .N"ei»- bitt m)w own* .le-thini, the other two-thirds '.e owned by four different parties, James Baird, Hugh Bainl. David t. .1, and myself She was sold to Xe^bitt by piivate sale for .-:i2lHK) f„r three-quarters of her. Captain Vesbitt has a lirg -r interest iu her now. lie bon-.ht her after her arrival from Harbadoes. end of May or Ivginning^of June this ye-r. The Hill of Sale was made to him then, an.l since that, Bills of .Sale from him to me and the others within a fortnight. She is now on her way to Oporto with a ca:go from Jamt- Balrd! The Schooner Two BrnthnM. bolongin,' to riiorbnrn & Tessiers Estate, was pnrchaseargains going lately I took no notice of the hoops in question. I don't know w°hat James Ban-d paid for them. I know he agieed to pav Kftv dollars for a quantity of hoops in the npiK-r loft of Thorburn itTessier. The price would be so small on account of the utter collapse of bilsines-s, that these things would be an utter drug on the market. For somJ things a realization of any kind would be a godsend. Vessel property was sold very cheap. The craft belonging to the insolvent firms sold very cheap. I have not iufoi niatic.n enough to .rjve an avf age— so much depends upon the age of the craft ami oulilt There have been ni..re vessels for sale this spring than theie have bt-on ptnc'.asers for cash. There are two vessel, of Thorburn & lessier still for sale. '■ We have made some compromis^.s of tlu- book-debts due to I horburn & Tessier. We have ma.le large .lisiMunits in some casos HI order to compromise. We have conipromist-d a great many of the fishery debts. <),„• mle was. to c.mpromisi. if wi- could not -r^t paid in full. U e got pai.l in full in vi-ry few cases. Most of the com- pioinises were made in the spring. We ha.l Sir IJoImtI's opinion to fftiide us when people came to compromisi.. IR. ,l,„„.,| ...^, „.^.,.j. a>kiiig Soti niucii from some of thum. Wh ivlied on his opinion. in we asked his advice we QirKsTio.v:— " As a matter of fact, in tl business, was it possible foi- the Trustei's I le spring, in the rush of I \.\ o make or have made I .J IP B li W tl » ■ i 1 I 74. careful examinatioi. into the ability of the vaiions aehtors to pay their accounts, or was it nect>ssary to rely .,|,o„ th.- statements of these persons ;,„,,. s],,,,, ,;,„„.l u> take slock ''••(«"v compr. sing with Scott. I will pro.luce the acc.n.nt ot stock. J lie iiuslees also compromised with I'atriek Uvan of ( atalina, the brother of .lames Uyaii. the Liquidator. We did not take an account of hi> assets [...fo,,. eoniproiuisiug. |K. .,,i.i „,.,t his property iH-longed t s bro.her Daniel Uyan. and that the bulk of his assets were given out in winter supplies. This is as far as I re- nuMnbor. I will get the amount of hi, debt au.l of his compromise. Ve ha.l Mr Robert there, bm I don't s.y ,|,..,i .y, ,.^.,1 hili, .,i„„u yan s statement. I don't kiio-.. that I specially consulted him about lyans compromise. To my knowledge he never gave an opinion about Ryan's affairs. Ry„n w-.s in to see the Trustees twice, but I don't remember ever c<.nsulting Sir Robert about the eompromise I I I 75. with this Patrick livan. The Danid Hy,n I have spoken of i, brother ami partner of James Kya... the Li.,„i.lator." (Signed) Sworn before me at St. John's, aforesaid, this 8th day of October A.I). KSit.l. JAMKS GORDON*. (Signed) J. a. COXKOY, J.P. The further Ci-oss-Examinntio,, of .Jamks (iounns, this 9th d of Thorbi th (Diawing the witness" attc if October. A.I). 180.1 nil &'l is was found TIOX essiei- at starting: u ■ntion to his statement that the Capital "7l».0(K). and tliat .'5:?«.0<)0 of QirK.sTiox:— "Did n 'or Sir Hol)ert by the L^nion Ha„k. h capital or assets?" le partneis of Thorbnrn hav asked:—) iive ani private 4xs\VK u:- The I were taken over hv the •emaiiis of Walter (; creditors of W. C new tirin. Thos ineve & C'o.'.s bnsiness e ivinaiiis belonged to the lo Tiieve & (•„., largely to the rnioi, IJank." Thev I nged to the creditors of \\'. ( l)e- bonnd to pay its debts before tl ■ neve & Co. because an Estate is I don't say this piopcrty would bel the proprietors have any iiifeivst in it. process of law. riu. LT,, negotiated with .Mr. 1 Hank. long to the eieditors without as I iiiiderstaiul fr Tessier. I don't never seen the doenmen'^ essier to start the bnsi some roni documents. y that from my own personal k ness of Thorb lurn & As far as I am a ware, the Ciedilois of W. ( now ledge. I have writings bearing out that state t)tej)s to obtain the pro))erty of Walter ( ■ & (." Walt cr Cirieve & (J irieve & i U). for th nieiit. I), never took leir own. sum of money, 'riiorbmn & I ere indebte.l to the I'uioi, Bank in a larg of W. Grieve & ("o. Tl essicr at starting took over tl was the partner here of W. ( those lilt is all that I k I neve i) assets, nor the liabilities of W. ( at 1 know. Sir Kobert Thorb tt { 'o. I diin't L-iw.i.- il. 1... le assets urn sscts were erjual to the lialiiliti irieve & (jr). •n't kn(>w the value of proi)eity of the credit Still I sav th nor whether the & Co. still i>rs until the lat ci >we the IJank a iim of le assets were the vere satistied. Vv'. f;,i,>ve nionev. w. c 1 don't know if Si,. K'„b,.,.t -I'l,,,,.! irieve & ( o. Ih- takes tli Thorburn it 'I iV lev^ier the ainoinit of the' ba| inn were the sole partner ot !<■ respouMbility. In the schedule of Co's indebtedness to the Hank if Sir K'obeit Thorburn had entering the partnership. Sir Itobert 'i'l >( Walter I • rieve & :«l>l>«">rs as a liability. I don't know "i.v piivat.. property of |,i^ own on Newfoundland lo the IJank as Ti W ii.iliii" ( Th ii>i burn held his shares in the I'uipany, which he niadt lanuaiy l!);li. 1S:SS, .:;i.-,._> ),), ,„ j •ropc.rty wa> pai.l for by the n.„ik !5."{(i,(H)0 w 7th da; .M lis charged to Sir liobert Tliorl i\'.'d to U..l)ei't Tl on ii>:')nrn. i>f May. 1S,S8. Th irhuriis private aecoiiut on || iirch Is:, ISSS. ".tl lere were payment- made on that '^■'vings Ha, k el lie tieeoiiiii : "" ".th. a ehe.pieof WaI.er (o leijIH' of ■leve ^caving on Dee. .ti^i. ].s.s.s. i-e due by Sir I{. Th„,| & (• MO.(KMJ.(K) l,(i()().0(t <.li!b nitere-t, a bal- It inin of was.fannary IHth, ISSS, iheeln 41.:i2l.:{.j to Sir l{..beit. and March l>l the eredi ■'pie for .Sl.l.^tM) the t me ol the p.iynient of the jiKUKKt || I for .■?IO.(KtO w.is charged was given. At leie was no char ,'e against i "ir^ii wmwmfmm 4 ^ ' : re. his private iiccotiiit exci-pt tho .?l.>.2i'0. I have no credits for Sir K. Thorljiini's iiccoiint i-xtept those givin in the >ear 1888. In the year 1891, on t'le Jtth of IVicnibei-, reft .linfj; to the Minute limiting Thorl)nrn & TessiiT'ss ovenhaft to i?l.')t),0t10. Sir KoIxmI's private account was .•?l(i.liMi.8() in deht." QiTKsTiDx: — " Do von know from what sources the moneys were derived tiiat reduced Sir K. 'I'hoi'lturn's private account from $41,321.:« on Dee. .Jlsi. 1888, to 81G.1!>«.8U on !)th Dec. 1891?" Axswkk: — " I cannot say to-thiy. I will try I'.nd find out from the liooks of the Hank." QlKSTiox: — •• Are you not aware that these moneys were chiefly derived from the [irolits of .Sii- Robert's shares in the Sealing & Whaling Com|>any, and outside altogether Tiiorburn & Tessier's business as a firmy" AxswKn: — " I have no present certainty, Init will try and find out. " 1 said it was impossible for Thorburn & TesKier to do their large business •.vitliout outside aid. I mean that for the jjurpose of purchasing the re(|uired accounuoihition at the Hanks. That is not equally true of most of the other large firms. I know now from the books of the Hank, but I did not kut know that at the present time the i>..iiks doing business ln-re will make advances on Warehouse Kcecijjts?" AxswKi!: — •• I don't know." Qlkstiox: — •• When you spoke of Thorbnrn & Tessier trans- acting their Kxehange by drawing on the .Merchants' Hanking Com- pany of London, and hypoihecating the Hiils of Lading to th.it Hank, do you mean drawing with dueiinient attachetr;:'" .VxswKit: — • Not always. Tlu iiills of Lading were sent tothe liankiug Company, who received the proceeds of the cargoes; the HilU of Lading were not always attached to the <.l llu' iirm since they have i)eeu in business. 1 have looked at theii .Vnuual Halance-Sheets. The books were carefully kept. I will produce a copy of tlu-ir IVolit and Loss Aecoiinl tor each year since conuueneed. .Nfy knowledge of their business has been wholly obtained since 1 became a Trustee. I ■^ l!:| " i .: !? .'1 M 'I I 77. knew k.fore that they werr carrjing on their banking huMnes^ with he U„,on Hank. I ha.! con.ido.ai.le bnsiness with the firm F To d age^qnan,...esof fi,htothe.„ at one tinu- fo.- notes and cash ad drafts. I beheve that at the closo „f ,hnr affairs we owed tl.em on cur..nt aoeonnt. We .lid business with then, n,. to the s,„ I O^; books were burnt ,n the Fire, an.l we have nit had any lar a- fil Tfo! K *'."'-""' J'^'-y '"'-S^-'y- ^V'e .li.ln't ship from Z /oMh iK-fore the tnv we .lid fron. ou.ha. bor.. I .lid not know the Mate of tbe.r b„..„,ess .hnn.y the year, the firn, was earrvinjf on. lohnV^T ,'?"'* "". '•*"'■""'"' ex->i"ii.Mti.,n .,f theLok. of Baine Johnston. & Co., an.l .lon't know anyt g about their bnshe s profit, or tl,,.„....se«. I had nomeans of .„eh knowle.1%. I. d on the yu... I d,.,, , know n. wh.-t years thev nia.le profits or losses Ishnl'"'i: "m-"' "^'"'^'*" '"'-"-.-vicleiy d f „sed ov "the Inland. It woul.1 r.o, be possible- for n.e. fron, n.vV-neral know le. i of bus.nes«, to .ay whether .h.-y were .naking o.: losing .nonev ° Cn Ll^T 'r':"'""' "^""^^'^'''y'' -r tl.e affairs of John Mnnn & ^./^d^l'r^r ''""""•' ^^'~«'- sole partner .;;';.:t Director Th " fT""'"'" "'' ""^ '*^"''^' ^^ ^^'"^h ^e was u Director. 1 he bus.ness of that firn, was very extensive. The head- q..ar.ers were n. IlarL.r (Irace. They had.'l believe, a ^It Z^t B at.on.s on the Labrador. Fo.n- .Sealing .Stean,..rs be onS . tha^ firn,, ..„d a c.,ns.,lerable an,onnt of other vess.l property h .' no u: a ■, ,. "'-'""'•''■ 'ar as I know, anvthn" about h.fi^^.a.,e,al Stan. „.g. either fron, general repnt.- or otherwiL In J.G. 2 I shewe.l the an.onnt of drafts by .Munn on liennett in the financal year 18«)2-1893, an.l in • .1. G. :{,' re.nittance t. C T IWttby theUnionHankforJ..Mnnn&(o" «atun.ntoftheaeeon,n.o,lali.,n by the Hank to John Munn & Co dunng the Hnaneial yvar 18!)2-18!t;(y" ^_00() sterlmg. I e.nn.,, tell if son.e of ,he .Iraft. charged were "ot by «a3 of .vnewal of previous .halts. | don't know if There w-^! ever more than .f20,0()() .,f this running at one tin,.-. ^ist ^^a^ l,s.»j ,„, credit was. n„ c„,Tent aeeount S77.(it) -on De- posit r..e..,pt, Jvl.11,K). („. ,,,,,,„,„,, ,„„, , ^^.^,^ ' ; • '^ ?;i2t;).'''';:.;!'s::,.r::!:..''.T::!;"^. -^"^.•«•^*• ^- three-.p.arters. cnient of Thorlinrn S: 'I quart.r.v were vaiu.'.i al )>-2JW. ri„. (| Trusties for .•ji^.oiH). yi,. y Nesbitt nia.le the ofn-r .)f . essier s assets the throe- r. Uheally valued || tree-.piarters were sold bv the le vess.'j he r credit. SI, (WK). Th.' e was on her way to IJiazil when si alter Captain er.' !fHH) of earnings put to ' !•! le was [lUl .1 own on < 7a till' asset* ,it 5!2.70O. The R^tit.. .«.» <> -,„» Z " I lie rnist,.f« sold the hoops on the loft fo r,.,„ . n ■ j !;- «" '";m." ::^-.^™z„;rTn?,,,:,r;':'/! ,^7»« l>™>P«. .1 ...l,,l ,m,„l,.r .,f l,„,„||,.. „f 4,l|„ ""'"'"" "' ''"" *"" N>ld to Jiimcs Haiid for ,^iO() " ""• "'"* "''"-' "^"'' bor next, lie Jid ,e In.l . "."^■' '*^""' ''"^' '" '^*"^^""- coukloot get it T, • .i ' 'T,'" "•^''-"l->f a dealer, but he f"eor„o," r iid KU h ,:• ;' '.'"'"--•'«■•" whether that was %..n afte.wa.ds l.oaste.l thu hi! ^ ^""^ "" '"''y «'''• about the .nntter to Si 'H , ^ i'" **"'-' -«"^'nuM,t. I spoke - afte.. the eon, .^ i.^ ' i:;,;!;;", 7^"'^'"^' •" '^^^ '"""- Bank. I coMl.1 not find anj '" '"' '""'"-"^ '" ''''^' ^■"'"' factSn:;;;:;:;;;;!':;:::,::':;-^'-!'^"^^ «..« fomthe tees to make sea.eh 1 , .V ' ■'"'"" ""l"'-"'''-' f<»' the Tins- t" :.a, their ace:::.'? ' ''" ""^"""•^ """ '"-'•'"'^ "^ J^-'«o.-« be..t ^.:;;r7d;' ;^'S,r t '::";27 ''-'t '^ ''- '^- aceonut. as i wa. not ores., ? '"'' "»''"' '"'" *"^'- Ky""'" make -archin,. and ' , '^..11" """'ri'"' '"" ''^' '^•'"^'-^ '« -tion we eonid get ij^ci::^-:!::, ;;;;:^ -- i»^o. (Signed) Sworn he foif me at St. .John'* afores.,i,l thisOthdayofOct.,lKT. A.D.i;^i;r JAxMES GORDOX. } (Sigue, o, *, 8.' 'i-^rJ. Kogo, ..:i ci: mi: ;; ":;'2^r ^;"'^;;! '^"" -^ '^-'- of Stock at Fo;;o, iaci;i;n. ( : ' h.! .,^\. t!""" -—" Slock and S|( ds •) at T '* >!!».<••■{()..■;!), "lyre Islan.ls and Tilton llarl irhor «.ll.ng,.u..S(i.;{l.-..(l(). (.J. (J. 10.-) i„ ,,;,,, « Htated l).v Mr. Scott. (' J. (j n Statement suhmitted on behalf of M r. Scot I, ther ition. accordintr tu e were book-debts I ill 1 I li. In ", 79. effects, ,^o,K,;p,^,,,i,,.,.,,,;.;;W''''^- '^ >-- "M. -^l*); |K..-.o„al 18f).-. wI'M't-nT 'f r"" '" '''""■'""•" * '»>-!-••■. January 31., to '., wa« as ..|.,a.ars hy l,,, ,,a...|,,Mk with the Hni, .<•{-, (KJ (U \v in .he .l,.llar. V t t \ Sh ll ^"'""" "' ""' "''"•» =" "^'>'^-«^ gav^ him a Power „7vrt. '";>'"'""K' '"t.. Seutfsaffairs.a.ul iinm-, am Mr Sci,t< ,,^1. a :r ,\ .-, -ui. ^^.v.n•s was in • -^^ I ,»'.i "i.,.:1'm' ";::.:;;•;;"■•;:,:;• "",f" : •<■ c.„cl,i,l,.,l „ „.,„,.,< ., „""""""■?'■■"'" •»"""li»l. ami -"-;-- '■»-:.;;L,;::,::r;;:r,:i:!:r::,rs- I l..-.«luco a h-st „f K. scotf. Slock. &c.. f„r i^i • J (■ ,, • Th. .s,na,leu,, ami si;,,„..| ,„. l^.lHM•, Scot, hte ,n.h Xf" ." are over Mr. Scotfs si.n.a,.M-ei> nl .' *"""'*•"» '"'•'"-'•k-' ' coasting f.ei.^n.' ^vh 1 iT / '"'"'' '" ''""' l"'''^*'' '''^•'"- "f "tore,) . .tu. th cr ' TZ .1 " "'"r '' ^-^'^ ^""^'^ '" pend<.cl is a note o Si,. : . -r t T' ""' "''""'""' ■^'»- ' March in answer u.l . f . '""'^"n.,- • Sec letter 24th 'down.' I^ri ott- .. si r" ■'■ '"■'■"""•*' "" ""' '-'"« !'"' book i. put in. ...arke. 't::'^'^ * '^vl^^''.^ ''^ '"" '•"^^- Book.' ' "'"' "'^Il'J ' Account Cnnvnt •;•■,'■=«■':•■■■«.• « on 'L „,",'.:"« r;;"'™r;r ""■'""' of Deposits at the same tiates. ' ' """ "'"*""" u..: kS:. ^;: jriiL i;::::: ^.i™n "^^^i-.r'^ '^^ 18«8, until he owe.I SKi l-,,; S,, „ . ' "••'-'••^•'- "" "'- '"'^t D.c. On 1st Januar^ , 1SS9 .Si U. I , ' ' '•■■""■'"" '""""'"• ''^•^- J^^^'- Wi;^"Pr{ l{.-". liolKits private account was in .l.-bt ^i,.i_i..M. |{.\ payments It was redmiNl to «?-{I fN iis a cluMjui.. of tin. North e account at that "I nix Insurance Co. \ I i:i ' i I •British and 80. MercHntiU. I.,.„r.nKo (•on.|«„.y for ^T.lW; „„ .;„|,. 2Gth. ca«h of l^H^Ll'rlr'"' T'7''"''''''' P'-'*"'"^^"*-^-'''! w..sclo.e.l at thocul his t V : " "•"""'^"•"••» "• "'•• --li' "f ^V'.lte.• Grievo & ( 'o., ,.,,,1 k o VM" "'^"""^•'^"^ ""'»•'" f timt co.n,.anv. I do..', ait ^^: ■' '";'";•■ ' "'T "" "'■- '"■'^'- --"'"" i" "-• »""k we e also |)iocw(N <.f (liv.iUii.ls oil .1., .. Hlmies." charges a«a.,.s, h.s .lia.v ., „ie piofit. of the fir.u. v.o.il.i ,hey mo,- Axswkk:-" I .vill i.vn..iine the (inn's liooivs is point " hs nnununsyo..iir,.,.. the Savi.,j,s' Hank veie .v.^trietii... theiV payinentu as in.ich as im>msII.I.. 'I'i, i -. • ■ -^ "'^" ain......,..,l „ I l""*^ h- I he depos.ts m that institution a.no.,.i ...l (o a la.-e miii,. The CoMrnercial Bank susiK-nded the ~.w.;:;.?" ''rr ''" ^'""" ^^-^ "•- ^- -"'^ i^'-' ^^ a ilea , ''' ' "'""""■'•'"' '"'' "'" "I-' «'"" «'"3 ■ There vva. a local p„ K III eons,,,,K,„ee. and a inn .,n tl... Union Hank The Coinine... Hank wa. .,ni,. ..„..,.,. ,.,.... „„, ,„,,.,. J:^„r ^ tiori; , r''".'''"'''"'''''^" "•""^"^••io"" In'tween the institn- tions II. .lores and hxehai.ye a.id otherwise. did th.^I' i! ""' ' ■' " '"^' '"'■"'"' '"""■'"•^'' "' •Vc-«toun.llan.l & C H r ";" -.K.icial,-i.:.lwii. Dnder, .Jol, Brothers Co., John Mee.-. U .„. ,;... ,,,e,..ioi. oF How.inj, H.„,her> . • ail b st^so : ""■'r^^- ' '-^ '"-' — T larf,e p..op.rtion of" tl^ m..s..Hss of the eo.M.t.-.^ . riK. ra.nifieations of their l.nsine.. s.,.v : ove.- a la.^.. pa., of ,|,. ....1,1.. Tl.ev had n,a..v .leal ,:;:.:': l! r 'Iv ^"•7' 7' =; ^-;" <•-' <'nheve;sel pn.pem of the fi :; I -T ' ' '"' "" '^•"""•'-•o''^^ "f theco.ulition ,f ,h. , f"".s a 1.1 .1..I n..t know .vli,.,lK.r tl..,v we.e inaki..,. po.i.s or lo., ■ ' Ja...e.s Hai..l ha.l h-.j^c- ,K.alin;,s with Haine. Johnstni A- Co i'^^'"^'" "^'; '•'• •^-' ^- -1-tation. and ti; foil ;;,.^.^:i Bin 1 • "."";:'" "' '""^^'^l'""^^'- Hai.d A- C... nev..r ,.ef,.s.I tlu l.ittei- .i.,1 .lot owe the fo.-.ner co.isi.Ie.ablv." I. 11 ! (Signed) Sworn I,efo,-e ine at St. .|,.|,n's, afoirsai.l. tint* lOth .lay of OeloI.er .V.l). Ifiur, JAMKs (JC.ivOOX. (Signo.1) J. (i. COXK'OY, J.P. 81. The Cro«s-Exarainatio„ of Jamk. Gordox resumed by Mn Johnson, Q.C. we.* in solvent ci.eunl^Lesr '"' "''"" ''' *''""" * ^"O" ref.Tre,I to a «um ot eocill'T'V'"" ^"'^ ^'"""^ "fter the date •that finn, proceeds, fti^ -^'^''I't,;''" •^"' '"'« ^^e bnsines. of AvswKK •• V I "^ ^^ '"'"'" •^f"""' J'^ceasedV" Or KT "■'■ ""' *'*'"•■'< ">»t '»«^t"''-" Of tJ: iC:.;:;xs;;r u. ir ^"'ir "■ ^'"'' ^ ^"'^ -''-- M... Do...;::^; .,, ■ :;,;;s:;:v '"V^'"'; " , ^"^^'■"^''^" -^ ^^^^ ^-"^ -ewhe..e i. .^,: ^si^ '.i": x^Mi : "^' rr^" •"■ « ■"'-- never heard of a renort nin.l.. l.v U n . ^ ' P"S'tion. I subject of his ..„ to C T ' ,;Y. ''"".^ •" '^^' ^'"^ «" 'l^* Mr. Donnelly that C T Ben, "' '"' "'"' ^" '^^ '^^""^" ^"''1 or that Mr. onK:ii ■";":'■?'?''"'"'■ '^^ M'"'" & Co., the makin:of the Minute u '• V7? "'' ^''''^""^ ^"^ ^'""'^'^ '-f"- I know nothing fs;''':;'''--^^^^^^^^^^^^ besides what Ihave Vi I , M J n ■' ""•'^""" ''^' ^^'^ ^"""^".A lonr. after th. su.spcnM- n I " ;"'""^ l ''''""' "' '^' B«"k ..al- CC. affair, in sS IlonVC" IT" .""' '** ^"P"-^'«*"^ ^^'""" & ues« during 1802 I d, „'t k L 7»! r \' '"''"'''"'^ ^'"""''^ "^"^i- the end of^lS.o;, , ,.^f ^" J 'j''^;;'; '^ '• f^'""""^. .epor.ed «t Munn for 18fl2 were l.;;;£o!L '""'^'^ '''""^^^ ^^ I have tiv-en some of AfM^»!i.c \f„ i!""". >:"• ". » I .i .1 ; ,:; rT',: "''■' '" ,'l" Pini-ent's Staferr nt of M,,...,- r i r -\'""""3- ' have seen Mr. M..V, 18fl3. ,he nil'; «;;"•• : "'^"'■"'•^ '^'" "" «»"^ 3..t ably s„.niler f ..in M '. s^ " " ""."' "^^"""'« "'"•^' eon.ide.- MunnV Est,., tha i .tli ^of . . ""' '"^'■"'"' ''^ '^' ^'-'^es of can't say on wh,'! I ',C S.^S J;:? "*":'; "" '"^ ^""-•- ' Union Bank of" London w,- „ t' '"'"' '" ""■' »«"'■• The the Union Hank he e V 1 e ,1;'"", ''""""^'^' "'^>- •">'^' -' present. We ..... ..o holm-r. o ' , •' ."" '""''''' ••'^'^""'" "» been satishe.! n/rdl ,: . n t" -'f'"' ''- ''«'^'-« have account." " "'' '*'' "'^''"'^ "" 'he draft, held for our Axswek: — " Sh'^o 1-a .)- , . -inceSOth Nov. I8!U " I,' t".?'^'/!' ''';''''"'' "'' "'•°"' ^6-<^ dend payable not onl^ b / ; In";;!^ ^T'""^" "'^^ "'" »- " "livi- the Estate of ,1,.. ^eee-^io C ''"''V''- "^ "eeep.auces, by acceptors' E.tate ,„nw , .' ''"^ "" ''"'•'•'"' "" "'^* ««^ the u.....'..., „„. """^ ""- ' have no knowled;;.. at all of Mr th "f t.w VVch.lllgf, l..,t I ,i„<,', 1^ severe lots on accepted E.\cl no dividend as y n'H- will !„■ i, consi.|...al.l.. !< now, thongh I expect il It. 'iW- ('. T. IJ • Oil KUKK' Iteie will In. a iennciiV Estate has paid Heft '•• ing «. (he aeeornt of IJaine. .Job III 11 i y i insion.A: Co., J don't re- ^=^^ 8S. collect seeing aii.v stateinent of their affairs as they stood before or up to Mav 31st. ISit.J. or shi-win;,' what their assets were at that period. I have seen the letter of Mr. (ioMic. ISth Mav, 1894. (• G S. P. l.V) to Baine & -fohiistoii in the Bank's Letter-book, which quotes that Mr. W. B. (Jrieve inoini-^ed to put his account in order before the :31st IX'ceuiber, lSi»:{. and statiuir how he p-oposed to do it. During 180:i our firm sold fish to Baine. Johnston. &Co., and during the followinir winter to a eiinsidt-rable amount, and freelv took their notes; their purchases from ns, (Baird & Co.,) might reach in that time S20.()00. Tlie amount of notes aiv.-n t . James Baird & Co. by Baine. Johnston. * Co. between 1st Septeinljer, 1S9;{, and end of Pel)- ruary, 1894, for fishery products anerfectly solvent; and up to the suspension of the Bank [ had no reason to doubt their credit." - QcKsi.ox:— " Would not yotu- firm. Baird & Co.. be in as good a position as ihe generality of tlieir brother mcrcl.ants iu St. John'.s to judge of the credit of such a firm as Baine, Johnston, & Co.?" As'swek:— "One firm might have a better knowledge than another, — better sources of obtaining knowledge. " I produce an extract fiom a letter from the Union Bank of London to the Cuiou Bank of N'ewfoundlaml, .lated 24th Oct. 1882. * We have received from the National Bank of (Jommerce, New ' York, 25 Certificates, .$10,000 each, of the Citv of Xew York Con- ♦ solidated Stock.. 3 per cent., which we hold on your account. Please ' give the Xational Bank of Commerce instructioHH as to the collection * of interest thereon.' "These are the $2r,(),0()0 Xew York City Bonds i^eferred to al- ready in my evidence. " I produce a list of shan-s transferred, fi-om January 1892 to December, 1894, ' J. (;. V,. " Re-Exnmiiifd hij .Mr. (iuKKXK, (IJl: QuE.sTfox:— " Would not Hank Diivctom have a better know- ledge or means of having a better knowledge of the affairs of a firm doing business with that Bank than J.-nues Baird & Co. would have fi-om then- de.ilings with them as .Merchant and Merchant?" Ax.swkk:— •> They would have sources of information not open to outside firms, giving the Directors a greater advantage of kuowin- the status of mercantile firm.s. " Qi-K.sTiox:— " From youi- knowliMlge acquired from the books of the Bank, can you say whether the promise referred to iu ' C. S P. 1.1,' made by Mr. Grieve, of putting his account in order was per- foiineJ?" (This question was objected to.) Answkij:— " Xo. it was not. The account was largelv increase.l and no money paid by the (ilebe Sugar Kefiniug Co. to the erc.lit of Baine, Johnston. iV: ('..•. " I cannot s.-.y how the reduction in Munn's account between 30lh Xov. 1894 and lOih Dec. 1894 was caused. I will find out that, and mIso how murb intaocei latige of Muun"* iIki ites the acceptances were pt.^ on the 10th Deeembei-, 1894, „n. 8a fomidland, and when that is satisfio.l, the (T„ion Bank of Xewfonnd- lond will get back tiie Exchange and collect the remaining dividends upon that Exchange. •• The amount of Hook IXLts due Thorbuiii & Tessier. as snb- roitte,(XH1. Mefore I l)ecame a Li.jnidator of the Bank 1 didn't know the amount of accommodation ri.orbuu & Tessier had from the Bank. When F said wo lealized the l)ulk of that Hrm's assets, f meant that we realized ail the fish, all the oil, a portion of the pickled fi>h, all the shop and store goods, except salt, a quautity of the coojierage. a quantity of tools and utensils, and some of the vessel property, "phe part realized bears the proportion to the value of the whole Estate about (.even-eights. We have almidy paid 40 cents to the dollar; we have on hand suificient to pay 15 cents, and exi>ect to pay in De- cember a dividend of that amount, oi- probably 20 cents." To Mk. Joiixsox, f/C'..-— " Keferring to Munn's accepted Exchange, it was all accepted by C. T. Bennett, of Bristol. It was sent bv the Union Bank of Newfoundland to its correspondent, the Union Bank oi London As«umi.ig that the acceptor's Estate reali/,e.s 71 cents, the Exchan-e would be leturned to the Union Bank of N'ewfonmlland, provided Munn & 'Jc. pay the other 2.3 cents." To IIox. Ma. .AFoKHis:— _ " With reference to ihe value ,)t.t on the ' Planters' Balances in Thorburn & IV.ssier's Statement, it is the printed Statement put be- fore the Creditors I went upon. The Statement valued these debts at *2o,000. The Trustees after.vards revalued them at $.*)0,0(X)." (Signed) Sworn before me r.t St. .John's, aforesaid. I this 11th day of (Jetober, A.I). 18n.">. ( .JA.MES GOHDOX. ii 1 8 ^' (Signed) .1. a. co::koy, j.p. The Ue-Examinati.in of .J.\mks (;4.was reduced by Kxehange being cre.lited.— Exchancre drawn by Mum. on V. T. Bennett, but not accepted. ,l'14,(Mt(> sterliiiTr That include, all his unaccepted Exehange. The accepted Exchan-e was .e(j:{,470 sterling, accepted by Bennett. " " The Union Bank, apart from statutory declaration, is as a matter of fact insolvent. It was insolvent on the lOth December and was insolvent previous to the lOtli December. I>S<»4. I have before me the Directors' overdrawn aeeoinits on :50th Mav. IS'Xl- taking 40 per cent, off these overdrau n account.s, that i.erccnta-i' r."'*'.-"""""' '"•'^■''■"'••■'•'^•■^••"; <«^ ixrceut. off woul.l amount "o $..■;.!,.!, 4.iiii. I he same eaietii .lions tor the same dates in 18!)4 would give ?^^.■i(J,.•^!»^..•t(; and ^;:!.-,,l!n..-,4 respectively. The Capital of Bank was .fl.'iO.tHM). the IJetween .June, ISiCI, and Decembei. 1S94, th ere were several 81 ne«^depo«itors. This I have f..o.„ th. »o;;i;;of tho Rmk; and the.v were also .sevi-iiil m-w ciiirene iiccouias." (The receptidii of this i'vi,U'iioe was ohjected to ) ,ho J'^'^'","'^- .'f;''^:«f "'^' »"'•"< I l"-Hluce the balauce-sheet for (The recepti.,.. of this was ol.jecte.l to. a..d it was not admitted.) To Mh. Mohixk, L. L. n..— ncc with the affairs of the Hank. On .he 10th of Decen.ber I k^ew CCl 1 ""':'=";':'>■ ' ^»'.'' "•" '^""- I— """y that the Bank wan in«ol e„t. After I knew .t «as closed, I did not know that it wa8 r.Kks.fh;H ?■'"'■' ;'"':' ''"'" ''"^^''-"•='-' '*'='i'"'--' f-- h . r , , ""'■'■• ' '''"" ■>' "'^' '^"ks of the Bank, if fh k the Bank would l,e n.solvent. Ff the del.tors of the Bank we.-e able to pay all then- debts, so that the Bank would not be liable on solvent I have examined the Bank's lK>oks caretullv The Bu^k «70(^) Th T ; ""•"'^" ^'"^i'^"--"- The loss was about I dn Jf "" "'•■ -^'"^••"''"' »"'«*« purchased after the Fire I don t i-emember any other losses at present "The Capital was .$1.1U.0()0, and the Ueserve was $;i20 000 Thee wa« a eivdit to Contingent Veeonnt of .$:30.000 in isS It all the debtors had been able to pay their accounts, and the Bank ha been free from contingent claims. I have no doubt the ^^'0^ have been solvent. The books of the B.ink shewed debto know nit'ir v""- ''!'^- •'''"''■' ''•''' '^•-^-•^■'» f"'- "' t B d J^oubttul Aeconnt known to i)e bad." n ,?";?'?=-" '^ "''"^*' •"^'^"""t* pmvided for i„ the Bad an.l Doub tul Debt Account had been pai.l in full, would not the B "k wa.::::r;;-;i;r:" ' ''- '-- '-' ^-^ "-'-•• '^- <- " When I say that the Bank was insolvent on the 10th of De ceniber, I sjH-ak not only froin my knowledge of the book" but fro ni my estimate of what the debtors will be 4le to . . ' hos. I ^n.. become in. ...... ,,.. the 10th oM^^^^^rirrb. -i,.t that of ThorhLn rvl::!;;? ' "'•" "" p^'-^-"=" •'"-'-'=- Qikstk.n:—" If y„„ were to look at the books ,.f th . u i au ex.,ert. without any knowledge of the affl:.^';:::,^::;,";^?' "^ or ,.„^'''^^^^^"=-" ^ -"'• ""t -y whether the Bank was insolvent " When I sai.l i would ha would give tl ve sources of inf ply to .Mr. Greene that the Bank Di ■nation not open to outside lem a greater advant.ige for k oantile (inns, | meant (hat ih swear what they know. If I i,ad | ley Were ju ;, nowing the .st position to have. I can't rectors (inns which iitus of mer- ;: I III li !| )eeii a I.Mrcctor I would have had ^ "■■ 11 ■I P .. 85. infoiniation which I did not have as an outside merchant. I would have general inforinutioii of their business and their statim." Question:-" Do you mean that the Dii-cctoi-s had the informa- tion, or that If you were a Di.vctor y..u would tiave looked for the mtonnation?" Axswkh:-" I ,„..„„ ihMt they had the information from the books of the Bank. Th<. books of the Hank did not shew whether the debtor firms were makin- or K.sin- money, as a matter of fact. Imt they shewed their indei.te.h.ess to the Bank and their corresiK.n- dence ccnnected with their accounts." Question :— " Are those the ' sources of information' referred to in your an.ower to Mr. (ireene?" Answer:—" Thoy are." To Mk. Greene, Q.C: " The books of the B:.nk would shew that iiitei-est had ceased to be charged on Mr. Donnelly's acconm." Question:-" Is theiv a Minute in the books of the Bank refer- nng to the eonon outh, who snith:— -I am one of the Mqui,hit..r« of he Union Bank, and also a Trustee of the Estiite of Thoi hmi. «- r . • i profewion i. ,h«t of a Br. k t 7 ' '">"«<'"?'"!«" «".« and in.h.. ortJ r ... . '' **'*" ^"""''"ed. as Bmker •lid in the ortic,. of a Hrokei- nixl otherwine. with the trade of the country about thirty-«ix years. " I wan a shareholder in the Union Bunk on the .{iHt May 1894 Wor ' ^•"» P'-^-«^"« "t the Annual Meeting o; 1894. The port I hoard .It/' \ ,■ ^ • •''"''*'• "•"' •^"'"*"'«»t and Re- port. I heu.d the l{e,K,.t and Statement at the meeting. I wa8 sub- sequently «eut a pnu.ed copy of the Statement and iJn uT. ah-eady ident.fie.l. At the time of the sub.„i.sion of the Ueiwit and i.t«tenK.nt I wa. ..o, aware of the true state of the Bank's aE. Ii.v, .h u :''"" ""■ "■"'■ "'"''' «^ ""^ "ffai'" wus, but f be- lieve th.s Ke,K,rt to Ix. false. I don't believe it's co.rect." ( I his evidence was objected to. ) " 1 was deceived t.y the Iic,K„t.n„d by observations made by the (.hnirman at that meeting." (Objected to ) ^ " All bad an.l doubtful .U-l.ts were not provided fo,, and the Re- ,K,rt says that a I b....l au,l doubtful debts had been prov'i.ied ,W that .h. H ■ "r """ !'" "'" "'*'•'''' '''^'" ""^'^"^ "'^^ '«^^''""''^- f beliemi that he thud , en, on the assets side consisted priueipally ..f Bills Dis Sd • ""?:'";."-- -- "" --" overdnlwn Louuts a.l JI- "On t "" 'T '"" '"""'"" ^^"^ "^•-•'•••"-" ««connt. • . V, , !*'. ,"'''■'' '"''' "•*^ ''^''" ' »"''""=^-« '1"^' I'v Banks and an :';r ""' ^' ""^^ ' '-'-' --' '^ '^ '— ' i» - - " Sir Robert Thorburn. in s,K.aking of the affairs of the P.r.^l- gc- leially, and the losses sustained by i, from time to time. uLl u e acre, he said.- If you did not meet with a loss occasionally you would not know what to do with your money.' '*'^''''*'"""> ' > "" f„l l"i!''"''''i ?'" "" ^^'■"''^'"" "•••'••^ i" lf*W "t all for bad and doubt- fu debs I have seen the books of the Bank, and from them lean z^^:: '::,-:;:;";"" 'f ''- f'-^"- -•^- ^-^"t ^-ard J^;: .m.H 3, ,^,,,! ,!,tvir=t d.aruiit».iirfcf(.r».' its I have UMctrtninrd »inci! I havf Ufonu- a liquidator of thi- Hunk, nor providwl for in 1««»4. Soim- woi-e providod for in ISiU. I pnnlMci' a liHt of thvm. '.I.T.tf.l.'" (Thf followinjr "taifnu-nt wum oliji-ftt d to.) ■' In ItCM, out • le ihe Dirt-ctorV accounts, thi'iv wi-iv oth.-r accounts that should hu 'K-t-n providt ' -oi und were not Thcv arc accounts that will not li* pnid. I knort this from information "olitaiui-d thmujjh my present official connection with the IJauk. " The Hank ilcclaicd a diviilcnd in Mav, 18f)4,— I wa« paid it. In \ovcnilK-r 1894 thi' Mank dcclaiv.l a diviili-nd,— that was nul iwid. It waspavahlc I2th DcccnilK-r." QifEsTiox (ol.jtclcd to; : "Had the Bank from its net profits earned this dividend":'" Answrk: — " No." Ql'kstion (objected U,): *■ If Ha. Bank had made pro|H'r p.o- viaion for ha.l and doubtful debts, culd it have declared and oai.l this dividend?" AN'awKit: — '• Xo." " I was deceived by the declaration .-if the dividends. From the Kejjort and Statement I believed that the Hank was earning proHts divisible aniong the shareholders. I sustained loss bv the failure of the Hank." (Signed) JOHN r. GILLAKD. Sworn before nie at St. John's, aforesaid, this loth da) of October. A.I). 18f»">. (Signed) J. G. CONKOY, J. P. The Cross-Exannnntion of .loirv T. (Jii.i.akd, taken this 17lh day of October, A.I). 189.*:— To Mn Jonysov. Q. O. QlKSTK :-" .V,e you aware that the s.ipplying trade has. as a rule, not been a piolitable oney" AxswEit:— " I am not prepared to say. I understand it w« profitable m 1>S!»4. I don't know if before that it l.aj been i.roHtal I ■ iii late years." QlKST...x:-" Have not .several lar-e supplying firms gone : Uo voluntary liriiiidatiou;'" Axswkk:-" I know that J. & W. .Stewait have closed up their business; for what reason I .•.»n't know. Mr. \V. ,J. S. Donnelly gave up business about tv. ...y years ago and over. So did StabI, Kowe, & Co., within the last (ifteeii years. L. ()-Hrie.. & Co elo.se.i up within the last lifteeii years. | dou'l leiueiuber about Hrookiu" & Co., t IS so long ago; but I believe they weul into voluntary lioui^la- lion. When these (inns went inl,> li,|„i,iatioii. I ,,up,,o.se they i 'id up all claims. It is likely I would know if thev did not. (^'Ksriox:— ' .Vre you aware that Harvey & Co. had, when the Hank closed, a iimulHr of sixty-days' bills of Exchange, which were reluriied protested for uoii.ucce|)taiice, and which they took .ip?" i ! ill fi' 88. Co. tt8 a M-t off njjainst tl.oir liabilitu-s to the- liauk I'tnt PvVh'.!. 7 w«^.otn.n. .... Hank a..., .,..,•,., . tl.n. ...1 „ l;^!;::^ ^ •Much . t the hxchan-o was l,„„-l,t uith...u money " I an, a T.s,.U-e of n.orl.nn, & IV.sier. I a",, „ot a.vare .vith- om refe-vnee t, the Look., uhethe,- the ,i,.,a ,11,1 not o.e to v!^^ Co an.lto A H.-vev A: Co. over ^0(H«), .hic-h the lUv^^^^l ;!:::: ;h;sH;;;^r'"- '^"^^" --"-•- '>..o^^'^.-thei.ro..,„a- CV a V M """•':,'^';''''^' =""""•" f'"'" -^I""" & ('... to llarvev & urrpr""''^ '••"''"'' "" ""'-^"^'^ ='^ -"'— had to Axsweh: — " QuKSTicx:-" Hv .vferenee to the i,ooks of the 'iank eu, vo.> nan.e a tune uhen the ..ecount of »aine, Johnston. & Co wa , . i :r;n;?- """'" """" '- =• "'"^""^-^ ai.ont^2..o.x)o;;;;;;;:: Axsweh: — " Qt-ESTioN-:— •• At the period durin- which the hwt $30 000 of ExehanKe was purchased frou. the liauk hy llaryey & Co w hZ- the «tate of their current account ?" ^ ' " ""' Axswek: — " Tollos. Mit. .M(.i:iti^ — -nuheu^hofnec::;e;th:\ih^:f;he:::rr :;;:;-• ;::;;: ! , -^V: '""''■'■"'<• vah.a.ion these two items would, takiu- Ksh ;nh.>und at j> ..0, and a, S70 ..c-tun for the oi,, eon.e to ^^^'o ->i.mnunt J. . (.. l. was made out by >[r. Onierhrid-c Mr (ior- ^..^ and n.e; the ^ross liability appears at $^!M).2l:J. Th St u. "< ..nlv .piHo.vuna.e. The ass.,s are yalued a, . rf ii ivdiice till think Sir lioh-ri's est as the intentii 'II of Thorbur VMiioiis balances due by their plant i'sslel' lo *'"•« lo them do V "•'ate. of .>2.-,,ti(M) |„,. ,|,^,i, ,|^.|.,^ ,,,,, , oil I'll K I Hi- OW; I m. thrtn AsHwr.»:-" I i|,i„|, ,,,. ......M ,„.,|„ inori. ihiMi $'J,ii.OJNJ out of '^/MTrov; -" I, Si, |(„|„ lhi> vhIiii* of III*-*- il.lii,/" rl II" jriMiil II jiiclxc ii>i till- T As ■"wrii; Sinl ••iii.iii-. I'l,,, (I,,, ') i« •lillli'iilt I. my. If. I li""f llir IImiiI,. wliicl, Si iiliiiiilli-.| tvlii'ii «i r»*tvvn of iiiiiil.' itvii ililTiw'fiit "(itv il, »l<'llll(lt. I lii'li.v «"TI' I'Mlltlillill}; ilili, III, "f « liiiii' ««|ii ll.H.I M «,|l|.|ll- ..r ,|-M..(, „yrv I MiimI< tlitil till' Slut •••I ••> I III' L.Kmliiiiir,. I ItlllKlll tv„„ llljlit 'I- "III.IKI-lll |i|,,.|f I, '•• I" l|l>l (II III' flllllMl, II'", mil I il >vii« tiiiidi tiiii ilii'ii II iiinili- mill "iilitiiiii,.,| loll " iii<|iiii.' iiii., ii„. „ir„ii" „f ii„. ii,„;i; ffi • "TIIlN HT..W.,„„^r,.M„n,|,.,,„,,,,„li„„lh„lllM.|i,.,ll ' •■lllllilll,,., I ,(,i„|, If ;fi-iiili'iiii-ii ii|i|„,inl- II I II AhIi niiij oil; II till' I iiii; will n-iili/,,. iilioiii .'^lid.iHM). \\ ,. I mil. '"' |)i.|||« „, ,|„. I'l «iiili;r III,. $l'j:',(HH} I'-liiimt.il III,,) t|„, iiillii-i'lo r Hill 'i-i'.'iiiiii, .'.l.m „,. |„,v,, („|, ...III".- «.. iiiii'l .,,4 „|„„ „.,. __, "ory iiolri, |l,, ,„,! i.'l.i.'iiiit ••••jiri'H.iil III,. ;.|,.,||,.,. ,,.,1, , , „| I 11" iii.li-ot IliiiMJ. I'l,, lliiil u.' I'xiMcl lo I ivc, mil I'i'i'i-ivi-. |.i'iiiiiiM. I.iil II if any of III,. |'|,iiii,.,. I I I'lM' |.iiiil ill lull ."" "'•"•'■li' 'l.vti. K.'l. I.loii'i U „•>■ now I' «ii" lit tl iiii'.'iiii I'OHil' ill ill). ,.|,,| 11 I'lioi Inn II 11.1 "I." Illl' oiilv A r, •ii.iii. tlHTV rillll'IM^ IVll^l..,. ol ',. IJ.,,,1, nif.liiijf I iiti,.,i,|,.,| ( ••"""T. I Ihink I Ml. Wll" iii-i.'.' „r 'n,.,,! Mii.V .I.Ti^ioii nlioiii ■l'\,„,\„ , \. -j "'"-'""■'' ""■ " - Tl... Umik |„i,| n-iiii.iiili,.|.. I III 1..! iiini Jic li. or.. I , I |,„ It WIIH I'lflls,.,!. I ill> nut" Sir l;ol„iioir.'i.-.| II I. Ill ..mil, liii^r, ,|M I HlIN II 11,,', mill III.. Ill «i'«'iiiiiv. "I" •'^ll liol.,.,! lo ||„. Ilo.l.. „„' I'l I'.'l.l-. lo No oilier I It. ii|.i..Mii in;^ III,. I; I'll ini'ilii ii«i'-l «i,.,|i|,„. Tl I'iini 1.1 II liiii,. I iiiiiK' I" .'.III "'»' "I'lll.'.l. Ilii, I,,|| tli'il II" kill i II "ll^';^'i.||,,ii I, I, I I I «vii" iii.iili. nil,. I III,,, Ml ,, I I'll inml,. lo II mi "iiitj .ili.i li <|. Noll, Miij.iiny H'.it .,.|| III, j|. ,1 iiii'.'.i III,. > • iiif lli'iii. I It Tlioil II <'iini. of It. I'll I'limr. lo III,, i,.,. ,1 iniiliiii ' liiiii mill llii'in; iin.l ,|„„ I I Ml III iV I 111 a IMi.iior o| III,. ( i"'i.'r n>,',| lo |,iH II iliiiX mi.l Wliiili "" -I"'";,', mill iiKinnti I'K It iniifll tiii" 3',.,ir ..I ,':(,'I,-,,(km) Iroi,, n •IIII Jin.l iiiminrti,.- ""M''"v. Tl,..) ina.l.., I ,i,i„L 1.' ni.it linliiliM III I |ir.'(|ii( |. II ,Siiii iiifa.'i in- of II I'liiint Hliowiii;; iltc I ii. •>(.„ ii'U .in- tinif, (on \'.\,\ »r>,'i'"t iii ha.l b...... .lurin^:^ that year, an.l the., we.e in an ""^"""d and u„p,„>p..nms condition, no, p,.o,l„..i„. .,,,y ,,„;,, ,,;,;. «ible an..u,j, tla- Shaivhol.lcrs. with i.,te.,t to deceive au.l .lefraud Kiuh of the Sliai-elioid said Bank, ami to induce tl Its as were uhavwuv of (he true slate of the otliif shares il Bank. ..•1,1 t.) hol.Uha.cs thcein. a. id to icein, au.l i.> hecoii,.- ('iedilo,-f l.urchase ml ( usto.ue.-s of tin. I I II li I iJI I" 'limv, IIS a "•> profits ,o .,ivi.u: "^Z:;:;,;^Z ""• "'"' '••'* """" '^'"' to cu.,...u.,s ..f .,,, .aij I ,1' !.•"■'■• r"' ''-<'"'<- .x-,..e.ent *«iear en.lii.g they well knowi,,.\h; •,,;»' ^ "'^- i-'fit.of the BanlT. half-year. ' """"^ '""' "" l""«f-* to divide for that And sMbseqiuntlv, on the ]0,]. ,i„,. e t\ «aid accu.sed eonspi,, an. . Jt" . , 'i ^ I ^'^7'"" '^•^- l^"^^-*' '^'■' to .v,,re«en, t,. SI a,el,.,| :,,'•'"';:'" *"''^^'''^- '""' f'-'Hulukntlv «'■.• to the snl^eets Lf' ' i^ /';, rtS'^'^rn 1 '"^ ^'"'' ^""i^ «onnd and l.msperonseon.liii, V ' , '""' """'' "''"* 'hen in a wa« in an uns,. „k1 .. ' "'"-^ ^^^''^ •''."-i-J,' that the said Hank o'Hi defraud M.ch ' 1^ r^ :;;;:m""t:' ^^'"' '■"-" ^° ^»--e und sni.jeet.s of the (J„e..„ ' ^ '•"^■''"'''^■•-- < '"*ton,e,s of the Bank, the Bank's am.irs. .„ Z^^'' r'"" ''': 1, ""^ ^'•- -"'ition o 'j: the said i^u,k,;.n:; :;:::';; ;:^'''V"'''r '--•- Creditors of the s-,id U,,,!-. , '" ^""t"'i'e Ci.stonieis and •hey af.erwar.Up ,1 ;'::„:;; ;;; (— ;- ;.^ the said Conspiracy ""•' '<"• =' dividend I. r h : '?'V' ''':"'V"' "^ '^'^ '- -''t- ^^^ A. a IS',,, earned ont of p, , Inj: ' M '?" l'^'^' "^ ^"-""-•. '----u.^.d no promts t-idi:^;;^.;::!-^:^^^^ -id^^l^irs'itr^di;^^^^ -itten statenion,, ,o wi l! K S V.''' ^ ^r' '""'"^'' " ^^'•'-" •'Statement of the Vrfiirs of r .';'' ''^'•""•l •"•d (General " 'W.he V..arendin.;!f:; M.;' X^"h" 'f "' ^-f-'-ndlan.l well knouin- the sai„c t.. 1... lii' • '-' ' """' "^^cnwed, then i.mm,s of three doHars per share, a, an.l for . dividend for the half-yea.- e...iin.r ,he .Jl.t day of Mav. A I) 189 earned out of the profits of the .,id liunk. thev then .v,-!! know! n-!^ a, the^fact .va. that the Bank had no proHts to di.ide d.rinjf thJt hil" hoM."!"'*/!'.' ■"•"',''?."""'• '"'^"""'"ff "> •"^•^■^•ivi- ..nd .lefmud Share- holder, of the .a.d |{a„k. did, on the l(3th dav ofJn„e.A.D 18'U •monff themselves conspire faUely and fiuudn'lently to p.ihli^h and repreM^nt to the Shareholders of the .aid Mank that the . a k and t •ffan-. ha-'<. •ttei wards paid he SI, ueholders a divi.jend of six |H>rcent an.l a Bonus of three dollars per share. a« and for a .lividen 1 ^ he ha f year ending the .list day of May. A.l). IMiU. earned out of the piofits of he said Mank. they well knowing, as the fact was, that the iank had no profits to divide during that half-vear. And the said accused di.l amongst themselves on the said 16th day of J..„e. A.I). 1894, conspire falsely and fra. dulently to re pre- ha the s.a,d Bank was the , sounu and p, .perous eon,l^ on nand sueh of the Customers of the said Bnik and subjects of the Queen as were unaware of the true state of the affairs 'of he sail ":ci:;i; :: :b: :';7B:;,;r:;d ;""; ■ ' --'r t "^ -^"^ Mid Bank '■'"'""■ ■^'''"■^''>"l'li-'s of the «»M|....^.,,,.-^;!:-,!:t;i;:-;;:;;;;,::-«;-- Mmetolu. r.V ■' ""^^''"' "^'••'"^'■-l- Hum. k.iowin- the ind luce hms to (1 .1 shaieo therein, and to I >.'-v-^ of the said Bank, and to pureh; ise other Bank, d iind did thereby d don, and did induce him to hold sj, oMie a Customer and a Creditor of the said 'oe.ve and delVaud him. the sai.l James Coi- to jmr- res of the saiil Bank, and ^ ^*-» ^'V* IMAGE EVALUATION TEST TARGET (MT-3) // A A;m / //. ^ Sciences Corporation 33 WEST MAIN STKEET WEBSTER, NY. MSSO (716) 872-4503 '^ # iV « SN O^ % -"•. and then .t«te of the said li l n V 7 .'• ' '" "''^ """"■'"•^' "^ ^I'e true to purchase , r s t: , . " " '.■ ." " '"'" ^'"'-"^ ^''^"•^'"- ""'' .'..".e. Gcrio n.V '' "'^•';.'^>- deceive and.lefraud hin,, the said C:nston.er of t he^ B m" ^ "'V'"r"'' '"" '" '"^"'"^ " <''■"•"'-• -< -one,; And in pi ^;a:t"::^ti.::i;rC '"•"''' "f '' '"'•^'^ ^"'" "^ cused. afterwards n.,!,! , ^-aul Con.pnaey they the said ac- cent and a B. ^^ ^,:;;;; ''"'"'^'^ -"•'"" => ^-idend of six per t|;.- ha.f-,ear endinj ["'ilt": ; ^^ llT^TtJ^;; " '"^t"' ^^ the profits of the said Bank tile; w. II L- , ""''' ""' "^ t'-^;;^h..nopro.st;;^ii;';^;rL^''::;- l^.nkvyas i^r w „ n'r''''''^^' ""^•" •^""-"^' that the said deceiy | \2ZZ^ i^ -nprosperons condition. «-ith intent to or the true .'lliZ of the 'B.^^i; '^^'r-TJ'" T ''"''''- ""d ,.urchasc shares in the said B.^nk nd' ' I '" . " '" '"^'^' a Customer and i Cr..,!!. „• r ■' '. '"""'' """' ''^ continue and defraud tL:^;;;'"^"' ""'"''. "'"' '"'» "--'':^ ''--e purchase sha.vs i Ik'; ."'''?' "'"^ ""•'"-■^' '''"' '" '"'1'' and Customer and a C vdi o J^' ""f "^ '-'"d to continue a •^an.es Gordon, u . 1 '." U ."'' ""''' "■'^^"•^'^>' •'^'' 'he said m-suance of the said r us ;'^,: ''T ""V" """^^'^ -'"'' '" paid the said Jan.es t . rd .. I " • V I ' '""'' """"^*'*'- '"•^■'•vards dividend for th .-f V'^ "'-"'"^ -^^ I-' cent., as and for a im earned .;!;; .l^ Iht^ ju iif tii^B t ' ^ TrT"'^- ' ^•'^• t- the Bank had no p.l.H.s to di:lde ":• ij'ihit S.^:^'"^ '""' Ami alteruards. „u the Kith day of June V I) H-U ",. '• .Matenient oi tite Vlfiirs „r .1, . ri • I, '"P>' : uchoider of the sai»,. fc" i w PPt 96. "221 jr '"•"" "°"'"^' ^'^" "Pou your trial, notwith. -S™e;.t^:' " '"• " -""^^ "^ '^-^- "^-^ ^- ^«ve ™.de ,our ow.. Whereupon ihe said Accused say:— .ccuid.r '"""' ''" ^"'■'" ^''''""'^'■^' '''""^"^'"" »' 'he four .11 I statements of the Accused. Statement of Augustus William Harvey : III 1891 I hail K'tM. « .liiectoi- of the Union Bank for over 2i jear., and in that yv.r. I .letcnninea to lotire from the Board of Di- rectoi-« ua ap(K;ars l.y certain corr. siK.ndence which th- Crown has pat m cv.dcnce. In order thr.t the corm.pondence inav (.e fully undei-Gtood, 1 desi,c to call attention to the ..-,te of th.ngM' a« shoui, >n those letter, au.l thtir bearing .... my position in thi. inv...tijfation. The cied=t system, ivhieh had Ivcoine a par. ^' onr ver>. ..o.niner- cnu ox.stenc.-, neec-s.sitated the on'piu of some $:i,(K)0,()00 or ^ 000- OOOof.nppl,eslH.nvt..„ Octol,er and J.dy, roiurns for which w„nld not b<. looked for dnrii.j. that perio.i. Without justifyinj. this sy^tc-m which had grown up gradnallv, it is app-.rent that it was a siste.n' most diftcnit to chanjje, and that a ..,'". viz:l Unit the liability ot any customer whose account is covered bv pxchange should not exceed X:;«).()00 from 1st Feb. to liOth Sen ■ account to £45- ; QOO and .C.tO.OOO within the above dates respectively, and aUd ing accounts niust be coveied fortnightly. All account hi 1 II Iraw- s infrinn-iiir II ' f - n^z!T^:!.r'S7i^r T '''' ""^-^ ''""" «-"- - than once li„ iti , „r • T"'"** '" »""•' "'"* «=«"«••'" "">'>^ " iustifi. I, , "?'"''''•"'' " -J?''*'"' '« P'-x-t..! *hich I do not consider " wrong |K>licv." P"'«>">nci' in inv opinion of « ..•corX:,'S,t- • '::L':; '"""" "" '" '"«• --"^^ '>r "• ^•''• ...d I>,.,btf. I DobT Won . :'"; r'l ""'■ '""^•"•"' ^•^'' '•> »•"' capital and e . • that i u„ "".' '^'"^ "'"^ "" "■"''-' with >r^s.:;;;!'irth";,;r'^r "'""• '"' '"''^'- '^^-"^ -"veLatio,. at the boa,..l „,eeti„.. nntil I left C K. H,u t^i^ i^^ ' "u"'""" .t wa« shown l,y iniinte of Doc. 9th '91 C S >7 Th.f • T""" w... being made to ca...^ o„t the r^ol^i^ii hal^l^^r'"'^ '"""' ...et« c ... iiabiiS ■ ^'^' ''"""' """"'" ^^'^'-'"^ -"-P''^ of .oh;MrtS!^::::;'i;^';r^ b, the to,,.,' „s„„ Et,H ';''■;', r '", ""'T"" "'"'""■'I ....ou„.„,ea,i.,„ ,„.. B>.,r,\j:;;:;;„:i":;;i =;;;• ' *'■ no, ».».^„;:,T"i,™,;s,"'","7"" •","' "'"' "■""""' "-" "■■■ B- <;»••■ I'iii^ » m u, ,i„. „.«..„, „, ea, oSi ' ''■ tT '""" ,* il I !l ■■V. '■' ,V> ' ■ ' 9b: On Mr. Douuc.lljrV rejH>.-t. the minnte of 2.ul Ma>. 18<)2 (C S P f ! WM |«„ed. but«> far fr,.,„ iu beiu.,r evi.lence that .wV. Nfunf U wa.Z'Ze"' '") '"-•-:"«^-« «>/ ^I--- "ordon i» hi. evid. . ' O.T, Bennett . affanx wh.ch .a.is(i..l th. Bauk that .Mr. C. T. Bonn- the .MOO.OOO mldmouul available t„..d. m-.v quite 8afr ; l.ut the Bank ^t to';; balife."^"'""^ "'"'"'"'""'» "'^' -'•'""-« '"dto^ Mr. DonnHly ndvi-.d with Mr. M.,nn during 1892, and a ron.J. dj«bie c r„, „,„ .., ,,^. ,,,^. ,^.^^ ^^^^^ effeotedfand Mr. LMnu I, J^effect that rh- net pr..fl,. ,.,„!,,, ,., ,,02 ..,,....„,,, ,, ^'....'^^J ^ f200.000. wh.ch shouhl IH. entire justification f.,r valuing; the aecoun, The bank received «nnu..i statements of Thorburn & Tensier'- business fmm the time the Hn„ eommenced luHiues.. an:l VZuL. me„t« .honed that the firm had a ...rph.. „f §80..X)0 or mm ui rond in the Annua) Statement. (V.. & p. 20, 2 28) in d.^tail. hut assumluif the figures to be cor- " root, there could be uo doubt as .,. the solv:ncy oL. Hnl Z « here was auothe, statement which ca.ne in after th. .usX'im Tf' •• ooS^id lS;;m''" ""^""^"" '"-^-^^ " -'■»"- "^ '>— ^^.- With regard to Baiue, .Fohuston & Co., thev hud oracticallv Uiken then- account out of the bank books in 18!)(). in Xovimb. „ moiith when su,,.lvi.j^ houses needed more accounno.latir ^iu ^ nny other season. This seeme.l to me au evidence of e.cepton trength financiall, d it appeared a. if the, conld at ...^ t m M " the account in p.op,.r shape. "* ' The evi.U.nee of Mr. (Joldio's i..„er .shewed that in 1893 when loicduct It, Ml (, a-ve undertook positively to have the accouul in -ausfactory condition by theen.l ,.f ,hc year, statii,.^ whir- I 1 was to come f..,n to do it ; and from Ly L:;:;^;!7£^; I felt assured that his undertaking Uoufd be carried .,ut. hnvo^h'"""" '".'"-' '"•'•'^"^'' '"^^'''-'' Mr. Grieve had promised to' have his account ir. satisfactory cou.lition (;Jlst Dec jioVT m.l T, was not so placed, it will., seen f^m MrS.oldi;? ', ^ ' , ."^^^ Uneve offered to giv- security and ,o give a statement of the aff.U rs of his firm and to curtail his bn>iuess, which orouiiso . « t I" the letters f....m Baiue & .lohnston'writlt ^ r^ltn S™;' Ihe statement was received, and sh.-wed ' tl... V...... ,' b,,.i„o.. „,>„,,, ; .„, .,». „-,,. ,.„ .U.C j,ir ' :i,,'r. : ;: :: Mm,, „l„d, B,™ „,. „.|„^,e„u.,l r»„, tiioir bcok. 1„ !„ woIS II 100. ' 000 stg. The statement of Baine. Johnston & Go's, affairs and the mortga-e «ocnrity was received he.-c i.. 1804 (April I think) and the givj^ng of the security was conch.sive evidence that Baine, Johnston &Co. knew themselves to be solvent, or they wonid not have done what would in the case of their not being solvent have amounted to a pi-eferent>ai payment. .\t this time also, April 1894. thev had two ?U I ^lo'Z' "'' r''" '" "'" ^"'^ "'"^ ^'""*'"-- ^^hich should have «dded ,SK).0<» ,0 then- assets, and there was apparently much more p.o,H-rty Ml sight than would have li-iui.late.l their indebtedness to the Mr t^Jordon in his evidence, Oct. 11, 189.5, says " durin- that ;; p...od, 189:j-1894, we considered Baine, -Johnston & Co. pl^-feltk solvent and np to the suspension of the bank I had no reason to donbt then- ciedit." I always considered Mr. Donnelly's real estate here and in Har- bour Grace together with his bank shares, as ample cover for his account. I ho not charging of interest on this account was in con- nectjon with an annuity to Mr. Donnelly's step-mother for which the Bank was hable under an agieement of many years ago. As shown by the evi.Ience, (Mr. Pinsent. Sept 24) all three of May S'" ■'''''"'""' "'"' """""■ *"' ^^"' •^^"^' ^®^^' "^"" °" ^1"' However, r was still desirous of vacating mv seat at the Board, and requested n. April. 1893. that the Ba.,k shoul.l acquiesce in mv desuv and have som. ther shareholder elected in mv olace at the annual meetmg shortly to be held; but. as will be seen by the corres- .x^dence. (C. S. P. 82) -itw.stlu. opinion o. „,e l^r^JZ:Z]^ woul.1 not Ik „, the nUe.est of the bank au.I the trade that I should which] had tendered in August, 1891." [ did not think th.t f on-Wil « refu.e lo reuiain a few nv.nth ,,...• if i, »re.v c.usidMv.l to Ivin the interest of tl-.e bank ..nd the trade that I should do so. My letter shows that I only iuten.led to remain a few mouths This cor.x...„„,- derice indicates the position [ held in the bank from 1891 to the nn.mal statement of 189:{. and in itself would negative anv such thin.' of Jh^ binr'"' '" '"' '"''"'"■ '" ''"^'•^'"•'•^^'" "' ="'y ^y^^y ti.^ affal.: All this time I believed the directors' accounts were fterfecilv good Were any proof wantin-^ ■A' n.y belief in the solvency of the directors accounts, it can be found in the amounts of promissory notes from then, to my (irnispaid .Inrin-each of the vears 1892 to 1894- ^__ J. Munn .t Co.. 1892. .>;H().;U:U;{; 189.J. .•:;2(;..-,l.-i.41; 1894 ,.i;{5 - i.u.r>» ; Thorburn & Tessier, 1892. .■i«18.70(j.(H ■ I89{ "si> -Scnj-'. The sales continued up to almost the day of the era*!, a- ^hewn by Mr. CJillard's ..vid..nee. Xo sane man would sell on such lines had he doubted the solvency of the purehaseis. I had known some .lays previous to the 8th of Deciinbe. that Messrs. I».x,wse, Hall & Co.'s bill.s were refused pay uent.and I knew I I ill I. ii 101. -that this must affect most.scriousb-sevevul of pur St. John's firms ,b|it„my confidencu in the Union , Bank was so eticg il,«t on 8th ,t)8cejnbcrlhoiightfromthebank MOOOofGO day sterlin- bills «ud there were some £7..>00 ,n all of these GO day bill« b T-ht bv my firm from the bank between 2Gth Nov. a.id Sth Dec. which were refused accepfance, and which we had to take up immediately after the suspension of the bank. Mr. Gili:n-d swore that " a lot of that exchange was bought without money and without price," but the .account as put in evidence shows, that the >vhole of it was bou-ht ,w.th deposits of cash and with a s.n.ll amount of discounts, o;.cep''t a .part of the last bill bought on Saturday, 8th Dec. A portio-. of this bill (some ^,000) was paid for in cash on that day, and the balance rr ? T '" u ''i''^"" -^^" ■''*■''■ "^'-" ^^'^ '" '^^^l' ••'"^ Sood bills had not the L nion B?nk closed its do early on that day. Had I had the slightest doubt o ' the stability of the bank I could .have taken the greater part of the £7,600 in cable trun.sfers, which would not have been affected by the crash. Some evidence has been given as to the sales of shares, with a .viey. no doubt, of showing a want of confidence in the bank by the holdc-s of the same. My firm and .1 have never sold a share of the ^oS: ""'"' " '^'"''-■"' ""•"'"^' ^""^ ^^^ «'•''* ■— • }lr, Eugenius Harvey died in 1889, and Mr. Outerbridgeaud I >vere executors of his will. There were 90 shares of Union Bank sjtpck belpnging to this estate. In process of realizing this estr.te, Mv. OuterbnMge in ^892 i,la- pnce, which he was unable to obtain. But Mr. Gillard eventually offered to bu, one half the shares himself if he were allowed the bro^ kcrage on them; and the sale to him was completed. The balance of the shares have been for sale ever since, but the sale was never push- ed and there are still twelve unsold. I have no present personal inte- rest m these shares. ^ The amount ot notes discounted by the bank whereof my fjrm were endorsers was put i„ evidence as if it were a debt due by the h.m to the bank. This was subsequently shown not to be so. But .t may be well to note (as deposed by Mr. Sta^ort on Xovember Gth) ha he discounting of safe promissory notes is one ot the most pro- lii li banks hlable ami legitimate of the branches of the business of .. „ oanKs «? fhe L nion, and the larger the amount offered of good notes by any customer the more valuable the account to a bank. Mr. Cro^uhU»s 14) said " the annual average profit of Mr. Harvey's account o tlfo' ;; Ijank would be §17,G00. and tbe profit for 180?M .JVCm " Sness.''" ' '""''^ ^""'l-'"'-n ^'"''"S banks for gootl discouu; I was under no obligation for doing this or any oth.r business for my finn, as I could at very short notice have closed our acco^n ^^Sh the Union Bank and haw oht.^ined any sucL f«ciJities ^iZ ! I I! !l 102. r ! fh. /^'-.f "'.^'"' '''«^ P'i"^iP«l Crown wtness, testifies (Se ■^^ 2-. to of 1893, and thai Mr fir j '" P«P»"ns tho >lnKmciil Mr. Pinsentsays, "During the last two years before his deith Mr " Sonfinn II u ° banking career when he left school in I believe the statement Mnd report drawn nu hv AF- '^u- . u The financial catastrophe which overtnnt tu;. S :Tz;-Lr •"'• --.-■-;«.:";: z;:;,'t;;: Ivuids of mercantile assets of fifty to s..v.„f v «,. . Under these circumstances aSo Ush^, 1'''' '?' '°'''^' '''""• solvent in May ISO.M, may ^^r^wd h ^ ^ ^ ^"'? ^'"'^'''^^ sales30t„.r/centsin;!;:in:::^:iiy:"''°"'^ '•^""->»' f°'-J debts that 4..t he l:id;.;d't;f:!;t.if^.r""='' "'^~^'"^ »" Mr. Pinsent testifies that Mr. Goldie « would probably know ■■I ii II iw. u ^l 'J^ """!" °^ indivulual cu..toraei>. witi» regard »o the accounu •i fif tli.5 Bank than (he Board )y..o|d know.? b r H^ ms «Wun^ Mr Goldie'« affidMvit in attached to the 1893 statement, and Mr l^slV" ' V"*''' ""'"" ^^"^ ^^'--» corroWen the ^893 statement after u period of twelve months. It is clearly shown from Mr. Pinsenl's evidence (Aug. 28) that I never saw the annual .tato.nent ..nd .v,K,rt of 1894, and consequently could have had nothing to do with them : I was out of theCol4 before they were prepared, and I never saw them till after the crash Before leaving St. John's on 9th. June 1894, I had sent in mv «s.gnat.„„ and had asked to have the sharehoi.lers informed s'th"' they rj.ght elect some uthor shareholder in my place at the Board «.. ;;'■ ^"n*'^"M«'8tif5es on Angu..t 28th, " After '9th June, as a ment o,f the Bank. Mr. larvey did not at any time '.see The "finali. oHr '^^""" /^?' " "° "'"'""'"'^ '' '° 'he meaning and finality of Mr. Outerbridge'fi letter." •* • ...... b """. That Mr Pinsent, pro-manager at that time and subseouentlv ^anager. and the director., fully understood and acqnic"c ^ "^J rel,r,ment ,s proved by evidence. M,-. Pinsent says (S.pt 24) " 'Ut was the custom of the bank to pay its officials up to the end of the month n. which their office ceas.d," and, " The dii-Tcto s ^ceive. fees sen, -annually" i.. .■ J..,., ,,.a y,,.,- ,^.. ,,,^;;^ gw^holf ,nm a lotted for directors' fees for the half yen edi"^ . 30th >ovember 18H has been divide.l between Sir Kobert Tho° bu|-n, Messrs. Grieve, Mnnn, and Don,H.||y." • the l^Tuf;, I ''"'• •:i"'''V« to do with and am not responsible for the 1894 Ke;,ort and ^ta.ten.ent, I desire to refer to the evidence in |?^r - '-^'' ""^ ''''' "^^'•-•>"^ ^'^ ^^''-^^^r^^ 9^m M,-, Pinsent testifies {Aug. 28) that he " prepa.-ed the 1894 st.te ja.noth„,g between me and tl... directors in the „atm-e of a co ,- « S "■ ^ J;»''^''"''-"' ;? "-'-l>.--t the true'stnte of' t!/ - • P""t«- • • •. : 1 here was no d,.«pus.. -on to that end among the directors ^n-!VP^ t^ m k"«^>vledge. I was' p.-csent at'alf m^^ S " : J;;?<^tors a^ the tune/' . . ^ . " From the i..forn.ation i then b'd'' ha ; ^tement ^ras a bona fide one of theVesults of the bank'. b.SZ^ fo the yeaisp. ep^^red by me hone.tly and in good faith'.and showin !' ;; ho... and rijht L the uJ:T^:TZS£:f T, made oath before the Magistrates subsequently to thelorr;;;^. for then- a.iopt.on a staten.en, of profits and a Ji.posal to de . ti , < he apparent pro, ts for the year which could have subjec e t to an accsat.on of an intent to deceive ,.,kI .i..f..n,.,! t^„ Z,X ! ; U« the contra.^, it was my intention that the" tt«^'l^ and the..- app.opriatio., should be perfectly honest." ^ It is no n.ioomn,,,., thi.ig „, ti.nes of financial panic for fho «>«ndest and most co..servative business houses to be br'^ tl ruin^ \ I I. "' 11 i I '■ I ii 104. land in Del boM J Thr"'"^" """""'"'' ^'^-^--ni. their s.ore.,,o pn" ij^h '. t 77". '"''r? "' ''' ^''"' '" P-^^-^ '» •filing valneVal k-i ^o ,:, T^^^ "'"^ -ith the collapse i„ the h« ve occum.,1 in mXJs Fno Tf ! c n"- '"■'"""'^ ""'""• ^"'«"""'' costing oHgi„„„3.i,^:Hi::e\'t;^^^^ and were worth to a going conce n ^S T'''" '*■'"*''' '^"^^ pi-emisps which cost SS ,^/' "'* '"''* f"'-$->.000; other r "-" '^"*'t ?«.JU,uoo ore 8« dfor S(iO()0 Ti,„ .. i , deal of pi-opcitv is si,n„lv „.:. . ■ '*"•"""■ ^ "e vahie of a vast that busLsCs Jhich' • ^i ""' "'together. The won.ler is not m f.o.n Zo'citn, XtT "'" "^'"-^ ''r.^'"^"- -f'- '' o'^'y can Af,- Pi / '^ '"""-' "^ *'"■'" «••»" P«v so much " Savings B,^;k^Th' ^^'"'"^■'•^'"' »""k and a run also on the " Bank cLiu'^tl Zrs v ■^'''"" '^""'^ '"^^ '^"^'^''^ «f '^c Union " ed before it ciredl^.^^^r "^'°'"- "^" '''^- ^^'"O" Bank had fail- downit«custon:er idttie'i:;:;;:;: tf ^""' ^^■'"■'^•' "™"^''' the Bank doors. Once the dl. . '^"^f"'"^''* "hich closed and custon,ers alike suf^.^dT T" f . "" "^^''''' ''^ '^' »«"k violent panic whth en"^.! o.. t ."'""^"'"'^'^- ''-""fe'- I" the (P.08umi„gtlurtle Sl^/'r''"'"'"^^ "*"''-' ^'o-niercial Bank wouldhavcTto^u ndrj a;Z:/r "" r'"""- ""'^"'"' took,.osse.si„„of\t4oUa dX h '^^^^ ^ ^'"'"^^ »^"'^- the Island; and until ^.^ 2l X;, t^t^f '""^'' ""T '" must have been clomL « to irajwrt specie, its d.iors dencJ^TlL tf:;';i;c::r r" ^°-^''--'»-'o-d *„ the evi. in the'inforu: to a d ^ No . '.';';::' ""'r" '"^ ^"^ ^ "'"'-• out against .ne in .npport t h"4 titl k""' 'T '^"' '"'"'^' published or coMspirc'-d to pubiS, a f'd^e or f. .m"!'"^''' "'' ""'""^ the affairs of the Union Bank i S^^J L iSoT TS^^'^''^"'^'"^ "' mit that I was not a nartv to thl , ' "'"' ^ ^"'■"'^■'- «"»>- not a party to the report and statement of 1894. A. AV. HARVEY. i| Statement of Robert Thorburn : r came to the colony in the 8piin;f of 18.12. being then in mv six- teenth >xur, aiul have l>een 4.J years contiiin.Misly e!;jja;,'e.l in the'bu^i- ne«« of the eountiy. My first (Vw years were spent :n the concert of Messrs. Bainc, Johnston Jfc Co., at that Jme .loinjf a large and profit- able bn>inie».s inider the niana-i inent of the late James and Walter Grieve. When the latter retired from that (irni in lS«i2 I rejoined him ns jnnior j>arfnpr in the firm of Walter (Jrieve & Co. which had M branch in Trinity miccessfnliy managed l)y the late A. W. Brem- iier. the head qnaiteis of the flim being in « freeniKik, Scotland, where Mr. Grieve resided, I being the managing paitner in St. .John's, and contun.ed to act in that cap.icity from the formation of the firm in 1862 nntil its termination in 1888. ^ For a number of years tlie firm had a snccessfid career us far as .^cwfonndland b-isiness was eoneerned, bnt iinfortnnately Mr. (Jrieve Nustained consi,k.|ai)le los.ectations of tHo ..n.'n.i,M ri:!:^:;:" :;t:; .^ij:!- --"-• ---. .. stance o?trkt"u;;t ;"'"'■ '"V7" '''^'" ■"'- «' "'^"- i"vc..torie.su-ere eo,„ U . I^ '•^•'l'"^-'- I an a...,ij,..,„,„t, ,^.f,,,,. t'""tv of the bankV resJan... I.u>i ur\ i ^h"-;''; '" '.^' ""*=^"- valuations entirel/ i;;;.";;,;':; """"'"^ ^"'•^^•' "•""''^"'•'" '-<>-ing ."ee.;:;^:fX:;lz:r ''r;:;:,;:;;r f ;'•'' ^ ;t'-' - "- "- i"v..e,| a wish to have =t firs T'ik , . " ''• "'""•""'' ' ''■"• ''^- bnt not havi o,. ", . , V ' ' "" "■"'^'"" "'^•" ^'l'l">in.ecl 'nat.riallv differert fro... H. ;,. «"'>-t.>"t'.iliv correct, and not «t whiei, on cents ,1; T'"; ""r""- "f the firn.'s creditors, the hank, no'"! e.^i s "; ""' ""'T' ''^' "'^" -l-esentatives ..f genera! avdit. . : ! , r':,:::;"""t f """" ^^■'••^•"^^- ■^"•• "-•.« showed that the lirln uonl.l pav 70 eel "" "'""""■"' "•^• 18...... The hn;i;:io 7 ,x:is'':;r'''r''^ '••• "^ ■•-' of 2o years, «as contine.l entirelv ..'th r 'T >^ "'■'•'■ " l-i"■ '"••'k averaf,^.,! eonsiderahl .. """""' '""""^"•^ "'"'^ "'- a...i .lurin/the who. 'e.: l^ /' ^ '""'■'^•^^ "^ " '"""- •1""-..^. robut( TJie e o, merest or a..o\r.i renoy of tli.^ acconnr nee or anv same may he said of its -wcc sort wliatevcr wa !!'>t n stti^^lc cent of loi •e years ISSS to ISDl, witli tl esM.r, T.iorl)nrn & i s eve, made. «s of 4lL(KX) le e.\eeption of tilt unstained in iva.ization.s of tl; essier, coverinjjr ompaialive.y Hmal. e hrm'.s iit eenock pr< I II I !l tMf- -107. -■ ■ I . 1 II I ! • rt of the Union Bank of Xewfoundland. 1894. my answer is the sam'e as that made the foregoing charges. I '^A^ytZ ^''f ""-" '" ™-' "1"'""" ''"'*«^'" o" the 17th day of .'".u- A.I) 1894. .nd althouuH, since the 10th day of Dec. '94 the Sea number of .ts large debtors i.ave ,,,eome insolvent and the bank ha by he duector-s In making up the assets for the annual stateu.en of the years 189:1,1894, not one ba.l or doubtful debt was ked among the assets by the directors, and this process of valua io of such accounts ,u the bank was made with ,h. additional k i ".."e ..at the owners ot the accounts had then^sdves, Ix-fore submitti.t tlK'M- annual statements to the banks, charge.! „ff to profit and bs hi whole or ... part every bad an.l doubtful ,lebt due them. All the e-stimates ami valuation of assets were based upon a nor-nal condition of affairs and the imu.en.se sl.riuka.c- n Z eidised assets of the bank's debtors, in son.e cases over 7^ p o „t and in the best estates nearly .1,) ,,.,. cent, is altogether due to Ik commercial catastrophe which on IX-c. lOth '91 prostrated her.. "... commerce of the colony.an.l which could not by any In. f e sight ave been anticipated. . had no personal fnte.vst i. . / , „ nn> false representations or false statements to the sharehold ,^ oT- customers of the bank. The account of ..,, fi,,,, , j, , .^ ' "..^ bank, but as against any aeconnnodatiou I may have rcceiv d? e ,n ^ had every secui ity, every cent worth of prop.Mtx and by the failure of the bank pennile.ss. I my partner and I have be 'as posseSRijrl of. en rendcicd F was a director of the U iiig that time I devoted all lion liank for over thirty years, and dur- my energy towards the advancement of >i! I! t f i !l 11 I i| t''»^W» 108. the interests of those who owned it ami dealt with it Th. . .-.• " and causes which led to its failure and brou '-^ „Y f T"'""*"" -ny was not our .aking. hut Z^Ht^J '''Z::l^\n become a part ot the trade and business of .; ,.- ole coZv Ff ROBERT THORBURN. I ; I. St v^.i. ^nt of Walter Baine Grieve. ico.>^ ""I '""occnt of the charges made against me. From Jan. 23id, 189.. to May 20th, 18!)3, I was absent f.on. the colony, and conse- qaently not closely connected with the bank's affairs, bnt I MJ-ned the rmual statement of the Union Bank for the year ending May Slst, .u u '", ? . "'"'' ''^•"'-•^•"'Sr it to be a fair and truthfnl statement of the hanksMtfairs in the light of the information I then had, havin- implicit confidence in the Manager and my co-directors. ] did n.rt know or believe it to be false. I did not assent to its pnblication for the purpose of defrauding any person. If it overstated the actual value o. the bank's assets, the overstutei-.ent was an ermr of calcula- tion an.J not of intention. From January, 1804, to June, 1894 I was ngain absent from the colony, upon matters connected with the trade of the firm of which I was a member. I did not sign the annua! statement of the Union Bank for the year ending Mav 31st 1894 I did not agree to the making of that statement .-ither expressly or'im- p..edly. I ,1h1 not conspire wit.i any one to have it made, or pro<-ure. or ft'rt, or concur in the making of it. K- IV?? ^ '''"' " '"'"'"'"''■ "^ "''' "'■'" "f fi"""'. Johnston & Co., which had long been coiim-cted with the trade of this colony ^^he partnership, as then constituted, was formed in 1880, when my father retired and my brothers KoI.ert (irieve and James Grieve,of Gitcu- ock W.lham Gneve of Lo.ulon, an.l I. entered into co-partnership. On. capital invested in the firm then ..as .£.19.3(i8 sterling. In addition «-e had the use of a large amount of money belonging to relatives. In' 188. my tather loane.l the firm £24.000 stg. which he afterwards ina ■ I I had clKirge of tho liu.i.K-s.. hoiv. Tl.o l««,k. ,.f ru~^ i^ d....uct fro,,, those ke,.t i,. Seotl„,T s I • ',"'"' ''*""^ '^'''-^ eharfe..,l to th. fi...., i,. .I^eotla.,.! a i.,..^ ''"""•: ^^ '"■"'••"'^- --- or lo.s c. the .l.i,mu.,t/;l c^'S" ; "."' ^'"- "'""'"to profit accou,.t of the fi,.,„ t'he,e. .s:". " , ' v '''7' ' ""' '"""' """ '"- firm at ho.„e, .vhieh als.- !ealt i„ !. ' ; hV^""': ^'V''^' "'"•'•'"^•'> 'O" th.. on tho book. I,e,e i„ so„u. veaV. u-he , rhV '"'"'' ""^ «''°*" the :y..ar'« b.,,.i„ess by the H, ..^ ,. , . "^ "" """•'' '°'"' °» that the part„e,s at (J.ve .o^k,' . , "^^ ' l^'' -"^^•q".-nce was ."d while i,>.rso,,aiUn^;vo:' 1 s. ;: ''■'""" -'-"—1. our assets we,e h„-..e a., '" '"-' "^^ 'mbilitle> ''-h,i,atio.... .ith til,:'::: . :::;r';r'7r' ••^'"^'•^""^ good shape. 'ii.'in.itelx all »vo,,|.i come out in "ot acc,„e. howeve,-, till late i,/th " \ • '' '"^^ ''^ ^'^^'^ ^id the,eby .„ate,iallv alte.ed ii, 18')4 . .1 ; ",''"'" '•""=^'' '^^'^ fi.™'s po.itio,. at-the e,.d :! J^ tu A:"":;";? ''T'"'^ "-' '"« •ts estate si„ee the i„so!ve„ey ,re m. 1^ ' r''"""""^ ^'••"" i-nf ^CI:«,::^■;i;;-;; r^-r !JLfv-7' 't was obtained bv lV,i„e j"i > •'^"""" ' "J' cable t.an.fe.s 189J tha,. i.. ii{ X; t : T :'•' T "'^' ^'-'-''^-k i.. be -.that thei.,e,;t: I C t t.W^'"'^ u' '^- "'™ ^ ^^"' of the fin„ about .S",.()(),) wo,-, , f , "' ""''' '" """ '^^''^-^ tho previous year, which. U.^t'u'tTV'n '' ''" "'"' '"'" '" later to ivduee the bala, c-e 1 , , h i . ' ^'"''' °''"^' '"'■*^»'"' payable by the Hr,n , . , ■' ^"'^ ""' "'-^" ^'"" "' 1^^''^ hills $.->0.()0(. ktstha s,- ' '•"' T ''• '""■^•''"-*' ".nouutedto hn,.k wheu .1, fib wt «'^ ^''', '"'"'■ """•'•■'-•" ^'..in... hank, so that had t.,: ' .i ^ t :;*; "^" ^ ''I^T ""^'" '"^ vd.he «n.,,it.iiai.iiity,o,iu.\::; ^:..k :;"';ii"' ^'"^ '"""^•°'- wo.,1,1 ..ot have beeu ,„a,e.ial|y la ^n , . , ''" '""""""^- °'' ^^^^ 1804. -^ '•'loll thai, at the coi,„„o„ecmc„t of The amoiiui of cable transfer'^ the necessity of iiuetiii- lai^e I for the Vuum Hank ills d :i« abno.mally large in l«t)4 bv '■»i»rii 1... I> • ■ . . ^ '•awn by IJaiiii.. ,j(,| clear ,nid '" "'^' -^l''''''^' "f that yeai-. and liTstandin- that they should, if inston & Co. aeeei.ied with tho I, It necessary, be met by the X I* f lit. ennfc it.«;If, ,f pajmcnt hy finine 4 Johnston when duo were incon- ♦anient cr impossible, m con.».quence of the season of the year when they wonld become due. I was «b.ent from the colony when the ex- change w«8 drawn, and al«, when the cable transfers alluded to were made and im not therefore re.,K,nsible for the -ansactions. Efforts have been made to pr..ju^''-5«l-- hut nevertheless in good faith, accepted eondit.s' as we found them, and followed out a svstem which all kn.-w^ ? ! "IK>n and all profited by .or a ti.ne, .,d which is^'now^ '. 1 ; :i because of results flowing from it which we no more foivsaw th'ui ho. sands who profited from it. I have only to add for mvself t I d d not know or believe any firm whose debt to the Tnion 1 nk w^ reated as an asset n. the annual statement of 1893, and unp ovided or on the liability side, to be insolvent or embaira^.ed- I Z-w It large s.nns were due by firms of which directors of the Ck w " par ners, but I also knew thes. fi,-,.. to be each doin,. a h^.gea'mou of business, and ! saw no reason to doubt their solvency I 7dZ doubt the solvency of IJaine, Johnston & Co. as I have s.id ' „ eertamly gave no .-eason to my co-direetors to doubt U , l"', ^^ IfT^io [ iiio ri7"^"/^' 'T" r '""^ '■■'' ''^ various deb /.rt ot t.K Union Bank been treated as Hum- would have been, an.l should have Ixvn, uiHler ordinary circumstances, the loss ultimate ."vd by the Union liank would not have been .rieat Tho ,li.. J "'*'""^" reasonably be blamed for estimati..g iC ^.. l^^^": T"' 1S01 i>m\ ^^r^l k.. .1 1- ■ »'>ii.- >r cieotois assets in :...„. . • , -""■;-/'. " '»'"fe this year by trustees of conditions never j.aralleled heretofore. If debtor face amount. If the debtors had to be •8 were able to continue business, theii- debt of the value of tho debts was tli come amount t> were worth their insolvent, a fair estimate dixidend likely to be paid :;f i| !l I ii ^Pl- 112. upon them if the .Icbtor^.' u.s«it* wire reuliztnl when the Uk'»1 bahkn were o,H>rative. and tni same time that the OovernuuMit Savings Hai.k would luactically do,e ita doors at a criti- cal po,n., that the 0<.vernuiei.t of the Colony itMf would piacticallv be bankrupt (not as a result of the crash, hut as a coincidence result- ing frr,ni over-expenditine) and that the .i,sets of the fnion Bank and 118 debtors wouM he realized .luring n panic of unexampled magmtudc. And yet it is to a very large extent because of the pn..- jiidice creat-d by he snudi ivsult of realizations ma.ie in this way that the directors of the Union Bank aii- charged with fraudulently mis- stating it* affaii-s in 1893 and 1894. W. B. GRIEVE. "V. » III II i iiu pwi n y L •W» •n Statement of William John Sinclair Donnelly. I am inruKTcMU of ,hc chni-jr., ,„a.le uffuin.t me. When .i^„in^ it iTl "'?:;"•""'// ';•/'"-" "-.k f.,.. the year«endia/Z Sl«, 8-3 a,H May .,l,t. 1804, I Lelievcl thoa. .o be- conect. I d d not mu.„d ,o dcfrau. any per..,.. ! had no ,„...o„al objee. to LV I could .n no .natonal way Ik- Ix-nefitted even ,e,n,«ra,ily by de3' mg other. I .as. it i« true, indebted to .he bank, but b. ie i he" «har»H HtamUng „. ,„j, „„,„,.. life policies and other ..rouertv 1™? ! .ecity for that debt, and did .L thercf... co Lid M .^ he .nclnsion of t.mt debt in the matenients as an a^M-t. the ZS ,« Je'.' M 7?T"''r' '•^- ^""""»-" ""•'"«•-• "oeonntrxo CO •.dernble .lebt due the bank. nn|,rovide^..»::^'i':;;r tha. the bank ..<'a„s interually changed materiallv fo- .h d^ing the years , was ,«i,i of Te^: S t^a^^:?-: deb or« grew f ss valuable by changed e...Klitions o. ts^d t he bank the fact an68,fll2 ■W4.I72 (312.2(J7 (>!t4,;j{)7 7()().021 248,.l(iG 24().Oi:{ 227.J77 218,87« I 208.]4;j ! 2()2.2;jl Avera<;e lor th( Decc'inbei •'aniiarv, Fol)!-n.ii'v March."., April ... 'o:j. Apri J.May .year 718.918 ;{ 4.{.o;io peeii' 201..! Hi YM WW • 2(11.48:; 2<).1.L'()7 2(»4.7.!- 2()().787 2i;i.i!i8 'll '!f ASSETS : ~~ B> SiH-cie in vault of thi- Bank . ,^,,„ By No,., of other Hanks * 190.169 Ul By Bills dUounce,!, Loan, etc ■'•■ 83100 H> Bahn.ee. dne b. Bank, and fnnd. avaiiabl^in'i. ',^... \":::, \^Z I B^ Bank iV-nnses. I.-on Safes and Furniture l^m M I I I f 4,750,798 2:{ affairs of the B,n,k. '""• ''"'■'■'^^' "tatonient of ,he KOBERT TIIOKBURX. , .., .. Chairiunn. A. W. IIAHYEY, W. B. GRIEVE, W. J. S. DONNELLY. 1 \K\VFOlM)t,.\xn St. JohnV Sworn I), lore, nie at St. Joln.-s. aforesaid | JAMES GOLDIE, this i;j(h din- of ,hinc ,\.|). 1S9;{. , Manager. J. O. CONLdY, J.P. 3.-W. H. O. 2. iniion Bank «f \ewf,Min,||a.,d. St. JohiiV. 17th Jiiiu', 18!);}. TIIIHTY-XrXTII ANNUAL kEPOK,. affn rs of the Bmk- f,... th ,. •""*"•«« stiitcmeiit of the me uank, for the vear endmg aist Ma ' 1803 1 he net profits of the vear ift, i i i "• -nage^ent, rebate, inte^t!,:^ m^^ i^l';^"'*';" """"^^' "^ interest on deposit receipts outsf,,, r '""""^'' ""' -^I't due. computed -II bnd and .^nbtf.d S t^";^ '!i:;:^;'="^'"« f-II.P-i.iou for balanceatcre Cim-ent Acconnts. . '"-'^'''n'"^''! '""gent«. 30,-00 W I'ast dne Hill.M . . . . 1.768,124 08 Keturned Bill.s of Exchange ' 90.18.1 57 f nion In.snianco ('<> r ;..'^ 18 80 *. •{•> Adju^tin. IntJSi^^Vcin.T"' "'-" •-"^^'•- ^^^ ll ^ Hd (Tovcinnient IXhcninivs T '.> 2G,0.-)2 01 C|U'Hnl,Minn...Ma„itol,al{.rofo' ;:''': ""t ^^'-O'^' W <-i-,,g„ i K,i,. ,., „,„,, „„„;,■;, --■■;• *,«« 00 Exch. acol _-|^n«) 4„«l,2,s ,i, Bank jnvnnses .. 1,84'* 7(i ^"•^•''"O 17,812 70 § (».42.'{..S(ll 2.{ il Ir./,/ |i v M v„ /^ntcH Q^u»/' Y Sc^fycc^u/Za^fr/ jy^ (2/(^a,, O. 1.— W. H. O. 3. /K. ::;;:::; ; . ;; ; ; • • I'^^'^-Jj^J ^ 2,279.16o 00 DUE TO BANK AGEXTS AXD OTIIEU BAXKS Umoi) Blink of London CASH DEI'OSrrED XOT BEAFtlVG PTTEREST < •unvnt AcconntH lAon no . ..^ Lt- Savings Bank Bnlnnco l'. / , [g^ S 68,202 38 CASH DEPOSITED BEAKIXG IXTEREST Deposit FU'ceihts i «-,,«« ^ Aci.1 Savings Lak Balance i! 1 ! i;-;; ::::;: {:.?iS S Intfrest Account Deposit Heccipfs ~200nn^ SusiH-nsc Account. ^^,J(.)U UO Dividend Xo. 7G . 657 20 Dividend Xo. 77 „„ ^^ 00 Bonus Xo.;« 2i,3(i0 00 Discounts & Premiums on Bonds puichasJd .' ^^^^ JJ Colonial Exchange Account o, 9-, ,. Bad and Doubtful Debt Fund o^]'=S oa Capaal .Stock paid up ;:; ^ J^^ 28 300,000 00 9,244 63 Kcseive Fund.. Profit & Lo.«K u.idivided 560,742 15 2,381,472 80 79,966 84 1,055,252 06 I 6,423,801 23 I WWi ■ l«*iPV>«>Vf>U^ - o. a-w. H. C. 3. ^-^>^« ©^< ^^^^ C^^j CAMi. ■- ^ &wt """^ """»''' •• ^ ■■.■.■. ". * \''^Am m ^ *• 6a-.<)0() J^^f^^ $ 1.039.155 «, •<-".' IJ .r.k of Xewfo.„ull«,u| ^^-'"^'i m nuErr _JWio(n)o 170.32072 I)o '^ f-xcliange on han.l ... ' ^«-^ f'-' f;We„,.u.oo..,.e:'";.;.. "-'«-• '""gen;;: 73,^^ {>,f '"«• »i'l> 2,318.275 iS , i)oit;!:;;^"" "" '^^^'-^-y ^ i-^.^' ''"'"*^ ^'^ h.lly,s ,-,(oo„M, • • • ^(J 00,, ,)0 ^^'^'^"^ 30,634 as * i£12£{7(Uo ^ !i I I l| ^ O. 2.-W. H. O. 3 NOTE ACCOUNT. In circulation • 7«o «rn nn ^,,^ 2,529,165 00 DUE TO BAXK AGENTS AND OTIIEIi BANKS. Union Bnnk of London 2'>() '»'>- 'W NntionnI Bank ofCon.n.oiTf X. York, loon acct. 193,'850 00 420,777 39 CASH DEPOSITED NOT BEAKIVG INTEREST. Current Accounts 1 l * 7.011.376 40 4 ! •^ O. 3.-W. H. C. 3. ^^- "^^^^^ <^^^^ ^u.... C^^ ^,J. , ., CASH. Xotps of this Hank . ^«>tc8 of other Kiuiks. 0|H'CH' .117 00 lfHi.974 82 iH^E FHOM OTIIKK BANKS AXI, AGENTS. $ 1.0O2.07<) 82 Bank of Livi-ijMX)! . . Bank of Xovi, Scotia Bank of .Montival National Hank of Co„\n.V.ce." Xew Vo^k Merchants National Bank, Hoion Con»„nc.aIBankofN\.wonnclla;r"- ;{7,:r)<) 41 31.Gti2 18 517,()02 f»8 22.;iS 10 .'{2 12 498.40j» 41 1.041 93 l.Jo 00 •'»4,;«1 42 2,24.'}.211 «2,3()7 18,89.1 2:iS 23.101 •■W,.}19 8.> 2.000 00 f»,800 00 2.",0.000 (K) 100,(KH) (N) I81.(HK) 0(1 1I2.0(K» (H) l.")0.(HK) 00 .lO.tNHI (N) 2.".0.(HH) IN) Ki.OOO (K) ••n.l7l) 78 -t.020.79I .■;7 47.17(i 7S % <>,l(io,:{.{(» ■/ y ,c ^ . 0. 3.— W. H. O. 3. NOTE ACCJOUXt! ~ ~ In cireulntion , z,,^-^. Oil hiiiul Iss.uhle . . . * 610,080 00 Ditto unissiiiihlo 1wOO,.kS.3 00 4,000 00 rwfTt. n,^ ., ^ 2,320,665 00 DUE TO BANK AGEXTS AXD OTHER BAXKS laiion Bank of Lomlon . f, , ^,,, ,,.„ 129,561 69 CAMI DEroSFTED NOT BEAKIXO IXTEUEST < 'niitnt Accounts , ,^, „.,. „_ I^«. Savings Bunk Balanc ... .-. ;;; ; ' ; \^^, % 520 089 35 CASH DEPOSITED BEAHIXG IXTEHEST Deposit Ufci'ipts ,,,.. ^ A.I.I Saving. Bank Bala.;cV ! ! ! ! ! V;;.-;.';.-.- ^^%, J? Dividend Xo. 78 o57 20 l>ividi.|.d Xo. 79 12G 00 Bonus Xo. 30 ^''-'^^O 00 13,680 00 O.lonial Exchange Accunt Z.^... „^ 68,623 20 Exchange Account ]«,'-t-'^i' --^-^ $1,818,1818:3 ^^'E FROM OTIIEH BANKS AM) AGENTS. Bank of Liverpool ... Bank of Nov. Scotia "^^'^SO 02 Bank of .Moiitivai 10,81(J 38 Mt-rchants'Xationai Bank! iJoston .'.■.■.■ "■" f^^^-'f, Con.„....a, B ,:. of Newfoundhnu. ...:;;:: S gl ,,,3, ^ ;;.;;« T^, THE i^ANK. INCLUD.NC. BFL,.s DLSCOUNTED Local Bills tiiseountcl .,„ ^,.. ^^ Colonel B.lis of Exchange on han.i ...... ^^\f^^ /jl Current" Accounts"- '•"'"i"-! •" "gents . '30,! 0^ Past dne Bills 2,792,474 08 Ket nrne.l Bills of Exchange .:..::: f/^^. !]« Union Insnranc.. Co.. Liverpool open poiiW. : ^% Jo f-r /.V V-\>''""'^''" I^-''H-"t"'-^'H .. per cent U ^S i* Ci y of Hal, tax School Bonds (i per cent ' 9';J^ ^ C.t>- of ,S, John N.1J. I)..bentnrel (i ^k' ceni " O 22 S Chicago & E . Isfoold B, w! -■ ' ' ^^ ^' Cold Bonds ., pe.- cent . . 2.^o.OO() 00 4,0:i4,(i(;0 01 Col. Exchange Account ~ .,. _" Bank premises '*' o,14(> ((> Chaiges Aeccount 16,000 00 ^^''""aml *,/''^"''""'^'"" B""*!^ Pni-ch^ied "'^*' ^^ ""' 40,1411)7 72,475 (>3 . * 6,075,524 10 :.'OTE ACCOUNT ^~" In circiihiJoii * _ On hand. i«s.k,i,ic ...;.;;;;; * , '^-j^ri ^ 18,000 00 DIJF TO RAVI- .^...x. 2,320,6G5 00 ^^^T^B-^^'v AGENTS AXn OTHER BANKS Union Bank of London „..„_„ ,.. Nut.on.,1 Bank of Connneice, New Y;;-k WW ^^^^^ % CASH DEPOSITED NOT BEAUING INt1:REST '''"''' " Cnrrent Accounts i «-i i-n Le88 Savings Bank Balance ". ■■.■;. ." ;.' ; .* ' ; 953 1^2 86 CASH DEPOSITED BEARING INTEREST '^'^" ^^ Deposit Receipts a.n^ Add Savings Bank Balance' ". ! '. '. ?^.?'|^.^ 2? {"S irer.; ^^^^^^^-^ ~^^^ ^'-^■^^^ »« Su8j)ense Account . ' 29,455 73 Dividend No. 79 557 2(i Bonus No. 3(> 456 00 228 00 Exchange Account ^TTTTT" 5«,896 93 1 ad and Doubtful Debt Fund .:;:::: o?JS 5:* Capital Stock i)aid up . . 2o8,aw 23 Reserve Fund 456,000 00 Pmfit & Loss undHided '. '. ". '^^O.OOO 00 Contingent Account . .V.W „''^-'J' (^ I,ia3,073 96 ♦ 6,075,524 10 ■ W. H. 0- iinloii ^aitt} of llciofcmiiManb. Copy of Minutes, 8th June, 1893. The Board met thi» day ut oiu- ..'clock :--Pn.«oi.t Sir k Thorbuin in the chair, Mr. Harvtv Mr (rri..v.. \f ,'^'""- ^" "; the Manager. UUU an.....uti.^ t.:^17^;,7 4r:i.^:^;:::f " "f g- and ap,r..ved An apj.ica.^.n ;.. L^ :^:::^J:' i^^ torecoid that the.v nave cnnted «hoIe ,.f the Ca.h on han.l U f„ h 7" ' '■'' "'^' ^""'"' "•"••'•^•*=^- *^»"'I""-I the Bills >• 3l8t May IMW, ditto ^^.l'^ 13 Do. 30th Nov. 1894 7,319 79 ;- 7^19 79 COXflXGEXT ACCOUNT. ^~^' ^' ^' ^* At 3l8t May, 1893 Or. At 30th Nov., 1893 NIL At 31st Mav, 1894 .... Nil. At 30th NoV., 1894 t 33,000 30,000 1 ; W. H. 0.-7i. UABIMTIES : To Pn.jjrietois Cajjital To Kosfiv*' Fund $ 4;')G,000 ()0 To Pmfit aiul Loss (u.ulividccl profit) '^20.0(10 (X) lo «ank notes in ciitiilation ... 7.310 75) To Bonus \o. ."W of *3 ,h.,- Khm!.* "f«.'. Vic ;.■ • • 27,3<)0 31«t 18«8 half-year ending 13,680 Less Dividend to 30th N<,vembcr last pa; I ^'^Bi $ 4,4.j;>.74.j 3S V Averse „.,„„. or X,,,.. i„ .:,,„„„„„„ „„, s,^,„ „ _, ^^^. _^^^^ ^ of the year ending 31.st May, 1894. June . . . July August . . t^'ipteniber October . November 581,500 623.0(J0 «ilG.950 88 041,295 020,380 Average for the year fi62.G61 193.279 194,878 2(X),G78 203.285 204,184 199,20() 197,518 i 11 W. H. 0.-7i. ASSETS : By Specie in \ nnlt of tin- Bunk • tor. o- . qo By Not... of otlar Bank. ' '?{- m By Bills iliscomitfil, Loans otc 288ir-1^ By Balances ,lue l.y IJanks and f.n.d. available in IJ days ■.■;.■;.■.■ I,360'o81 81 By Bank IVnnses, Iron Safe, and Furaiturt- 16,000 00 f 4,4o5,745 38 ro fhyh,'l"LI''"''"'i.''""'^\'^''"'''''"'f,°^"''' ^'""" '^="''^' °f Xe^vfoundland hereby certify that affih-lofll^Srank "'"''" ""' '"'"^^ "" ^""''" '^ " '■•"^- ""'^ -'•'-' StatLont o^f the ROBERT THORBURN, ,„ , Chairman. W. J. S. DONNELLY, ROBERT S. MUXX. St. Joiurs, \ To wit. J Charles S. Pinsent of St. .I<»hn'.s, Pro-Manao-er of the T^iinn HnnL- «f v .. »■ o . ■nak.., oath and .aith that the withi.;Staten.e:t?jn«Ud t^ter tlJ^tjJof^ rS^g C. S. PIXSENT, Sworn before me at St John's. Nfld.. 1 I''o-Manager. this 12th day of .June, A.D. k:»i. \ 1). W. PROWSE, Stijtendinry MnylMmte for Nfld. W. H. C— 8. 1 1 i i I i! ; I Sfui«n ^nnti of ItrtuftiiiuMnnb, St. .JohnV. Kith .Iiiirs 1894. FOKTIKTII AXXrAL HEl'OHT. .1. t. '^^^ Diivctois havf plousiiie in submitting to the Pmpriotois the F-oit.cth Annual Report and the ahstiact Statement of the aEfnirs of the Bank for the year ending .'{1st May, 1894. The net Pr<.(its for the year, after all de.luetion« for expense* of .nanngement, rebate on Local Bills DiseounteJ not vet .lue computed interest <.n Deposit Recei,.t. ontstandin- and allowing for all bad anu doubtful debts, are ??8(i,47.-..l(i. making with $9,244 G.-{ balance at cro.lit of Profit and Lo.ss account la.st year, a total for dustribution of §9j,719.79, which your Directors have nppr.»priated as followti, VIZ. : • For Dividend of (i per pent, paid in December last $27 3(J0 00 For Dividend of G per cent, to be paiV . J. "5. Donnelly. No. 1. . . . 73,913 G<) do. No. 2 3,287 aj „ , ,, 77,201 49 Harvey & Co (;2,187 35 * nrniture C( 19,037 14 — '■ 81,224 49 J. Mnnn & Co 158,940 25 Thorbuiii & Tessicr 379,233 30 w ^ •^"- ^"' Oil ... . 19,715 27 W. Grieve & Co 20,532 31 419.480 88 $ 998.154 41 (The above amounts are included in item $2,318,275.6.';, Balance Sheet of 30th November, 189:{.) 1 1 1 f 1 0-W. H. 0. 11. |(nlon ^anl! of llrtvroniiMaiib. Linbility of Dii-ectoiH on Currt-nf Account iit 31st May, 1994. Biiiiie, JohiiHtoii. & Co *2a4.ll7 ST, $'2, 1894.) D-W. H. 0. 11. Union iaitli of ItctufouuManb. Liability of Directors on Current Account at 3()th Xovemla-r. 1894 Banie, tiohnstou, & Co « aq± la^c m W. J. S. Donnelly, Xo. 1 $72,163 06 ^ ' ^ do. No. 2 5,273 25 II , r> ^ 77,im 91 Harvey & Co., net. Furintin-u Co. 20 1% 50 J. Munn & C;o. igg'ygj -^ Thorburn & Tessier 408,504 19 do. W. Grieve & Co. 21,782 70 490,280 89 $1,221,322 05 (The above amonnts ai-e >uded in item $2,792,478.08, Balance Sheet 30th November, 1894.) W. H. 0. 12. Union Bank of Newfoundland. Lialiility «.f Dinjttori. oil ExthnitRo. liUt May, 1893. Bnnic, Johnston, & Co $1'JMity of Diivcton. on Exchmige. 31st May, 1894. Bainc, Johnston, & Co $108,000 (H) J. Miinn & Co 168,000 00 Thorbui n & Ti-Ksier 60.480 00 $;i9f..4«0 00 D— W. H. O. 12. Union Bank of Newfoundland. Linbiliiy of Diifctois on Exchange, .TOth November, 1894. BniiK-, Jolinston, & Co $172,800 00 J. Munn & Co. 345,000 00 Thor!)iirn & Ttssior 90,840 (K) §009,240 00 !! i W. H. O. 13. Union Bank of Newfoundland Baiiif, Johnston, & Co $39 0(;i 00 "-r:^*^'! 1S37JSS J. Jiunn & Co q H-^i nn Thoibum & Tossicr :..:" ic;i42 00 $2o3,607 00 B-W. H. C. 13. Union Bank of Newfoundland. Liability of Directors as Proniisso.s and Kndorstrs on RiII« Discountcl, 30th Novemix'r, 1803. ^"Uo.^c.s on Bills Baine, Johnston, & Co $ G2,4:U 00 7^7% 295,213 00 J. Mr.nn & Co 18 457 00 Thorbnrn & Tessier '. 10^024 00 $386,728 00 C-W. H. 0. 13. Union Bank of Newfoundland Liabih-lity of Directors as Promissors and Endorsers on Bills Discounted at 31st May, 1894. fr:!!"I'v'^?''r''°"' * ^'" « 1«."8-"^ 00 .1 MuAcn 105,.3S4 00 1 horbuiii & Tessier 38!724 00 $262.271 00 D— W. H. O. 13. Union Bank of Newfoundland. Liabilities of Dirooforx nu P...^„,: , »-. . Disconnted at .30th Xo"!"!;., 1.94 ™ ""' ^'"'"■"■■^ "" ^'"^ na!".^V'f 'r ''""• * ^'° ^ 30,720 00 1 \P rS" 233,984 00 J. .Afnnn & Co 1 r. lyio m Thorbnrn & 'IWicr ....:;; JS So $291,835 00 ^ / J /> W.H. C. 27. 'nU.uen^ s/re...y ^,,a/y. /./.... ,/^^,/,, ,,,,,^^^^ ^^/^^^^^ Balance at t-ml of l«7o. 1870. 1877. 1878 1879. 1880. 1881. 1882. 188:i. 1884. l?12,(K)0 (K),Balaiue at in.i „i •{8,(HH) (K)! 44,(KM) (M)! 44.(t(K) ()0; .J(t,(>(K> 00' .32,0(K) 00; 48,(KKI 00 •IGOOO 00 70,0(H) 00-' ()2.(K)0 00 18SG., 1887., 1888., $.32.(X)0 00 70.00() 00 70,(K10 oo 84,000 (Kl 1*^^ i 98.0(H) (M) l^X' ; 98,000 (K) li^l'l i 98.300 00 1^- ! 28,0(Xt (K) !**•« .-..I 84,000 00 l*'^ I 98,000 00 Union Bank of Newfoundland. W. H. C. 28. y^. f^dHUf: 31 Kf May 18.1.T .... " ' 18r>G 1*37 18.>8 18 . 187(5 . 1877 188;j ias4 18A3 . . . . 1888.... 1889 . . . . 1890. .. 1892.... 189;{ ic, 1 1894 .... to Capital £'.38.000 S. k I.. .<40,0(X) (50,(XK) (58.00.(XH) 5o,0 GO.(HM) 280,(KiO 300,(HH) :^?o.ooo H40.0(K) •■{(KMHH) 32' .000 I ! S. p. 9. Exchange Account Due to riiioii l{ank .il Lmulon Di:e by Bank of l.i\ii|MM)l f Bills of Exeliaiigf on hiiiiil Coninii.vsioii LiviT|M)o| ."idO Loiuloii IDK) Add (.•i)niini>Hioii Si; !Stainp!< 70.. 150. UI|)S .... .•J7,;r>i» 41 1,041 m 20 pt>i cent. At Credit of Aec-oiint . Colonial Exchange At Ciedit <>( Account Due by Coric>|)oiid('nt8 108,42.> 80 Col. & .Vnin. Bills of i:\chan<,'e .. .'J4,'4(J(J 42 Col. & Anin. Investments 1,1(I4.8(X) OO li per cent. Interest At Ci-edit of Account Due on Current Aecoinit Due by Coninieici:d Bank of Xfld. Duj by Bank of Liverpool Due by National Bank of Commerce Vvi: on Investnieuts at 4 per ceut. . " a per ceut. . b per cent. . Due to Union Bank of Loudon . . . liebate on Local Bills DiscouiUed. . 1,247,092 22 Less Charges Accou nt. Net Profits for the year Balance at I'rofit and Loss Account viz.: at cietlit on ."Jlst May, 1803 aiid^ on Nov. 30th 1893 account Ellershausen Divulends $ ;-4j20 00 """"s i:i.(>80 00 '^f'^fivt' 20.0(K) 00 Continj^ent Account. . . ;iO,00() 00 I'tofit and Loss 7,.'}] 9 79 31st May, 1804. $12.';,719 79 2,r)00 00 5.822 84 §9,244 (53 5,927 52 ?129,.">(J1 (J9 :«.4(tl :u 9L1G. .3.1 18,232 07 1,G80 m 19.912 07 34.024 ■'>8 2(5,279 92 18,715 :iS 00.021 19 23,188 29 5(J9 83 KK) 00 450 00 1,49.3 .33 4,048 32 1.575 00 121,445 90 $ 14,712 51 7,5(>4 .>4 8,322 84 113,123 12 135,400 17 24,a->2 53 110,547 (54 15,172 15 $125,719 79 /. O. S. p. 19. '^%fHeJ. /Jei/ij/fiier/ /le-m /y/^ 3t whidii Tniiwrt'i-rfil. To whom Transfened. Xo.of Shaivs. L.vdiii (u'rli-udc Avre .Mary J. Pcndcrpist 1 1 5 d... James I). Hyiin 1 1 Miiiy .Jiiliii Aviv do. 2 Kst. . Miii)iiiii;<^ Annie Lawlur 3 Jimifs S. l'itt>' John T. Gillard 5 •liiiiifs .lolliffe Koln-rt J. Moore 2 Jiinu-s S. I'ittn Jos. I. Little. Trustee 10 Kst. K. .Mnlior W. V. Whiteway 10 do. Catherine .\. Whiteway o do. Mary E. Whiteway 5 Est. Eiijii-nii's Unrvey Patrick Kennedy 20 Jiis. S. Pitt * Grace D. J'arncll 6 do. Jos. I. Little, Trustee 2 Mary Ciimi'lu-ll, Ad'ux. Mary Campbell 18 I'ioiCf I'lu'lan xV. G. .Smith 1 Mary ( ninplK'H Jas. Carter 8 do. W. Pilot, Trustee 4 do. Thos. J. Kou-h 6 Julia Kilii'jjix'W Henry Cooke 2 Jas. .S. I'itts Ellen Brownrig*'' 5 do. Jane McKay 2 do. Denis (iaiway 2 Est. Isabella .Vlfxaiulor A. E. C. Bayly 4 James 8. I'itts John F. Power 3 John T. Gillanl George J. Keough 1 do. do. rnistee 1 Clara Emerson, Execntriv A. G. Smith 7 A, G. Smith K. IL Taylor 8 William Dickinson do. 1 Pierce Plielan E. P. .^lorris 2 do. A. G. Smith 1 J. T. Gillard John J. Ilennessy 12 o. 8. P. le. By whom Tiaii»ftm-cl. j To wh..iii I'lan^f.-iif.l. '\. ( E«t. Jos. Crowdy do. L. PaikiT & JiiH.F. raik.i do. do. Jaw. S. I'ittii do. do. do. Bndgc-t MiC;iath. Ex. Est. Laiini llavMard do. * do. do. do. do. do. tlo. do. do. Jas. S. Pitts Fii'd. C. W. Ilavwaiil Est. Eugt'iiius liaivey do. Jas. S. Pitts do. . Est. t3iigoiiiii« Harvey do. Est. H. G. II. Gill do. Est. Jos. C'lowdy Jami's Haiid Ilattio Waddeii John 'I', (iillaid John J. ()' i-illv Geo. (rUeillv ■ L. Paikii ■ Jas K. Paikir Bridget .Mi(iiath Uol)i. J. Mnoir Jan. O'Hiieii nnie Chincy Biidtrit .Mt(;iiith Anna li. Iltwitt Harrison l{. Ilayward do. Trunfee tlo. do. Wm. A. Ilayward Julia .S. Siiiiins A. S. Haywarrl Louisa Ilayward, Trustee F. C. \V. Mayward A. 8. Ilaywarfl and F. C \V. Ilayward, Kxors John J. Heniiessy Jas. Carter do. John J. Ilcnnessv J. O'Fhdu-rty, Kxr., K. ()' Flaherty. Ex. do. do. " John Anj^cj Elizaheth O'Flahcrtv S. MilK-y Nicholas Walsh 11. M. McNeil Jas Gordon John T. (Jiilard Annie Clnnev o. of SharvH. i> 6 L> lu o 2 8 i> !i 2 2 2 2 2 2 2 I 2 8 1.-. 2 2 10 10 4 2 4 5 2 40 5 6 0. S. p. 19. By whom 'rraiiKfcrri'd. John T. Colliiif. Fm. II. G. II. (Jill •'lie. K. riiiki r Daiiiol Miini(H' Arthur T. S. IlavHintl Jnnies S. Pitts Jas K. I'jiikii- E«t. Liuiia Ilitvuard do. Junti'!*. F. Parki-r (lu. Est. II. G. H. (;ill tlo. EHt. I^aiira Ilavwaril JohnT. (iilhirll do. Elizalnth S. (.ivvtn Eht. H. (;. H. (iill John T. Gilhird do. Thomas Shortall, sr. Ent. Jo8. Crowdv do. Floia II. CJrowdy Est. Jos. dowdy Jne. Carter John T. Gillard do. do. Pierce Pht-lan Est. Jos. C'lowdy Est. >Ius. Burdon, sr. da To whom Trnnsft-rrwI. No. ofShan-s. J. Thoifun Collini) Jhh. I). Kvan Jmh. S. Pitts do. Jns. .J. C'rowdcll John J. Ih-nni'ssy John Crotty Tol)"in II. H. Ilayward. Trustee •Mary .Vnn Fitz<,'»rald Hannah .M. Mitcholl John T. (iiihnd John J. IIinni'Hsy Daniel A. Uyan " •John J. Iliiini-ssy Kenneth H. Pr.iwse H. II. Taylor Est. .loK. ( 'rowdy John J. lUnnessy EHen Mrownripfjf Jane .McKay Thomas .Shortall. jr. James Haw John .J. HennesHy James Haw Henry .Scott Mary O'Morry John Ledingham, Trustee Georgi' J. KeonSSyy> y/ PiiokjgTdphic Sciences Corporation 33 WEST MAIN STREET WEBSTER, NY. 14510 (716) •72-4S03 S •t>^ [V V K\ ^ ■M %^ X O. 8. P. 19. pi ] Hy whiHii Tfiiii«irciri>(l. ToHh..n. •|'n,„«f..,-,vd. Xo. «f ti|,H,v, Eft. .Ins. Burtk-u, St-ii. do. da da do. da do. Est Jos. Ci(»w(lv John T. Gillatd' Ja8. S. Pitts Est. William Stirling Est. Jos. C'rowdv do. ElizalK'th OTIiihcitv, Ex .T. 0'Flr.!u..ty, Exr John T. Gillnrd James Thomson, Trustee Est. Jos. dowdy do.&G.W. Hill, Timtees Est. J. J. Winsor Wm. Dickinson Est. J. E. Florence John T. Gillard Jo8. 1. Little, Gnardian A. P. Dcarin John Burden Keiuieth Burden Clam Burdiii Elizabeth Bin-din Henry & Kenneth Burden James & John Burden Elizabeth & Clara Burden M. Harvey Wm. Fleming do. " Anna .AI. B. Ledinjrhan John J. Kearney Wm. Fleming liznbeth O'Flaherty Wni. Fleming Anna Mather Mary A. Bradshaw Sophia Bazalgettc Mary Winsor Richard 1)h yer do. John Angel A. F. Dcarin J. T. Gillard 2 2 2 2 1 1 1 5 3 6 10 3 20 2 12 2 12 3 5 5 3 33 3 i Exchange Account Due to L'liioii Bank of Lomloii Due by Bank of Liveii)<«)l $ 40,OSO i>2 Billd of Exclianjje on hand l()•.^i307 77 Commission Stamps .... 20 ikji- cent. Liverpool 1070 200 Lo'-.ilon 1.3.10 190....!. Add Connnission and Stanvw At Credit of Account Interest At Credit of Account Due on Cm rent Accounts Due by Com. Bankof Xewfoiinillaiul T)uc by B.uik of Li .t !p..oi Due on Investments at 3 per cent. . ** 4* i« o per cent. . Dne io Union Bank of London 1,800 00 Due to National Bank of Commerce 2!600 00 Itebateon Local Bills Dijicounted. . 6,080 00 Colonial Exchange At Debit of Account Due by Coiiespondents 32 7.12 47 Col. & Amn. Bills of Exchanije . . 2.042 05 Col. & Amn. Investments ... 511,800 00 Ij per cent, on 540,594 52 Loan Chni-gc8 Account Balance at Credit of Profit and Lo.sh Account 30th Jioven^lH-r, 1894. O S. P. 20. *255.279 03 151 ..->88 3J) 10.3,091 20 20,7;W 25 2,8)0 00 23,5r)4 25 30.919 94 § 7,:«il 69 29,445 73 34,989 42 671 90 50 00 2.7.08 32 75 00 68,040 37 10,480 00 57,500 37 5,140 76 8,198 92 64,926 0(J 13,345 08 51,580 38 11,186 95 40,.393 43 7,31J 79 $ 47,713 22 K~^ w^i^>ifnm W .1 C. S. p. 21. Union Bank of Newfoundland. Mem... .howi..., to...l for .li,.ri.„..i,... as ,.., „., ,i., m,, M»j. :J1m 1893, Interest Accoimt « ,, " •' Col. K.vch«„;.e Account ... [ t ^0 or -^ I>itinmni.son.\euV,„kCitv.liy.,- cent. Honils) • ' Contingent Account onnnn nn r-u«.hol.l lVen,ises Water StV;H.; .' i i .?JS g^ Lts8 : — Charfercs Account o- or-d o. Bnci .1 Doubtful Debt Fund. .': ::;; ig^ It t 1 1 T. „ , ^ ''^ P'^ofi^ for the rear trom last ^-ear Add Amount taken from Rosen c Fund Total for Distribution 1.S0.J. ?1C8,410 78 •>4,(>!):j 93 223,1(4 71 191,888 ol 31,216 20 6,428 43 37,G44 G3 40.000 00 ^ 77,644 63 \, Exchange Account DiK» to I'liioii liaiik i)f Lomloii .... Due by Hank of Livfipoil $ 60.092 93 BJIU of Exchangi' on baud 19,533 27 Comniis:iioii Stainpii 20 per cent Liverpool UoG 90 Loiuloi> 1490 200 (^miuiKsion and Stainpn At Crcd't of Account Colonial E.tchange At Credit of Account Premium on Investments Due by Corri's])ondcnt8 104,443 92 Col. & Amn. BiIIh of Exchange . . .30,700 00 l/t.!. & Amu. Investments 1,949,800 00 li percent. 2,0!J4,943 92 Interest At Credit of Account Due on Cunuiit Acccunts Due on l'nio>i H-ink of Lonrion acct. Due on Bank of Liverpool do. DuecjvNationalBankofCi mmcrcedo. DueonCom.liankofNewioihidlandilo. Due on Investments at 4 per cent. . . . " " 5 jier cent. . . . ** " 6 per cent. . . . Lotw Kebate on BilU Discounted . . O. 8. P. 26. Le«s Charges Account . Balance at Credit of Profit and Ixiss Account 31 8t May, 1893. I 58,202 38 79.626 20 21,423 62 4,284 76 2,442 00 1342 76 26,014 85 31,211 82 40,000 00 71,211 82 31,274 92 74,663 49 9,023 58 580 00 3,000 00 1,500 00 642 45 6,999 99 7,281 65 1,675 00 105,166 16 4,550 66 f 2V,a57 61 39,937 67 100,615 50 168,410 78 27,268 24 141,142 64 61,112 36 $202,264 90 nrasn TSWW X r. C -^ as. p. 36. Union Bank of Newfoundland. ' ■ . BONOS. rjr% 200.000 p„.c.hp.., a... „,,,. 11,:;^,:^^ •-• '-"'• » ^ , , '•' •' 200.000 ,..M;:.:;;"'.^;;:"-'^;t* ^; \ \-^ i^;^-,: b.;,;.;:*'""-^ * -•"^' ^ «o No?. 18!)4 . ; •^•''' ^^- "*•" * <>*•«••. ^^ i5o.()oo^i;*a^i.S;';;;-;;;''/ti^^^^^ 100,000 ,.„,^i,„,.,, „^.^. j_^,,^, s.!i.iJvbv 1^' '■'■'"• ""'"'" 50.000 ,^:iS:::^s:^^ ; ....... N. York, Chic;s;.Louis- i;t"Gold B;ndl'""'''^ ^^''^ '"^ <>sn m*^ . ■* !^'• cent. -=0,000 p„„H«.,^ij,,.^,^^^,^ .Vov. 1803 ; "••••■•■•.••■■•: " 1.106 34 2,502 !U Low on Bonds Sold ., . ■" ^ $27,000 .-.:; W. W. W. I. I.IAIiilJTIKS. To l'ri|iricl(ir» ('n|»iiiil T"» Ki'«rvf Ftiiul Tu Profit & l^tMC .....*; To Bank Ndiin in circiitntinti •••»••••< I • • • • • < 4r>«j,ooo 00 320.000 00 :io.i2."> :«) 714,873 (K) To Duo l)V Hunk, imluilinsr lii'iKisitu tit intt-ivKt. |iayiil)lc hi Jnnanry I ., ^- ,.y- .jj, ana July only, nn rt'ct'iving lo iliiyt noti i*.^^ . \ ^•''*'*»" * ^^ f4.l98.fi05 45 ^ s ASSETS. By S]M>ctc in vnult of the Bank 4 % 94,19G 4i» By Noti'sofotlu-r Bank* .3,9a> 00 By Bill* l)y Bai.kn und fumls nvuilable in 15 days i., 574.300 07 Bjr Baok Pirtnisov, Iron Jnfc* aud Furniture . 16,000 00 $4,108.60') 45 W. B. GKIKVK, ROBERT TIIOUBURX, W. J. S. DOXXELLY. f \ 3 t « I v^*y .1 \, >