FACTS, FAILURES, AND FRAUDS : 
 
 FINANCIAL, MERCANTILE, CRIMINAL 
 
 BY 
 
 D. MOBIER EVANS. 
 
 LONDON : 
 GKOOMBEIDGE & SONS, 5, PATEENOSTEE EOW. 
 
 HDCCCLJI.
 
 LONDON: 
 
 *5wJ? 
 
 THOMAS HARRILD, s^jfL^ SALISBURY SQUARE, 
 
 STEEET.
 
 ^Y 
 
 MFORNIA 
 > fiAAIA BAKBAKA 
 
 TO THE READER, 
 
 THIS book has been on the anvil of thought two or three 
 years. During that period it has assumed protean shapes j 
 the practical results will be found in the succeeding pages. 
 
 Collecting, as is my custom, from time to time, everything 
 of importance bearing upon topics financial and mercantile, it 
 may be readily imagined that I should not allow to escape the 
 extraordinary revelations which have marked the last decade ; 
 more particularly the Facts, Failures, and Frauds so pro- 
 minently portrayed in the progress of commercial life. 
 
 The first notion was not to have compressed these, for the 
 most part, painful narratives into a single issue, but to have 
 extended them to a series, the materials at command and in 
 store being sufficiently ample for the purpose. But on 
 reflection, and after a great mass of matter had been pre- 
 liminarily arranged, my time having meanwhile become more 
 fully absorbed, that determination was altered, and on con- 
 sultation with my friends, the Brothers Groombridge, it 
 was agreed that one comprehensive volume should be the 
 medium of communication between me and the public. 
 
 The work, notwithstanding it has entailed a considerable 
 amount of labour, and no small share of expense, is not put 
 forward as a pretentious or infallible production. To some of 
 the views objections may be taken ; and individuals whose 
 conduct may have encountered criticism, will, probably, be 
 tempted to think that they have scarcely merited the con- 
 demnation. But as in the majority of instances the verdict
 
 17 TO T1IE EEADEE. 
 
 of a Civil, or the sentence of a Criminal, Court has clearly 
 adjudged guilt and awarded punishment, any vindictive 
 prompting cannot be supposed to have dictated the opinions 
 advanced. 
 
 One great object, and one alone, induced me to engage 
 in the task of selecting and arranging these remarkable 
 histories, viz., to bring together a complete record of the 
 astounding frauds and forgeries, with other attendant cir- 
 cumstances, -which have of late so frequently startled the com- 
 mercial community from their propriety; and hence, -while 
 endeavouring to diversify and render interesting each par- 
 ticular narrative, no chapter or section is presented without 
 corroborative evidence of the internal truth of its contents. 
 The trials, and other legal proceedings, possess a value beyond 
 the mere interest of the moment. Collated and published in 
 this shape, they will be always at hand to establish dates, and 
 other minutiae that may arise, and be available either for the 
 publicist, moralist, or statist, who may desire to consult 
 them at any future period. 
 
 The work, in some degree, though presented in a more 
 attractive guise, may be considered as supplemental to the 
 Commercial Crisis, 1847-48, and antecedent to the History of 
 tlie Crisis, 1857-58, now prepared, and about to be brought 
 forward. The whole of these volumes will exhibit, in a more 
 complete form than already exists, a vast mass of important 
 and interesting information connected with the course of trade 
 during the last twenty years. ' 
 
 X LA>*E, LOJTBABD STE.EEC. 
 January 12, 1859.
 
 CONTENTS. 
 
 CHAPTER I. 
 
 "HIGH ART" CRIME. 
 
 Its Inatiguration, Development, and Rapid Progress .... 15 
 
 CHAPTER II. 
 
 THE RISE AND FALL OF MIS. GEOKGE HUDSON, M.P. 
 
 The Railway System Its Early Introduction and Progressive Expansion 
 State of Business anterior thereto The Appearance of Mr. Hudson on the 
 Scene, and his Assumption of Power in Railway Circles Subsequent Dis- 
 closures, and his final forced Retirement ..... , 6 73 
 
 CHAPTER III. 
 
 WALTER WATTS AXD HIS FRAUDS UPON THE GLOBE ASSURANCE OFFICE. 
 
 The Age of Appearance Watts's magnificent but brief Career His Success as 
 a Man of Fashion and Wealth His luxurious Mode of Life, alleged 
 Sources of Income and Theatrical Speculations Failure of the Latter, 
 and the Discovery of his gigantic Frauds The Investigation at the 
 Globe Assurance Office The Trial of the Delinquent, and his Suidde in 
 Newgate 
 
 CHAPTER IV. 
 
 THE DELINQUENCIES OF MESSRS. STRAHAN, PAUL, AND BATES. 
 
 The Surprise created by the Failure The Blow to Confidence in the Private 
 Banking Interest The Antecedents of the House The Position and 
 Relations of the Partners Social Standing of Mr. Strahan, and the Reli- 
 gious Habits of Sir John Dean Paul Distressing Disclosures respecting 
 the Appropriation of Securities The Bankruptcy of the Firm, and sub- 
 sequent Criminal Proceedings against the whole of the Partners 106 163
 
 n CONTESTS. 
 
 CHAPTER V. 
 
 JOSEPH WIXDLE COLE AND THE DOCK-WARRANT FRAUDS. 
 
 The Origin of the Frauds The Antecedents of Cole and his Associates in 
 Business His Successful Operations and Extension of his Engagements- 
 Connection with Davidson and Gordon Failure of the respective Firms 
 The Discovery of the Transactions with Messrs. Overend, Gurney, and Co. 
 The Position of Mr. David Barclay Chapman The Bankruptcy of 
 Joseph Windle Cole, and of Davidson and Gordon The Apprehension of 
 the Former and the Flight of the Latter The Examination respecting the 
 Issue of Spurious Warrants The Disappearance of Maltby, the supposed 
 Proprietor of Hagen's Wharf Trial and Conviction of Cole Death of 
 Maltby Subsequent Arrest of Davidson and Gordon Their Trial and 
 Imprisonment 154 225 
 
 CHAPTER VI. 
 
 THE FRAUDS AND FORGERIES OF JOHN SADLEIR, M.P., AND LATE LOUD OP 
 THE TREASURY. 
 
 His History and Antecedents Appearance as an Irish Member Abandonment 
 of Practice as an Attorney, and Entrance into the Arena of Railway Excite- 
 ment His Popularity as a Man of Business Acceptance of Seats at the 
 Boards of various Companies Connection with, and ultimate Elevation 
 to, the Chairmanship of the London and County Bank His Political 
 Career, and Appointment as a Junior Lord of the Treasury Resignation 
 of that Position, and his ultimate Decadence His Operations in the 
 Encumbered Estates Courts The Difficulties of the Tipperary Bank, and 
 the Keturn of its Drafts The Discovery of his Forgeries, and the Involve- 
 ment of his Friends His Suicide, and the subsequent Eevelations respect- 
 ing his various Crimes ........ 226 267 
 
 CHAPTER VII. 
 
 THE ROYAL BRITISH BANK ITS SUSPENSION AND GENERAL MISMANAGEMENT. 
 
 Its Organization and Proposed Course of Business The Attempt to develop 
 the Scotch System Parties identified with its Formation The Non- 
 success of Business The Attempts to Force the Popularity of the Establish- 
 mentOpening of Branches in various Districts The Promoters of the Un- 
 dertaking, Mr. John M'Gregor, M.P., Mr. Cameron, and Mr. Mullins Sala- 
 ries paid to Officials The Discount Operations of the Bank The Debts of 
 the Directors, Manager, etc. Issue of new Shares Mr. Humphrey Brown's 
 Account Difficulties of the Bank Loss of Capital, etc. The Operation of 
 the Winding-up Clause of the Charter The Struggle to Preserve Position 
 The Ultimate Decadence of Business The Suspension in September, 1856 
 The Contest for the Estate between the Court of Chancery and the Court 
 of Bankruptcy And the Prosecution and Trial of the Directors . 268390
 
 CONTENTS. vii 
 
 CHAPTER VIII. 
 
 THE CRYSTAL PALACE FRAUDS AND FORGERIES, PERPETRATED BY WILLIAM 
 JAMES ROBSON. 
 
 The Commission of High Crimes Their Progress and Influence Early His- 
 tory of Robson His Juvenile Tendencies Appearance in Business Life 
 Early Occupation His Humble Resources and Literary Aspirations 
 Efforts as a Dramatist, and Career in the World of Letters Subsequent 
 Engagement at the Great Northern Railway The Development of his 
 Taste as a Man of Fashion, and his Indulgence in Extravagant Habits 
 The Transfer of his Services to the Crystal Palace Company His Strict 
 Attention to Duties and Business Habits The Enlargement of his Sphere 
 of Acquaintances, and the Expenditure necessarily involved His Pro- 
 motion in his Office, and the Confidence placed iu his Integrity The 
 Confidence of Mr. Fasson, the Head of the Transfer Department, obtained 
 and subsequently abused The First Step in Crime The Style of Robson's 
 Living The Extension of his Frauds, and the Modus operandi Acci- 
 dental Discovery Flight Capture Bankruptcy and Trial . 391 431 
 
 CHAPTER IX. 
 
 THE GREAT NORTHERN RAILWAY FRAUDS AND FORGERIES BY LEOPOLD 
 REDPATH. 
 
 The Specialties of Redpath's Case His apparent Honesty and Philanthropy 
 Deep Hypocrisy in his Career of Crime His Early Entrance into Life 
 General Occupation and Tendency His First Progress and Marriage 
 Connection with the Peninsular and Oriental Steam Company His Sepa- 
 ration from that Office Launches out into Business as a Ship and Insurance 
 Broker Fails, and is made Bankrupt Eventually emerges into Active 
 Life again, and obtains Employment in the Transfer Department of the 
 Great Northern Railway Company His Duties and Attention to Busi- 
 ness He Succeeds Mr. Clark, the First Registrar His Style of Living 
 Vaunted Success as a Speculator and Dealer in Reversionary Interests 
 Hi Original Forgeries Extended Princely and Munificent Charity 
 Patron of the Principal Benevolent Institutions Excessive Kindness to 
 Poor and Distressed Individuals His supposed Wealth and Resources 
 The Detection of Robson leads to Suspicion Proposed Examination of 
 Books, and his Refusal to Entertain the Proposal Threatened Resignation, 
 and Ultimate Attempt to Decamp Flight to Paris Return, and Surrender 
 to the Police Second Bankruptcy Trial and Conviction . . 432 483 
 
 CHAPTER X. 
 
 THK BULLION ROBBERY OX THE SOUTH-EASTERN RAILWAY, AND THE CHEQUE 
 FORGERIES ON THE METROPOLITAN BANKS. 
 
 The Bullion Robbery detailed Pierce, Agar, and Burgess Their Connection 
 and Mode of Operations Saward and Anderson The Association of
 
 Vilt CONTENTS. 
 
 Savrard witn each Scheme of Depredation Motives of Crime and Course 
 of Development Difficulty overcome, and the Plan for the Abstraction of 
 the Bullion accomplished The Robbery effected while the Train iii 
 Motion The Prize seized and conveyed away Sale of the Spoil, and the 
 Introduction of J. Townsend Saward Partition of the Proceeds of the 
 Robbery Committal of Agar for another Offence The Revelations of 
 Fanny Kay, and the Apprehension, Trial, and Conviction of the Prisoners 
 The Process of the Cheque Forgeries Connection of Saward, although a 
 Barrister, with Thieves The Artistic Arrangements for carrying out their 
 Frauds The Disbanding of this Horde of Criminals The Efforts of the 
 Police to trace their Career The Apprehension of Saward and Anderson ; 
 other Auxiliary Accomplices Their final Trial and Sentence of Trans- 
 portation ...... 484 595 
 
 CHAPTER XL 
 
 THE LONDON AND EASTERN BANKING CORPORATION THE FRAUDULENT 
 TRANSACTIONS OF COLONEL \V. PETRIE WAUGH AND ME. J. E. STEPHENS. 
 
 The Formation cf the London and Eastern Banking Corporation Species of 
 Business conducted The Parties who took the Lead in the Transactions 
 The Character of Operations intended The Divergence from the regular 
 Path into personal Advances to the Directors and Managers The Promi- 
 nent Parties in these Affairs were Colonel W. Petrie Waugh, a Director, 
 Mr. Stephens, the Manager, and Mr. Black, the Secretary The Absorp- 
 tion by the former of nearly the whole of the Capital of the Bank The 
 Decadence of Business, and final Liquidation of Affairs Flight of Waugh 
 and Stephens The Bankruptcy of the principal borrowing Director and 
 Manager The Bankruptcy of the Bank, and the Order for Winding-up in 
 the Court of Chancery ........ 596630 
 
 APPENDIX. 
 
 The London and County and the Tipperary Banks .... 631648 
 
 The Proceedings in Bankruptcy of Messrs. Davidson and Gordon . 648 701 
 
 The Times-Chapman Controversy, arising out of the Investigation into 
 
 the Affairs of Messrs. Davidson and Gordon and Mr. Joseph VVindle 
 
 Cole . . . .... 701727
 
 FACTS, FAILURES, AND FEATJDS. 
 
 CHAPTEE I. 
 
 "HIGH AET" CEIME ITS INAUGURATION, DEVELOPMENT, 
 AND BAPID PEOGEESS. 
 
 THE delight experienced by persons of a sensitive humanity 
 at that alteration in the criminal code, by which death waa 
 declared too severe a penalty for the crime of forgery, must 
 have been not a little qualified by the increase of dishonesty 
 that has followed the mitigation of the law. While, on the 
 one hand, the dread of that punishment, which, whatever 
 specious argument may be advanced to the contrary, will 
 ever be regarded with the greatest awe by the multitude, 
 has been cancelled from the list of moral obstacles ; on the 
 other hand, a variety of circumstances favourable to the most 
 reckless speculation have arisen to remind the world of the 
 old days of the South Sea and the Mississippi speculations, 
 and a generally diffused taste for luxurious living has proved 
 a constant incentive to profuse expenditure. With tempta- 
 tions to crime infinitely multiplied, and with impediments 
 reduced to a minimum, it is no wonder that the last twenty 
 years afford materials for one of the darkest pages in the 
 commercial history of this country that many have arrived 
 at a "high art" in guilt, while "high arts" of a more 
 innocent kind have been manifestly on the decline. 
 
 Without any great violence, all the incentives to commer- 
 cial crime may be brought under the one common rubric the 
 desire to make money easily and in a hurry. The apprentice- 
 boy, who robs the till of a few shillings in order that he may 
 enjoy himself on a particular evening; the gigantic forger or
 
 2 FACTS, FATLTJBES, AI7D FRAUDS. 
 
 swindler, who absorbs thousands that he may outshine the 
 people who live and breathe around him, are so far in the same 
 predicament that they cannot endure any delay to the gratifi- 
 cation of this common passion. Apart from these, but still 
 actuated by the same desire, is the reckless speculator, who 
 would risk everything in the hope of a sudden gain, rather 
 than toil safely and laboriously for a distant reward. The 
 speculator may, of course, be a perfectly honourable man, who 
 would instinctively shrink from any deed that would invoke 
 the interference of the criminal law ; but if fortune is adverse, 
 he is on the high road to wrong-doing, and, moreover, there 
 are many crimes not enumerated in the statute-book that are 
 still heavy sins against the dictates of morality. 
 
 The bubble period of 1825-6 the oldest within the 
 memory of the present generation and the money crisis of 
 1836-7, appear rather as forerunners to the events that have 
 more recently shaken the world, than to be new links in the 
 series. It is with the railway mania of 1845 that the modern 
 form of speculation may be said to begin, and the world has 
 not yet recovered from the excitement caused by the spectacle 
 of sudden fortunes made without trouble, and obscure indi- 
 viduals converted, as if by magic, into 'millionaires. Long 
 will Mr. Hudson be remembered as an instance of the celerity 
 with which a reputation could be won and lost at that 
 eventful and remarkable epoch. In the early days of the 
 mania, his name seemed to possess a talismanic value ; the 
 mere fact that it was associated with any scheme being alone 
 sufficient to cause a demand for shares, and a consequent 
 rapid advance in prices. When, on the other hand, the dis- 
 covery was made that this idol of the money-market had been 
 guilty of the grossest mismanagement, causing a false appear- 
 ance of prosperity by the presentation of deceptive accounts, 
 then every one was ready to assail the object he had so 
 blindly worshipped. However, notwithstanding the great
 
 TACTS, FAILURES, A>*D FBATJDS. 3 
 
 show of virtuous indignation that took place when the mis- 
 deeds of the celebrated Mr. Hudson were discovered, and he 
 was forced to disgorge part of his ill-gotten wealth, there is 
 no doubt that the generally diffused rage for speculation had 
 considerably lowered the standard of commercial morality, and 
 that many men perpetrated deeds they would have blushed 
 even to contemplate a few years previously. Those individuals 
 who were unfortunate enough to be exposed, must not be sup- 
 posed nearly to represent the whole amount of special delin- 
 quency committed during the speculative era, since numbers 
 of persons equally guilty, escaped public contumely, simply 
 because they had not the misfortune to be found out. 
 
 Eminently characteristic of the period is the extraordinarily 
 large scale on which ordinary crimes are planned, and, for the 
 moment, successfully carried out. From time immemorial, 
 clerks have been discovered embezzling the property of their 
 employers ; but when, save in the middle of the nineteenth 
 century, could it be supposed a case such as that of "Walter 
 "Watts would occur, who, not content with trifling peccadilloes, 
 successively opened two theatres with money surreptitiously ob- 
 tained from the Globe Insurance Company, and managed them 
 in a style of undisputed magnificence in the face of empty treasu- 
 ries. The career of Watts, and his melancholy end in Newgate 
 death by his own hand may, in part, be regarded as a symbol of 
 that taste for luxury, and that recklessness in the choice of means 
 to a desired end, which so singularly distinguish the present age. 
 
 Many, however, are the names who stand prominent in 
 the history of what may appropriately be termed " high art" 
 crime. "Watts's case was, in some measure, isolated, and 
 partook of the nature of an individual eccentricity; but the 
 failure of Messrs. Strahan, Paul, and Bates, and the punish- 
 ment with which their dealings were visited, commenced that 
 series of financial and commercial delinquencies, in which 
 persons of supposed elevated character were involved, that all
 
 4 FACTS, TAILTJEES, AND FBATJDS. 
 
 the received tests of respectability seemed to be of no avail, 
 and people literally could not tell whom they might trust. The 
 extensive delinquencies of J. Windle Cole and his associates, 
 the speculative career and suicide of John Sadleir, the failure of 
 Tipperary Bank, the explosion of the Royal British Bank, and 
 the subsequent liquidation of the London and Eastern Banking 
 Corporation, with the revelations of management, shook public 
 confidence in every direction ; and through the latter even the 
 better class of joint-stock banks were regarded with a transient 
 suspicion, through the misdealings of their misguided and dis- 
 honest competitors.* 
 
 In the deliberate forgeries of Crystal Palace shares, as 
 committed by Kobson, seem to have occurred a second, and 
 if possible more elaborate, edition of "Watts's case. A clerk, 
 with barely an income to support a respectable station, was 
 seized with a desire to become a gentleman of fashion and 
 fortune a Maecenas to whom artists might look up with 
 reverence. Kot content with the fame of a dramatist, he 
 assisted managers in their theatrical speculations ; his style of 
 living was of a kind that upholsterers still speak of him with 
 admiration for his taste and powers of arrangement. As a 
 strong and severe contrast to Robson, who by his specious 
 frauds forced himself into the character of an elegant man of 
 pleasure, stands Leopold Redpath, the fabricator of Great 
 Northern shares, which provided him the means of assuming 
 the position of the man of heavy respectability. Serious people 
 might reconcile themselves to the fate of the gayer delinquent, 
 and even enlarge on the consequences of worldly dissipa- 
 tion ; but Redpath, the model of morality and charity the 
 adopter of children and the dispenser of wealth to deserving 
 
 * While these pages are passing through the press, the delinquencies 
 connected with the administration of the Liverpool Borough Bank, the 
 Western Bank of Scotland, and the Northumberland and Durham District 
 Bank have been brought to light, and tend to confirm the views expressed 
 in tbis introductory chapter.
 
 FACTS, FAILURES, AVD FRAUDS. 5 
 
 institutions was a blot discovered where it was least expected, 
 and, as might be anticipated, occasioned proportional surprise. 
 
 Tho Englishman may find a melancholy consolation in the 
 reflection that the complicated tale of imprudence and its 
 results, of crime and its punishment, is not confined to his own 
 country. America has her corresponding infamies in the shape 
 of the Schuyler delinquencies, and the lengthened chain of fraud 
 and dishonesty reaches as far as remote California, with the no- 
 torious defaulter Meiggs, and the Antipodes, where the system 
 of false letters of credit has again been brought into vogue. 
 
 In this prefatory chapter it is intended merely to indicate 
 the cases of guilt that, in the course of this work, will be 
 attempted to be described in detail. The closeness with which, 
 one crime follows upon another, and the similarity of motive 
 that lies at the bottom of them all, will sufficiently show 
 that they do not represent the simple perverseness of 
 individual natures, but are so many indices of a depreciated, 
 and apparently bad, moral atmosphere that has of late pervaded 
 the whole of the commercial world. The fact stands self- 
 evident that the ruling passion is the grand desire to make 
 money expeditiously, for the purpose of gratifying luxurious 
 propensities, or of indulging in an imposing ostentation. The 
 artificial necessity for expenditure comes first, and the begin- 
 ning of financial crime is the attempt to make an appearance 
 which the legitimate resources of the adventurer in the game 
 of fortune will not justify. Other resources must, therefore, 
 be found, and thus fraud, forger}-, and misappropriation are 
 called into existence, with all their frightful and heavy legal 
 responsibilities. Indeed, unless the extravagant and pretentious 
 habits of the age are brought within inori' restrained limits, 
 the volume now presented to tho public, full as it is of the 
 painful records of dishonesty, will be only as a single page 
 in a vast and ever increasing history of the decline and fall of 
 mercantile morality throughout tho civilized world.
 
 6 TACTS, rAILTJEES, A^D FCATJDS. 
 
 CHAPTEE II. 
 
 TUB EISE A2TD TALL OF ME. GEOEGffi HUDSON, 1I.P. 
 
 The Railway System Its Early Introduction and Progressive Expansion 
 State of Business anterior thereto The Appearance of Mr. Hudson 
 on the Scene, and his Assumption of Power in Railway Circles Sub- 
 sequent Disclosures, and his final forced Retirement. 
 
 THE superiority of railway transit to other means of com- 
 munication is now so generally conceded, that no surprise can 
 be felt at the further indefinite demand for its extension. The 
 railways already formed constitute, in history, the record of 
 a clearly-defined period of transition one of those ever-recur- 
 ring cycles in which long suspense and needless delay in the 
 application and extension of scientific invention, has been 
 followed by the enthusiastic entertainment of new and novel 
 enterprises, terminating in a wild and general mania. What 
 the character of that mania was, most persons are well able to 
 remember ; viz., its early and bright phases which promised full 
 reward to all who engaged in it ; and its subsequent sombre re- 
 action, accompanied by disclosures which compromised high 
 names, and caused almost universal depression and distress. 
 
 Following the date when the superiority of the railway 
 became to be admitted, the period is arrived at which the most 
 vital conditions of success were neglected, and the circumstance 
 of directors, under the bias of temptations which they found irre- 
 sistible, were witnessed sacrificing to immediate gain the future 
 interests of their companies. By supplying the public with ficti- 
 tious data, and stimulating further outlays by a dispropor- 
 tionate return on investments, the resources of the old lines 
 were weakened through the endeavour to evade legislative pro- 
 visions for limiting profits ; boards entered on endless schemes
 
 FACTS, FAILURES, AKD FBATJDS. 7 
 
 for the creation of stock when shares were at a premium, though 
 the new enterprises might afford but small returns, and thus 
 diminish the general rate of profit derivable from trunks and 
 existing branches. The result was far more agreeable to indi- 
 viduals to whom means were thus afforded of securing high, 
 premiums on new shares than to those who purchased secu- 
 rities unduly enhanced in price as permanent investments, this 
 course of proceeding, in the way of financial management, lead- 
 ing to ruinous disappointment and serious national incon- 
 venience. Though the low price to which shares ultimately 
 fell was generally attributed to the injudicious location of 
 lines, the inadequacy of their traffic, and the exorbitancy of 
 their cost, all these are insufficient to account for that undue 
 depreciation which railway property underwent, and from which 
 it has scarcely yet recovered. For this depreciation reference 
 must be made to the means taken by proprietors to enable 
 them to divide among themselves millions of pounds sterling 
 in the way of premiums, to the creation of nominal capital far 
 exceeding the actual outlay, and to the exhaustive effects 
 resulting from the highest allowable dividends being paid 
 irrespective of legitimate receipts. 
 
 Amidst the efforts put forth for the construction of railways 
 in connection with the early lines, and the rise of new and rival 
 companies, which made it expedient for those of an older date to 
 endeavour to secure the advantages they already enjoyed by set- 
 ting about planning branches in different directions, without 
 any view, however, to a complete consentaneous system, may be 
 distinguished as standing out from these multiform contests 
 which led to irremediable sacrifices, the apparent evidences of 
 a certain dual energy and power, exhibited on a gigantic and 
 hitherto unparalleled scale, between tlio eastern and western 
 counties of England. The two grand branching routes of 
 southern trunk-lines proceeding northward, after becoming in 
 a manner interlocked in the great central belt, again emerge,
 
 8 FACTS, FAILURES, ASD FRAUDS. 
 
 by Preston on the one side and York on the other, to follow 
 but remotely convergent courses, the western line taking the 
 more natural route of traffic to and from Scotland, the other 
 tending shoreways to the most northerly headland this side 
 the Firth of Forth, and thence striking directly for Edinburgh, 
 thus bringing the south-eastern counties of England into con- 
 nection and separate relation with all the more northerly points 
 with which any extensive communication or direct trade 
 is supported. The energy of the impelling power by which 
 the extension of these links was promoted, is evidenced in the 
 rapidity with which the new works were undertaken and 
 executed. Now that resources have been more fully deve- 
 loped, and the industrial and trading interests of cities, 
 towns, and districts originally affected, have been, in the 
 course of things, adjusted, it would seem to the casual observer 
 that the construction of these lines was the mere realization 
 of sagacious and wise views on the part of those who 
 promoted them, when, in fact, a great majority owe their 
 creation to the most extravagant deceptions and the wildest 
 illusions to financial speculation rather than to any intelligible 
 appreciation of the practical bearings of railway undertakings. 
 The modus operandi by which the " secondary formation" was 
 brought about may be thus explained : The old and rich lines 
 became the trunk or stock of numerous offshoots, guaranteeing, 
 on a certain rate of dividend, the shares on extensions or amal- 
 gamations, thus securing for existing proprietoi's large profit 
 on the issue of shares at par when at a premium in the market. 
 Extensions at an end, or shares at par, no longer realizing a 
 premium, the first proprietors in the original line left their suc- 
 cessors to gather what they could from boughs stripped well 
 nigh bare, and these again left their successors exposed to the 
 full consequences of this successive addition to nominal 
 capital, and to increased obligations. 
 
 Perhaps it may have proved advantageous in the end to
 
 FACTS, FAILTJBE8, AND FBAUDS. 9 
 
 the general interests of society, that so much was left to be 
 accomplished by financial dexterity, vague speculative antici- 
 pations, and legislative enactments, which only confirmed 
 existing illusions, instead of a more intelligent appreciation of 
 the undertakings entered upon on the part of the public, and 
 which would have had the effect, by limiting their numbers, of 
 keeping England far in the rear of her present vantage ground. 
 It is evident that a certain amount of inherent selfishness, the 
 growth of too much isolation both of communities and indi- 
 viduals, had to be overcome before these great channels of 
 intercourse and traffic could be fairly opened, and the busi- 
 ness appropriately fell into the hands of those who were 
 chiefly concerned in obtaining an unfair advantage of the 
 almost unrestricted powers conferred by Parliament, and the 
 unguided and undisciplined enthusiasm of the public. 
 
 The principal individual who, in that almost Titanic period 
 of warfare, struggle, and accomplishment, eminently distin- 
 guished himself in connection with railway extension, was Mr. 
 George Hudson. His ability was exhibited in pioneering 
 new lines through every difficulty, in organizing fresh com- 
 binations, and, where the materials were yielding, and 
 unformed, adapting the parts of complex organization to one 
 another, thus affording new vigour to undertakings that would 
 have fallen short of their purpose, consolidating various inde- 
 pendent enterprises, that separately might have worked the 
 ruin of their projectors, and rendering available to practical 
 purposes an enthusiasm that would have wasted itsck' in 
 divided interests. 
 
 It was no wonder that the spirit of railway enterprise, 
 kindling, after her first great successes, point after point 
 throughout the kingdom, on touching with her magic wand the 
 city of York, should have found men ready and willing to 
 entertain the project of securing for that locality the advantages 
 resulting from this means of transit. Of this number was
 
 10 TACTS, FAII/TEES, AXD FEAUDS. 
 
 Mr. George Hudson, who at the time was simply a member of 
 the Board of Health, with no other position than that derived 
 from a life of continued assiduity, and who as a linen-draper, 
 had secured a moderate fortune, his family being respectable 
 and well-established in the county, having occupied for at least 
 two centuries an estate at Howsham. Mr. Hudson had reached 
 mature age, but he was to prove himself " the man for the 
 occasion," and was destined to operate, with no inconsiderable 
 influence, both in giving stability to those enterprises about 
 being called into existence, and in making the most of the 
 powers which Parliament, public confidence, enthusiasm, cre- 
 dulity, or any of the thousand and one conflicting motives 
 which came to support the movement. It was felt that the 
 city of York, if true to her own interests, must bestir 
 herself shortly in the matter, and to extend a railway into 
 the "\Vest Riding appeared to be the most obvious mode 
 of securing these facilities. Hudson had looked to the 
 history, financial and otherwise, of the railways then in exist- 
 ence, or forming, and was satisfied, from the first conception of 
 of the idea, that a railway running out in that direction, if 
 planned with moderate judgment, economically constructed, 
 and efficiently managed, could not fail to succeed. The com- 
 plex character of railway management, as compared with any 
 other enterprise, only served as an additional motive with him 
 to entertain the project. He was favourably situated, too, 
 for securing it public attention. In the municipal post to 
 which he had been nominated, he had shown to his fellow- 
 townsmen his capacity to appreciate the general interests of 
 the city, as far as they related to that department, and execu- 
 tive ability in carrying out improvements. Indeed, Mr. 
 Hudson's reputation for public spirit and practical efficiency 
 was slowly but surely rising. His name was already enrolled in 
 the Book of Fate for the highest civic honour that York could 
 bestow. It is possible that even to himself the golden mace
 
 FACTS, TAILUnES, A>'D FRAUDS. 11 
 
 of the mayoralty may have floated distantly in dreams, 
 but he could never have anticipated becoming "the almost 
 irresponsible monarch over a thousand miles of railway," con- 
 trolling the money-market of the kingdom, dispensing with a 
 word, creating millions of capital by a single fiat, and much 
 less that after receiving the homage of the titled and the 
 great, and being obsequiously listened to as a member of 
 the Legislature Hebrew and Christian bankers even ac- 
 knowledging by testimonials his superior potency it was 
 possible he could be "driven from the face of men," under 
 the ban of public opinion, through revenge for wounded self- 
 esteem on the idol it had so slavishly worshipped. 
 
 A public meeting was called by the promoters of the pro- 
 jected railway in 1833, at which Mr. Hudson was a prominent 
 speaker. He dwelt on the advantage to be derived from the line, 
 if carried out and completed, and adverted to the cheaper cost 
 of construction and working which experience and skill rendered 
 possible. This meeting was merely preparatory to others, at 
 which the various features of the undertaking, as suggested, 
 were vigorously canvassed; Mr. Hudson and his associates 
 presently resolving themselves into a provisional committee, 
 and diligently set about procuring all necessary information, 
 and sustaining the requisite surveys. At one of these meet- 
 ings, held towards the close of the year, Mr. Hudson electri- 
 fied his too apathetic auditors by subscribing to four or five 
 hundred shares an act considered the more venturesome, as 
 the very route of the line was, as yet, a matter of conjecture. 
 AVhen a route offering superior advantages to one which had 
 been surveyed was suggested, Mr. Hudson himself set out to 
 explore the neighbouring districts, so wholly had he taken 
 upon himself already the details of the enterprise. Advan- 
 tage was taken by Mr. Hudson, on this occasion, to ascertain 
 the feelings and learn the means of owners of property along 
 the proposed route, and to conciliate them as far as possible.
 
 12 FACTS, FAILURES, A>"D FRAUDS. 
 
 He enlightened landowners as to the value to be thus added 
 to their estates by the new means of access afforded their 
 tenants to profitable markets, and with such success, that the 
 opposition to the sale of the required sites rapidly disappeared, 
 and the proprietors who had seen prospectively only the inva- 
 sion of estates, and the destruction of immense masses of 
 property in the inns and appurtenances of a great highway, 
 became ardent supporters of the undertaking. It must 
 be added that " the appeal persuasive," was not unfrequently 
 the gift of certain shares in the line. Returning to York, he 
 met all the objections that were urged on the score of expense, 
 but there Avas abundant evidence to show that the public as 
 a body was not yet fully prepared for the change. 
 
 From the consultations that had been held, the surveys that 
 had been made, and the estimates that had been framed, the 
 scheme began to assume a more tangible shape, and recourse 
 was had to Mr. George Stephenson, who met the committee 
 by appointment to confer with them as to the route, con- 
 struction, and completion of the line. The contrast presented 
 between George Stephenson and George Hudson, who now 
 for the first time met together, was striking and impressive. 
 Stephenson, at the head of his profession, engaged in subduing, 
 by the aid of engineering science and the exercise of indo- 
 mitable energy, all the material conditions involved in the exe- 
 cution of the plans with which he was entrusted ; Hudson, 
 sagaciously watchful of all the means by which an enterprise 
 like that on hand might be rendered remunerative ; the one, in 
 spirit, manner, and the general tone and flow of his discourse, 
 exhibiting discipline, study, practice, and acquaintance with 
 the difficulties attending operations which others regarded in 
 a financial light ; the other, personifying the moving power of 
 every enterprise, by which those plans were vitalized shares, 
 loans, premiums, dividends. After glancing at the projects 
 which had been, with no little enthusiasm submitted to him,
 
 FACTS, FA.ILURE3, AND FRAUDS. 13 
 
 Stephenson quietly laid the proposed plans aside, and described 
 the lines of railway then in course of completion, or about 
 being constructed, so far as they affected, or were likely to 
 aifect, the present enterprise, and advised some further delay 
 until they could arrange a more complete connection than was 
 now possible with lines already in progress. 
 
 The committee accordingly deferred the execution of their 
 scheme, and set themselves to study the progress of those out- 
 branching lines to which Stepheuson had referred them. The 
 railways commenced in the south of England were seen, week 
 by week, pushing further north. A watch, too, was kept on 
 the neighbouring city of Leeds. Soon activity displayed itself 
 at a point calculated to excite the most zealous emulation. A 
 railway was about being constructed to run eastward from 
 Leeds to Selby, there to meet the Hull and Selby, and thus 
 not only securing for Leeds the traffic lying between it and the 
 mouth of the Humber, but the advantages which Hudson had 
 marked out for his own of a more close connection with the 
 south of England. The serious entertainment of that project 
 was taken as the signal of the Newcastle engineer, and no time 
 was lost in applying for the necessary powers to enable York 
 to connect with the North Midland, and thus to be brought, 
 by means of existing lines, into direct communication with 
 London. Several years had now elapsed from the origin of the 
 scheme, but meanwhile public opinion had been enlightened, 
 and though many were inclined to view the railway as unne- 
 cessary, there was a spirit of co-operation abroad which, 
 augured well for its success. 
 
 In the year 1837 an Act of Incorporation was obtained for 
 the York and North Midland Railway Company. The pro- 
 visional committee at once resolved themselves into a Board of 
 Directors, and Mr. Hudson was unanimously elected Chairman. 
 Mr. Hudson's antecedent efforts now began visibly to tell upon 
 the enterprise. The land for the route was obtaiucd at the
 
 14 TACTS, FAILURES, ASD 
 
 average cost of 1750 per mile a sum less by several thousand 
 pounds than the average cost per mile that had been paid by 
 the North Midland, with which the York line was designed to 
 effect a junction. Mr. Hudson's powers of organization were 
 never more happily brought into play than in the ease and 
 rapidity with which all the preliminary arrangements for 
 commencing the work of construction were brought into 
 action. In this, as in other combined operations with which 
 Mr. Hudson was connected, he displayed that activity which 
 could only come from regarding himself as a joint of the 
 great machine ; he laboured to fill up his individual part as 
 assiduously as if the motion of every wheel, the effect of 
 every spring, the success of the whole operation, depended 
 upon him alone. The apathy of the people at York, in 
 respect to the enterprise, had been far more difficult to 
 surmount than any obstacle that now presented itself. Xo- 
 thing, however, could exceed their joyful hilarity and festive 
 mirth when the first sod was turned, and a gang of Irish 
 labourers rushed upon the sward " to take up the shovel." 
 It was a jubilee for every citizen of York of sound mind, 
 unanticipative of the horrors of change. "With the same 
 view to economy which had suggested a personal examina- 
 tion of a former proposed route, Mr. Hudson superintended 
 as much as possible the construction of this line, and, as it 
 approached completion, turned his attention to the provision of 
 rolling stock, the working arrangements, and the classification 
 of the business departments. 
 
 It was not so early in the history of railway enter- 
 prise, but that he and others had seen the tendency of such 
 undertakings to mismanagement, waste, and early annihi- 
 lation of capital, and he made it his business both to super- 
 vise the outlay and protect future resources. Meanwhile, 
 Mr. Hudson had attained to the dignity of Lord Mayor 
 of York. One of the most pleasing duties devolving upon
 
 TACTS, FAILURES, AXD FRAUDS. 15 
 
 him in the year of his mayoralty was the inauguration of 
 the York and North Midland liaihvay. The occasion was a 
 proud and memorable one to those who had brought the 
 enterprise thus far towards completion. In presence of a large 
 assembly, Mr. Hudson dealt with dates, figures, and facts 
 relating to it, and dilated with unaccustomed warmth on the 
 prospective advantages of the work. It was not until 1840 
 that trains begun to run on the line. At the close of Mr. 
 Hudson's official year, which had thus been rendered so event- 
 ful, lib fellow-citizens, together with gentlemen and noblemen 
 of the county, presented him with a superb testimonial, ex- 
 pressive of their esteem and regard, not only for the honour- 
 able discharge of his civic duties, but for the public serv ices he 
 had rendered in commencing, carrying on, and bringing to a 
 completion the York and North Midland line. At the same 
 time that this line was put in operation, the Hull and Selby 
 was opened throughout, arriving at the point at which the 
 Leeds and Selby might connect with it. These two lines, 
 however, were subsequently acquired by the York and North 
 Midland. Mr. Hudson had no sooner secured the execution 
 of his cherished design of carrying a railroad out from York 
 to the most advantageous point of communication with exist- 
 ing and forming lines, than he applied himself to project under- 
 takings which might conserve this 'vantage ground, part of his 
 plan being to extend the existing line so as to anticipate the 
 movements of other companies. 
 
 ~W ith the view of commanding a further portion of traffic 
 to be drawn from the north-western districts of the country, he 
 next obtained a grant of money for the survey of a route to 
 Scarborough. Parliament at this time was by no means back- 
 ward in authorizing the raising of capital fkr beyond tho 
 necessary outlay through shares or loans and railway com- 
 panies had already found that they could derive the givutust 
 gain, and therefore had the greatest interest iu endeavouring
 
 1C TACTS. FAILTJBES, AND 
 
 to bring neighbouring districts, by means of branches, ex- 
 tensions, or amalgamations, within the range of markets, 
 through funds raised on the credit of their revenues, which 
 beyond a certain amount did not actually belong to them, if the 
 new undertakings would not of themselves prove profitable 
 investments. The desire to secure large sums by the issue of 
 shares at high premiums, prevented any question as to the 
 adequacy of the return, or as to whether the undertaking itself 
 would pay, which was the only criterion which could be safely 
 trusted in the employment of capital. Parliament certainly 
 had no intention to give power to proprietors of railways to 
 raise large sums to divide among themselves ; but, under the 
 representations made, it was impossible to prevent a dispro- 
 portionate amount of disposable capital flowing into new 
 investments. Sir John Eennie, unskilled in those financial 
 movements by which support was assured to an undertaking, 
 whether it returned the money invested in it or not, had failed 
 in establishing a line between York and Scarborough. This 
 much, however, had to be said in favour of such a line : It lay 
 in the direction originally proposed, and, as Leeds was esta- 
 blishing direct communication with Hull, it was not unreason- 
 able for York to desire communication of its own with the 
 western coast. Mr. Hudson saw that, in one form or other, it 
 would be of benefit to the York and North Midland, and per- 
 sonally accompanied the surveyors. 
 
 As for the York and North Midland, the wisdom of the 
 choice made as to route, and even of the delay that had occurred, 
 was soon made manifest. Fed by the traffic of lines running 
 southwardly and easterly with which it had been brought at 
 once into communication, a large business was secured, while 
 the reactionary effects of this on the city of York were becoming 
 every day more apparent. The true principles of mercantile 
 science, as applied to railways, had not, however, yet been traced; 
 it was not discovered that in this, as in all other mercantile
 
 FACTS, FAILriiES, AND FBAUDS. 17 
 
 speculations, large profits were to be most surely attained by a 
 large trade brought into existence at moderate prices. The 
 attention of proprietors was absorbed, not in fostering the 
 wish to travel, and affording facilities for the constant trans- 
 port of goods, by establishing a moderate scale of fares, but in 
 taking advantage of every opportunity that presented itself to 
 thwart one another's designs, either by establishing competing 
 lines or raising the fares on one portion of a given route, so as 
 to counteract or check any reduction or alteration of the tariffs 
 on any other portion under the control of a different com- 
 pany. As remarked by a witness before the Eailway Acts' 
 Amendment Committee of the House of Commons, in 1844, a 
 period subsequent to that to which reference is now made, 
 " the passenger from London to York did not know at what 
 part of the route his money was distributed. The last fifty 
 miles might cost him more than all he had already passed over." 
 "While Mr. Hudson would forego no advantage that could be 
 obtained from the almost unrestricted powers granted by Par- 
 liament for the furtherance of railway projects, and was 
 ready to cope at all points with railway companies in the 
 adjustment of the scales of fares, besides looking to the profits 
 to be obtained on the issue of shares on branches, entitling 
 the holders to the same dividend as that received on the trunk- 
 line, although these branches might yield a far less per centage, 
 he was not disposed to lose sight of the advantages accruing 
 from working the York and North Midland at the cheaper 
 cost, which improved experience and skill rendered possible. 
 
 The doubtful state of the North Midland line, as compared 
 with that over which Mr. Hudson so efficiently presided, soon 
 became matter of observation. "While the traffic on the 
 former was steadily progressing, expenses were increasing in 
 yet greater ratio. It was no easy thing to manage these vast 
 and unwieldy corporate concerns in a day when the conse- 
 quences to follow on any alteration in the superintendence were 
 
 c
 
 18 FACTS, PAIirUES, AND 
 
 far from being apparent. Mr. Hudson, who was a shareholder 
 in the JSTorth Midland, interested himself in the matter, and 
 offered, after a brief examination of the state of its affairs, 
 to put the company on a quite different footing, provided 
 he were invested with sufficient power for the purpose. 
 Mr. Hudson had gained the ear of the great body of share- 
 holders, by declaring that the expenses could be reduced fifty 
 per cent. ; and though some opposition was shown to such a 
 reform, and its possibility was by not a few stoutly denied, 
 the malcontents were outvoted, Mr. Hudson was installed in 
 power, and proceeded to make good his promise. He removed 
 needless functionaries, curtailed various emoluments, and vigi- 
 lantly supervised the whole outlay. He would tolerate neither 
 incompetence nor indifference. In addition to seeing that 
 servants and officers were fairly paid, so as to secure greater 
 efficiency and attention on the part of agents, and renewing all 
 the contracts entered into for supplies, as well as the arrange, 
 inents in existence with other companies, he succeeded in 
 introducing greater simplicity and unity of plan in its opera- 
 tions minor points, hitherto too much overlooked, falling into 
 proper system. A character altogether new was given to the 
 management, and zeal and intelligence exhibited itself on the 
 part of subordinates. In the first half-year a saving was 
 found to have been effected in the working expenses alone of 
 nearly twelve thousand pounds, with the certainty of yet fur- 
 ther decrease. 
 
 Thus far successful, Mr. Hudson proceeded to fortify the 
 position of the York and ]Sorth Midland, by averting, as far 
 possible, any dangerous rivalry. It had become an object of 
 prime importance to secure the Leeds and Selby line, which 
 \rould have competed with the York and JN"orth Midland for 
 the Leeds and York traffic ; and Mr. Hudson, as soon as the 
 opportunity offered, incurred the responsibility of taking a 
 lease of the line. The lease ran for thirty-one years, and was
 
 FACTS, FAILURES, AN'D FHAUDS. 19 
 
 secured at what was considered an equitable rental. The ad- 
 vantages of this acquisition were so apparent that the York 
 and Xorth Midland Company at once adopted the bargain* 
 releasing Mr. Hudson from his assumed obligation. 
 
 Mr. Hudson's capacity for calculation, which enabled him 
 to carry in his head the items constituting the aggregate of 
 the vast sums in which he dealt, added to his desire to have 
 recorded merely the results of his transactions, led him not 
 only to suspend entries until certain successes had been 
 achieved, but really to undervalue the importance of any for- 
 mal method. When he succeeded to the Chairmanship of 
 the Xorth Midland, he was reported to have scoffed at the 
 systematic manner in which the accounts were kept, and to 
 have disposed of a quantity of stationery a proceeding which 
 afterwards gave rise to the following satirical remarks in a 
 public journal : " Good accounts are troublesome things to 
 keep, and occasionally cause trouble to the parties of whose 
 affairs they are registers. The true chandler's shop system 
 is to keep no books at all. A cross for a halfpenny, a down 
 stroke for a penny, a little for a sixpence, and a larger for a 
 shilling, all in chalk, on a board or cupboard door, constitute 
 the accounts of many a money-getting shopkeeper ; and, we 
 doubt not, would suit well the purposes of some of the rail- 
 Chalk is easily rubbed out and put in again ; ink is a 
 permanent nuisance. One great company is reported, at one 
 time, to have used pencils for their figures, in preference to 
 ink, which, we presume, must have been for the sake of con- 
 venience." 
 
 To do Mr. Hudson justice, however, it must be stated 
 that vouchers appear to have been kept of all the transac- 
 tions, and though the entries were not in the order in which 
 they arose, means were afforded, to those who searched the 
 books, of checking the balance of the debit or credit of current 
 accounts, and thus to discover how far the accounts had been
 
 20 FACTS, FAILUEES, A2TD FUAIJDS. 
 
 tampered with in order to strike balances corresponding to 
 half-yearly statements. Unquestionably the most rigid accu- 
 racy in the entries made to the credit or debit of parties, 
 or heads of account, was essential for the protection of the 
 Company ; and no full apology can be entered for his negli- 
 gence in balancing cash, for irregulai'ities as to dates, names, 
 sums, and heads of account. His word was allowed to gua- 
 rantee every thing. All was assumed to be properly done 
 that had passed through his hands. 
 
 Mr. Hudson having purchased the Leeds and Selsby Hail way, 
 the North Midland Company at once ratified the act, releasing 
 Mr. Hudson from his obligations. Mr. Hudson, previously to 
 making his bargain for the Leeds and Selsby Railway, it is 
 alleged, had put some of his friends to the secret of the in- 
 tended purchase, who instantly bought up the shares. This 
 .sudden demand caused the shares to rise in value far above 
 their former level, no one appearing to be able to account for 
 the enhancement. On the purchase of the line being made 
 public, the individuals thus favoured, who happened to be 
 proprietors of the York and North Midland, were enabled to 
 realize a double gain, and thus increase their financial 
 position. 
 
 "Whether the announced receipts of the York and North 
 Midland were at this date as large as they were affirmed to be 
 may be questioned ; but it is certain that the advantages 
 secured to immediate shareholders, from Mr. Hudson's policy, 
 in the way of large bonuses on shares issued to proprietors 
 at par, and of high dividends that were guaranteed on each 
 new extension, irrespective of its actual returns, contributed 
 largely to generate that wild excitement which presently took 
 possession of the public. 
 
 In September of 1841, the lease of the Great North of 
 England was made the subject of a conference between him- 
 self and the representatives of six railway companies, to whom
 
 FACTS, FAILUHES, AND FK.VUDS. 21 
 
 lie had suggested the importance of the connection. The 
 succeeding October an agreement was come to between these 
 companies, by which the Great North of England Railway was 
 to be leased for ten years, and shares to be divided among 
 them according to the amount they severally guaranteed. On 
 the ISth of June, 1842, the companies were incorporated, 
 under the name of the Newcastle and Darlington, for the pur- 
 pose of carrying this agreement into effect; they were 
 authorized by the same Act to raise by shares the required 
 amount of capital, and to exercise enlarged borrowing powers. 
 One of the minor companies declining to carry out its agree- 
 ment of 6 per cent, guarantee, Mr. Hudson had the pleasure 
 of again assuming a heavy obligation on behalf of those 
 companies with which he stood associated. In pressing for- 
 ward the work to completion, he exhibited the same energy 
 which had distinguished him in relation with the York 
 and North Midland Company. Then the object of his ambi- 
 tion had been to bring York into close communication with 
 London, as well as with the East and Wesb Hiding ; now 
 it was to advance northward a direction that had stimulated 
 the ambition and enterprise of all the great companies. 
 
 The practice of swelling the nominal amount of stocks 
 beyond actual outlay, continued, on all hands, to be persevered 
 in. In the Great North of England Eailway Purchase Bill, 
 the actual outlay and estimate for additional works \vus 
 1,490,769, the proposed capital 4,000,000, exceeding the 
 actual outlay and engagements of the Great North of England 
 proprietors by the sum. of 2,503,003. At the time of the 
 amalgamation, the Great North of England paid but small 
 dividends. As afterwards stated by Mr. Hudson, before a 
 committee of the House of Commons, it was stipulated by tho 
 Newcastle and Darlington that it should receive 10 per cent, 
 on every 50 share till a stated period, when the shareholders 
 had a claim to be paid off in 4 per cent, stock at 250 per
 
 22 TACTS, FAILURES, A>"D FRAUDS. 
 
 share. From 50 to 100 per cent, was realized by those who 
 luckily were in the secret of this amalgamation, and such was 
 the success attending the operation, that the proprietors' gain 
 was estimated at cent, per cent. The stimulus given to railway 
 investments by returns disproportionately high, by an artificial 
 enlargement of profit above the level of the ordinary returns 
 on capital, enabled proprietors easily to enrich themselves at 
 the expense of their successors. 
 
 Under the auspices of Mr. Hudson, an amalgamation was 
 successively effected between the Midland Counties, ]S"orth 
 Midland, Birmingham, and Derby and Bristol and Birmingham 
 Railways, making a line of 397-i- miles, with 126 passenger and 
 goods' stations, terminating at Bristol in junction with the 
 Great "Western Railway, 9V miles from Birmingham, at Rugby, 
 on the same line, 82 miles from London, at Leeds, !N"otting- 
 ham, and Lincoln, and passing through the counties of War- 
 wick, Stafford, Derby, Leicester, Nottingham, York, Lincoln, 
 "Worcester, Gloucester, and Somerset. The money this com- 
 pany had been authorized to raise on share capital amounted 
 to 14,664,434, and by loans 2,680,389, so that its powers 
 may be said to have been almost unlimited. 
 
 "Whilst the Legislature was aiming to enforce more com- 
 pletely those restrictions which might prevent companies from 
 unduly exercising the credit they possessed and maintaining 
 exorbitant charges, Mr. Hudson entered into a magnificent 
 combination, formed by several leading companies, for the pur- 
 pose of effecting, as was alleged, more economical manage- 
 ment, but in reality to maintain excessive exactions in 
 perpetuity. To sustain this scheme, railway meetings were 
 almost simultaneously held at York, Gainsborough, and Lin- 
 coln. This combination was described at the time, by a witness 
 before a committee of the House of Commons which was then 
 sitting, as subsisting " between the London and Birmingham, 
 Amalgamated Midland, the York and iSTorth Midland, and all
 
 TACTS, FAILUEES, A^D FEATJDS. 23 
 
 the lines in connection, and that -were to be in connection, 
 north of York to Edinburgh," and it \vas added, that " the 
 lines from York to Scarborough, and from Leeds to Bradford, 
 which had already passed the House were part of it ; " also, 
 that " in the ensuing session of Parliament, powers were to be 
 sought to make a line from the North Midland, near Swinton, 
 and the Midland Counties at Nottingham, to meet at Lincoln 
 and another line from a point north of Swinton, to a point on 
 the Sheffield and Manchester line, called Penmaton IToor, 
 which, with the Sheffield and Manchester line, and Sheffield 
 and Rotberhain, would become part and parcel of the same 
 interest. ' 
 
 In June of 1841, the line from York to Newcastle was 
 opened. By untiring energy, financial skill, and judicious organ- 
 ization, Mr. Hudson, with others, had accomplished a result 
 which had baffled a powerful company, possessed of sufficient 
 powers for raising money for the purpose, but unable to take 
 any further advantage of public enthusiasm. Mr. Hudson 
 was naturally proud of the achievement, and the ovations paid 
 him on the occasion showed how completely to his exertions 
 the opening of the line throughout was attributable. The 
 congratulations were the warmer in consequence of the im- 
 pression that the line, once completed, was a safe and sure 
 investment. The resources of the Carlisle and Newcastle 
 Railway, constructed at an early period in the history of rail- 
 way enterprise, were thus effectually drawn upon, and a vast 
 area of country was thus interlinked by rail with the midland 
 and south-eastern districts, as well as secured by the aid of 
 various tributary branches. 
 
 In this year, Mr. Hudson was examined before a committee 
 of the House of Commons, appointed, under a motion of the 
 President of the Board of Trade, to consider whether any and 
 what new provisions should be introduced into such railway 
 bills as might come before the House during that or future
 
 24 TACTS, FAILUEES, A^D FEATTDS. 
 
 sessions for the advantage of the public and the improvement 
 of the railway system. In the most unaffected manner, and 
 with all the apparent zeal of one earnest to aid to the great- 
 est possible extent the investigations of the committee, he 
 developed and even elaborated the specialities of those trans- 
 actions, by which the railway companies profited at the 
 expense of the public ; how they escaped Parliamentary restric- 
 tions and furnished themselves with the means for extravagant 
 speculation ; how, by the pledging of the revenues of their 
 lines for extensions and purchases, sums of enormous magni- 
 tude were immediately put into the pockets of shareholders ; 
 in fact, Mr. Hudson showed to the committee at whose risk 
 all this work was being done, and left them to draw the 
 inference how little it was in their power to interfere 
 with the course that things had taken. And when the 
 Government of the day conceived itseF called upon to guard, 
 by fresh restrictions, the exercise of the power possessed 
 by railway proprietors, and Mr. Gladstone had propounded 
 a measure by which the excess of profits above 10 per 
 cent, should belong to the public, and be made available 
 to the improvement of the lines or the reduction of fares, and 
 various regulations were laid down of a character to intimate 
 how completely the railway interest was regarded by Govern- 
 ment in the light of a monopoly, those immediately inte- 
 rested undertook to resent this interference, and various 
 meetings were held in different parts of the kingdom, at which 
 the course adopted received the most unqualified censure. 
 
 At one of these meetings, Mr. Hudson presided. He de- 
 nounced the bill as injurious to railroad property, prejudicial to 
 public welfare, and conflicting with the liberty of enterprise. 
 Not content with this, he penned a letter to Mr. Gladstone, 
 who had charge of the bill, pointing out its demerits, declaring, 
 at the same time, its utter inadequacy to secure the object in 
 view. The gradual ramifications of this movement, extending
 
 FACTS, FAILURES, A>'D FRAUDS. 25 
 
 to every town and district in England, were attended with 
 proportionate power, such as naturally arose from large 
 expenditure, wide patronage, and enormous investment of 
 capital, so that this influence was fast obtaining an ascen- 
 dancy even in the Legislature. Although there was a wide- 
 spread impression that the public were not benefited as they 
 ought to have been, by the increasing traffic, in the reduction 
 of charges and the provision of greater conveniences and 
 facilities, Mr. Gladstone's measure, in a modified form, was 
 passed with difficulty. This Act gave Parliament the right to 
 revise the tolls ; but this right was not to come into operation 
 till after the lapse of twenty years, and then it could only be 
 exercised on permanently guaranteeing to the shareholders 
 the enormous dividend of 10 per cent. 
 
 Mr. Hudson knew well how to make steady, gradual, and 
 permanent encroachments, so as to compel others to concede 
 to him the absolute influence necessary for that free individual 
 action on which he felt the very existence of the organizations 
 he brought about, and the success of the negotiations into 
 which he entered, depended. He further knew how to make 
 "capital" out of the feelings of reverence and admiration he 
 excited. Having entered into some arrangements for the 
 Midland Company which he had not vouchsafed to disclose to 
 the Board of Directors, these gentlemen, after having vainly 
 attempted to worm out the coveted secret, screwed up their 
 courage one day to demand it. They accordingly met much 
 earlier than usual, and when their superior arrived, they were 
 all exceedingly quiet. " How, now, gentlemen," said Mr. 
 Hudson, " has anything happened ?" " Only," replied one, 
 " that we being equally responsible with yourself for what is 
 done, are desirous of knowing the nature of your future plans." 
 " You are, are you ?" rejoined the railway monarch, " then 
 you will not !" And the business of the board proceeded. 
 
 Mr. Hudson was next found engaging in a transaction
 
 26 PACTS, FAILURES, A:>'D TEAUDS. 
 
 highly illustrative of his character and his policy. In nego- 
 tiating for the Newcastle and Darlington line, he had outwitted 
 the Dean and Chapter of Durham, showing the vanity of the 
 idea that the "Church and State" could interpose to stay 
 these great industrial undertakings. He now again visited 
 that ancient archiepis copal see, in company with George 
 Stephenson, for the purpose of outwitting the shareholders of 
 the Durham junction, by buying up the railway between them. 
 Great was the astonishment of the public when they came to 
 learn the particulars of the affair. A railway put into the 
 breeches pocket of an engineer and director ! The proprie- 
 tary did not so slowly recover from their surprise. Mr. 
 Hudson by this purchase, which he handed over to the com- 
 pany, had gamed a further step on the new highway to the 
 north, a further security for carrying out unchecked all his 
 plans, and sustaining without impediment the whole fabric of 
 his power. 
 
 In glancing on a railway map of England, the eye is at 
 once arrested by the bold line of railway projected from New- 
 castle to Berwick, and which, unsupported on its way by any 
 other branch than that from North Shields to Morpeth, follows 
 the eastern coast, giving a northerly connection to the midland 
 and south-eastern lines of railway to a point a few miles east- 
 ward of Edinburgh. "When this line was projected, Mr. 
 Hudson at once realized its importance, and subscribed, on 
 his own responsibility, for 2000 shares at 25 each. These 
 shares almost immediately rose to 30 premium; but he 
 handed them all over to the York and North Midland. Self- 
 sacrificing as this act may appear, it is sufficiently set off by 
 an acquisition made by him when elected Chairman of the 
 Newcastle and Berwick line. 
 
 On the Newcastle and Berwick Railway Company amalga- 
 mating with the Newcastle and North Shields Eailway Com- 
 pany, Mr. Hudson increased the authorized issue of transfer-
 
 TACTS, FAILUHES, AND FRAUDS. 27 
 
 able shares on subscription capital of a million and a-half 
 pounds, from 42,000 to 56,000. As he deferred making any 
 record of this additional issue in the register, the act escaped 
 the notice of shareholders until a committee of investigation, 
 years after, had called attention to it. The number of shares 
 appropriated by Mr. Hudson was 9956|, and the profits 
 realized on the several operations attendiug their sale, must 
 have amounted to 145,704, if the sales were realized at 
 market prices. A transaction of almost similar character 
 took place in connection with York and Newcastle Extension 
 shares an issue made by Mr. Hudson and his brother 
 directors in advance of Parliamentary authority, and out of 
 which Mr. Hudson appropriated to himself 590 shares- 
 The aggregate premium on these amounted to 4000. Al- 
 though Mr. Hudson paid neither deposit nor calls on 200 of 
 these shares, the parties to whom he gave or sold them received 
 dividends out of the funds of the company as regularly as if 
 the calls had been duly met ; and whilst Mr. Hudson was in- 
 dulging in this distribution possibly in favour of what he 
 conceived to be the interest of the company, but, as alleged by 
 a subsequent committee of investigation, for his own benefit 
 9682 unappropriated shares were held by the company, winch 
 might have yielded a profit of 100,000, but no sales of these . 
 were effected. 
 
 The low price of iron in the winter of 1841 had induced 
 Mr. Hudson, in anticipation of the extraordinary demand 
 which he foresaw would arise from the demand for new, and 
 the extension of old, lines, to urge on his colleagues of the 
 York, Newcastle, and Berwick Company the immediate 
 purchase of 10,000 tons to supply their anticipated wants. 
 Fearful of incurring the responsibility, they declined to 
 authorize the purchase, and Mr. Hudson entered into a con- 
 tract on his own account for the 10,000 tons. Results con- 
 firmed his anticipations. In 1845, iron had risen cent, per
 
 28 FACTS, FAILURES, AKD FRAUDS. 
 
 cent., owing to the demand for ne\v, and the extension of old 
 lines. In the ensuing January, when iron had risen so 
 enormously, the company were compelled to advertise for 
 20,000 tons ; and a contract was concluded with the same 
 parties with which Mr. Hudson had made his bargain. Mr. 
 Hudson furnished, out of his own contract supply, 7000 of the 
 20,000 tons required, realizing a large profit, which he was how- 
 ever subsequently called on to refund. 
 
 It was calculated that the total revenue of railways in 
 some twenty or thirty years would amount to a large propor- 
 tion of the interest on the national debt, or 28,000,000. A 
 host of schemes, mature and immature, practicable and imprac- 
 ticable, profitable and profitless, came before Parliament. Capi- 
 tal was attracted from all other channels of enterprise. The 
 number of miles for which Railway Acts were passed in the 
 first session of the Legislature during the reign of this new-born 
 enthusiasm were 2841. Mr. Hudson was then resorted to by 
 various companies to give value to their shares by appending 
 Ms name as chairman, or affording the benefit of his sage 
 counsel. He boasted afterwards that he had joined no com- 
 pany whose projects were not meant to be carried out, which 
 was no slight merit when the number of abortive and visionary 
 schemes of the time are called to remembrance. Whether the 
 lines he paternally adopted were open for traffic, in course of 
 being constructed, or merely projected, his name gave confi- 
 dence to holders of shares, and thus carried prices to a 
 high premium, at which they found ready and eager purchasers. 
 Whatever the company, a rise in the value of shares was ob- 
 served unfailingly to follow George Hudson's accession, as 
 though he was in possession of some secret talisman. If rail- 
 ways were already embarrassed and discouraged by every 
 legitimate interest, this fact only served to add fuel to the 
 flame. Hudson's credit was so great, that his mere word ap- 
 peared to supply the place of actual resources. He well knew
 
 FACTS, FAILURES, AXD FB.Vl !>-. 20 
 
 what he was \vorth in this respect; and with a close eye and a 
 practised hand, he weighed the ever available fund represented 
 by his reputation, against all it would bear of unchecked re- 
 sponsibility, license, and latitude. 
 
 Among the companies who sought and obtained the benefit 
 of Mr. Hudson's financial skill and practical knowledge, as 
 applied to railway management, was the Eastern Counties. 
 To be chairman of a company whose line extended 217\ miles, 
 and was in junction with the Eastern Union, the Norfolk, 
 and several other important and influential railways, which 
 commanded more goods' traffic, in proportion to passenger traf- 
 fic, than any other of the metropolitan lines, and, though at the 
 time in unprosperous circumstances, anticipated an enormous 
 traffic in coals, to be received by the Blackwall line, and 
 disposed of in the counties of Essex, Herts, and the eastern 
 suburbs of the metropolis, was an offer particularly imposing to 
 Hudson, who might have fairly anticipated that his name 
 would keep the shares buoyant till such time as the develop- 
 ment of available resources had realized present anticipations, 
 or further amalgamation of lines, had afforded the means of 
 securing the greatest amount of traffic. 
 
 In accepting the chairmanship, Mr. Hudson committed 
 himself, in the way of active management, to an Herculean 
 task, and placed himself amidst directors who had fairly 
 exhausted their imaginations in devising schemes by which 
 the company might maintain itself. Some idea may be formed 
 of the gigantic powers with which it was invested, from the 
 fact that it had been authorized to raise by shares nearly niuo 
 million pounds sterling, and by loans and mortgages nearly 
 three million pounds sterling, at the time that Mr. Hudson 
 joined it. A large proportion of its shares, however, had been 
 issued at a heavy discount, and loans, authorized by various 
 Acts, had been converted into capital. The directors thought 
 to themselves, how different the situation of the Eastern
 
 30 FACTS, FAILUBE3, 
 
 Counties would have been, had Mr. Hudson only been called 
 to the helm some years before. As it was, they hailed with 
 rapture his accession to power, and, in dependence on his 
 energy, sagacity, foresight, and business tact, were as hopeful 
 as men could be of the results. But the bargain was not yet 
 completed. Mr. Hudson had stipulated for more than they 
 had anticipated. In this difficult navigation he had not mis- 
 calculated the breadth of the channel, and desired, at least, 
 that the way should be clear of ail artificial obstacles. 
 
 Hudson's first act, on assuming the office of Chairman of 
 the Eastern Counties, was to take upon himself the control of 
 the financial department. At one of the earliest meetings of 
 the directors, he stipulated further that Mr. Waddington 
 should supersede Mr. Crosbie, of Liverpool, as deputy-chair- 
 man. Mr. Crosbie had long exerted himself, both personally 
 and in his official position, to forward the interests of the com- 
 pany, and the demand occasioned some murmuring at the board. 
 The members, however, were quite willing to make any sacrifice 
 at the dictation of Mr. Hudson, and had not Mr. Crosbie him- 
 self opposed this summary ejection, the motion, in all likelihood, 
 would have passed without much comment. On Mr. Crosbie 
 refusing to relinquish the office to which he had been elected, 
 Mr. Hudson jumped up before the fire, saying, in a com- 
 posed tone, " Very well, I am brought in by the universal 
 voice of the shareholders ; and if I can't have my own deputy, 
 chairman, I shall return home, and leave the company." The 
 other members of the board, seeing the storm that was brew- 
 ing, interfered, and besought the belligerents to go into another 
 room, and try if they could not come to an arrangement. 
 They did so, and, in a few minutes after, they all returned 
 smiling. Mr. Hudson, as the story goes, placed Mr. 
 TVaddiagton in the post he had assigned to him, and Mr. 
 Crosbie afterwards scarcely ever troubled the board with his 
 presence.
 
 FACTS, FAILTTKE3, JL>*D FBAUDS. 31 
 
 When Mr. lludson had been but a few months in pos- 
 session, and before the half-yearly accounts were made up, ho 
 directed that nine shillings per share should be declared at 
 the next half-yearly meeting of shareholders. This was 
 accordingly done, and shareholders were left to congratulate 
 one another on such a brace of excellent directors as Mr. Hud- 
 son and his deputy-chairman. Alterations of accounts once 
 commenced were continued. The course with reference to pub- 
 lished statements as to revenue was for the accounts, after being 
 made up from the books, to be given to Mr. Hudson, who in- 
 structed Mr. "Waddington to intimate that certain items should 
 be altered. Mr. "Waddington, in handing back the figures, and 
 giving the directions to the traffic manager, would say, " Xow 
 mind, Mr. Mosely, I shall be no party to the cooking of these 
 accounts." Mr. Waddiugton by his very words condemned him- 
 self. Both he and Mr. Hudson would seem to have drawn a 
 distinction between corporate and individual responsibility ; 
 acts which they would have scorned even to countenance in 
 their own private spheres of business, they unhesitatingly com- 
 mitted vrhen within the charmed circle of a large and powerful 
 organization, for the purpose of furthering general and indi- 
 vidual interests. Mr. Hudson stated, at a subsequent time, 
 that he felt the company was justified in putting a certain 
 amount to capital, and leaving it to be discharged on future 
 years of success. The transactions in question were regarded 
 as mere transfers of debt from one period to another, deter- 
 mined by bis own judgment, acting in reference to present 
 requirements and future anticipations, and, probably, as involv- 
 ing very little, if any, culpability. 
 
 The dividend announced to shareholders at the last half- 
 yearly meeting of the Eastern Counties had been but three 
 shillings a share. Xow great things were expected from Mr. 
 Hudson. His name was supposed to act as a talisman on 
 whatever he came near ; but apply it as he would, it stood to
 
 32 TACTS, FAILUBES, AND PEATTDS. 
 
 reason that it could not immediately augment the traffic 
 receipts. He might enter into advantageous arrangements for 
 the future, but to act at once and independently on the 
 resources of the route was out of his power. Mr. Hudson, 
 however, did not choose to stand on the reason of the thing. 
 He was concerned for the shareholders, and thought it a kind- 
 ness on his own part to put them at their ease. He might 
 thus hope, also, to gain their further confidence, with a view to 
 being allowed that arbitrary and free action, and absence of all 
 control, which were essential to the full play of his faculties, 
 and the ultimate development of his plans. 
 
 At a special meeting of directors and shareholders, Mr. 
 Hudson informed them that he was now sufficiently acquainted 
 with the position of the company to feel confident in assuring 
 them that there was no line in the kingdom which would yield 
 a better dividend than the Eastern Counties ; that it would be 
 one of the best means of investment identified with the rail- 
 way system of this country. The favourable opinion of Mr. 
 Hudson was a sufficient pledge of promise to the enraptured 
 shareholders. The usual decorum of a business meeting was 
 set aside, and the prophet of the iron-road system was greeted 
 with demonstrations described by a contemporary to be " not 
 unlike the ovation tendered by the friends of some successful 
 candidate for Parliamentary honours." Indeed, the proceedings 
 were of the most tumultuous character, and the railway 
 Napoleon, as he was then popularly called, received the 
 plaudits of his flatterers with the most regal dignity. So 
 complete was the reliance on Mr. Hudson's management, that 
 no astonishment was exhibited when, shortly after, three times 
 the usual amount of dividend came to be declared. 
 
 The loose way in which the books were kept would ap- 
 pear to have led the clerks of the company into a state of 
 unenviable bewilderment. Where no rigid economy was re- 
 quired as respected a fluctuating balance ; where entries
 
 TACTS, FAILUnES, AND FIIAUDS. 33 
 
 weiv made to the credit or debit of heads of account, as the 
 case might be, for securing mominal aggregate sums to bear 
 out halt-yearly statements ; where the premiums realized on 
 certain shares were carried to income, and the ascertained loss 
 on other shares \vas carried to works ; where passenger and 
 merchandise account were continually overstated, and entries 
 were not made in the order in which they arose it could 
 scarcely be otherwise than that sums actually due to the com- 
 pany were undesignedly overlooked, more especially as " con- 
 struction" and " sundries" accounts were made the chief de- 
 posits of fictitious entries. Thus 11,450 slipped at one time 
 through the prepared sieve in the way of over-payments a 
 most natural result of crediting and debiting false amounts. 
 Not to speak of other instances, the Selby and Bridlington 
 lines, undertaken by the York and North Midland, at Mr. 
 Hudson's suggestion, and indeed under his decree, occasioned 
 an annual loss of 17,000. This loss was unquestionably in- 
 curred not merely in eagerness to distance rivals and to ex- 
 clude the public from low fares, but to throw upon the market, 
 during the palmy days of railway speculation, a number of 
 shares which, under the large guarantee afforded, though no 
 profits were ever to be realized, brought high premiums. Even 
 in amalgamations high dividends were guaranteed where little 
 or no profit had ever been secured, thus enabling parties to 
 buy up beforehand discredited securities, which they sold in a 
 month or two, sometimes at a profit of cent, per cent., or even 
 greater, and fortunate were those individuals who were con- 
 sidered to range behind the scenes, and who, anticipating the 
 announcement of lease or new arrangement, operated in ad- 
 vance of their neighbours. 
 
 Three years from the time Mr. Hudson assumed the reins 
 of power on the Eastern Counties line, as much as 29-1,000 
 had been unduly charged, during his regime, to capital account. 
 Shareholders, unaware of the obligations they were incurring 
 
 D
 
 34 TACTS, FAILURES, AXD FRAUDS. 
 
 obligations that, through one transaction and another, presently 
 reached half a million pounds sterling were lulled, by the 
 transfer of figures, into a delightful slumber. The prosperous 
 condition of the 10 per cent, dividend line was a universal 
 subject of remark. But how stood matters ? Out of 545,714 
 distributed in dividends, from the 4th of January, 1845, to the 
 4th of July, 1848, 320,572 was procured by the alteration 
 of traffic accounts and improper charges to capital. Con- 
 sequently, out of 545,714 actually divided, only 225,141 
 was the amount that in reality had been earned. 
 
 On the creation of 50,000 new shares by the York, New- 
 castle, and Berwick Company, for the East and W^t lii ding 
 the directors of the company appear to have regarded ib as 
 entirely optional with themselves, and without strict reference 
 to the interest of the shareholders, how these were distributed. 
 Accordingly a number were appropriated to themselves, and 
 several thousands fell to the lot of Mr. Hudson, who, on these 
 occasions, always of course came in for the lion's share. The 
 premium received by hirn on 2300 of these Avas 16,000, an 
 amount which he subsequently placed to the company's credit ; 
 975 were disposed of to secure the interest of individuals, and 
 the remaining 1100 were appropriated to himself. 
 
 The exhibition of anything like high moral sentiment in 
 one with whose name is associated rightly or wrongly so 
 much of deception and illusion, carried on, however, for the 
 most part, with the apparent desire to benefit the companies 
 with which he was connected, cannot fail to interest even 
 in retrospect. To many persons, indeed, who regard a bene- 
 volent appreciation of worth as lifting a man nearly to the 
 summit of every excellence, and as well nigh atoning for every 
 error, George Hudson must be viewed in a highly enviable 
 light. The occasion was the death of Stephenson 
 " The foremost man of all this world," 
 
 in laying the foundations of the railway system. A few days
 
 FACTS, FAILURES, A>~D FKAUDS. 
 
 after that event, Mr. Hudson, addressing the shareholders of 
 the H:i.-i' :'u Counties Railway, said: 
 
 " But for my anxiety to meet you to-day, gentlemen, ifc 
 would have been my mournful duty to pay the tribute due to 
 departed worth, in following to the tomb the remains of my 
 respected friend, Mr. George Stephenson ; a man whose 
 genius has benefited, not the rich only, but the poor also, in. 
 opening up the means of obtaining cheap fuel and locomotive 
 facilities ; a man who deserves if any one may the title of 
 being a benefactor of his species. The departure of such a 
 man is to be deplored as a national calamity ; and railway 
 shareholders have a special cause of regret, for if it had pleased 
 God to spare him, as we might have hoped, no one could have 
 been more pleased than himself to see them receive a due 
 return for the investment of their capital in those great under- 
 takings which his genius and enterprise did so much to call 
 into existence." 
 
 And at a meeting of the Midland Railway, held the 19th of 
 August, 1848, Mr. Hudson remarked : 
 
 " This was almost the first meeting of their proprietors at 
 which they had not had the presence of him whom history 
 would record as a great and distinguished man, and who had 
 so lately been called to the tomb of his fathers. They had 
 almost always had his friend Mr. Stephenson present to 
 witness their proceedings, and to testify to the interest he 
 felt in their undertaking. But it had pleased God to deprive 
 them of him at a time when his friends looked forward to havo 
 the pleasure of his society for many years. They mis 
 feel that it was a great alleviation to the affliction of his sor- 
 rowing friends, that he had left behind him a memory that 
 princes might be proud of, and that the most distinguished 
 man living would be proud to exchange his fame for that 
 which would surround the name of George Stepheuson. He 
 had left behind him the character of an honest man; of a
 
 36 FACTS, rAILTTRES, AND TEAUDS. 
 
 sincere and warmly-attached friend ; of an affectionate hus- 
 band and kind father. He could not close the present 
 meeting without expressing the deep sympathy which he was 
 sure they must all feel with the friends of the deceased for 
 the bereavement they were suffering, and their sense of the 
 high estimation in which his character and works would live in 
 after ages in the memory of his countrymen. He trusted 
 they would all emulate the character which his friend had 
 bequeathed to those who were following him." 
 
 The ease with which Mr. Hudson harmonized the topics of 
 his theme, and the energy and conscious power with which, in 
 simple and unstudied diction, he gave forth his utterances, and 
 which had their response in the fluctuating emotions of a 
 great and agitated assembly, were finely illustrated on this 
 occasion, on w r hich he so well acquitted himself of the impor- 
 tant task of testifying to the virtues of one who occupied a 
 sphere only superior to his own. 
 
 Mr. Hudson's acquisition of the Brandling Junction, on 
 behalf of the Newcastle and Darlington Railway, was rewarded 
 by the directors with the dotation of an unappropriated sur- 
 plus of 2000 shares, remaining out of the 22,000 shares which 
 had been issued on the transaction. Those shares, at the 
 ruling market price, would have enabled Mr. Hudson to 
 realize upon them 37,000 ; whilst the shares received by him 
 as his proportion in the general distribution, would bring up 
 this amount to 42,000. No man had less reason to com- 
 plain than Mr. Hudson of not having his services most fully 
 appreciated. Although these rewards incurred subsequently 
 the severest censures of committees of investigation, and 
 Mr. Hudson was called upon to refund large sums of money 
 on account of them, no misgiving at the time came to lessen 
 the enthusiasm of the givers or the gratification of the 
 receiver. 
 
 Future shareholders had not much cause to rejoice in such
 
 TACTS, FA1LTJBE3, AND FRAUDS. 37 
 
 acquisitions as were made, notwithstanding the specious argu- 
 ment that it was the same thing to pay large dividends on 
 small capitals, or small dividends on largo capitals. If the 
 rate of dividend was to determine whether the scale of fares 
 should be subjected to revision by the Government on behalf 
 of the public, it was of the very first consequence that capitals 
 should correspond with the original outlay. It was the same 
 thing only to permanent proprietors whether they obtained 
 large bonuses, and increased their capitals by sums exceeding 
 the money laid out on the roads by the amount of such 
 bonuses, and received proportionably smaller dividends.* 
 
 There would appear to exist undoubted evidence that in 
 the York and North Midland accounts, even previous to 1845, 
 large sums were improperly charged to capital ; so that many 
 persons conclude that in the earliest stages of the enterprise 
 with which George Hudson was connected, the value of shares 
 and the amount of dividends allotted were not estimated ac- 
 cording to actual receipts. Under the representations that 
 were made, the acquisitions of permanent holders of shares, 
 from the date of the construction of that line to 1846, amounted 
 to five times the original outlay. Whilst the shares that had 
 been issued merely reached the sum of 1,500,000, the pre- 
 miums on this amounted to no less than 7,500,000. No 
 wonder this amount was regarded as a marvellous trophy to 
 the financial genius of Mr. Hudson ! No wonder that he 
 was sought after, courted, admired, and adored! The pre- 
 miums so received were the considerations paid for suc- 
 cessive transfers of the excess of revenue of the York 
 and North Midland, beyond the dividend applied to the new 
 
 * Curiously enough at the time of these transactions every ono was 
 seeking to benefit by his advice, and in the great rage for share dealing it 
 is believed he assisted many of his friends to recruit their resources through 
 his information. When, however, ho was displaced from power several of 
 these were the first to stigmatize hie conduct. Hie transit yloria mundi.
 
 TACTS, FAILURES, AND PEATJDS. 
 
 lines; this revenue being diminished exactly in the ratio in 
 which the revenue of the new lines fell short of the guaranteed 
 dividends which were to be derived from them. 
 
 The growing importance of the railway interest ; the ex- 
 tent to which the Legislature had gone in interfering with, 
 under the attempt to regulate, it ; the uncertainty that existed 
 as to the future bearings of this power on subsisting industrial 
 interests rendered it necessary that it should have its own 
 especial representatives within the House of Commons. Mr. 
 Hudson was elected by the people of Sunderland, who had in 
 view the advantages conferred on that town by the line of rail 
 which now binds them with the South, as well as with the 
 Midland and Eastern districts of England, and with which Mr. 
 Hudson was indentified, as well as the future benefits they 
 expected to derive from his management. On entering the 
 house, Mr. Hudson at once sided with the then ministerialists. 
 The chief of the railway system was regarded as a valuable 
 acquisition by Sir Robert Peel and his party. AVhen Mr. 
 Hudson spoke, he spoke briefly, and always to the point, 
 dealing chiefly in facts and affirmations, a course which secured 
 him attention. 
 
 On the 23rd of February, 184G, the chairman of the Great 
 "Western charged Mr. Hudson, in the House of Commons, 
 with having encouraged competition. The ground was being 
 cut away from under the feet of the directors of this com- 
 pany by independent branches that were being constructed 
 in various directions and sapping their resources, and by new 
 and rival companies created for the sole purpose of being 
 bought off, and he predicted most disastrous results if some 
 steps were not at once adopted to put a curb on reckless 
 speculation. Mr. Hudson maintained that the course recom- 
 mended would be an unfair interference Avith private enter- 
 prise, and his view was taken by the House. At the same 
 time Mr. Hudson will be found to have conducted his operations
 
 FACTS, T VNL) 1 KAUDS. 29 
 
 in the interest of the companies with which he was connected, 
 in a strictly defensive spirit, and to have brought all his in- 
 fluence to bear in pivventing bills, conceived to be prejudical 
 in any form to their interest, from passing through committee, 
 or, if thus far successful, going beyond standing orders. 
 
 There was no uian in Great Britain a more strenuous ad- 
 vocate than Mr. Hudson foi continued extensions, branches, 
 purchases of rivals, and amalgamations with reference to 
 the lines with which he was connected. So long as the 
 delusion held that a sort of Parliamentary guarantee ac- 
 companied the security tendered by these lines as to the rate 
 of dividend on the new additions, so long would the public 
 rush eagerly in as purchasers. Mr. Hudson undertook to 
 make good his promises to those who came up at his call, 
 though this could only be done at the expense of their suc- 
 cessors, unless railway property itself improved at a ratio 
 which not only actual receipts, but the activity exhibited in 
 the projection of rival lines, and of extensions in all directions, 
 dividing and subdividing the course of mutual resources, 
 effectually prevented. Mr. Hudson determined to push his 
 schemes irrespective of any which might receive Parliamentary 
 sanction the succeeding session. If crossing his path, he 
 would hunt them down, or proceed to make arrangements with 
 them, by buying them up, leasing, or amalgamating them. 
 
 In addition to those on hand, he had a batch of schemes 
 him -elf to bring before Parliament, to take their chance with 
 the rest. It was in reference to some of these as well as 
 others on hand, that lie assured the Midland shareholders (on 
 the 19th of January, 1846) that he would not recommend the 
 abandonment of any of them ; that he hoped that Parliament 
 would sanction, if not all, at least the greater portion of them ; 
 and that, ere long, the dividend of the Midland Company 
 would be a 10 per cent. one. He said : (> They must look at 
 this property of 8,000,000 or 9,000,000 as they would look
 
 40 TACTS, FAILURES, AND TEATTDS. 
 
 at a sound commercial enterprise, and not be deterred from 
 protecting and increasing that property by any reasonable risk 
 that it might be necessary to encounter." The applause which 
 followed encouraged Mr. Hudson who was accustomed to 
 sound the feelings of his audience as he went along to add : 
 " "We are not deterred from our purpose by what has occurred 
 in connection with new schemes (those abortive and visionary 
 schemes undertaken with the neglect of some of the most vital 
 conditions of success, and the debris of which lay scattered in 
 every direction). We felt that your property possessed far 
 greater stability ; and it Avas to continue and increase that 
 stability, that we projected these lines, believing them to be 
 beneficial to the community, and productive as well as protec- 
 tive to yourselves." 
 
 There are men who refuse to profit by " the wisdom of 
 the wise;" who actually refuse to be worked up to a fit of 
 enthusiasm by any ideal appeal or abstract financial achieve- 
 ment ; who, accordingly, persist in taking account of " termi- 
 nable periods" and "last results." On this occasion a 
 proprietor had the audacity to say that he thought the com- 
 pany had better finish the lines in hand before they undertook 
 such extensive schemes as those dilated upon. The observa- 
 tion was received with uproarious laughter. What else could 
 he expect ? What right, indeed, had he to think ? Will it be 
 believed that the said proprietor, not content with so ridiculous 
 a remark, culminated his folly by saying, " Should the company 
 get involved in 4.000,000 of debt, it would be a very serious 
 matter." Renewed laughter ensued, to the utter discomfiture 
 of the doubting proprietor. The Midland shareholders acted 
 up to their impressions. The Leeds and Bradford was 
 actually taken by them on lease at 10 per cent, in perpetuity, 
 and Mr. Hudson, from whose address in January quotations 
 have already been made, thus addressed them in July : 
 
 " Gentlemen, I repeat that I shall be most happy to be
 
 FACTS, FAILUEE9, A5D FBATTDS. 41 
 
 lessee under you ; to give any security you like ; and to tako 
 all the risk if I am to get all the profit. I cannot say more 
 to prove to you how highly I think of the line." 
 
 Mr. Hudson's sympathetic powers were remarkably strong. 
 lie was accustomed to infuse his own confidence into others. 
 On this occasion he went through the usual pantomime of 
 assuming to change places with the body of shareholders. He 
 delighted, not only to take upon himself the responsibility of 
 a scheme in advance of its ratification on the part of the 
 shareholders but to come after, in the very heigh-day of their 
 enthusiasm and delight, and tempt them pleasingly to make 
 back to him the bargain over which, on his assurance, he knew 
 them to be all chuckling. 
 
 To the York and North Midland shareholders, Mr. Hudson 
 assumed the form of one of those benignant deities who at 
 their mere will shower down on humble mortals undeserved 
 blessings. At every new issue on branches, extensions, or 
 amalgamations, they were enriched, notwithstanding the larger 
 measure of the obligations thus incurred. The sums divided 
 among them, to be paid out of future earnings, were defini- 
 tively stated at 83,792. As far as apparent beneficial results 
 went, they could desire no division of the control exercised by 
 Mr. Hudson. At the same time, the shareholders in general 
 relied on the accuracy of the published accounts ; whilst the 
 directors, participating in abuses which prevailed, carefully 
 aided in preventing all disclosures which might air ct the 
 marketable value of the property. When a committee of 
 investigation was ultimately appointed, they threw every 
 obstacle in the way of a fair and full examination ; and this 
 was pointedly complained of. 
 
 The plenary indulgence conceded to Mr. Hudson, by which 
 his will was made law, all complaints of those who naturally 
 esteemed themselves not fairly dealt with in various trans- 
 actions being silenced at his mere beck, cannot be better
 
 -i- 
 
 illnst. i in an anoed> r, Hudson in his palmy 
 
 related of him ar the board meeting ot > line. 
 
 The honourable gentleman had allotted to himself l>00 shares, 
 
 vr of the bard '200. These shares 1 
 . "> premium, t ' gentleman thought he ought 
 
 to have a larger number, and accordingly intimated his opinion 
 
 : .r. Hudson. " 1 have been accustomed, Mr. ," 
 
 replied the r.uhvny monarch, "to have gentlemen with whom 
 : . satisfied with my arrangements : and if you are 
 not. I'll retire, ami nir custody, which I 
 
 >ay you'll manage be: L do, as 1 much 
 
 other business on my hands." " .' by no 
 
 means. Mr. Hudson," bowingly responded the 
 director: " I am sure all you do id I am i 
 
 irh your arrangement," It is needle- no further 
 
 complaint was made by any of Mr. Hudson's colleagues at that 
 board. 
 
 In apportioning out shares on unproductive lines, which he 
 ied drawing into his general system, on the 
 guarantee of a high dividend, Mr. Hudson was the means of 
 conferring on his friends and supporters an almost incredible 
 amount of wealth. Every opportunity was taken to advise 
 them early of those amalgamations -which were to raise the 
 mazimum profit far beyond the point necessary to induce them 
 out their capital on the prospective undertaking. How- 
 ever unmarketable the shares, they were at once bought up. 
 In the height of the mania of 1S46, a gentleman who had lost 
 in fruitless speculation in rail v. and 
 
 vrho had t _> remaining, beth -self as a last 
 
 eking the adviee of Mr. Hudson, who had casually 
 told him years before that he would be happy to serve him 
 whenever the opportunity presented itself. Mr. Hudson was 
 as good as his word, and, as the best proof of his friendship,
 
 FACTS. FAILCIIEIS, A*i> riuri>. : ; 
 
 instructed him to invest even the last penny he had in tike -world 
 -tain unmarketable share* which be indicated. Behold 
 
 the power of implicit faith! An amalgamation of the Kne 
 Hudson's own was in prospect, and the investment that 
 
 Hudson had directed proved highly profitable and remunerative. 
 
 "With respect to proprietors under the mm rule of Mr. Hudson 
 
 erer knowing the true state of affaire, he appears to have 
 
 adopted on their behalf the apt sentiment 
 
 ** Wbare ignorance is bliw, 'ti foDj to be wise." 
 
 Arid doubtless designed that iieyshoold have the full benefit of 
 this amount of human wisdom. But mere orer-pajments were 
 far from including all the particulars of deficit thus uninten- 
 tionally occasioned. Errors extended into the working amnge- 
 BMots entered into with various companies. In an arrangement 
 for the advantage of the Midland line, the company for some 
 time carried passengers into Leeds at an actual loss, and in its 
 connection with the Lancashire and Yorkshire it received 
 5000 per annum less than it was fairly entitled to. In a 
 transaction with the Newcastle and Dariington Company, that 
 company was charged 2203 too much, and the York and 
 North Midland Company 2203 too little. 
 
 It was, of course, immaterial how irregular entries were 
 covered. The accounts to which it was most convenient to 
 carry the required debits, to make good deficiencies upon the 
 distribution or announcement of unearned dividends, were 
 those of construction and sundries. In one instance, when it 
 was thought desirable to represent the passenger and mer- 
 chandise traffic at 4000 beyond real earnings, stations were 
 debited with 8000. Everything went to show that 
 doubtful entries were not prompted by unanticipated 
 gencies, but were resorted to as a permanent mean* of relieving 
 present shareholders from the onus <rf the obligations they had
 
 44 FACTS, FAILUBES, ASD FRAUDS. 
 
 incurred, and gratifying them to the extent of their desires, 
 irrespective of actual success, or the ratio of progressive 
 increase in actual profits. At the half-yearly meeting of the 
 York and North Midland Company in August 1847, when 10 
 per cent, dividend was declared, Mr. Hudson observed that ifc 
 was not for him to estimate the precise effects which the 
 opening of the extensions, then about to come into operation, 
 would have on the parent undertaking ; but if the traffic realized 
 the expectations of directors, he hoped they might be able to 
 declare the same amount of dividend as they had the pleasure 
 of submitting to them that day. At the same time, he would 
 not disguise from them the possibility of a diminution of divi- 
 dend for the next half-year. 
 
 The powerful influence exerted by the bestowal of shares 
 on those who could further or impede his projects of amalga- 
 mation or extension, Avas never overlooked by Mr. Hudson. 
 A consideration could thus be unobtrusively forced on one 
 who would have refused openly to receive money for his ser- 
 vices. Besides these shares, voted to themselves by directors, 
 or appropriated at par, cost nothing ; the burden of paying 
 a dividend upon them was likely to fall on the succes- 
 sors of the existing shareholders. It is evident that secresy 
 was an essential element of success in these distributions. No 
 trace was suffered to exist of the way in which shares had thus 
 been bestowed, and consequently the books of the company 
 afforded no record of allotment. This was the case with 1170 
 Hull and Selby shares voted to Mr. Hudson by his co-directors 
 of the Berwick and Newcastle Railway Company, some of 
 which Mr. Hudson, doubtless, appropriated to himself whilst 
 others found acceptors in the manner already indicated. So 
 with the 2000 shares of the Brandling Junction Railway, voted 
 to Mr. Hudson by the same directors, at a time when 
 they were at 21 premium, being equivalent to a bonus of 
 42,000. The same may be safely affirmed of transactions in
 
 TACTS, FAILURES, AND FBATJDS. 45 
 
 connection with the Midland, and York and North Midland 
 Railways.* 
 
 But now the full effect of new lines, branches, and exten- 
 sions became to be perceived. Towards the close of 1847, 
 meeting after meeting was held at Manchester and other 
 large towns, at which the constantly recurring railway 
 calls, and the heavy pressure they occasioned, were the 
 special subjects of consideration ; and demands for the post- 
 ponement of different works in progress were urgently 
 enforced. But works in progress could not be abandoned 
 without a heavy loss, as the productiveness of a railway 
 depended on its completion. Calls on lines advancing towards 
 completion could not be refused, however inconvenient this 
 might be, as all previous payments would, in these cases, have 
 been uselessly employed. These representations had the most 
 disastrous effects on commerce. No ordinary industrial under- 
 taking could bear up against the enormous stringency which 
 the monthly increasing absorption for these purposes occa- 
 sioned ; and in this, as in all other misapplications of capital, 
 the loss and suffering eventually fell upon the industrial classes. 
 The last twelvemonths had witnessed an enormous reduction in 
 the value of railway property. The amount of depreciation on 
 the shares of ten leading companies, as compared with the 
 estimate of 1845, without including current calls, was calcu- 
 lated at upwards of 78,000,000. The unfulfilled obligations 
 and further contingent liabilities of this description of pro- 
 perty had progressively, but inconveniently, become more 
 apparent, and the public as well as proprietors began to 
 reflect on the causes and future prospects of this peculiar 
 state of things. Two hundred millions of money had been 
 
 * It has been asserted that parliamentary services were secured in some 
 instances by a free distribution of shares, but although Mr. Hudson was 
 during the investigations severely pressed on his point, he never could bo 
 induced to divulge the real facts.
 
 46 FACTS, FATLFEE3, A^'D FRAUDS. 
 
 subscribed, paid up, or borrowed, not to speak of the addi- 
 tional cost to existing shareholders. Fifty millions, at least, 
 had been lost in the actual expenditure on the works, and 
 there had been, according to ordinary estimates, a clear sacrifice 
 to proprietors of one hundred millions. 
 
 The progress of the reaction being fully apparent, expenses 
 were reduced, but obligations were increasing, and traffic 
 would not bear up the burden which Mr. Hudson, by his divi- 
 dends, nominally imposed on it. AVhere much confidence had 
 been given, large dividends were required. To withhold these 
 after he had once arbitrarily and suddenly augmented them, 
 was next to impossible. He felt himself compelled to go on 
 in the course he had adopted, looking to the future to make 
 good the adverse balances against the company thus created. 
 From January of 1845 there was not, it subsequently ap- 
 peared, au account sent in to directors, which did not come 
 back in altered form, so as to increase the apparent sum appli- 
 cable to dividend. 
 
 In the case of the Eastern Counties Company, the accounts 
 came, of course, regularly before an examining committee, 
 but as this committee had for two of its members Mr. Hudson 
 and Mr. Waddington, the other members did not think it 
 worth their while to assemble. The committee, as a whole, 
 never met. Good care was taken by Mr. Hudson, at each peri- 
 odical meeting, that none but his faithful deputy-chairman 
 " should bear him company." He was now ready to demon- 
 strate that to accumulate debt, in the manner and to the 
 extent that had been done, was the very reverse of good 
 management, and only to be justified by the fact of pressure 
 from without. Henceforth he would stand by good and 
 solid lines. " The public," he said, " have become more dis- 
 cerning, and are more competent to seek out good lines." 
 The truth was, the public would no longer consent to 
 take shares in unremuuerating and precarious investments.
 
 TACTS, i-.ui.ri:i:s. .VXD FR.vrcs. 
 
 As Mr. Hudson remarked, "they would not patronize any new 
 railway simply because it was a railway." " The result of this 
 spec, ilat ion in the end," he continued, addressing the Midland 
 Ixaihvay Company, " will be to make the property of good, 
 solid lines more sought for, more valuable, and more produc- 
 tive. They might then fairly look forward to an improvement 
 in the value of their property ; and his advice to them wag, 
 ' if you have got a good thing, stand by it.' He trusted there 
 would never be anything to weaken their confidence in the 
 board and in the property which he and his brother directors 
 represented." He referred to the several meetings which had 
 recently taken place of a tumultuous character, at which 
 directors had been called to account for having reduced their 
 dividends. " That might have been the position of the directors 
 of that company, but in such case they would meet them with, 
 the same confidence." 
 
 AVhen, in 1848, general inquiry was awakened as to the 
 management of these undertakings, when confidence needed 
 to be reassured as to the character of investments, Mr. Hudson 
 ridiculed the investigations then being instituted, as far as the 
 railways with which he was connected were concerned. He 
 ;i no loss for figures of speech to convey sentiments both 
 of irony and sarcasm. Statements of railway companies in 
 al were certainly of a character to depress the price of 
 shares ; and it was only consonant with Mr. Hudson's policy for 
 him to conceive that nothing could be so disastrous to the 
 interests of shareholders, whose property all along had been 
 maintaining a fictitious value, as really to know of what it con- 
 sisted, and what were their actual and future resources. He 
 regarded them, in suggesting this inquiry, as deluded victims, 
 to whom he had a duty to discharge a duty of protection and 
 kindness. He owed it to them, and it was the greatest of all 
 benefits he could confer on them, to uphold, as far as possible, 
 the assumed value of the shares, until, in the course of events,
 
 48 FACTS, FAILURES, AXD FEAUDS. 
 
 general credit revived, and he was enabled yet further to con- 
 solidate their interests. The plea was not without some 
 ground of justification. The best railway stock being at this 
 juncture unduly depreciated, it was not surprising share- 
 holders began to be watchful of their interests, which had 
 undergone such a decided change. A strong suspicion existed 
 in various quarters that the accounts of companies had been 
 framed with a view to purposes of deception. Mr. Hudson 
 resorted anew to his usual means to make good the promises and 
 hopes he had inspired. At the same time, he applied himself 
 to promote the business of the companies Avith which he was 
 connected, and with a success which only his knowledge, 
 energy, and systematic measures could have secured. Mr. 
 Hudson affected to lament before the York and North Mid- 
 land shareholders, that the Legislature and public opinion had 
 forced new undertakings upon them undertakings for which 
 he had been so much lauded, though which, under the guarantee 
 of the parent line, such large dividends had been promised, 
 and such high premiums had passed into the hands of the 
 original proprietors. Under the authorization by which those 
 extensions were carried out, " millions of money," as has been 
 well remarked, " passed into the pockets of the shareholders 
 just as effectually as if it had been voted directly to them by 
 the House of Commons, and paid by the Treasury from the 
 public revenue." Mr. Hudson also described some of those 
 acquisitions he was supposed to have made at the period of 
 general enthusiasm for extension, as necessary on the ground 
 of mere defensive action. " If they had not thrown out these 
 arms and branches," he said, "the proprietors would have 
 found their property irretrievably injured." At public meet- 
 ings and in Parliament, Mr. Hudson had boldly given his 
 voice in favour of unrestricted competition ; now he complained 
 of it, when the advancing tide of public inquiry threatened to 
 approach his feet. His most remarkable announcement,
 
 FACTS, FAILURES, AND FBAUDS. i'J 
 
 however, was to the effect, that there was a point beyond 
 which it would not be prudent to push amalgamation, and ho 
 believed they had now reached it. Mr. Hudson had pro- 
 bably contemplated, when affairs wore a brighter aspect, an 
 amalgamation of the Midland with the London and North 
 orn Railway, and possibly, in the evanescent dreams of 
 regal ambition, an amalgamation of all the railways in Great 
 Britain ; but in this address he recognized limits to his rule, 
 and openly discarded the very policy which had hitherto so 
 successfully sustained him. 
 
 George Hudson himself, doubtless, looked chiefly to ulti- 
 mate returns, and continually evinced his readiness to sacrifice 
 a large portion of his gains to the confidence he entertained 
 of being ultimately enabled, under a proper system, to rnako 
 all the lines over which he presided pay a full dividend. Un- 
 til that time came, however, he resorted to all manner of 
 means to establish his position. He could not afford to be 
 subjected to the least fluctuation of public opinion. He had 
 to keep his credit up at every risk, and whilst lavish at times 
 in the issue of shares, his skill and management gave him 
 power to put them in a way of affording eventually a fair 
 compensation for their outlay. The lines combined under 
 him constituted "a whole within itself," and the effect of his 
 policy was not only to prevent independent action on the part 
 of other companies, but to drive them into a common arrange- 
 ment in which he secured the chief advantage, and always at 
 the expense of the public. If an independent line on a route 
 in connection with the York and North Midland, the Eastern 
 Counties, the Midland, or the Newcastle and Berwick reduced 
 its fares, George Hudson assimilated the amount of reduction 
 on his own. The jealousy with which his system of combina- 
 tion was therefore regarded by proprietors of independent 
 lines may easily be imagined. He pressed his despotic 
 control to the utmost limit allowed by law, so that those 
 
 E
 
 CO TACTS, rAILIIEES, AKD FKAt'DS. 
 
 companies were thereby disabled from maintaining an effective 
 competition ; all the forms of inconvenience that could arise 
 from the arrangement of trains was inflicted on a rival. It 
 was considered a legitimate war, and one after another of 
 those independent lines, notwithstanding much determination 
 and perseverance, was brought to under this all-powerful 
 coercion. Next to the power attainable by combination in 
 making all independent lines tributary, and in imposing, with- 
 out reference to other companies, a high scale of charges, a 
 further motive with Mr. Hudson was the additional economy 
 with which lines thus brought into connection could be worked. 
 Indeed, little doubt can be entertained but that the railway 
 monarch, who thus temporarily held such undisputed sway in 
 these especial realms of government, originated that species ol 
 competition and internecine warfare which has lately so dis- 
 tinguished itself between the Great Northern, the London 
 and North "Western, and other associated undertakings. 
 
 As illustrating his powers of discussion, it may be mentioned 
 that on one occasion, when, against the wish of Mr. Hudson, a 
 desire was expressed in the form of an opinion, a committee had 
 been carried for the purpose of looking into the accounts, he ob- 
 served, on leaving the room, ""Well, gentlemen, I am chairman 
 of this committee, and of course you will not meet until I sum- 
 mon you." That summons was never issued. Mr. Hudson 
 left others to draw what inference they chose. For share- 
 holders to have passed any motion against his openly ex- 
 pressed opinion was a sufficient triumph in itself, without 
 its being suffered to proceed any further. As an act pro 
 forma, the appointment of the committee was not unreason- 
 able. But what did they want more ? Mr. Hudson was 
 at any time ready to pronounce on the satisfactory state of 
 affairs. 
 
 But the day was fast approaching when he himself, the great 
 railway king, would be called upon to render an account of his
 
 TACTS, FAILUKLS, AM) FllAl'DS. 
 
 rdship. It was evident that peculiar causes coir.' 
 i-igh heavily on the share market. The extent ui' 
 the engagements into which the great companies had been 
 induced to enter, with a view to their gigantic combinations, 
 the absorption of capital in these undertakings, and the 
 sacrifices sustained by those who had purchased at a pre- 
 mium shares that were now only negotiable at an alarming 
 discount, began to tell with disastrous effect. Shareholders 
 were no longer fed with hopes of new amalgamations, 
 purchases, extensions, by which, in their turn, they might 
 prey on others ; nor did purchasers choose to be content 
 with the fact that a certain rate of dividend had been paid 
 for years, but demanded a full and free inquiry, and would not 
 rest satisfied until a searching examination of accounts had 
 been presented. Stormy meetings were held in connection witk 
 the whole of the principal companies ; but Mr. Hudson, from 
 the prestige he enjoyed and from his confidence that the 
 present feeling of unpopularity would take a different turn, 
 did not anticipate, for a moment, being arraigned before the 
 public to support this asserted confidence ; and, to avert all 
 inquiry for the moment, increased misrepresentation was re- 
 sorted to. The corrupting moral effect of that high tide of 
 speculation, now returning to its original bed, had an un- 
 iouable influence with Hudson and his other associates 
 in glossing over the culpability of his acts. 
 
 A. glance at the relative position of the York, Newcastle, and 
 Berwick line, so largely dependent on the prosperity of those 
 routes with which it was in communication, will show how di- 
 rectly the general disturbance of traffic a disturbance insepar- 
 able from monetary pressure must have affected it. It was im- 
 possible in view of the general decline of railway property, and 
 the known disadvantages under which this line was labouring, 
 that Mr. Hudson could present with any safety or immunity
 
 52 FACTS, FAILURES, AND FBAL'DS. 
 
 from the most searching inquiry, in maintaining the usual divi- 
 dend, or represent as divisible that large amount of net revenue 
 by which he had been accustomed to buoy up hopes and to se- 
 cure confidence in his management. When the report of the 
 directors was read and presented for adoption in February of 
 1849, the apparent absence of lucidity in the accounts would 
 appear to have struck the shareholders, who appointed a com- 
 mittee of investigation to enter into his transactions, and to 
 put the whole affairs of the company under examination. They 
 would not consent to declining revenues being any longer 
 bolstered up, or the true resources of dividend mystified. 
 The suggestion of Mr. Hudson on a previous occasion 
 "to remember who had received the profits," was not 
 acted on at this time. Every one desired deliverance from 
 the labyrinthine maze into which they had been so blindly 
 seduced. 
 
 The York, Newcastle, and Berwick proprietors were the 
 first to impugn the management of Mr. Hudson.* A com- 
 mittee of investigation, appointed to look into the transactions 
 in which he had been concerned, in addition to making Mr. 
 Hudson a debtor for the amount of 11,292 on the Great 
 North of England purchase account, brought attention to the 
 fact that, besides subscribing for 3000 shares of Sunderland 
 Dock, on behalf and under the assumed authority of the 
 company, he had taken a further quantity of 2345 shares, the 
 calls upon which he paid, without any formal authority, out 
 of the funds of the company, such payment being kept from 
 the knowledge of the shareholders. Of the way in which this 
 
 * Between the 2Sth of February and the 17th of May, Mr. Hudson 
 resigned his position as chairman of the following railway companies 
 Eastern Counties, Midland, York, Newcastle and Berwick, and York and 
 North Midland, and committees of investigation were in each case ap- 
 pointed.
 
 PACTS, FAILUI1ES, ASD FBAUDS. 53 
 
 was managed, the summary of the report will speak for 
 itself: 
 
 " The first circumstances detailed by the committee are, that Mr. Hudson 
 being authorized by the company to subscribe for 3000 shares of the Sun- 
 dcrland Dock, took also into his name a further quantity of 2345 shares, 
 the calls upon which he paid, without the slightest authority, out of the- 
 funds of the company, such payments being kept from the knowledge of 
 the shareholders ; that Mr. Hudson now states he made the purchase of 
 these additional shares on behalf of the company, and that the committee 
 are of opinion, from the mode in which the transaction was conducted, as 
 well as from the fact, that no minute of the purchase was entered until two 
 years afterwards, when the appointment of a committee of investigation 
 was known to be in contemplation, that this statement cannot be received. 
 The committee, therefore, although they regret the individual consequences 
 that must follow, recommend steps to be taken to recover from Mr. Hudson 
 the amount thus misappropriated. The next case is, that the creation of 
 42,000 shares having been authorized for the Newcastle and Berwick line, 
 the issue was increased to 56,000, such issue being concealed from the 
 shareholders by delaying the completion of the register and other means 
 which ' call for the strongest reprobation ;' that this proceeding was 
 carried to an extent, and involved an amount of profit, which ' the com- 
 mittee hope aud believe to be without a parallel in the history of public 
 companies ;' that it was done entirely by Mr. Hudson and the secretary, 
 unknown to the other directors, and without minute or entry of any de- 
 scription; that the number of these shares taken by Mr. Hudson was 
 9956.J, and that the profit realized by him on these secret operations must 
 have amounted to 145,704, if the sales were effected at market prices. 
 The committee further state that Mr. Hudson, having been called upon, 
 had, in their opinion, wholly failed in offering any justification, and they 
 recommend that he be compelled by legal measures to make full restitution 
 without delay. On the third point of inquiry, namely, the York and 
 Newcastle Extension shares, the facts announced are, that Mr. Hudson 
 took 590 shares of this issue, to which he had no right, the aggregate pre- 
 mium on which amounted to 4,000, for which also the committee recom- 
 mended he should be required to account. They further report, that 
 although Mr. Hudson paid neither deposit nor calls upon 200 of these 
 shares from the date of their issue in February, 1817, until the present in- 
 vestigation, the parties to whom he sold them have been receiving divi- 
 dends upon them out of the funds of the company as regularly as if all 
 calls had been duly met ; and it is likewise observed that while Mr. Hudson 
 was making these sales for his own benefit, 9682 unappropriated shares
 
 54 TACTS, TAILI'IIES, AXD 
 
 were held by the company, which might hare yielded a profit of 100,000, 
 but that no such sales have ever been made for the benefit of the share- 
 holders. The fourth case detailed comprises the fact of 2000 shares of 
 the Brandling Junction Railway being Toted to Mr. Hudson by his brother 
 directors at a time when they were at 21 premium, being equivalent to a 
 bonus of 42,000. The fifth case is a transaction in iron. On the llth of 
 January, 1845, Mr. Hudson concluded a contract for 10,000 tons of iron 
 rails at 6 10*. per ton, and within three weeks he advertised for 20,000 
 as chairman of the Newcastle and Berwick line. Of this quantity 7000 
 tons were supplied to the company at 12 per ton out of the 10,000 he 
 had just purchased on his own account. The profit on this, the committee 
 remark, ' would amount to 38,500, and Mr. Hudson must have known he 
 was acting illegally.' The sixth and last statement is, that Mr. Hudson in 
 1845 took from the funds of the Newcastle and Berwick line 31,000> 
 which, was entered as a payment for ' land,' but which he applied to his 
 own purposes, none of the cheques by which he obtained this amount having 
 been handed to the parties in whose favour they purported to be drawn. 
 Since the appointment of the committee of investigation, however. Mr. 
 Hudson has refunded 20,000, ' with interest for above three years, during 
 which he had improperly held the money.' Finally, Mr. Hudson, in 1847, 
 drew out 40,000, which was charged under the head of ' works,' but 
 which he paid to his own private credit, at his banker's. This sum a' so, 
 with 2479 for interest, he refunded nine weeks back. It only remains 
 to be added, that the report thus presented by the committee is merely an 
 instalment of what they will have to submit to the shareholders as the re- 
 sult of their investigation, the duty being too extensive and complicated 
 to allow them as yet to announce its definitive completion." 
 
 The details rendered by the York and North Midland Com- 
 mittee were equally damaging, the Hull and Selby purchase 
 and the traffic accounts attracting their immediate notice : 
 
 " On the first point," it was remarked, "the committee confirm the ex- 
 istence of a difference between the amount paid by Mr. Hudson for certain 
 Hull and Selby shares en account of the company and the amount re- 
 ceived by him from the company, this difference being 3196 Cs. 6d. 
 At the same time they abstain from impugning the decision of the directors 
 on the 20th of April last, that Mr. Hudson should take the said shares back 
 and refund the 40,000 received for them, although they would have pre- 
 ferred that this repayment should have been in cash instead of in Mr. 
 Hudson's note of hand at twelve months' date. Regarding the traffic re- 
 turns, the committee mention that the weekly statements are necessarily
 
 i3, FAILURES, A2TD 1'EAUDS. 
 
 made up to some extent from estimates merely, and they subjoin a table, by 
 which it appears that the excess on these estimates in 1848, as compared 
 with tin- iK-iii.il i-;i:-!iiii::s, was 15,762, while, on the other hand, since the 
 1st of January, in the present year, they have been less than the earnings 
 
 -76. Finally, with regard to the assurance given to the last general 
 meeting, on the authority of Mr. Hudson, that the accounts to the 31st of 
 December were correctly stated, the committee announce that the accounts 
 
 ;.ot correct, and that several entries were altogether delusive, some 
 
 .a having 'been made by ilr. Peter Clarke in compliance with an 
 intimation conveyed to him to that effect verbally by Mr. Hudson, with- 
 out Mr. Clarke informing any of the other directors, who were entirely 
 ignorant at the time that any such improper entries were made in the books.' 
 The committee add that the accumulation of various irregularities since 
 
 .mounts to about 75,000, exclusive of all sums which may have 
 been improperly placed to capital account in former years ; that the books 
 have been kept and the business conducted in the most slovenly manner ; 
 that there has never been any regular account of stores ; that the trades- 
 men's accounts have never been colled for and settled as a preliminary to 
 the preparation of the various balance sheets." 
 
 A short time only elapsed before the clouds that hung over 
 Mr. Hudson's reputation had settled into thick darkness. It 
 was on the 28th of February that the half-yearly meeting of 
 the Eastern Counties Railway was held, some intimation as to 
 the true state of the company's affairs, or rather of the way 
 in which the accounts had been tampered with, had previously 
 reached the shareholders, and Mr. Hudson, it may easily be 
 supposed, was not disposed to encounter them. Accordingly, 
 he absjciitcd himself, and left them to "waste upon the air their 
 unavailing plaints." How they would have treated Mr. Hud 
 son, had he been present, may be judged from their proceed* 
 ings at a meeting held the succeeding May, when Mr. "Wad- 
 dingtou, M.P., the deputy-chairman, together with the com- 
 
 of investigation, attended. When the committee en; 
 the room, they were taken by the infuriated assembly to be 
 members of the board, and consequently were received witli 
 howliugs, groaniugs, hisses, contemptuous shouting, and de- 
 laughter. In the brief pauses of this continuous tempest
 
 56 FACTS, rAILUBES, AKD TEAUD3. 
 
 of abuse, Mr. "Waddington only gained the opportunity to 
 declare and acknowledge the unfortunate position in which they 
 were placed, and to announce the resignation of the hoard.* 
 
 Hardly, for either justice or favour, could Mr. Waddington 
 be permitted to proceed. So completely did he and his col- 
 
 * The following is the characteristic report of Mr. Waddington's 
 speech. Mr. Waddington was understood to say, in the partial calm 
 which ensued " Gentlemen, I am not at all sorry that it has fallen to the 
 lot of Mr. Meek to address you this day before I have done myself the 
 honour of addressing you. (Laughter.) To appeal to you as Englishmen 
 to listen to a man, who, though he may be under a ban now, yet feels that 
 before he sits down you will thank him for having risen (Confusion) 
 Gentlemen, I do not stand here for my own aggrandizement (Loud laugh- 
 ter, and cries of 'Sit down') but I stand here (A voice : ' How about 
 the 2000?') I stand here in a painful position ('No doubt you do.') 
 I say, it is most painful to think that one with whom I was formerly on 
 the most intimate terms of brotherly friendship ('Oh, oh,' and laugh- 
 ter) it is painful for me, I say (Groans, hisses, and cries of ' Sit down, 
 sit down,' accompanied with such general interruption that the hon. gen- 
 tleman found it impossible to bring his sentence to a termination.) * * 
 I feel that if the gentleman of whom I was speaking were to review what 
 has since passed, no one could feel more deeply for you than he ; but I am 
 sure also that that gentleman, from the large stake he held in the concern, 
 felt confident that he would ultimately be able to land you in a different 
 position from that in which you now are (' Oh, oh,' laughter, and ' How 
 about yourself?') I will not stand here and shield myself by saying that 
 I am not guilty, and that all the guilt rests with him. (Cheers.) * * * 
 I did object to any accounts being made out, having found that Mr. Hud- 
 son, who had anticipated a large increase of revenue from the Peterborough 
 line ('Question') had miscalculated the resources of that line ('Ques- 
 tion ;' and a voice : ' Why don't you speak about yourself?') Is it not 
 the question is it not the vital question ? whether our concern is earning 
 anything or not ? The Eastern Counties has paid its own way. (' Oh.') 
 If you will not listen to me if you'll not hear me (' No.') Very well, 
 gentlemen, take your own course, I will endeavour to do my duty. If you 
 will not (Cheers, 'oh,' and groans) if you will not listen to the state- 
 ment, I have no wish to go on. I ask you, as an act of justice, to hear 
 me (' Hear') ; I claim it as a right, but I v^ll not ask it as a favour. 
 (Cheers.) * * * I have not relied on my own figures in the matter ; I 
 am not going into the question with a view (A. voice, ' Why don't you
 
 FACTS, rAILUIlES, A> T 1> FBAT7DS. 57 
 
 leagues take a mere monetary view, in the light of profit and 
 loss, of the transactions for \vhich they were now held account- 
 clear your own character ?') But, gentlemen (' Oh, oh ! sit down.') 
 * * * The hon. gentleman (the chairman of the committee) asks us 
 where the money was to come from ? That is a question which I suppose 
 he wants me to answer. (' Hear, hear,' and c Yes.') I can only say that 
 the dividend was arranged for payment. Whether subsequent proceedings 
 here may have prevented that arrangement from being carried out it is not 
 for me to say ; but I repeat, it had been arranged for payment. ('How ?*) 
 That is the statement I have to offer on this point. (' How was it to be 
 paid ?') I say that arrangements had been entered into to obtain the money 
 for the purpose. (Several proprietors : ' But how ?') Why, by borrowing 
 the money. (' We thought so ;' laughter, hisses, and groans.) If any gen- 
 tleman fancies that this undertaking can be kept on without sustaining its 
 credit and borrowing money, he is much mistaken. (Renewed laughter, 
 4 Sit down.') I don't want to disguise the facts. (' Oh, oh.') You shall 
 know them. I will not disguise anything now, though we might have 
 done BO before. (' Yes.') In the estimate which has been commented upon 
 by Mr. Meek, he says, ' we threw out a bait to the shareholders.' I deny 
 it. (' Oh, oh.') What is the meaning of the term 'bait ?' (A laugh.) 
 It was our duty to give you an account of what we thought you had 
 realized, and so we did. With all due deference to the committee, I don't 
 wish to impute to them motives, (' Oh, oh.') I am not doing so. * * * 
 I will not speak of Mr. Meek's courtesy. I ask no courtesy from him, but 
 I do question the policy of making this meeting the medium of running 
 down any man, be he chairman, director, or shareholder. (' Oh, oh,' and 
 hisses.) Gentlemen, if you have patience, I will trouble you for only a 
 very few minutes, and, as this is probably the last time I shall have the 
 honour of addressing you (tremendous cheering) I hope you will grant 
 me a very small portion of your time. * * * Now, gentlemen, much has 
 been said respecting tho i'2000. I know that a resolution was passed, and 
 I know that I received the money. (Loud hisses and cries of 'Oh.') 
 * * Previous to their appearing in that room this day the board had 
 come to the unanimous resolution that they would resign (cheers) and ho 
 (Mr. W.) now offered tho proprietors their resignation." (Renewed cheers.) 
 Amidst the uproar that followed this announcement, Mr. Owen moved, and 
 Mr. Lowe seconded, " That a criminal information be laid against Mr. 
 Hudson, and also that a Bill in Chancery be filed against Mr. Waddington 
 and all the Directors of the Eastern Counties Euilway." Tho motion, how- 
 ever was not put. Mr. Waddington and his colleagues retired amidst tho 
 hootings of the shareholders, and an indescribable scene of uproar and con- 
 fusion ensued.
 
 FACTS, FAILURES, A2sD FEATTDS. 
 
 able, that the one vital question was conceived by them to be, 
 whether, taking their operations all in all, the company hr:d 
 not been benefited by their administration, and was not in a 
 far more creditable position than could otherwise have been 
 expected. The financial power of Mr. Hudson had been 
 hitherto regarded with a kind of enthusiasm, and the whole of 
 the directors sought refuge under his shadow. Mr. "Wadding- 
 ton, when craving attention at the commencement of his 
 speech, had told the shareholders that before he sat down they 
 would thank him for having risen ; and now, in face of the 
 report of the committee, which condemned the management 
 and showed its effects, he came out with the statement that 
 the dividend was arranged for payment ; whether subsequent 
 proceedings had prevented that arrangement from being carried 
 out, it was not for him to say. In answer to cries of " How?" 
 "But howr" "How was it to be paid?" Mr. "Waddington 
 replied " Why, by borrowing money ! " And amidst laughter, 
 hisses, groans, imprecations, and shouts of " "We thought so !" 
 Mr. Waddingtcn added- " If any gentleman fancies that this 
 undertaking can be kept on without sustaining its credit and 
 borrowing money, he is much mistaken." The resignation of 
 the board was then tendered and readily accepted, arid the 
 subsequently enacted scena proved Hudson's star had set 
 that henceforth, to his adorers, he must be a dens ex macliind. 
 
 The last accounts Mr. Hudson presented to the general 
 meeting of the Eastern Counties exhibited 103,087 as net 
 profit; but this was effected by placing 97,364 to capital 
 which ought to have been charged to current expenses, so that 
 the real balance was only 6323, a sum too small for any 
 dividend. Of the sum of 97,364 thus improperly charged, 
 64,478 was for expenses connected with previous periods, 
 and hence the actual earnings might still be considered as 
 showing a dividend of 3s. 4d., which, though no improvement 
 prior to Mr. Hudson's accession to office, was, in view of the
 
 TACTS, FAII.UltES, AND 1 KATES. G9 
 
 circumstances in which the Eastern Counties with other rail- 
 ways was then placed, somewhat favourable. Of other special 
 actions evolved by the Hudsonian policy, the report of 
 the committee spoke plainly enough : 
 
 " In their preliminary remarks the committee mention that they 
 commenced their investigation from January, 1845, when the capital was 
 2,906,780, which has since been increased to a nominal sum of 13,139,156. 
 They deplore that a spirit of hostility has been shown by the Eastern Union 
 Company, and intimate that the Harwich Steam-packet Company will not 
 require any money by way of loan. Referring to the Northern and Eastern 
 line, they propose that the directors of that line, who are also on the 
 Eastern Counties board, should receive pay only from one company. The 
 purchase of the St. Ivcs, March, and Wisbeach line is characterized an an 
 unfortunate transaction, and it is recommended that no expenditure should 
 be incurred for its extension ; considerable loss is also mentioned from the 
 unwise agreement for renting warehouses of the East India Deck Company. 
 Southend pier, which was purchased for 17,000, is recommended to be 
 sold, as there is now no reason to expect a railway will be made to it. Un- 
 justifiable extravagance is pronounced to have taken place in the erection 
 of stations, etc., for joint occupation with other companies. As regards 
 the contemplated amalgamation with the Norfolk Company, the committee 
 unanimously recommend that it should he effected. In relation to the 
 Kewmarket and Chestcrford Company they think an arrangement mutually 
 rirfnrtory may hereafter be made. \Vith respect to past management the 
 committee report that, as far as their observation goes, the conduct of the 
 affairs of the company under Mr. Bosanqutt, from the date of its formation 
 in 1835 up to his retirement in 1845, presents no ground for disapproval. 
 The last dividend paid under those circumstances was 3$. per share, which 
 in the opinion of the committee was fairly earned. In the last half-year 
 
 " ilr. Hudson joined in the direction. He stipulated for the entire 
 control; subsequently, howrver, agreeing that Mr. Waddington should 
 have the management of the traffic department. On the 22nd of December, 
 
 i was resolved to pay a dividend of 9*. per share. The half-year's 
 account extended up to the 10th of January, and, of course, therefore, at 
 this time they could not have been made up ; and it is not only i:i e\ 
 that the whole thing was arranged without any reference whatever to the 
 accounts, but also that when the accounts were made up they did not show 
 that any such dividend had been earned ; that the traffic accounts were 
 consequently altered to suit the circumstances ; that in < rding 
 
 year the same system has been pursued ; tind that it now appears that out 
 
 : 7M 8*. 4d. distributed in dividends from the 4th of January, 1815,
 
 60 TACTS, FAILURES, AND TEAUDS. 
 
 to the 4th of July, 1848, 115,278 8s. 5d. was procured by the alteration 
 of traffic accounts, and 205,294 7*. 5d. by improper charges to capital 
 account, thus making a total of 320,572 15s. IQd., which was not appli- 
 cable to dividends at all. Consequently, out of 545,714 actually divided, 
 only 225,141 was the amount that had been earned. Various other items 
 together with Parliamentary expenses, etc., of 9606 17*. 6d. have been 
 found inexplicable by the committee, and the whole of which last amount, 
 with the exception of 2000, Mr. Waddington and Mr. Duncan have stated 
 was disbursed by the company, through them, for services rendered, and in 
 a manner ' which did not leave them at liberty to give particulars without 
 implicating other parties.' The 2000 was given to Mr. Waddington for 
 services rendered to the company, but the committee have been unable to find 
 any resolution of the board to that effect. The result of the management 
 of the company, it is stated, has been to place it almost exclusively in the 
 hands of Mr. Hudson and Mr. Waddington, and the committee conclude by 
 remarking that as regards the way in which the power has been exercised 
 by the former gentleman, the statements they have given will relieve them 
 from the necessity of characterizing it. In connection with the present 
 position of the undertaking, the effect of a payment of dividends out of 
 capital and of a reckless expenditure must now be looked at ; but however 
 disproportioned to its value is the sum already expended, considerable 
 additions to that sum perhaps to the extent of 500,000 must be made 
 before the capital account is closed. The immediate point of interest is 
 the true state of the working account for the past half-year. That account, 
 as presented to the recent general meeting, exhibited 103,687 as net 
 profit ; but this was effected by placing 97,364 to capital account, which 
 ought to have been charged to current expenses, so that the real balance 
 was only 6323 a sum too small for any dividend. Of the sum of 
 97,364 thus improperly charged to capital account, 64,478 was for 
 expenses connected with previous periods so that the actual earnings of 
 the half-year may still be considered to show a dividend of 3s. 4rf. In 
 treating of future prospects, the committee recommend immediate steps to 
 ascertain and settle all claims and to close the capital account, also a reduc- 
 tion of the number of directors to twelve, a provision for the efficient audit 
 of accounts, the appointment of a law clerk at an annual stipend, the taxing 
 of all law bills at present unsettled, a diminution in the speed of the goods' 
 trains, a reduction of the passenger trains in the purely agricultural dis- 
 tricts, and the exercise of a general, but not too hasty, economy throughout 
 the establishment. In a postscript the committee report a circumstance 
 which seems only to have transpired at the last moment of their investi- 
 gation namely, the payment of a sum of 2000 to Mr. Hudson, and of 
 2000 to Mr. Waddington, in connection with a purchase of scrip of the 
 Wisbeach, St. Ives, and Cambridge line, ' for which no scrip could be found,"
 
 FACTS, FAILURES, AND FBAUDS. Gl 
 
 and for which the committee hare not been able to ascertain that any 
 other authority existed than that given to Mr. Eoncy, the secretary, by 
 Mr. Hudson and Mr. Waddington themselves. 
 
 " The list of witnesses comprises M. Davis, the accountant, who testifies 
 to receiving back his accounts in an altered state, and that ho had ' no al- 
 ternative but to obey his instructions and to adopt them ;' Mr. Owen, the 
 deputy-accountant, who says, ' it was a generally understood thing that 
 capital was to bear what revenue would not," and who ' does not remember 
 any account from December, 1816, to July, 1848, which did not come back 
 from the directors altered so as to increase the apparent sum applicable 
 for a dividend ;' Mr. Honey, the secretary, who states that the Examining 
 Committee in July, 1848, were Messrs. Hudson, Waddington, Paterson, 
 Gibbes, and Routh, but that 'these gentlemen never met as a body 
 Mr. Hudson and Mr. Waddington did meet;' Mr. Hudson, M.P., who 
 cannot charge his memory' with the alterations made by the directors, 
 and who feels ' the company were justified in putting a certain amount to 
 capital, or leaving it to be discharged on future years of success ;' Mr. 
 Waddington, M.P., who states that 'the course, with reference to the 
 revenue accounts, was, that the account was made out from the books, and 
 given to Mr. Hudson, he directing that certain items should be altered ; 
 Mr. Robert Mosely, the traffic manager, who last July ' was directed by 
 Mr. Hudson to tell them at the office to carry 10,000 to the ensuing half- 
 year ; that is to say, to make the expenditure in the printed report 10.000 
 less than was actually incurred ;' and who, on receiving the accounts from 
 Mr. Waddington to take to Mr. Hudson, was told by Mr. Waddington 
 'Now, mind, Mr. Mosely, I shall be no party to the cooking of those 
 accounts ;' Mr. John Duncan, the solicitor to the company, who states 
 that in 1815, when the dividend of 9*. was decided upon, ' no accounts had 
 been prepared,' and who declines to give particulars regarding the specific 
 amount paid for Parliamentary expenses, as he 'cannot do so without 
 implicating other parties 5' Mr. Richard Paterson, a member of the ' finance 
 committee,' to which committee the accounts were never presented ; Mr. 
 Thomas Gibbcs, another member of the same committee, who says that 
 'the chairman dealt with the accounts as he thought proper,' and who has 
 no recollection of 9000 having been paid for secret-service money,' 
 but who ' presumes if such payments have been made it was done to 
 farther the interests of the company ; and finally, Messrs. Reeves and 
 Belts, the auditors, who 'when they came to examine the capital account, 
 found that no single item agreed with the ledger,' and who, upon being 
 informed by the accountant that the accounts had been altered by the- 
 direction of the chairman, refused to audit the capital account, and entered 
 their protest against the report. The names of the committee by whom 
 this laborious investigation was conducted were Mr. Cash, Mr. Christy,
 
 62 FACTS, TAlLrEES, AXD FEAUDS. 
 
 Mr. Sherwood, Mr. Samuel Ellh, Mr. Mayhew, Mr. G-lyan, Mr. Meek, 
 and Mr. East." 
 
 "With such statements circulating through the country, and 
 the whole of the proprietaries of lines with which Mr. Hudson 
 was connected demanding investigation, it was not surprising 
 to discover that his popularity was decaying. There were, 
 however, those who still professed strong allegiance to him, 
 and it was occasionally predicted that he would recover his 
 position. Much, it was felt, depended upon the result of future 
 deliberations and the ultimate turn that the subsequent meet- 
 ings would take ; the majority, nevertheless, who appreciated 
 the weight of the heavy and grave charges brought against the 
 " Linendraper of York," entertained little hope of his ever 
 again assuming power where he had only just previously 
 exercised such unlimited sway. 
 
 During the Eastern Counties inquiry, Mr. Hudson was sum- 
 moned before the committee. "Never," remarks a spectator 
 of the scene, referring to Mr. Hudson's interview with the 
 committee, " never since his accession to his iron throne, was 
 the Member for Sunderland treated with so little ceremony." 
 " George Hudson," said Mr. Cash, the chairman of the com- 
 mittee and a member of the Society of Friends, " wilt thou 
 take a seat ? As thou hast the financial department of this 
 company under thy especial control, thou art required to 
 answer a few questions which the committee will put to thee ? 
 Didst thou ever, after the accountant had made up the yearly 
 accounts, alter any of the figures?" Mr. Hudson, in a 
 subdued tone, answered, after a moment's hesitation, " "VVeli, 
 I may perhaps have added a thousand or two to the next ac- 
 count." "Didst thou ever add 10,000?" continued Mr. 
 " Ten thousand 1 that is a large sum." " It is a large 
 sum, and that is the reason why I put the question to thee. 
 Wilt thou give the committee an answer, yea or nay ?" Mr.
 
 FACTS, FAILUHES, AND FRAUDS. 63 
 
 >n, in a very subdued tone, and evidently much cmbar- 
 rassed replied " I cannot exactly say what may have been 
 the largest sum I carried to the following account." " Perhaps, 
 George Hudson, thou couldst inform the committee whether 
 thou ever carried to the next account so large a sum as 
 40,000?" *Oh, I should think not so large a sum as 
 that!" "But art thou quite sure thou never didst ?" Here 
 again the deposed monarch of the railway kingdom showed 
 considerable embarrassment, on which his Quaker inquisitor 
 did cot further press the question ; and putting the interroga- 
 tories upon a sheet of paper, into his hand, observed, with a 
 dry nonchalance which must have been very annoying to the 
 former chairman of the company " George Hudson, take the 
 questions home with thee, and send written answers to the 
 committee at thy earliest convenience." It was observed that 
 from this time there was a marked change in the manners and 
 the appearance of Mr. Hudson. Formerly, even his colleagues 
 in the directorship were afraid to speak to him ; but now he 
 was all humility, mildness, and docility ; willing to answer any 
 question and to do anything he was respectfully required. 
 
 The disclosures that had been made necessarily excited 
 universal attention, and it was impossible but that Mr. Hudson's 
 political position should be compromised. On the evening of 
 1 7, he rose in his place in the House of Commons, during 
 the time of private business, on the presentation of two peti- 
 tions, relating to the concerns of the Eastern Counties Eail- 
 way, and entered into explanations respecting the course he 
 had pursued in connection with that undertaking. From 
 the silence with which his observations were received, it was 
 evident that he had been already judged. Nor could the 
 public at large enter into the prospective views he had enter- 
 tained, or consider, in the way of qualification, the ultimate 
 workings of the system of combination he had so extensively 
 adopted. They had to deal with the then position of the com-
 
 G4 TACTS, FAILUBES, AND FBAUDS. 
 
 panies, and with the balance of accounts that had been struck. 
 Thenceforth Mr. Hudson had no resort but in that privacy 
 from -which in 1833 he had emerged, and no safety but in 
 making large and ample restitution. 
 
 According to the reports furnished by the several com- 
 mittees of investigation, who examined Mr. Hudson's trans- 
 actions in connection with the railways of which he was chair- 
 man, he was held indebted in the sum of more than half a 
 million pounds. This, however, included sums which he 
 merely temporarily held for the discharge of past obligations, 
 or to cover prospective arrangements on behalf of the com- 
 panies for whom he acted, also the value of shares which had 
 been voted him by his co-directors, and the still larger number 
 which he had distributed to those whom it was thought neces- 
 sary to conciliate or reward for the furtherance of various 
 enterprises. Even before the reports were published, a large 
 amount of the sums thus held had been repaid, and he 
 endeavoured to make arrangements for satisfying the further 
 claims. Appended are the various principal items exhibited in 
 the form stated : 
 
 s. a. 
 
 Great North of England Purchase Account .... 11,29210 
 
 East and West Hiding Shares 96,000 
 
 Money belonging to Landowners 26,000 
 
 Contractors 42,479 13 7 
 
 North British Money 62,267 14 3 
 
 Iron Bails 66,203 12 11 
 
 Interest on two Bonds, Bank of England 1,747 4 5 
 
 Sunderland Docks 41,000 
 
 Profit on Berwick Shares 149,704, 
 
 Brandling Junction 42,000 
 
 Hull and Selby Purchase Shares 42 ; 000 
 
 Difference to return for Land at Londesborough 18,090 
 
 Total, 598,784 15 2
 
 I, 1-AlI.t "K! :s, AND FRAUDS. C5 
 
 L.nr^e as this sum uas, it did not approach in the slightest 
 . the losses that had been incurred through misrepre- 
 sentations in published accounts, the irregular transactions iu 
 purchases and amalgamations, and declarations of unwarranted 
 dividends, by which future proprietors had been subjected to 
 the greatest injury. Thus, in the case of one company, more 
 than a third of a million pounds had been distributed within 
 three years in the form of realized profit, which was not ap- 
 plicable to dividend at all, which had not been earned, and 
 which was only to be carried by improper charges to capital and 
 the doubtful re-arrangement of traffic. Then arose the huge 
 cry respecting the position of capital accounts, which raised 
 a newspaper controversy and a pamphlet warfare which has 
 scarcely subsided at the present day. 
 
 Meanwhile many claims were raised against him, and not- 
 withstanding, much to his credit, he repaid large sums and 
 made arrangements for others, such was the spirit of hostility 
 exhibited, that every conceivable method was attempted to 
 crush the last vestige of his popularity. The public, and, 
 above all, the most needy speculators those who had profited 
 by his advice, and, not content with first profits, had continued 
 their operations throughout the career of the crisis, until, like 
 the common gamester, they had staked their last farthing and 
 lost were now prepared to hound down to the death the indi- 
 vidual whom before they had lauded to the skies as the veritable 
 man of the age, the resuscitator of industrial prosperity and 
 the most successful financer of the century. Upon a sensitive 
 mind, like that possessed by Hudson, this severe revulsion told 
 with wondrous effect ; his non-appearance at the Eastern 
 Counties meeting, the absence of satisfactory explanations 
 pending any of the inquiries that were going forward, apart 
 from a domestic calamity, which was said to be traceable to the 
 final ill success of his career, seeming to give a finishing stroke 
 .opularity earned through the exercise of much \i::>lance
 
 G6 TACTS, FAILTJIIES, AND 
 
 and laborious exertion, but unfortunately alloyed with a large 
 amount of deception. His sudden decadence brought with ifc 
 consequences which appeared to testify the truth of the old 
 philosophy, that " when a man is down, he has few friends ;" and 
 sorely must have he been tried under the circumstances. It 
 was pitiable indeed to notice the rapid alteration in the robust 
 appearance and the rotund form of the great railway magnate 
 a few months after these discoveries, and although he evi- 
 dently endeavoured, with the natural force of his character, 
 to brave out the mighty hostilities waged against him, the 
 proof was there in the individual that they were not without 
 strong influence upon his constitution. A Hercules in mind 
 and body he, nevertheless, must have been to have stood out the 
 storm that raged around him. A massive pillar, as he was, cen- 
 tered in himself, but yet keenly susceptible of external in- 
 fluences he was tormented by every contending element. Ar- 
 raigned in Parliament, defendant in several suits in equity, dis- 
 carded and frowned upon by old associates, he was placed in 
 such a position as had never been witnessed since the days of 
 disgrace in the history of the South Sea bubble ; and, to add to 
 the contumely which was endeavoured, with almost unabated 
 eagerness to be thrust upon him, the perils of a public bank- 
 ruptcy were for months nay, nearly a year staring him in the 
 face.* To the possessor of Albert Gate, that princely and 
 palatial residence which soon passed from his hands to that of the 
 French Ambassador ; to the occupier of enormous landed 
 estates, which were presently to be sold to recoup the funds 
 displaced by his irregularities, and to one who was fairly estima- 
 ted to have accumulated property of the value of at least a 
 million and a-half sterling, a revulsion of this character could 
 but be almost insupportable. He nevertheless sustained himself 
 
 * It will be well remembered that this was the fact, and that bill trans- 
 action?, subsequently disclosed in other case?, showed to what desperate 
 straits he had been driven.
 
 TACTS, FAILURES, AND FRAUDS. C7 
 
 with au apparent amount of fortitude which was truly astonish- 
 ing, and, except to those personally acquainted with him, almost 
 iig belief. 
 
 For brief periods he sojourned on the Continent, making 
 occasional trips for the benefit of his health ; but he never, until 
 after the whole of the investigations were concluded, entirely 
 absented himself, but was seen at the "West End and in the 
 City, emulating, with bustling activity, notwithstanding the 
 ponderous nature of his person, the energy and vigour of 
 much more youthful men. Indeed his visits to the City, par- 
 ticularly to the neighbourhood of the Stock Exchange, were 
 alleged to be allied with speculative transactions, and those on 
 a scale of magnitude which it was affirmed brought consider- 
 able profit. So closely did he identify himself with this pur- 
 suit, during the transaction of some of the investigations, that 
 it was vindictively asserted by some of those whose opposi- 
 tion whether well-founded or not, is a difficult problem to 
 solve never experienced the slightest mitigation, that he " fol- 
 lowed the market even to its lowest point," being fully aware 
 of what the issue of the several revelations would be. 
 
 " Whether Mr. Hudson," remarks the Commercial Register 
 of is t9, " did speculate on the issue of his own character, has 
 never been satisfactorily proved ; but, at all events, it is clear 
 that the bargains transacted involved an enormous amount 
 of differences to be settled on the various account-days, and 
 that such description of stock-exchange gambling far exceeded 
 the operations concluded for actual transfer." This question is 
 a highly interesting one, even when regarded only in a 
 speculative point of view, in relation to a character whoso 
 scheming propensities would seem to have been based upon 
 ate ev.-ntualitics. If such were t; it would 
 
 be difficult to conclude otherwise than that his higher 
 qualities had stagnated, and that his paramount principle of 
 action did little honour to his heart. It is to be hoped, how-
 
 GS TACTS, FAILURES, AND rEATJDS. 
 
 ever, that such was not the case, and though he might have 
 operated as is fully believed, it might possibly be in connection 
 \vith other views than those which were supposed to guide his 
 conduct. 
 
 Many persons seem to consider that Mr. Hudson had a 
 singular immunity from criminal if not civil proceedings ; 
 but the latter were prosecuted with benefit to the companies 
 while the former would have been attended with risk, and 
 might probably have failed. But the low state of financial 
 morality induced by the speculation in railways to which all 
 classes had more or less abandoned themselves, served in a 
 manner to protect him, together with a sentiment still pre- 
 valent as to the difference to be dra\vn between acts performed 
 in an official capacity, in and for the assumed interest of com- 
 panies, and an independent transaction touching no other 
 than individual interests. A full, true, and explicit statement 
 and balance-sheet, detailing expenses, receipts, obligations, 
 and, profits, if any, was hardly, it was felt, to be expected ; 
 and, possibly, no complete exposition would ever have come to 
 light, but for the extreme depression that followed immediately 
 on an undue enhancement. The misgiving on the part of the 
 public blew to the winds the calculations of the best managers. 
 Hudson had good hopes of making all his investments per- 
 manently remunerative. He had plans yet to be matured, 
 expenses to be reduced, large traffic to draw from rivals .and 
 the development of resources already possessed, and profitable 
 contracts to fulfil. 
 
 An appeal may be said to have been taken from the verdict 
 of the public by the citizens of York, at a banquet given by 
 them to Mr. Hudson, attended by some of the most dis- 
 tinguished gentlemen of the city and county. The Mayor of 
 York presided, and on proposing the health of Mr. Hudson, 
 availed himself of the occasion to take u retrospective view of 
 bis services throughout the period sketched. The railway
 
 FACTS, FAILUBES, AND FRAUDS. GO 
 
 Mont hud now subsided into a healthful and ene. 
 course of persevering eflbrt to improve the prospects of the 
 lines it had called into existence, and leisure had been afforded 
 to trace the direct and indirect influence exerted by these 
 enterprises on every department of industry and branch of 
 commerce. Mr. Hudson was credited with ail amount of 
 prescience, sufficient, had it been confirmed, to have estab- 
 lished his reputation as a prophet. But the views and antici- 
 pations expressed from time to time by Mr. Hudson, and 
 which had the effect of maintaining impressions on the part of 
 the public out of which it was designed that capital should be 
 made, had proved generally delusive, and were entitled to no 
 higher rank than those promising suggestions by which the 
 members of any enterprise, resting on precarious foundations, 
 are apt to stimulate one another's flagging zeal, or encourage 
 one another's boundless aspirations. The public were dis- 
 posed to view this demonstration as an endeavour, on the part 
 of the good people of York, to burnish to its former splendour 
 an idol they could not yet bring themselves to throw down. 
 The speeches delivered on this occasion countenanced, to some 
 extent, this impression ; but they did not produce the desired 
 effect. 
 
 The wisdom of the policy of amalgamation, which Mr. 
 Hudson adopted, has since been justified on the material 
 evidences of prosperity which have attended the working of 
 the system. At the present point of organization, the rail- 
 way companies of Great Britain, although still contending 
 with multifarious and divided interests, are able to distribute, 
 yearly, upwards of nine million pounds in the form of dividend, 
 a:,d upwards of three million pounds in interest on debts. 
 This sum would seem to afford a fair per centage on the 
 288,000,000 actually spent on railway works, though when wo 
 add to this amount the 27,000,000 expended on preliminary 
 arrangements, the per centage is sensibly reduced. ^Railway
 
 70 FACTS, FAII/TEES, AXD FEATIDS. 
 
 property may yet be considered as labouring under undue de- 
 pression; and there is reason to believe that as soon as the 
 principle is found on which more effective co-operation can be 
 secured, a much more ample return will be afforded. After 
 emerging from a period in which conflicting claims and rival 
 projects were determined, not on their own merits, but according 
 to the political influence wielded by separate companies, or by 
 the amount of support which the unenlightened enthusiasm 
 of the public, stimulated by fictitious statements of accounts 
 on the guaranteeing line, might chance to furnish, the repre- 
 sentatives of the railway interest are now seeking some means 
 of mutual arbitration, or rather some principles for general 
 guidance. It is not, however, in the mere settlement of 
 quarrels between themselves, in the ingenious adjustment of 
 artificial regulations, or the happy conduct of intricate nego- 
 tiations that full development will be attained. These 
 companies, or at least their managers for certain of the share- 
 holders are appealing, through the press, to common sense 
 and the results of past experience to enforce intelligent action 
 would seem to have yet to learn what Hudson, in the course of 
 his aggressive and defensive tactics, never discovered that the 
 interests of the public, so far from being antagonistic, coincide 
 with the true interests of those concerned in carrying on these 
 undertakings. 
 
 A curious observer of men and manners, one whose know- 
 ledge may in some degree be relied upon, thus describes the 
 great and notable George Hudson : 
 
 " Mr. Hudson's personal appearance is calculated to strike 
 if not absolutely to command attention. There is a massive- 
 ness in the proportions of his bodily frame, evidently hereditary 
 in his stock, and inclining to symmetric development. His head 
 is large, and scantily supplied with gray hairs ; his forehead 
 broad, and somewhat elevated, The features of his face, lighted 
 up with small and somewhat penetrating gray eyes, might, from
 
 1ACTS, rAIl.UBES, AND TEA! 71 
 
 their si-verity of outline, convey to a casual observer the 
 impression of harshness of disposition. This severity, hov. 
 is of a purely mental character the indication of a powerful 
 will acting on thoughts arranged and re-arranged with inces- 
 sant activity, or upon schemes either altogether ideal or rigidly 
 practical, and long and closely nurtured and stimulated by 
 n vast range of feeling, which covers the whole ground of his 
 sympathies and passions. "When animated by conversation, 
 or when accosted, his countenance, usually hard and rugged, 
 relaxes into a pleasing smile. "While Mr. Hudson strongly 
 appreciates material conditions, and respects, above all things, 
 soundness in the subjects which engage his attention, he 
 :s, on the other hand, easily excited under sympathetic 
 conditions to take an ideal view, which disposes him, when- 
 ever the opportunity appears to be afforded of realizing his 
 aspirations, whether these are well founded or not, to over- 
 leap or set aside restrictions of a conventional, personal, mate- 
 rial, or even moral character, if any of these are in his way 
 obstacles that would fill, for others, the w r hole field of vision. 
 His strong hold of material relations ; his power of particu- 
 larizing all the minutiae of business, and of marshaling, by 
 the aid of memory, all the parts of a complex organization, 
 render his services invaluable in the execution of any design 
 depending on extensive co-operation. His benevolence, large 
 as it is, works within the sphere of his assumed interests, and 
 in favour of those with whom he is connected in the way of 
 organization. So large are his sympathies, where the arrange- 
 ment of a plan, or the execution of any design is concerned, 
 that he would sacrifice to the purpose in view, and for tin 
 of attaining his object, almost any personal consideration. As 
 to any opinions Mr. Hudson might form, or views that he 
 might take, though free to express them, he would not care to 
 them out. To anticipate any such m v< .->ity, he would 
 e a somewhat dictatorial air, and exhibit greater con-
 
 72 PACTS, FAILURES, A^J) IfUAUDS. 
 
 fidence tlian lie would be really entitled to command. The 
 power of organization he so largely possesses is usually directed 
 by some standard of ideal perfection. This strongly antici- 
 patire and ideal cast of mind, combined with practical ten- 
 dencies, serves with him to beautify every object of thought, 
 and to throw over every project he entertains a marvellous 
 degree of attraction, and which has its own share of influence 
 when he endeavours to impress his views on others." 
 
 Such indeed is the man who has become identified with 
 one of the most memorable periods of industrial progress, Avho 
 aided materially to promote those designs which were pre- 
 sently seized upon and adopted in a spirit of general enthu- 
 siasm ; who not only extended, but fortified, or rather consoli- 
 dated, a portion of the growing power, succeeding, as far as he 
 <lid succeed, on grounds partly fictitious and partly real, and 
 failing, where he did fail as in the Norfolk amalgamation 
 not because his schemes were inherently impracticable, but 
 through not observing the point at which their further prose- 
 cution was desirable. Taking a retrospective glance at the 
 whole of his career, there are many features in it deserving 
 credit, while others demand severe censure. Another cycle 
 has passed, and his acts, contrasted with those of other in- 
 dividuals, who have had the management of large public 
 corporate institutions, bear no unfavourable comparison ; but 
 yet against him must be recorded the blame of having, through 
 his irregularities, thrown the railway system into such disorder 
 and embarrassment as to prevent it ever attaining again the 
 confidence it once held in the estimation of the public ; and of 
 having set the example of systematically framing accounts to 
 deceive the several proprietaries of which he was the respon- 
 sible and governing head. Once only once was a suggestion 
 ever made to restore him to power ; and then the ground waa 
 tenderly felt, as it was well understood to be a most delicate 
 proceeding. The response, nevertheless, conveyed in a very
 
 TACTS, FAILURES, AND FRAUDS. 73 
 
 quiet and suitable manner, showed that the public would not 
 have tolerated the restoration, and from that time his presence 
 \vithin railway circles has scarcely ever been witnessed. Ho 
 has, nevertheless, mixed up in other large speculative trans- 
 actions, foreign undertakings, operations in iron, and similar 
 adventurous schemes, but it is feared with not a tithe of the 
 success of his earlier career. With a character tarnished, and 
 the loss of the greater part of his fortune, a considerable 
 portion having gone to reimburse the several companies their 
 respective claims, he still remains Member for Sunderland, 
 despite the attempts that have been made to obtain his resig- 
 nation, and notwithstanding the great " blot i' the escutcheon," 
 he has done the State some service, and the country, both 
 directly and indirectly, though at an enormous sacrifice, partial 
 but permanent benefit.
 
 FACTS, FAILURES, A> T D FRAUDS. 
 
 CHAPTER III. 
 
 WALTER WATTS AND HIS FRAUDS UPON THE GLOBE 
 ASSURANCE OFFICE. 
 
 The Age of Appearance Watts' s magnificent but brief Career His 
 success as a Man of Fashion and Wealth His luxurious Mode of 
 Life, alleged Sources of Income and Theatrical Speculations 
 Failure of the Latter, and the Discovery of his gigantic Frauds 
 The Investigation at the Globe Assurance Office The Trial of the 
 Delinquent, and his Suicide in Newgate. 
 
 CERTAINLY at no former period of the history of this country 
 has so much importance been attached to show, and so little* 
 comparatively, to substance, as at the present time. If in 
 private life a man live in a mansion, maintain a large establish- 
 ment servants an equipage, and all the other outward ap- 
 pearances of wealth, few people care much to inquire whether 
 or not he possesses the reality credit, almost without limit, is 
 at his command, and without question. He may, if so disposed, 
 make that credit, which the gullibility of mankind and the 
 competition of trade offer to him, the means of extending his 
 operations to any amount realizing the superfluities furnished 
 to him on such easy terms by the too credulous tradesman, to 
 meet the demands of those who have sense enough to prefer 
 cash in hand for their goods to a long list of names on the 
 debtor side of their ledger, with heavy sums set against them, 
 uncertain whether those names represent persons of means 
 sufficient to cause at the proper time the transfer of the debit 
 figures to the other side of the page. A passable address an 
 adequate stock of cool assurance a tolerable knowledge of 
 figures and an aptitude for ringing the changes in matters of
 
 TACTS, FAILUHES, AND TUArDS. 75 
 
 riuance arc all that is necessary. With these a man may 
 start as a millionaire, and for a time vie with the wealthiest in 
 expenditure, and possibly though, happily, for the sake of 
 morality, this is the very rare exception by some grand coup, 
 in the end establish himself in the position he has been assum- 
 ing. This is the goal which the general class of adventurers 
 have probably always in view when they enter upon their 
 career ; but how few of them ever reach it ! 
 
 But some do not wait even to make the experiment through 
 credit ; they devise other means to secure an entrance into 
 the world, and their extravagant notions lead them to engage 
 in crimes which, concealed for a short period, enable them to 
 make an appearance, though ultimate discovery shatters the 
 splendid fabric which they have created only to make their 
 decadence the more notorious and disastrous. 
 
 It was somewhere about the year 184i that the name of 
 Walter Watts became associated with fashionable life. He 
 appeared suddenly, and as suddenly made his presence felt. 
 Ilis course was like that of a meteor brilliant but brief. 
 Where he came from nobody knew. What were his resources 
 nobody could ascertain. It was clear that they were ample for 
 the gratification of the most extravagant tastes. He spent his 
 money like a prince. lie was naturally luxurious, and fond of 
 pleasure in every form a devoted disciple of Epicurus. He 
 was the patron of art the encourager of sport, if not of science. 
 At all the theatres he was well known. He had his box at the 
 Opera, and the entree to the sanctum sanctorum behind the 
 scenes. He addressed the coryphees by the affectionate but 
 professional appellation " dear," and liberally atoned for his 
 familiarity by champagne suppers after the ballet. With 
 prima donnas and dramatic notabilities he was on terms of 
 intimacy; and at one time he was the actual proprietor of two 
 metropolitan theatres. He kept an establishment in town in 
 the most fashionable <jii:irter of the West-end, and he had his
 
 7G TACTS, FAILURES, AND FRATJDS. 
 
 country house at Brighton, at both of which he dispensed a 
 princely hospitality. He was a connoisseur in wines, and 
 stocked his cellars from the most celebrated vintages regard- 
 less of price. He had a decided penchant for gallantry, and 
 spent much of his time and, as a matter of course, no incon- 
 siderable sum of money in the company of that especial class 
 of the fair sex who are usually designated gay. His equipage 
 was faultless ; his horses were the envy or the admiration, 
 sometimes both, of the habitues of Rotten Bow ; and his tiger 
 was a marvel diminutive, agile, clean-limbed, well dressed, 
 perfect in his knowledge of matters equine, and an adept in 
 that sang froid and ready wit, couched generally in the most 
 modern slang, which, in this species of the serving class, is 
 considered perfection. 
 
 But who was he? And what was he? From what source came 
 his apparently inexhaustible means ? The greater his expendi- 
 ture, the more he had to spend. AYas he the heir apparent or 
 presumptive to some large landed estate, who was, for the grati- 
 fication of the moment, saddling himself with future liabilities 
 in the shape of post-obits ? Against this hypothesis it was 
 observed, that those who were unquestionably of " the upper 
 ten thousand," and who are always ready, notwithstanding 
 their habitual exclusiveness, to receive those who are of their 
 own order, whatever their extravagances or eccentricities, held 
 studiously aloof from him. The scions of the aristocracy, and 
 the junior representatives of the good and wealthy families, to 
 equality with whom in point of expenditure he seemed to 
 aspire, were not among his companions. The question, " AVho 
 is he ? " had not to them received a satisfactory answer. He 
 could not have made a fortune at Carson's Creek, or at Balla- 
 rat, for the riches of California and Australia were as yet 
 undiscovered. 
 
 Some said that he was the depository of certain State secrets, 
 which enabled him to operate with effect in the public stocks.
 
 TACTS, rAIMKi:*. AM) 1TKAUDS. 77 
 
 he -was frequently in the City; but there was no proof of 
 frequent or extensive dealings with jobbers or brokers, much 
 
 ere there any such large transactions in his name as to 
 justify the supposition that Sir Eobert Peel had confided to 
 him, for his particular benefit and profit, what that prudent and 
 far-seeing statesman concealed from his own party the con- 
 templated abolition of the corn laws, and the establishment 
 of free trade. Again, it was hinted that Davis, of betting 
 celebrity, had taken him by the hand, and initiated him into 
 the art and mystery of " making a book." But though he 
 moved to some extent in sporting circles, it did not appear 
 that he was a member of Tattersall's, or that he " did business " 
 largely in the " ring." He might be occasionally seen at the 
 betting-houses, and rumour whispered that he was a welcome 
 customer at most of them, though the balance of profit and 
 loss in his operations in that quarter was decidedly in favour of 
 the proprietors of those attractive establishments, which subse- 
 quent legislation has since, in its capacity of guardian of the 
 morals of the nation, thought it necessary to put down. That 
 he had a City occupation was an ascertained fact, for regularly 
 as the morning came a neat carriage and pair, or a brougham 
 of the most approved and luxurious build, conveyed him to the 
 neighbourhood of Cornhill, and there set him down. It waa 
 in vain to search the " London Directory," amongst the lists 
 of bankers and great City merchants, for his name. It was not 
 to be found. But the curious inquirer, who happened to be in 
 Cornhill or Leadenhall Street when the carriage alluded to 
 drove up, might observe, if he followed the occupant who 
 alighted from it for about a couple of hundred yards, he would 
 see him enter the Globe Assurance Office. Yes, "Walter AVatts 
 
 ii employe in that respectable institution not the manager 
 with au income of 800 or 1000 a-year, but a simple cl 
 clerk in the cashier's department, with a salary of something 
 like 200 a-year, having been placed tliere by the intere.-t of
 
 78 TACTS, FAILURES. A>~D PEATJDS. 
 
 liis father, who for near forty years had filled with credit a com- 
 paratively subordinate position in the same office. 
 
 But 200 a-year would not pay for young Watts's gloves 
 and cigars, much less his town-house and his country-house, 
 his carriages and horses, his opera-hox, his banquets, and his 
 hundred other sources of expenditure, to say nothing of his 
 theatrical speculations. Certainly not ; but then Walter Watts 
 had made a great discovery. He was a young man of great dis- 
 cernment, quick apprehension, and not over-burdened with 
 moral principle. He found, in the conduct of the financial 
 affairs of the Globe Assurance Company, an inexcusably lax 
 system, which his ingenious mind saw might be made condu- 
 cive to his own pecuniary profit ; and, after some short consi- 
 deration, he proceeded to turn it to account. His position gave 
 him access to the most valuable of the books the cheque-books 
 and the banker's-books ; and, by a system artfully conducted, 
 he fraudulently obtained funds which, by passing through his 
 own bankers lulled suspicion, to the extent of 700,000 ; and 
 was, after all, only through a comparative accident discovered, 
 though his expensive style of living, and his heavy theatrical en- 
 gagements, which it was \vell known could only be conducted at a 
 large sacrifice, should have long before attracted the notice of 
 the directors, and led to the proper and necessary investigation. 
 The City life of Walter Watts merged more in the duties of 
 his office, where from ten till four he was supposed to be fol- 
 lowing the ordinary routine of official responsibility. His 
 attendance, though punctual, involved no heavy labour ; it was 
 mere check work, which, from the loose system adopted, re- 
 solved itself into no check at all, and consequently he had the 
 greater time and opportunity to arrange the preliminaries of 
 those frauds which he subsequently followed out with so large 
 a share of temporary success. These he no doubt at first 
 perfected by a slow and gradual process ; but confidence once 
 attained by the ease with which he arranged his malpractices,
 
 V.VCTS, TAILUBES, AND FEAVUS. 70 
 
 !i:duced the perpetration of frauds which, originally commenc- 
 ing with hundreds of pounds, eventually terminated by turning 
 those hundreds into thousands. His City life over, he fre- 
 quented his West-end haunts, and divided his attention between 
 sporting and other gay amusements, until he launched into that 
 adventurous career as lessee of two theatres, having first adopted 
 the Marylebone, and after the well-known " neat little house " 
 in "Wych Street. 
 
 Indeed, the most remarkable part of the career of "Walter 
 Watts was his connection with the London stage, over which, 
 for a time, he exercised a really important influence. Of the 
 drama he, it is averred, knew nothing whatever, either from a 
 literary or from a practical point of view; but to the individual 
 vrho has a taste for magnificence, and is fond of pleasure, the 
 position of a theatrical manager will always have its fascina- 
 tions. It was impossible for a London theatre to be more 
 obscure than the house in Church Street, Marylebone, before 
 the year 1847. The building was large and commodious 
 enough, but the neighbourhood was and is diametrically op- 
 posed to prosperity. There is a high class which, if it patron- 
 izes the drama at all, visits the chief metropolitan theatres in 
 private carriages ; there is a class so low, that it scarcely has 
 money to spend on the humblest pleasures. But an opulent 
 middle class is altogether wanting, and it may be taken as a 
 maxim, that in the absence of persons answering this descrip- 
 tion, the success of a suburban theatre is altogether hopeless. 
 
 In the autumn of 1847, however, the Marylebone Theatre 
 was suddenly raised into celebrity by the announcement that 
 it would be opened for the performance of the "legitimate" 
 drama, under the management of Mrs. "Warner. Some 
 before, Sadler's Weils had been opened for a similar purpose' 
 and the experiment made in the Pentonvillo suburb by Messrs. 
 Phelps and Greenwood resulted in a success which continues 
 to the present day. Mrs. Warner, unrivalled in a cerium Hue
 
 80 TACTS, FAILTJIIES, A^D 
 
 of her profession, had been associated with Mr. Phclps in the 
 direction of Sadler's Wells, when the change for the better 
 took place ; and if a similar reform was to be effected in the 
 more northern suburb, the good work, it seemed, could scarcely 
 have been entrusted to better hands. She was, moreover, 
 completely at liberty, having retired from the theatre she had 
 for some time adorned, and was, therefore, in a position to 
 direct all her energies to a new sphere of action. 
 
 The great respect deservedly felt for Mrs. "Warner, and the 
 hope that a hitherto obscure theatre might, under proper 
 management, become a home for the legitimate drama, ren- 
 dered the opening of the Marylebone Theatre in 1847 one of 
 the great "facts" of the day. The literary world, especially 
 that portion of it which, dissatisfied with the lighter kinds of 
 theatrical entertainment, is ever ready to expect a " good 
 time," when the Elizabethan drama shall be rivalled by the 
 Victorian, rallied in great force on the first night, and expec- 
 tations were more than satisfied. The company, headed by 
 Mrs. Warner, was quite up to the average level of talent ; the 
 appointments of the stage were of that tasteful kind that had 
 distinguished Sadler's Wells since the days of its reformation ; 
 and the audience part of the house was marked by every atten- 
 tion to elegance and comfort. In a word, the task which Mrs. 
 Warner had taken upon herself was most creditably per- 
 formed. 
 
 The aristocrats of Marylebone might, without compromis- 
 ing their character for taste and gentility, have liberally pa- 
 tronized the theatre .thus opened in their neighbourhood ; for 
 the management was respectable to the highest degree, and 
 the plays produced evinced a desire to render popular the 
 intellectual and poetical drama. The works of the old English 
 authors were ransacked for pieces that had not been witnessed 
 for generations, and some of them were revived in unexcep- 
 tionable style. At no house in London was a more lofty
 
 TACTS, FAILUBES, AND FBAUDS. M 
 
 standard maintained than at the Marylebone, but unfortunately 
 a taint of vulgarity, the result of antecedents, clung to the 
 edifice ; the boxes remained unoccupied, and at the end of her 
 first season Mrs. Warner laid down the sceptre she had so 
 honourably wielded, convinced that every attempt to render 
 the Marylebone a fashionable, or even " genteel " theatre, must 
 end in disappointment. 
 
 The house, however, remained open under the manage- 
 ment of Mr. Walter Watts, whose name was well-known in 
 the establishment as the real tenant of the house during Mrs. 
 Warner's management, but who had not hitherto been con- 
 spicuous in the eyes of the general public. The source of the 
 wealth that enabled him to carry on a speculation that to most 
 men would have been speedily ruinous, was a profound mystery, 
 and the fact that he lived in a state of luxury at a house 
 in St. John's Wood, with an occasional residence at Brighton, 
 increased the singularity of his position. It was ascertained 
 that he was a clerk at some large office in the City ; but as this 
 knowledge rather embarrassed than solved the question which 
 his strange prosperity had raised, bold hypotheses were started 
 and circulated on the interesting subject. Here intervened, 
 for his especial behoof, the sort of gilded Iruit repandu which 
 so long sustained his credit and rendered his position compara- 
 tively secure, lie was a fortunate speculator on the Stock 
 Exchange, and there existed, it was said, a communica- 
 tion between him and the French government (then under 
 King Louis Philippe), by which he received early and exclusive 
 information for his guidance. This in turn served him, it was 
 alleged, to have communication with our own authorities on 
 special topics, of the knowledge of which he made good 
 use. There were also successes on the turf, which increased 
 the gain made by speculations in stocks and shares. Actors aro 
 not used to commercial affairs, and those at the Marylebone 
 could not be blamed if they were willing to credit reports
 
 2 FACTS, FAILURES, AXD FEATJDS. 
 
 that pursued the character of a man who was an excellent 
 paymaster if they had a cause for respect, when the directors 
 of the Globe had no cause for suspicion. 
 
 During the season of 1848-9, Mrs. Mowatt and Mr. Da- 
 venport, two American artists, commenced an engagement 
 at the Marylebone Theatre, where they had been preceded by 
 several English " stars" of the first magnitude. The gentle- 
 man was affirmed to be the best general actor that ever 
 visited us from the other side of the Atlantic ; the lady was 
 rather an accomplished amateur than a regular actress, and in 
 her own country had enjoyed the fame both of a poetess and of 
 a beauty. She came to England accompanied by her husband, 
 and the letter of introduction that she brought with her at 
 once procured her admission into the most unquestionably 
 respectable circles. She and Mr. Davenport made their debut 
 at the Princess's Theatre, when under the management of Mr. 
 Maddox ; they then played at the old Olympic Theatre, when 
 it was conducted on " legitimate" principles by Mr. Spicer ; but 
 it was not till the engagement at the Marylebone that the lady 
 attained the full measure of her ability. In a long succession 
 of known plays, she acted characters commonly awarded to 
 artists of the first order ; new works were written for the 
 express purpose of displaying her talent; and a four-act 
 drama from her own pen was one of the leading novelties of 
 the theatre. 
 
 However, it was not so much by her exhibition on the 
 stage, as by the combination of her professional with her 
 social position, that Mrs. Mowatt gained her chief celebrity. 
 Walter Watts, as manager of the Marylebone Theatre, did 
 all he could to encourage the young and beautiful " star," 
 who brought to his house a class of persons such as had never 
 before assembled in the neighbourhood of Portrnan Market. 
 Her dressing-room was fitted up with such exquisite taste, 
 that, situated as it was below the stage, it resembled rather a
 
 FACTS, FAILURES, AXD FRAUDS. 83 
 
 grotto, than a closet in a minor theatre. There the 
 queeii of the evening, at the conclusion of some sucr 
 performance, would receive visits from ladies and gentlemen 
 of high rank in literature and the arts ; there also little sup- 
 pers, in the most elegant and expensive style, were given to a 
 select few. 
 
 Still, in spite of the excitement produced at the Maryle- 
 bone, a permanent prosperity seemed unattainable, and Walter 
 Watts wished to continue his theatrical speculations in a 
 more central part of London. The Olympic Theatre, in Wych 
 Street, Strand, having been burned down, a new house of more 
 substantial material had been built in its stead, and this was 
 taken by AValter Watts, with the intention of opening it on 
 the " boxing-night" (Dec. 26) of 1849. Nevertheless, the per- 
 formances continued at the Marylebone till within about a fort- 
 night of this period, and, a few nights after they had ceased, 
 Watts celebrated his retirement from the theatre he had 
 managed with so much spirit, by giving a farewell ball and 
 supper on the stage, to which all the company and many 
 private friends were invited. It must not for a moment be 
 imagined, that there was anything in these gaieties of the 
 Marylebone Theatre that in the slightest degree violated the 
 rules of propriety. The liberality with which the entertain- 
 ments were provided was, it is confidently asserted, fully 
 equalled by the decorum which prevailed throughout them all ; 
 and they were participated in by persons of both sexes upon 
 whom the breath of suspicion could not rest for a moment. 
 Walter Watts was, to all appearance, a kindly, free-hearted 
 gentleman, who having an infinite quantity of money at his 
 command, applied it to the laudable purposes of patronizing 
 art and making his friends happy. If the source of his means 
 was a mystery, there was no mystery about his expenditure. 
 The brilliancy of the Marylebone Theatre was the subject of 
 conversation all over London during the year 18-19 ; the only
 
 81 PACTS, FAILUIIES, AND FHAUDS. 
 
 persons who knew nothing about it being, apparently, those 
 chiefly interested, namely, the directors of the office in which 
 he was a humble subordinate. 
 
 At the farewell ball given on the stage of the Marylebone 
 Theatre, an incident took place, which partially reminded some 
 present of the " Feast of Belshazzar." In the course of a 
 dance, after the magnificent supper, that had seemed the crown- 
 ing effort of the occasion, the dress of one of the young girls, 
 a member of the corps de lallet, coming into contact with the 
 foot-lights, caught fire in an instant, and the graceful figure 
 that had appeared, a few minutes before, all animation and 
 gaiety, was converted in an instant into a revolving mass of 
 flame, from which piercing shrieks were issuing, and which 
 was avoided by all the rest of the dancers, fearful that their 
 light dresses would also have ignited. The accident did not 
 prove fatal, as the young creature, after several weeks' illness, 
 recovered under the medical care generously provided for her 
 by Walter "Watts ; but the sudden change of a scene of 
 mirth into a spectacle of terror, made a painful impression 
 on many minds, and when the career of the host was brought 
 to a sudden and violent termination, early in the spring of 
 1850, the thought of the farewell ball at the Marylebone 
 Theatre, with all its attendant horrors, reverted to the memory 
 as a sort of omen that had foreshadowed a future calamity 
 infinitely more awful. 
 
 In accordance with the intentions of Walter Watts, the 
 new Olympic Theatre, fitted up in the manner that in all 
 essential particulars has continued to the present day, was 
 opened with an efficient company on the 26th of December, 
 1849, and an address in verse, written for the occasion, was 
 spoken by Mrs. Mowatt. The same style of management that 
 had distinguished the Marylebone Theatre was likewise carried 
 on at the Olympic, both on the stage and behind the scenes, 
 with the exception that here everything was still more brilliant.
 
 TACTS, FAILURES, AND FHAUDS. 85 
 
 .s of literary pretensions were produced with admirable 
 : the entertainments given to the friends and the recog- 
 nized halitucs of the establishment, were more costly than 
 f\vr, and the only persons who had any cause to regard with 
 disaffection the new establishment were the old theatrical 
 managers, who suddenly found themselves in competition with 
 a rival of boundless liberality, and apparently inexhaustible 
 resources. Prom the very first night of the re-opening, how- 
 ever, the speculation was evidently a failure, and the box- 
 openers of the establishment, who astounded the patrons of 
 the house by the splendour of their liveries, were but very 
 lightly employed. The histrionic force was great, novelty after 
 novelty was produced ; but in no one instance, not even in that 
 of the Christmas pantomime, was a permanent success obtained. 
 One essential qualification was wanting in the manager, and 
 that was a knowledge of the business in which he had em- 
 barked. Even if his money had been honestly acquired, the 
 constant excess of outlay over profit must have eventually led 
 to bankruptcy. 
 
 Eumour, which had about this period been very busy with 
 the fame of Walter Watts, raised many singular conjectures with 
 regard to the manner in which he acquired his means. These 
 were baffled and allayed for a time by the assertion of his 
 friends and those countless parasites who always attach them- 
 selves to men who float on the tide of prosperity, and who are 
 lavish in their expenditure and social enjoyments. It must be 
 confessed they worked well in supporting the reputed wealth 
 of their patron. The old stories of Stock Exchange specula- 
 tion, successes on the turf, and other incidental adventures, 
 were revived in the most exaggerated forma to prove that his 
 money, if not honestly, was so far legitimately acquired, and 
 seemed to satisfy and appease the lurking curiosity of the 
 moment. But still the competition he had raised, and the 
 profuse manner in which he entertained his friends for many
 
 86 FACTS, FAILURES, AND FEATJDS. 
 
 of the latter enjoyed his hospitality, and then doubted either 
 its necessity or prudence gave rise to prejudicial surmises 
 which subsequently became realized, and that in the most 
 deplorable form. 
 
 Early in 1850, when the career of the Olympic was yet pro- 
 gressing, although its fortunes were far from brilliant as a 
 pecuniary speculation, a report was spread that defalcations 
 and abstractions had been discovered in one of the large 
 assurance offices. For a day or two the statement was circu- 
 lated without assuming any true form or substantiality, but 
 very shortly one of those curt intimations that sometimes 
 appear in the City articles of the daily journals, announced 
 that the Globe Assurance Company was the establishment 
 interested ; that "Walter Watts was the pronounced delinquent, 
 and that the books would be immediately put under a course 
 of strict investigation. But the allegation thus formally made 
 was not implicitly believed, and his friends then again en- 
 deavoured to support his reputation by asserting, in the first 
 place, that he would not be found to have committed the frauds ; 
 and in the next, reducing his position of responsibility by 
 averring that, if he had interfered with the funds of the office, 
 he could not be legally proved guilty, as he was, in fact, a 
 partner holding shares in the office.* 
 
 The discovery of the frauds committed came like a thunder- 
 clap on the members of the theatrical profession. Here, then, 
 the mystery of Walter "Watts's inexhaustible wealth was solved 
 at last. The bubble, which had glittered so brightly, was burst. 
 But a few days before, a play, produced at the Olympic, had 
 been dedicated by its author (a gentleman high in the literary 
 world) to Mr. Watts, as a probable regenerator of the drama ; 
 and now the Maecenas stood before the world as a mere vulgar 
 
 * This report no doubt arose from the position he himself assumed, as 
 will he seen, by the report of the trial, in the evidence of Mr. Tite, the 
 deputy-chairman of the company.
 
 FACTS, FAILURES, AND FBATTDb. 87 
 
 criminal. Among the members of his company there is reason 
 to believe that this frightful change awakened feelings of un- 
 feigned sorrow. His management had been obviously and 
 notoriously imprudent, but his transactions in connection with 
 his theatre had ever been distinguished by honour and integrity. 
 To the very last he fulfilled engagements which he might easily 
 have evaded, and no manager in London was less open to the im- 
 putation of sharp-practice or shuffling than Mr. "Walter Watts. 
 Before quitting this remarkable but chief episode in the 
 career of this " high-art criminal," attention should be called to 
 one fact, the ignorance of which has furnished occasion to much 
 calumny and injustice. Many persons have supposed that the 
 theatrical speculations of Mr. Watts were the cause of his 
 crimes, and on this account the position of Mrs. Mowatt has 
 been fearfully misconstrued, especially by her own country- 
 men. Now, it is perfectly certain that Walter Watts was 
 deeply involved in crime long before his managerial frauds 
 began, and long, indeed, before the American artists, who 
 acquired so much celebrity at his theatres, had quitted their 
 native land. When they came to England, they found Watts 
 the established director of a London theatre, at which the most 
 respectable members of the theatrical profession had " starred ; " 
 and if his outlays were more than ordinarily profuse, Ameri- 
 cans, whose personal style of living is described as elaborate, 
 and even more than Parisian, had no right to be suspicious, 
 when Englishmen, who had much better opportunities for 
 forming a correct judgment, looked on without mistrust. As 
 for the costly presents made to Mrs. Mowatt, and the splendid 
 appointments of her dressing-room, they could scarcely as- 
 tonish a lady fresh from a country where tho adulation of 
 talent is carried to an extent that seems almost ridiculous in 
 Europe ; and certainly, if any presents at all are within the 
 limits of propriety, they are those that are made by a manager 
 to his chief artist.
 
 88 TACTS, FAILURES, AJfD FBATJDS. 
 
 No sooner was the fact of the Globe frauds publicly an- 
 nounced, than the Olympic Theatre was closed, and the gay 
 entertainments in Wych Street abandoned. For some few 
 days Walter "Watts remained at large, having, it may be said, 
 almost defied the directors by asserting his position as a share- 
 holder ; and, with characteristic coolness, referred them to the 
 treasury of the theatre, or his solicitors, if they desired further 
 explanations. His conduct in the affair was extremely haughty, 
 and when first charged with his crimes by Mr. Tite, the then 
 deputy-chairman of the company, boldly declared his inno- 
 cence ; and having been informed that his books and papers 
 had been placed under seal, and would be subjected to investi- 
 gation, he still showed little or no concern, his sangfroid never 
 forsaking him throughout the whole proceeding. It was only 
 necessary for the books to be cursorily searched, before ifc was 
 evident that large abstractions had been effected, and that 
 principally, in fact wholly, through the clever dexterity of 
 Walter Watts. But while this was the case, ifc was, never- 
 theless, equally apparent that the system which prevailed had 
 enabled him, with the exercise of some ingenuity, and a large 
 amount of daring, to deprive the company of several thousands 
 per annum. Immediately, therefore, the directors resolved to 
 have him placed under surveillance, and he was without delay 
 brought before the authorities at the Mansion House, and 
 arraigned on the charge of having defrauded his employers. 
 !N"o moral doubt existed of his guilt, but in a legal point of 
 view there were difficulties, he having destroyed, as far as 
 possible, every trace of the irregular transactions in which he 
 had been so long engaged. But the talent brought to the 
 assistance of the directors helped them through this difficulty. 
 At length, after several remands, Walter Watts, though well 
 defended, and apparently confident of an escape from the hands 
 of justice, was committed for trial at the next sessions of the 
 Criminal Court.
 
 FACTS, FAILURES, AND FRAUDS. 89 
 
 While the criminal proceedings -were yet pending, the 
 directors of the Globe Office considered it necessary, for the 
 justification of their character as the managerial body of a 
 great public company, aud for the future protection of the 
 interests of their shareholders, to institute a thorough investi- 
 gation into these frauds the manner in which they had been 
 perpetrated the amount of loss they involved and the sys- 
 tem of book-keeping and check under which they had arisen, 
 and by means of which they had been facilitated. They ac- 
 cordingly engaged the services of one of the most eminent 
 accountants in the City of London for that purpose ; and he, 
 after devoting considerable time and attention to the subject, 
 embodied the conclusions to which he had arrived in two re- 
 ports. These documents were never published, as, it wa3 
 contended, they could not serve any object beyond the gratifi- 
 cation of curiosity, while they might possibly have tended to 
 bring the management of the office into discredit by showing 
 an inexcusable absence of proper vigilance and foresight. It 
 is, however, understood that the task entrusted to the able 
 professional accountant they selected, Mr. J. E. Coleman, em- 
 braced not only the most searching inquiry into past occur- 
 rences, but a full and complete examination into the whole 
 system of account-keeping adopted by the office the ability 
 and, to a certain extent, the conduct of its officers and to the 
 suggestion of such changes and improvements as should afford 
 efficient security against the repetition of similar delinquencies. 
 
 The first report, which was laid before the Board somewhere 
 about the close of the month of March, 1850, is presumed to 
 have been merely of a preliminary character ; but it is said to 
 have contained the important facts, that the defalcations during 
 the year 1849 alone amounted to upwards of 18,000 ; that in 
 the receipt department of the office there was no effective check 
 against fraud, although, owing to the integrity of the ulliriuls, 
 no fraud had taken place ; and that in the accountant's office,
 
 90 FACTS, FAILURES, AND FEAUDS. 
 
 in which "Watts was employed, the extraordinarily lax practice 
 prevailed of making the banker's pass-book the foundation of 
 the entries in the books of the company, instead of the docu- 
 ments referring to the payments ordered, so that if the person 
 having the custody of the pass-book chose to falsify it, the false 
 entries were transferred to the general books of the office, and 
 thus made to cover abstractions effected through the bankers. 
 Of this laxity Walter Watts, who was the custodier of the 
 pass-book, and part of whose duty it was to check it, took 
 advantage, and by its means was enabled to carry on for years, 
 without detection, a systematized scheme of robbery, which, 
 for extent and daring, was, up to that date, unparalleled in the 
 history of any public company, though it has since, in more 
 than one instance, been imitated with proportional success. 
 
 The second report of Mr. Coleman was presented to the di- 
 rectors some two months later, and, as a matter of course, went 
 narrowly and in detail into the modus operandi of the enormous 
 abstractions, the key to which had only been arrived at after the 
 most patient and laborious investigation of all the policies, claims, 
 counterfoils of cheques, dividend warrants, and vouchers of every 
 accessible kind relating to the payments which had been made 
 through the bankers during the period of Watts's connection 
 with the institution. Without vouching for the exact accuracy 
 of the figures, which, in the absence of the official document 
 itself, is impossible, the exceedingly ingenious manner in which 
 Watts contrived to make the loose and unbusiuess-like system 
 of check which prevailed at the office subservient to his nefa- 
 rious designs, may be best explained by a single instance. A 
 cheque, say for 554 10s., represented as for annuity ]N"o. 6, 
 was drawn and paid by the bankers, and entered by them in 
 the pass-book. When the book came into Watts's hands, he 
 erased the 55, thus making the payment appear 4 10*. ; and 
 in order to mystify the matter further, he altered the number 
 of the annuity to 64 by adding the figure 4. But, in point of
 
 FACTS, FAILURES, AND FRAUDS. 91 
 
 fact, no such claim existed against the company at the time, 
 as annuity No. 6, and the payments on annuity No. 64, having 
 been previously made, a fictitious claim of 4 10s. appeared in 
 the pass-book as paid, in order to provide facilities for covering 
 the abstraction. But the difference of 550 being still left 
 between the payment, as it appeared by the falsified entry in 
 the pass-book, and the actual amount paid, Watts had to find 
 some means of covering the discrepancy, in order to avoid 
 detection. For this purpose he selected a trifling fire-loss, say 
 of 7 10s., which had been paid some time before, but which 
 had not yet been passed, and falsified that entry in the pass- 
 book also, by adding to it the 550, making it appear that 
 557 10s. was the sum which had been paid, and thus, by 
 making the total addition in the book correct, perfecting the 
 cover for the fraud. 
 
 In the same way, it is affirmed, he tampered with the divi- 
 dend account, falsifying the figures, as entered in the bankers' 
 pass-book, to the extent of 1500 on one half-year's dividends, 
 which sum he drew and transferred to his own pocket. It is 
 averred that Mr. Coleman, the accountant, succeeded in tracing 
 abstractions effected in this way between August, 1844, and 
 February, 1850, when the first discovery of "Watts's delinquen- 
 cies was made, to the almost incredible extent of nearly 
 70,000 ; and that so thoroughly systematic were his arrange- 
 ments, that the balance of cash at the bankers at the date 
 showed a discrepancy of under 10,000, which for the most 
 part was temporarily covered by false additions in the pass- 
 book, until an opportunity offered of altering individual entries 
 that might suit his purpose, previously to their permanent 
 transference to the general books of the company, when de- 
 tection need no longer be apprehended.* 
 
 * Those who have seen the bankers' book, allege that it presented a 
 mass of erasures and alterations which should, whenever it was before the 
 board, have at least created suspicion, if it had not at once led to detection.
 
 92 FACTS, FAILURES, AND FRAUDS. 
 
 "What were the results of the inquiry in other respects is 
 not known. Whether the very defective system which enabled 
 Walter Watts for between five and six years to pursue regu- 
 larly such, a course of gigantic fraud, without any discovery of 
 losses which must have so sensibly affected the financial posi- 
 tion of the company, and which, even with the rudest mode of 
 bookkeeping and checking of account, it would be thought 
 impossible for any lengthened period to conceal, was of recent 
 introduction, or whether it had existed from the first establish- 
 ment of the company, remains, as far as the public, and pro- 
 bably as far as the Globe shareholders, are concerned, in doubt. 
 There can be no question, however, supposing the information 
 from which the foregoing account has been compiled to be 
 correct, that the practical mind of the accountant suggested 
 the adoption of those simple and obvious checks, in regard to 
 payments made through the bankers, which are calculated to 
 afford sufficient security against the drawing of cheques, or 
 the passing of entries without the production of the vouchers 
 and documentary proof necessary to guarantee correctness. 
 There has been no actual charge of connivance against any 
 officer of the company in Watts's crimes ; still it is difficult to 
 conceive how the pass-book could be constantly tampered with 
 by erasures, and by additions altered and re-altered, without 
 attracting attention. Still more extraordinary is it that pay- 
 ments should continue to have been passed, by those of the 
 directorial body who superintended the financial affairs of the 
 company, upon fire and life losses, without any reference to 
 the policies or the claims sent in and certified by the proper 
 officer ; or that auditors, appointed to make periodical examina- 
 tions into the accounts, should have overlooked the very sus- 
 picious appearance which both the pass-book and the fire and 
 life loss-book must have presented, and thus permitted a course 
 of wholesale robbery to go on for years, which threatened to 
 bring one of the most flourishing companies in Londoc to the 
 verge of insolvency.
 
 FACTS, FAILURES, AKD FRAUDS. 93 
 
 The remainder of this miserable history is soon told. The 
 criminal sessions arrived, and the culprit was placed at the bar 
 of the Old Bailey, and there the evidence was most complete, 
 but still legal difficulties intervened ; and although he was con- 
 victed of having stolen " a piece of paper of the value of Id.," the 
 property of the Globe Assurance directors, sentence was de- 
 ferred on points raised involving the consideration of the proper 
 framing of the indictment. It was not long, however, before 
 these questions were set at rest, having been decided against 
 the prisoner ; and at the next sessions of the court he was 
 called up for judgment, and sentenced to ten years' transpor- 
 tation. From what subsequently transpired, it is quite certain 
 that "\\ r alter "Watts did not expect so severe a judgment on his 
 crimes. He had been induced to suppose, whether under 
 proper advice or not, that a twelvemonth's imprisonment would 
 be the limit to which he could be assigned by the law of the 
 land ; but the fact was otherwise, and when the sentence was 
 pronounced by Mr. Baron Alderson,it was remarked that his pre- 
 vious strength and assurance immediately departed, though it 
 was not replaced by apparently deep and settled gloom. The 
 despondency of that memorable afternoon, the resolve to ter- 
 minate his existence, and the accomplishment of his object in 
 the dead of the night while confined in the ward with his fel- 
 low-prisoners, brings to the close the career of this unhappy 
 man, the blind victim of unhallowed passions which tempted 
 him to the commission of these frightful frauds. 
 
 THE TRIAL OF WALTER WATTS. 
 CENTBAL CUIMINAL COUBT, MAY 10, 1850. 
 
 OLD COUBT. 
 (Bffore Mr. Earon ALDEBSOU and Mr. Jttstlce CBESSWELL.) 
 
 Walter Watts, 33, was indicted for stealing an order for the payment 
 of 1100, the property of George Carr Glyn, to whom he was Eervant.
 
 94 TACTS, FAILUBES, A!O> TEAUDS. 
 
 The indictment contained a great number of counts ; in some of them 
 the instrument in question was laid to be the property of Mr. Glyn, as 
 treasurer of the Globe Insurance Company, and in others as belonging to 
 Edward Goldsmith and William Tite, the chairman and deputy-chairman 
 of the society. 
 
 In another set of counts the prisoner was charged with stealing a piece 
 of paper, the property of the same prosecutors. 
 
 The Attorney-General, Mr. Clarkson, Sir J. Bayley, and Mr. Bovill 
 appeared for the prosecution ; Mr. Cockburn, Q.C., Mr. Bodkin, and Mr. 
 Bramwell defended the prisoner. 
 
 The ATTOBKET-GENEBAL, in opening the case to the jury, said, that 
 although the indictment contained a great number of counts, the charge 
 against the prisoner in reality resolved itself into this, that while employed 
 as a clerk and servant to the Globe Insurance Company, who were the pro- 
 secutors, he had embezzled and stolen a valuable security of the amount of 
 1400, the property of his employers. He was sorry to say that the facts 
 lay in a very narrow compass, and would appear to be quite conclusive, 
 and he believed that the case would eventually resolve itself into a ques- 
 tion of law. The jury were aware that the Globe Insurance Company had 
 carried on for a great many years a most extensive business both in fire and 
 life insurances, and the prisoner had been for several years in their service 
 as clerk. He was the son of a gentleman who had held a responsible 
 office in the company almost from the period of its establishment, and he 
 was instructed now to state, on behalf of that gentleman and it was due 
 to him to do so that the directors entirely exonerated him from the 
 slightest suspicion of being in any way connected with this unfortunate 
 transaction. The Attorney-General then proceeded briefly to state the 
 circumstances under which the charge was preferred. He said that the 
 directors were in the habit of drawing cheques upon their bankers, Messrs. 
 Glyn and Co., Mr. Glyn being also a director of the Globe Insurance 
 Company, to pay different claims ; and it appeared that on the 26th of 
 February a cheque of this description for 1400 was found to be in the 
 possession of the prisoner, by his having paid it in to his own account to 
 the London and Westminster Bank. The cheque was paid in due course by 
 Messrs. Glyn, and was then returned with a number of others, with the pass- 
 book in which the cheque in question was entered, in the ordinary course of 
 business, to the prisoner ; and he should be able to show that the entry re- 
 lating to this cheque had been erased, and the cheque itself abstracted, and 
 either destroyed or made away with in some other manner, as nothing had 
 been seen of it since. It was under these circumstances that the present 
 charge was preferred against the prisoner ; and hehad only to state, in addi- 
 tion, that in consequence of a communication that was received by the direc- 
 tors, an inquiry and investigation took place which led to the discovery of
 
 PACTS, FAILUEES, AND FBAUDS. 95 
 
 more irregularities, and the prisoner was questioned upon the subject, 
 but after attending one or two meetings resigned his situation. These 
 were the facts, and he believed that the defence that would be relied 
 upon was, that the prisoner had some small share or interest in the 
 company, and that being in consequence in the position of a partner he 
 was not amenable to the charge of larceny ; but, if such should be the 
 case he had no doubt that under the present form of indictment he would 
 still be liable. 
 
 Mr. F. Eockley deposed that he is one of the clerks in the Lon- 
 don and Westminster Bank. On the 26th of February the prisoner 
 had an account at that bank, and on that day a cheque for 1400 was 
 paid to him, but whether it was one of the Globe Insurance Company he 
 could not say. It was placed to the credit of the prisoner. There was a 
 clerk named Hobson in the service of the Westminster Bank, and he 
 placed the cheque in due course for that clerk to pass the cheque. Witness 
 had no recollection of the person by whom the cheque was brought, but he 
 received a memorandum with it, which he produced, upon which was the 
 name of the prisoner in his handwriting, and also the words " Messrs. Glyn 
 and Co.," and the figures " 1400," in the same character of writing. 
 
 By Mr. COCKBFBN. Having the two together, the signature and 
 the other words and figures, he was of opinion they were the handwriting 
 of the prisoner. Unless he had the opportunity of this comparison, he 
 should not like to speak positively to the handwriting being the same. 
 
 The memorandum was put in and read. It was to the effect that a 
 sum of 1400, by a cheque on Glyn and Co., had been paid into the London 
 and Westminster Bank by the prisoner on the 26th of February. 
 
 Mr. J. Hobson, another clerk in the London and Westminster Bank, 
 produced a book containing the entry of the cheque for 1400 upon Messrs. 
 Glyu and Co. He also proved that he presented the cheque with a number 
 of others to Messrs. Glyn and Co., and received altogether the amount of 
 4269 16>. 10d., and handed that sum to the London and Westminster 
 Bank. 
 
 Mr. W. Steel, clerk to Messrs. Glyn and Co., deposed, that ho paid 
 the cheques brought by the last witness. The Globe Insurance Company 
 had for several years kept a drawing account with them, and they had a 
 special form of cheque. One of these cheques, for 1400, was among the 
 checks that he paid to the last witness. 
 
 By Mr. COCKBUEN. He did not state this fact from his own know- 
 ledge, but by the entry in the books. 
 
 By Mr. BOVILL. There was only one cheque for 1400, among those to 
 which ho referred. 
 
 Mr. J. Santry, another clerk to Messrs. Glyn, produced a book con- 
 taining the entry of a payment of a cheque for 1400. He said, ho believed
 
 96 TACTS, FAILURES, AND FEAUDS. 
 
 it was a cheque because it was an afternoon transaction bills were generally 
 presented in the morning. 
 
 Mr. COCKBUEN took several objections to the course of examination 
 that was pursued, contending that the witnesses ought only to be allowed 
 to speak from their own recollection, and not to be permitted to draw an 
 inference from entries in the book. 
 
 Mr. H. B. Reynolds, the ledger-clerk at Messrs. Glyn's produced the 
 ledger for the present year, and proved that it was his duty to enter the 
 cheques that were paid over the counter. He also proved that there was an 
 entry on the 26th of February of a cheque for 1400 of the Globe Insurance 
 Company having been paid with several others. 
 
 In answer to a question put by Mr. COCKBTTRN, the witness said he 
 had no personal recollection of such a cheque ; but he had no doubt of the 
 fact of such a cheque having been paid on that day from seeing the entry 
 and his knowledge of their usual course of business. 
 
 Mr. Reynolds then proceeded to state that he placed the cheque to the 
 debit of the Globe Company. It was the custom of that company to send 
 their pass-book to be made up every Tuesday night, and all the debits and 
 credits of the company were made up, and witness checked and dotted every 
 item, and the paid cheques were then placed in it, and it was fetched away 
 every Wednesday. He said he was quite certain he should not have passed 
 such an item as a cheque for 1400 if it had not been produced, and that the 
 pass-book must have corresponded with their ledger. Upon looking at the 
 pass-book, he said that an item, which according to the list of entries in the 
 ledger should have been that of the cheque for 1400, had been erased. 
 
 In answer to a question put by one of the jury, the witness said that 
 the ledger was compared with the pass-book by himself and another clerk 
 who called out the different items, and if there had been any variance there 
 would have been an immediate investigation respecting it. 
 
 Henry Probyn, messenger to the prosecutors, deposed that it was his 
 usual duty to take the pass-book to the bankers on the Tuesday and fetch 
 it again the following day, and to give it to the prisoner when he brought 
 it back. He had no doubt he did so in February last, but he had no per- 
 sonal recollection of the matter. 
 
 Mr. W. Tite deposed, that he was the deputy-chairman of the Globe 
 Insurance Company, and that Mr. G. C. Glyn was the treasurer, and Mr. 
 Edward Goldsmith the chairman of the company. The prisoner in Febru- 
 ary last was a clerk in the service of the company, and he was appointed 
 to that office in the usual manner by the directors. The principal duty of 
 the prisoner, who was assistant-clerk in the accountant's office, was to 
 check the payments at the bankers' and the bankers' pass-books, and every 
 Wednesday morning he had to give a statement to the directors of the 
 balance in hand at the bankers', in order that they might see the state of
 
 TACTS, FAILURES, A>'D FRAUDS. 07 
 
 the funds of the company, and provide accordingly. When the cheques that 
 i uriied from the bankers' were verified, it was the duty of the pri- 
 soner to tie them up in a bundle in regular order, so that they might 
 - be referred to as vouchers both for the bunk and the company. In 
 the hitter end of ISIS and the beginning of 1819 he received information 
 that the prisoner had embarked in some theatrical speculations and witness 
 remonstrated with him upon the impropriety of a person in his position 
 being connected with such matters. Witness had understood that he was 
 connected with the Olympic Theatre at the time ho made this communica- 
 tion to him. On the 4th of last March the secretary made a statement to 
 him relating to irregularities in the pass-books and other matters, and an 
 investigation was immediately set on foot, and the cheque for 1400 was 
 sought for, but could not be found among any of the vouchers. Witness 
 immediately sealed up the whole of the prisoner's papers, and while he was 
 doing so he came in, and witness told him to go to his own private room, 
 and he then sent for his father, who was the cashier to the company. Wit- 
 ness, in the presence of both, then said that great irregularities had been 
 discovered in the cash transactions of the office, and before ho took any 
 step in the matter, he thought it right to call them both before him, as ho 
 thought they must both be involved in them. The prisoner asked him 
 what he accused him of, and witness replied that he made no accusation, 
 but his own conscience would tell him more than he (witness) could pos- 
 sibly know at that time, and he added that it was evident that very large 
 sums had been abstracted from the funds of the company. The prisoner's 
 father vehemently protested his innocence, and declared that every shilling 
 that had passed through his hands had been punctually paid to the bankers, 
 and witness believed that was true. Witness then asked the prisoner if he 
 could say the same thing, and he replied that he declined to say anything. 
 Witness said he would leave the father and son together for ten minutes, 
 and when he returned at the expiration of that time, he found they were 
 gone ; and shortly afterwards he met the prisoner on the stairs, and he said 
 that he had been disgraced in the office by having his papers sealed up, and 
 he asked witness to seal up all the other books and papers of the company, 
 .lied that ho should use his own discretion as to that, and the pri- 
 soner then said he was a proprietor as well as witness, and ho had done 
 nothing that he need be ashamed of, and he would not stop there. Witness 
 told him not to bluster, and that he had formed a very bad estimate of his 
 character if he thought it would have any effect upon him, and the prisoner 
 then went away and did not return. Witness afterwards received a letter 
 from the prisoner resigning his appointment. 
 
 The letter was put in and read. It was dated March 6, 1850, and was 
 to the effect that after the accusation that had been brought forward against 
 him on the previous day, he (prisoner) felt that ho had no alternative but 
 
 II
 
 98 FACTS, FAILURES, A>*D FRAUDS. 
 
 immediately to tender his resignation ; but at the same time expressed his 
 thanks for the kindness he had received from the company for many years. 
 He also stated that, if he was wanted, he should be found during the day 
 at the Olympic Theatre, and if he went out he should leave word when he 
 would return. 
 
 Cross-examined by Mr. COCKBTJRX. Prisoner had been more than ten 
 years in the service of the company. He held two shares, and witness 
 presumed that he received the dividend upon them. Before any cheques 
 were drawn for fire or life losses, the claims were examined and submitted 
 to the treasury committee, and every cheque was signed by the chairman or 
 deputy-chairman and two of the directors, and countersigned by the cashier 
 or secretary. A book was kept for the purpose of making entries of all 
 such transactions, and entries were made of every cheque in several other 
 books. The book kept by the committee would show the particulars of 
 every transaction, and of every cheque that was signed in the course of the 
 business. He was aware that the prisoner surrendered to meet the charge, 
 but did not know that he made an appointment to do so. 
 
 He-examined. The prisoner would not, in the ordinary course of his 
 business, have access to the book in which the cheques were kept, but he 
 might have done so. Several leaves appear to have been torn from that 
 book. 
 
 Mr. Ellis, clerk to Messrs. Freshfield, the solicitors for the prosecution, 
 proved that he served a notice upon the prisoner to produce the cheque in 
 question, and a number of other papers. 
 
 Mr. J. Ashby, ledger clerk at the London and "Westminster Bank, 
 proved that the prisoner drew upon the 1400 check, and that there was 
 only a balance of 20 11s. Qd. at present in his favour. 
 
 The ATTOEXEY-GENEEAI, then put in the Act of Parliament under 
 which the company was formed, and this closed the case for the prose- 
 cution. 
 
 Mr. CoCKBrEU then sxibmitted that the prosecution must fail, inas- 
 much as the prisoner was a partner in the company, and therefore could 
 not be charged with larceny, or stealing part of his own property. The 
 learned counsel cited several cases where the members of benefit societies 
 had been indicted for stealing a portion of the funds, and in which juries, 
 upon the facts, had returned verdicts of " guilty," which had afterwards 
 been reversed, upon the ground that the parties stood in the position of 
 co-partners, having a joint interest in the funds, and therefore could not be 
 convicted of stealing their own property. 
 
 The learned JUDGES, without hearing the Attorney-G-eneral in reply to 
 the objection, overruled it, upon the ground that the present case differed 
 entirely from those that had been cited. They said it appeared to them 
 that where the body of proprietors of a company invested a portion of their
 
 TACTS, TAILUBES, A>'D FBAUDS. 99 
 
 body with the possession and management of property of this description, 
 the act af any person, notwithstanding ho might be a proprietor, dispossess- 
 ing persons in that position of the property so entrusted to them, amounted 
 to larceny. The case would have been difficult if the property had been 
 laid in the company generally, but here it was alleged to be in the persons 
 whose names were mentioned ; and they were clearly of opinion that this 
 was sufficient to support the charge of larceny. 
 
 Mr. Justice CBESSWELL then addressed the Attorney-General, and said, 
 that this point of law being disposed of, he should wish to know what facts 
 he relied upon to support the charge in the indictment. 
 
 The ATTOIJNEY-GEXEBAL said, he considered the paying in of the cheque 
 to the prisoner's banters, and the erasure of the entry in the pass-book, 
 were strong facts for the consideration of the jury. 
 
 Mr. Justice CKESSWELL remarked, that there was no evidence that such 
 a cheque as the one in question had ever been drawn by the Globe Company, 
 or had ever been in existence. 
 
 The ATTOBKEY-GEITEBAL submitted, that some such instrument, whe- 
 ther a genuine one or not he could not of course pretend to say, was clearly 
 proved to have existed, and to be in the possession of the prisoner, and he 
 had had notice to produce it. 
 
 Mr. Justice CEESSWELL asked, that supposing it had existed, and was a 
 genuine instrument, what proof was there that the prisoner had stolen it ? 
 What evidence was there to show that he might not have obtained it in the 
 regular course of his affairs from the person who was really entitled to it ? 
 
 The ATTORNEY- GENEBAL said, that that was evidence for the jury to 
 consider. He then proceeded to contend that, supposing the Court should 
 reject the counts describing the instrument as a valuable security, there was 
 ample evidence to support those which charged the prisoner with stealing 
 a piece of paper, the messenger having clearly proved that he delivered the 
 canceled cheque to the prisoner, who had afterwards made away with it, 
 and this, he submitted, was sufficient to support the charge of larceny. 
 
 Mr. Justice CBESSWELL, after some further discussion, said, ho would 
 let the case go to the jury upon the count for stealing a piece of paper, 
 although at the same time ho must say he believed his ruling would bo 
 wrong. It would, however, be the means of carrying the question before 
 the new Court of Appeal, where it would be disposed of without di 
 the jury, upon his ruling, should say that the prisoner was guilty. The 
 counsel for the prisoner would, of course, however, have the right to ad- 
 dress the jury upon the facts. 
 
 Mr. COCKBUBN accordingly briefly addressed the jury, and commenced 
 by observing that in the course of his experience he had never before seen 
 a case for a prosecution introduced in such a mysterious and extraordinary 
 manner as this Lad beeu; aud ho submitted that it was quite clear lac
 
 100 PACTS. FAILURES, AXD FRAUDS. 
 
 prosecutors had some motive or object in laying it before the jury in such 
 a manner, and in excluding all the information -which ought to have been 
 given upon the subject. It was the main principle of the criminal law of 
 this country that those who sought to establish the guilt of a party accused 
 were bound to lay all the facts within their knowledge before the jury ; but 
 it was idle to say that this had been done in the present case. Why did 
 not the prosecutors give the jury some information upon the subject of this 
 supposed cheque ? They had all the books and documents in their posses- 
 sion, and of course had ample means to do so, but, instead of producing 
 such evidence, they contented themselves with merely putting certain facts 
 before the jury, hoping that they might, by some means or other, induce 
 the jury to return a verdict of guilty against the prisoner. With regard to 
 the other charge, of stealing a piece of paper, he submitted that it was 
 trumpery and ridiculous, and he therefore called upon the jury to acquit 
 the prisoner altogether of the charge made against him. 
 
 Mr. Justice CEESSWELL then addressed the jury, and, after observing 
 that the Court was clearly of opinion that the first count which described 
 the instrument as a valuable security, could not be supported, because 
 there was no evidence that such a cheque as the one alleged to have been 
 stolen was ever in the possession of the prosecutors, said that the only 
 point the jury would have to decide was, whether the evidence satisfied 
 them that the prisoner had stolen a piece of paper ; and upon that question 
 he should for the present purpose direct them that, if they thought the 
 evidence that the cancelled cheque had come into the possession of the pri- 
 soner from the messenger, and that he had converted it to his own use by 
 destroying it, or in any other manner depriving the prosecutors of it, satis- 
 fied them of the fact, they would be at liberty to find the prisoner guilty 
 upon this count. 
 
 The jury retired at half-past three o'clock. They were in deliberation 
 more than an hour, and. then returned into court and gave their verdict, 
 finding the prisoner Guilty of stealing a piece of paper. 
 
 Mr. Justice CEESSWELL said, he should reserve the point as to the 
 sufficiency of the count a question for consideration by the Court of 
 Appeal. 
 
 The ATTORNEY- GEETEBAL said there were several other indictments 
 against the prisoner, but he should not take any further steps regarding 
 them until the present indictment was formally disposed of by the decision 
 of the Judges upon the point of law. 
 
 CENTRAL CRIMINAL COURT, JULY 10, 1850. 
 
 (Before Mr. Baron ALDERSOX, Mr. Justice PATXESON, and Mr. Justice 
 TALFOUBD.) 
 
 Walter Watts was placed at the bar. It will be remembered that 
 this prisoner, who was formerly a clerk in the Globe Insurance Com-
 
 FACTS, FAILURES, AND FBAUDS. 101 
 
 pany, and also for some time the lessee of the Olympic and Marylebono 
 Theatres, was tried at the May session of this Court for stealing a 
 cheque for '1400, the property of the above company. A great 
 many technical objections were taken in the course of the case, and 
 the jury eventually found the prisoner guilty of stealing a piece of paper, 
 but the point of law was reserved for the consideration of the Judges, whe- 
 ther the circumstances of the case would legally justify such a verdict. 
 This point has since been decided against the prisoner, who was now 
 brought up to receive sentence upon the conviction. 
 
 The ATTOBXET-GENEBAL, who appeared for the prosecution, said that 
 before judgment was pronounced, ho begged to remind their Lordships that 
 there were three other indictments against the prisoner, and he should 
 wish the Court to read the depositions in these cases, in order that they 
 might be aware of all the circumstances before they passed sentence. His 
 object in making this application was that the public time might be saved, 
 because in one event ho might feel himself compelled to proceed with some 
 of the other cases. 
 
 Baron ALDEKSOX said he had no objection to postpone passing the 
 judgment, but he should have no opportunity of consulting Mr. Justice 
 Cresswell, who tried the case, as he had set out on his circuit. Although 
 he did not quite concur in the decision that had been come to by the Court 
 of Appeal, yet all he had now to do was to pass the sentence that had been 
 fixed. He would, however, look at the depositions in the other cases, and 
 sentence would probably be passed upon the prisoner in the course of the 
 session. 
 
 SENTENCE OF TEN YEARS TRANSPORTATION. 
 CEXTEAL CBIITIXAL COTTBT, JCJLY 12, 1850. 
 
 (Before Mr. Baron ALDEBSOX, Mr. Justice PATTESOX, and Mr. Justice 
 TALFOUKD.) 
 
 Walter Watts was this morning placed at the bar to receive the judg- 
 ment of the Court. 
 
 Baron ALDEBSOX, in passing sentence, said that tho prisoner had been 
 tried at the May session of this court before himself and his brother Cress- 
 well for the offence of robbing to a very great extent the Globe Assurance 
 Company, to whom bo was servant, and a point of law had been reserved 
 for consideration by the Court of Criminal Appeal. Tho count upon which 
 the jury had found him Guilty apparently referred to a very trifling offence 
 namely, stealing a piece ot paper, that piece of paper, however, being in 
 fact a cheque. The point that was reserved had since been fully argued, and
 
 102 FACTS, FAILUEE3, A>~D 
 
 the Court had decided it against him, but, a3 the reasons for that decision 
 were given very fully at the time by the late Chief-Justice of the Common 
 Pleas, he did not think it necessary to repeat them on this occasion, but 
 should at once proceed to pass sentence. The Court had taken most se- 
 riously into consideration the extent to which they ought to go in the 
 punishment. The offence upon the face of the record appeared to be a 
 very trifling one, but it was perfectly clear that the act of taking the piece 
 of paper involved an offence of a very serious character, and that the object 
 of taking away this cheque was to prevent a discovery that he had misap- 
 propriated the money which that cheque represented, and that, in point of 
 fact, he had stolen a sum of 1400 upon this one occasion, and it was very 
 probable that upon other occasions he had stolen a great deal more. The 
 Court would therefore pass sentence upon him for what he had really done, 
 and not for the particular offence as it appeared upon the record. It ap- 
 peared quite clear that this cheque was either forged indeed this was most 
 probable or else that he had stolen a genuine cheque, and feloniously 
 appropriated the proceeds to his own use ; and the object of stealing the 
 piece of paper, or cheque, afterwards was to prevent discovery. In either 
 of the cases he had suggested, the prisoner was guilty of a very heavy and 
 serious offence, and he wished it to be understood that, in the severe sen- 
 tence the Court was about to pronounce, they were punishing him for the 
 real offence he had committed, and not for merely stealing a piece of paper. 
 The prisoner was then sentenced to be transported for 10 years. 
 
 THE SUICIDE AND INQUEST IN NEWGATE. 
 
 On Saturday, July 13th, two inquests were held in one of the prisoners' 
 dining-rooms in Newgate by Mr. W. J. Payne, deputy-coroner, and a jury 
 of twenty-three citizens. The first was on the body of Daniel Blackstaff 
 Donovan, aged thirty-three, an ex-pugilist; the second on the body of 
 Walter Watts, also aged thirty-three, recently clerk in the Globe Insurance 
 Office, and formerly lessee of the Marylebone and Olympic Theatres. On 
 Friday the 12th, Donovan was tried at the Central Criminal Court, and 
 sentence of death recorded against him ; and the same day the deceased 
 Watts was brought up for judgment, and sentenced to ten years' transpor- 
 tation. 
 
 Mr. Under-Sheriff Millard and Mr. David Wire were present during 
 the two investigations. 
 
 [In the case of Donovan it has not been considered necessary to give the 
 evidence, but the fact of the double suicide is noticed as showing the simi- 
 larity of effect produced by the respective sentences on the respective 
 prisoners.")
 
 PACTS, FAILTJI1ES, ASD FEATJDS. UK} 
 
 t'ope, the governor of the prison, examined. Deceased was brought 
 up on the IGth of April last on two charges, for stealing an order for 1400, 
 and a piece of paper, value Id. He was tried at the following May sessions 
 of the Criminal Court, and judgment was then respited on a point of law. 
 Judgment was given on Friday morning, and the sentence was transporta- 
 tion for ten years. I do not know whether the judgment of the Court of 
 Criminal Appeal, which was adverse to him, was made known to him until 
 he was finally brought up for judgment to receive sentence. His health 
 was bad when he first came into the prison, and he was under the doctor's 
 cure and in the infirmary ever since. I was in the court when the final 
 sentence was passed on him, and he appeared to be in pretty good spirits 
 after he h:id heard the sentence. I did not think he appeared at nil de- 
 !. In my books he is described as a clerk, and his age is recorded to 
 be thirty-three. After the sentence had been passed, he was taken back 
 into the infirmary, where I saw him on Priday evening. The occurrence 
 happened in the middle of the night, and until a quarter to four o'clock 
 this morning I knew nothing of it, when I was sent for. There were four 
 prisoners in the same room with him, and Waldon, the infirmary assistant, 
 slept in a room adjoining. When I was called they told me he had been 
 dead for some time. 
 
 "William Smith, a prisoner, examined. I was in the infirmary last 
 night, and I know the person who is dead, Mr. Watts, who was also there. 
 I have been in the infirmary since last Tuesday, and had conversations with 
 deceased, who appeared in excellent spirits. I saw him soon after he was 
 sentenced, and he did not appear at all different from what he had been 
 before. I never heard him complain of anything being the matter with 
 him. I slept three beds off from him. I and he went to bed about a quar- 
 ter to nine last evening. He did not eat much supper, but he took some 
 medicine about five minutes before he went to bed. Mr. Waldon gave ic 
 to him. Before he went up to the Central Criminal Court on Wednesday 
 morning lust, ho said that he expected to be imprisoned for twelve months. 
 On that day he was not sentenced, and he said the Judges were not satis- 
 fied with Mr. Justice Cresswell's decision, and that they would write to him 
 into the country, where that learned Judge then was, and that ho (\V:itt-) 
 was ordered to come up again on Friday. On that day, when he came back 
 to the infirmary, he said he had got transported for ten years, but ho 
 seemed as usual. He also said that he had expected that sentence after 
 what the Judges had told him on Wednesday morning. I went to bed at 
 nine, and woke again at twelve o'clock last night. All was then quiet. I 
 woke again at three, and lay awake until a quarter to four this morni 
 then turned round in my bed, and missed Mr. Watts, and, seeing his slip- 
 pers and boots under his bed, I then thought something strange was the 
 case, and being sure that ho had not got up between tluxv o'clock and a
 
 10-1 TACTS FAILURES, AXD ritAUDS. 
 
 quarter to four, I suspected that something was wrong. I awoke the pri- 
 soner next to me, and communicated to him my suspicions. He imme- 
 diately jumped out of bed, and went to the water-closet at the other end of 
 the infirmary, and he called for a knife, saying Mr. Watts was there hang- 
 ing quite dead and cold. I went the other prisoner's name was Shipton 
 and saw Mr. Watts there. We rang the bell for the officer. Deceased was 
 hanging suspended by a bit of cord fastened by the side of his neck from 
 some bars across a window, which was over and by the side of the water- 
 closet. The feet of deceased were just touching the ground, and were tied 
 together with a silk handkerchief. He was hanging about a foot from the 
 seat of the water-closet. I think I could reach the bars of the window 
 from the ground ; he was hanging quite perpendicularly, with his back to 
 the wall, and his eyes wide open. When we called for assistance, Mr. 
 Waldon came with a knife, and deceased was cut down, and Shipton took 
 him and laid him. on the floor of the infirmary. A doctor was sent for, 
 although Mr. Watts was quite dead. He was in his shirt, with a napkin 
 on his chest, and a locket suspended from his neck. 
 
 By a Juror. I believe the rope was cut out of the sacking of the bed- 
 stead. It corresponded with a piece that was wanting. All the knives are 
 given back after every meal, and deceased had one to cut his dinner and 
 supper with on Friday. I never heard him say anything about doing away 
 with himself quite the other way. He was always in full spirits, and did 
 not appear to me to be ill. 
 
 By Mr. David Wire. I am certain that during the three-quarters of 
 an hour that I was awake, deceased did not go to the water-closet. 
 
 Mr. M'Murdo, chief surgeon to the prison, examined. Deceased was 
 first brought under my notice and care at Giltspur Street prison, whither 
 he had been remanded before he was brought here. He was then in a state 
 bordering on delirium tremens, caused by drink. People are not of sound 
 mind at such times, and he asked for some brandy when he came in, saving 
 that he had been in the habit of drinking large quantities. When I re- 
 monstrated with him on that habit, he told me he had done so to prevent 
 the recurrence of a spitting of blood which affected him. I thought he was 
 too much excited then to reason with him, and I put him in the infirmary 
 of the Compter at once, and I found it necessary to give him some stimulus, 
 as he was accustomed to a considerable quantity of it. He remained under 
 my care in the infirmary of that and this prison throughout the whole of 
 his imprisonment, until his death. I saw him in Newgate daily, and so 
 did my assistant and my son, who is also a surgeon. He had been getting 
 better since he was imprisoned, and had become more cheerful. He had 
 taken medicine, and was able to bear the diminution of the stimulus at first 
 administered, and was in good spirits apparently. He was very cheerful 
 throughout, and very well conducted towards all. He was continually
 
 FACTS, FAILURES, AND FEATJDS. 105 
 
 complaining of headaches, but said they were diminishing, and I still thought 
 
 : to keep him in the infirmary. Ho was a very excitable person, but 
 
 ry difficult to say whether an unexpected sentence would derange his 
 
 brain or not. He frequently repeated that ho had had a great deal of diffi- 
 
 ubout his theatres and in other ways. 
 
 Robert Shipton, a prisoner in the infirmary, examined. I spoke to Mr. 
 \Vatts somewhere about nine o'clock on the Friday evening. Our conver- 
 sation was about the prison rules. We went to bed without wishing one 
 another good-night ; which was not usual. He appeared very cheerful, as 
 was lib custom. I went to sleep, and was awoke in the morning, at a 
 quarter to four o'clock, by William Smith, who said that Mr. Watts was 
 not in bed nor in the ward. I jumped up in a fright, and made the best of 
 niy way to the water-closet, the only place I thought he could go to. When 
 I opened the door I saw him hanging by a piece of rope from the first cross- 
 bar of the window, which is in part over and part by the side of the seat 
 of the water-closet. I immediately called out for a knife, and whilst they 
 were bringing it, I took hold of his hand, and found it quite cold and stiff. 
 The officer brought the knife, and I held the body up and he cut the rope, 
 and I took deceased into the infirmary. He was quite dead, and I carried 
 him in my arms like a piece of timber. I have been in the infirmary five 
 weeks, and the knives we use at our meals are always taken away and put 
 into a cupboard. 
 
 Mr. Sewell, the assistant-surgeon, said, that he was called that morning 
 a little before four o'clock. He came immediately to the prison, and found 
 deceased quite dead, and he must have been so for two or three hours pre- 
 viously. There was a mark on the neck. Deceased's face was very much 
 congested, and he had been bleeding from the nose, all which were symp- 
 toms of death from hanging. Saw deceased daily, and concurred in the 
 opinion of Mr. M'Murdo. Thought that the pains in the head, of which 
 deceased complained, were caused by a diseased condition of the brain, and 
 that was produced by hard drinking. 
 
 After a few remarks from the coroner, the jury immediately returned 
 an unanimous verdict of " Temporary Insanity."
 
 106 FACTS, FAILUEES, AND 3TEAUDS. 
 
 CHAPTER IY. 
 
 THE DELINQUENCIES OP MESSES. STEAHAN, PAUL, 
 AND BATES. 
 
 The Surprise created by the Failure The Blow to Confidence in the Pri- 
 vate Banking Interest The Antecedents of the House The Position 
 and Eelations of the Partners Social Standing of Mr. Strahan, and 
 the Religious Habits of Sir John Dean Paul Distressing Disclosures 
 respecting the Appropriation of Securities The Bankruptcy of the 
 Firm, and subsequent Criminal Proceedings against the whole of the 
 Partners. 
 
 AMONGST the causes ct'Ze5?-<s; which the annals of commercial 
 crime in our own time supply, none has created a more wide- 
 spread interest than the case of Strahan, Paul, and Bates, the 
 ex-hankers.* Not so extensively ruinous, perhaps, in its results 
 
 * The name of this firm was originally Snow and "VValtou. It was one 
 of the oldest banking houses in London, second only to Child and Co., who 
 date from 1640. At the period of the Commonwealth, Snow and Co. car- 
 ried on the business of pawnbrokers, under the sign of the " Golden An- 
 chor." The firm about the year 1679 suspended its payments, in common 
 with most of the London bankers, owing to the circumstance of the seizure 
 of their money by that most profligate and unprincipled monarch, Charles 
 II. On a recent examination of the books of Strahan and Co., one was 
 discovered of the date of 1672, which clearly shows that the mode of keep- 
 ing accounts in those days was in decimals. It is curious to observe the 
 nature and quality of the articles pledged by our ancestors with this house. 
 They were of a miscellaneous and somewhat comical character. One of the 
 entries in the book runs thus : " March 10, 1672. To fifteen pounds lent 
 
 to Lady , on the deposit of a golden pot de cliambre." The blank 
 
 might be filled up with an existing Scotch title. About twelve years ago, 
 Mr. Strahan changed his name from Snow to Strahan, in consequence of the 
 then late Queen's printers having left him 180,000, on condition of his 
 taking that name, previous to winch the title of the firm was Snow, Paul, 
 and Co.
 
 PACTS, FAILUBE8, AND FRAUDS. 107 
 
 as that of the Fauntlcroys* less remarkable for its bold, un- 
 blushing, and unmitigated turpitude than that of Eowland 
 
 * Marsh, Stracey, Fauntleroy, and Graham failed in 1824 for 799,028, 
 and in sixteen years paid a dividend of 10s. lOd. The firm was established 
 in 1792 by Messrs. Marsh and Sibbald, neither of whom possessed banking 
 experience or adequate capital, and who, therefore, very speedily put the 
 customers' money in jeopardy to the extent of 20,000 bad debts. To 
 retrieve and prevent future loss, two experienced bant clerks, Mr. Fauntle- 
 roy and Mr. Stracey, were taken into the concern, and the senior partners 
 entered on a course of speculation. Cut a bolder hand being wanted, Mr. 
 Fauntleroy's son, a clerk in the house, was admitted into the firm, and 
 became managing partner. Under his auspices the bank turned brick- 
 maker and builder, and gave large assistance to adventurers in those profes- 
 sions. Yet affairs did not mend. Worthless accounts were obliged to be 
 kept up by renewals of worthless bills. At length, in 1810, it was found 
 that the original loss of 20,000 had increased to 170,000. Something, 
 therefore, it was felt, must be done, and that " something " being left to 
 the accomplishment of Mr. Henry Fauutleroy, he forthwith appropriated 
 the trust moneys and securities of the bank customers to the support of 
 the insolvent firm. Supplied in this manner with abundant means, paying 
 all demands, and granting liberal accommodation, the bank grew in public 
 estimation, and this faith was supposed to receive additional confirmation, 
 in 181 1, by the accession of Captain Graham to the partnership. But 
 losses went on increasing. Builders broke, bricks were undersold, and in 
 1816 a further sum of 100,000, customers' money, had gone. Bankruptcy 
 now became imminent, but Faur.tleroy, conscious of four years' fraud, de- 
 termined still that secret crime should cover public deficiencies. "The 
 house had always lived on customers' money." " Why," he argued, " should 
 
 ; ( ate at a simple extension of the system ? " He, therefore, sat down 
 and deliberately committed to writing the following memorandum : 
 
 " In order to keep up the credit of our house, I have forged powers of 
 attorney, and have therefore sold out all these sums (amounting, as per 
 subjoined list, to 178,751 6*. -k/.) without knowledge of any of my part- 
 ners. I have respectively placed the dividends, as they became due, to 
 account, but I never posted them." " H. FAUNTLEBOY." 
 
 " 7th May, 1816." 
 
 And then, having " cased his breast of perilous stuff," he entered on 
 eight years of laborious fraud, appropriating sums received for the purposes 
 of investment, or of security, and applying the proceeds of his robberies to 
 the general funds of the banking-house. But the inevitable time came 
 when the subtle web was to be rent. The watcher grew weary of his chargt>,
 
 108 TACTS, FAILURES, A2TD FEAUDS. 
 
 Stephenson* tlie guilt of the Strand banking firm was, never- 
 theless, characterized by circumstances of so unparalleled a 
 nature, as to remove it altogether from the category of ordinary 
 delinquencies. The evidence taken in the criminal trial at 
 the Old Bailey, though it brought clearl}- home to the accused 
 the offence with which they were charged, failed to throw any 
 light upon the remote deviation from strict moral rectitude, 
 which may be regarded as the first step in that unhappy 
 sequence of events that terminated so disastrously to many 
 innocent, as well as to the guilty, parties. 
 
 The known antecedents of the partners were altogether 
 unassociated with any reputation for extravagance or impru- 
 dence. Their personal habits, while exhibiting those elegances 
 of life, and that liberality of expenditure, becoming the station 
 
 and vigilance failing for a moment, a forgery which he had committed in 
 1815, in the name of Miss Frances Young, led to the discovery of frauds 
 on the Bank of England to the amount of 360,000. Public justice was 
 not slow in vindicating the outraged confidence of society. Henry Eaun- 
 tleroy was speedily found guilty of the fraudulent transference of Miss 
 Young's stock, and in accordance with the severe judgments of the age, 
 consigned, on the 20th November, to a disgraceful death. British Losses 
 ly Bank Failures, 1820-1857. 
 
 * Remington, Stephenson, and Co. failed in 1828 with liabilities for 
 508,696, and in twenty-two years paid a dividend of 11s. 4rf rf. The crimes 
 of Roland Stephenson, who, in addition to his responsibilities as banker, 
 assumed those of " M.P." for Leomiuster, and Treasurer of Bartholomew's 
 Hospital, in order that he might with greater certainty practice on the 
 confidence of the bank customers. He lived for many years a life of 
 princely luxury at " Marshalls " in Essex, and is supposed to have passed 
 much of his time at the gaming-table. But this wasteful existence was 
 supported, not by his private fortune, but by that which belonged to others 
 the bank money. Roland Stephenson robbed his customers of upwards 
 of 200,000 ; and when he could no longer rob without detection, fled to 
 Savannah with a final theft of 50,000 in his pocket. The distress occa- 
 sioned by this failure was most extensive and severe, many of the victims, 
 amongst whom the " widow " and the " stranger " were prominent, having 
 suffered the loss of all. British Losses ly Bank Failures, 1820-1857.
 
 FACTS, FAILUKES, AND FRAUDS. 109 
 
 of society iii which they moved, and the social rank of at least 
 one of them, were by no means characterized by wasteful or 
 wanton extravagance. They were all of them long past the 
 .hen the passions and indiscretions of youth are apt to 
 lead men who are unrestrained by a sense of deep moral re- 
 sponsibility and innate honour, from the path of strict duty, and 
 to plunge them in excesses which, as in the case of the unfor- 
 tunate Henry Fauntleroy, are certain to terminate in ruin and 
 disgrace. They vrere not like Eoland Stephenson, and many 
 who have more recently stood upon the criminal platform, 
 unprincipled adventurers from the first, whom a combination 
 of lucky accidents, and their own persevering effrontery, had 
 placed for a time in the control of funds belonging to other 
 people, the temptation to appropriate which to their own pur- 
 poses they were unable to resist. The two senior members of 
 the firm were the representatives of old and wealthy families, 
 long connected with the trade of London, and inheriting by 
 direct descent that confidence and credit with their fellow- 
 citizens, and with the moneyed world in general the natural 
 reward of upright and honourable commercial dealing pursued 
 through many generations for two centuries which is even of 
 more value than money capital. Sir John Paul was further- 
 more a man of great piety, holding high place in the religious 
 world, and looked up to as " an elder in Israel." There was 
 scarcely a society belonging to the Evangelical section of the 
 Church of England in which the baronet partner of the Temple 
 Bar Bank did not hold the honorary office of treasurer, trustee, 
 or committee-man, and from which his firm did not, in conse- 
 quence, enjoy more substantial advantage as the custodiers of 
 their funds. Mr. Strahan, in the social circle in which lie 
 moved, was equally esteemed ; and down even to a week or two 
 before the failure of the house, and the discovery of the frauds, 
 to breathe a word of suspicion against his honesty would have 
 beea thought as unreasonable as to dispute the credit of the
 
 110 FACTS, FAILURES, ASD FRAUDS. 
 
 Bank of England. Both these gentlemen had, besides succeed- 
 ing to the business of the bank, come into possession, by in- 
 heritance, of private property to a considerable amount. It is 
 known that Sir John's father, the previous baronet, purchased, 
 many years ago, one estate in Yorkshire, for -which he paid 
 332,000 guineas. And that this was no mere fancy price may 
 be inferred from the fact, that at the auction at which the sale 
 was effected, a competitor offered within 1000 of the sum, for 
 which the property was knocked down. It might be suggested 
 that the late Sir John, in carrying out a desire to become a 
 great landed proprietor, might have saddled himself with en- 
 cumbrances, and impaired the resources of the bank ; and that 
 from this original cause sprang the ruin which ultimately 
 supervened. But of this there is no proof; nor does it appear 
 in what way this property, the entail of which was cut off, was 
 disposed of, whether it ever descended to the son or not. Mr. 
 Strahan, when he came into the concern on the retirement of 
 his father, the late Robert Snow the firm was formerly Snow, 
 Paul, and Paul entered it as a moneyed man, having just suc- 
 ceeded to a fortune of nearly 200,000, left to him by an 
 uncle of the name of Strahan, in consideration of which he 
 assumed that surname. 
 
 The only one of the three partners who could not boast of 
 private means, was Mr. Bates ; but he had been for many years 
 the confidential managing-clerk of the firm ; was well acquainted 
 with the customers, and with the business of the house ; he 
 had given satisfactory proof of his probity and his ability dur- 
 ing a long period of faithful service, under his late principals ; 
 and when a vacancy occurred by the retirement of the younger 
 Mr. Robert Snow in 1841, the selection of their old and tried 
 managing-clerk to fill it, was calculated to add more to the 
 credit of the bank, than the introduction of Mr. Strahan's 
 capital. It is almost impossible to imagine an establish- 
 ment possessing in a more marked degree the main elements
 
 FACTS, FAILURES, AND FBAUDS. Ill 
 
 of success. All the partners were men of business, and gave 
 their attention personally and unremittingly to the conduct of 
 their affairs. The connection, though not over extensive, was 
 one that bankers generally consider the best paying. It con- 
 sisted chiefly of members of the aristocracy, and wealthy com- 
 moners, who habitually keep large balances in their banker's 
 hands. And besides their banking business, they were carry- 
 ing on a Navy agency, under the name of Halford and Co., in 
 Norfolk Street, which the bankruptcy accounts proved to have 
 been profitable to the end, and the surplus assets of which 
 contributed something towards a dividend to the unfortunate 
 creditors of the bank. 
 
 According to all outward seeming, every ordinary incentive 
 to wrong- doing was wanting ; nor till the last moment did it 
 appear that there had been either extravagance, ignorance, or 
 mismanagement, in the usual sense of the terms. There was 
 not even the charge, so far as Mr. Strahan was concerned, that 
 he engaged in any speculative enterprises, except such as were, 
 if not exactly germane to the proper and legitimate operations of 
 banking, at least directly connected with the business in which 
 the bank had become involved. Sir John Paul and Mr. Bates 
 were both mixed up with certain joint-stock companies in the 
 character of directors, as well as shareholders ; but it was not 
 discovered before the bank stopped that the partners had en- 
 cumbered themselves with an estate like the Mostyn collieries, 
 involving a debt and outlay equal to 139,940, or that their 
 connection with Messrs. J. H. and E. F. Gandell, to enable the 
 fulfilment of certain contracts for the construction of railways 
 in France and Italy, and for the drainage of Lake Capestang, 
 placed them in the situation of the creditors of that weak firm 
 for between 300,000 and 400,000. Such frightful engage- 
 ments as these were sufficient to compromise any private bank 
 of tho character and position of Messrs. Strahan, Paul, and Co., 
 and notwithstanding the personal resources of the two private
 
 112 TACTS, FAILTJEES, AND FEAITDS. 
 
 partners, the mystery of their downfall was speedily dissipated 
 when these awkward circumstances were disclosed.* 
 
 The reprehensible practice of borrowing from the bank-till 
 for their own personal wants, seems to have been recognized 
 and followed by all the partners in this bank from a very early 
 period. The historical resume of the proceedings of the firm, 
 extending over the last half century, prepared under the di- 
 rection of the Court of Bankruptcy, shows that, as far back 
 as the year 1816, Messrs. Robert Snow, William Sandby, and 
 John Dean Paul, the partners of that day, had become bor- 
 rowers of their customers' money the customers, of course, 
 knowing nothing of the matter to the tune of 29,000 ; and 
 in 1826, although "Win. Sandby's share of the debt was then 
 paid off by his executors, Eobert Snow appeared on the books 
 as a borrower to the extent of 36,319, and the late Sir John 
 Dean Paul in the amount of 17,280. At the death of Sir 
 J. D. Paul in 1852, this total of 53,600 was reduced to 
 '28,500, by the carrying year by year a certain sum to profit 
 and loss ; and when the bankruptcy took place, it was further 
 reduced to 23,500. At this period the bank had fallen into 
 almost hopeless insolvency; and Sir John Dean Paul's in- 
 heritance was, in fact, the chief partnership in a concern, the 
 accounts of which to the close of the preceding month, viz., 
 December, 1851, exhibited a deficiency of 71,980 7s. 2d. 
 The official examination proved that, as early as 1849, the dis- 
 regard of the first principles of banking, of which the then 
 partners had been guilty, had been followed by its almost un- 
 varying consequence immediate embarrassment and prospec- 
 tive bankruptcy. In fact, the state of insolvency had then 
 arisen ; and if they had had the courage then to close their 
 doors, and divide their assets fairly amongst their creditors, 
 
 * Vide curious facts in relation to this connection detailed in the able 
 report of Mr, "W. Turguand, who was the authorized accountant to the 
 estate.
 
 FACTS, FAILUBES, AND FBAUDS. 113 
 
 they would have declared themselves unworthy of public con- 
 fidence as bankers, but they would have avoided those despe- 
 rate alternatives which ultimately reduced them to the level of 
 convicted felons. Unhappily, the same moral weakness which 
 had prevented their resisting the temptation to contravene the 
 first principles of the calling in which they had engaged, ope- 
 rated as the hindrance to the timely confession of their error. 
 Their own capital was gone, and the deposits of their cus- 
 tomers had been tampered with. Money must be secured to 
 keep themselves afloat, and enable them to meet the daily 
 drafts presented at the counter, particularly the heavy respon- 
 sibilities arising from the association with Messrs. G-andell and 
 Co. The downward course \vas begun, and they were not long 
 in discovering the truth of Virgil's lines 
 
 "Facilis desccnsus Averni," etc., etc. 
 
 It was easy to borrow the securities left with them for safe 
 custody, raise money upon them to tide over the emergency of 
 the moment, and replace them before they were called for ; 
 but for the banker, whose only experience of loans should be 
 in the capacity of the lender, to be an habitual borrower, is in 
 effect to trade at a loss. The interest they had to pay for 
 these loans, and perhaps the hazardous enterprises they entered 
 into in the vain hope of retrieving their position, added to their 
 embarrassments. As pledges, the discount houses would not 
 advance sufficient money upon the securities brought to them 
 by Sir John Paul (for this part of the business seems generally 
 to have been entrusted to his hands) ; to relieve the present 
 necessities of the bank, they must be sold. They were sold, 
 and a further breach of trust was thus committed, bringing 
 them directly and unmistakably within the operation of the 
 Act of Parliament, which dealt with the crime of embezzle, 
 ment as committed by banker^; merchants, brokers, and others 
 who act in the capacity of agents. How often the process was 
 cd no evidence is aftbrded ; but the proceedings in bank- 
 
 I
 
 114 TACTS, FAILUEES, AND FEATJDS. 
 
 ruptcy show that several others of the bank's customers suffered 
 from the same species of fraud, besides the reverend gentleman 
 on whose prosecution the delinquents were finally convicted. 
 
 For some few months before the final break up, the sta- 
 bility of the firm began to be doubted, but only in circles 
 whose business it is to make themselves acquainted with the 
 financial position of those who are likely to be applicants for 
 temporary advances in the ordinary course of trade. Constant 
 visits to the discount houses occasioned remark, and paper 
 bearing the name of the firm offered for discount at two, three, 
 and four per cent, above the market rates, led to a suspicion 
 that the crash could not long be delayed. Still not a word 
 was breathed against the honesty of the partners; it was 
 thought that they had been unfortunate, and perhaps impru- 
 dent, but nothing more. On Friday, the 8th of June, a run 
 upon the bank set in; and although an application to the 
 Committee of Bankers for aid was peremptorily refused, the 
 doors were kept open, and during that and the following days 
 23,000 was paid away over the counter to those customers 
 who had been fortunate enough to receive a hint of the 
 approaching catastrophe, and who were thus enabled to secure 
 to themselves an undue preference at the expense of the 
 general body of the creditors. So low was the available cash 
 reduced by these two days' drain, that at the commencement 
 of the following week, when an extent on behalf of the Crown 
 was put in, 2200 only remained to meet it, and an under- 
 taking for the balance had to be given by the authorities 
 acting under the bankruptcy for the balance of 800, in order 
 to prevent the seizure of the books. 
 
 The first public announcement of the failure was on Monday 
 the llth of June, and in the Gazette of the following evening 
 the name of the firm appeared as bankrupts. Of the pro- 
 ceedings in bankruptcy, it is only necessary to say that they 
 were unattended by a single incident or explanation in the
 
 FACTS, FAILUUES, A3TD FB.U7DS. 1 13 
 
 slightest degree exculpatory of the bankrupts. The total 
 amount of debts proved against the two firms, the bank and 
 tin- M;IYV agency, was in round numbers three-quarters of a 
 million, and the dividend realized has been 3s. 2d. in the pound. 
 
 On Tuesday, the 19th of June, just a week after the petition, 
 in bankruptcy had issued, in consequence of an admission made 
 by the partners that they had disposed of the securities 
 deposited with them on trust, and applied the proceeds to the 
 purposes of the bank an offence which, it appeared, they 
 offered to condone by giving notes of hand for the amount an 
 application was made to the magistrate at Bow Street police- 
 office for a warrant to apprehend Mr. Strahan, Sir J. D. Paul, 
 and Mr. Bates, on a charge of having unlawfully negotiated, or 
 otherwise disposed of, certain deeds or securities of the value 
 of 22,000, which had been entrusted to them for safe keeping 
 by the Eev. Dr. Griffiths, of Eochester. The proceedings 
 were taken under the 7th and 8th Geo. IV., cap. 29, sec. 49, 
 which enacts that any person convicted of unlawfully disposing 
 of securities entrusted to him or her for safe keeping, shall be 
 liable to be transported beyond the seas for any term not ex- 
 ceeding fourteen years nor less than seven years, or to be 
 imprisoned for any term not exceeding three years ; and if a 
 male, to be once, twice, or thrice publicly or privately whipped 
 (if the court should think fit), in addition to such imprisonment. 
 
 The warrants were placed in the hands of the warrant- 
 officers, who at once proceeded to execute them. Mr. Bates 
 was apprehended the same evening at 41, Norfolk Street, 
 Strand; after which the officers started for Nutfield, near 
 Beigate, the residence of Sir John Dean Paul. They found 
 Sir John at home ; but it being now too late to return to London 
 that night, they allowed their prisoner to go to bed, and 
 arranged that he should accompany them to town lh< 
 morning. Accordingly, on the Wednesday morning they con- 
 ducted him to the Eeigate station, arriving there barely in
 
 116 PACTS, FAli/TEES, A>*D FEAUDS. 
 
 time to save the train, which was actually in motion when 
 Sir John took his seat in a second-class carriage. The officers 
 were in the act of following him into the same carriage, when 
 a railway porter pulled them back, exclaiming, " The train is 
 in motion, and you can't get in ;" and having closed the 
 carriage-door against the officers, the train went off without 
 them. They immediately represented the facts to the super- 
 intendent, but he refused to signal the train to stop, but con- 
 sented to send a telegraphic message to the London terminus. 
 This was done, and the officers proceeded to town by the next 
 train, which reached London Bridge only ten minutes after the 
 one they had missed. On inquiry, however, of the station- 
 master there if their prisoner had been detained, he replied 
 " that he did not know Sir John Paul by sight, and of course, 
 therefore, had taken no steps in the matter." The officers had 
 thus the mortification of finding that their prisoner had effec- 
 tually escaped, and throughout the day no trace of him could 
 be found. At eight o'clock the following night, however, Sir 
 John surrendered himself at Bow Street police-station, inti- 
 mating at the same time, that he had no wish or intention to 
 deceive the officers, and that his impression when he entered 
 the train was, that they were following in an adjoining 
 carriage. 
 
 "Whether Sir John's intention was to avail himself of the 
 opportunity which was thus, as it were, providentially opened 
 to him for escaping from custody, must remain matter of con- 
 iecture. Despite his own assertion to the contrary, the facts 
 would lead to the opinion that he did ; and that it was only 
 when upon calm reflection, and probably afcer consultation 
 with friends, he became convinced of the utter futility of 
 attempting to evade justice, and considered the extent to 
 which that attempt would probably prejudice his case before 
 the jury, that he determined upon giving himself up. Had he 
 not thought of escaping, he would hardly have left the railway
 
 FACTS, FAILURES, A>'D FRAUDS. 117 
 
 before the following train, which was due in ten minutes, and 
 of which, as a constant traveller upon the line, he could not 
 have been ignorant ; much less would he have lain concealed the 
 whole of that and the following day. Mr. Strahan was taken 
 into custody on Wednesday evening, 20th of June, as he was 
 about to enter the house of his friend, Mr. Scrivener, 20, Bry- 
 anstone Square. On that same "Wednesday, Mr. Bates under- 
 went a brief examination at Bow Street, before Mr. Jardine, 
 and on Thursday a similar proceeding took place with regard to 
 Mr. Strahan ; but on each occasion only sufficient evidence was 
 adduced to justify a remand. On Friday the case was more 
 fully gone into, and on being placed at the bar, the prisoners 
 gave their names "William Strahan, aged 47, Sir John Dean 
 Paul, aged 52, and Eobert Makin Bates, aged 64. The pro- 
 secution was conducted by Mr. Bodkin. Mr. Ballantine at- 
 tended on behalf of Mr. Strahan and Sir John Paul, and Mr. 
 Parry for Mr. Bates. In laying the case before Mr. Jardine, 
 the presiding magistrate, 
 
 Mr. BODKIN said Perhaps, sir, a moro distressing spectacle was never 
 exhibited before you tban that which is presented by the appearance of the 
 three prisoners now standing at the bar of this court not prisoners such 
 as arc usually aeon in that position, but gentlemen, hitherto standing high 
 in the estimation of those who knew them, enjoying the luxury which rank 
 and wealth afford, and the unlimited confidence of those whoso fortunes 
 have been entrusted to their keeping. That confidence, it has recently 
 transpired, has been so cruelly betrayed, and the conduct of the prisoners 
 themselves has been of such a nature, as to reduce them to the level 
 of common felons; for, although the offence of which they stand accused is 
 not actually a felony in the eye of the law, it is nevertheless so serious as to 
 render them liable to transportation for a period of fourteen years. Indeed, 
 were it otherwise if occurrences of this character were not visited with tho 
 greatest severity of punishment the consequences to society would bo 
 alarming to contemplate. In the present case I have tho honour of repre- 
 senting one of the sufferers from the conduct which I have described, and I 
 am not hero to complain of any mero deficiency arising in an ordinary 
 banking account, but to show that these persons, having been entrusted 
 with bonds and securities of the value of 22,000 by my client, did, about
 
 118 PACTS, TAILTJKES, AXD IEATTDS. 
 
 fire or six weeks ago, fraudulently, if not feloniously, appropriate these 
 securities to their own use, without the knowledge or sanction of that gen- 
 tleman. It certainly does happen that the individual for whom I appear is 
 fortunately placed in such circumstances that this heavy loss will not leave 
 him a ruined man. Happily it has not, as, in too many other cases it has, 
 deprived him of the means of prosecuting these persons for the wrong 
 inflicted upon him, in common with many who have been utterly ruined by 
 similar acts of fraud. Dr. Griffiths considers it his duty to do that which 
 many of his fellow-sufferers are unable to do namely, to bring these culprits 
 to the bar of a court of justice, to answer for the violation of a trust which 
 confidence in their honour and integrity as gentlemen had induced him to 
 believe would be held sacred, whatever may have been the pecuniary circum- 
 stances of their bank. He has been advised, and his own private opinions 
 accord with the advice, to proceed against the prisoners without any reser- 
 vation ; and having satisfied himself that this is the proper course to pur- 
 sue, after mature deliberation, he is determined that nothing shall prevail 
 on him to swerve from that resolution. You are aware, sir, that the three 
 defendants at the bar are charged in your warrant with having, conjointly, 
 disposed of certain securities to a large amount, by which means my client 
 has been defrauded of his property. The learned counsel said he should, 
 on that occasion, only examine Dr. Griffiths, and then ask for a remand for 
 the production of further evidence. He should prove that the securities in 
 question, with others to the amount of 100,000, had been taken either to 
 the house of Overeud, Gurney, and Co., or some other house in the City, 
 and the proceeds appropriated by the prisoners. 
 
 The evidence of Dr. Griffiths, who is a Prebendary of Eochester 
 Cathedral, -was to the following effect: I have kept an account at 
 the bank of Strahan and Co. for about thirty years, and have, from time to 
 time, intrusted them with securities of various kinds. On the 9th of June, 
 1849, they purchased for me 30,000 Dutch florins (2* per cents.), making, 
 with others, 150,000, which they were directed to take care of for me; but 
 I never authorized the prisoners, or either of them, to sell, pledge, or nego- 
 tiate them in any way whatever. On the day Mr. Bates was taken into 
 custody, and while the other warrants were still in the hands of the officers, 
 Mr. Strahan waited upon me, and requested an interview. Some friends 
 and relatives of Mr. Strahan's had previously called upon me with the same 
 view. Mr. Strahan began by expressing his surprise that I had been 
 unable to obtain any information at the bank respecting my securities, for 
 he and his partners were there ready to give me every information in their 
 power. He said that they were day and night engaged in making up their 
 accounts, and that if I took legal proceedings against them, there would be 
 no one competent to wind up their affairs. He admitted that I was quite 
 justified in the course I had taken, but he urged repeatedly that I was
 
 TACTS, FAILTJEES, A>'D FBAUDS. 119 
 
 doing a great injury to the creditors and to myself, for he had great 
 expectations that both he and Sir J. Paul would, by-and-by, have money 
 sufficient at their command to redeem my securities ; and that they 
 had prepared notes of hand for me, had I called upon them. He further 
 told me, in answer to my inquiries, thai; my securities, with others, 
 had been taken by Sir John Paul, and placed in the hands either of 
 " Overend" or "Burnand" I forget which name was actually stated. In 
 fact, as I understood him, Mr. Strahan said ho had himself taken the securi- 
 ties out of the parcel in \\hich they were contained, and handed them to 
 Sir John Paul, who carried them to the brokers in the City. He also stated 
 that the various securities which they had disposed in this way amounted to 
 f 100,000 in value ; but that my securities were by far the largest in amount 
 belonging to any one individual. He stated that much kindness had been 
 shown him by several persons who were placed in similar circumstances to 
 myself, and therefore he hoped I would not continue these proceedings, 
 which, without benefiting myself, would be detrimental to the interests of 
 the public. He added that he knew the officers were in search of him and 
 his partner, and if they were put into prison it would be impossible to bring 
 their ailliirs to a close. In reply to this, I stated that I was very unwilling 
 to say anything that would aggravate his feeliugs, and I assured him that I 
 was not actuated by any vindictive motive towards himself or either of his 
 unhappy partners ; but that I felt bound, on public grounds, to proceed in 
 the course I had adopted. I asked him particularly whether the securities 
 had been kept in my box. I had a box at the bank, a key of which was in 
 my possession, and another key in theirs. He said they were not kept in 
 my box ; that they were deposited in a box in their strong room, and had 
 my name affixed, to show that they belonged to me. I have caused 
 inquiries to be made, and hare been unable to discover any trace of them 
 up to the present time. 
 
 Mr. BILLAXTINE said I do not propose to address any observations 
 to-day, upon the present evidence. I am not surprised at the intensity of the 
 public feeling which has been excited by these transactions, and it scarcely 
 required the severe remarks with which Mr. Bodkin thought fit to open 
 this inquiry to add to the misery which these gentlemen feel in their pre- 
 sent lamentable position misery which is shared still more deeply, because 
 more innocently, by the relatives and friends who were connected \vith 
 them. I am not aware that I can say anything to palliate that feeling on 
 this occasion, but I think I shall not be exceeding my duty here to-day when 
 I state that, however deplorable may be the affairs of this bank, and how- 
 ever numerous the sufferers, the ruinous consequences can fall with no 
 greater weight on any one than upon Mr. Strahan himself, who brought 
 180,000 into the concern, every farthing of which has been lost. I am 
 justified, I believe, in saying that the partners have each and all evinced a
 
 120 FACTS, FAILURES, AKD FBAUDS. 
 
 common desire to meet the case fully and fairly, sharing the responsibility 
 alike, and making "what atonement tLey can for the misfortunes they have 
 inflicted on others, by giving every information in their power which may 
 lead to a full and truthful disclosure of their affairs, regardless of the con- 
 sequences to themselves, and the public censure, which they are only too 
 conscious of having deserved. 
 
 The prisoners were then remanded, and as no application was made to 
 admit them to bail, they were removed to the House of Detention. 
 
 From June, until the 12tli of September, Avhen the final 
 inquiry before the magistrates took place, and the prisoners 
 were committed for trial, they were brought up week by week 
 to the police-court, in order that the evidence, establishing 
 the crime against them, might be completed. On the 1st of 
 August an application to Mr. Jardine, the magistrate, to admit 
 them to bail, was successful, the amount being fixed at 6000 
 each personal recognizances, and two sureties of 3000 each, 
 with twenty-four hours' notice. Mr. Strahan's sureties were 
 put in on the following day, when he was liberated, and on the 
 8th Mr. Bates was also bailed out of prison. Sir John Paul 
 found great difficulty in obtaining sufficiently responsible sure- 
 ties ; and it was not until the 24th of August that the requisite 
 bail was put in on his behalf. Subsequently, on account of the 
 nature of the evidence adduced at the last examination, the 
 amount of the bail was extended in each case to 10,000 per- 
 sonal recognizances, and two sureties of 5000 each. In the 
 course of these repeated adjourned examinations, it was clearly 
 proved that the bonds had been purchased by the firm on Dr. 
 Griffith's order, and that they had been variously disposed of 
 by the prisoners without the consent or knowledge of the pro- 
 secutor, and the proceeds applied to their own purposes. 
 Amongst the mass of evidence adduced against the prisoners, 
 all more or less inculpatory, perhaps the most direct was the 
 testimony of Mr. Alexander Beattie, a personal friend of Sir 
 John Paul's. He deposed 
 
 I reside at Tunbridge Wells, and am a director of the National 
 Assurance Society. I remember, in the latter end of the year 1853,
 
 FACTS, FAILURES, A>*D FRAUDS. 121 
 
 Sir John Paul came to me as a personal friend, and requested a loan 
 of 20,000 upon certain stock. I informed him that the society with. 
 wliich I was connected did not grant loans in the way proposed, and re- 
 ferral him to the Stock Exchange. In March, 1854, he came to me again, 
 respecting a similar loan upon foreign securities, a memorandum of which 
 ho gave me at the time ; there being a difficulty about raising a loan upon 
 them, he expressed a wish to sell the securities, and I undertook the nego- 
 tiation for him. The securities were handed to my brokers, Messrs. Foster 
 and Braithwaite, who sold them for 12,281 5s. The amount was paid 
 into my bank by two cheques, and I afterwards gave Sir Jolin Paul a 
 cheque on my bankers for the same. 
 
 The securities here referred to were by other witnesses 
 identified as a portion of those which had been purchased 
 for Dr. Griffiths, and left with Strahan and Company for safe 
 custody. 
 
 At the Central Criminal Court, on the 18th September, 
 the grand jury returned a true bill against all the defendants, 
 and on the following day they surrendered. An application 
 by the counsel for the prisoners was, however, made and 
 granted to postpone the trial until the October sessions, on 
 the ground that they had not had sufficient time since the 
 committal to prepare their defence, and their bail having been 
 renewed in the same amount as before, they were allowed to 
 go at large until the trial. 
 
 The 26th of October having been specially appointed for 
 the trial, the accused, on the morning of that day, attended at 
 the Old Bailey in discharge of their bail, and having formally 
 surrendered, were placed in the felons' dock. The interest 
 which the case excited in the public mind was evidenced by 
 the crowded state of the court. Admission could only be 
 obtained by special tickets from the sheriffs ; and although, 
 these were issued with due regard to the capacity of the 
 building, the number of persons who obtained them was so 
 great, that it was with some difficulty the required accommo- 
 dation could be provided for those who were officially engaged 
 on. the trial. Many of the heads of the principal banking
 
 122 TACTS, TAILTJEES, AIS'D FEATJDS. 
 
 firms of the metropolis were there, men who had been for years 
 on terms of intimacy with the prisoners ; more than one peer 
 of the realm, and several leading members of the House of 
 Commons were present, and, as is always the case on these ex- 
 traordinary occasions, there was a considerable attendance of 
 fashionably-dressed ladies. 
 
 The appearance of the prisoners themselves was subdued, 
 and befitting their perilous position. Their eyes wandered 
 about the court, but without appearing to recognize any one 
 in it. The expression of Sir John Paul's countenance was 
 that of blank despair. Mr. Strahan bore himself with more 
 of firmness, while something like a feeling of hopeful con- 
 fidence was observable in the features of the other prisoner. 
 During the whole of the two long days over which the trial 
 extended, the prisoners remained almost motionless. Strahan 
 and Bates paid marked attention to the evidence, but the de- 
 sponding apathy of Sir John Paul was only roused when the 
 counsel for his fellow-delinquents endeavoured, by cross-exami- 
 nation or argument, to shield their respective clients by casting 
 the whole of the blame upon him. Great indeed was the sen- 
 sation when the verdict was pronounced, and a sentence of 
 fourteen years' transportation was passed. The prisoner Bates 
 betrayed evident surprise at the verdict, and more so at the 
 severity of the sentence. Mr. Strahan, who throughout main- 
 tained a quiet gentlemanly bearing, had full command over his 
 feelings to the last, and appeared unmoved. Sir John Paul, 
 who at first seemed scarcely to appreciate the full meaning of 
 the judge's last words, and the depth of the debasement to 
 which they had consigned him, lingered for a moment at the 
 front of the dock after his companions had moved away ; but, 
 suddenly recovering himself, his eye wandered amongst the 
 crowd, until it fell upon the countenance of the prosecutor, 
 and having attracted his attention, he gazed upon him with a 
 look which, if the reverend doctor had not been upheld by the
 
 FACTS, FAILURES, AXD FRAUDS. 123 
 
 self-consciousness of imperative duty, might have raised regret- 
 ful feelings in his mind. 
 
 Severe as this sentence undoubtedly was to men in tho 
 position of these defendants, no one can fairly say that it 
 wa-; more than commensurate with the offence. In a com- 
 mercial country such as England, no crime can be more 
 heinous against society, as constituted, than a breach of mer- 
 cantile trust. To tolerate it, or to pass it over with ill-judged 
 sympathy, and equally ill-timed mercy, would be to sap the 
 foundations of mercantile prosperity. Unfortunately, the 
 tone of commercial morality has been of late increasing in 
 laxity. In the wider fields for speculation, and the temptation 
 which the temporary possession of property belonging to others 
 offers to indulge in ill-considered enterprises, and to repair 
 losses in the hope of making them good by another venture, 
 the chief cause of this growing evil is probably to be found. 
 Had the sentence passed upon these delinquents been limited 
 to a short term of imprisonment, they would probably, on 
 their restoration to society, have met with commiserators and 
 supporters, while the lightness of their punishment might have 
 encouraged imitators. Now as convicts, condemned, and legally 
 condemned, to pass perhaps the whole of their remaining 
 days as felons, and the associates of felons, their fate, sad as it 
 is to themselves and their friends, will stand forth as a whole- 
 some example to deter others from following in the same course. 
 AVith regard to Mr. Bates, a very general opinion has prevailed 
 that his guilt was less in degree than that of his two partners. 
 Though nominally a principal in the firm, he was really nothing 
 more than a managing-clerk, having a life-salary of 1000 a- 
 year ; and in anything ho did, therefore, it may be urged, that 
 he was but obeying the directions of his superiors. No evi- 
 dence in support of this statement was produced upon the trial, 
 nor was it shown that any one of the illegal acts was committed 
 without his cognizance. As a partner, knowingly participating
 
 124 FACTS, FAILURES, AND FEATJDS. 
 
 in the advantages of the fraud, he was held to be equally 
 liable with the rest.* Perhaps, after all, retributive justice 
 has fallen most heavily upon Sir John Paul. Though his 
 name was introduced into the firm as early as the year 1823, 
 he took no share in the profits until 1852, when his father, 
 the late Sir John, died. It is clear, then, that when he 
 succeeded to the active responsibility of a partner, he 
 found himself the inheriter of insolvency. But although the 
 only honest course, on making this discovery, was to insist 
 upon the doors being at once closed, and the bankruptcy pro- 
 claimed, yet seeing that the whole traditions of his family were 
 associated with the "house," it was by no means an unnatural 
 feeling that he should desire to restore its fallen fortunes, and 
 establish himself, as his forefathers had been, at the head of a 
 respectable and prosperous bank. The credit of the firm was 
 at that time comparatively unimpaired, though its capital was 
 exhausted, and the attempt to use that credit for the purpose 
 of bringing back the capital, though highly reprehensible and 
 dishonest, was, under the circumstances, not altogether without 
 excuse. But the ulterior crimes which this, as far as Sir John 
 Dean Paul's participation in the affair has been made public, 
 was the first step towards, admit of no palliation, and the pun- 
 ishment which he shares with his fellow-criminals was fully 
 merited. He was as guilty as the other two partners ; but 
 now that all the facts are patent to the world, it would be 
 unjust to endorse an opinion that prevailed at the time, that 
 lie was the most guilty of the three, and that while his sentence 
 was no more than adequate to the offence, it was, in the in- 
 stances of Strahan and Bates, unduly severe. 
 
 * An attempt has been recently made to obtain the liberation of Sir 
 John Dean Paul and Mr. Strahan, on the ground that, after what has 
 transpired in the case of the Royal British Bank and other moired institu- 
 tions, the severity of the sentence, contrasted with the operation of the law 
 as defined by the Fraudulent Trustees' Act, is more than ever apparent. 
 The exertions of the friends of Mr. Bates have been successful, and he was 
 released in October, 1858.
 
 TACTS, FAILTJKES, A2s'D FRAUDS. 125 
 
 THE TRIAL OF MESSES. STEAHAN, PAUL, AND BATES. 
 CEXTKAL CEIJIINAL OLD COTJBT, Oct. 2G, 1855. 
 
 To-day having been specially appointed for the trial of Sir John Paul 
 and his partners, Messrs. Strahan and Bates, for illegally disposing of 
 securities to a large amount, which had been intrusted to them as bankers 
 for safe custody, the Court was filled at an early hour by persons anxious 
 to hear the proceedings. Shortly before ten o'clock, the defendants, Wil- 
 liam Strahan, John Dean Paul, and Eobert Mekin Bates, surrendered, and 
 were placed in the dock. At ten o'clock the learned Judges, Mr. Baron 
 Alderson, Mr. Baron Martyn, and Mr. Justice Willes, took their seats 
 upon the bench. Aldermen Sir E. W. Garden and Eagleton, Mr. Sheriff 
 Kennedy, and Mr. Tinder-Sheriff Stone, accompanied their lordships. A 
 great number of gentlemen connected with the banking and mercantile 
 community were also present. 
 
 The Attorney-General, Mr. Bodkin, and Mr. Poland, appeared for the 
 prosecution ; Sir F. Thesiger, who was specially retained, and Mr. Ballan- 
 tine, appeared for the defendant Strahan ; Mr. Sergeant Byles and Mr. 
 Hawkins were specially retained to defend Sir John Paul ; and Mr. E. 
 James, Q. C., also specially retained, and Mr. Parry, appeared for the 
 defendant Bates. 
 
 When the defendants were called upon to plead, 
 
 Sir F. THESIGEE applied to the Court on behalf of his ch'ent, that he 
 and the other defendants might be allowed to plead double, and that, in 
 addition to the plea of " Not guilty," they should be allowed to plead a 
 special plea, in order that they might take advantage of one of the sections 
 of the Act of Parliament under which the indictment was framed. Sir F. 
 Thesiger called the attention of the Court to the section of the Act of 
 Parliament of the 7th and 8th of George IV., under which the indictment 
 was preferred, and to the subsequent section, which directed that no person 
 should be criminally liable under the Act who had, under any compulsory 
 process, made a full statement of all the matters connected with the trans- 
 action, and upon them he grounded his application. 
 
 Mr. Baron ALDEESON, after consulting with his learned colleagues, said 
 the Court were of opinion that the course suggested by the learned counsel 
 was one that was without precedent, and the defendants must cither plead 
 " Not guilty," or else rely entirely upon the question of law. 
 
 The case was then about to proceed, when 
 
 The ATTOKXEY-GEXEBAL, addressing their Lordships, said ho was in- 
 formed that Mr. Beattie, who was a very important witness, was not in 
 attendance, and he said the administration of justice would bo in peril if 
 he proceeded with the cause in the absence of that witness.
 
 126 FACTS, FAILURES, AND 
 
 Mr. Baron AI/DEESOX inquired whether the witness had been subpoenaed, 
 or had received notice to attend ? 
 
 The ATTOBNEY-GEXEKAL said, he had been bound over by the ma<ns- 
 trate, and subpoenaed also. On the previous day he had sent a communi- 
 cation to Mr. Humphreys, the attorney for the prosecution, stating that he 
 was ill, and under medical advice, and had gone to his house at Tunbridge 
 Wells. He promised, however, to return to town this morning by a train 
 which would arrive at half-past ten o'clock. 
 
 The Court said that, under these circumstances, they had better wait a 
 short tune. 
 
 At eleven o'clock, as the witness had not arrived, the Attorney-General 
 applied for the witness to be called upon his recognizances and subpoena, and 
 this was done, when the Court ordered the recognizances to be estreated. 
 
 The ATTOBNEY-GESEBAL then applied for the postponement of the trial, 
 and a discussion was proceeding as to the future day upon which the trial 
 should be fixed, when, in the midst of it, it was announced that the missing 
 witness had arrived. 
 
 Mr. SLEIGHT, the deputy-clerk of arraigns, then read the indictment, 
 which alleged that the defendants had carried on the business of bankers, 
 and that, in that capacity, they had been intrusted with certain Danish 
 bonds, of the value of 5000, for the purpose of safe custody, and with- 
 out any authority to pledge, sell, or negotiate the bonds so intrusted to 
 them, they had, contrary to good faith, sold and converted them to their 
 own use. 
 
 In other counts, the defendants were charged with having sold the bonds 
 in question, and with having negotiated them ; and they were also charged 
 with conspiring together with the same object. 
 
 The defendants having pleaded " Not guilty," 
 
 The ATTORNEY- GEXEBAL then addressed the learned Judges and the 
 jury. He said, " I have, on the present occasion, a painful duty to dis- 
 charge, in pressing an accusation of a very serious character against the 
 defendants on this indictment gentlemen known to most of us. and who 
 have hitherto maintained a high position in society, and a character of 
 unquestioned integrity and honour, which prevented them from being sup- 
 posed capable of the offence with which they are now charged. The pre- 
 sent charge is one not only involving penal consequences of great magnitude, 
 but also affecting the honour and character of those gentlemen at the bar. 
 You are aware that the defendants carried on, for some tune, the business 
 of bankers in this metropolis. The firm was one of ancient date ; its trans- 
 actions were large, and it enjoyed the confidence of a highly numerous body 
 of customers. Among others, the present prosecutor, Dr. Griffith, Pre- 
 bendary of Eochester, opened an account with the then firm of Snow, Paul, 
 and Co. in 1830. In 1838, Snow retired, and the present defendants,
 
 FACTS, FAILUBES, AJfD FBAUDS. 127 
 
 Strahan and Bates, joined the firm. Subsequently, Sir J. D. Paul, the 
 father of the defendant (Sir J. D. Paul), died, and from that period the 
 business has been conducted by the three defendants. Dr. Griffith con- 
 tinued the account he had opened -with the firm of Snow, Paul, and Co. in 
 1830, until the transactions now the subject of inquiry occurred. He was 
 a gentleman of great fortune and character, and employed the defendants, 
 as bankers, to invest money for him from time to time in public and foreign 
 securities. The present inquiry relates to some of those securities, fraudu- 
 lently disposed of by the defendants, in contravention of the statute which 
 makes it penal to dispose of securities placed in their hands for safe custody. 
 Among these securities were certain bonds issued by the Danish Govern- 
 ment, bearing interest at the rate of 5 per cent. ; and I will confine my 
 present observations entirely to those securities, as they form the subject of 
 the present inquiry. It seems that on three several occasions Dr. Griffith 
 employed the defendants to invest money for him in these Danish Five per 
 Cent. Bonds. In 1849, the Danish Government raised a loan, and issued 
 bonds as security to the persons advancing money. In January, 1850, Dr. 
 Griffith instructed the defendants to invest for him in these Danish Five 
 per Cent. Bonds the sum of 2000. Whether he gave a written order on 
 that occasion is uncertain, though probably he did. He had, however, no 
 distinct recollection of that circumstance, and no order had been found ; 
 but nothing turns on that point, for it is quite clear that he gave authority 
 to make the purchase. Accordingly, a stockbroker in the City did purchase 
 on behalf of Dr. Griffith, that amount. The bonds were bought on the 
 2nd of February, 1850, and were afterwards delivered at the bank of the 
 defendants. They were five bonds of 400 each, and were numbered 370, 
 460, 459, 457, and 458. Dr. Griffith was forthwith debited hi the books of 
 the bank for a sum of 2002 10*., which was the amount paid, including 
 the commission, for the bonds so bought. The next transaction was in the 
 month of April in the same year, when Dr. Griffith authorised the defend- 
 ants to invest another sum of 1000 in the same securities. On that occa- 
 sion the defendants gave the order to Messrs. Sims and Hill, stockbrokers, 
 and accordingly, the latter made the purchase, and sent it to the defendants' 
 banking-house in one bond. The number of this bond was 87, and the 
 defendants debited the prosecutor in the books of the bank to the amount 
 ~>8 15*. Their third transaction was in 1851, and, on that occasion, 
 it is quite clear that a written order was given by Dr. Griffith to the defend- 
 ants. That has been found, and it is an order desiring the defendants to 
 invest 2000 in the same securities as before mentioned. The defendants 
 thereupon again instructed Messrs. Sims and Hill to purchase the amount, 
 and the latter did so on the 10th of April, and forwarded the bonds on tho 
 16th to the banking-house. The bonds consisted of two of 400 each, 
 numbered 426 and 573 j two of 300 each, numbered 793 and 794 ; and six
 
 128 PACTS, FAILURES, A!SD FEAUDS. 
 
 of 100, numbered 657, 659, 660, 661, 662, and 663. For this purchase, the 
 prosecutor was debited in the bank books of the defendants 2037 10*. 
 These several bonds were purchased by the defendants through the brokers, 
 on these three several occasions, by the express authority of Dr. Griffith. 
 The defendants regularly received the dividends on these bonds as they 
 became due ; and credited in then" books Dr. Griffith with them. They 
 received the dividends from tune to tune, and continued to do so until the 
 1st of March, 1854. It appears that, at that time, the firm of Strahan and 
 Co. had got into certain difficulties, and had recourse to the desperate and 
 guilty expedient of resorting to the securities they held in their hands, 
 belonging to their customers, for the purpose of raising money to meet the 
 necessities of the hour. It appears that, in the course of March, 185-1, Sir 
 J. Paul applied to a gentleman of the name of Beattie, secretary to a com- 
 pany called the National Insurance Company, to advance a sum of money 
 on behalf of the company, in respect of and on the faith of these bonds. 
 Mr. Beattie, however, answered that the company did not advance money 
 on such securities, upon which Sir J. Paul asked him if he would dispose of 
 some of these securities, in order to raise the money. Mr. Beattie consented 
 to this transaction, and took some of the securities from Sir J. Paul, and 
 placed them in the hands of Messrs. Foster and Braithwaite, brokers, in the 
 City, for the purposes of sale. Among these securities were the very bonds, 
 the numbers of which I have enumerated, and which constituted security 
 for 5000. These were placed by Mr. Beattie in the hands of Messrs. 
 Foster and Braithwaite, on the following day, the 16th of March. Messrs. 
 Foster and Braithwaite gave their cheque for the amount of the sale to Mr. 
 Beattie, including in it the sum of 4,793 13,?. 6d. for the Danish bonds. 
 The cheque being crossed, Mr. Beattie was unable to get it immediately 
 cashed to hand over the proceeds to Sir J. Paul, but he paid the cheque 
 into his bankers, as well as another cheque he had received at the same time 
 on account of proceeds from other securities not concerned with this inves- 
 tigation. He then drew a cheque on his bankers in favour of Sir J. Paul, 
 and gave it to Sir J. Paul. There is no doubt that Sir J. Paul received the 
 money on account of that cheque, and made it available for the purposes of 
 the firm. Therefore, so far as Sir J. Paul is concerned, there can be no 
 question of his complicity in the guilty transaction of misapplying the 
 securities which had been deposited with him for safe keeping. It will be 
 made perfectly clear by the evidence that Sir J. Paul and his partner had 
 no authority, direct or indirect, from Dr. Griffith, to sell or otherwise dis- 
 pose of these securities. They had been deposited in then- hands, as being 
 the bankers of Dr. Griffith, for safe custody. Nevertheless, Sir J. Paul did 
 dispose of them, and carried the proceeds, not to Dr. Griffith's account, 
 but to his own use. Therefore, so far as Sir J. Paul is concerned, the case 
 is quite clear against him. With regard to the other two defendants, what
 
 FACTS, J-AILTTRF.S, AND FBAUDS. 1^!) 
 
 waa the state of their knowledge of the transaction ? That must be shown 
 by other evidenee. This transaction took place in March, 1854, and in the 
 month of June in this year the embarrassments of the firm became so great 
 that it \vai impossible for it to go on. It accordingly stopped, and became 
 bankrupt. On hearing this, Dr. Griffith, who had at the time 22,000 
 worth of securities in their hands, became considerably alarmed, and im- 
 mediately put himself in communication with the official assignee, and 
 asked what had become of his securities. The official assignee proceeded 
 to the banking-house, and inquired about them. He was told by Mr. 
 Strahan, in the presence of Mr. Bates, that the securities were either sold 
 or pledged. He then asked whether, in any book, the securities of the 
 customers were recorded ; and Mr. Strahan and Mr. Bates looked at one 
 another, and he got no answer. Shortly afterwards, Mr. Strahan proceeded 
 to see Dr. Griffith, who, in the meantime, had laid a criminal information 
 against the partners. Mr. Strahan acknowledged fully that the securities 
 had been disposed of with his knowledge and co-operation, but urged most 
 anxiously on Dr. Griffith to forego this prosecution, and not to adopt any- 
 thing like a criminal proceeding. Dr. Griffith observed that he had a 
 public duty to perform, and that, however unwilling he might feel to act 
 hostilely towards gentlemen with whom he had been acquainted, he had no 
 alternative but to enforce the application of the law against them. The 
 jury will hear the details of the conversation which passed with Dr. Griffith, 
 whieh will leave no doubt on their minds that Mr. Strahan thoroughly 
 combined with Sir J. Paul in this transaction. In fact, the object was to 
 raise money to meet the necessities of the bank ; and, therefore, it will not 
 be straining the evidence at all to say that what was done, \vas done with 
 the concurrence of Mr. Strahan ; and it will be for the jury to say whether 
 or not the transaction is brought fully homo to Mr. Bates. The defendants 
 are indicted under the 7th and 8th of George IV., chap. 29, section 49, 
 which provides : " And for the punishment of embezzlements committed 
 by agents intrusted with property, be it enacted, that if any money, or 
 security for the payment of money, shall be entrusted to any banker, mer- 
 chant, broker, attorney, or other agent, with any direction in writing to 
 apply such money or any part thereof, or the proceeds or any part of the 
 proceeds of such security, for any purpose specified in such direction, and 
 he shall, in violation of good faith, and contrary to the purpose so specilu d, 
 in any wise convert to his own use or benefit such money, security, or pro- 
 ceeds, or any part thereof respectively, every such offender shall bo guilty 
 of a misdemeanour, and, being convicted thereof, shall be liable, ;it thu 
 discretion of the Court, to bo transported beyond the seas for any term rot 
 exceeding fourteen years, nor less than seven years, or to sufier MI. h utlh-r 
 puiii.-liuirut, by fine or imprisonment, or by both, as the Court shall award ; 
 and if any chattel, or valuable security, or any power of attorney for tho
 
 130 TACTS, FAILURES, AND FEATJDS. 
 
 gale or transfer of any share or interest in any public stock or fund, -whether 
 of this kingdom, or of Great Britain, or of Ireland, or of any foreign state, 
 or in any fund of any body corporate, company, or society, shall be intrusted 
 to any banker, rnei'chant, broker, attorney, or other agent for safe custody, 
 or for any special purpose, without any authority to sell, negotiate, transfer, 
 or pledge, and he shall, in violation of good faith, and contrary to the object 
 or purpose for which such chattel, security, or power of attorney shall hare 
 been entrusted to him, sell, negotiate, transfer, or pledge, or in any manner 
 convert to his own use or benefit such chattel or security, or the proceeds 
 of the same, or any part thereof, or the share or interest in the stock or 
 fund to which such power of attorney shall relate, or any part thereof, every 
 such offender shall be guilty of a misdemeanour, and, being convicted thereof, 
 shall be liable, at the discretion of the Court, to any of the punishments 
 which the Court may award, as hereinbefore last mentioned." I shall show 
 that these securities were purchased by the direction of Dr. Griffith, with 
 his money ; that they were left for safe custody in the hands of his bankers, 
 and that they were disposed of, with the knowledge undoubtedly of two of 
 the defendants, without the authority of Dr. Griffith, and that the proceeds 
 were applied in such a way as brought the transaction within the terms of 
 the statute he had referred to. These facts I shall prove distinctly, and I 
 am at a loss to know in what way they can be met on the part of the defen- 
 dants. It has been suggested that the defendants by disclosing, in an ex- 
 amination before the Court of Bankruptcy, all these circumstances, may 
 avail themselves of the terms of another section of the statute, which enacts 
 " That nothing in this Act contained, nor any proceeding, conviction, or 
 judgment to be had or taken thereupon against any banker, merchant, 
 broker, factor, attorney, or other agent as aforesaid, shall prevent, lessen, 
 or impeach any remedy at law or in equity which any party aggrieved by 
 any such offence might or would have had if this Act had not been passed j 
 but, nevertheless, the conviction of any such offender shall not be received 
 in evidence in any action at law or suit in equity against him ; and no 
 banker, broker, merchant, factor, attorney, or other agent as aforesaid, shall 
 be liable to be convicted by any evidence whatever as an offender against 
 this Act in respect of any act done by him, if he shall at any tune, pre- 
 viously to his being indicted for such offence, have disclosed such act, on 
 oath, in consequence of any compulsory process of any court of law or 
 equity in any action, suit,' or proceeding which shall have been bond fide 
 instituted by any party aggrieved, or if he shall have disclosed the same in 
 any examination or deposition before any commissioners of bankruptcy." 
 It is true that there were proceedings in bankruptcy, and that some disclo- 
 sures were made by one of the defendants, or perhaps by the whole of them ; 
 but I believe that there will be very little difficulty in showing that what- 
 ever took place in the Court of Bankruptcy was done by concert and conniv-
 
 TACTS, FAILURES, AXD FBATTD3. 131 
 
 ance. It \vas not a compulsory proceeding, but was resorted to purposely 
 with tlii. 1 vii-w that the defendants might avail themselves of a particular 
 section in the Act of Parliament referred to. The securities in question 
 were sold in March, 185i, and after that, if I am not misinformed, the 
 defendants bought other securities, with a view to replace those they had 
 disposed of, and at a subsequent period, shortly before stopping, they dis- 
 posed again of the new securities so purchased, not to the persons they sold 
 the first to, but to other persons. Now, the disposal of these latter securi- 
 ties, to which the disclosure in the Court of Bankruptcy referred, is not the 
 occasion of the present charge against the defendants. I know nothing that 
 they may have subsequently done that is at all binding on Dr. Griffith. 
 That gentleman authorized and intrusted them to purchase and keep specific 
 securities with specific numbers, and it is for getting rid of those securities, 
 without his authority, and converting the proceeds to their own use, that 
 they are now charged. With respect to other securities which they may 
 have purchased subsequently, I know nothing ; and I believe, therefore, 
 that this defence, if gone into, will fail. Having now stated the principal 
 features of the case, I feel it is not incumbent on me upon the present occa- 
 sion to say one single word which would tend to aggravate the position of 
 the defendants, or which would operate to their prejudice. I shall simply 
 proceed to prove the facts I liave stated, and L do not believe that, either 
 on the merits or law of the case, there can be any answer to the charge. 
 
 The evidence entered into was, in every detail, a repetition of that 
 which has already been given in the history of the feilure. The case for 
 the prosecution having been concluded, 
 
 Sir F. THESIGEB wished to call their lordships' attention to the nature 
 of the evidence against his client, Mr. Strahan. The indictment charged 
 him with a misdemeanour in respect to certain bonds, which were num- 
 bered, and which were sold by Foster and Braithwaite in March, 1854. 
 But there was no proof that Mr. Strahan had anything to do with that 
 transaction, nor any evidence in support of the charge, except the con- 
 versation which had been stated by Dr. Griffith, and which conversation 
 referred, not to the transaction in question, but to a transaction which had 
 occurred only six weeks before that conversation. Dr. Griffith was told 
 that his securities had been taken by Sir J. D. Paul to Messrs. Overend 
 or Burnand about six weeks previously. It was cl.'ar that this statement 
 could not apply to the bonds in question, whieh were sold in March, 1854, 
 and, with the exception of a statement made by Mr. Bell, the official 
 assignee, of a conversation of the 16th of June last, in which Mr. Strahan 
 was stated to have told him that Dr. Griffith's securities were 
 pawned or sold, there was nothing to affect Mr. Strahan with a knowledge 
 of the sale of these bonds by Foster and Braithwaite and the payment of 
 the proceeds of the sale to Sir J. D. PauL He wished to know whether
 
 132 TACTS. FAILUBES, A>*D 
 
 their lordships thought there was evidence to go to the jury as against 
 Mr. Strahan ? 
 
 Mr. Baron AiDEESOK thought there was evidence enough to go to a 
 
 jury- 
 Sir F. THESIGEE wished to remind their lordships that 5000 worth of 
 Danish Bonds had been bought by the bank, and there was no evidence 
 that any other customer except Dr. Griffith held this description of stock. 
 Dr. Griffith had. punctually received the dividends on this stock so re- : 
 placed. 
 
 Mr. Baron ALDEBSOIT thought there was evidence he would not say 
 how much or how little to show that Strahan was a party to the repre- 
 sentation to Dr. Griffith that the bank had these particular bonds safe at 
 the time they were all gone. 
 
 Mr. Baron MAETIN and Mr. Justice WILLES concurred. 
 Mr. JAMES wished to know whether the Court considered that there 
 was any evidence as against his client, Mr. Bates ? 
 
 Mr. Baron AiDEESOU' thought there was. The evidence was indeed 
 rather stronger as against Bates, because he seemed to have been taking a 
 more active part in the affairs of the bank than the others. 
 
 Sir F. THESIGEE then rose to address the jury in defence of Strahan. 
 He said May it please your lordships and gentlemen of the jury, I rise 
 to address you under feelings of greater pain and anxiety than I ever ex- 
 perienced on a similar occasion before, and that pain and anxiety have not 
 been lessened by an observation which was made by one of your lordships 
 in reply to an application which I felt it my duty to make on behalf of 
 Mr. Strahan, with reference to the position of the case now that the evi- 
 dence for the prosecution is closed. My learned friend the Attorney- 
 General, with that feeling and forbearance in the conduct of the prose- 
 cution which invariably characterize him, has told you that the gentlemen 
 now before you have for many years maintained a high position in society, 
 and a character of the highest honour and integrity. I cannot forget the 
 position of Mr. Strahan, possessed of wealth and station, respected by 
 numerous friends, surrounded by an affectionate family, and when I con- 
 trast that former position with his appearance to-day, I feel almost dis- 
 abled from performing the task which I have been called upon to undertake. 
 But these circumstances alone would not create the embarrassment which 
 exists in my mind in undertaking the defence of this gentleman. I am 
 not insensible to the fact, that for weeks and weeks publications have ap- 
 peared in the papers in which the conduct of these gentlemen has been 
 strongly arraigned, and every prejudice excited against them in the public 
 mind. It is the boast of this country that every person accused is re- 
 garded as innocent until a jury of his countrymen find a verdict of guilty 
 against him. And yet these gentlemen have now been for many months
 
 FACTS, FAILUBES, AND FRAUDS. 183 
 
 brought before the bar of public opinion. They appear before you con- 
 demned by that voice, and you are supposed impartially to judge upon 
 their case under these circumstances. Juries are generally warned that 
 they must dismiss entirely from their minds all that they have heard before 
 they assembled in court. Gentlemen, it is utterly impossible when once 
 any idea or opinion has obtained admission into the human mind to dis- 
 miss it, and, indeed, the effort to dismiss it \vould only fix it the more 
 firmly there. What I ask and expect from you is, that you will clearly 
 discriminate between the impressions you have received from the publica- 
 tions to which I have adverted, and the evidence that you have now re- 
 ceived on oath, and upon which alone you will have to determine the guilt 
 or innocence of these parties. I do ask, and I do expect, that you will do 
 that simply as an act of justice which, if it were your misfortune to stand 
 in a similar position, you would expect to be done to you. Gentlemen, I 
 trust that, when I call your attention and that of my lords to the charge 
 against Mr. Strahan, and to the evidence which has been brought to 
 establish that charge, whatever hasty impression you may have taken up 
 whatever opinion you have conceived on a partial view of the circum- 
 stances will be removed by a careful and considerate judgment upon the 
 facts that have been submitted to you. If I only succeed in placing 
 clearly and intelligibly before you the position of Mr. Strahan in this case, 
 as it is proved in the evidence, I am under no apprehension whatever that 
 impartial justice will not be administered to him. Gentlemen, I am not 
 here for one moment to deny that, in the month of April, 1855, Mr. Strahan 
 did, unhappily, in a moment of pressure, agree to apply certain securities 
 of his customers, for the purpose of relieving the necessities of the bank 
 at that present moment. I am not here for one moment to justify such an 
 act. It is not the act into which you are to inquire, but it may, and per- 
 haps must, create a prejudice in your minds ; and I am anxious to warn 
 you against allowing it to exercise any improper influence upon you. It is 
 most lamentable to think, that a gentleman who had so long maintained a 
 character for honour and integrity, should have fallen away in a moment 
 of temptation. It is the most extraordinary illustration of that solemn 
 warning which cannot be repeated too often " Let him that thinketh he 
 standeth take heed lost he fall." It requires the labour of a whole life to 
 build up a character for honour and virtue, wliich in one fatal and un- 
 guarded moment may be entirely destroyed. Although, therefore, I do not 
 defend the act to which Mr. Strahan was unfortunately a party in 1855, 
 yet the case which you are now considering against him is the charge of 
 having misappropriated the property of his customers in March, 1854; 
 and I pray your attention to the evidence upon which it is sought to fix 
 him with that act. The learned counsel proceeded to say, that the indict- 
 ment contained various counts applicable to the appropriation of Dr. Grif-
 
 134 FACTS, FAILURES, AND FRAUDS. 
 
 fith's bonds in the year 1854. An observation bad dropped from one of 
 the learned judges, calculated to convey an erroneous impression -with 
 regard to the act of one partner criminally affecting another. Although it 
 was true that in civil proceedings the act of one partner affected another, 
 yet he -would declare with the utmost confidence, that if this were declared 
 to be the law in criminal cases, it would be the first time that such a 
 doctrine had ever been promulgated from the bench in any English court 
 of justice. 
 
 Mr. Baron ALDEKSON intimated that no such opinion had fallen from 
 him. 
 
 Sir F. THESIGKER would briefly call the attention of the jury to the 
 state of the law previously to the passing of the act of the 7th and 8th of 
 George IV., chap. 29. In the year 1812, if a banter or agent of any de- 
 scription, having the property of a customer intrusted to him, misappro- 
 priated or converted it to his own use, he was not guilty of any criminal 
 act, although he was responsible to his principal or customer upon any 
 civil proceeding. This great defect in the law was not discovered until 
 one Welch, a stockbroker, sold out certain stock belonging to Sir E. Plum- 
 mer, Master of the Rolls. Welch applied the produce of the sale to his 
 own use, and absconded. He was tried and was found not guilty of a 
 criminal offence. An Act of Parliament was therefore passed, by which 
 any banker or agent who should sell and appropriate to his own use the 
 securities of his customers without their authority, was liable to conviction 
 for a misdemeanour. A clause was introduced into the Act that the penalty 
 annexed should not extend to any partner or partners, unless such partner 
 or partners should commit or be privy to such offence. Another Act after- 
 wards passed to make factors who should pledge the goods of their prin- 
 cipals answerable in a criminal proceeding. This and the previous statute 
 were embodied in the 7th and 8th of George TV., chap. 29, which applied 
 both to bankers and factors. What the jury had to decide apart from 
 all prejudice and influence exercised by the public press, and apart from 
 any feeling which they might entertain of the impropriety and immorality 
 of Mr. Strahan's conduct in 1855 was, whether there existed sufficient 
 proof that Mr. Strahan was privy to the act of selling the bonds in question 
 by Foster and Braithwaite, in March, 185-1'. He was anxious, in defending 
 Mr. Strahan, not to prejudice by any observations of his the case of the 
 other defendants, but he was necessarily compelled to advert to the course 
 taken by Sir J. D. Paul, with respect to the sale of the bonds at the time 
 he had mentioned. It was perfectly clear that no other of the partners 
 except Sir J. D. Paul interfered to procure the sale of the Danish bonds by 
 Foster and Braithwaite. Sir J. D. Paul applied to Mr. Beattie for a loan 
 from the National Insurance Society, and when Mr. Beattie stated that his 
 company were not in the habit of advancing money upon foreign securities,
 
 FACTS, FAILURES, AND FRAUDS. 135 
 
 he entreated Mr. Beattie to dispose of them. 3\o doubt tho very bonds 
 now i:i court were sold by Foster and Braithwaite, and that a cheque for 
 1, drawn by Mr. Beattie, and paid in bank-notes, was received by 
 Sir J. D. Paul himself. This sum was not traced after its receipt by Sir 
 J. D. Paul ; but, even supposing he entered this sum in tho books of tho 
 bank to the credit of tho firm, that would not be proof in a criminal pro- 
 ceeding that Mr. Strahan or the other partners were privy to the act, 
 because there was notliing to indicate what the nature of the credit was, 
 and the fact of the credit could only be known after the act had been done. 
 The money could not have been received until after the act charged had 
 been done, and tho inero knowledge of the credit did not show any partici- 
 pation in the act. The jury were called upon to decide upon a criminal 
 charge which might be followed by the most serious consequences, and they 
 were not to assume without any proof that Mr. Strahan must have had a 
 knowledge of tlu's transaction. Everything, indeed, indicated an absence 
 of such knowledge on his part. The 5000 of Danish Five per Cent, bonds, 
 belonging to Dr. Griffith, having been disposed of in March, 1854, in June, 
 1354, the same amount of Danish Bonds was purchased by Sims and Hill 
 for, and delivered to, Strahan and Co. There was no doubt that the divi- 
 dends on these bonds were received by Strahan and Co. for Dr. Griffith, and 
 that he was credited with the dividends in his pass-book in September, 
 1854, and March, 1855. There was nothing to lead the jury to believe 
 that Mr. Strahan was in the slightest degree aware of the disposal of the 
 former bonds of Dr. Griffith, and the substitution of those bonds on which 
 the dividend had been paid. Ho now came to the conversations upon, 
 which his learned friend relied to fix Mr. Strahan with the guilty knowledge 
 of the transaction of 1851. Dr. Griffith asked Mr. Strahan about his se- 
 curities. Mr. Strahan said they had been taken into the City, either to 
 Overend'a or Burnand's. It was clear that this statement could not apply 
 to the sale of the Danish Bonds in 1854. Mr. Strahan then told Dr. Grif- 
 fith, " I assure you it is the first dishonest act of my life. I never defrauded 
 a man of sixpence ;" and he added that this had happened six weeks ago. 
 But his learned friend was using this confession of a dishonest act in 1855 
 to aflect Mr. Straban upon a charge of disposing of bonds in 1854. No 
 doubt if Mr. Strahan were a party to tho transaction of 1854, it was an 
 equally dishonest act with that of 1855. Mr. Strahan said nothing about 
 185 1 , but he said, " Tin's is the first dishonest act of my life, and it was 
 don3 six weeks ago." With respect to tho evidence of Mr. Bell, that 
 gentleman was not very clear in his recollection; but ho would a*k the 
 jury hi charity to consider, if Mr. Strahan really said that tho securities 
 were pawned or sold, that ho was applying his observations to tho only 
 transaction within his knowledge, namely, that of tho month of April in 
 the present year. He believed he had stated the whole of the evidence on
 
 136 TACTS, TAILUEES, AKD FfiATJDS. 
 
 which the jury could be called criminally to convict Mr. Strahan on this 
 serious charge. He believed that if the public mind had not been directed 
 to this case with a great deal of curiosity, they -would not have heard of 
 there being any case upon such evidence to fix Mr. Strahan with any par- 
 ticipation in the guilt of this transaction. Both on the counts respecting 
 the pledging of these securities, and on the counts of conspiracy to pledge 
 them, he maintained that there was no evidence against Mr. Strahan. The 
 learned gentleman then referred to the disclosure made by Mr. Strahan 
 before the Court of Bankruptcy, -which, he said, had been made faithfully 
 by that gentleman in respect to all the circumstances within his own know- 
 ledge. Before 1812, this misapplication by bankers or other agents of the 
 property of their principals was only subject to civil proceeding, and was 
 not a criminal act until made so by the statute passed in the 52nd of 
 George III. That provision had been enlarged and expanded by subse- 
 quent enactments, providing, at the same time, that where a person had 
 made certain disclosures, under compulsory process, in a court of law, he 
 should not be indictable on that account. The 7th and 8th of George IV. 
 enlarged the privilege, and extended it to the case of examinations before 
 the Commissioners for Bankruptcy. From something that fell from the 
 Attornev- General, he was inclined to believe that his learned friend meant 
 to say that this disclosure on the part of the bankrupts was voluntary, and 
 not compulsory, and, therefore, to that the act did not apply. He thought 
 that point must fail, for a bankrupt was bound, under the Act of Parlia- 
 ment, to make a full disclosure connected with his property. Now, what 
 was the disclosure made by Mr. Strahan ? He solemnly declared he knew 
 nothing but the pledging of Dr. Grffith's bonds to Messrs. Overend, Gurney, 
 and Co., in April, 1855, and the whole of his disclosure amounted to demon- 
 stration clear that he was ignorant of any previous transaction with respect 
 to these bonds. There was not the slightest evidence of the participation 
 of Mr. Strahan in the transaction of 1854. If, then, Mr. Strahan knew 
 nothing more than the transaction of 1855, and if he disclosed that fully, 
 then he would be rightly entitled to that defence, which he might use as a 
 shield against the present assault on him. With respect to the conspiracy 
 counts, he maintained that, supposing the defendants relieved by the dis- 
 closures they made from the charge of any criminal act, they could not be 
 rendered liable for a conspiracy to do that act. In conclusion, the hon. 
 and learned gentleman earnestly and anxiously entreated the jury to look 
 carefully at the whole evidence, and, apart from all prejudices, to consider 
 what it was that was charged against the parties on this occasion, and what 
 was the evidence against Mr. Strahan ; and he expressed the most entire 
 confidence that, according to the first principles of the criininal law, as 
 administered in this country, Mr. Strahan had not been affected by any
 
 PACTS, FAILTJBES, AXD FEAUDS. 137 
 
 evidence with respect to the particular transaction on which the verdict of 
 the jury was to be taken. 
 
 Mr. Serjeant BYLES fully participated in the feelings expressed by his 
 learned friend, and believed that a more painful spectacle than the present 
 had seldom been exhibited in a coxirt of justice. He conceived that the 
 anguish of mind the present position of the defendants must have caused 
 them was adequate punishment for any act of theirs done in an unguarded 
 moment, and under the pressure of the most irresistible distress. He 
 should not have begun with these observations if he did not know that 
 their case had been prejudiced, and that they had been tried and condemned 
 by the press, on the leaves of which we lived, and, like other insects, took 
 our colour from. Ex parte statements had appeared in the columns of 
 the daily press, and he should not be doing his duty if he did not allude 
 to them. Sir J. Paul had been charged with being a religious man only 
 for his own selfish gains ; and of assuming the character of a benevolent 
 person only to attract charitable societies to his bank, which societies he 
 afterwards caused to be great losers by his failure. That was an utter 
 calumny. He was a benevolent man from his own means while yet young 
 and when his father was living, and his charity was evinced in supporting 
 incumbents in poor places, and not in niggardly advancing his own in- 
 terests. There were witnesses in that court to the truth of what he was 
 saying, and even the prosecuting counsel himself had declared that, until 
 the date of the transactions into which they were now inquiring, Sir J. Paul 
 was considered a person of unquestioned integrity and honour. He did 
 not deny that these bonds were disposed of by Sir J. D. Paul, but upon 
 the failure of Gandell for 300,000, who was largely indebted to the bank, 
 Sir J. D. Paul was desirous of raising money on these bonds. He did raise 
 money upon them, but with the full intention of replacing them imme- 
 diately, which he did. He bought the same number of bonds back in the 
 following June, and replaced them at a sacrifice. He paid Dr. Griffith the 
 dividends on these bonds, so that the doctor sustained no loss of interest ; 
 and it was for selling these bonds on the 16th of March, and buying them 
 on the 1st of June following, at an advance, that Sir J. D. Paul was now 
 on his trial before the jury. Sir J. D. Paul did not instruct him to eay, 
 and he did not say, that in raising this money, although he replaced the 
 bonds, was not doing wrong. Sir J. D. Paul admitted ho did wrong, but 
 he replaced Dr. Griffith's bonds at a loss to himself. 
 
 Mr. Baron ALDEBSOX Is it quite certain he did replace them? 
 
 Mr. Serjeant BYLES I do not soy he replaced the identical bonds. 
 
 Mr. Baron ALDEHSON Probably the 5000 by which they were re- 
 placed was the property of his assignees. 
 
 Mr. Serjeant BYLES said, it was clear that the bonds which were pur-
 
 133 FACTS, FAILURES, AND FRAUDS. 
 
 chased in June, 1851, were substituted for the bonds that were originally 
 used. All the defendants could do was to buy similar bonds, and this 
 purchase of bonds of the same kind and amount was the same as if the 
 same bonds had been bought. "When the affairs of the bank came into the 
 Bankruptcy Court, it was Sir J. D. Paul's duty to make a disclosure of 
 \vhathe had done, and, having made a full disclosure of all his dealings, he 
 was no longer liable to criminal proceedings. The petition for adjudication 
 was not sued out in the Court of Bankruptcy with any view to these pro- 
 ceedings. The Attorney-General said that this was a voluntary step, but 
 a bankrupt was obliged to make a full disclosure of all his acts. The ex- 
 amination was compulsory, and the point was, whether the questions put 
 by the assignees and the answers given were such a disclosure as the act 
 contemplated. This point of law would be determined by their lordships 
 as to them would seem fit. 
 
 Mr. JAMES said, he should rest the case of the defendant Bates upon 
 his total ignorance of the sale of the Danish bonds through Foster and 
 Braithwaite. There was an entire absence of any evidence to show that 
 he was a party to that sale. The mere fact that Mr. Bates was a partner 
 in the firm in 1854, was not enough to fix him with the criminal conse- 
 quences of this alleged transaction. The transaction of the 16th of March, 
 1854, was the transaction of Sir J. Paul, and Mr. Bates was not impli- 
 cated in it ; and after the pledging of the bonds to Overencl, Gurncy, and 
 Co. became known to Mr. Bates, he discovered the whole transaction. 
 There was not a tittle of evidence to show that he was aware of the former 
 transaction. A man might be deceived by his partner having the financial 
 management of a bank, and, in respect to a criminal charge of a most 
 serious nature, the punishment, on the first principles of moral justice, 
 should fall only on the guilty. Even the Attorney- General had expressed 
 some doubt whether the charge was fully brought home to Mr. Bates. 
 He knew the importance of this trial, involved as it was with the interests 
 of commerce. Probably, many within the sound of his voice might have 
 severely suffered from the fall of this house, once so respectable. It was 
 perfectly possible that the jury might be attacked by the press for giving 
 a fearless and discriminating verdict ; but still he felt confident that they 
 would discharge their duty firmly. He asked for Mr. Bates no more than 
 strict impartiality and a minute examination of the evidence, and then he 
 confidently anticipated that they would find a favourable verdict in the 
 case of his client. 
 
 The case was here adjourned until the nest morning. It being a 
 charge of misdemeanour only, the jury were allowed to depart, and the 
 defendants were also permitted to be at large, upon renewing the recog- 
 nizances and bail under which they had surrendered. The bail of Mr.
 
 TACTS, TAILUP.ES, AND FRAUDS. 139 
 
 Bates only being in attend -race, the other two defendants were detained in 
 custody. 
 
 The trial was resumed the following morning (October 27), at ten 
 o'clock. Baron Alderson, Baron Pollock, and Mr. Justice WilJes having 
 taken their scats, 
 
 The ATTOBXEY-GEITEBAL inquired of the Court what course should bo 
 taken in reference to the decision upon the point raised on behalf of the 
 defendants, that having made a full declaration under the fiat of bank- 
 ruptcy they were not criminally liable. 
 
 Mr. Baron AxDEBSON That will be a question entirely for the Court, 
 and not for the jury. The question is, what is meant by the word " dis- 
 closure" in the Act of Parliament, whether it means something that was 
 known before or something that was not known before. If the Court 
 should be of opinion that the disclosure made is that contemplated by tho 
 Act, then it will be our duty to instruct the jury that there is no evideuco 
 before them. 
 
 Mr. Serjeant BTLES In this case the disclosure is complete. Tho 
 bankrupts surrendered. They said, " Here we are, and this is what wo 
 hare done with the bonds." 
 
 Mr. Lawrance Abrahall, Registrar of the Court of Bankruptcy, put in 
 the formal record of the proceedings in bankruptcy, and the disclosures of 
 tho bankrupts made in the course of their examination at the Bankruptcy 
 Court as to tho disposal of the 5000 Danish Bonds, which forms the 
 subject of the indictment their sale in March, 1854 the purchase of 
 other bonds subsequently, and the depositing of these with Overend, 
 Gurney, and Co., in April. 
 
 Mr. Lewis, attorney for the defendants Paul and Strahan, examined by 
 Serjeant BYIES The defendants consulted me after their stoppage, and it 
 was by their advice that the statements read were prepared. They con- 
 sulted me with a view, amongst other things, of making the disclosures 
 within the statute. That statement was produced to the Commissioners, 
 and the bankrupts requested that it might be handed in as their statement 
 with reference to the securities they had received from customers, and tho 
 manner of their disposal. 
 
 The ATTOByEY-GENERAL Not with reference to these solely. 
 
 Witness As to the securities generally, and the manner of their dis- 
 posal. 
 
 By Serjeant BnE3 The commissioner stated that as no creditor asked 
 for them, the bankrupts might hand them in, if they thought fit, to tho 
 official assignee. Tho statement was then handed in, with the deposition 
 which appears upon it, and which has just been read. To the best of my
 
 140 FACTS, FAILTTEES, AND FEAUDS. 
 
 recollection, the commissioner (Evans) signed it. (It was signed.) After 
 that the solicitor to the fiat, Mr. Lawrance, placed the account in the 
 hands of the official assignee, and then examined each bankrupt separately 
 as to the truth of the statements contained in it. He asked each bankrupt 
 separately " Is this a true account of all securities of any customers at 
 any time pledged or converted by you ?" They answered, " Yes." The 
 question and answer were reduced to writing, and signed by the bank- 
 rupts. 
 
 Cross-examined by the ATTORNEY- GENERAL Did not Mr. Parry apply 
 to be allowed to examine them as to the truth of the statements they had 
 handed in? 
 
 Witness Yes ; with reference to the securities, the account of which 
 had been" handed in. 
 
 Cross-examination continued The commissioner said, that if anv such 
 application were made by a creditor, he would allow it, but on the bank- 
 rupts' own application he refused. Mr. Parry then said that he tendered 
 this declaration of the bankrupts as the declaration required under the 
 Bankruptcy Act, and he added that they had a right, under the statute, to 
 put it in. Did not hear Mr. Parry say to Mr. Lawrance, " Do you wish 
 to ask the bankrupts any questions ?" It might have been said, but I was 
 engaged at the time. Mr. Lawrance refused to aid me in any way in 
 bringing up the bankrupts from the House of Detention, when they were 
 in custody, and I had to apply to another commissioner for a warrant for 
 that purpose. They had been examined at Bow Street on that day upon 
 the charge preferred against them by Dr. Griffith. It was after their ex- 
 amination before the magistrate that I applied to have them brought up. 
 
 Mr. Serjeant BYLES put in the bankrupts' stock-book, in which accounts 
 of the purchases and sales of stock and sureties were entered. He was 
 instructed that this book contained nothing with regard to Dr. Griffith's 
 securities. 
 
 Baron ALDERSON Then I cannot see how it will help you. I will 
 make a note that it contains nothing affecting those securities. 
 
 Mr. Serjeant BYLES I put it in in case the Attorney-General should 
 wish to examine it. The learned counsel then put in the bankrupts' ledger, 
 in which was an entry on the credit side of 12,281 4s., the produce of 
 the bonds sold on the 16th of March, 1854, and on the debit side, under 
 date 15th June, an entry of 5100, as the purchase-money of the substi- 
 tuted bonds which were afterwards deposited with Overend and Co. 
 
 Mr. Bois, clerk to Overend and Gurney, proved the depositing of the 
 bonds with this house by Mr. Young, the solicitor, who it afterwards ap- 
 peared had borrowed the money upon them for Sir John Paul, his client. 
 The witness identified the numbers of these bonds. They were deposited 
 with Overend and Gurney on the 30th of April, 1855.
 
 FACTS, FAILL'ttES, A>'T> FRAUDS. Ill 
 
 Mr. Savory was recalled to prove that the dividends had been regularly 
 paid on the substituted bonds, but 
 
 Mr. Baron ALDEESON said it was clear that the money had been 
 credited regularly as it became due. 
 
 This closed the case for the defence. 
 
 The ATTOKifEY-GEKEBAL then proceeded with his reply. He dis- 
 claimed all intention to act harshly against the defendants, but simply to 
 carry out the ends of justice. Tho case divided itaelf into two distinct 
 points. The first was for the jury ; the second for their lordships tho 
 one whether the evidence was sufficient to convict, supposing the indict- 
 ment could be sustained after the disclosures under the bankruptcy ; and 
 the other, whether, after that disclosure, there was, in fact, any evidence 
 at all to bring the defendants within the statute. The first question was, 
 had the defendants made away with the securities entrusted to them, in 
 contravention of the terms of the statute ? With regard to one of tho 
 defendants, Sir J. Paul, it was not denied that he had made away with 
 securities, and the defence he relied upon was that a full disclosure had 
 been made, and unless that was held to be sufficient by the court he must 
 be found guilty. He admitted that the case of the two other defendants 
 was somewhat different. His learned friend, Sir F. Thesiger, had put tho 
 case as though his client knew nothing whatever of what had been dono 
 by his partner Sir J. Paul. But his learned friend rested his case wholly 
 upon what Mr. Strahan said in his interview with Dr. Griffith. But he 
 (the Attorney-General) was not disposed to put implicit faith in a state- 
 ment made for the purpose of avoiding the consequences of the criminal 
 act with which he was charged. The strength of the case as against 
 Strahan was not merely his own declaration, but the proof that they had 
 been disposing of the securities of their customers for years. The dis- 
 closures made under the statute rendered the case ten times stronger, for it 
 showed that they had carried on this system to the extent of upwards of 
 120,000. The ledger in which these transactions appeared, though it 
 purported to be the private account of Sir John Paul, was tvidently tho 
 account of the firm. The entries were not those of the account of any ono 
 of the partners, but evidently related to the account of the partners gene- 
 rally, in reference to tho disposal of their customers' securities. (Tho 
 learned counsel then read tho items, which varied from 30,000 down- 
 wards, and generally tallied with the amounts received upon the sale or 
 mortgage of securities, and tho payments on the other side, with tho 
 amounts paid for the repurchase or recovering such securities ; and he 
 observed that in April, when tho firm were in such a state of extremity 
 that they were obliged to obtain advances fromOverend and Gurney, thero 
 appeared a balance in this ledger, in favour of Sir John Paul, of upwjinh 
 of 27,000.) He contended that this book, as well as the evidence gene-
 
 142 PACTS, TATLITEES, A> T D FRATJDS. 
 
 rally, clearly proved that all the partners were cognizant of what Sir John 
 Paul did. Turning to another part of the case, the evidence on the part 
 of the defendants, his learned friend had shown that Sir John Paul had 
 disposed of certain securities, not the securities originally deposited 33 
 those of Dr. Griffith, but the securities substituted for them. The order 
 to the broker to purchase the original securities was given on the authority 
 of the firm generally ; but if the original securities were misappropriated 
 by Sir John Paul, without the knowledge of the other partners, it was 
 difficult to understand how they could have been parties to the repurchase 
 and substitution of other securities, in lieu of those so misappropriated. 
 They said, " We have made a disclosure of the second transaction, which 
 disclosure protects us from the consequences of the first." With regard 
 to Sir John Paul, even assuming his disclosure as to the transaction with 
 Overend and Gurney to be complete, that he (the Attorney-General) appre- 
 hended was no answer to the case. 
 
 Mr. Baron ALDEESON I own I am certainly of that opinion, it is a 
 disclosure of that which is no offence, as an answer to that which is. 
 
 The ATTOENEY-GENEEAI resumed, and contended that the disclosure 
 made under the advice of Mr. Lewis, the solicitor, was not a bond Jide 
 disclosure under the bankruptcy laws, but a disclosure for the purpose of 
 setting the creditors at defiance, and protecting the bankrupts against the 
 consequence of their criminal acts. The disclosure was made voluntarily 
 without any examination. The commissioner refused to examine them 
 unless some creditor desired it, and as no creditor desired it they were not 
 examined upon it. 
 
 Mr. Baron ALDEESON Whether that was sufficient or not is a ques- 
 tion, not for the jury, but for the court. 
 
 Mr. Serjeant BYLES I hope your lordship will reserve the point. 
 
 His Lordship If there be any doubt in the mind of the court, we 
 will reserve it, but otherwise I am not disposed to reserve points. We 
 should not reserve it unless there were a difference of opinion amongst the 
 judges in any bther case. My own opinion is, that it is not a case for the 
 jury at all. 
 
 Baron MAETIIT also expressed his opinion that there was no question 
 to be put to the jury in this part of the case. 
 
 The ATTOENEY-GENEEAI,, after some further remarks, said the question 
 for the jury was whether Mr. Strahan and Mr. Bates, or either of them, 
 were parties to the sale of the securities belonging to Dr. Griffith, in 
 March, 1854. 
 
 Mr. Baron ALDEHSOIT summed up. The question was, did the defend- 
 ants sell the securities of Dr. Griffith contrary to their trust. If so, they 
 were guilty of the misdemeanour. As against Sir J. D. Paul, the case 
 pressed more hardly than against either of the others, and as against Strahan
 
 FACTS, FAILURES, AXD IBAUD3. 143 
 
 more hardly than against Bates, that would probably bo the order in which 
 tie jury would have to consider the quest-rn* as to the guilt of the parties. 
 His Lordship then recapitulate-! the evidence of Dr. Griflitli, showing that 
 he ordered the defendants tc purchase the bonds, and keep them in safe 
 custody, the fact of their purcho?c- : their subsequent sale without authority, 
 the appropriation of the proceed" to their own purposes, the particulars of 
 the interview between Dr. Griffith and Strahan after the bank had failed, in 
 which the latter stated that the bonds had been disposed of in such a 
 manner that Dr. Griffith could not get at them, and that he (Strahan) was 
 as much responsible for the transaction as Sir John Dean Paul, and that 
 that was the first dishonest transaction ho had been engaged in in his life, 
 and the defence set up that this conversation related entirely (in so far as 
 Strahan was concerned) to the transaction of the deposit of bonds with 
 Overend and Gurney in April; and remarked that the jury must, of course, 
 take into consideration the circumstances under which that statement was 
 made, warrants having been issued at the time to apprehend the defendants 
 on the criminal charge. The evidence of Alexander Beattie proved the 
 pressure upon the bank in 1853-4, and the sale of the bonds through Mr. 
 Beattie's brokers, Foster and Braithwaite, and the payment of the money 
 over to Sir John Paul by an open cheque of Mr. Beattie's, instead of by 
 the cheques given by the stock-brokers. There was no doubt, therefore, of 
 the sale of the bonds by Sir John Paul, as charged in the indictment. The 
 act of breach of trust was clear as against him ; and unless the disclosure 
 under the Cat of bankruptcy exonerated him, he was liable to punishment. 
 As to the complicity of the other two defendants, he observed that a partner 
 was responsible civilly for the acts of his co-partner, but not criminally. 
 In a criminal act, to make a man liable he must be personally, in some way 
 or other, a party to the act, that was, if ho did not personally perform or 
 take part in the act itself, he must authorize it some way or other, or be 
 cognizant of it. At the same time, it must not be forgotten that Strahan 
 and Bates were partners, and as such, must naturally bo supposed to 
 know of what was going on in the concern, and it was for the jury to say, 
 whether, as being partners, they did not know of the transaction. In the 
 first place, the money paid by Foster and Braithwaite, on account of tho 
 bonds sold, was entered in Sir J. Paul's book, and the aggregate of the eale, 
 12,281 5*., was brought to the credit of the bank. This was an import- 
 ant point for consideration. Then it must be presumed thnt the partners 
 were generally aware of the securities in their strong room, and whether 
 any of them were abstracted. It did not follow, however, that they wero 
 necessarily aware of such abstraction ; but this was one among other mat- 
 ters in the evidence which tho jury would have to consider. In reference 
 to the disclosure before tho Court of Bankruptcy, it was to be observed that 
 Sirahan's declaration spoke of the 10,000 bonds converted, but not of the
 
 144 FACTS, TAILrEES, A2H) TBATJDS. 
 
 5000, and stated that the account rendered was a true account of the 
 bonds and securities converted by him. With regard to Bates, the case 
 was less strong, as to his knowledge of such conversion, in so far as his 
 declaration -went, for he gave the account as that of securities converted, 
 not by him personally, but by the firm. Passing from the circumstances 
 of the case, as they appeared in evidence, he turned to the question which 
 would be for the decision of the court. The Act of Parliament was regu- 
 larly worded. It declared that no banker, broker, agent, or other person 
 liable under the Act, should be liable to conviction by any evidence what- 
 ever, in respect of any act done by him, if he shall, at any time previously 
 to his being indicted, have disclosed such act on oath, in consequence of 
 any compulsory process in any court of law or equity, or in any action or 
 lonaf.de process, or in examination or deposition before any court or com- 
 missioner in bankruptcy. And the Act gave to the Court of Bankruptcy 
 the right of examining on oath. But the inference was that Parliament 
 intended that the Court of Bankruptcy should have the power to call for 
 such disclosures, and not that a person who was guilty of an act which, 
 upon conviction, made him liable to transportation for. fourteen years, 
 should escape the consequences of that act by going to a commissioner of 
 bankruptcy, and tendering a statement. After calling attention, also, to 
 the fact that, in the declaration made to the Court of Bankruptcy, no 
 reference was made to the bonds which formed the subject of the indict- 
 ment, but merely to the bonds deposited with Overend and Gurney, and 
 repeating that the question of the effect of the disclosure would be for the 
 court only to consider, he left it to the jury to pronounce upon the guilt 
 or innocence of the defendants. 
 
 After consulting together for a few moments, the jury expressed a wish 
 to retire ; and after an absence of half an hour, returned a verdict of GUILTY 
 against all the prisoners. 
 
 Mr. Baron ALDEBSON to the jury What is your opinion as to the 
 other point ? 
 
 The Foreman That there has been no disclosure within the meaning 
 of the Act. 
 
 Mr. Baron ALDEESOX Ah, you think not ? Do you think, then, it 
 was a sham ? 
 
 The Foreman We do. 
 
 Mr. Baron ALDEBSON suggested, that as the judges were unanimous 
 that the disclosure under the bankruptcy would not save the prisoners, the 
 verdict had better be entered upon the first and third counts, under which 
 the question would not arise. 
 
 This having been done, 
 
 Mr. Baron ALDEESON proceeded to pass sentence. He said The 
 prisoners at the bar had been found guilty of the offence of disposing of
 
 FACTS, FAILUEES, AXD FKAT7DS. 
 
 securities entrusted to them aa bankers by their customers for safe keeping, 
 and for their use, but which they (the prisoners) had appropriated, under 
 circumstances of temptation, to their own. A greater or more serious 
 offence could hardly be imagined in a great commercial community liko 
 this, or one that tended more to shako the confidence of all persons in such 
 establishments as that which they had so long, and for some time so 
 honourably, conducted. He very much regretted that it had fallen to his 
 lot to pass sentence upon persons in their position, but the public interest 
 and public justice required it, and it was not for him to shrink from his 
 duty, however painful it was to him. He could have wished that that duty 
 had fallen upon some one else, recollecting as he did that he had more than 
 once met, at least one of the prisoners, under far different circumstances, 
 sitting by his side in high office, instead of being before him in the prisoners' 
 dock. All the prisoners had been well educated, and had moved in a 
 position of society. The punishment which was about to full on them 
 therefore, would be far more severe, far more heavy, and much more keenly 
 felt than it would probably by persons in a lower condition of life. It 
 would also, he regretted to say, afflict those who were connected with them, 
 and who would naturally feel their present position with great severity. 
 These, however, were not considerations for him at that moment ; all he 
 had to do was to say that he could not conceive any worse case that could 
 arise under the statute under which they had been convicted, and that being 
 evident, he had no alternative but to pass upon them the sentence which the 
 Act of Parliament provided for the worst class of offences arising under it, 
 which was that they be severally transported for the term of fourteen years. 
 The prisoners were then removed in custody, and the Court adjourned. 
 
 THE ESTATE OF MESSRS. STRAHAN, PAUL, AND BATES 
 AS ADMINISTERED IN BANKRUPTCY. 
 
 The following is the report prepared by Mr. Turquand, the public 
 accountant, on the general affairs of this estate, together with copies of the 
 joint and separate balance-sheets : 
 
 " 13, Old Jewry Chambers, Dec. 10. 
 " To the Assignees of the Estate of Messrs. Strahan, Paul, and Bates. 
 
 " GENTLEMEN, I beg to make the following report of my investiga- 
 tion of the books and accounts of Messrs. Strahan, Paul, and Bates : 
 
 " REPOBT. The bank of Messrs. Strahan and Co. was one of the oldest 
 on record, dating its origin from the early part of the reign of Charles II. 
 At the time of the bankruptcy, the firm consisted of William Strahan, Sir 
 John Dean Paul, and Robert Makin Bates. Sir John Dean Puul (then 
 Mr. Paul) bccan.e a nominal partner in 1823, taking no share of the profits 
 
 L
 
 146 PACTS, PAILUEES, AND PEATJDS. 
 
 until the death of his father, the late Sir John Dean Paul, in January, 1852. 
 The firm was composed of llobert Snow, Sir J. D. Paul, and J. D. Paul. 
 William Strahan (who had changed his name from Snow on inheriting a 
 very considerable property from an uncle in 1831) joined the above firm, 
 with his brother Eobert Snow, in 1832. Eobert Snow, sen., died in 1835. 
 Eobert Snow, the younger, retired from the bank in 18-41, and in January, 
 1842, Kobert Makin Bates, who had for many years been a confidential 
 clerk in the bank, became a nominal partner at a salary of 800 per annum, 
 subsequently raised to 1000 per annum, without any share in the profits. 
 It is not necessary, for the purpose of elucidating the present position of tho 
 bank, to go further back than the partnership of Eobert Snow, William 
 Sandby, and John Dean Paul, formed in 1813. On the death of Mr. Sandby, 
 in 1816, the partners were indebted to the bank in a sum of 29,000, which 
 was apportioned in the following manner : Eobert Snow, 16,681 2s. 9d.; 
 Wm. Sandby, 8,989 2s. Gd. ; John Dean Paul, 3,329 14s. Qd, Total, 
 29,000. 
 
 " The debt of William Sandby was paid off by his executors by the end 
 of the year 1826. At that period the debt due by the remaining partners 
 had increased to 53,600, which was apportioned in the following manner: 
 Eobert Snow, 36,319 10s. 9d. 5 the late Sir J. D. Paul, 17,280 9s. 3d. 
 Total, 53,600. This debt was represented by a joint note of the two, by 
 an arrangement between themselves, and acquiesced in by succeeding part- 
 ners. The amount was to be considered as a debt due to the bank, to be 
 gradually liquidated by a certain portion being carried every year to profit 
 and loss. By this means, at the death of the late Sir J. D. Paul, the amount 
 had been reduced to 28,500, and at the date of the bankruptcy had been 
 further reduced to the sum of 23,500. 
 
 " The balance-sheet now filed commenced on the 31st of December, 1851, 
 showing a deficiency of 71,990 7s. 2d. 
 
 "Deducting the amount then standing to the credit of William Stra- 
 han's capital account, 10,330 6s. Id., less the amounts to the debit of the 
 present Sir J. D. Paul, 213 13s. 8d., and E. M. Bates (lean) 3,669 4s. 4rf. 
 (3,882 18s.), 6,447 8s. lc?., left an actual deficiency between assets and 
 liabilities of 65,542 19s. Id. 
 
 " This deficiency appears to have been composed of the following items, 
 viz.': Balance due on joint note, 28,500; debt due by the late Sir J. D. 
 Paul, 35,477 12s. Id., less balance of subsequent receipts and payments 
 to the credit of his account, 10,084 15s. 5d. ; total, 25,392 16s. 8d. ; 
 bad and doubtful debts not written off, 2,446 ; bad and doubtful debts, 
 Halford and Co,, 15,705 12s. 8d. ; estimated loss on valuation of bank 
 assets, 4,369 Is. 6d. ; total, 76,413 10s. lOd. 
 
 "Deduct Amount standing to credit of balances written off as un- 
 claimed, 4,073 4s. Id. ; Halford and Co., alleged surplus, as shown by
 
 FACTS, FAILURES, AXD FRAUDS. 147 
 
 books, 319 19s. Id. ; balance to credit of partners' accounts, 6,447 8s. Id. 
 (10,870 11s. 9rf.) Total, 65,5-12 19s. Id. 
 
 " It should be remarked that there is one item included in the assets 
 at it full amount, the actual value of which would materially nfl'ect tho 
 above position, and that is a sum appearing to the debit of Lord Mostyn 
 of ,i'J2,001 16s. lOtf. Between the years 181-8 and 1850, large advances 
 had been made, and in January, 1850, a lease of the property known as 
 the Mo?tyn Colliery was granted by Lord Mostyn to the bank, to secure a 
 sum of 67,541 14s. Sd. then due by him. 
 
 " The colliery required very considerable outlay to bring it into a pro- 
 ductive condition, and upwards of 15,000 was so expended by the bank. 
 With this expenditure, and arrears of interest, the amount to the debit of 
 the account at the time of bankruptcy was 134,940 17s. Id. The col- 
 liery had thus been brought into a productive state, yielding, however, only 
 sufficient to cover expenses and to pay interest on a sum of 15,000, 
 which had been borrowed by the bank on the security of the lease, to meet 
 the necessary outlay. Taking the amount thus borrowed as an indication 
 of the value of the assets, the deficiency of the bank would be increased 
 to about 110,000. At this date, however, William Strahan was pos- 
 sessed of unencumbered private property to the extent of upwards of 
 100,000, Sir J. D. Paul about 30,000, and E. M. Bates about sufficient 
 to cover his debt to the bank say, 3000. Taking into consideration the 
 security thus afforded to customers by the value of the private property, 
 it might be inferred the bank would, with care and prudence, have reco- 
 vered its position. The unfortunate connection, however, with Messrs. 
 J. H. and E. F. Gandell, commencing in 1852, and resulting at the date of 
 the bankruptcy in a debt to the bank of 269,382 3s. 5d., with liabilities 
 in addition on their own account to the extent of 103,870, coupled with 
 the already heavy withdrawal of capital in respect of Lord Mostyn's debt 
 and the Mostyn Colliery, may bo fairly looked upon as the causes which 
 brought about the disastrous failure of the bank. 
 
 " Messrs. Strahan and Co. were induced, by the representations made 
 to them by Messrs. Gandell, to advance from time to time large sums of 
 money for the purpose of enabling them to carry out certain contracts for 
 tho construction of railways in Franco and Italy, and for the drainage of 
 the Lake Capestang, situated in the south of France. The profit to be 
 derived by Messrs. Strahan in the transactions was 5 per cent, interest on 
 money advanced, per cent, commission on all payments made by them, 
 and the payment of a debt of 1800, considered bad, duo by J. II. Gan- 
 dell to the bank in 1850. 
 
 " The debt to tho bank (for which no tangible security was held) soon 
 assumed such gigantic dimensions, and Messrs. Gandell's affairs were found 
 to be in that condition, that Messrs. Strahan imagined they had no alter-
 
 FACTS, FAILTTEES, AIOJ FRAL T DS. 
 
 native left but to continue their advances for the purpose of maintaining 
 Messrs. Gandells in a position to carry on the various contracts, the com- 
 pletion of which was looked to as the source whence the vast sums advanced 
 were to be recovered. 
 
 "The time arrived when the resources of the bank were no longer able 
 to meet this constant drain upon it. Acceptances were then giveu, and 
 other heavy periodical liabilities incurred, for the purpose of providing the 
 required funds. These last acts appear to have led to the most distressing 
 feature of this case ; almost the whole property of the bank had been 
 pledged, and Mr. Strahan's private estate was resorted to for the same pur- 
 pose : the large sums so raised had disappeared, and there was no alter- 
 native but the payment of the acceptances and other liabilities as they fell due 
 or bankruptcy. In the vain hope that the anticipated funds would yet be forth- 
 coming, in time to avert the impending ruin, recourse was had to those means 
 of raising funds, the consequences of which are now being visited on the 
 bankrupts. The nature and extent of the securities held by the assignees in 
 respect of the debt due by Messrs. Gandellare detailed in the balance-sheet. 
 " The present deficiency of the bank is as follows : 
 
 Liabilities .... 652,593 15 
 Estimated assets . . . 127,670 16 7 
 
 Deficiency . . 524,922 18 5 
 
 " It will be seen by referring to the items composing this deficiencv as 
 set forth in the balance-sheet, that the sums involved in the transactions 
 with Messrs. Gandell and Co. and Lord Mostyn amount to upwards of 
 4-83,000 of the whole amount. Time has not permitted the completion of 
 the balance-sheets of the separate estates, but they will be filed as expe- 
 ditiously as possible. The position of the bankrupts' personal accounts 
 with the bank at the time of its failure is, however, shown on the face of 
 the joint balance-sheet now filed. 
 
 "I have the honour to be, Gentlemen, your obedient servant, 
 
 W. TUKQUAND." 
 
 BALANCE-SHEET OF MESSES. STEAHAN, PAUL, AND BATES, 
 
 To creditors unsecured . . . 411,210 15 4 
 
 To creditors of Halford and Co. . . 6 800 16 4 
 
 Creditors for securities sold . . 15,964 6 
 
 Ditto pledged .... 94,911 7 8 
 Ditto belonging to customers of Halford 
 
 and Co. . . . . . 12,802 17 
 
 123,678 10 8 
 Deduct amounts for which certain of the 
 
 above parties are debtors, or hold security 13,221 12 4 
 
 110,4-56 18 4 
 
 Carried forward . . 518,108 10
 
 FACTS, FAILUBES, AND FRAUDS. 
 
 149 
 
 Brought forward 
 Creditors holding security fully covered per 
 
 . 548,468 10 
 
 <v:.tru . 
 
 .181,889 12 11 
 
 Ditto partly covered . . . 12,935 5 
 
 Deduct estimated value of securities held . 12,680 
 
 Creditors for advances on pledged securities 
 
 per contra .... 100,109 17 4 
 
 Creditors who issued extents, and were paid 
 
 in full, deducted from assets, per contra . 3,599 2 1 
 
 Liabilities oil account of Messrs. Gandell . 
 
 Profit net . 
 
 To W. Strahan Balance to his credit after 
 
 deducting amount drawn out by him for 
 
 private expenditure . . . 
 
 Sir J. D. Paul, ditto 
 V, . .- 1 rah an For separate property held by 
 
 creditors of bank . '. 70,457 
 
 Amount required to cover their claims * 
 
 255 5 
 
 103,870 
 31,301 1 9 
 
 17,401 14 3 
 772 12 3 
 
 32,673 4 
 734,745 7 3 
 
 CEEDITOE. 
 
 By Debtors Stralian and Co., considered good . . 76,536 14 1 
 
 Halford and Co., ditto 22,484 2 8 
 
 Doubtful and bad. . . 28,29818 3 
 
 Do., Gandell and Co. 289,382 3 5 
 
 Less purchase-money of 
 
 Capestang Lake " . 20,000 
 
 260,382 3 5 
 
 Do., Lord Mostyn . . 134,9 10 17 1 
 
 Deduct proportion of 
 
 debt mortgaged . 41,967 3 4 89,973 13 9 
 
 Property unincumbercd, viz. [Shares . 1,333 15 
 
 Life policies .... _ 12,315 13 
 
 hold and leasehold . . . 2,500 
 
 Exchequer bills . . . 300 
 
 f ang Lake not carried out the expen- 
 diture required to complete the drainage 
 and other incidental circumstances ren- 
 dering the value of this property uncertain 20,000 
 
 19,449 8 
 
 By cash in hand, llth of Juno 
 
 By bills receivable 
 
 By cash at the Bank of England 
 
 Deduct creditors paid in full per contra 
 Carried forward 
 
 1,767 2 5 
 
 9,949 3 6 
 
 83 8 
 
 11,799 13 11 
 
 3,599 2 1 
 
 8,200 11 10 
 126,670 16 7
 
 150 
 
 TACTS, PAIL-TEES, A^D PEATDS. 
 
 Brought forward . . . 126,670 16 7 
 
 By debtors, the securities representing 
 
 which are held by creditors . . 69,343 13 10 
 
 By property of bank held by creditors . 96,996 16 
 
 Do. of William Strahan, 
 
 held by joint creditors . 70,457 
 
 Amount required to cover their claims . 32,673 4 
 
 Deduct amount held by creditors partly 
 covered . 
 
 Leaving do. held by do. fully do. 
 Deduct amount of claims of creditors 
 fully covered 
 
 Balance available for estate . 
 Considered as a good asset in respect of 
 one security to the extent of 
 
 199,013 13 10 
 12,680 
 186,333 13 10 
 184,889 12 11 
 1,444 11 
 
 The residue is not carried out, being subject to deduc- 
 tion for interest accruing due on creditors' claims 
 
 Total amount of assets considered good 
 By securities pledged belonging to cus- 
 tomers of the bank . . . 94,911 7 8 
 Ditto Halford and Co. . . 12,802 17 
 
 Deduct amount so bor- 
 
 rowed 
 
 Lessvalue of Exchequer- 
 bills belonging to bank 
 included . . 
 
 . 100,109 17 4 
 
 107,714 4 8 
 
 2,819 12 
 
 97,290 5 4 
 
 10,423 19 4 
 
 This balance is not carried out as an asset, being subject 
 to the question as to the right of the assignees and of 
 the parties to whom the securities belonged. 
 By deficiency, December 31, 1851 .... 
 By amounts not carried out above, viz.: 
 Doubtful and bad debts . 
 Gandell and Co.'s debts . . 
 
 Lord Mostyn's balance . . 
 
 Capestang Lake . 
 Surplus value of property held by ere 
 
 ditors as security . . . 1,444 11 
 
 Considered a good asset only for . 1,000 
 
 Surplus value of customers' securities pledged . 
 By R. M. Bates' salary . 
 
 Balance to his debit . . 
 
 Sir J. D. Paul (deceased), proportion of profit credited 
 
 him in 1852, written back .... 
 
 Liabilities per contra . . . 
 
 1,000 
 
 127,670 16 7 
 
 71,990 7 2 
 
 28,298 18 3 
 
 209,382 3 5 
 
 89,973 13 9 
 
 20,000 
 
 444 11 
 
 10,423 19 4 
 
 5,750 
 
 4 ; 381 7 10 
 
 4,560 
 
 . 103,870 
 
 734,745 7 3
 
 FACTS, FAILURES, AND FBAUDS. 
 
 SEPARATE ESTATES 0? MESSRS. STRAHAN, PAUL, AND BATES. 
 
 The separate Estate of WILLIAM STUAHAIT,//-OI January 1, , 
 to June 11, 1855. 
 
 Dr. 
 
 To Creditors unsecured ... ' 3 10 
 
 Creditors holding security . . - -Ti'O 
 
 Liabilities on account of bank . 13-1,00811 8 
 
 Liabilities as co-trustee with Sir J. D. Paul i . 17,231 10 7 
 
 Income ...... 15,458 13 4 
 
 Share of profits of bank passed to rny 
 
 credit in 1852 . . . 5,700 
 
 Ditto in 1853 .... 7,700 
 
 Ditto in 1854 
 
 7,000 
 
 Surplus assets on the 1st of January, 1852 
 
 20,400 
 . 128,048 2 
 
 318,566 1 5 
 
 Cr. 
 By debtors (good) ..... 
 
 Ditto (doubtful) ; 
 
 By Property unencumbered : 
 
 Sundries . . . . ; . 
 
 Shares ...... 
 
 Reversionary interest .... 
 
 By property held as security by private creditors . 
 
 By property, security to creditors of bank 
 By expenses, including improvements at Ashurst, and ex- 
 penditure on farms : 
 
 Expenditure . . . ll,05G 8 9 
 
 Improvements, &c. ... 8,551 11 7 
 
 By annuity paid R. Snow . 
 
 By losses . 
 
 By Strahan and Co. : 
 
 As per joint balance-sheet 
 Add share of profits . 
 
 By liabilities per contra . 
 
 .17,401 14 3 
 . 20,400 
 
 1,471 6 
 771 16 10 
 
 12,059 16 7 
 
 4,376 10 
 
 400 
 
 2,760 
 
 23,508 4 
 
 1,753 17 1 
 
 11,962 18 1 
 
 37,801 14 3 
 . 151,240 2 3 
 
 218,109 1 5 
 
 SEPARATE ESTATE BALANCE-SHEET OP SIB JOHN DEAN PAUL, BAUT. 
 
 Dr. 
 
 To creditors unsecured ..... 23,402 11 6 
 Creditors holding security fully co- 
 vered . . . .14,500 
 Creditors holding security partly co- 
 vered . . . ' . 15,000 
 Less value of security . 1,188 9 
 
 13,811 11 
 
 Carried forward 
 
 37,214 2
 
 152 
 
 TACTS, PAILTJEES, 
 
 fEAUDS. 
 
 Brought forward 
 Liabilities on account of bank 
 Liabilities as trustee, &c. 
 Income .... 
 
 Share of profits of bank passed to my 
 
 . 37,214 2 6 
 
 . 134.008 11 8 
 
 . 20,880 1 1 
 
 3,546 9 4 
 
 credit in 1853 
 Ditto in 1854 
 
 . 3,300 
 3,000 
 
 To surplus of assets on the 1st of January, 1852 . 
 
 6,300 
 . 11,757 14 
 
 216,706 IS 7 
 
 Cr. 
 By debtors (good) ...... 
 
 Debtors (doubtful) . . . 
 
 Property ...... 
 
 Property held as security by creditors 
 
 fully covered . . .20,400 
 
 Deduct amount of their claims . . 14,500 
 
 By expenses ...... 
 
 Allowance to my son and other members of my 
 family, etc. ..... 
 
 Losses ...... 
 
 Strahan and Co., as per joint balance- 
 sheet .... 772 12 3 
 
 Tor share of profit . . . 6,300 
 
 By liabilities per contra . f . . . 
 
 2,241 4 
 
 10 
 
 9,306 19 
 
 5,900 
 
 17,175 11 9 
 
 11,726 2 9 
 
 8,395 16 1 
 
 7,072 12 3 
 . 154,888 12 9 
 
 216,706 18 7 
 
 THE SEPABATE ESTATE OF BOBEBT JIAEIN DATES. 
 
 Dr. 
 
 To creditors ...... 85 3 7 
 
 Strahan and Co. ..... 4,381 7 10 
 
 Income ...... 4,405 2 10 
 
 Surplus of assets over liabilities, January 1, 1852 . 729 10 8 
 
 Liabilities on account of bank . . . 134,008 11 8 
 
 Ditto, as co-trustee with Sir J. D. Paul . . 4,336 12 1 
 
 147,946 8 8 
 
 Cr. 
 
 By property . . . 1,903 3 7 
 
 Expenses . . . 4,456 11 6 
 
 Losses . . . 2,793 3 2 
 
 Interest to Strahan and Co. . 448 6 8 
 
 Liabilities per contra . . 138,345 3 9 
 
 147,946 8 8
 
 TACTS, 1'AILUBES, AND FRAUDS. 153 
 
 EEPOBT OS SEFAKATE BALAKCE-SHEETS. 
 
 " The separate balance-sheets commence on the 1st of January, 1852. 
 In the report made on the llth of December last, upon the joint balance - 
 sheet, the surplus private property of the partners was estimated to have 
 been as follows, on the 1st of January, 1852, viz. : 
 
 W. Strahan ;..... 100,000 
 Sir J. D. Paul ..... 30,000 
 
 E. M. Bates Nil. 
 
 "On making up the balance-sheets, the ascertained amounts arc as 
 
 follows : 
 
 W. Strahan ..... 128,018 2 
 Sir J. D. Paul .... 14,757 14 2 
 
 R. M. Bates . . . . . 72 1 8 
 
 At the date of the bankruptcy, the creditors of W. Stra- 
 han amounted to . . . 3,419 3 10 
 
 The assets amounted to . . . . 92,299 9 5 
 
 Of which 70,457 are held as security by bank creditors. 
 
 The creditors of Sir J. D. Paul, secured as well as unse- 
 cured, amounted to . . . . . 52,902 11 6 
 
 The assets, including property held as security, to . 31,958 3 
 
 The creditors of R. M. Bates, including debt due to the 
 
 bank, amounted to . . . . 4,466 5 
 
 The assets amounted to . . . . 1,903 3 7 
 
 "It will be seen, on reference to the balance-sheets, that liabilities 
 arising out cf bank transactions to the amount of upwards of 134,000, 
 have ranked against the assets of the separate estates, independently of 
 sundry liabilities in respect of trust funds. During the period embraced 
 by the balance-sheets, the amounts paid into the bank by William Strahan 
 and Sir J. D. Paul exceed the sums drawn out by them. In the case of 
 William Strahan such amount was supplied from his private estate ; in the 
 case of Sir J. D. Paul, partly from the sale of his private property, and 
 partly from moneys in respect of which parties are now creditors on his 
 separate estate." "Wit.
 
 154 TACTS, rAILTJEES, AND rEATTDS, 
 
 CHAPTER Y. 
 
 JOSEPH "WINKLE COLE AKD THE DOCK-WAEEA> T T FEATJDS. 
 
 The Origin of the Frauds The Antecedents of Cole aud his Associates in 
 Business His Successful Operations and Extension of his Engage- 
 ments Connection with Davidson and Gor^n Failure of the re- 
 spective Firms The Discovery of the Transactions with Messrs. Over- 
 end, Gurney, and Co. The Position of Mr. David Barclay Chapman 
 The Bankruptcy of Joseph Windle Cole and of Davidson and Gordon 
 The Apprehension of the Former and the Flight of the Latter The 
 Examination respecting the Issue of Spurious Warrants The Disap- 
 pearance of Maltby, the supposed Proprietor of Hagen's Wharf Trial 
 and Conviction of Cole Death of Maltby Subsequent Arrest of 
 Davidson and Gordon Their Trial and Imprisonment. 
 
 OF the various incentives that exist to the investigation of 
 fraud, the strongest, perhaps, lies in the hope of thus obtaining 
 judicious suggestions for the improvement of existing regu- 
 lations so as to exclude, if possible, the repetition of the 
 illegal or prejudicial operations thus brought to light. To 
 this end, however, increased individual vigilance will be found 
 quite as essential as any alteration of forms, or any checks or 
 modes of dealing. Fraud that has attached itself to any one 
 set of transactions, after being repelled in one form, not un- 
 frequently reappears in another. The complex character of 
 recent impositions that have been practised in taking advan- 
 tage of those agencies by which exchanges are effected, and 
 business conducted with celerity and despatch, points to the 
 folly of idly relying on even the most perfect system of me- 
 chanical checks, for in the very provisions which experience 
 has furnished for securing straightforward transactions, human 
 ingenuity has found materials for fresh occasions to deceive.
 
 FACTS, TAII.UHK*, AND FRAUDS. 1 ~o 
 
 that spirit of general confidence which results from tho 
 long observance of good faith in any given line of business 
 becomes in its turn a dangerous lure to the unprincipled, and 
 is sought to be made available for their purposes. Expe- 
 rience goes to show the necessity of exercising a vigilance 
 quite independently of any rules that may be formed from ob- 
 servations on human character ; that the highest forms of com- 
 bination which financial science has provided may be applied 
 to criminal purposes quite as readily as to any other, nourishing 
 for years, and eluding all detection, except by those who have 
 traced to their source the " irregularities" by which these 
 carefully-concerted schemes usually manifest themselves 
 schemes so combined and so applied that any discovery short 
 of this, any control or separation of the partial instruments 
 and subordinate agents, can contribute little or nothing to 
 their repression. Thus 
 
 " Many things Laving full reference 
 To one consent may work contrarioufily, 
 As many arrows loosed several ways 
 Come to one mark, as many ways meet in a town, 
 As many fresh streams meet in one salt sea, 
 As many lines close in a dial's centre." 
 
 There can be no question that, when fraudulent operations 
 of this complicated character are brought to light, any indis- 
 cretion or lukewarmness in properly dealing with them, whether 
 resulting from the solicitation of the criminal parties, or from 
 the prospect of individual interest arising from what is vir- 
 tually an enforced partnership, must result in incalculable 
 mischief. "With the more competent view, which is gradually 
 expanding, of the principles which enter into the right conduct of 
 business, it is to be hoped that fewer inducements will hereafter 
 be held out to those accustomed to look to men of position 
 and character for support in their criminal irregularities. The 
 application of these observations to the case about to be intro- 
 duced will be sufficiently apparent.
 
 156 FACTS, PAILT7EES. 
 
 The year 1850 marks in the commercial and trading annals 
 of London, the commencement of a fraud of the most extra- 
 ordinary character, the effects of which were far too extensive 
 to permit the supposition that it depended on anything else 
 than a defective system in that branch of business to which it 
 referred, though perhaps incautiously characterized at a subse- 
 quent time, on the judicial bench, as one of the most dangerous, 
 as well as one of the most criminal, that could be perpetrated 
 in any community. This scheme bore all the marks of careful 
 preparation, so well did it conform to present circumstances. 
 Aided by large mercantile experience, the plan through which it 
 operated not only long defied discovery, but proved itself well 
 able to withstand, under the defective arrangements which 
 generally existed, well calculated to surmount those disturbing 
 influences, which never fail to present themselves when fictitious 
 credit comes largely to perform the office of capital. To 
 obtain a tolerably clear view of this transaction for creating 
 additional resources, without any corresponding increase of 
 personal ability, or any new means and channels of redeeming 
 credit, some preliminary explanation, partly of a technical and 
 partly of a personal character, will be necessary. 
 
 This daring operation consisted in imposing on numerous 
 parties, willing to advance money on approved securities, dock- 
 warrants, which gave no control to the holder over the goods 
 they represented, while yet they conformed so nearly to every 
 requirement of custom and usage, as to render it a marvel 
 in the end, even to those parties who found themselves power- 
 less to enforce the anticipated delivery, how it happened 
 they were without effect. The guarantees by which the genu- 
 ine character of dock-warrants is guarded, were deemed so 
 sufficient, that they could not be broken in upon short of 
 forgery ; and that if any advantage could be taken of them 
 other than that arising from the laxity of dealers, or the remiss- 
 ness of holders, no one of position and character would deal
 
 FACTS, FAILURES, AND FRAUDS. 
 
 fraudulently with them ; while it was presumed that from the 
 simplicity of the document, aud the means of testing it, success 
 was precarious, aud at best but temporary. The scheme was in- 
 volved in such mystery, that when suspicion of fraud had been 
 excited, for a length of time all the available evidence that could 
 be brought to bear on transactions relating to it, fell short of 
 the discovery of its precise characteristic, and failed to disclose 
 the extent of its development. 
 
 Joseph "Windle Cole, the supposed great originator of the 
 fraud about to be described, comes before the public in the 
 year 1848, as a general merchant, setting up with the style 
 and title of Cole Brothers, though without a partner, as an 
 East India merchant, under the protection of a certificate of 
 bankruptcy. The firm of Johnson, Cole, and Co., of which he 
 had been a member, had failed in November of the previous 
 year, with a doubtful reputation, leaving but indifferent assets. 
 Cole established his office in Birchin Lane, took in two of hia 
 brothers as clerks, and commenced, by aid of loans he had re- 
 ceived, or through other temporary resources, with making 
 consignments to order and shipping on his own account.* 
 
 Two considerations affected him, the limited amount of his 
 means, the degree to which he thought it important to be able 
 to avail himself of increasing aud obvious advantages. He had 
 apparently set his mind on securing the virtual monopoly of a 
 branch of the trade in metals, and so was indisposed to wait 
 for the remote results of enterprises adapted to the restricted 
 scale of his then present resources. When connected with the 
 house of Forbes, Forbes, and Co., as a clerk, the opportunity 
 had been afforded him of establishing a largo connection in this 
 country and in India. Favoured by this circumstance, ho 
 appeared inclined to risk the whole beneficial consequences 
 
 * Two huge pamphlets, by Mr. Scton Laing, the assignee to Cole's 
 estate, fully expose these frauds, but in n very extended form. They, how- 
 ever, contain much interesting information, and clearly trace tho history of 
 the whole of these nefarious transactions.
 
 158 TACTS, FAILUEES, AND FRA.T7DS; 
 
 which might have been derived from that position through the 
 folly of enlarging his operations to the widest possible extent. 
 He had great business capacity, but this lay chiefly in ability to 
 multiply transactions, to increase the sphere of those transac 
 tions, and to control them up to a given point, as well as to 
 persuade others to enter into his views, and to co-operate 
 with him in his plans; but the efforts he put forth brought 
 with them no proportionate results. In his first efforts to carry 
 out business he had been unsuccessful, having been brought 
 down in the panic of 1847-48 ; and now, on entering the scene 
 of a fresh career, he was determined to employ his talent 
 on a much larger scale. Among the houses which also 
 failed in that calamitous period was one, trading as produce 
 brokers, under the title of Messrs. Sargant, Gordon, and Co., 
 containing three partners, viz., Messrs. Sargant, Gordon, and 
 Davidson, but when the estate was wound up they separated, 
 Mr. Sargant entering another branch of business, and Messrs. 
 Gordon and Davidson forming a new firm in the metal 
 trade, reversing the order of names, and calling it Davidson and 
 Gordon. They were intimate with Joseph Windle Cole, and 
 their business connections became eventually extensive. 
 
 In seeking for some artificial prop, some mode of replenish- 
 ing his languishing means, he evidently resolved upon a new 
 and hitherto untried experiment. His personal knowledge 
 directed him to the fact, that the large discount houses who, 
 accustomed to make advances on warrants, seldom examined the 
 documents tendered, further than to see that they were properly 
 signed and satisfactorily endorsed, and that a fair margin was 
 left for profit over and above the advance required, the warrants 
 being scarcely ever noticed again, so that the loans advanced 
 on them were punctually met, or duly renewed. The problem 
 to be solved, and to the solution of which Cole now applied 
 himself, was this : Granted, that the guarantees tendered by me 
 to money-lenders are wholly imaginary, how shall I arrange it
 
 FACTS, FAILURES, A^D FEATJDS. Io9 
 
 that without risk to myself, and in that case certainly without 
 injury to the other party, seeing that interest will be duly paid, 
 and the money so obtained be eventually refunded from the 
 profits of successful enterprises, I can make a fictitious batch 
 of warrants answer the purposes of a genuine series. 
 
 That certain favouring circumstances, as they successively 
 presented themselves, must have suggested to Cole portions of 
 the completed scheme, or at least have given to it precision 
 and distinctness, as it slowly arose in his own mind, and was 
 afterwards carried into execution, there can be no question ; 
 but these circumstances must have been preceded by the gene- 
 ral conception of duplicate warrants, of cargoes turned twice 
 over, of two deliveries of the same goods, of two distinct war- 
 rants signed by separate wharfingers, acting independently of 
 eacli other, of one of these warrants being made deliverable 
 to the importer of the goods represented by it, the other to 
 himself as the merchant-purchaser, of entering the goods in the 
 record kept by the dock company on his own account, it being 
 immaterial to the company, but very material to himself, as to 
 whether he figured as purchaser or importer ; in a word, all 
 those leading measures necessary for the creation of an artificial 
 guarantee that should avoid the risk of an opposite result. 
 The obliteration of all obvious distinction between the true 
 and the false warrants was, from the first, an essential condi- 
 tion which pervaded all the arrangements, and characterized 
 the whole history of the fraud. To bring a wharf under his 
 control, and to secure a wharfinger in his interest, was the first 
 step ; and to purchase goods " to arrive," and to induce im- 
 porters to enter goods of the character he desired for the war- 
 rants, to the largest possible amount, at his own wharf, was the 
 second step. The goods, as soon as lightered and weighed by 
 his own wharfinger, were to be handed for storage to the 
 nearest warehouse, and not a receipt, but a warrant obtained 
 for them, on the presumption, of course, that no other warrant
 
 1GO TACTS, FAILTJEES, AXV FEATJDS. 
 
 tad been issued. The warrant signed by Cole's own wharf- 
 inger, and made deliverable to him, would, on endorsement, 
 pass current in the market, whilst that supplied from the ware- 
 house, on being endorsed by the importers, could be used for 
 obtaining advances. 
 
 Intent on the execution of his scheme, Cole soon obtained 
 information that a small wharf, by the name of Hagen's Suf- 
 ferance "Wharf, situate on the Thames, in St. Saviour's Dock, 
 Bermondsey, was to let. In all respects it appeared suitable 
 to his purposes. The frontage was narrow, and there abutted 
 on it enormous warehouses, which would strike any casual 
 observer as being in the possession of the lessee of the wharf, 
 and so enforce the authority of the acting wharfinger of the 
 latter. This effect was the more striking that these ware- 
 houses not only adjoined, but opened on the wharf, which 
 allowed free ingress and egress to the occupants. At the 
 further end of the wharf, opening on Mill Street, was a shed, 
 and opposite to it, divided by the road, a small cottage, which 
 was part of the property. The wharf was found to be the 
 property of Mrs. Mary Hagen, by whom also the adjoining 
 warehouses were partly held, a discovery which promised ma- 
 terially to aid the pretensions Cole was about to set up. 
 Anxious as was Cole to secure the premises, he avoided, in the 
 exercise of his usual caution, all appearance of being the party 
 seeking possession. Accordingly, his brother, James Edward 
 Cole, and a person of the name of George Harris De Bussett, 
 11 a gentleman at ease," who will figure again in this narration 
 obtained the premises on a lease for fourteen years, at an 
 annual rental of 130. 
 
 The ostensible and " coming man" was not far off. Cole 
 had already provided for a wharfinger in the person of "William 
 Maltby, formerly a fellow-clerk in the house of Forbes, Forbes, 
 and Co., and who had recently applied to him for a situation. 
 Maltby, on whom so much depended, had proved himself,
 
 TACTS, FAILURES, A>"D FRAUDS. 1G1 
 
 during the temporary employment Cole had lately given 
 to him, on his application, to be disposed to submit implicitly 
 to whatever he deemed the inevitable necessities of a position 
 which would procure for him subsistence. No time was to 
 be lost in putting such a man in possession. This was done, 
 but without obtaining for him a license. Cole, who sa\v no 
 reason to make Maltby the partner of his plans, merely vouch- 
 safed to inform him that he had taken the wharf in order to 
 economize charges on a largely increasing trade in metals. 
 Sufficient light would, in due time, be let into the mind of 
 Maltby, who as yet had not caught sight even of the scintil- 
 lations of those dazzling visions that shone on the career of 
 Cole. "With a simplicity that approached stolidity, Maltby 
 formed such an idea of the omnipotency of Cole, that he was 
 ready to do anything commanded by his employer, looking to 
 him " to put all right," and uninquiring as to the results of a 
 course full of peril to himself, as subjecting him not only to 
 the charge of signing warrants for goods for which he had 
 nothing to show, but of entering into a conspiracy to defraud. 
 Maltby, as Cole had done, created himself into a firm, to be 
 styled " Maltby and Co.," and then called on Messrs. Groves 
 and Sons, the lessees of the adjoining warehouses, representing, 
 as the agent of Cole Brothers, that the wharf which they had 
 taken was insufficient for the accommodation of the goods 
 lightered there, and stating their willingness to enter into an 
 arrangement by which, after he had weighed the goods, they 
 should store the same away, he receiving the landing charges, 
 and they the charges for rent. Nothing could seem more 
 equitable than this proposal ; it was quite in the usual course 
 of business, and Messrs. Groves and Sons had accordingly no 
 hesitation in giving their compliance. Maltby was delighted 
 for the sake of his employers ; but he had a parting request to 
 make, a slight one, to which Messrs. Groves and Sous, after 
 the spirit of accommodation they had shown, would doubtless 
 
 M
 
 1C2 PACTS, PAILUttES, A>*D PKA-l'DS. 
 
 accede to. This was that they would allow the goods thus 
 stored to be seen and examined from time to time, as might be 
 required, by the customers of Cole Brothers. " Oh, surely." 
 Nothing no\v was necessary but to carry the scheme into fall 
 operation. To 3Ialtby came the admonishment 
 
 "Thou art instructed! 
 "With caution answer, wilt thou swear ?" 
 
 ~\Ialtby drew his warrants, which were chiefly for spelter, 
 tin, steel, copper, iron, and lead, deliverable to the importer, 
 whilst those of Groves and Sons were made deliverable to the 
 holder from whom they were received, and, accordingly, ran in 
 the name of Cole Brothers. The warrants received from 
 Groves and Sons were taken by himself, or his metal brokers, 
 Davidson and Gordon, immediately into the market ; and 
 whether prices were rising or falling, they were sold for what 
 they would fetch, despatch in this part of the scheme being 
 indispensable. This was done without any communication 
 being had with the importers, contrary to the usages of trade. 
 Some days after, when the only warrants entitled to be con- 
 sidered valid had been disposed of, he carried those signed 
 " Maltby and Co., wharfingers," to the importers of the goods 
 they represented, to be endorsed, to be applied in the only way 
 in which such warrants could be of any service. 
 
 Cole's further proceedings were taken with a precision and 
 effect indicating how well matured were his plans. This 
 scheme, capable of such mischievous power, admitted of the 
 most exact control, and Cole kept a strong force of clerks, 
 whose business it was to check the double lists of warrants, 
 so that no duplicates of similar goods should fall into the same 
 hands, to intermix the warrants, genuine and fictitious, and to 
 advise him of loans failing due. Aided by the memoraudas 
 which were thus made for few regular books were kept and 
 assisted by the experience and ability of Messrs. Davidson and
 
 PACTS, FAILUHES, ASD FEAUDS. 1C3 
 
 Gordon, bis brokers, as well as his own acuteness and sagacity, 
 .is enabled to maintain his position, though meeting at 
 . turn with peculiar emergencies. 
 
 To afford a yet wider basis of operations, it was determined 
 to fabricate a large number of accommodation bills ; and, for 
 the purpose of acceptance, the firm of Paris and Co. was 
 created, and an account opened for it at Messrs. Masterrnan 
 and Co.'s. This was in the year 1851. The firm consisted of 
 Cole, Davidson, Gordon, and afterwards of George Harris De 
 Eussctt. Richard Paris, a mechanical engineer, was given two 
 guineas a-week by De Eussett for the use of his name, and 
 IMaltby was the person who accepted most of the bills in the 
 r.aine of Maltby and Co., making them payable at Masterman 
 and Co.'s. De Eussett also kept an account with Messrs. 
 Prescott and Co. The bills, which were of service in accompany- 
 ing and passing the llagen AVharf warrants, represented no 
 real transactions.* In one and the same day, a given sum of 
 money, received by Cole from Davidson and Gordon in the 
 morning, would pass through the hands of the above bankers, 
 then to the account of Colo Brothers, at Glyn's, and fiually 
 pass again to the account of Davidson and Gordon kept with 
 It, lloare, and Co., the amount being slightly altered at 
 each transition. 
 
 * A specimen of the peculiar nature of the transactions between tha 
 
 several parties connected appears in the annexed item of one day's pro 
 
 .jii to the alternate transfer of the same suin of money 
 
 four times over, to the separate accounts of each. " On the 2Sth of 
 
 January, 1331, Cole received from Davidson and Gordon the sum of 
 
 , which he paid into the account with 'De Eussett,' at Prescott'?. 
 
 On the same day he drew the like amount from that account, and paid it 
 
 into the account with ' Paris and Co.,' ct Ifustcrman's, also < . 
 
 . Again, on tfo same day, a cheque for 1216 5*. Gd. was drawn from 
 tae account of Paris and Co., and that amount paid into the account of 
 ' Colo Brothers,' at Glyn's. Again, still on the tame day, the sum of 
 1200 was drawn out of the account of 'Colo Brothers,' and repaid to 
 n and Gordon, at Barnett, Iloare, and Co.'s." J// - . S-. .' j/; I 
 'let.
 
 IGi TACTS, FAILURES, A^D TEAT/DS. 
 
 It is to be regretted that precise facts are not forthcoming 
 which would serve to show more of the nature of the trans- 
 actions entered into between Davidson and Gordon and other 
 parties in connection with the fraudulent warrants they so suc- 
 cessfully managed to transfer. Their transactions with Messrs. 
 Overend, Gurney, and Co., the discount bankers, extended 
 back several years prior to the appearance of these fraudulent 
 warrants. I^o sooner, however, had these warrants come into 
 their possession, than they applied them to obtain advances on 
 their own account, in which they were so far successful as to 
 palm off on Messrs. Overend, Gurney, and Co. simulated issues 
 of the nominal value of 80,000. 
 
 The wharf had not long been taken when suspicion arose 
 in one quarter as to the invalidity of the warrants on which 
 Cole, Davidson, and Gordon so largely depended for their re- 
 sources. It was a peculiarity attaching to these warrants that 
 no individual noticing any irregularity, or suffering by that 
 irregularity, could infer the wide extent of the scheme, and 
 still less discover the modus operandi, or that anything had 
 gone wrong except in that particular instance. In the course 
 of 1851, Edwards and Mathey, colonial brokers, who had ad- 
 vanced to Cole 2500 on the security of various warrants, had 
 their attention drawn to the name of Hagen's "Wharf impressed 
 on one of these warrants, which together represented 350 tons 
 of spelter. The wharf had never been heard of before, and 
 they sent a clerk down to inquire after it, and to inspect the 
 goods. Maltby, who was at hand, pointed out the spelter to 
 the clerk ; but the clerk, considering his errand but half done, 
 appears to have gone to the books of the dock company, and 
 to have discovered that there was a "stop" on this spelter in 
 favour of another party. Mr. Edwards, of the firm, was taken 
 by Gordon to Cole, who confessed he knew of the "stop," inti- 
 mating, probably, at the same time, that Gordon was to blame, 
 and that he should have known the metal answeriug to the
 
 TACTS, FAILTJUES, AND FRAUDS. 105 
 
 warrant had been withdrawn, for it was on Gordon's head that 
 the wrath of Mr. Edwards fell. Gordon could afford to bear 
 this blame ; but not so Cole, to whom the disclosure of the 
 facts of the case would have been ruin. Edwards even 
 threatened Gordon to have him up at the Mansion House that 
 afternoon, but it was finally arranged that the " stop" should bo 
 removed the next day. This was done ; the spelter was not 
 demanded to be delivered up; the loan was continued, and 
 paid, as agreed to, by instalments, the last instalment con- 
 sisting of a cheque drawn by a firm in London, which subse- 
 quently received the very cheque from Davidson and Gordon 
 of which Mr. Edwards had complained. 
 
 In March of 1852, Laing and Campbell, colonial brokers 
 became possessed of Hagen "Wharf warrants for spelter and 
 Swedish steel that had been in the hands of Lackerstein and 
 Co., who had suspended payment. Cole was at once anxious 
 to get possession of them. If thrown upon the market, 
 he would have to meet them, and this at an enormous loss, 
 if Lackerstein and Co. had got possession of the warrants 
 on the same easy terms as Davidson and Gordon. The Hagen 
 "Wharf warrants would stand good for the exhibition of goods, 
 but not their delivery. Cole sent Gordon as his broker to 
 Messrs. Laing and Campbell to inform him that the warrants 
 had been improperly obtained. Laing and Campbell never 
 doubted the truth of the story, and the warrants, to the nomi- 
 nal value of 2000, representing 122 tons 10 cwt. of steel, 
 and 50 tons of spelter, were accordingly taken back. 
 
 A business acquaintance with Laing and Co. having been 
 effected, Cole concerted measures to obtain from that house a 
 large advance on securities partly fictitious and partly genuine. 
 They had concluded that no man who paid the large sum of 
 money expended by Cole to redeem the warrants that had come 
 into their possession could have paid it out for worthless paper, 
 and, not dreaming that ho was implicated in the issue, they did
 
 1C3 TACTS, PAILfJIES, AND ZEATTBS. 
 
 not hesitate to advance tlie required amount. In July and 
 August of 1854, they advanced Cole 30,000 on warrants for 
 spelter and tin. This was but the first of a series of trans- 
 actions to the amount of 100,000, the loans being either 
 renewed, or the amount paid up when falling due. 
 
 Proceeding on an ever-expanding scale in his operations, 
 and accounted generally honourable in his dealings, and suc- 
 cessful in his enterprises, Cole began to be looked on as a first- 
 class man of business. The year 1853 opened up propitiously 
 for all concerned. The difficulties that had occurred in passing 
 the Hagen "Wharf warrant had been arranged. The transactions 
 of Cole the preceding year had reached very nearly 2,000,000, 
 and there was the certainty of his business continuing to 
 enlarge. He had already nearly obtained a monopoly in one 
 class of metals. His agents Davidson and Gordon, with other 
 subordinates in his scheme, remained faithful, and nothing 
 indicated any floating suspicion in the public mind of its 
 existence. These calculations were vain. Messrs. Overend, 
 Gurney, and Co., in the spring of the year, sent down a broker 
 to Hagen's Wharf to examine into the copper and spelter 
 represented by warrants in their possession, furnished them by 
 Davidson and Gordon, whose report was unsatisfactory, but, 
 strange to say, they never disclosed the fact to the public. 
 
 Maltby's hands at this time are full of business, and, in 
 the few brief moments of respite, he begins to think the remu- 
 neration for his services (130 per annum) quite dispropor- 
 tioned to the labour exacted, as well as unequal to the sup- 
 port of his family. Quarter-day comes, but again and again 
 he has to apply to Cole Brothers before receiving the amount 
 due. "What with his daily toil, and increasing necessities, and 
 hope deferred, his mind is pre-occupied, and his spirit de- 
 pressed. This is just what Cole designs, that Maltby, whose 
 disposition he has studied, may be little inclined to reflect on 
 the possible appreciation which the great house of Cole Bro-
 
 FACTS, rAlLL'EES, A>*D mAUDS. 1G7 
 
 thers attaches to his services. By aid of tlie.se services, Cole 
 \vas building up a credit and reputation which was enabling 
 him to extend his operations on an enormous scale, whilst 
 Maltby felt doomed, by some inscrutable decree of fate, for 
 ever "to tread the same dull level." Maltby makes an applica- 
 tion for an increase of his salary, and the sum of 200 per 
 annum is agreed upon as the future price of his services. 
 
 But new difficulties arising out of this artificial means of 
 obtaining money have to be met, and difficulties involving 
 great delay, expense, labour, and risk. On the 5th and llth. 
 of October, 1853, Messrs. Overend, Gurney, and Co. com- 
 menced realizing the securities lodged in their hands by David- 
 son and Gordon, scarcely compatible with the length of time 
 during which they had entertained misgivings as to the Hagen 
 "Wharf warrants. Whether Messrs. Overend and Gurney 
 suffered, as is alleged, the whole of the Hagen "Wharf warrants 
 held by them from Davidson and Gordon to pass out of their 
 hands at this time, and afterwards recalled the larger portion, is 
 not quite clear ; but it is certain, however, that on the 5th of 
 October they secured, as the proceeds of spelter warrants re- 
 ..ting 200 tons of that metal, 4233, and on the llth of the 
 same month,bytwo sales of similar character and amount, 1097, 
 making a total of 8332, and that these warrants having passed 
 beyond recovery, they advanced to Cole, who had taken upon him- 
 self the obligations of Davidson and Gordon, 318 tons of spelter 
 of the value of 4G30 3s. 5d. The procedure was summary. 
 Even the usual course of informing depositors of warrants two 
 weeks before their disposal of those documents, on the part of 
 the holder, had not been taken. On the morning of the 12th of 
 October, Gordon entered his office in a state of alarm. David- 
 son was there, and was already supplied with the portentous 
 news which found vent in the expression, <: Guruey's are selling 
 us up." Gordon glanced at the letter Davidson had been 
 perusing, and went out. Mr. Webb, an individual who was
 
 1CS TACTS, FAILTJKES, ASD TRATJDS. 
 
 connected with Messrs. Davidson and Gordon, through the 
 "West Ham distillery, happened to be present, and astonished 
 at Davidson's intimation that his business career \vas thus sud- 
 denlyto come to an end,asks what it all means. Davidson replied 
 by handing over the letter for perusal of "Webb, who found it, 
 according to his statement, that Overend and Gurney had sold 
 as much as 30,000 worth of copper at a high price. " Why, 
 this is a good sale," exclaimed Webb, "if it was bought for 
 13 10s. and sold for 20." Davidson laughed at "Webb's 
 arithmetic, and, doubtless, turned away to compute the chances 
 that still remained of being able to regain " the wonted path 
 of honour." 
 
 The time had come for a specific understanding between 
 Cole and Davidson and Gordon and Messrs. Overend, Gurney, 
 and Co., and an interview, remarkable in many respects, took 
 place on the 13th of October, between Mr. Chapman and Cole 
 and Gordon at the establishment in Lombard Street, imme- 
 diately after business hours. The subject of the warrants was 
 first approached with an implied understanding as to their 
 fictitious character, though for form's sake, and perhaps for the 
 sake of the temporary indulging of a hope which Mr. Chapman 
 was loath to destroy, Gordon was asked whether the warrants 
 represented " goods or nothing." The historic account that 
 has been handed down of the scene that ensued intimates that 
 thereupon Gordon shook his head. Cole, who was next inter- 
 rogated, abandoning all pantomime, gave it as his confidential 
 opinion that the warrants were bad. The gloomy business of 
 surveying the extent to which his firm had been involved by 
 the fraud, of ascertaining the fictitious metal warrants on hand, 
 as well as what had become of the money advanced, and by 
 what means the debt incurred was proposed to be cancelled, 
 occupied Mr. Chapman eight mortal hours. Cole and Gordon 
 had not come there without providing themselves with expe- 
 dients by which to encourage trust in the rectitude of their
 
 FACTS, FAILUBES, AND FEAUD3. 1G9 
 
 intentions, and to excite a confidence in the ability of one or 
 the other party eventually to discharge the obligation. 
 
 Suddenly, in the course of the discussion as to ways and 
 means, there loomed up the distillery at West Ham, Essex, 
 the money for \vhich, as a security, the warrants had been 
 lodged, was represented as having gone into that establishment, 
 to the pecuniary success of which it had greatly contributed. 
 Gordon's tongue was now loosed, and he urged, with an earnest- 
 ness as fictitious as the warrants which had been handed in, 
 the present and prospective prosperity of the distillery. This 
 was quite a new subject with Mr. Chapman, who must have 
 been struck with the singular freak of fortune which had made 
 the value of metal warrants, amounting to 2G9,092, depend- 
 ent on the distillation of spirits, for it was suggested that out 
 of the profits abundant means would be found for reducing the 
 balance. Here, too, was a lease of the property, which Mr. 
 Chapman was at liberty to keep, but which Gordon, if not 
 Cole, knew was of doubtful value, not only on account of the 
 circumstances under which, it was alleged, the establishment 
 had been obtained, but also from the existence of other mort- 
 gage deeds. But although this document would hardly bear 
 the test of a legal examination, it was surrendered, and was 
 held with a tenacity that withstood for a time the importunate 
 application even of assignees in bankruptcy. On this occasion 
 judgment was displaced by feeling, and all inquiries were 
 avoided that might have led to painful results. Overend, 
 Gurncy, and Co. had to choose between their money and the 
 sacrifice of their customer. Their interests being involved, 
 they felt feeble in respect to acting independently, whether it 
 concerned the distillation of spirits, or a fraud which threat- 
 ened the whole community with danger. Not, perhaps, con- 
 sciously to themselves, but led by the imperative facts of the 
 case, they looked chiefly to the reduction of their balance with 
 Cole, and exhibited an extraordinary torpor in respect to the
 
 170 FACTS, FAILUEES, A^D FEAUDS. 
 
 further doings of that individual. Under the circumstances, 
 the exposure of the fraud was believed to be a duty which did 
 not belong to them. They had entered into an engagement 
 with Cole for profit, and they were merely conforming to the 
 necessities of a course which would secure them reimburse- 
 ment, and prove their discretion. 
 
 The practical skill with which Cole could direct on others im- 
 putations that might as fairly lodge against himself, was rendered 
 evident in this interview, in which he managed to put himself in 
 the position of a fellow-sufferer with Messrs. Overend, Crurney, 
 and Co. He had himself, he affirmed, lent the warrants to 
 Davidson and Gordon ; that he found he could not get them 
 back again, and that he had withdrawn the metal. This was a 
 new variation of the system of alleging " stops " to be on the 
 warrants, which had been so unsuccessfully attempted in the 
 case of other parties. Xo wonder that Mr. Chapman should 
 take courage in presence of Cole to turn round and say to 
 Gordon, " I believed you to be an upright man, I now only 
 look upon you as a thief; " * no wonder that Cole should have 
 the courage to tell Mr. Chapman that all the warrants were 
 invalid, except some for steel. Cole, taking the responsibility 
 of the whole matter on himself, finally handed in to Messrs. 
 Overend, Gurney, and Co. a promissory note for 120,000, 
 from Davidson and Gordon, endorsed by himself, payable on 
 demand with interest, at 5 per cent, per annum, from the 27th 
 inst., as further collateral security for their advances. At the 
 close of this interview, Mr. Chapman said, " K"ow, understand, 
 that what has taken place here to-night must not go beyond 
 these walls ; " indeed, he might very fairly have addressed to 
 Cole the speech of Duke Ernest to the Count of Egesheiin in 
 "Hora3 Germanicse : " 
 
 * It should be stated that llr. Chapman, when examined, on the trial 
 of Gordon, on the 23rd of August, 1855, expressed a doubt whether he 
 had used this particular expression.
 
 FACTS, FAIL1TBES, A>'D FRAUDS. 17J 
 
 "Thou feel'st compassion truly, 
 Xor shall I hence depart quite uneonsoled. 
 Hut look not round thus anxiously ; 
 (Boi*, our confidential clerk, can be trusted) in sooth 
 IS'o one is here to mark that thou hast spoken." 
 
 The aggregate sum advanced to Cole "by Messrs. Overend, 
 Gurney, and Co., from October, 1851, to September, 1852, 
 wlu'ii the balance against him reached its highest figure, was 
 '. ; *30, whilst the repayments of cash made by Cole during 
 the same period amounted to but 13,790, leaving the monthly 
 balance against him, for the last-named date, 252,240. From 
 the mouth of September, for reasons possibly to be found in 
 the unwillingness of Messrs. Overend, Gurney, and Co. to 
 receive such disproportionate repayments, the account current 
 of Messrs. Overend, Gurney, and Co. shows that their balance 
 was gradually diminished. When the realization of securities 
 began, which was in October, 1853, the monthly balance in 
 favour of Messrs. Overend, Gurney, and Co. stood at 195,055, 
 meiits Laving been made by Cole to the amount of 
 75. However, the balance in favour of Messrs. Overend, 
 Gurney, and Co. had stood at 195,655 from August, or dur- 
 ing the two preceding months. 
 
 On the morning after the interview with Mr. Chapman, 
 
 in Lombard Street, Gordon entered his office, exclaiming: 
 
 " Well, I have told Overend and Gurney everything." To the 
 
 on of Webb, who was again present as an interrogator, 
 
 "What is everything?" Gordon replied, "The warrants we 
 
 ''.eposited with Overend and Gurney; we can't deliver the 
 
 spelter," and being further pressed, he added that the party to 
 
 whom the spelter belonged, and of whom it was bought, was 
 
 not paid, and had stopped the delivery. He had been, he said, 
 
 v.ith Mr. Chapman and Cole until twelve o'clock the night 
 
 \ and had been obliged to acknowledge that lie owed Colo 
 
 120,000. To the inquiry if he did, he had said, " IS'o." At the
 
 172 FACTS, FAILUEES, AXD FKATJDS. 
 
 close of the interview, Mr. Chapman had turned round and 
 said to him, he was a man always held up as an example in the 
 City, as being a first-rate man of business, and a man of great 
 perseverance ; and he had looked on him as a pattern in the 
 world of business ; after which he had said, " I am sorry to 
 find, Gordon, that you are a thief." Gordon, by "Webb's 
 account, was "very much cut up/' and "sat there some time 
 without saying a word," "Whatever the character of his medi- 
 tations, they do not appear to have led to the determination of 
 abandoning a system which, even in this exceptional case, 
 appeared to work most admirably. Discount transactions were 
 still continued by them with Overend, Gurney, and Co., the 
 cash received from October 13 to June 9, amounting to 
 21,101. Cole, at this period, could not fail to discover that 
 he was virtually in a state of insolvency. "With the lease of the 
 distillery, from which so much was expected, in the hands of 
 Messrs. Overend, Gurney, and Co., and that firm pressing him 
 for more money, with Davidson and Gordon already deeply in- 
 volved, and his own transactions, now carried on at every hazard, 
 and, independently of rising and falling markets, being far from 
 prosperous ; further, with the great proportion of outstanding 
 warrants false, and himself hourly subjected to retrieve them 
 back at ruinous cost, where could any hope of assistance 
 arise. 
 
 A bolder policy was now desirable ; the career of Cole, and 
 even that of Davidson, had been brightened up in an unex- 
 pected degree by what had transpired at the house of Overend, 
 Gurney, and Co. on the 13th of October. After all his delin- 
 quency, Gordon, according to the after testimony of Bois, the 
 confidential clerk, had been treated as a gentleman ; and if Mr. 
 Chapman had really said to him, " I believed you to be an 
 upright man, I now only look upon you as a thief," he and 
 Davidson and Cole were willing to take the expression as the 
 qualified satire suggested by a somewhat severe benevolence,
 
 TACTS, FAILrHES, A>T> FRAUDS. 173 
 
 pointed without veiiom, and keen -without asperity, designed to 
 correct and not to punish, to be remedial and not vindictive. 
 The more serious apprehensions entertained in this quarter 
 having been put an end to, by what was virtually a compromise, 
 there remained, if they would fully relieve their minds of what 
 next weighed most heavily upon them the disposition of a 
 debt of 18,559, due to Freeman and Co., merchants of Bristol, 
 for copper entrusted to them for sale, but which they had mis- 
 appropriated. Mr. Yaughau, one of the members of the Bristol 
 firm, was invited to come up to London; and, on his arrival, 
 Davidson and Gordon confessed the delinquency, and made 
 known, their inability immediately to refund, at the same time 
 seeking to palliate the irregularity by representing that the 
 copper had been applied to the purposes of their distillery 
 at AVest Ham, and proposing repayment out of the profits 
 of that establishment. The great money brokers in Lombard 
 Street had not been treated to any specific estimate of these 
 profits, which were thus engaged to do double work in the way 
 of liquidation. It was now affirmed that the revenue of the 
 concern reached the sum of 20,000 per annum. The copper, 
 therefore, which had been so confidingly entrusted to them for 
 sale, but which they had misappropriated, was to be regarded 
 as having been safely invested, inasmuch as it had been swal- 
 lowed up in the distillery, which was represented to Mr. Yaughan 
 as having nothing speculative in its character, and to be per- 
 fectly independent of all those sudden and unforeseen casualties 
 which will frequently overthrow the best calculations. To 
 satisfy Mr. Vaughan beyond their mere note or word, they put 
 into his hands a fictitious warrant for steel of the assumed 
 value of 1700 or 1800, with some worthless "Westminster 
 bonds for 8000, and a promissory note equally valueless, 
 accepted by "Webb, who had leased to them the distillery. This 
 was not all. Four months had scarcely elapsed, when .Mr. 
 Yaughan was applied to by Gordon for a loan of 1900 on. a
 
 TACTS, rAILrEES, A>"D PEAUDS. 
 
 promissory note for 2500, secured by a fictitious warrant, 
 nominally of higher value, in order to enable him to meet bills 
 of exchange attached to the bills of lading of a cargo of barley, 
 which Davidson was alleged to have shipped from Spain for the 
 use of the distillery. "Whenever the distillery could be brought 
 in to bear on conversation or business, Gordon was enabled to 
 entrance the senses of his hearers, and probably effected as 
 much service by it, through having it continually on his lips, 
 as by the actual distillation of spirits. Twice already the dis- 
 tillery had proved of signal service in effecting a settlement of 
 uncomfortable disclosures, and a third time it was put to 
 account in the way of negotiation. Mr. Yaughan acceded to 
 Gordon's request, and made the advance, and when on the 
 succeeding April, the loan was found not to have been paid, 
 though over-due, the spelter warrant continued to be looked to 
 by the Bristol house as something more tangible than the 
 promissory note, and Maltby as a responsible character. An 
 action was brought against the wharfinger, for which a verdict 
 of 2300 was obtained. 
 
 Messrs. Overend, Gurney, and Co. had transactions with 
 Cole subsequent to the interview of October 13th. The 
 genuine securities held by them on the 5th of that month were 
 of the nominal value of 269,092 a sum which, when added to 
 the nominal value of the fictitious securities, gave 323.230 
 an amount exceeding by 127,575 that advanced by the 
 house. 
 
 With all his activity, Cole's operations did not from this 
 time turn to his advantage. He distinguished himself, indeed, 
 by eager and energetic rapidity, but disadvantages of all kinds 
 attended his course, including the buying up of fictitious war- 
 rants to meet the emergencies his course opened up, including 
 the losses on sales of metal, and interest on enormous loans. 
 Tet his transactions the first six mouths of this year amounted 
 to not less than 770,750 185. Qd.
 
 FACTS, FAILURES, AND FRAUDS. 175 
 
 It was in the very crisis of Cole's affairs, when Hngen 
 "Wharf warrants to the value of hundreds of thousands of pounds, 
 representing both dutiable, and free goods, and when probably 
 a still larger number, and for a still greater amount, had been 
 issued and recalled a date, too, at which the fraudulent cha- 
 racter of these warrants was known to Messrs. Overeud, 
 Gurney, and Co., that Maltby took out his license, he and 
 Harris de Eussett, giving bond, with approved security to the 
 recognized authorities. By directing Maltby to obtain a 
 license, Cole increased the responsibility of the wharfinger for 
 previous transactions, and coupling De Russett's name with the 
 
 :ction giving additional weight, although the latter was 
 virtually a man of straw. 
 
 Whilst Cole was reducing his balance with Messrs. Over- 
 end, Gurney, and Co., he insured possession, by the process 
 that has been already explained, o.. a sufficient number of 
 Hagen Wharf warrants to enable him to continue transactions 
 which were assuming a formidable magnitude. His cash ac- 
 count for the previous year showed payments amounting to no 
 less than 2,000,744 ; and had time allowed, these payments 
 would, doubtless, in this year have extended even further. Of 
 emergencies he had to meet was the pressure which Messrs. 
 
 nd, Gurney, and Co. were applying for the liquidation of 
 their balance ; and it so happened that in one endeavour to 
 collect and secure further means, he unwittingly increased the 
 balance against himself in the house in Lombard Street, and 
 occasioned a most startling and unexpected rencontre. Colo 
 had applied to Messrs. Short and Co. for an advance of 
 10,oOO on the security of fictitious spelter and tile and 
 copper warrants, representing 414 tons of metal, together with 
 warrants perfectly genuine for 185 tons of metal. Messrs. 
 Short and Co., never doubting the sufficient worth of the 
 tendered batch of warrants, granted the application, r.nd 
 
 I it to Messrs. Overend, Gurney, and Co., to obtain
 
 17G FACTS, FAILURES, AND FRAUDS. 
 
 from them a similar advance. To refuse the application would 
 have been to pronounce the doom of the Hagen "Wharf war- 
 rants, and to relinquish all further hopes of the reduction of 
 their balance in the account with Cole ; so the application was 
 at once accepted, and Messrs. Short and Co., by Cole not 
 making good the loan at the exact time it fell due, saw no 
 occasion, on the whole, to be dissatisfied with the transaction. 
 
 In the course of the year 1854, rumours reached Laiug 
 and Campbell that " something was wrong" with the Hagen 
 AVharf warrants. On the 18th of May, 1854, lightermen were 
 sent down to Hagen's "Wharf with two warrants for spelter, 
 without, however, succeeding in obtaining it. The person who 
 had lodged the warrants with Messrs. Laing and Campbell 
 was equally unsuccessful on applying the following day, and a 
 clerk was sent down by the firm to inquire into the reason 
 why the goods were withheld. Maltby showed him spelter in 
 abundance, and advised him to come down next morning, by 
 which time he would arrange with Cole for the warehouse 
 rent, which alone interfered with immediate delivery. The 
 next day both parties made their appearance together, when 
 the same pantomime was gone through. The difficulty of the 
 rent continued, and they had to " call again." A special order 
 was obtained from the previous holders of the goods, yet 
 Maltby again declined to deliver, conducting his friends for 
 the third time over the ground-floor of the warehouse of 
 Groves and Sons, and showing them a large amount of tin and 
 spelter, which might or might not be under the control of 
 Cole. A notice was next served on Maltby and De Eussett 
 by Laing and Campbell, furnishing them with the list of the 
 warrants in their possession received from Cole, and giving a 
 warning against delivering the goods to any other party. By 
 Cole's desire, Mr. Laing next waited on Cole, who explained 
 that neither he nor De Eussett had anything to do with the 
 wharf, and that Maltby was the sole lessee, but refusing to
 
 PACTS, FAILURES, A>'D FBAUDS. 177 
 
 come to any definite arrangement. Nothing now remained 
 but au application on the part of Laiug and Campbell for 
 delivery of all the goods for which they held warrants, on the 
 ground that they had "very weighty objections" to the goods 
 continuing to lie at Hagen's Sufferance "Wharf, and an inti- 
 mation to this effect was given to Cole. Maltby, on the same 
 day, was shown all the warrants, and, on inspecting them, de- 
 clared there were no duplicates, that there was metal to meet 
 them, but added that he had received an injunction from Cole 
 not to deliver the goods. Cole subsequently refused per- 
 sonally to give an order for the delivery, and, in the presence 
 of another gentleman, was accused by Mr. Laing of having 
 given him spurious warrants. The apparent market value of 
 the warrants, genuine and fictitious, held by Messrs. Laing 
 and Campbell from Cole Brothers, amounted to 18,000, a 
 sum not to be trifled with. They accordingly consulted their 
 solicitor as to the steps to be taken for recovery. Then 
 followed, on the part of Cole, a series of promised explana- 
 tions, attempted settlements, and skilful delays in approaching 
 the issue between himself and Laing and Campbell. Finding 
 himself threatened with legal proceedings, he began, in his 
 turn, to threaten to prosecute the firm for defamation, and 
 went so far as to authorize his solicitor to sue in the 
 Exchequer. Cole's sagacity was at fault in this matter, and it 
 was not considered advisable to proceed. 
 
 Had the endorsements on the Hagen AVharf warrants not 
 been genuine, the mystery might easily have been unravelled. 
 How was it these warrants were not effective to secure the 
 goods they represented ? No answer could be given, and no 
 duplicates made their appearance, the fact being that this 
 species of transferable security leaves no trace, no permanent 
 lists of warrants being usually made, and these lists being de- 
 stroyed as soou as the warrants are transferred or their con- 
 tents realized. Inquiry satisfied holders that the goods ivpre-
 
 178 TACTS, FAILURES, AXD TEAT7D3. 
 
 sented on the face of these documents had actually been im- 
 ported ; there -was no error either as to amount, or dates, or 
 vessels, or as to whom the goods were made deliverable. 
 
 In the month of May, 1854, Messrs. Sill and Mugins, 
 produce dealers, of Liverpool, who had some acquaintance with 
 Joseph "Windle Cole, and had sent him their trade circular for 
 several years, were called on by his brother, who stated that 
 Cole Brothers had a parcel of metals which they did not wish 
 immediately to dispose of, and would be happy to receive an 
 advance on this security. Regret was at the same time ex- 
 pressed that nothing should have occurred before this to lead 
 to business. It was proposed that Sill and Mugins should 
 draw on them for the amount required, discounting the bill at 
 their own bank. The managers of the bank were to lodge the 
 amount with Glyn's, to be handed to Cole Brothers against 
 warrants. This arrangement was agreed to after some in- 
 quiry at the Liverpool Borough Bank, and Sill and Mugins 
 drew upon Cole Brothers, at three months' date, for 25,000, 
 the sum which had been advanced. 
 
 Davidson and Gordon now felt they could not long avert 
 their impending doom. The intimate knowledge possessed by 
 them of the branch of business with which they were con- 
 nected as metal brokers, had been used to counsel and promote 
 undertakings only remarkable for the vast and varied wicked- 
 ness which marked both their conception and execution- 
 Ever since the memorable night of October 13, 1853, the 
 stately tree of their fictitious fortune had begun to wither, 
 root and branch. They had fraudulent warrants out on their 
 own account for 150,800, and yet they felt hampered at every 
 turn. The suspicions directed against Cole reacted on them- 
 selves. There could be no further acceptance of the warrants ; 
 the distillery, so long a means in their hands of exciting 
 confidence in fabulous resources a property that Gordon 
 had originally obtained from Mr. Thomas AYebb and the
 
 TACTS, FAILUBE3, AJfD FKA 170 
 
 of which was in the strong grasp of the legal ad- 
 of a firm they had defrauded, was now a dead weight 
 upon them, and no resource was left for them but to 
 stop payment and abscond. Proceeding to "West Ham, they 
 gave to the officer of excise a cheque they were well aware 
 would be dishonoured, for all duties claimed, and on making 
 large deliveries of the stock thus liberated to their usual cus- 
 tomers, they obtained cheques, which were immediately cashed, 
 and acceptances, which were discounted, to the amount of 
 2GOO. Of this sum, 1700 was handed over to their solicitor, 
 who subsequently paid out of it 1200 to the assignees of the 
 estate in bankruptcy. All these transactions took place within 
 a few hours. The flight of Davidson and Gordon, partners in 
 destiny as in trade, was precipitate. On the 19th of June, 
 just as the star of their credit was about to sink, they stepped 
 on board a steamer for Ostend, furnished with passports, which 
 represented one as " un rentier" the other as " un domestiqtce." 
 The distinction of master and servant was abandoned as soon as 
 London, the scene of their depredations, had disappeared from 
 off the line of vision, and, coming upon the swell of the channel, 
 Davidson and Gordon doubtless breathed more freely than 
 they had done for years. 
 
 And now the day of retribution had arrived. The announce- 
 ment that their affairs, through the ill success of their operations 
 in metals, and the heavy expenditure on the West llam Distillery, 
 had become irretrievably involved, created some sensation, and 
 this being followed by the intimation that they had suddenly 
 decamped, created further rumours exceedingly prejudicial to 
 themselves and the whole of their associates. Through this 
 occurred the first break-down of the conspiracy. The suspen- 
 sion of Messrs. Davidson and Gordon, their connection with 
 Messrs. Cole Brothers, or rather Joseph AViudle Cole, and 
 the disagreeable statements circulated soon wn-.> p reductive 
 of an unsatisfactory influence, and Mr. Cole was at length
 
 ISO TACTS, I-AirTBES, AKD FEAUDS. 
 
 himself obliged to commit irregularities iu meeting bis pay- 
 ments. 
 
 Suspicion was now deeply entertained of the stories re- 
 specting the heavy complicity of J. "W. Cole in fraud and the 
 issue of large numbers of simulated warrants. Maltby was 
 no longer to be found at the wharf. He had deserted his 
 post, with all its emoluments and all its dangers. Messenger 
 after messenger came down to see after the position of war- 
 rants in the hands of impatient holders. There was the 
 manager of the Liverpool Borough Bank still wavering as to 
 whether he should give up this security not worth a farthing 
 for a bill of lading for two thousand boxes of sugar. Mer- 
 chants and clerks, solicitors and bankers' messengers, looked 
 in from time to time to learn the interesting news that Maltby 
 was "in the country," and, when they became importunate, 
 were referred to his private solicitor, who had engaged to 
 make all necessary explanations. Thus, whilst the holders of 
 the fictitious warrants were alternating between hope and fear, 
 w.ere conning, in close and heated rooms, the mystery which, 
 for all that appeared on the face of it, Maltby alone could 
 solve, they were left to imagine that important personage re- 
 freshing himself, after his watchful and ill-compensated labours, 
 with a continental tour, making Belgium the great centre of 
 his temporary wanderings. 
 
 As soon as the news reached Liverpool that the bills of 
 Cole Brothers had been dishonoured, and that the house was 
 involved in difficulties, Mr. Sill, and the managers of the Liver- 
 pool Borough Bank, took measures to inquire into the property 
 represented by the warrants. The latter party received from 
 their solicitor the sage advice to realize at once, evidently from 
 the impression, that as there was not sufficient metal to pro- 
 vide for all the warrants, the recovery of goods represented by 
 them was to be determined by priority of claim. All such 
 calculations were vain. The clerk sent down to Hagen's Wharf,
 
 TACTS, rAILUEES, ASD FRAUDS. lM 
 
 part of the bank, was simply badgered. Sill, who went 
 up to London on this business, had to content himself with 
 [ing at the office of Cole several days, in the ineffectual 
 endeavour to see that individual, meanwhile obtaining materials 
 for a most amusing account, which he afterwards gave to the 
 manager of the Liverpool "Borough Bank, who, on the 4th of 
 July, followed him to town. It was explained by Sill how the 
 clerk had not cared to introduce him, how Joseph "Windle Cole 
 had not cared to see him, how the brother of Cole had informed 
 him that Cole Brothers would "go on again," and how he 
 (Sill) should be easy about the warrants, as there was enough 
 metal to meet them, and his brother (J. AY". Cole) was an 
 honourable man. Previous to leaving Liverpool, the manager 
 of the Liverpool Borough Bank had received an offer from Cole 
 to give a cargo of sugar in exchange for the warrants, upon 
 which he telegraphed to the solicitor not to enter into any 
 compromise until he had arrived. Now came up the question 
 of acceptance. It was urged that there were many unpleasant 
 rumours in connection with Maltby's name, and that though 
 there was no doubt the warrants were good, it was best to 
 make the exchange. "With evident reluctance for it was sur- 
 mised by the manager that the warrants might possibly prove 
 of larger value the whole were released for a bill of lading for 
 2000 boxes of sugar, of the estimated value of 8000. 
 
 With Davidson and Gordon ruined and absent, with Maltby 
 secreted at Osteud, with no more work to be done at Hagen's 
 Wharf, no fictitious warrants to be signed, with holders of 
 those in existence pressing upon him, or looking for some 
 means of compensation, the state of Cole's affairs might have 
 been considered hopelessly irretrievable. But in this great 
 emergency, with a firmness that approached obstinacy, he chose 
 to depend on the precautionary measures lie had taken. Self- 
 reliant, he trusted to the effect o downright daring, and stood 
 to face the storm that threatened completely to annihilate him.
 
 182 
 
 It is to be remembered that the scheme, as a scheme, was not 
 surmised ; the stoppage of the delivery of goods lodged as se- 
 curity for warrants, on the presentation of these warrants, had 
 ensued ; it was not so much as suspected that the warehouses 
 adjoining the wharf were not held by its lessee. 
 
 Even after his paper had been refused, and he had virtually 
 suspended, Cole spoke of "going on again," and, favoured by 
 the disappearance of Maltby, he had hopes of allaying the 
 general mistrust excited as to his own share in the business. 
 He could confidently rely on the silence of those who had 
 become pecuniarily interested in the continuance of his frauds, 
 or, at least, in the success of his undertakings. Involved as 
 he was, he relied on their quiescence or passivity to bring him- 
 self round, on the condition of ultimately saving them from 
 loss. He had, in some instances, dipped deeply into their 
 resources ; and whilst proceeding with no unnecessary celerity 
 in lessening balances against himself, he sought to avert fur- 
 ther pressure by holding out to the claimants the prospect of 
 future relief. But the wheels of business revolved slower and 
 slower, and on the 27th day of June, 1854, the same month 
 which had been marked with the suspension of Davidson and 
 Gordon, and the flight of Maltby, Joseph AVindle Cole stopped 
 payment. 
 
 The discreditable negotiations entered into by Cole with 
 various parties for withdrawing outstanding warrants of a 
 fictitious character, the property disposed of under arrange- 
 ment, the influence exerted to prevent public knowledge 
 of numerous transactions of a similar character, reflect little 
 honour on the parties concerned.* The simulated warrants in 
 circulation at the time, on the part of Cole Brothers, repre- 
 sented nominally a value of not less than 367,800; while 
 
 * To sho-w the feeling at this moment, \vhen the topic was the gossip 
 of the City, the general remark -was, that " every one was trying to do the 
 best for himself."
 
 TACTS, FAILURES, AND rBAUDB. 185 
 
 like documents credited to Davidson and Gordon were esti- 
 mated at not less than 150,SOO, making, in all, the enormous 
 total of more than half a million of pounds. In addition to 
 the sum of 54-,138, obtained by Messrs. Overend, Curney, 
 and Co., on the sale of metal represented by genuine warrants 
 lodged in their hands on October 5, 1853, they realized, on 
 warrants in their custody as security for advances equal to 
 71,620, the sum of 87,001, thus further reducing the 
 balance in their favour by 15,381. Additional securities de- 
 posited and realized increased this amount to 19,082. 
 
 The flight and subsequent history of Maltby, who incurred 
 throughout this long series of criminal operations a far greater 
 responsibility than he appears to have been made aware of, con- 
 stitutes an interesting episode to these transactions. It was 
 the unexpected sequel, occasioned by Maltby's ieath in 
 Xewgate, when awaiting trial, that prevented one of the 
 important portions of the drama from being played out. 
 Cole, on various grounds, urged Maltby to leave the country ; 
 circumstances were unpleasant, and the issue of affairs was 
 doubtful. Unquestionably, Cole foresaw that in Maltby'a 
 absence, the chances of success in diverting suspicion from 
 himself would be increased. It was to be hoped that all per- 
 sonal inquiries as to the authority under which the Hagen 
 AY harf warrants had been issued would thus be set at rest j 
 that no charge of conspiracy would receive any countenance, 
 and that Maltby would bo alone inculpated. Cole's policy of 
 restricting Maltby to the lowest possible amount of available 
 fund:!, so as to keep him more completely under control, was 
 continued up to the moment of departure, when he left London 
 for Ostend, with scarcely the means to defray necessary 
 expenses. According to a letter from Maltby to his wile, who 
 subsequently joined him in his retreat, lie left England at 
 " Cole's advice and request," and while confessing ho was 
 deeply to blame, he adds that, " when the business had gone on
 
 184 TACTS, FAILURES, A!S~D PEArDS. 
 
 in the same way for so many years, he felt every confidence in 
 Cole." Maltby learns from Cole that the solicitor of Davidson 
 and Gordon " is exerting himself to mitigate the angry feeling 
 against them;" and further, that it was his (Maltby's) " signa- 
 ture to an account " that was making some noise in London. 
 In this same letter, written by Cole little more than a fortnight 
 after his stoppage, he remarks : " It might be more comfortable 
 to you, as you do not like where you are, to go on to the lively 
 capital, and to live somewhere in the environs, but your address 
 ought not to be known to more than one party here, if you 
 wish to avoid annoyance." Maltby was then put in cor- 
 respondence with a solicitor, whose business it became to 
 impress him with the extent to which he was involved through 
 the disclosures which had taken place, and advising him 
 to adopt every precaution which regard for his own safety might 
 suggest. He is further charged by the legal advisei of Cole, 
 and Davidson and Gordon, of having been aware of his acts in 
 connection with the warrants that had been used for fraudu- 
 lent purposes ; and, as respects his signature for Paris and Co., 
 he \vas informed that should he return he would undoubtedly 
 be arrested for forgery. This was on the 22nd of July ; 011 the 
 28th, he is advised that a charge of conspiracy was to be 
 attempted to be made out against him respecting business 
 at the wharf. Although Cole had held the lease, and obtained 
 the control of Hagen's "Wharf so long as the warrants were 
 current, there was now every respect paid by his solicitor to 
 Maltby's authority, so far as verbal recognition went, the 
 endeavour being made to obtain from him direct instruc- 
 tions as to the disposal of what remained on the wharf, 
 involving particulars as to its sale, and the remittance of the 
 proceeds. Though 20 was forwarded to Maltby on account 
 of the "sales," he refused to give the full authority, which in 
 effect would have committed him, though the solicitor was so 
 far successful as to obtain a conditional order for the delivery
 
 FACTS, FAILU11ES, AND FRAUDS. 185 
 
 of the keys. A dvised to shift his locality, he yet perseveringly 
 remained at Ostend, defying the approaches of an officer who 
 had been sent to arrest him by means of the friendly agency 
 of the police. Finally, on the 8th of September, came a royal 
 decree of expulsion. Forewarned of it, he embarked secretly 
 for England, and went to Brentwood, whither he was traced, 
 and arrested on the 22nd of November. Mrs. Maltby, who 
 was walking out with her husband at the time, was the first to 
 recognize the agent of the law, exclaiming, " Oh, dear ! this is 
 the gentleman we used to see at Ostend." On hearing the 
 warrant read, Maltby made inquiries respecting Davidson and 
 Gordon, observing, with great emphasis, that their arrest was 
 worth that of a hundred Coles. After a brief examination at 
 the Mansion House, when very little additional information 
 was elicited, Maltby was committed for trial. From his arrest 
 a great deal was expected. His ominous allusion to the com- 
 plicity of other parties, the opinion entertained that he would 
 eventually have made most important revelations, induced 
 those who were interested to look forward to his appearance 
 at the Central Criminal Court with great anxiety ; but, unfor- 
 tunately, they were doomed to be disappointed, for the "shades 
 of the prison-house" speedily closed on his obscure but not 
 uneventful life. On the 30th of November, he was found 
 dead in his cell. 
 
 At first the surmise gained ground that he had accom- 
 plished suicide, but for this there is no good cause of belief. 
 It is stated that he was naturally apprehensive and nervous, 
 and the large share of responsibility thrust upon him, with the 
 treatment he received from Cole and his advisers, no doubt 
 prostrated his system, and led to death from disease of the 
 heart. This was the close of the second act in this fearful 
 drama of mercantile knavery and fraud. 
 
 The first had terminated just previously by the conviction 
 of Cole, who, between July and the end of October, had
 
 ISO TACTS, FAII/UEES, AND FEATJDS. 
 
 passed through the ordeal of successive examinations oefore 
 the magistrates, and had been finally tried and sentenced. 
 The endeavour was evidently to keep Maltby out of the way, 
 and in this the clever professional advisers for the defence had 
 succeeded ; but the chief delinquent having now suffered, the 
 course of proceeding as respected poor Maltby little mattered, 
 except as far as the vindication of justice was concerned, 
 though he eventually escaped the misery of public prose- 
 cution and the ignominy of his fate through premature disso- 
 lution. The arrest of Cole took place on the 20th of July, on 
 the charge of having uttered false warrants for spelter and 
 tin, and his trial in the Central Court, October 25, 1854, on 
 the general counts of representing, with the view to obtain 
 money, that he had disposable power over goods of which he 
 had no control, and of having uttered and disposed of invalid 
 dock-warrants with fraudulent intentions, as well as having 
 been party to a conspiracy to the same end. The charge of 
 conspiracy fell to the ground ; and such had been the caution 
 of Cole, that, but for a suggestion of Chief Baron Pollock, 
 when the evidence was formally closed, it would not have been 
 discovered that Cole had used the warrants issued by Messrs. 
 Groves and Sous simultaneously with what were virtually 
 duplicates for the same goods, namely, the warrants signed by 
 Maltby; and the entire charge would, almost of necessity, 
 have fallen to the ground. Cole was accordingly found guilty, 
 and sentenced to four years' penal servitude. 
 
 But while these proceedings were occurring, Messrs. Da- 
 vidson and Gordon, having reached the Continent, were plea- 
 santly enjoying themselves, expending a large sum which they 
 had appropriated from their assets before they left London ; 
 and although active endeavours had been used to secure them, 
 every effort failed until Mr. Beard, a personal creditor, deter- 
 mined to take the matter into his own hands. 
 
 Their departure to Switzerland, their pleasant retreat with
 
 FACTS, FAILUBrS, A5D FHAUDS. 1ST 
 
 Madame Fornachon at Ncufchatel, their pursuit through several 
 canton?, and final departure for Naples, where they -were 
 arrested, their release on the 2nd of April (1855) by the magis- 
 trate at Taletta, the police surveillance exercised over them, 
 their subsequent embarkation for England, if narrated in 
 detail, would constitute an interesting contribution to foreign 
 travels ; but it has already, in a great degree, been dealt with 
 by Mr. Seton Laing, in his elaborate pamphlets. 
 
 On their compulsory return to England, after being in- 
 dicted and found guilty, on the 23rd of August, 1855, of fraud 
 and embezzlement, an indictment which was quashed on tech- 
 nical grounds, Davidson and Gordon made their appearance 
 again in court on the 19th of September, to answer to the 
 charge of having embezzled and secreted a portion of the 
 estate in bankruptcy, and were again acquitted ; a final con- 
 viction, on the 19th of December, however, on the charge of 
 obtaining goods under false pretences, was obtained against 
 them, and being found guilty, they were sentenced, some think 
 inadequately, to two years' imprisonment. 
 
 Some small reparation was offered for the deep injuries 
 which not only private individuals, but business commonly, 
 had suffered in the refusal of the claim of Messrs. Overend, 
 Gurney, and Co., for the balance of their account, amounting 
 to 120,000, out of the assets of the estate of Cole; and tho 
 exposure of the conduct of the partner of Messrs. Overend, 
 Gurney, and Co., Mr. David Barclay Chapman, who managed 
 these transactions, in having concealed for several months the 
 knowledge of the circulation of these fraudulent warrants, 
 elicited the severe reprehension of nearly all classes associated 
 with the mercantile community.* 
 
 The attention which the exposure of dock-warrant frauds 
 has drawn to tho existing means for testing the validity of 
 
 * For the detail of the various transactions vide tho report of 31 
 Quiltcr, Ball, and Co.
 
 188 TACTS, FAILUEES, AXD TEAUD3. 
 
 such documents means only available at an expenditure of 
 time, money, and labour which no large operator would care 
 to incur, and involving a delay in the transfer to which no 
 merchant, broker, or banker would submit will doubtless 
 lead to alterations in the present mode of issue, by which 
 safety will be more properly assured to commerce. It is 
 quite evident that, although confidence is essential in the pro- 
 gress of large mercantile operations, and that the business of 
 this or any other great metropolis could not be transacted 
 without it, additional checks are required to prevent the recur- 
 rence of any such mischief, which has had no parallel in mer- 
 cantile annals since the days of the great Exchequer Bill 
 forgeries. 
 
 To Mr. Setou Laing, of Messrs. Laing and Campbell, of 
 London, in the first place, and to Mr. Beard, of Messrs. 
 Beard Brothers, of Manchester, in the second place, must 
 be attributed the praise of having exposed and brought the 
 whole of these delinquents to justice ; and notwithstanding it 
 may be asserted that one was actuated by the desire to trace 
 the conspiracy, even to the inculpation of Messrs. Overend, 
 Gurney, and Co., and the other with the object of recovering 
 part of the proceeds which the fugitives secreted, they effected 
 eminent services to the general community in breaking up and 
 disbanding such a horde of dangerous criminals, and finally 
 placing their conduct in the proper light before the public. 
 Mr. Laiug was certainly most persevering in his efforts to 
 institute and successfully carry out proceedings against Joseph 
 "Windle Cole, a,nd, despite the endeavours to shield the latter 
 from the consequences of his acts, so that other and more 
 responsible parties might escape the peril of their situation, 
 compromised as it had been by preceding events, he not only 
 obtained his conviction, but also brought to view those cir- 
 cumstances which, connected with Messrs. Overend, Grurney, 
 and Co., created for a time a strong feeling against the firm,
 
 FACTS, l-.ULrui-S, A>*D FHATTDS. 189 
 
 but more particularly Mr. David Barclay Chapman. If tho 
 'jns of Mr. Beard were not exactly directed to the disso- 
 lution of the alleged conspiracy, he afforded essential benefit 
 by tlic steps he adopted to render Davidson and Gordon's 
 position on the Continent insecure, and thus, either compul- 
 Forily or willingly, hasten their return to England. This ho 
 effected, though not without great trouble ; but the end, as 
 has already been shown, was accomplished, and the culprits 
 were subjected to their well-merited punishment. Whatever 
 may have been the character or extent of the publicity which 
 these separate cases received at the respective periods they 
 were investigated, it was not in the least disproportioned to 
 the principles of commercial rectitude and financial integrity 
 which they involved. The estates, as administered in bank- 
 ruptcy, have not yet been finally wound up, and many claims 
 still remain for settlement and ultimate arrangement. 
 
 THE ESTATE OF COLE IN BANKRUPTCY. 
 
 The following is the report of the Accountants on the transactions 
 between Messrs. Quitter and Ball, Messrs. Overend, Gurney, and Co., and 
 tho Bankrupt, dated November 21, 1855 : 
 
 Sc JOSEPH WINDLE COLE, a Bankrupt. 
 
 To William Murray, Esq., Solicitor to the Assignees of J. W. Cole. 
 57, Coleman Street, November 21, 1855. 
 
 Sin, In accordnneo -with the wish of tho assignees, we proceed to sub- 
 mit to you the result of tho examination we have been making into tho 
 accounts filed by tho bankrupts, so far as it has applied to the dealings and 
 transactions between him and Messrs. Cvcrcnd, Gurncy, and Co., to which 
 matter the present report is confined. AVe do not propose to describe in 
 detail the process of our investigation, but simply to state tho conclusions 
 to which it has led us, accompanied by such explanations as may appear 
 try, premising, however, that the period over which our examination 
 has extended is that comprised between tho 18th of October, 1851, and the 
 termination of tho account on tho 31st of December, 1851, embracing 
 transactions by way of cash advances to tho bankrupt and repayments 
 thereof, to the total amount of 680,000, or thereabouts. 
 
 It will bo useful to bear in mind tho following dates as representing 
 epochs in the Bankrupt's affairs :
 
 100 PACTS, FAILTJBES, A^D PEAUDS. 
 
 13th October, 1853. About this date the disclosure was made by the 
 bankrupts to Messrs, Overeud, Gurney, and Co., of the fictitious 
 character of the securities held by them in the form of warrants pur- 
 porting to represent Spelter, Tin, Copper, and other description of 
 property at Hagen's wharf. 
 27th June, 1854. Cole stopped payment. 
 19th August, 1854. Cole became bankrupt. 
 
 There are no particular transactions requiring special remark of prior 
 date to the 5th of October, 1853, but it will be well to indicate what was the 
 general character and course of the account up to that date, at which point 
 the sale of securities by Messrs. Overend, Gurney, and Co., on account of 
 the bankrupt, appears to have commenced. 
 
 Thus, prior and up to the 5th of October, 1853, it appears that the 
 bankrupt was in the habit of obtaining loans on the deposit of securities, 
 occasionally redeeming portions of such securities by partial repayments of 
 the cash advances ; the transactions went on, gradually increasing the cash 
 balance against the bankrupt up to September, 1 852, when it reached the 
 sum of 252,240, from which date it became gradually diminished until the 
 5th of October, 1853, when it stood at the sum of 195,655. The follow- 
 ing list of the monthly balances in favour of Messrs. Overend and Co., up 
 to that date, corroborates this statement. 
 
 Balance of advances in favour of Messrs. Overend, Gurney, and Co., at 
 the close of the several months indicated, thus : 
 
 1851. 1852. 
 October . 16,070 November . 246,990 
 Koveinber . 39,490 December . 247,000 
 December . 86,350 1853. 
 
 1852. January . 243,500 
 January . 106,050 February . 2^9,800 
 February . 114,790 March . . 229,580 
 March . 128,910 April . . 218,210 
 April . . 153,520 May . . 211,310 
 May . . 206.680 June . . 216,255 
 June . . - 236,980 July . . 200,? 55 
 July . . 234,320 August . . 195,655 
 August . . 237,220 September . 195,655 
 September . 252,240* October (5th) 195,655 
 October . 246,990 
 
 The accounts current, rendered by Messrs. Overend, Gurney, and Co., 
 indicate the foregoing balances, as will be seen on reference to the accom- 
 panying copy thereof, marked " A." 
 
 Against this balance of 195,655, the securities held by Messrs. 
 Overend, Gurney, & Co., both genuine and fictitious, amounted to the nomi- 
 nal sum of 323,230, or thereabouts, according to the following statement : 
 
 * The total advances to this date amounted to 266,030; and the 
 repayments to 13,790 ; total, 252,240.
 
 FACTS, FATLUDES, ASD FBATDS. 
 
 191 
 
 ABSTBACT of Securities in hands of Messrs. Overend, Gurney and Co., 
 ,bcr, 1853. 
 
 
 Genuine. 
 
 Fictitious. 
 
 
 Quantity. 
 
 Amount. 
 
 Quantity. 
 
 Nominal amount 
 (about) 
 
 
 
 s. d. 
 
 
 S. d. 
 
 Copper Sheets 
 Copper Tiles - 
 Tin - - - - 
 
 23 tons } 
 20 ) 
 214 
 
 4,365 8 1 
 24,143 4 3 
 
 f 681 tons ) 
 \ sheets & \ 
 (. tiles ) 
 
 775 tons 
 
 79,597 
 90,675 
 
 Tin Plates - - 
 
 500 boxes 
 
 607 17 6 
 
 
 
 Tin Plates - - 
 
 205 cases 
 
 1,125 
 
 9,200 boxes 
 
 12,120 
 
 Tin Plates ) 
 on hand ) 
 
 50 
 
 250 
 
 
 
 Spelter - - - 
 
 185 tons 
 
 4,021 10 
 
 2,288 tons 
 
 48,043 
 
 Pig Lead - - 
 
 1-12 
 
 3,019 10 7 
 
 1,250 
 
 30,000 
 
 Swedishlron ") 
 and Steel j 
 
 41 
 
 732 10 
 
 231 
 
 3,927 
 
 Cocluueal - - 
 
 181 bags 
 
 5,198 17 10 
 
 114 bags 
 
 4,425 
 
 Iron- - - - 
 
 
 5,119 4 7 
 
 
 
 Eice & Coflbo 
 
 
 
 5,525 9 1 
 
 
 
 
 
 
 
 269,092 
 
 
 
 54,138 11 11 
 
 
 54,138 11 11 
 
 
 
 
 Total - 
 
 323,230 11 11 
 
 Tho above figures are deduced from particulars furnished by Messrs. 
 Orerend, Gurney, and Co. ; the amount of the Genuine securities being 
 that realized, except in the instance of the item of Tin Plates, 50 cases of 
 which are stated to bo " on hand," estimated at 250, and the amount of 
 the Fictitious securities being calculated upon the supposed value of the 
 property in April, 1853, when the loans then outstanding were renewed : 
 the statement may be subject to some immaterial modifications arising from 
 some trifling inexactness in respect of quantities, but it may bo regarded 
 as substantially correct ; so that had the whole of the securities then held 
 by them been genuine, the balance due to Messrs. Overend, Gurney, and 
 5th of October, 1853, would have been more than covered, 
 to the extent of the difference between 195,655 and 323,230, namely, 
 
 Such was the ostensible position of the account when Messrs. Overend, 
 Gurney, and Co. began the realization of the securities in their hands on 
 the 5th of October, which ultimately produced the actual sum of 
 S llj. llrf. in reduction of the balance of 195,655, leaving them 
 Creditors (ex Interest from the previous 30th of June), in the sum 
 '111,510 &y. Id., and such would have been the final state of the account
 
 192 FACTS, FAILURES, AND FRAUDS. 
 
 had the transaction which occurred subsequently to the 5th of October, 
 1853, been confined to the sale and realization of those securities ; but 
 such was not the case, as we find, from an entry in the Bankrupt's cheque- 
 book, that on the 18th of November, 1853, Messrs. Overend, Gurney, and 
 Co. received from him " Davidson and Gordon's Promissory Note for 
 120,000, payable on demand, with interest at 5 per cent, per annum, from 
 the 27th of October, 1833, as further collateral security for their advances." 
 And we moreover find, that further advances of cash by Messrs. Ovcrcnd, 
 Gurney, and Co., and further deposits of securities by the Bankrupt, 
 amounting in the whole to a very considerable sum, took place subsequently 
 to the 5th of October, 1853, with this result : 
 
 Istly. As to the Promissory Note of Davidson and Gordon ; the 
 amount thereof was passed to the credit of the Bankrupt, under 
 date 31st of December, 1853, but not being paid, such credit becomes 
 nugatory, and the transaction therefore produces no effect on the 
 balance of the account. 
 
 2ndly. As to the other transactions of dates subsequent to the oth of 
 October, the effect of them upon the account is to reduce the 
 balance duo by the Bankrupt from the before-mentioned sum of 
 141,516 8s. Id., to 122,433 14s. 10</., the difference between 
 these two sums, viz. 19,082 13s. 3rf., representing the extent of 
 the benefit accruing to Messrs. Overend, Gurney, and Co., by the 
 continuation of their dealings with the Bankrupt subsequent to the 
 5th of October, 1853 ; subject nevertheless to the amount of interest 
 that would be applicable to the transactions originating after that 
 date, that is, from the respective dates of the several advances, 
 to the time when the securities deposited against them were 
 realized. 
 
 This statement of results will be rendered more clear on a consideration 
 of the following figures, which are intended to represent in a summary form . 
 the facts above described. Thus : 
 
 J. W. COLE, Dr. 
 
 To balance of final account rendered by Messrs. Overend, 
 Guruey, and Co., after crediting him with the 
 amount of Davidson and Gordon's Promissory 
 Note for 120,000 ..... o,530 10 
 To amounts of such Note unpaid . . . 120,000 
 
 126,530 10 
 Subject to the value of 50 Cases of Tin plates on hand, 
 
 estimated at. . . ' 250 
 
 Balance provable by Messrs. Ovcrend and Co., inclusive 
 of the effect on the account of the transactions sub- 
 sequent to the 5th of October, 1853 . . 126,280 10
 
 Ul.l'KKS, AND FBAVns. 193 
 
 To Balance (ox interest from 30th June) duo to Messrs. 
 
 Ovi-ivn.l, (Mjnioy, and Co., on 5th October, 1853, 
 
 after r'.v<liting the value of the genuine securities as 
 
 rt. -lined by subsequent re.-tlization . . 141,516 8 1 
 
 To Interest on the account from 30th Juno to 31st De- 
 
 eember, 1853, as charged by Messrs. Overend, Gur- 
 
 ncj, and Co. ..... 3,816 6 
 
 Balance brought forward due by the Bankrupt, exclusive 
 of the effect of transactions since 5th October, 1853, 
 > \ivpt ing only to the extent of the Interest appli- 
 cable to them, comprised in the above sum of 
 3816 6* 115,362 14 1 
 
 To Cash and Spelter provided by Messrs. Overend aud 
 Co. to assist the Bankrupt to deliver 400 tons of 
 Spelter which had been sold by them on fictitious 
 warrants, previously to their discovery of the spu- 
 rious quality of those documents . . . 4,630 3 5 
 
 By proceeds of the above 400 tons of Spelter, passed to 
 the credit of the Bankrupt's account by Messrs. 
 Overend, Gurney, and Co. ... 8,331 6 7 
 
 Difference 3,701 3 2 
 
 Cr. 3701 8 2 Dr. 145,362 14 1 
 To amount of advances made subse- 
 quently to the 5th of October, 
 
 1853 . . 71,620 
 By amount realized by securities lodged 
 
 against the same 87,001 10 1 
 
 DiArSooe . . 15,381 10 1 
 
 Total surplus in respect of securities 
 
 deposited and realized since 5Hi of 
 
 October, 1853, in diminution of the 
 
 balance due by the Bankrupt to 
 
 Messrs. Overend, Gurney, and Co., 
 
 at that date ..... 19,082 13 3 
 
 Balance according to the final account rendered by 
 Messrs. Overend, Gurney, and Co., aa previously 
 etated 126,280 10 
 
 \\ o now proceed to explain more particularly the character of the 
 transactions, occurring since the 5th October, 1853, as developed by our 
 investigation. 
 
 It will bo observed that the sum of 19,082 13*. 3J. is classed mulct 
 two heads, viz. : 
 
 of transactions arising out of sale of 400 tons of 
 
 Sprlt.T ,7l>l 3 2 
 
 Hi Milt of sundry other transactions . . . 15,381 10 1 
 
 19,082 13 3
 
 194 TACTS, PAILUKE3, A5D FBAI'DS. 
 
 As to tlie Sale of the 400 Tons of Spelter. 
 
 In the " Spelter account" furnished by Messrs. Overend, Gurney, and 
 Co., which purports to set forth the receipts and deliveries of that article 
 by them in account with the Bankrupt, the following items of sale occur 
 to the credit of the latter ; it has, however, been stated to us that the 
 warrants purporting to represent this property were used by Messrs. Over- 
 end, Gurney, and Co., for Davidson and Gordon, on whose accounts the 
 sales were originally effected, but were afterwards adopted by the 
 Bankrupt. 
 
 1853. 
 October 5 By proceeds 200 Tons . . . 4233 8 10 
 
 11 By 100 ... 2052 7 3 
 
 100 . . 2045 10 6 
 
 400 8331 6 7 
 
 After these sales had been effected, and the warrants purporting to 
 represent the property at Hagen's Wharf, handed to the broker, Messrs. 
 Overend, Gurney, and Co. discovered the fraudulent nature of those docu- 
 ments, and that in fact no Spelter existed to meet them. Under these 
 circumstances, Messrs. Overend, Gurney, and Co. arranged with the 
 Bankrupt, that they would assist in providing him with the means where- 
 with to procure the Spelter to answer to the warrants, and so to secure 
 delivery being made in accordance with the sale which had been effected. 
 
 The following advances were made by Messrs. Overend, Gurney, and 
 Co., in pursuance of this arrangement : 
 
 1853. 
 
 November 1. To Cash on 68 Tons Spelter* . . 927 3 5 
 
 4. 50 . . 700 
 
 19. 20 ; , . . 300 
 
 December 5. 80 . 1200 
 
 1854. 
 February 4. 50 cost . 1225 
 
 Less. 
 Cash paid to Overend, Gurney, and Co., same day 
 
 by the Bankrupt . . . . 475 
 
 750 
 
 February 10. To Cash 50 Tons Spelter, cost . 1228 
 
 Less. 
 Cash paid to Overend, Gurney, and Co., same day 
 
 by the Bankrupt .... 475 
 
 753 
 
 318 Tons 4630 3 5 
 
 * In reference to this item we find, from the " discount account" be- 
 tween Overend, Gurney, and Co. and the bankrupt, that it was not an 
 actual advance of cash, but the balance of an over-due bill in their hands 
 for 2500 on Hudson, which balance is stated in the discount account to 
 be " against 68 tons of Spelter given up."
 
 FACTS, FAILURES, AND FRAUDS. 
 
 195 
 
 Tt would appear, therefore, from the above data, that the 318 Tons of 
 
 Spelter won- provided towards effecting the delivery of the 400 Tous sold 
 
 on false warrant.*, by which delivery the credit to the Bankrupt' a account 
 
 of the amount of such sale, namely, 8331 6s. 7d. t was established at the 
 
 -i- of an outlay on the part of Messrs. Overend, Gurney, and Co. of 
 
 3*. 5d. From what source the remaining 82 Tons of Spelter were 
 
 procured, in order to make up the full quantity of 400 Tons, wo have not 
 
 ascertained. 
 
 As to transactions since 5th October, 1853, other than those relating to 
 the 400 Tons of Spelter. 
 
 These may be classed under the heads of Copper, Tin, Spelter, Coffee, 
 and CochineaL 
 
 Firstly. Copper Warrants. 
 
 Securities of this character were deposited between 25th 
 May, and 3rd June, 1854, which realized at various 
 subsequent dates the sum of ... 16,085 12 1 
 
 The advances made in respect to these securities amount- 
 ed to . . . . . . 12,850 
 
 Surplus ....... 3,235 12 1 
 
 Secondly. Tin Warrants. 
 Amount realized from warrants de- 
 ited on the 14th and 27th May, 
 1854 .... 7,418 4 7 
 Amount of advances made in respect of 
 
 such warrants . . . 6,040 
 
 Surplus ....... 
 
 Thirdly. Spelter Warrants. 
 
 Amount realized from warrants de- 
 posited between October 19th, 
 1853, and June 6th, 1854 . . 42,539 16 4 
 
 Amount of advances made in respect of 
 
 euch warrants . . . 35,730 
 
 1,378 4 7 
 
 Surplus ....... 
 
 Fourthly. Cochineal and Coffee. 
 
 Amount realized from warrants trans- 
 ferred to Messrs. Overend and Co. 
 by Sargant and Co., 28th Feb. 1854 20,957 17 1 
 
 Amount of advance in respect of such 
 
 warrants .... 17,000 
 
 6,809 16 4 
 
 Surplus. . . . 
 
 Total Surplus under the above heads 
 
 3,957 17 1 
 15,381 10 1 
 
 The accompanying Statement, marked " B" sets forth, in detail, the
 
 196 
 
 FACTS, FAILURES, A^D FEATJDS. 
 
 particulars of tlis foi'egoing transactions as classed under the respective 
 heads of Copper, Tin, Spelter, Cochineal, and Coffee. 
 
 The following is a summary, in a tabular form, of the entire transac- 
 tions originating since 5th October, 1853: 
 
 Description of Goods. 
 
 Amount of 
 Advances. 
 
 Amount realized. 
 
 Surplus operating 
 in reduction of 
 Balance due by 
 the Bankrupt to 
 Overend and Co. 
 
 Spelter (400 tons) 
 Copper - 
 Tin - 
 Spelter ... 
 Cochineal and Coffee 
 
 Total - 
 
 s. d. 
 4,630 3 5 
 12,850 
 6,040 
 35,730 
 17,000 
 
 s. d. 
 8,331 6 7 
 16,085 12 1 
 7,418 4 7 
 42,539 16 4 
 20,957 17 1 
 
 s. d. 
 3,701 3 2 
 3,235 12 1 
 1,378 4 7 
 6,809 16 4 
 3,957 17 1 
 
 76,250 3 5 
 
 95,332 16 8 (19,082 13 3 
 
 Included under the head of Spelter, the following item of advance occurs 
 to the debit of the Bankrupt : 
 
 Feb. 4, 1854. To Cash 185 tons Spelter 
 
 3,960 
 
 The wan-ants for this Spelter formed part of a batch purporting to 
 represent, in the whole, 567 tons of that metal, and some 32 tons of Copper, 
 deposited by the Bankrupt with Messrs. W. Short and Co. as security for 
 a loan of 10,500, granted to him by that firm, who, however, appear to 
 have obtained the money for that purpose from Messrs. Overend, Gurney, 
 and Co., on deposit with them of the same securities, the whole of which, 
 with the exception of those representing the 185 tons Spelter, were known 
 to be fictitious. The loan, as between Messrs. Short and Co., and Overend, 
 Gurney, and Co., was settled in terms of some order given on the latter by 
 the former, dated 28th January, 1854, the effect of the arrangement between 
 those parties being that the amount of the loan and interest, 10,803 9*. 10d!., 
 was transferred on the 3rd of February, 1854, by Messrs. Overend, Gurney, 
 and Co. to the debit of the Bankrupt, who appears to have satisfied it in 
 the manner indicated in the following account furnished us by Messrs. 
 Overend, Gurney, and Co. in reply to our inquiries about the matter : 
 
 (Copy) 
 
 COLE BROTHERS. 2nd Month, 3rd, 1854. 
 
 1853 
 
 
 
 
 s. 
 
 d. 
 
 1854 
 
 
 
 s. 
 
 d. 
 
 12 30 Cash- 
 
 4,000 
 
 
 
 
 
 1 11 Bill on ) 
 
 
 
 
 1854 
 2 3 
 
 Interest on") 
 
 
 
 
 Hudson, ' 
 due 27th L 
 
 9,950 
 
 
 
 
 
 
 ditto at 5 > 
 
 19 
 
 3 
 
 V 
 
 April - J 
 
 
 
 
 
 per cent. J 
 
 
 
 
 2 3 Advance "\ 
 
 
 
 
 
 Discount } 
 on ditto at > 
 
 113 
 
 1 
 
 7 
 
 on 185 f 
 tons of f 
 
 3,960 
 
 
 
 
 
 
 6 per cent. J 
 
 
 
 
 Spelter -J 
 
 
 
 
 
 W. Short \ 
 and Co. ) 
 
 10,803 
 
 9 
 
 10 
 
 Bank and ) 
 Money - ) 
 
 1,025 
 
 15 
 
 
 
 
 
 14,935 
 
 15 
 
 
 
 
 14,935 
 
 15 
 

 
 TACTS, I Ail.lliES, AND FB-V.UD8. 197 
 
 T!y tlii* arrangement, Messrs. Overend and Co., assuming the bill on 
 
 il, appear to have secured to themselves the difference 
 
 :i the value of the good securities taken over by them from Short 
 
 and Co., and their advance of 3,960, and the debts which they transferred 
 
 from Short and Co. to the debit of Cole, 10,803 9*. lOd. ; and by the 
 
 panic operation to have avoided the necessity of an exposure by Cole to 
 
 W. Short and Co. of the real quality of the securities on which they had 
 
 granted him the loan of 10,500. 
 
 The question inevitably suggested by a consideration of the facts deve- 
 loped by this investigation is whether the benefits obtained by Messrs. 
 Overend, Gurney, and Co. in the way of a reduction of the debt due to 
 them by the bankrupt, after he had disclosed the frauds he had practised 
 upon them, are to be regarded in the light of undue preference, which might 
 be recovered by the assignees of the bankrupt ? But upon this, as upon 
 any other legal aspect which the case may present, we offer no opinion. 
 
 Messrs. Overend, Gurney, and Co. have facilitated the inquiry by 
 promptly rendering explanations upon all the points arising during the 
 progress of the investigation, on which it has been necessary to apply to 
 them for information. 
 
 "\Ve remain, Sir, yours faithfully, QUILTEB, BALL, and Co. 
 
 TRIAL OF JOSEPH WINDLE COLE. 
 
 CENTRAL CRIMINAL COUET, Oct. 25, 1854. 
 
 (Before LOUD CHIEF BABON POLLOCK and ME. JUSTICE MAULE). 
 
 Joseph Windle Cole, whose case was adjourned from last session on the 
 ground of the absence of several important witnesses, was placed at the bar 
 for trial upon serious charges of fraud. Mr. Bodkin and Mr. Giffard 
 appeared for the prosecution. The defence was conducted by Mr. Edwin 
 James, Mr. Clarkson, and Mr. Ballaatine. 
 
 Mr. BODKIN, for the prosecution, opened the proceedings by observing 
 that the prisoner was charged with fraud, under circumstances vdiich im- 
 parted to the case an universal degree of interest in a commercial commu- 
 nity, where so much depended on the faith and probity of those who had 
 dealings with each other. It was the custom of foreign merchants who 
 imported goods into this country to place them at a wharf, where they 
 remained until it was convenient to the importers to take them out. For 
 each parcel of goods so placed in a wharf a warrant was given, which ccr. 
 tified that the wharfinger was the holder. These warrants resembled bills 
 of exchange, and entitled any person to whom they were endorsed to claim
 
 198 FACTS, FAILURES, AND FEATJDS. 
 
 the goods of which they -were the representatives. It was, however, from 
 the abuse of that system that the present charge arose, and the gentlemen 
 who prosecuted in the case had been victimized by the prisoner, in con- 
 junction with a person named Maltby, who was indicted with him, but who 
 had absconded, and could not now be found. The system carried on was 
 that of signing and circulating warrants for goods which were purely ima- 
 ginary ; but to accomplish this, it would of course be necessary for the 
 person perpetrating the fraud to have an accomplice representing the 
 wharfinger. Maltby had taken a wharf on the banks of the Thames called 
 Hagen's Wharf, and this was joined by a warehouse held by Mr. Groves, 
 well filled with goods such as those in which the prisoner professed to have 
 in store upon the wharf. The wharf was so constructed that any person, 
 who, from curiosity or suspicion, desired to see the goods on which the 
 warrants were issued, would see the property of Mr. Groves, and be de- 
 luded into the idea that it was the property of the prisoner and Maltby. 
 The indictment charged the prisoner Maltby with falsely representing to 
 Messrs. Laing and Campbell, the prosecutors in this case, that two war- 
 rants which they delivered in July, 1853, to those persons upon an advance 
 of money, were warrants which duly represented that Maltby was then in 
 possession of the goods mentioned in those warrants, and that Cole had 
 disposable power over those goods, and, by endorsing the warrants to 
 Laing and Campbell, was in a position to transfer those goods to them on 
 the payment of their warehouse charges. On those warrants the prosecut- 
 ors made advances. Rumours, however, subsequently reached them, which 
 induced them to make some inquiries into the validity of the documents. 
 In May of the present year they affected to have sold the goods, which they 
 were entitled to do, and then it was they discovered the fraud which had 
 been practised upon them. He should call evidence which would substan- 
 stiate clearly the charge against the prisoner, and would clearly establish 
 against him the commission of frauds, which had most serious conse- 
 quences. 
 
 Mr. Seton Laing, colonial broker, carrying on business in Mincing Lane, 
 in partnership with Mr. Campbell, was the first witness examined. He 
 said, I knew the prisoner Cole, and about the 15th of July, 1S53, had some 
 communications with him upon the subject of the advance of money. The 
 securities were to consist of warrants : we agreed to advance 30,000 for 
 three months at 5 per cent, per annum, and per cent, commission. After 
 sending a letter to that effect, I saw Cole, who told me he agreed to take 
 the money on the terms mentioned in the letter. The securities were to 
 consist of spelter, tin, and cochineal bonded goods, upon which the money 
 was to be advanced according to their value. The warrant, of which the 
 following is a copy, was sent, together with a memorandum iu the hand- 
 writing of the defendant, to Mr. Laing :
 
 PACTS, TAILUBES, A>'D mAUDS. 199 
 
 " Hagen's Sufferance Wharf, St. Saviour's Dock, 
 
 " London, Nov. 23, 1852. 
 
 " Warrant for banca tin, imported in the ship ' Diana,' from Rotterdam, 
 entered by C. Henbrey ; deliverable to Colo Brothers or their order, by 
 endorsement hereon, on payment of all charges and rent from this date, 
 1052 slabs, weighing 32 tons, 9 cwt., 1 qr., and 20 Ibs. No. 378. 
 
 "MALTBY and Co.., Wharfingers." 
 
 There was another warrant for banes tin, imported in the ship " Pearl," 
 from Amsterdam, -which was also produced by the witness. 
 
 A cheque, of which the following is a copy, was forthwith transmitted to 
 the defendant : 
 
 "Xo. 5268, Lombard Street, London. July 29, 1853. Messrs. 
 Martin and Co., pay to Messrs. Cole Brothers, or bearer, Ten Thousand 
 Pounds. 
 
 " 10,000. " LAIN o and CAMPBELL." 
 
 The cheque was crossed to Glyn and Co., the bankers of the defendant, 
 and was paid in the course of business and returned to Messrs. Laing and 
 Campbell, and no suspicion whatever was entertained as to the correctness 
 of the transaction. Subsequently, however, in consequence of information 
 received by us, we applied to see the goods mentioned in the warrant, but 
 without effect. Mr. Cole himself afterwards positively refused to show me 
 the goods. I told Cole that Maltby, by his authority, had positively re- 
 fused to show me the goods. Cole only said in reply, that one of our clerks 
 had seen the goods already, and that he refused to show me them. I after- 
 wards again saw Cole, when I expressed to hum my opinion that the war- 
 rants were not genuine. He replied, that I need not be alarmed about it ; 
 that they were genuine, and that be knew the goods were lying at the 
 vrharf. 
 
 Cross-examined by Mr. E. JAMES, for the defence In the course of our 
 transactions with the prisoner, a large amount of warrants were deposited 
 with u?, and our transactions in this form amounted to 106,000. 
 
 Mr. BODKIN wished to ask the witness how many of the warrants so 
 alluded to had been discovered to be fictitious ? 
 
 Mr. Justice MAULE was of opinion that, unless the warrants themselves 
 were produced, such a question could not be pressed. 
 
 Several warrants being produced, witness was allowed to state, with 
 reference to them, that ho had been to the wharf at which the goods wero 
 declared to be deposited, and the wharfinger had refused to allow him to 
 we them. 
 
 Mr. Samuel Goodburn, clerk to Laing and Campbell, was then sworn, 
 He said, in the early part of the present year I made inquiries at Hagen's 
 \Yharf with respect to the goods mentioned in these warrants. 1'or the
 
 200 FACTS, FAILURES, A>*D FRAUDS. 
 
 purpose of seeing whether they were really at the wharf, we affected to have 
 sold them. Lucy and Son, lightermen, made a sale of 100 tons, aud we 
 delivered to them the warrants for spelter, etc,, which were in our posses- 
 sion, but they did not succeed in obtaining possession of the goods. In 
 consequence of this, I went on the 20th of May with the foreman of Lucy 
 and Son to Maltby's "Wharf, but without success. On that occasion we 
 demanded to be shown the goods. We were shown goods in a warehouse 
 belonging to Groves and Son, which Maltby said were parcels of tin which 
 had arrived by the " Pearl," and by the " Diana." At that time I did not 
 know that this warehouse was held by Groves and Son. I made repeated 
 unsuccessful applications for the delivery of these goods. 
 
 Cross-examined by Mr. BALLANTINE. The balance of our transactions 
 with the prisoner Cole is about 11,000 ; that is what we have proved for. 
 
 He-examined. The total amount of the warrants which turned out to 
 be valueless was about 18,000. Altogether our commission would be 
 under 2000 ; the interest may possibly be about 3000. 
 
 Mr. Edwin Brewer, clerk to Messrs. Glyn and Co. The defendant had 
 an account at our banking-house in July, 1852, and the cheques produced 
 were passed to his credit in our books, and paid in due course. 
 
 Mr. C. Henbrey, lighterman, examined. I remember lightering about 
 65 tons of tin from the " Diana" to the Platform Wharf, which is about a 
 mile from Hagen's Wharf. 
 
 Mr. T. Groves. I am in partnership with my father and brother, as 
 wharfingers, at Platform Wharf, and also have warehouses on each side of 
 Hageu's Wharf. On the 19th and 22nd of November, 1852, we received 
 at the Platform Wharf 1053 slabs of tin, ex " Diana," marked A, and 
 103S slabs marked B, lightered by Henbrey. On the receipt of that tin, 
 we issued 70 warrants for it, and took them to Cole Brothers' counting- 
 house one of the clerks there giving me a receipt. 1053 slabs marked A, 
 and 75 of those marked B, were delivered on the 13th of December, 1853, 
 to one Gray upon the warrants, and afterwards the delivery of the 1038 
 slabs marked B was exhausted. On the 23rd of July, 1852, we received 
 from Maltby 700 slabs of bonded tin, which was deposited in our ware- 
 house at Hagen's Wharf, and for which upon receipt we granted war- 
 rants. Those goods are still on our premises, and have been so since July, 
 1852. when they were deposited. Maltby had no control to interfere with 
 the lower floor, or with any part of our warehouse. 
 
 Mr. J. C. Pickersgill, sworn, said I am of the firm of Pickersgill and 
 Son merchants, in the City. We were in the habit of making advances 
 occasionally to Cole Brothers, or rather we granted our acceptances upon 
 the faith of warrants. On the 4th of May in the present year, I received 
 a letter from Cole Brothers to this effect : " Dear Sirs, We beg to advise 
 our draft at four months' date for 2000, and request you to deliver to
 
 FACTS, FAILURES, ASD rUAUDS. 201 
 
 bearer warrants for 40 tons banca tin against our cheque herewith, for 
 which we will send you our securities this afternoon." In consequence of 
 that letter, I returned some of the warrants in my possession. I received 
 in exchange warrants for 27 tons copper, and a quantity of tin, viz., 
 21 tons 15 cwts. 2 qrs. by the " Pearl," 700 slabs. (Warrant produced, 
 signed by Groves aud Son, for 700 slabs tin, bearing the endorsement of 
 Colo Brothers, in the handwriting of the prisoner.) 
 
 Cross-examined by Mr. BALLAXTIXE. We have had transactions to 
 the extent, I should think, of half a million with the prisoner. There have 
 been some things of which we have had to complain in the course of our 
 transactions, but altogether we have found the conduct of the firm straight- 
 forward, and what it should be. 
 
 Mr. Henry Gray, lighterman. On the 13th of December, 1853, I re- 
 ceived at the Platform Wharf, 1128 slabs of tin upon warrants. 
 
 Mr. Wm. Crosfield, clerk to Messrs. Marten, Thomas, and Holland, 
 solicitors, of Mincing Lane, said My employers are solicitors to Mrs. 
 Hagen, the owner of that wharf. I produce the counterpart of a lease, to 
 which I am the attesting witness, dated August 30, 1850, between Mary 
 Hagen, on the one part, and James Edward Cole and George Harris de 
 Eussctt, of a wharf. Mrs. Hagen is the owner of some property in the 
 occupation of Messrs. Groves. 
 
 Mr. George John Graham, the official assignee of the bankrupt Cole, 
 produced the counterparts of cheques, showing the prisoner to have paid 
 the expenses of the lease, and one year's rent. 
 
 Mr. John Brady examined. I had charge of Hagen's Wharf before 
 Malt by came there, which was in 1S50. Mr. James Cole, brother of the 
 prisoner, put me in charge of the place. I remember Maltby first coming 
 there. Mr. James Cole came with him, but I did not see the prisoner. 
 After Maltby had the management, James Cole went away somewhere 
 within a week after. When I had been some time with Maltby we dis- 
 agreed, and I gave Maltby notice. I used to go to Cole's to get my 
 wages, and when I was going away I went to Messrs. Cole. The prisoner 
 expressed his regret that I was leaving, but said that they were not the 
 parties individually concerned in the wharf. 
 
 Charles Daniel, clerk to Messrs. Hammill, Solicitor to tho Customs, 
 produced a bond from the offices given by Mr. Maltby, dated December, 
 1853. Without a bond of that description, persons could not land at a 
 wharf goods liable to duty. Up to the date I have mentioned, there was 
 no bond in existence referring to Hagen's Sufferance Wharf. 
 
 Cross-examined by Mr. CLABKSON. There had been a bond given by 
 Groves, but at the time he gave the bond the premises were in his occu ; 
 pation. 
 
 Mr. Groves was directed to stand up, and stated that he had given n
 
 202 
 
 bond ; but this only applied to the warehouses on each side of the wharf, 
 and not to the wharf itself, which was never in his possession. 
 
 This was the case for the prosecution. 
 
 The LOED CHIEF BABOX said he hardly thought the court had been 
 fairly dealt with by the gentlemen who instructed the learned counsel for 
 the prosecution. 
 
 Mr. BODKIX. In what way, my lord? 
 
 The LORD CHIEF BAEOX. Why, in postponing the case, owing to the 
 alleged absence of important witnesses, whereas Mr. Henbrey appears to 
 have been the only witness not present. He seems to have been only 
 absent in the New Court. 
 
 The court was here adjourned for a quarter of an honr. On the return 
 of the learned judge, 
 
 Mr. JAMES proceeded to address the jury on behalf of the prisoner. 
 In a case of this kind, he said, arising out of transactions of very consider- 
 able magnitude, it was necessary that they should distinctly understand, 
 in order that they might arrive at a just perception of the facts, the 
 peculiar position in which Cole was placed in reference to the transactions 
 in which he was engaged in 1853. They must remember that it was not 
 for any irregularity in the conduct of his business, and it was not for any- 
 thing which stopped short of a criminal character, upon which he could be 
 convicted ; but the prosecutors must show beyond all reasonable doubt 
 that on the 29th of July, 1853 which was the important date to be kept 
 in view in these transactions when these two wan-ants were deposited 
 with Messrs. Laing and Campbell, the prisoner at the bar had a guilty 
 knowledge that these were fictitious warrants, and did not represent goods 
 as they purported to do. The transactions in which the prisoner had been 
 engaged were of very great magnitude. They had ended disastrously to 
 him. Mr. Cole had embarked in large speculations in transactions which 
 with the prosecutors alone amounted to upwards of 100,000 a-year, and 
 with another firm (Pickersgill) to half a million of money, Mr. Pickers- 
 gill stating that throughout those transactions there certainly were irre- 
 gularities, of which he did not approve, but that to his knowledge there 
 was nothing dishonest or dishonourable on the part of the prisoner at the 
 bar. There was no doubt that in the course of the vast transactions which 
 occurred in this line of commerce, in which enterprise and speculation were 
 rife to an extent wholly without a parallel in any other part of the world 
 in a capital like this, where so many different kinds of securities existed 
 persons were dependent, to a great degree, upon their clerks, and to others 
 to whom they must confide. Now he hoped to show that, upon the evi- 
 dence as it stood, nothing had been brought home to the prisoner at the 
 bar that there was no evidence to show that the prisoner, at the time he 
 deposited these warrants with Messrs. Laing and Campbell, upon the 29th
 
 PACTS, FAILl'HES, AXD FIlArD3. 203 
 
 of Julv, 1S53, knew that there were not at Ilagen's Sufferance Wharf goods 
 whi>-h properly represented those warrants. How did the prosecutors seek 
 to bring home the charge of a guilty knowledge ? They began by endea- 
 vouring to establish an intimate connection between Maltby and the prisoner 
 ! ar. Maltby was a wharfinger, and the lessee of Ilagen's Sufferance 
 "Wharf; and tho prosecutors endeavoured to show that Cole was the ic-.\l 
 owner and lessee of that property. Yet they had upon record the fact 
 that the prisoner, when spoken to on the subject of Brady leaving the 
 wharf, had replied that ho was not individually connected with, it. The 
 brother of the prisoner and Mr. do Russett were the lessees, while 
 Maltby appeared the person ostensibly carrying on business there, and 
 was treated by Mr. Groves as the real proprietor. Now the subject of tho 
 present indictment was two warrants one dated August 30, 1852, and 
 another dated November 23, 1852, issued by Maltby and Co. upon goods 
 landed from tho ships "Diana" and "PearL" These warrants were 
 deposited with Messrs. Laing and Campbell on the 29th of July, 1853, 
 and formed a portion of the security for their advance. Mr. Groves 
 declared that he had these goods brought to his wharf, Maltby coming down, 
 and apprising him that the goods would come, and would be placed upon his 
 wharf. Now there was no evidence to sliow that Cole had made use of one of 
 the seventy warrants issued by Mr. Groves, or had made use of one of them 
 at tho time he lodged Maltby's warrants in the hands of Messrs. Laing and 
 Campbell. This statement was, subsequently, in the course of the learned 
 Chief Baron's charge, contradicted by Mr. Pickersgill, who stated that at 
 all events ho had had a portion of the seventy warrants alluded to in his 
 possession in the course of 1852. Mr. James continued, by observing 
 that Maltby was not present, and if he had been, neither he nor Cole 
 could have explained tho course of business. He submitted, however, that 
 the facts as they had been stated in the course of the evidence were sus- 
 ceptible of a satisfactory explanation as regarded Cole. What reason had 
 1 > doubt the genuineness of Maltby's warrants? Cole had bought 
 and paid for the goods ; he knew they were at some wharf or other, and 
 that the goods represented by the warrants issued by Maltby and Com- 
 pany were in their possession somewhere j and where was there a tittle of 
 evidence to prove that, in the course of such enormous transactions, ho 
 knew the particular goods represented by these warrants were not where 
 they were declared to be, at the Sufferance Wharf, but had been taken 
 down to the Platform Wharf? What was more natural than that the 
 prisoner should believe Maltby had the goods in his possession at the timo 
 the warrants were issued ? The evidence offered with respect to the search 
 at the wharf in May, 1854, when Maltby had absconded, and hud in all 
 probability been dealing fraudulently with these goods, had nothing what- 
 ever to do with the charge now preferred. Tho prosecutors must prove
 
 20i PACTS, FAILUIiES, AND FEAL'DS. 
 
 tliat in July, 1853, the prisoner bad guiltily placed these \varrants in the 
 hands of the persons making the advances, he knowing, at the time of 
 doing so, that the said warrants were not represented by goods. The 
 learned counsel for the prosecution had sought to supply the defect in their 
 chain of evidence, by an assumption of complicity between Maltby and 
 Cole. But how was this evidence supplied ? He ventured to submit that 
 there was no evidence of the sort forthcoming. The goods alluded to in 
 the warrants had duly arrived : they were actually in existence ; and it was 
 immaterial to Cole whether or not they were at Hageu's Sufferance Wharf, 
 or at the Platform Wharf. Maltby represented them as being at Hagen's 
 Wharf, and where was the proof that Cole knew the contrary to be the 
 fact ? It was perfectly true that, in commercial transactions of this kind, 
 perfect good faith was requisite ; but it was also to be remembered that, in 
 criminal cases, there must be conclusive evidence to show that the crime 
 alleged did not arise merely out of business irregularities, but that there 
 was actually a criminal knowledge at the time of these transactions. Upon 
 all these grounds he submitted that their verdict ought to be for the pri- 
 soner, and he confidently appealed to them, in the expectation that this 
 would be the verdict at which they would arrive. 
 
 No witnesses were called upon the part of the prisoner, and the counsel 
 for the prosecution were, therefore, not entitled to reply. 
 
 The LOED CHIEF EABON then proceeded to sum up the case. The 
 prisoner at the bar, he said, had been indicted for obtaining money on false 
 pretences, and for procuring the advance of 10,000 upon the security of 
 goods supposed to be at a certain wharf, there being at that time no such 
 goods at all at that wharf. That was the charge. On the part of the pro- 
 secution they had endeavoured to make out that the prisoner was con- 
 nected with Maltby in some fraudulent plan of taking premises for the 
 purpose of entering into fraudulent transactions of the nature which, it 
 was alleged, those now in question had been. The prosecution might have 
 failed in that part of the case, but there still would be very much which 
 deserved the serious consideration of the jury. There was no doubt, as 
 had been observed by the learned counsel for the prisoner, that part of the 
 case for the prosecution was the charge of a sort of conspiracy between 
 the prisoner and Maltby, who apparently was to have been tried with the 
 prisoner, but who had got away, to take premises for the express purpose 
 of committing fraud. The jury would have to consider whether this had 
 really been established, but though they might be of opinion that this was 
 not made out, they would still have to consider whether the prisoner at the 
 bar had obtained money under false pretences which, if he did not abso- 
 lutely know them to be false, he had no reason to believe were true. The 
 case differed from some with which it might be compared, and certainly 
 differed in a manner which was favourable to the prisoner. If this had
 
 FACTS, r.YILUnES, A>*T) FKAUDS. 205 
 
 been a case of forging a bill, he knew he should have thought it of no sort 
 of importance whether a man had been engaged in transactions to the 
 extent of one, two, or ten thousand pounds. No amount of transactions 
 could justify the putting the name of another person to a bill, and issuing 
 it upon the authority of that person. But the case for the prisoner was 
 that there might have been large transactions between him and Maltby, and 
 Maltby might have declared to him that goods, which undoubtedly did 
 come, were duly represented by the warrants which were delivered to 
 Messrs. Laing and Campbell these warrants representing them to be in 
 one place, when in point of fact they were in another. The oflence charged 
 against the prisoner was one of a very serious description, on account of its 
 bearing upon a branch of commerce, and a portion of commercial dealings, 
 which undoubtedly required extreme good faith, and with regard to which 
 one could not be at all surprised that great anxiety should exist to get at 
 the truth. His lordship then read over the evidence which had been 
 adduced for the prosecution, commenting upon it as he read. It might be 
 taken for granted, in the first place, that not any goods like those named 
 in the warrants were really at Hagen's Wharf, and that the warrants which 
 referred to them in the possession of Laing and Campbell represented that 
 which was not true. 700 slabs of tin were landed from the " Pearl," and 
 1052 from the " Diana," both on behalf of Cole. There did not, however, 
 appear any reason to believe that any such goods were ever landed 
 and received by Maltby on account of Cole, though it did turn out 
 that some goods of a similar kind were received at another wharf; 
 and that at that wharf other warrants were issued for those goods, 
 which other warrants were used by the prisoner at the bar. In 
 answer to this it was urged by Mr. James, on behalf of the pri- 
 soner, that Maltby might have deceived Cole in regard to these war- 
 rants, and that the prisoner might have used them in ignorance of 
 there being really no such goods at Hageu's Wharf. It was thus sought to 
 show that the prisoner was a person who had been imposed on, whereas it 
 was the duty of the prosecution to prove that Cole was not the person 
 imposed on, but that ho was concurring with Maltby in imposing upon 
 others. Now it was true enough that Maltby was not here, and could not 
 explain how the case really stood, but, in considering if it were true that 
 Maltby had imposed upon the prisoner in this matter, the jury ought to 
 remember that commercial transactions of this importance did not gene- 
 rally take place by word of mouth. Almost every transaction of such 
 importance as must have taken place between Maltby and the prisoner, if the 
 view sought to be established was well founded they would naturally 
 expect to find every such transaction vouched for by documents. Thus, 
 the sending of goods was generally accompanied by an invoice ; the pay- 
 ment of niouey was vouched for by a receipt j and so on, jou could gene-
 
 200 PACTS, rAILTJEES, A!N*D 
 
 rally, by reference to books, by reference to documents, by reference to co- 
 temporaneous entries, get the actual history of commercial transactions ; 
 and there was certainly, therefore, a difficulty in the explanation afforded 
 by Mr. James. That objection seemed to be this : According to that 
 explanation, there did not appear to be any motive to Maltby to act as he 
 tad done. Why should Maltby multiply these goods ? Why should he 
 give warrants for them as being in one place, when they were really at 
 another ? This was the difficulty in the way of accepting the explanation 
 set up for the defence. If no goods at all existed at Hagen's Wharf, what 
 motive could Maltby have in saying to the prisoner, " I will issue warrants 
 for you to go into the market with ?" This was a question which the jury 
 would have to consider. There was no doubt that 10,000 had been 
 advanced by Messrs. Laing and Campbell upon the security of these war- 
 rants, and that the prisoner had obtained the benefit of them ; and the 
 only question therefore was, whether the money had been obtained under 
 the circumstances of fraud mentioned in the indictment. Mr. Laing, 
 having become uneasy with respect to the goods, states that he saw Maltby, 
 who refused to show him any goods at all, and afterwards went to Cole, 
 who said that one of the prosecutors' clerks had seen the goods, and who, 
 therefore, refused to give Mr. Laing an order to see them again. Now the 
 jury would have to consider what, as men of business, would appear 
 natural conduct on the part of a gentleman in a large way of business, 
 upon receiving an intimation that two warrants on which he had obtained 
 an advance of 10,000 were suspected of being fraudulently issued. They 
 would ask themselves whether, when the person who had made such an 
 advance expressed a desire to see the goods, it was natural on the part of 
 a merchant to refuse an order to see the goods on such a ground as that alleged 
 by the prisoner. They must consider whether the conduct of an honourable 
 man suffering under such an imputation would be of that kind, or whether he 
 would not rather have said, " Is it possible that you doubt the existence of 
 the goods? I will go with you myself, and see whether they are at the wharf." 
 Would an honourable man say, " I will not give you an order to see the 
 goods, for your clerk has seen them already ?" Now, if the clerk had really 
 not seen the goods, as it was declared he had, but had been shown other 
 goods substituted for them, then to be sure the jury would have to consider 
 whether the prisoner was imposed upon by Maltby, and whether he really 
 believed them to be the goods or not. They would have to weigh the facts 
 for themselves, and to ask whether the conduct of the prisoner had been 
 that to be expected from a perfectly innocent man free from any suspicion 
 or reproach, and having no part in any fraud, or -whether it was not the 
 conduct of a man who saw there was something wrong in the transaction, 
 and was disposed to postpone the matter as long as he could. As 
 he had before observed, the conduct of a man under such circumstances
 
 TACTS, FAILUBES, AXD FHATJDS. 207 
 
 formed a material subject for consideration. What would be the course to 
 bi- expected from an eminent merchant, on being told that warrants of 
 which lie availed himself to obtain advances were not genuine ? "Would he 
 not have replied, " Don't let us sleep ; don't let us rest ; don't let us eat or 
 drink before We go to the wharf and see whether the charge is true or not ?'' 
 Again, he repeated that he did not see what object Multby could have 
 in doubling the goods merely for the benefit of the prisoner. Maltby him- 
 self might indeed well be out of the way, because there could be no doubt 
 as to his conduct, in the issue of the fraudulent warrants ; but what motive 
 could ho possibly have when the prisoner at the bar appeared clearly 
 enough to have had the benefit of the true and of the false warrants ? Tho 
 jury, however, would have to judge for themselves, as men of business, as 
 well as men of fairness and candour, and see whether there was any founda- 
 tion for the statement that the prisoner got the benefit of the transaction^ 
 pocketing the produce both of the true and the false warrants, but yet knew 
 nothing whatever of the criminal transaction. If the charge of conspiracy 
 were all that had to be considered, he did not think the evidence was 
 sufficient to prove this ; but, on the other hand, the facts proved did not 
 in the slightest degree advance the case in favour of the prisoner. It might 
 be that the prosecutors had failed to sustain the charge of conspiracy, but 
 still there was left behind the inquiry how it was that Maltby, though not 
 receiving the goods, could yet give warrants for them. It was a serious 
 question for the jury to consider what object Maltby could have had 
 in doing this, and how it was possible that the prisoner could have dealt 
 with cargoes twice over. The question was whether they collected, from 
 all the transactions which had been placed before them, that the prisoner at 
 the bar had a guilty knowledge that these documents were not genuine. If 
 they thought all this was a mere mistake, mere negligence on the part 
 of the prisoner, and that he supposed when handing over these warrants for 
 10,000 that he was handing over genuine warrants, he was of course 
 entitled to an acquittal. On the other hand, if they thought that he had 
 the means of knowing, that in point of fact he did know, and could scarcely 
 be ignorant that the property which he had imported in the "Diana" and 
 "Pearl" was somehow or other doubled upon his hands, if they behoved 
 that at the time of obtaining this auin of 10,000 he knew that the security 
 offered did not exist, then it would be the duty of the jury to convict the 
 prisoner. They must bear this in mind it was sufficient to justify a con- 
 viction if they believed that the prisoner meant to raise money upon 
 a security which had no existence, even though very likely it was his inten- 
 tion to redeem his position, and that he never intended to run away, .-md 
 go off with the profits of his fraud. It was sufficient if, however honest his 
 ultimate intention might be, the jury believed that the prisoner knew, 
 at the time of obtaining this advance, that these warrants did not represent
 
 203 PACTS, TAILrEES, AND FBATJD3. 
 
 real goods in the possession of Maltby, and that he intended to establish a 
 sort of fictitious credit for the occasion which, when it answered his purpose 
 to do so, and supposing his speculations were successful, he intended 
 to replace and repay. This was no answer to the present charge. If a man 
 charged with forgery said, " I did not mean to defraud, and meant to take 
 up the bill, or to replace the money fraudulently received," this was no 
 defence ; in the eye of the law, such person was as guilty as the man who 
 raised money by a forgery, and then ran away. There might, to a moralist, 
 be a difference between the two cases ; but, as he had said, in the eye of the 
 law they were the same. It might be urged, that, even supposing the 
 prisoner to have had a guilty knowledge, in all probability it was his inten- 
 tion, if his concerns had gone on prosperously, to substitute other securi- 
 ties for these now in question. His circumstances, however, had become 
 reduced, and now the question was, not whether the prisoner intended 
 ultimately to cheat, but whether he intended to give a security which, at the 
 time of his giving it, he knew was not represented by goods. If that were 
 the opinion of the jv.ry, it would be their duty to return a verdict of Guilty ; 
 if they were actuated by a contrary impression, of course the prisoner 
 would have the benefit of it. 
 
 The jury, without retiring, deliberated in their box for a few moments 
 only, and then returned a verdict of GUILTY. 
 
 Mr. BODKLN* said there were several other indictments against the 
 prisoner for similar transactions, but it was considered that the purposes of 
 justice wculd be sufficiently answered by the present conviction. 
 
 Sentence was deferred till the following day, when the prisoner Cole was 
 brought up. 
 
 The CHIEF BABON, addressing him, said Prisoner at the bar, you have 
 been tried and convicted for misdemeanour for obtaining money under false 
 pretences. The false pretence consisted in presenting, as a valid security 
 for goods, warrants signed by a person named Maltby, purporting that 
 goods were in his warehouse, when it turned out that no such goods at any 
 time were there, but goods of that description were in a neighbouring 
 warehouse, which it seems very clearly were pointed out to the clerk of the 
 person who advanced the money. Upon the faith of those securities you 
 obtained the sum of 10,000, and from the result it appears that by this 
 false pretence you obtained that money, and the jury have found you guilty 
 of using that security with a perfect know ledge that it was altogether worth- 
 less. I entirely agree with the verdict of the jury. I think from the facts 
 which came out in evidence, it is quite clear that you had a guilty know- 
 ledge of the security not being worth anything. I do not think it material 
 to inquire whether this is one of many other instances in which the same 
 sort of conduct may have been adopted, and the same crime committed. 
 There may be some reason for believing that this is not a solitary instance
 
 FACTS, FAILUBES, AXD FBA.UD3. 209 
 
 from part of the evidence adduced. This, however, T do not deem it neces- 
 sary to inquire into, nor do I think it material to inquire whether you 
 intended ultimately to repay the money, and adopted this fraud merely to 
 r a present difficulty. The offence is that of obtaining a very large 
 sum of money upon the faith of a security which was substantially a 
 forgery, professing to represent goods which did not exist on the spot, and 
 under the circumstances which the document represented they did exist. 
 I can conceive few offences of a dishonest character more dangerous to the 
 community in which we live than that of which you have been found 
 guilty. Comparing your offence with the dishonest acts of many thousands 
 who have poverty and want, bad education, and worse example, as possibly 
 some extenuation for their offences, it appears to me that the offence of 
 which you have been found guilty is among the worst that can be brought 
 under the notice of a Court, the character of which offence is dishonest as 
 between man and man. You have apparently been involved in transactions 
 to a very large amount ; but I can receive that as furnishing no pretence 
 for saying that this by any possibility could have occurred through neglect 
 and carelessness. It may have been either from a love of wealth, or a 
 desire to become rich. You may have adopted this method of raising 
 money when you had no legitimate means upon which to ask for credit, in 
 order to get over a present difficulty ; but in whatever way the transaction 
 began, it appears to me that your offence against society is one of the most 
 dangerous, and one of the most criminal, that can be committed under cir- 
 cumstances of this sort. Upon these considerations, passing sentences of 
 severity upon persons who commit crimes, in my opinion, far less dangerous, 
 and far less criminal, it is impossible for me not to proceed to the utmost 
 limit of punishment which I have by the power of the law the means 
 of inflicting upon your offence, so that your example may deter others from 
 committing similar offences, and that it may not be supposed that 
 the magnitude of a man's transactions is to exempt him from a severe 
 punishment, if he is guilty of that sort of disregard of the property of 
 others which would bring persons in different circumstances to condign 
 punishment. The sentence of the Court is that you be detained in penal 
 servitude for the space of four years. 
 
 The prisoner attempted no remarks to the Court, and waa then removed 
 from the dock.
 
 210 PACTS, FAILUEES, A2TD 
 
 TEIAL OF DAVIDSON, GOKDON, AND COLE. 
 
 CENTEAL CEIMINAL COUBT, August 23, 1855. 
 
 (Before Mr. JUSTICE EELE.) 
 
 Daniel Mitchell Davidson, aged 41, and Cosmo William Gordon, 34, 
 both described as merchants, were placed at the bar of the Central Criminal 
 Court, to plead to several indictments charging them -with obtaining various 
 large sums of money by false pretences. Another prisoner, named Joseph 
 Windle Cole, also described as a merchant, already under a sentence of 
 penal servitude, upon a conviction arising out of some of the transactions 
 in which the prisoners Gordon and Davidson were involved, was also placed 
 at the bar. 
 
 There were four or five indictments against the two last-mentioned 
 prisoners, the amounts mentioned as having been obtained by them being 
 stated at 4100, 2400, 4900, 7000, and 17,000. 
 
 They were also charged under the Bankruptcy Act with felony, in not 
 having surrendered to be examined at the Bankruptcy Court on the day 
 fixed for that purpose by the Commissioner. 
 
 There was likewise another indictment in which the prisoners Davidson 
 and Gordon were charged jointly with Cole with conspiracy to obtain money 
 by false pretences. 
 
 The prisoners pleaded " K'ot Guilty " to the whole of the charges. 
 
 Mr. Ballantine and Mr. Poland conducted the prosecution; Mr. M. 
 Chambers, Q. C., Mr. Clarkson, and Mr. Parry were counsel for Gordon ; 
 and Mr. Serjeant Byles and Mr. Bodkin appeared for Davidson. Mr. Edwin 
 James, Q. C., and Mr. Tailings were also present, retained to watch the 
 case on behalf of Messrs. Overend, Gurney, and Co. 
 
 It was arranged that the case first taken should be the charge against 
 the prisoner Gordon for not having, after he was adjudged a bankrupt, 
 surrendered to be examined on the day fixed by the Commissioner of Bank- 
 ruptcy for his doing so, which by the Bankruptcy Act is made a felony, 
 and renders the person convicted of the offence liable to be transported 
 for life. 
 
 Mr. BALLANTINE, in opening the case for the prosecution, observed that 
 it was one which must be regarded as of the utmost importance in a com- 
 mercial community ; and there could be no doubt, from the position of the 
 prisoner, the amount of his dealings, and his connection with houses of 
 considerable reputation in the City of London, that the case had attracted 
 a very large amount of public attention. The charge against the prisoner 
 was framed under the 12th and 13th of Victoria, cap. 106, by the 251st 
 section of which various matters were declared to be offences when com-
 
 FACTS, FAILURES, ASD FRAUDS. 211 
 
 mittcd by persons in the position of a bankrupt. The Act provided that 
 those offences must be committed with an intention to defraud, and the 
 prisoner at the bur was arraigned for one of those offences namely, for 
 that, being a bankrupt, he did not surrender to the fiut of bankruptcy, as 
 it was his duty to do under certain rules which were laid down by the Act 
 of Parliament. In order to maintain the present charge, it was essential 
 to show that in that non-surrender the prisoner had been governed by 
 fraudulent intentions ; because he believed that the words " with intent to 
 defraud " applied to all the previous part of the section. It would be the 
 duty of the prosecution, therefore, to submit, 1st, that the prisoner did not 
 surrender to his bankruptcy ; and, 2ndly, that his non-surrender was in- 
 tended for purposes of fraud. The name of the prisoner was Cosmo Wil- 
 liam Gordon, and he was in partnership with one Daniel Mitchell Davidson. 
 Somewhere about the year 1817, he believed both those persons were bank- 
 rupts. They recommenced business, however, again in 1848. With what 
 amount of capital they did so he was unable to say ; but the probability was, 
 from the fact of their having been bankrupts so shortly before, that their 
 capital was not very large. However, they did recommence busines", and 
 there could be no doubt but that for four years their dealings as colonial 
 brokers and metal dealers were of a very extensive character indeed so 
 great, in fact, was the amount of business which they were transacting in 
 the City of London, that it almost attracted attention from its largeness. 
 This continued for some period ; but he believed that towards the end of 
 1852, or the beginning of 1853, they changed altogether the character of 
 their business, for they then became the purchasers, from a person named 
 Webb, of a largo distillery at West Ham, in Essex, and from that period 
 they carried on that concern in addition to the business of general merchants 
 and brokers. The jury were probably aware that in the City of London it 
 was the habit to represent large quantities of goods which were in dock or 
 elsewhere by warrants, in which a description of the goods was given. It 
 appeared that the prisoner, in conjunction with his partner Davidson, and 
 with Cole, who was intimately connected with them from 1853 down to the 
 time of the bankruptcy, dealt very largely in such warrants, representing 
 himself and partner to be the possessors of the property to which they re- 
 ferred. It happened that, in the most genuine transactions even, large 
 advances were from time to time required before the goods came to hand or 
 could be disposed of, and it was customary to advance sums of money upon 
 the faith and credit of men who were possessed of these warrants ; and the 
 prisoner, enjoying at that time credit in the City of London, did, at different 
 periods, obtain advances to a very largo amount upon them. Among the 
 .-hments with which he became connected was a high mercantile 
 house in the City, carrying on business under the name of Overt-mi, tSurnoy, 
 and Co. Mr. Qurney was, he believed, an old man, and took no active part
 
 212 TACTS, FAILUEES, A.3D FBAUDS. 
 
 in the busines?, which was principally carried on by Mr. Chapman, a gen- 
 tleman of considerable knowledge and great ability. From time to time 
 Messrs. Overend and Guraey made very large advances, and in October, 
 1853, the advances which they had made to Gordon on behalf of himself 
 and partner, amounted altogether to not much less than 200,000. In that 
 month of October, Mr. Chapman became suspicious of the nature of his 
 securities, and inquiries which he made upon the subject resolved his sus- 
 picions into absolute certainty. He sent for Gordon, and a conversatioa 
 took place between them, which resulted in Mr. Chapman saying to Gordon 
 that up to that period he had thought him an honest man, but that now he 
 found him to be a rogue ; and Gordon then admitted, substantially, to Mr. 
 Chapman, that every one of those warrants on which upwards of 80,000 
 had been advanced was of a fictitious and fraudulent character, and that if 
 they did not in point of law amount to forgeries, they were forgeries in 
 point of reality and fact. 
 
 Mr. CHAMBEBS here interposed, upon the ground that the question of 
 fraudulent warrants did not bear upon the present charge, of not surren- 
 dering to the fiat of bankruptcy. 
 
 Mr. BALLANTINE thought that it was necessary to show what was in the 
 mind of the prisoner when he absconded, and failed to surrender to his 
 bankruptcy. He would confine himself, however, to a narrative of the case, 
 and to observations which were strictly pertinent to the charge. Subse- 
 quently it appeared that the prisoner went to Mr. Webb, the original owner 
 of the distillery, and informed him that Mr. Chapman had told him that he 
 (the prisoner) was a rogue, but that he must not allow a syllable upon the 
 subject to escape his lips, and must keep it an entire secret from the world. 
 After this a suggestion was made, at an interview at which Cole was pre- 
 sent, which resulted in Gordon giving a promissory note for 120,000 to 
 Messrs. Overend and Gurney, which Mr. Chapman took, not probably 
 imagining that it would turn to much profit. After that, however, the 
 deeds relating to the distillery, which had been previously deposited with 
 Mr. Nicholson, were given as an additional collateral security to Messrs. 
 Overend and Gurney, and from that time to the time of the bankruptcy no 
 disclosure was made of the fact of these transactions. There was no doubt 
 whatever that, in consequence of this, Gordon, who had admitted himself 
 to be a dealer in warrants of this description, and to be concerned in one of 
 the greatest frauds which ever occurred in the City of London, was allowed 
 to carry on business, and did carry it on successfully, in good reputation, 
 and with fan* credit. During that time the prisoner was in constant com- 
 munication with Mr. Chapman ; he was known to be connected with the 
 large house of Overend and Gurney. The credit of himself and partner was 
 maintained in the City of London, and they were enabled to perpetrate fresh 
 frauds, in consequence of the credit which was assigned to them by Messrs.
 
 TACTS, rATLUEES, A>'D FB.AUDS. 213 
 
 :d and Gurney, and their neglecting to make known the important 
 matters to which he had referred. He could not but regret that this course 
 of proceeding had been adopted, because it had enabled Gordon to carry on 
 
 -a for a longer time than he could otherwise have done ; and it would 
 be proved that other warrants of the same kind continued to be deposited 
 by him, until the period arrived when he and his partner could carry on 
 their affairs no longer. Three or four days previously to the 17th of June, 
 
 he prisoner found himself in great embarrassment. A largo amount 
 of money was then due to the Excise for duty, and it was evident that at 
 that time Gordon and Davidson undoubtedly contemplated absconding, for 
 they had a great quantity of spirits removed from the distillery, upon which 
 they obtained advances to the amount of 3000. The Excise officer was 
 unwilling to allow the spirits to leave the distillery until the debt owing to 
 the Excise was discharged ; but upon a cheque for 7000 odd being given, 
 the spirits were permitted to go. That cheque, of course, -was never met. 
 Upon the 17th of June the prisoner and Davidson went to Dover. They 
 both were seen on board the Ostend boat, and they did not return to this 
 country until brought here by the " Indus," when they were compelled to 
 leave Malta. A commission in bankruptcy was sued out ; inquiries were 
 made, and all the available assets were found to be about 2000, which 
 Gordon had handed over to Mr. Elmslie, his attorney. These were the 
 assets; and the debts unsecured which they had incurred, including that 
 due to Overend and Gurney, and other debts upon fictitious warrants, 
 amounted to the enormous sum of 500,000. The prisoner and his partner, 
 after arriving at Ostend, went to Brussels, thence to Aix-la-Chapelle, and 
 they soon found themselves in Neufchatel. As there was no extradition- 
 treaty in existence with Neufchatel, they would not have been delivered up 
 in the ordinary course of things by the Government of Switzerland to the 
 Government of this country ; but as there were bills out which had been 
 drawn by the prisoner, they were put into the hands of inhabitants of Neuf- 
 chatcl, who took proceedings upon them. The" prisoner and his partner 
 then went to Geneva, and ultimately to Naples. At Naples they were 
 delivered up to the Government, and in May they were taken to Malta, 
 where, however, owing to some technical objection to the form of the war- 
 rant, they were discharged by the magistrate. An English officer was there 
 in attendance. The accused were obliged to leave Malta, and on their 
 arrival at Southampton they were taken into custody. lie had now, lie 
 believed, laid the principal facts before the jury. Upon the subject of the 
 non-surrender there could, of course, be no question, and ho apprehended 
 that the circumstances connected with the flctitious warrants, and with the 
 dealings of these persons generally, would leave no doubt upon the minds 
 of the jury that, in endeavouring to get away from this country, the prisoner 
 had done so with a full consciousness of the frauds of which he had been
 
 214 TACTS, FAILURES, A>'D PEAI'DS. 
 
 guilty. In conclusion, he would only observe that this was a case of the 
 very deepest importance, both from the character and magnitude of the 
 transactions, and from the mode in which the frauds had been mixed up 
 with other parties. In a great commercial community like this, where 
 credit was the soul of business, that credit must be maintained at all 
 hazards, cr the high character of this country in mercantile transactions 
 would be materially damaged, a result which would be certain to ensue if 
 it should appear that the law was incapable of dealing with great offenders 
 of the class now before the Court. 
 
 The following evidence was then adduced : 
 
 Mr. Thomas Hamber, a messenger in the Court of Bankruptcy under 
 Mr. Commissioner Goulburn, produced the bankruptcy proceedings in the 
 case of "Davidson and Gordon." The petition was filed on the 20th of 
 June, 1854, by John M'Millen, of the City of Glasgow, as the petitioning 
 creditor. 
 
 Mr. CEAHBEES took an objection to the reception of these documents 
 in evidence, on the ground that erasures appeared upon them, and the name 
 of the county appeared to have been altered from Middlesex to Essex, and 
 there was no evidence to show that these alterations had been made by 
 proper authority. 
 
 Mr. Justice EBLE, after some discussion, said he should receive the 
 evidence, as it bore the seal of the Court, but he would reserve the point 
 for further consideration if it should become necessary. 
 
 The petition and the other documents were then put in and read. The 
 prisoner and his partner were adjudicated bankrupts on the 21st of June, 
 1854. 
 
 Mr. Hamber, on further examination, said that on the 21st of June he 
 served a duplicate notice of the adjudication of bankruptcy at the offices of 
 the bankrupts in Mincing Lane. He saw a person there whom he supposed 
 to be the bankrupts' clerk. 
 
 Mr. CHAMBEES said this would not do. There must be proof that this 
 person actually was the bankrupts' clerk. 
 
 Examination continued. Mr. George, the clerk to Mr. Linklater, the 
 solicitor to the petition, accompanied him when he served the notice. The 
 witness then produced a copy of the London Gazette of the 30th of June, 
 1854, in which the bankruptcy was published. 
 
 Mr. CHAMBEHS objected to the reception of the Gazette as evidence, 
 on the ground that it described the bankrupts as of "West Ham, Middlesex, 
 whereas in the bankruptcy proceedings they were described as of West 
 Ham, Essex, and he contended this was a fatal variance, and that there had 
 been no legal notice under it. 
 
 His Lordship admitted the evidence. The days appointed for the sur- 
 render of the bankrupts were the 7th of July and the 19th of August, and
 
 FACTS, FAILURES, AtfD FRAUDS. 215 
 
 it appeared upon the proceedings that neither of the defendants surrendered 
 on either of those days. 
 
 In answer to questions put by Mr. CHAMBEBS, the witness said he was 
 not sure that the Court of Bankruptcy sat on the 7th of July, or whether 
 Mr. Goulburn or Mr. Fonblanque sat on the 19th of August. 
 
 Cross-examined. Witness was a messenger in Mr. Commissioner Goul- 
 burn's court. He went to Mincing Lane, accompanied by the clerk to the 
 solicitor to the petition. He only left one document. He did not give it 
 to any person, but left it in the counting-house in the usual way. 
 
 Mr. F. George, managing clerk to Messrs. Linklater, said, he accom- 
 panied the last witness to a place which he knew to be the counting-house 
 of Messrs. Davidson and Gordon, in Mincing Lane, and he saw him leave 
 the notice of the adjudication of bankruptcy there. He produced a copy 
 of the notice he said he had served that morning upon the prisoner Gordon, 
 calling upon him to produce the document that was left at his counting- 
 house on the 21st of June. 
 
 By Mr. CUAIIBEBS At the time he served the notice upon him, he had 
 pleaded to the present charge. He had been in custody since April, and 
 had been examined by the magistrate a great many times. 
 
 William Haggis deposed, that on the 25th of July he served a notice at 
 the counting-house in Mincing Lane of the days on which the bankrupts 
 were to surrender. He afterwards made a search among the papers of tho 
 bankrupts, but he could not find the notice he had left among these papers. 
 
 By Mr. CHAJIBEBS Witness had the keys of the premises, and he un- 
 locked the door and placed the notice on the mantel-shelf. He then locked 
 up tho place and went away. The assignees took possession of all the 
 books and papers. 
 
 -Mr. George was recalled, and was examined at considerable length by 
 Mr. Cii AMBEBS, with reference to the time when the alterations were made 
 in the bankruptcy papers, and he declared that the alterations were made 
 upon the discovery of the mistake in the county of Middlesex for Essex, 
 before the papers were signed by the commissioner. 
 
 ilr. BALLAKTIUE then proposed to put in evidence copies of the notices 
 that were served at the counting-house of the bankrupts, upon the ground 
 that the originals were lost, or that at least there was sufficient evidence 
 of tho fact to justify the reception of secondary evidence of their con- 
 tents. 
 
 Mr. CHAMBEBS objected to tho reception of the evidence, and con- 
 tended that the notice which had been served upon tho prisoner that 
 morning, was not given in reasonable time to enable him to produce the 
 document, supposing even it had been proved to have been in his pos- 
 session, and that the evidence that had been adduced was not sufficient to 
 show that the documents had been lost, and that to a certain extent it
 
 216 FACTS, FAILURES, A2TD FRAUDS. 
 
 negatived the possibility of the documents hat-ing ever come into the pos- 
 session of the prisoner. 
 
 The Court, without hearing Mr. Ballantine, ruled that the secondary 
 evidence was admissible. 
 
 Mr. CHAMBEES then said, as it would now be assumed that a summons 
 to surrender had been proved, he should submit that where there was a 
 joint fiat, a single notice was not sufficient. It might happen, where there 
 were several partners, that one of them might take the notice, and the 
 others be perfectly ignorant of such a notice being in existence ; and yet if 
 one notice was held to be sufficient, they would be liable to all the highly 
 penal consequences enacted by this statute. 
 
 Mr. Justice EELE said he would reserve this point for further con- 
 sideration, with any of the others which, upon deliberation, he should 
 consider tenable. 
 
 Mr. Checketts, a clerk in the Bankruptcy Court, proved that neither of 
 the defendants attended on the days appointed for their examination, and 
 that they were proclaimed in the usual course. 
 
 The notices then were formally put in, and read ; and Mr. Chambers 
 took another objection to the notice to surrender that it referred to a 
 bygone day namely, the 7th of July, it being proved to have been served 
 on the 25th of July. He urged that it was a misleading and equivocal 
 summons, and that the bankrupts were not bound to pay attention to it. 
 
 Mr. Justice EELE said that this objection should also receive con- 
 sicleration. 
 
 Mr. Charles Walker deposed that, previously to June, 1854, he had 
 been three years managing clerk to the prisoners' firm. They were colo- 
 nial brokers and metal agents, and also carried en the business of distillers 
 at "West Ham for nine or ten months. He did not know when they left 
 England, but he did not see them after the 17th of June, 1854. He had 
 examined the books since the bankruptcy with an accountant, and had 
 ascertained that there were large liabilities outstanding. He heard the 
 prisoner say, about the month of June, that there was a large sum due to 
 the Excise on account of the distillery. After the prisoner and his partner 
 left, witness had no means of carrying on the business, and no money was 
 left with him. He was aware that the bankrupts had dealings with Mr. 
 M'Millen, of Glasgow, and that they received goods from him. Some 
 cheques, he believed, were given in payment of the amount due to the 
 Excise. Mr. Gordon, the prisoner, signed those cheques. The offices 
 were opened on the 19th, and he expected to see the prisoner on that 
 day; but he did not see him any more until he was in custody. Xo 
 business of any kind was transacted after the 17th of June. 
 
 Cross-examined. "Witness had nothing to do with the distillery. He 
 was engaged in the office in Mincing Lane. There was a balance at the
 
 TACTS, TAILrnES, A>*D FRAUDS. 217 
 
 bankers' on Friday, tho 16th of June. The prisoner carried on n very ex- 
 . The bankruptcy messenger came on the 21st of June, 
 and, after that day, the counting-house was closed. 
 
 Sir. Samuel Davis, agent for Mr. M'Millen, of Glasgow, and other 
 manufacturers, proved that in May tho prisoner gave him three orders for 
 goods, to the amount of 2000. A portion of these goods was to be sup- 
 plied by Mr. M'Millcn. The value of that portion was 12G Gs. On 
 Saturday, the 17th of June, witness went to tho prisoner's counting-house 
 in Mincing Lane, and saw tho prisoner, but did not get any money. IIo 
 went again on the Monday, and found that the prisoner and Mr. Davidson 
 had left, and he could get no information respecting them. 
 
 Cross-examined. The arrangement with the prisoner was, that the 
 goods should be paid for by half cash in a month, and the balance in three 
 months. 
 
 Mr. M'Millen deposed that he authorized the goods in question being 
 sent to Messrs. Davidson and Gordon in May, 1854, and he had never 
 been paid for them. 
 
 Mr. D. B. Chapman was the next witness. He said I am one of the 
 firm of Overcnd, Gurney, and Co. We are money dealers. I know the 
 prisoner. I first knew him when he carried on another business in 1847. 
 He made some composition with his creditors at that time. Down to 1853 
 our house made several advances of money to him upon warrants for metal 
 of different descriptions. In October, 1853, in consequence of something 
 that occurred, I sent for the prisoner, and he came, accompanied by Mr. 
 Cole, to whom we had also advanced money. The sum we had advanced 
 at this time upon warrants was about 80,000, and we have never received 
 a::y portion of it. Cole had given me some information about tho war- 
 rants, at an earlier part of tho day. I had some conversation with tho 
 prisoner about the warrants, and I told him what I had heard from Cole. 
 I cannot recollect exactly what passed, but my principal object was to know 
 to what depth we were involved. 
 
 Mr. CHAMBERS having interposed, the witness said he did not think 
 he would object to what he was going to say, as it was nothing against his 
 client. 
 
 Examination continued. I had heard that Gordon's warrants were of 
 no more value than those I had received from Cole, which lie admitted 
 were worthless ; and I have no doubt that I broached this subject to the 
 prisoner, and asked him if it was true what I had heard. The effect of 
 what took place, was to certify to us that we had been defrauded of a great 
 deal of money. I do not think that I said to Gordon that ho was a thief. 
 It is not liknly that I should have done so. Colo was the person whom I 
 considered to have been tho guilty party at that time. I took down from
 
 218 FACTS, FAILrnES, AXV 
 
 the prisoner a full statement relating to the distillery, but I do not think I 
 asked him for any information about the warrants. 
 
 Mr. BALLAXTINE. Why did you send for him, then ? 
 
 Witness. We wished to know his connection with the warrants, and 
 the depth to which we were involved, and I found that out very soon. 
 Cole told me that there was no property at the wharf, which was supposed 
 to be represented by the warrants, and upon which we had advanced 
 80,000. The prisoner gave me a bill of exchange for 120,000 upon this 
 occasion. It was made payable on demand, and was drawn by Davidson 
 and Gordon, arid endorsed by Cole. That bill, of course, has never been 
 paid. On the following day, I received some deeds relating to the dis- 
 tillery from the prisoner Gordon. I swear that nothing was said about 
 those deeds until the time when they were placed in my possession. 
 
 Mr. CHAMBERS here objected that all these matters were quite irrele- 
 vant to the issue, and were merely calculated to cast a very serious preju- 
 dice upon the witness. 
 
 Mr. Justice EELE said he could hardly decide that the matter was not 
 relevant, but it was certainly a long way from the question of the bank- 
 ruptcy. 
 
 Examination continued. I never received the deeds as security, and I 
 gave them up when Cole was made bankrupt. 
 
 Cross examined. Mr. Gordon said he expected to be able to arrange 
 all his difficulties. The profits of his business were represented to be 
 between 30,000 and 40,000 a-year at this time. 
 
 Mr. Thomas Webb said I was the owner formerly of the distillery at 
 West Ham, and parted with my interest in it to Messrs. Davidson and 
 Gordon. I remember seeing the prisoner in October, 1853, and he told 
 me that he had told Mr. Chapman everything. I asked him what he 
 meant by " everything," and he said he had had large advances of money 
 from Overend and Gurney upon warrants, and that the goods had not 
 been paid for, and had been taken away, and he was obliged to acknow- 
 ledge that he owed Cole 120,000. I asked him if he did, and he said he 
 did not. I asked him what Mr. Chapman said to this, and he said Mr. 
 Chapman told him he had always looked upon him as an upright man, and 
 was sorry to find that he was otherwise. He also said that Mr. Chapman 
 said that what had taken place on the previous night between them was to 
 be kept secret. 
 
 Cross-examined. Witness was indebted to the prisoner's firm on ac- 
 count of the distillery to a very large amount, but not to the amount of 
 180,000. He could not state within 10,000 what the amount of the 
 debt actually was. Witness was indebted to them to a very brge amount, 
 and they took to the distillery against his will.
 
 TACTS, FAILUBES, AM) FEATTDS. 219 
 
 Evidence was then adduced to show that the prisoner had obtained 
 large sums of money by the deposit of fraudulent warrants for metals from 
 nt mercantile firms up to the month of February, 1854. It was 
 also shown that the firm owed to one creditor a sum of 9000 for copper, 
 and that they had deposited warrants which turned out to be perfectly 
 worthless for the amount. It also appeared that on the day the prisoner 
 and his partner absconded, they disposed of spirits to the amount of 
 2000, and obtained possession of the cash ; and that they gave cheques 
 to the supervisor of excise for 7000 odd for the duty, when it turned out 
 that they had no cash at the banker's to meet them. Evidence was also 
 given of their having been at Geneva and Neufchatel, and that they en- 
 deavoured to obtain a permission to reside at that place, wlxich was refused, 
 and that they then proceeded to Malta, from which place they returned to 
 England, where they were taken into custody. 
 
 The case for the prosecution being brought to a close by this evidence, 
 
 Mr. CEAMBEBS inquired what was tho act of bankruptcy upon which 
 they relied ? 
 
 Mr. BALLANTrra refused to satisfy the learned counsel on this point. 
 
 Mr. CUAMBEES then proceeded to submit to the judge various tech- 
 nical objections, which lie requested his lordship to reserve. In tho first 
 place, he contended that no act of bankruptcy had been clearly proved to 
 have been committed. The adjudication took place either upon the 20th 
 or 21st, and upon these days it seemed that the bankrupts were not at 
 their counting-house, but their clerks were ; and if the bankrupts had re- 
 turned, it was clear that the mere fact of their absence upon those days 
 would not have constituted an act of bankruptcy. "With regard to their 
 departure from the realm, the act required that that should be done with a 
 view to defeat or delay their creditors ; and he submitted there was no 
 evidence that they had quitted the realm with that intention. Another 
 point which he suggested was this Tho prisoner being abroad, did any- 
 thing which he omitted to do, which was required by the statute, consti- 
 tute an offence against the English. Bankruptcy Act, when, in fact, it was 
 an oflence committed beyond the realm ? 
 
 Mr. BALLAimBE said that tho oflence was committed at the place 
 where the prisoner did not surrender, as he was bound to do by tho law. 
 
 The Court thought that the view taken by Mr. Balkutine was the 
 correct one. He would reserve the points which tho learned counsel had 
 referred to, although he did not attach much weight to them. 
 
 Mr. CHAMBERS then proceeded to address the jury. Ho said (hat, in 
 truth and in seriousness, this case resolved itself into various difficult and 
 doubtful questions of law, founded upon what he might call tho equity 
 and justice of the bankruptcy laws. It would, ho thought, be extremely 
 useful if the jury would find, according to the evidence, whether it was
 
 220 TACTS, FAILTJKES, A>"D TEAUDS. 
 
 possible that the prisoner could have had the actual knowledge conveyed 
 to his mind of the duplicate of adjudication, and of the summons to sur- 
 render. He solicited them to find upon that issue, because it appeared to 
 him to be a most extraordinary proceeding that a man with the common 
 privileges of Englishmen should be called upon to do an act by summons, 
 and that it should be sufficient to place that summons in such a position 
 that it would be impossible for the man to see it. In order to establish, 
 the charge laid in the indictment that the prisoner omitted to surrender, 
 with the intention of defrauding his creditors it ought to be clearly 
 shown that he had a knowledge that he had been adjudged a bankrupt, 
 and that he had been called upon to surrender by a summons witliin a 
 given time. It had been decided long ago that a bankrupt's omission to 
 surrender was not a felony unless it were wilful. He submitted that the 
 prisoner had no knowledge when he went abroad that bankruptcy was 
 either inevitable or likely, and still less that a fiat in bankruptcy had been 
 issued. It must be remembered that the distillery was an enormous con- 
 cern, paying 7000 every week in Excise duty, and yielding profits to the 
 extent of between 40,000 and 50,000 a-year. The probability was, 
 therefore, that Mr. Gordon was abroad, expecting that each day might 
 bring him a telegraphic message informing him that he was no bankrupt, 
 and was not likely to become a bankrupt, for his business was of such a 
 nature that a few successful transactions might have restored him to 
 splendid riches. In the criminal law nothing was to be assumed, and the 
 jury could not take it for granted that the prisoner went abroad with any 
 intention to defraud his creditors, and with a determination not to sur- 
 render; neither could they say that the bankrupt had refused to surrender 
 in wilful disobedience of an order of which he had never been made 
 aware. 
 
 Mr. Justice EELE, in summing up, said that this was rather an unusual 
 prosecution, and of some considerable importance. The ofience was that 
 of not surrendering in bankruptcy, and he should tell the jury that it was 
 the duty of a trader becoming bankrupt to surrender ; and that, if he did 
 surrender, an advantage was conferred upon the creditors, who were then 
 in a position to make him give a full account of his transactions and his 
 property. He should give the jury, in three short heads, the items to be 
 established before they could find the prisoner guilty. They were first, 
 that he was a bankrupt ; next, that the requisite papers had been left 
 according to the Act of Parliament ; and, thirdly, that he had omitted to 
 appear, with intent to defraud his creditors. With regard to the first item, 
 there could be no doubt that the prisoner was a trader. Then, being a 
 trader, many things constituted an act of bankruptcy. One was, absenting 
 himself from bis place of business ; another was, absenting himself from 
 the realm ; and, if he did either of these, with intent to defeat or delay
 
 FACTS, FAILTJEES, A>*D FB.VUDS. 221 
 
 his creditors, he committed an act of bankruptcy. The circumstances of 
 -e were, that, being in considerable embarrassments, the prisoner, 
 upon the 17th of June, without any notice to his clerks, or leaving any 
 address, or affording any means of finding him, suddenly quitted the 
 country. Persons going to the counting-house found both partners gone, 
 and no trace of them left behind. These were, he thought, very strong 
 evidences of an act of bankruptcy. Then came the second question. Sup- 
 posing him to be a bankrupt, had all the necessary papers requiring him 
 to attend and surrender been duly left according to Act of Parliament ? 
 The act required that the duplicate adjudication and the summonses to 
 appear should be either served personally, or left at the last place of 
 business. There was ample proof that both these documents had been left 
 at the last place of business, No. 14, Mincing Lane. Notwithstanding the 
 formal objection which had been taken, and which he should reserve, that 
 appeared to him to be a sufficient service, according to the spirit of the 
 Act. By the introduction of the words " last place of business," the law 
 clearly contemplated bankrupts who were absconding from their creditors, 
 and were not to be met with. He was, therefore, of opinion, that the law 
 was satisfied if the notices were left at the last place of business ; and that 
 this had been done there was no doubt. Then came the third question, 
 Did the prisoner omit to surrender on the 19th of August, with intent to 
 defraud his creditors ? He (the learned judge) was of opinion that tho 
 creditors would be defrauded, and that a person must be taken to intend to 
 defraud his creditors, if he purposely stayed away to avoid an examination, 
 and the responsibilities which he would incur if he surrendered. If, then, 
 the prisoner believed that he was a bankrupt, and stayed away upon the 
 the 19th of August, in order to deprive the creditors of their right and 
 privilege to examine him, he (the learned judge) was of opinion that such 
 staying away would be with intent to defraud, and would justify the jury 
 in finding a verdict of guilty upon that head. So fer as Mr. Chapman's 
 evidence went, he thought, perhaps, that up to October, 1853, the bank- 
 rupt was more " sinned against than sinning ;" because Cole appeared to 
 have lent him certain spelter-warrants, and afterwards to have withdrawn 
 the metal. It was in evidence, however, that so late as February, 1854, 
 the prisoner continued to deposit these warrants, and in that month he 
 received from one witness alone 8000, upon a security of 10,000 or 
 11,000 worth of spelter-warrants, which there waa no metal to represent. 
 These were matters which, no doubt, the creditors would have been ex- 
 tremely anxious to have inquired into if tho bankrupt had surrendered, but 
 which, owing to his non-surrender, they had not been able to investigate. 
 After briefly alluding to the sudden departure of the prisoner from England, 
 on the 17th of June, the rapid conversion of spirits into money, and the 
 circumstance of quitting tho realm without informing his clerk, or leaving
 
 222 TACTS, FAILUEES, AIS'D FEATJDS. 
 
 any address behind him, all which things were, he said, fraught with sus- 
 picion, his Lordship informed the jury that if they were of opinion that 
 the prisoner had omitted to surrender, with intent to defraud his creditors, 
 the whole requirements of the statute would be complied with. If they 
 believed that the three requisites which he had mentioned were proved, 
 they would find the prisoner guilty; but if either of them was left in 
 reasonable doubt, they would acquit him. 
 
 The jury almost immediately returned a verdict of Guilty. 
 
 Mr. BALLANTINE then said there was a charge against the prisoner's 
 partner Davidson, in which the evidence would be precisely the same, and 
 the same objections would, no doubt, be taken as those that were reserved 
 for consideration in the present case. It therefore appeared to him that it 
 would be a useless waste of time to go into that indictment, and that it 
 would be better that it should stand over until the legal points were 
 decided. 
 
 Serjeant BYLES said that, on the part of his client, he saw no objection 
 to this course, and all the other charges were, consequently, postponed. 
 
 The subsequent proceedings may thus be condensed : 
 On the 10th November the objections were argued before Lord Chief- 
 Justice JEBVIS, Mr. Baron PABKE, and Justices EELE, CEOMPTOX, and 
 WIILES. There were eight objections raised. Firstly That all the docu- 
 ments in the commission had been altered. Secondly That some of the 
 proceedings had been signed by one commissioner, and some by another, 
 whereas the Act directed that a petition should be allotted to a particular 
 commissioner, and that that petition could not be changed without the 
 sanction of the Lord Chancellor. Thirdly That notice of the adjudication 
 in bankruptcy had not been served upon the bankrupts a notice having 
 been left in the counting-house which had been the bankrupts' by the mes- 
 senger of the Court of Bankruptcy, which was in charge of the messenger, 
 and of which he kept the key ; and it was not shown that the notice had 
 been delivered to, or had ever come to the knowledge of the bankrupts. 
 1'ourthly That there was a difference in the description of the bankrupts, 
 as contained in the adjudication, and as given in the Gazette. In one, 
 West Ham Lane was stated to be in the county of Middlesex ; in the other 
 it was described as being in the county of Essex. Fifthly That the sum- 
 mons to appear had been signed by Mr. Commissioner Holroyd, calling 
 upon them to appear before Mr. Commissioner Goulburn. It was left at 
 the counting-house on the 26th of July, and called upon the bankrupts to 
 appear upon the 7th of the same month and the 19th of August, it being 
 clear that, at the time the summons had been left, the date first-named for 
 their appearance had long since passed. Sixthly That the bankrupts were
 
 TACTS, FAILURES, AXD FRAUDS. 
 
 called upon to appear before Mr. Commissioner Goulbum on the 19th of 
 August, whereas it turned out that that learned commissioner did not pre- 
 side upon that day, and the bankrupts being summoned to appear before 
 mmissioner Goulburn, and not before " the Court," it was impos- 
 sible they could comply with the summons. Seventhly That the fiot 
 being a joint fiat, there ought to have been a duplicate notice issued to each 
 partner, whereas there had only been one notice left at the counting-house. 
 It was considered of great importance to a bankrupt to have such a docu- 
 ment in his possession, as, on his surrender under the notice, it was en- 
 dorsed by the commissioner, and he was privileged from arrest. Tho eighth 
 and kst objection was That there was no such proof as that charged in 
 the indictment, that the bankrupts were cognizant, before leaving the 
 country, that a fiat had been issued against them in bankruptcy. After 
 protracted arguments, which occupied the court the entire day, Chief Jus- 
 tice JEBVIS, in delivering the judgment of the court, said, with respect to 
 all the points raised, except the seventh, they were unanimously of opinion 
 that they could not be maintained ; but that as regarded the seventh, they 
 were of opinion that a duplicate notice of the adjudication in bankruptcy 
 should have been left at the bankrupts' counting-house, but that not having 
 been done, the requirements of the Act had not been fulfilled. Under the 
 circumstances, therefore, the objection was valid, consequently the convic- 
 tion must be quashed. 
 
 On the 16th December, Davidson and Gordon were again brought up 
 at the Central Criminal Court, before Baron ALDEBSON and Justice COLE- 
 EIDOE, to plead to several indictments charging them with misdemeanour 
 and felony. The case gone into charged the prisoners with having, after 
 they had been adjudged bankrupts, embezzled and secreted a portion of 
 their estate over and above the value of 10 to wit, three bank-notes of 
 the value of 500 each with intent to defraud their creditors. In another 
 count they were charged with embezzling money to the amount of 2600 
 with the like intent. It was proved that the fiat in bankruptcy was issued 
 on the 21st June, 1854 ; that the prisoners immediately absconded, taking 
 with them the notes and money in question. These notes were pro\vil to 
 have been dealt with abroad, and were in a few days transmitted to this 
 country. Upon these facts Mr. Baron ALDEESON expressed an opinion 
 that the evidence did not support the charge of embezzlement, as there was 
 no proof that the three 500 notes had ever been in the possession of the 
 prisoners. And Mr. Serjeant BTLES and Mr. CIIAMDEES, on behalf of the 
 prisoners, said that was the substantial point of defence. Another point 
 upon was, that it was never intended by the Legislature that a charge 
 of embezzlement should bo tenable on such facts, it being quite clear that 
 no offence could be committed of this description until alter the 21st 
 June, when the fiat of bankruptcy was issued; uud after that day the pri-
 
 224 PACTS, FAU-UKES, AND 
 
 sorters were abroad, and whatever was done took place abroad, consequently 
 that court had no jurisdiction in such a case. Mr. BALLA^TIXE, for the 
 prosecution, admitted that he could not support the charge with reference 
 to the notes, and should therefore rely upon the count for embezzling 
 money, which, he contended, was fully made out by the expenditure of 
 money in the different hotels in which the prisoners sojourned after the 
 21st June, when they were declared bankrupts. Upon which Mr. Baron 
 AlDEESON said the prisoners were charged with embezzling money, which 
 meant English money. The evidence was, that they had expended French 
 and other foreign money, which would not do. Mr. Justice COLEEIDGE 
 having expressed a similar opinion, a verdict of not guilty was returned. 
 
 On the 19th of December, the prisoners Davidson and Gordon were 
 again placed at the bar of the Central Criminal Court, charged with having, 
 within three months of their bankruptcy, obtained from certain creditors 
 goods by fraudulent means and pretences, with intent to defraud and not 
 to use in the way of business. Evidence was given to the effect that they 
 obtained goods, on the 25th of May, from a Mr. Beddoe, to the amount of 
 426 ; on the 12th of June, from Messrs. Ogilvie, Gilander, and Co., of 
 Liverpool, to the amount of 1500 ; from Messrs. Pickford and Johnson, 
 goods valued at 800 ; from Messrs. Alexander they obtained about 3500 
 worth of goods ; and from Mr. Hesse, of Manchester, about 1400 worth 
 of goods ; upon all of which it was proved the prisoners immediately raised 
 money. The defence was, that no criminal act had been committed, and 
 that however blameable the conduct of the prisoners might have been, the 
 power to deal with them was vested in the Commission of Bankruptcy. 
 Mr. Justice Coleridge, however, thought differently, and the jury found the 
 prisoners guilty. Upon which 
 
 Mr. Justice COLEEID0E, addressing them, said they had been con- 
 victed of an offence of a very serious character in a great commercial 
 community. There could be no doubt that both of them knew very well 
 the position of their affairs when they obtained these goods, and the mis- 
 chief of such a course of proceeding was apparent, and that innocent 
 persons must be the sufferers. It was clear that they had obtained goods 
 to a large amount, that they had obtained advances of large sums of money 
 upon those goods, and then shipped them abroad upon the chance of being 
 able to pay for them. Persons had no right, when they found themselves 
 to be insolvent, to speculate with other persons' property, upon the mere 
 chance of recovering themselves, and still less to do so in order to make a 
 purse for themselves. In the present case, he saw no circumstances of 
 mitigation to call upon him not to pass the extreme sentence of the law 
 under the Act of Parliament upon which the indictment was framed, and 
 it was, therefore, his duty to pass upon them the full sentence of the law, 
 which was that they be imprisoned and kept to hard labour for two years.
 
 TACTS, FAILURES, AM) H:\UDS. 225 
 
 On the 6th of February, 1856, Davidson and Gordon and Joseph 
 Windle Colo were placed at the bar before Mr. Justice Wightman and 
 Mr. Justice Willes, when they pleaded not guilty to an indictment charging 
 them with a conspiracy to obtain goods by false pretences. Mr. AVilde, 
 Q.C., said he appeared, with his learned friend, Mr. Ballantine, to conduct 
 this prosecution on behalf of the Corporation of the City of London ; but, 
 after an attentive consideration of all the circumstances, they were both of 
 opinion that it would not in any way further the ends of justice to proceed 
 with the present indictment j and, therefore, with the sanction of their 
 lordships, he should refrain from offering any evidence. The Court was 
 probably aware that three indictments had originally been preferred against 
 the defendants by order of the Court of Bankruptcy, and all the de- 
 fendants had been convicted, and two of them were sentenced to hard 
 labour for two years, and the other to four years' penal servitude. The 
 authorities of the City of London had felt it their duty in the first instance 
 to prefer another indictment, in case there should have been a failure of 
 justice upon the other three ; but as a conviction had taken place, they felt 
 it was now unnecessary to proceed with it. Mr. Justice Wightman said 
 that if the learned counsel took upon himself the responsibility of stating 
 that the ends of justice were satisfied by what had already taken place, the 
 Court would offer no opposition to the course that was suggested. Mr. 
 Ballantine observed that, even in the event of a conviction, the Court could 
 not inflict any additional punishment upon the defendants. Mr. Justice 
 "Wightman said he was aware of that. Any fresh sentence would be con- 
 current with the one already pronounced. The jury then returned a ver- 
 dict of Xot guilty, as regarded each of the defendants, and they were taken 
 back to prison.
 
 226 PACTS, -FAILURES, AN'D FRAUDS- 
 
 CHAPTEE VI. 
 
 THE FRAUDS AND FORGERIES OF JOHN SADLEIR, M.P., 
 AND LATE LORD OF THE TREASURY. 
 
 His History and Antecedents Appearance as an Irish Member Aban- 
 donment of Practice as an Attorney, and Entrance into the Arena of 
 Railway Excitement His Popularity as a Man of Business Accept- 
 ance of Seats at the Boards of various Companies Connection with, 
 and ultimate Elevation to, the Chairmanship of the London and County 
 Bank His Political Career, and Appointment as a Junior Lord of the 
 Treasury Resignation of that Position, and his ultimate Decadence 
 His Operations in the Encumbered Estates Courts The Difficulties 
 of the Tipperary Bank, and the Return of its Drafts The Discovery 
 of his Forgeries, and the Involvement of his Friends His Suicide, and 
 the subsequent Revelations respecting his various Crimes. 
 
 IT was after the general election of 1847 that the name of 
 John Sadleir first came prominently before the English public. 
 He had been known in Ireland for some years before, but it 
 does not appear that he had attained to any distinguished 
 position. He was believed to be a zealous Roman Catholic, 
 and in consequence he was selected by the Irish priesthood as 
 a member of that body who, under the name of the Irish 
 brigade, were returned to uphold the newly constituted hier- 
 archy with which the Pope had deigned to favour the British 
 nation, and to counteract the effect of Lord John Russell's 
 demonstration, as contained in his celebrated letter to the 
 Bishop of Durham, and embodied practically in the Ecclesias- 
 tical Titles Act. But John Sadleir did not come into Parlia- 
 ment to serve the Pope only. Although a pious Catholic, 
 there was another person to whom he saw that his Parliamen- 
 tary influence might be useful, besides the successor to St. 
 Peter, and that was John Sadleir himself. He was a man of
 
 FACTS, FAILUBES, AX1) riiAUDS. 
 
 business, of ready perception, far-seeing, persevering, and me- 
 thodical, lie knew something of banking, for his family had 
 been bankers for at least one generation. He was punctual 
 and precise, and not without that outward show of liberality in 
 his dealings with subordinates, which is sure to command good 
 service. He had beyond all these another qualification, with- 
 out which the highest talents frequently remain unproductive 
 to their possessor, and to the world he had the power of 
 impressing upon others a high opinion of his own value. He 
 was not the man to hide his talents under a bushel, but was in 
 an eminent degree an adept in the difficult art of displaying 
 them before the world in the most attractive guise. Of the 
 important sway which the Press often exercises upon the for- 
 tunes of individuals, as well as upon political parties and public 
 bodies, he was fully cognizant ; nor did he disdain to pay court 
 to those of its members whoso good word spoken at the right 
 season, and in the right quarter, he thought might tend to his 
 benefit. In Dublin he had practised as a solicitor, having 
 succeeded his uncle in a respectable and lucrative professional 
 connection. In this capacity he became the agent for nume- 
 rous large properties in Ireland, and when the Act for the 
 establishment of the Encumbered Estates Commission came 
 into operation, the knowledge he had thus acquired did him 
 essential service, and enabled him to operate in that Court 
 with no inconsiderable profit to himself. It is more than 
 probable that to the purchases he made, or was supposed to 
 have made, in this way, he first owed his reputation for wealth ; 
 because, although his professional practice was a good one, he 
 had followed it much too short a time to have realized any- 
 thing like an independence from it ; and respectable as his 
 family was for ordinary middle-class people, nobody ever sug- 
 gested that they were in a position to provide more than the 
 means by which he might, with industry and perseverance, bo 
 enabled to earn his own living, and maintain his station as a
 
 228 TACTS, FAILURES, ASD FEATTDS. 
 
 professional man. In 1846, in the height of the railway 
 mania, he abandoned the practice of the Pour Courts, Dublin, 
 and came over to England. Here he established himself as a 
 Parliamentary agent ; and his success in protecting, through 
 the Houses of Commons and Lords, several important Irish 
 railway bills, and in conducting the opposition to rival 
 schemes, promised him a rich harvest as the reward of steady 
 continuance in this very lucrative branch of the profession. 
 
 But John Sadleir was ambitious as well as clever, and for 
 such a character the eventful year of 1847 was peculiarly 
 favourable, especially when backed by the quiet unobtrusive 
 but never-ceasing support which Roman Catholicism invari- 
 ably extends to those of its proteges whose active exertions it 
 requires for the enhancement and extension of its own autho- 
 rity. He became a member of Parliament, and, aided by the 
 confidential statements assiduously and systematically put for- 
 ward of the great financial ability, the special business apti- 
 tude, and the administrative capacity of the new member for 
 the borough of Carlow, he obtained a high reputation in the 
 financial and commercial world almost before he took the oaths 
 at the table of the House of Commons. Solicitations to extend 
 the influence of his name and patronage to railway schemes 
 and joint stock companies of every kind, flowed in upon him. 
 Directorships and chairmanships of boards were pressed upon 
 him on all sides, and most gratified were those whose appli- 
 cations met with a favourable reception. The name of Mr. 
 John Sadleir at the head of the board was, by many share- 
 holders, considered to be equivalent to a rise of at least one 
 per cent, in the market value of their shares ; no wonder, then, 
 that he speedily found himself installed as Chairman of the 
 Eoyal Swedish Kail way Company, 'Director of the East Kent, 
 and joint manager of half a score of other enterprises. In 
 fact, for the moment, he was a veritable little Hudson. 
 
 But perhaps the most extraordinary circumstance in his
 
 PACTS, FAILURES, AXD FRAUDS. 229 
 
 metropolitan career vra3 his appointment to the very respon- 
 sible position of Chairman of the London and County Bank. 
 That be bad bad some banking experience was true. The 
 Tipperary Joint Stock Bank was a creature of his own. His 
 grandfather had established a bank in Tipperary, which had 
 carried on for many years a very limited and, as far as is 
 known, a very safe business. When John Sadleir first put up 
 for a financier, he changed the character of this little bank, in 
 which he had now acquired sufficient influence for the purpose, 
 into a joint stock company, placing his brother James at its 
 head as manager and sole director. Still the infatuation which 
 led the London and County board to appoint him as their 
 chairman, when he had scarcely been known in London a year 
 for he took his seat as early as the year 1848 and the 
 shareholders to acquiesce in the selection, is almost unaccount- 
 able. At the same time, it is due to this prince of swind- 
 lers to admit, that his connection with the London and County 
 Bank was untarnished by those crimes which marked his pro- 
 gress in every other capacity in which his unquestionably great 
 talents were exercised ; while the great attention and active 
 zeal he brought to bear upon the duties of the office, operated 
 most beneficially to the institution in the extension of its 
 business, and the establishment of its prosperity. It may be 
 that the constant watchfulness and supervision of an active 
 business-like board, the presence of responsible, intelligent, 
 and qualified managers, the regular audit and examination of 
 accounts, and the perfect system with which most of our me- 
 tropolitan joint stock banks are conducted, afforded him no 
 opportunity for making his position here subservient to hia 
 apparently natural dishonest disposition ; and that that activity 
 of mind, for which he was so remarkably distinguished, being 
 confined within proper limits, and controlled by effective 
 , was necessarily turned to the advantage of the estab- 
 lishment with which he was associated.
 
 230 PACTS, FAILTJEES, A^D FRAUDS. 
 
 But although the chairmanship of the London and County 
 offered no scope for the exercise of his peculiar penchant to 
 the prejudice of the bank, it gave him status as a financial 
 authority. The success of the institution under his manage- 
 ment drew attention to him in monetary and political circles, 
 and to a certain extent tended to confirm the reports \vhich 
 had been so industriously circulated in his favour. In Parlia- 
 ment he -was looked forward to as one who might some day fill 
 the office of Chancellor of the Exchequer, and even minis- 
 terial eyes were turned towards him. Governmental office, 
 however, was out of the question while he continued to be the 
 avowed tool of the ultra-montane party. But those whose duty 
 it is to watch the pulse of such members of the House of 
 Commons as may be useful to the ministry of the day, saw no 
 very great difficulty in the task of winning over the ambitious 
 member for Carlow ; and when Lord Aberdeen took office in 
 1853, the offer of a junior Lordship of the Treasury was a 
 temptation sufficiently powerful to dispel scruples of conscience, 
 and to transfer his allegiance from the see of Eome and Car- 
 dinal "Wiseman to the ultra- Protestant Premier. He replied 
 to the taunts which were liberally showered upon him for 
 deserting his old friends of the brigade, by saying that his hos- 
 tility was only directed against Lord John Russell, who, by 
 the Ecclesiastical Titles Bill, had openly declared himself the 
 enemy of the Eoman Catholic faith, in so far as it aspired to 
 titulary recognition within these realms ; but this excuse served 
 him not with those who remembered that, although Lord John 
 was not at the head, he was still a most important member of 
 the new Government, and, as the leader of the House of 
 Commons, was the chief under whom the new junior Lord 
 must serve. Consequently, John Sadleir had to pay the 
 penalty of his desertion from the standard of ultra-Eomanism 
 in the loss of his seat for Carlow. This, however, by no means 
 disconcerted him, and he resolved to try his fortunes with a
 
 FACTS, FAILUBES, AND FBAUDS. 231 
 
 constituency in which the papal elements did not so largely 
 preponderate as amongst the electors of Carlow. About this 
 time a vacancy occurred in the representation of the borough 
 of Sligo and he resolved to offer himself and to win. "\Vith 
 ordinary minds this would have been a task too hazardous to 
 attempt, for he was now in the position of a politician whom 
 no political party would trust. He had forfeited the confidence 
 of the Eomanist repealers, and was viewed with suspicion by 
 Protestants and other classes. Besides, there was, in the 
 person of Mr. Patrick Somers, a candidate well known to the 
 electors of Sligo, who had often represented them, and who, 
 unless money influence was brought to bear against him, was 
 sure to be returned. These difficulties were but incentives to 
 the genius of John Sadleir. Amongst the members of the press 
 with whom he had come in contact, was a clever, but not over- 
 scrupulous, native of the town of Sligo a man of strong assur- 
 ance, and some natural eloquence a well-known harauguer at 
 judge and jury societies and open debating clubs, and who at 
 that moment happened to be disengaged, and ready for any 
 excitement that would combine immediate pleasure with pro- 
 spective business. This person, it is alleged, was selected to 
 go to Sligo and divide the interest, so as to enable the funds 
 of the Lord of the Treasury to be effectively employed in 
 defeating poor Patrick Somera. 
 
 Of course the presence of this third candidate, whose posi- 
 tion and antecedents were well known to his former fellow- 
 townsmen, was looked upon by the electors as a farce ; but it 
 was a ruse which appeared to have answered the purpose 
 the new aspirant to Parliamentary honours polled some votes, 
 and thus the return of his presumed opponent was secured by 
 the narrowest of majorities, while he himself was compelled to 
 accept the hospitalities of the turnkey of Sligo gaol, for non- 
 compliance with the pecuniary demands of the returning- 
 officer for his proportion of the hustings' expenses.
 
 232 FACTS, FAILUKES, AXD FEATJDS. 
 
 The game John Sadleir now played was a high one, and the 
 stakes were heavy. - The Secretaryship of the Treasury, with 
 its patronage and emoluments, was before him, and in such 
 hands to what account might those emoluments not be turned ? 
 And at the end of the vista, now brought, as it were, almost with 
 the magnifying powers of a lorgnette, within his grasp, was the 
 Chancellorship of the Exchequer itself, with its facilities of ope- 
 rating indirectly upon the funds, and realizing a princely fortune 
 by the stroke of a pen, or effecting some other deep-laid plan 
 of financial double-dealing. Unfortunately for the golden 
 hopes which had now opened to his mental vision, he had 
 held the flattering appointment but a very short time when 
 certain whisperings were heard at the Treasury board of inge- 
 nious monetary arrangements in relation to certain of Mr. 
 Sadleir's numerous mercantile enterprises some assert in con- 
 nection with the Treasury itself which were not thought 
 altogether consistent with the honour of a high government 
 official, and an intimation from the right honourable gentle- 
 man who was responsible for the Treasury business, backed by 
 the approval of the noble Earl who led the Cabinet, that her 
 Majesty would be graciously pleased to dispense with his 
 further services, resulted in his resignation. 
 
 This, perhaps, was the commencement of the ebb-tide in 
 the fortunes of this extraordinary man. People in the City 
 began to ask inconvenient questions as to the cause of his 
 sudden retirement from an office which promised to a man of 
 his temperament so many future advantages. The excuses of 
 deference to the wishes of the Irish Roman Catholics, the 
 absorbing nature of private occupations, and others, which his 
 friends of the press were not slow in inventing for him, were 
 received with more than doubt. Inquiries were instituted by 
 the curious as to whether, after all, John Sadleir was the mil- 
 lionaire which he had hitherto been regarded, and the City 
 houses with which the companies and the institutions he was con-
 
 FACTS, FAILUBES, AND FBAUDS. 233 
 
 nectcd with did business became somewhat impertinently par- 
 ticular as to the securities upon which advances of casli were 
 required, and more than ordinarily exacting in their demands 
 of punctuality in remittances to meet drafts due. His retire- 
 ment from the Government was shortly after followed by his 
 resignation of the chairmanship of the London and County 
 Bank, and then ensued the desperate struggle to ward off the 
 terrible explosion which was inevitable the moment the frauds 
 and forgeries through which he had existed during the five 
 preceding years, were discovered. 
 
 The position in which he now found himself admitted of no 
 half measures. From the forgery of title-deeds, the wholesale 
 manufacture of fictitious shares, down to the circulation of 
 worthless paper, for which he found ready facilities in the gra- 
 titude of certain of his needy countrymen, who having been 
 assisted by him to appointments in London and elsewhere, 
 could scarcely refuse their acceptances for thousands, while 
 shillings would probably sum up the total of their property 
 to these and every kind of shift which the ingenuity of a man 
 with the felon's gaol and the convict settlement staring him in 
 the face could devise, he resorted to. At this time he might 
 have beeen observed daily in the City, endeavouring to raise 
 money by every or any expedient, and begging the indulgence of 
 Vrticle writers to withhold or contradict damaging para- 
 graphs which were calculated to precipitate the catastrophe 
 which nothing could avert. During the week ending the 16th 
 of February, 185G, the last of his existence, and just ten years 
 after he had made his first appearance in London, his whole time 
 was thus occupied. The drafts of the Tipperary bank had been 
 dishonoured at Glyn's the necessary remittances not having 
 been paid in. Of course this fact became known, and his exer- 
 tions to counteract its fatal consequences were unremitting. 
 Instead of resigning himself to despair, as many men would 
 have done, that marvellous energy of character which had
 
 234 TACTS, FAILURES, AKD FEAUDS. 
 
 marked his career from the first, seemed to rise with the occa- 
 sion. But the bankers refused to honour a single draft until 
 they had the money in hand ; public writers wanted something 
 more than his mere word before they would consent to proclaim 
 to the world the solvency of a man whom, on more than suffi- 
 cient grounds, they had hinted was, if not utterly bankrupt, 
 at least in a state of the most extreme pecuniary difficulties ; 
 and, to crown all, a proposal made to Messrs. "Wilkinson, Grur- 
 ney, and Stevens, who had frequently assisted him in raising 
 money, was so unreasonable, that their suspicions were aroused 
 as to the genuineness of certain deeds under the seal of the 
 Irish Encumbered Estates Commission, upon the security of 
 which they had already made considerable advances. Sadleir 
 detected the doubt which he had unwittingly raised, and he 
 was not mistaken in his expectations, that the firm would take 
 instant steps to satisfy themselves. He saw at once that the 
 game was up for the signatures to the documents were forged, 
 the official seal of the Court having been transferred from a 
 genuine deed and he at once made up his mind to anticipate 
 the denouement. He went home to his house in Gloucester 
 Square, Hyde Park, ordered tea, gave directions to his 
 servants, wrote three letters, and having secreted a large 
 quantity of essential oil of almonds, towards midnight went 
 out. 
 
 On Sunday morning, the 17th of February, as a labouring 
 man was crossing Hampstead Heath, immediately at the back 
 of the tavern known as Jack Straw's Castle, he discovered the 
 body of a gentleman, cold and stiff. He had evidently been 
 dead some hours, and was lying on the rise of a small mound, 
 in a spot which seemed to have been carefully selected. His 
 clothes were undisturbed ; by his side was lying a bottle la- 
 belled in several places " Essential Oil of Almonds," " Poison," 
 and still containing a small portion of the fatal liquid. At a 
 short distance from him was a silver cream ewer, empty, but
 
 FACTS, FAILURES, -VSD FRAUDS. 235 
 
 smelling strongly of the same drug. To mark his identity he 
 had -written his name and address on a piece of paper, which 
 was found in his pocket. He was removed to Hampstead 
 workhouse, where the inquest was held. There could be no 
 doubt of the cause of the suicide now. The gentleman who had 
 been despatched to Dublin, had discovered the forgery of the 
 deeds; the Tipperary bank had suspended payment, and the 
 enormous defalcations of the Sadleirs in reference to it were 
 beginning to be known ; the manufactured Swedish Railway 
 shares were being detected, and irregularities in connec- 
 tion with title-deeds, acceptances, and securities of all kinds 
 were crowding in on every side and from every quarter. There 
 was no room for question in the mind of the jury as to the 
 motive of the suicide, and they returned the only verdict which 
 under the circumstances they could return, viz.,felo de se. 
 
 Thus died, by his own hand, at the early age of forty-two, 
 John Sadleir, one of the greatest, if not the greatest, and at 
 the same time the most successful, swindler that this or any 
 other country has produced. That he was a man of high, 
 talents, few who knew him personally can doubt ; and had he 
 been content to apply those talents to honest courses, the 
 brilliant opportunities which opened for their exercise would 
 have enabled him to attain the highest position in the State, 
 But his impetuosity would not brook the labour, and the toil, 
 and the delay of gratifying his ambition in a legitimate manner. 
 He sought the short road to fortune, and, like all who have 
 travelled that delusive path, miserably failed. The amount of 
 misery which he caused is almost incalculable. In the Tippe- 
 auk, numbers of his poorer fellow-countrymen had been 
 induced, by specious representations of prosperity and false 
 accounts, to embark their all. Not three weeks before hia 
 death, lie had, in conjunction with his brother James, issued a 
 report and balance-sheet, representing the bank to bo in the 
 most flourishing condition, and declaring a dividend of six per
 
 236 PACTS, FAILURES, A^D FRArDS. 
 
 cent., with an additional bonus of three per cent. Upon the 
 faith of these periodical statements, numbers of farmers, 
 tradesmen, half-pay officers, and others in a similar condition, 
 became shareholders, and were in consequence utterly ruined. 
 Prom this establishment alone John Sadleir had, with the con- 
 nivance of his brother, contrived to abstract 200,000 ; and 
 the total defalcations of the bank, when it suspended payment, 
 amounted to 400,000. As chairman of the Royal Swedish 
 Railway Company, he issued false shares to the nominal 
 extent of 150,000, the whole proceeds of which he appro- 
 priated. What he obtained from other sources will probably 
 never be accurately ascertained, but the aggregate must be 
 something enormous. 
 
 And what is by no means the least singular part of 
 the affair is, that nobody has ever been able to form a con- 
 jecture of the manner in which the money thus fraudulently 
 obtained was dissipated. There was nothing ostentatious in 
 John Sadleir's habits, nor was he in any way extravagant in 
 his mode of living. He kept hunters but not a regular stud, 
 and scarcely ever participated in the pleasures of the table. 
 His whole time was occupied in his numerous business occu- 
 pations ; he appeared to be always making money, and never 
 spending it ; and even a day before his deabh he is known to 
 have received a considerable sum, the disposal of which 
 has never been thoroughly ascertained. The mystery which 
 hangs over the disappearance of the amounts his frauds 
 must have realized, has, no doubt, led to the numerous stories 
 that have been promulgated both in Ireland and America, that 
 the suicide was a sham, and that the body found on Harnp- 
 stead Heath was not Sadleir's, but one procured to personate 
 him, while he, during the excitement of the supposed self- 
 murder, effected his escape. Unless the witnesses on the 
 coroner's inquest were perjured, and the coroner himself was 
 in the conspiracy, this hypothesis is altogether impossible.
 
 PACTS, TAILUBES, AXD FBAUDS. 207 
 
 The identity was sworn to by his servant, the medical atten- 
 dant ; and the coroner, Mr. Wakley, who knew him well, and 
 had sat in the House of Commons with him, both being 
 members at the same time, subsequently bore public testi- 
 mony that the body upon which he held the inquest was 
 indeed that of John Sadleir. And if necessary the evidence 
 of one or two of his most bitter opponents, who examined the 
 corpse, could be produced, who concur in averring that there 
 could not be the least doubt in the matter. Up to the Satur- 
 day it is supposed John Sadleir had reason to believe that ho 
 would, some way or other, be enabled to stave off the evil 
 hour ; for, although the drafts of the Tipperary Bank had on 
 Thursday or Friday been returned by the London agents, 
 he had endeavoured to counteract the prejudice of the event 
 by obtaining insertion in the daily papers of an explanation, 
 stating that the irregularity arose from an error, and that 
 the payments in future would resume their regular course.* 
 
 * To illustrate the cool assurance of John Sadleir under the circum- 
 stances, it may be as well to give the actual conversation that passed in tho 
 office of one of the writers of a City article on the occasion. Even steeped 
 aa he was to his eyes in crime, he preserved admirable calmness, and 
 betrayed not the least apprehension. 
 
 Scene Lombard Street, hour about one, p.m. 
 
 John Sadleir (pale, cadaverous, but gentlemanly), introduced by a 
 friend and brother director of a Bank. Oh, there haa been some slight 
 mistake respecting the announcement of the drafts of the Tipperary Bank 
 having been refused over the way ; it is all set straight ; tho remittances 
 have been delayed passing through Hull, when they should lievc come 
 direct to London. Just please mention it, so that the fact may be known; 
 
 Party addressed. You are sure it is 'all right; because it will bo 
 awkward if there is any further difficulty. 
 
 Sadleir and his friend. It is all made straight j you can ask over 
 the way. 
 
 Parly addressed. You are sure there will bo no fresh hitcli. 
 
 Sadleir (placidly, but with great emphasis). I am sure there will bo 
 no further hitch. 
 
 The inquiry was made " over tho way ;" it was stated that tho drafts 
 had been provided for, and tho explanation as requested was afforded. But
 
 238 TACTS, FAILURES, A^D FEAUDS. 
 
 The subsequent difficulties which pressed upon him ; the 
 refusal of those with whom he had had extensive pecuniary 
 engagements to afford additional assistance, and the know- 
 ledge that his frauds could no longer be concealed, were suffi- 
 cient causes to oppress his mind, and tempt him to commit the 
 fatal act. At the last moment, therefore, when the dread 
 alternative opened fully upon him, he awoke to the enormity of 
 the crimes he had committed, and was visited with something 
 like compunction of conscience for the misery he had caused. 
 The letters he wrote to his parliamentary friends and his imme- 
 diate relatives, especially the one addressed to his brother's 
 wife, after he had returned home on the Saturday night, when 
 he resolved upon the suicide, lead to this opinion, and show 
 that, although his intellect had not become disturbed, he felt 
 poignantly the position in which he had, through his nefarious 
 and speculative career, placed himself. It is fully believed that 
 the aggregate amount of his defalcations and frauds will never 
 transpire. Several persons are believed to have suffered to a 
 severe extent, through the positive abstraction and exchange of 
 deeds, but as they are known to be in a condition to bear the 
 loss, they hesitate to admit the fact. Sadleir's own repre- 
 sentations were that he was worth at least 6,000 per annum ; 
 and it is estimated that an actual sum of between 250,000 
 and 300,000 must have passed through his hands while he 
 was connected with the London and County Bank, the Royal 
 Swedish Railway, the Carson's Creek Gold Mining Company, 
 and the other class enterprises with which he was associated. 
 Xo satisfactory trace of its absorption, as has before been 
 stated, can be found, and only one surmise remains, viz., that 
 
 the party entertained Ids suspicions, and meeting the friend of Saclleir late 
 in the day, he asked him if there was not something " doubtful" in the 
 business. The reply was, " Tfo, there cannot be ; the Bank has just 
 declared a dividend and bonus, and the report is most favourable." Two 
 or three days afterwards the explosion occurred, and then Sadleir and 
 his transactions appeared in their proper light.
 
 FVCTS. FATLUKE3, AND FBAUDS. 239 
 
 the greater proportion -was sunk at the Stock Exchange in 
 speculations disastrous to himself and those who were engaged 
 with him. Dark hints have hceu dropped, and curious sug- 
 gestions made, which would point to quarters not generally 
 suspected, although it is not improhable that satisfactory reve- 
 lations on this all-important point may yet take place. As 
 showing that he followed his designs out in a most practical 
 and business-like way, the discovery was made after his death, 
 of a number of real seals of the Encumbered Estates Court, 
 which, of course, would have been employed to assist in the 
 fabrication of deeds to meet his necessities for advances as 
 they arose, had it not been for the measures adopted by Messrs. 
 "Wilkinson, Stevens, and Co., and the precipitate collapse of 
 the Tipperary Bank. It is evident, before Sadleir determined 
 with strong nerve and studied preparation to ease himself from 
 his embarrassments, he had left no resource untried to secure 
 means by which to reduce his liabilities. He quitted the world 
 a bachelor, but that, if report speaks truly, was not his own 
 fault, for he had endeavoured to obtain the hand and fortune 
 of more than one wealthy Eoman Catholic heiress, through 
 whose money ho naturally hoped to retrieve his position, and 
 by diminishing the amount of his general indebtedness, to 
 obliterate the transactions which presented the most fearful 
 :;ony of his guilt.* But fortunately he did not succeed 
 in drawing within his toils either of the ladies to whom he 
 paid his court, and that fascination and punctilious business 
 demeanour which had so greatly ensured his admission to the 
 confidence of capitalists and others, failed to serve him, and 
 gam him attention, when he approached the gentler sex. 
 
 * The late revelations in the trial of the Tipperary Bauk verms the 
 Lontlon and County Bank show the estimate his brother held of his 
 veracity.
 
 240 TACTS, FAILURES, AND FBArDS. 
 
 THE SUICIDE OF ME. JOHN SADLEIR, M.P. 
 (Tlie Times, Monday, Feb. 18, 1856.) 
 
 The body of Mr. J. Sadleir, M.P., was found on Sunday morning, 
 February 17, 1S56, on Hampstead Heath, at a considerable distance from 
 the public road. A large bottle, labelled " Essential oil of bitter almonds,'' 
 and a silver cream-jug, both of which contained a small quantity of the 
 poison, lay by his side. The body was at once removed to the workhouse, 
 where it was seen by Dr. Nichol a few minutes afterwards. A powerful 
 odour of bitter almonds was perceptible at the mouth. He had, probably, 
 lain on the spot where he was found during the greater part of the night, 
 as the body was quite cold, and the rigor mortis completely established. 
 It appears that Mr. Sadleir left his house (11, Gloucester Square, Hyde 
 Park) about half -past eleven o'clock on Saturday night, and as yet nothing 
 further has been ascertained respecting his movements. The body has 
 been recognized by several friends of the deceased. Mr. Sadleir formerly 
 practised as a solicitor in Dublin with great success, and enjoyed a high 
 professional reputation. In 1847 he entered Parliament as member for 
 Carlow, and sat for that borough until the dissolution in 1855. Upon the 
 accession of Lord Aberdeen to the Premiership, Mr. Sadleir was offered, 
 and accepted, office as a Junior Lord of the Treasury, and he continued a 
 member of the administration for some months. In 1848, he became 
 chairman of the London and County Joint-Stock Banking Company, and 
 for several years presided over the affairs of that body with great ability. 
 Subsequently he vacated the chair, and, though his connection with the 
 company continued, he took no active part in its business. His occupa- 
 tion of the chair at the last general meeting, was simply an act of courtesy 
 towards his late colleagues in the direction. We have been informed that 
 he was a purchaser to a large amount of lauds sold in the Encumbered 
 Estates Court in Ireland, and that he was extensively connected with 
 various commercial undertakings of magnitude, but that he was under no 
 heavy liabilities to the banking company to which we have alluded ; and 
 that for the comparatively small account that remained open against him 
 at the time of his decease, the company was guaranteed by ample securities. 
 
 THE ISQfEST OX THE BODY. 
 
 On Tuesday, the 19th of February, Mr. Wakley, the coroner for Mid- 
 dlesex, and a respectable jury, inhabitants of Hampstead, opened an in- 
 quest on the body of Mr. John Sadleir, M.P. 
 
 Mr. William T. Manning, coroner of the Queen's Household and the 
 Verge, appeared on behalf of the relatives of the deceased, two of whom 
 were present namely, Mr. William Sadleir, his eldest brother, and Mr.
 
 PACTS, TAILUBES, A>'D FRAUDS. 2-11 
 
 Clement Sadleir, a younger brother. Several of the personal friends and 
 acquaintances of the deceased were also in attendance, including, among 
 other*, Mr. Francis Scully, M.P., Mr. Vincent Scully, M.P., Mr. Leonard 
 Morrough, of Dublin, Mr. J. H. Doyle, and Mr. Norris. 
 
 The deceased gentleman was known in public life as the representative 
 in Parliament, first of the borough of Carlow, and lately of Sligo, as a 
 Lord of the Treasury in the Government of Lord Aberdeen, and as the 
 Chairman of the London and County Bank. He was in the forty-second 
 year of his age, unmarried, and had in early life practised as a solicitor 
 in Dublin. 
 
 The jury proceeded to view the body, which lay in a shell in the dead- 
 house, and on their return 
 
 Joseph Elwiii was called, and deposed that he was the butler of the 
 deceased, and resided hi his master's house, 11, Gloucester Square, Hyde 
 Park .Gardens. He had seen the body, and identified it as that of Mr 
 Sadleir. He saw him last alive, about half-past eleven o'clock on Saturday 
 evening last, in the dining-room of his own house. He did not know what 
 time the deceased left the house, but it must have been between half-paat 
 eleven and a quarter to one o'clock, lie had previously to half-past eleven 
 gone twice into the dining-room to take away the tea-things, but his master 
 would not allow him to do so. At a quarter to one o'clock that night he 
 went to fasten the front door, but he did not do so, finding that his master 
 had gone out. On going into the dining-room, where his master had been 
 during the evening, he found that one of the candles had been put out ; 
 and on returning into the hall, he noticed the other extinguished, and 
 standing on the slab there. He also knew Mr. Sadleir had gone out, from 
 his hat and a thick heavy greatcoat, the latter of which he seldom wore, 
 having been taken away from the hall. The front door was shut, but he 
 did not interfere with it, as he knew his master was out, and could let 
 himself in with his latch-key. 
 
 Joseph Bate?, a labouring man, living at 7, Branston's Court, Ilamp- 
 stead, deposed to finding the body of the deceased, about twenty minutes 
 before nine o'clock on Sunday morning last, at the back of the Jack Straw's 
 Castle Tavern, beside a bog, about two hundred yards from the high road. 
 He was lying on his back, with his head bent backwards against a furze 
 bush, and his feet towards the edge of the bog. All his clothes were on 
 except his hat, which lay near to the body. He did not go nearer to tho 
 body at first than about twenty yards, until a policeman came, whom ho 
 had directed a man named Eudge, who was passing, to go for. On ap- 
 proaching the deceased with the police-constable and Budge, they found 
 near him a silver cream-jug (produced) and a bottle marked " poison." 
 [The bottle was here produced and identified. It had a glass stopper 
 covered with leather, across which the word "poison" was written in largo 
 
 H
 
 212 TACTS, FAILrHES, AXD 
 
 letters three times. The bottle itself, which was so large as to hold nearly 
 half a pint, was also labelled with the same word in different places, and 
 was inscribed, " Essential oil of bitter almonds," and with the name of the 
 chemist who supplied the poison, " John Maitland, 10, Chester Place, Hyde 
 Park Square."] He did not feel the ekin of the body at all, to know 
 whether or not it was cold. He saw the pockets searched by the police- 
 constable. [The constable, as will be seen, afterwards described their 
 contents.] The body was put on a stretcher, and taken to the workhouse. 
 No medical gentleman was sent for when the body was first found. He 
 saw no signs of violence or struggling about the spot, nor were the 
 deceased's clothes at all torn or disturbed. 
 
 Police-constable Hewson, 323 S, deposed to accompanying the previous 
 witness to see and remove the body about a quarter before nine on Sunday 
 morning. He saw nothing about the spot to indicate a struggle, except a 
 mark or two which the deceased appeared to have made with his heels. 
 The body was quite cold. They found on the person of the deceased sis 
 sovereigns, two half-sovereigns, a 5 note, 12s. Gd. in silver, some copper, 
 a white cambric pocket-handkerchief, a small pocket paper-knife, a latch- 
 key, a pair of gloves, a case containing two razors, a piece of paper, on 
 which was written " John Sadleir, 11, Gloucester Square, Hyde Park." 
 [The butler identified the writing on the paper as that of his master, and 
 also the rest of the articles as having belonged to him.] The cream-jug, 
 which had a few drops of the poison still in it, was lying near him, as if it 
 had dropped from his right hand. The bottle lay on his left side, with the 
 stopper out, and about a foot distant from it. The razors were also lying 
 in the case on his right side, and the piece of leather with which the 
 stopper of the bottle had been tied down was in his waistcoat pocket. Xo 
 medical man saw the deceased before he was taken to the workhouse ; but 
 Mr. Nichol, surgeon, saw it there. He (witness) found no letter or docu- 
 ment on the deceased, but the piece of paper bearing his name and address. 
 A few lumps of sugar were found loose in his coat pocket. 
 
 Mr. E. Eichol, surgeon, practising at Hampstead, said he saw the 
 body of the deceased at twenty minutes to ten o'clock, on Sunday morning 
 last, in the deadhouse of the workhouse. It was then quite cold, and the 
 limbs were rigid. There was a most powerful odour of the essential oil of 
 bitter almonds perceptible at the mouth. The eyes were glistening, and 
 quite life-like in expression. There was no froth at the mouth. But for 
 the smell of the oil of almonds, there was nothing to show that the unfor- 
 tunate gentleman had died of poison. The eyes retained their life-like 
 expression for several hours. He made the 2 } ost mortem examination of 
 the body on Monday evening, when it had undergone little or no change. 
 It bore no mark of external violence anywhere. There was some post 
 mortem congestion of the lungs, ro terioriy, and of the bronchial tubes.
 
 TACTS, FAILUBES, A>T> FBAUDS. 213 
 
 There was no valvular disease of the heart, but a thickening was perceptible 
 in the left ventricle. The right auricle of the heart was distended with 
 blood, and the left ventricle was empty. The only cavity that contained 
 blood was the right auricle. There was an odour of the essential oil of 
 almonds all over the body. The stomach contained about ten ounces of 
 matter, consisting mostly of undigested food. From six ounces of that 
 matter he took an ounce and a half of essential oil of bitter almonds by 
 distillation, and half an ounce simply by filtration. Embedded in the 
 coats of the stomach, and lying on it, were numerous black particles, per- 
 ceptible to the naked eye. On examining these with the microscope, lie 
 believed them to be powdered opium. Those particles were stuck all over 
 the mucous membrane, chiefly on the upper curvature, and were so nume- 
 rous as not to bo counted. The mucous membrane of the duodenum was 
 friable like that of the stomach, though not so much so, and its contents 
 showed the oil very evidently. The liver was healthy, but had a patch of 
 discolouration on it. The gall bladder was empty, and there was slight 
 congestion here and there throughout the smaller intestines. The kidneys 
 were congested, but otherwise healthy. The pupils of the eyes were 
 dilated. The brain and membranes were congested, but were otherwise 
 healthy, and exhibited no signs of inflammation whatever. There was an 
 effusion of serum at the base, slightly tinged with blood, to the extent of 
 from four to six drachms a large quantity certainly which might have 
 been thrown out in the act of death. There could be no doubt that the 
 effect of the essential oil of almonds was the cause of death. 
 
 Elwin, the butler, was recalled, and identified the cream-jug as that 
 which his master used at tea on Saturday evening. He added, in reply to 
 the Coroner, that Mr. Sadleir was quite alone when he left him at tea. He 
 had not seen the bottle before which had been produced to-day. He took 
 a bottle from the maidservant between nine and ten o'clock on Saturday 
 evening, which was wrapped up in paper. About five minutes before seven 
 o'clock on Saturday evening, when he was laying the cloth for dinner, his 
 master gave him a piece of paper, in his own handwriting, to take to Mr. 
 Maitland, the chemist. [This paper, which was produced, was written in 
 a bold flowing hand, and was exactly as follows : " Get from Maitlaud's a 
 bottle of the essential oil of bitter almonds ; I don't know the quantity 
 wanted, but but Kcnyon writes to me to bring 1 worth. Pay my bill 
 at Maitland's."] [Kenyon was stated, by a gentleman present, to be 
 the deceased's groom, and to have care of his stud of hunting horses at 
 Leighton Buzzard.] He went to Maitland's, but the assistant could not 
 give it him at that time. Ho asked the assistant what quantity of the 
 article a sovereign would purchase, and he replied about half a pint. Mr. 
 Sadleir had previously that evening asked him to clean two bottles, and 
 place tbcrn on the sideboard, which he did. He (witness) did not know it
 
 214 TACTS, FAILURES, A^D FRAUDS. 
 
 was poison that he had to get at Mr. Maitland's. He thought it was some 
 ingredient in a hair-wash which his master was going to mix in the two 
 bottles which had been placed on the sideboard. After nine o'clock Mr. 
 Sadleir rang the bell, and asked him if anything had come from Mr. Mait- 
 land's. Witness said there had not. Mr. Sadleir said he supposed Mr. 
 Maitland had not the article by him, and had to send out for it. Witness 
 said he had, for it had been sent for at seven o'clock. Mr. Sadleir wished 
 him to go for it, but witness got the kitchenmaid to go, as he had to attend 
 to the tea, asking her at the same to post a letter which Mr. Sadleir had 
 written to Mrs. Sadleir, in Ireland, his sister-in-law. She returned from 
 Mr. Maitland's in about half an hour with a bottle wrapped up in paper, 
 accompanied by a note, both which he took upstairs and laid by Mr. Sad- 
 leir's side on the table. Mr. Sadleir was then sitting with his back to 
 him and apparently reading, and did not speak to witness. He had lived 
 with the deceased upwards of eighteen months. The deceased was a tem- 
 perate and sober man. He only drank a glass or two of sherry with his 
 dinner. He had not of late noticed any change in the deceased's manner. 
 The deceased was much occupied in business. He had not complained of 
 his head at all, or of not being able to sleep, nor was he under medical 
 treatment. He came home unexpectedly to dinner on Saturday evening. 
 He seldom dined at home, but usually at his club. He left home in a cab 
 on Saturday morning, with a quantity of papers with him, as he was accus- 
 tomed to do. Before getting into the cab he returned to his room up- 
 stairs, as if he had forgotten something. Again, before he had left in the 
 cab many minutes, he returned, and went upstairs for a few moments. He 
 left in the cab again, and did not return until the evening. He had never 
 before made any attempt on his life to witness's knowledge. He always 
 spoke civilly to witness, especially of late, when witness had got used to 
 his ways. 
 
 Hannah Bishop, a woman of middle age, said I acted as kitchenmaid 
 to the deceased. I went to the shop of Mr. Maitland, the chemist, at the 
 request of the preceding witness, for a parcel on Saturday night last, be- 
 tween nine and ten o'clock. I saw Mr. Maitland's assistant, who asked me 
 if I was going to give it to Mr. Sadleir himself? I said I should give it to 
 the butler. He asked me again whether I was going to give it to Mr. 
 Sadleir. I said I never saw the gentleman (meaning Mr. Sadleir), but I 
 would give it to the butler. The assistant cautioned me particularly about 
 its being poison, and asked me not to let it lie about at all on any account, 
 but to take it up to Mr. Sadleir immediately. I gave it to the butler, and 
 did not hear anything more about it. When I went to Mr. Maitland's, I 
 took a letter to the post, which was given me by the butler. It was ad- 
 dressed " Mrs. Sadleir, Clonocody, Clonmel." I believe she was the de- 
 ceased's sister-in-law. I have lived three years in his service, but I very
 
 FACTS, FAILURES, AND FRAUDS. 215 
 
 seldom saw him. I had sometimes fetched pills from Mr. Maitlanu's for 
 Mr. Satlleir, but not laudanum or opium. 
 
 A gentleman present said, the letter to Mrs. Sadleir, being posted after 
 post hour on Saturday night, would not reach its destination until th ; s 
 (Tuesday) morning. 
 
 The Coroner then asked Mr. Manning if he had any evidence to offer ? 
 
 Mr. Manning said he had not, nor did he wish to interpose in any way 
 as to the evidence which the Coroner might think necessary to establish the 
 cause of death. 
 
 The Coroner said, nothing could be clearer than the cause of death. 
 Any inquiry after that was much to be regretted, seeing that it might ex- 
 tend to matters which might distress the feelings of relatives. He thought 
 the law in that respect was most unsatisfactory. The letter written by tho 
 deceased to his sister-in-law appeared to be a document that ought to be 
 produced, in the opinion of some of the jury near him. He (the coroner) 
 had no desire to see it. It was perfectly clear to him that the unfortunate 
 gentleman had died by his own act. Nothing could by any possibility be 
 plainer. It was much to be deplored that facility was afforded to him to 
 obtain the poison in the way he had done ; but, judging from his carrying 
 a couple of razors in his pocket, it was clear that if he had failed in destroy- 
 ing himself by taking or procuring the essential oil of almonds, he would 
 have done it with a razor. The only question for the consideration of the 
 jury was as to what was the state of his mind at the time he committed 
 the act. 
 
 A juryman said, it was with that view only that the jury wished to see 
 tho letter produced. 
 
 Mr. Manning said, Mr. Xorris, a legal gentleman, was present, who was 
 Mr. Sadleir till a la to hour on Saturday night, and probably the Coro- 
 ner would wish to have him called. 
 
 Tho Coroner said, it waa very desirable that that gentleman should give 
 ; -e, if he haJ any to tender. 
 
 31 r. Anthony Norris was then called, and, in reply to questions put by 
 the Coroner, said, I am a solicitor, practising at No. 2, Bedford Row, and 
 was intimately acquainted with the deceased. I saw him last alive, shortly 
 before eleven o'clock on Saturday night last, at his house. There was no 
 one ehe with us. I had no appointment with him, but I went up there to 
 BOO him, and was with him about half an hour. I had known hi:n since 
 1813, and had frequently transacted business with him. He was engaged 
 in several public concerns. Ho was Chairman of tho London and County 
 Bank, and of tho Eoyal Swedish Railway Company. I believe ho was atao 
 connected with several other companies, including an Irish bank, of \vhu-h 
 he was a director. He appeared oppressed by his undertakings. Latterly 
 he seemed rather haggard. During the last week particularly I had noticed
 
 246 PACTS, FAILURES, A^D PEAUDS. 
 
 a great change in bis nppearance. He did not complain of his head, but I 
 have noticed him put his hand to his head as if he was oppressed. He 
 appeared to be quite borne down by the extent of his business, and particu- 
 larly by some occurrences which took place with reference to his affairs last 
 week. They were losses and pecuniary embarrassments which had lately 
 come upon him, and it was about these that he talked to rne during our 
 interview on Saturday night. During the interview I noticed a peculiarity 
 in his manner. His eyes were bloodshot. He was very restless, and evi- 
 dently not in his usual temperament when I saw him. I had not seen him 
 in such a state before, at least not to anything like the same extent. He 
 \vas always cool and collected until within the last few clays. From Wed- 
 nesday last, inclusively, I had seen him every day, and I think I saw him 
 on Tuesday also. I was not his solicitor. I believe he had various solici- 
 tors, and I have understood that Mr. Gurney, of No. 2, Nicholas Lane, was 
 one of them. Mr. Gurney and his partners I know transacted business 
 with him on Saturday. His life was insured some years ago. He told me 
 on Thursday or Friday last that it was insured. I know it was insured, 
 for I once paid a premium upon the policy. [Mr. Manning. It was insured 
 in one office for 5000.] He told me he had life policies, but he did not 
 say to what amount on the whole. When I left Mr. Sadleir about half- 
 past three on Saturday afternoon he made an appointment with me for the 
 next (Sunday) morning, at eleven o'clock. He said he would rather I 
 would not call on him that (Saturday) evening, because he wanted to col- 
 lect his papers, and to be alone. In consequence, however, of receiving a 
 letter from Ireland after leaving him on Saturday afternoon, which con- 
 cerned him, I went and saw him again that evening. He seemed surprised 
 when I went in, and was walking about the room, which was very unusual 
 with him. I thought I perceived a very great redness and peculiarity about 
 the eyes, as if he had been weeping. I called next morning to keep my 
 appointment with him at eleven o'clock, and then I learnt for the first time 
 that he was dead. The communication I made to him on Saturday night 
 was not of a distressing character. It had reference to the events that had 
 pressed upon him during the week, and that was the cause of my going to 
 see him. I found, on going to his house on Sunday morning, that he had 
 left a letter for me in the hall, which Mr. Nichol, who had gone there before 
 me, had taken to my private residence after I left home. It was written 
 by Mr. Sadleir, and dated Saturday night. 
 
 The Coroner Have you brought that letter with you ? 
 
 Witness I have not. 
 
 The Coroner Why did you not bring it ? 
 
 Witness I forgot it. 
 
 The Coroner appeared to think the omission remarkable under the cir-
 
 FACTS, FJLlLUBES, AND FRAUDS. 247 
 
 cumstances, and asked if witness had really forgotten the letter, or whether 
 he had any reluctance to produce it ? 
 
 Witness said, he had been much affected ever since the death of Mr. 
 Sadleir, and had really forgotten to bring the letter. He did not know 
 whether it was written after he left the deceased on Saturday night. IIo 
 found it on returning to his private residence, about half-past eleven on 
 Sunday morning. 
 
 By Mr. Manning In the course of Saturday afternoon I made a remark 
 in Mr. Gurney's office in reference to Mr. Sadleir s appearance, and to some 
 reverses that had come suddenly upon him. The remark was, that I should 
 not be surprised if Mr. Sadleir were to shoot himself. I said that to a Mr. 
 Stevens about two o'clock on Saturday afternoon. 1 was acting profes- 
 sionally for Mr. Sadleir in one matter at the time of his death. The reason 
 I made that remark was, that Mr. Sadleir was a man of extraordinary clear- 
 ness and strength of mind, and my impression was that these reverse?, 
 coming suddenly upon him, as they did on Wednesday morning last, his 
 mind would break down r.t once. I was told last week that his losses 
 were very severe. The subject was discussed in my office, and he ad- 
 mitted it. 
 
 Mr. Manning said he had to contend that tho letter written by the 
 deceased to Mr. Korris would be a confidential communication between 
 solicitor and client. 
 
 The Coroner intimated that he would consider the point. 
 
 The butler was recalled, and stated that on Sunday morning, when he 
 saw his master had not come home, he found three letters on the slab in 
 the hall, all addressed to Mr. Eobert Keating, M.P. for Waterford, at 
 Shamrock Lodge, Clapham, accompanied by a paper in Mr. Sadleir's hand- 
 writing, to the effect that if he was not at home by nine o'clock on Sunday 
 morning, he (witness) was to deliver them. At nine o'clock on Sunday 
 morning, his master not having come home, he sent a messenger with the 
 letters to Mr. Keating at Clapham. There was also a letter addressed to 
 Mr. Xorris left on tho slab in the hall. 
 
 Joseph Westrup deposed that he was an assistant to Mr. Maitland, 
 chemist, 10, Chester Place, Hyde Park Square. He had heard tho evidence 
 of the butler and kitchenmaid, which was in all respects correct. Ho 
 wished to add that he wrote a note to Mr. Sadleir, and sent it with the 
 kitchenmaid, when she took away tho bottle containing the oil of bitter 
 almonds. As tho original letter did not appear to bo forthcoming, ho 
 wished to read a copy of it which ho had kept. It was as fol- 
 lows : 
 
 "As the poisonous qualities of the essential oil of almonds are very 
 great, Mr. Maitland would be obliged to Mr. Sadleir not to allow it to pass
 
 248 FACTS, TAILUBES, AND FBAUDS. 
 
 into the hands of inexperienced persons, who may perchance be unaware of 
 the danger in using it, or allow it to lie about unprotected. 
 " 10, Chester Place, Feb. 16, 1856." 
 
 The Coroner said it was a pity that such articles should be sold, even 
 by medical men. 
 
 Mr. Maitland remarked that the essential oil of bitter almonds was 
 sold by erery confectioner in the kingdom. 
 
 The Coroner. A pleasant reflection for those who eat confectionery. 
 (A laugh.) Some custards that I have seen I know have contained the 
 essential oil of bitter almonds in poisonous quantities. 
 
 Witness continued to say he had been in the habit of supplying Mr. 
 Sadleir with medicine occasionally, but not before with the essential oil of 
 bitter almonds ; and that he should not have furnished it on Saturday 
 night last, had he not received an application for it in that gentleman's 
 own handwriting. 
 
 The Coroner then ordered the room to be cleared, and on the read mis- 
 sion of the public, after an interval of a few minutes, he said the jury had 
 unanimously expressed a wish that the inquiry should be adjourned, in 
 order to afford time for the production of the letters written by the de- 
 ceased on the night preceding his death, and any further evidence that 
 could be adduced to show the state of his mind at that time. They wished 
 him to say, at the same time, that, in making that request, they had no 
 wish to go unnecessarily into the private or family affairs of the unfor- 
 tunate gentleman, or to cause any pain to his surviving relatives. 
 
 Mr. Manning said the letters written to Mr. Keating would be in the 
 nature of family affairs, as that gentleman was a relative of Mr. Sadleir. 
 
 The Coroner admitted that the production of the letters might be 
 attended with some difficulty ; but the jury were only anxious to have 
 some evidence which might throw light on the state of the deceased's 
 mind at a time shortly before his death, and when the letters in question 
 were produced they would form their opinion as to whether it was de- 
 sirable that they should be put in and appear on his notes. 
 
 Mr. Manning said he was quite unaware of the contents of the letters 
 in question, and he supposed when they were produced the Coroner would 
 peruse them in the first instance, and then confer with the jury as to the 
 desirability, or otherwise, of reading them in open court. 
 
 The Coroner said that those letters were written at a late hour on 
 Saturday night, and it was essential that they should be produced to show, 
 if possible, the state of mind of the deceased at that time. At the same 
 time, he thought inquiries into family and private affairs in cases of this 
 kind were highly mischievous, and he trusted the day was not far distant 
 when the law would be altered in that respect. 
 
 At the request of Mr. Manning, Mr. "VYakley gave an order for the
 
 FACTS, IMILTTHES, AJfD FBATTDS. 249 
 
 interment of the body of the deceased, and the inquest was adjourned until 
 Monday next, at eleven o'clock. 
 
 THE ADJOTJBNED INQUEST. 
 
 On Monday, the 25th of February, at eleven o'clock, Mr. \Vnkley, the 
 coroner for Middlesex, and the jury resumed, at the workhouse in Hamp- 
 steaol, the inquest adjourned from Tuesday last, on the body of Mr. John 
 Sadleir, M.P. for Sligo, who was found dead on Hampstead Heath on tho 
 morning of Sunday week, under circumstances which left no doubt that 
 he had died by his own hand. It will be recollected that the inquest was 
 adjourned at the request of the jury, to allow time for the production of 
 certain letters written by the deceased on the night preceding his deatli to 
 Mrs. James Sadleir, his sister-in-law, in Ireland, Mr. Robert Keating, M.P. 
 for Waterford, one of his most intimate friends, and Mr. Norris, a solicitor 
 in Bedford Row, who had also been on terms of intimacy with him ; which 
 letters, it was expected, would throw some light on the state of mind of the 
 deceased almost up to the very time when he committed the act of self- 
 destruction. 
 
 Mr. William T. Manning, coroner of the Queen's Household and the 
 Verge, was again in attendance on the part of the relatives of the deceased, 
 some of whom were present, as were also several of his personal acquaint- 
 ances and others with whom ho had been in the habit of transacting 
 business. 
 
 Mr. Manning, addressing the coroner, said he should state shortly the 
 course which it was proposed to pursue. The letters which the jury had 
 expressed a wish to see at their last sitting were now in court, in pur- 
 suance of the summons of the coroner. Mr. Keating was in attendance, 
 and would produce the letters written by the deceased to him on the night 
 preceding his death, and also the letter written by the deceased to him on 
 that night to Mrs. James Sadleir, his sister-in-law, in Ireland. Mr. K orris 
 was also present, and would produce the letter written by tho deceased to 
 him on the same evening. Ho (Mr. Manning) proposed to hand them to 
 the coroner, and it would be for him and tho jury to deal with them as 
 they thought right. Under ordinary circumstances ho should have con- 
 tended that those letters, written under such peculiar circumstances, ought 
 to have been excluded from the public ; but, looking to the serious naturo 
 of this case, he was instructed to say, on behalf of the family of tho de- 
 ceased, that they had no wish that anything calculated to throw light on 
 the inquiry should in any way bo concealed, and that it was their desire 
 that an open and complete explanation of all the circumstances should bo 
 made, so far as they were concerned. As regarded tho letter to Mr. Norris, 
 he would state the course that gentleman intended to take. That was a 
 letter written under peculiar circumstances
 
 250 TACTS, FAILURES, AND 
 
 The Coroner (interrupting) said Mr. Noi-ris rmist, of course, be subject 
 to the rule of court, and must not propose to himself any course of conduct. 
 His course of conduct must be prescribed for him. He believed Mr. Norris 
 had better be called first. He (the Coroner) would look over the letters 
 before they were read in open court, and then determine whether they 
 should be openly read or not. He was quite certain that was the course 
 which ought to be adopted in a case of this kind, and he must take upon 
 himself the responsibility of ifc. 
 
 Mr. Manning acquiesced in the suggestion of the Coroner, and 
 Mr. Anthony Norris, solicitor, of No. 2, Bedford Kow, a witness ex- 
 amined at the previous sitting of the court, was re-called, and, in reply to 
 questions put by the Coroner, said, I left Mr. Sadleir a little after eleven 
 o'clock on the night of Saturday, the 16th inst., preceding the Sunday 
 morning on which he was found dead. I had been with him on that occa- 
 sion about half an hour. While I was with him he received a telegraphic 
 message from Dublin, which he showed to me. I have not got that mes- 
 sage with me. It was a reply to a telegraphic message which he had sent 
 from the Keform Club in a former part of that evening. I don't think the 
 receipt of the message made any great impression on his mind. He read 
 it, and then threw it over to me to read. The letter, a copy of which I am 
 about to produce, is in the handwriting of the deceased. The original letter 
 refers to the names of parties unconnected with this inquiry, and its pro- 
 duction before the public might cause injury to them. I am acting under 
 the advice of counsel, and I wish to hand in an exact, literal copy of that 
 letter, with the omission merely of the names of those parties. 
 
 The Coroner said he should require to see the original. (It was handed 
 to him by the witness, and he read it privately.) There were names of 
 persons, he continued, addressing the jury, in that letter who were stated 
 by the deceased to have been grievously injured by his acts, and it would 
 be still greater injury to those unfortunate persons to have their names 
 made public. He should therefore take upon himself the responsibility of 
 not making them public, for nothing could be more undesirable. Several 
 of them were said to have been ruined by his villany. The letters would 
 therefore be read by the witness, omitting merely the names of those 
 persons. 
 
 Mr. Norris, the witness, then read the letter, which was as follows, 
 omitting the names : 
 
 "Saturday Night. 
 
 tc I can not live I have ruined too many I could not live and see 
 their agony I have committed diabolical crimes unknown to any human 
 being. They will now appear, bringing my family and others to distress 
 causing to all shame and grief that they should have ever known me. 
 
 " I blame no one, but attribute all to my own infamous villany. ,
 
 PACTS, FAILURES, AVD FRAUDS. 251 
 
 , , , , , , and hundreds of others ruined by my 
 
 villany. I could go through any torture as a punishment for my crimes. 
 No torture could be too much for such crimes, but I can not live to tea 
 the tortures I inflict upon others. 
 
 " J. SADLEIE. 
 " Telegraph to , and otherwise when you read this." 
 
 Witness added, in reply to the Coroner, that the deceased told him 
 during their interview on the Saturday night that some shares had been 
 sent up to his house, and he had them there that evening. He acted for 
 the deceased professionally in one trust in which he was concerned, and 
 was not otherwise his solicitor. 
 
 Mr. Robert Keating, M.P. for Waterford, was next called. He said, 
 in answer to the Coroner, I reside at Clapham, Surrey, and was intimately 
 acquainted with the late Mr. Sadleir. On Sunday morning, the 17th inst., 
 I received two letters addressed by him to me. I saw him last in the City 
 on the Saturday, about five o'clock, the evening before his death. I saw 
 him on business at No. 2, Nicholas Lane, the offices of Messrs. Wilkinson, 
 Gurney, and Stevens. He exhibited considerable excitement in conse- 
 quence of the critical position of the Tipperary Joint-Stock Bank. I was 
 with him about half an hour. I did not hear that he had been made aware 
 then of any gentleman going to Dublin. I heard in the morning that ono 
 of the firm of Wilkinson, Gurney, and Stevens was going over to Dublin, 
 but I don't recollect that Mr. Sadleir's name was mentioned in connection 
 with that visit. I have the letters by me which Mr. Sadleir wrote to me 
 on the Saturday night. In justice to myself I would say it is painful to 
 me to produce them, inasmuch as I consider them private and confidential. 
 
 The Coroner said he regretted as much as any one the necessity for 
 their production ; but in all probability they were written after eleven 
 o'clock on the night preceding his death, and were probably his last acts 
 before that of self-destruction. It was therefore highly desirable that they 
 should be produced, seeing that they might throw some light on the state 
 of mind of the deceased at that time. 
 
 Mr. Keating said he should hand them in to the Coroner, and he would 
 make what use of them ho thought right. 
 
 The letters were then given to the Coroner, and, having been read by 
 him in private, he asked if the Tipperary Bank had stopped payment, to 
 whi<-h Mr. Keating replied in the affirmative. 
 
 The Coroner said if the Tipperary Bank had not foiled, he should 
 certainly not have allowed the letters, some of which contained references 
 to that bank, which would otherwise have been injurious to it, to be read. 
 
 Mr. Keating then read the letters written to him by the deceased as 
 follows, the punctuation and the words in italics being the deceased's 
 own :
 
 252 FACTS, FAILURES, A>*D FEAT7DS. 
 
 " Dear Robert, James sent me over his title deeds of Coohammick and 
 Kilconnell I have not used these deeds in any way. I gave J. Gurney a 
 letter from James, intrusted to me by him which J. Gurney had sent to 
 him This letter can not be acted on by J. Gurney without my brother's 
 express authority. " JOHN SADLEIE. 
 
 " 16 Feby 56. 
 
 " R. Keating, Esq., M.P. 
 
 " T. Uzielli has a bank bill, 2000, on which nothing is due. It should 
 be at once cancelled If on Monday the bank is to be saved, 8200 must 
 be paid to East Kent Railway for 2 Orders 6200 and 2000 2500 
 must be paid in to Glyn's to meet order at sight issued to-day at Carrick. 
 Gurney knows the orders falling due on Tuesday. All are advised save the 
 one for 6200 my favour. This must be taken up on Monday not being 
 advised I can not live. " J. S." 
 
 That letter contained the following telegraphic message : 
 
 " Forwarded from Dublin station, and received at the Strand station, 
 February 16, 1856. 
 
 "From James Sadleir, 30, Merrion Square (South), Dublin, to John 
 Sadleir, Esq., M.P., Reform Club, Pall Mall, London. All right at all the 
 branches only a few small things refused there. If from twenty to thirty 
 thousand over here on Monday morning all is safe." 
 
 Witness (to Mr. Manning) said he found, on applying to Mr. Uzielli, 
 that nothing was due upon the draught mentioned in the letter which had 
 just been read, and that that gentleman had anticipated the request to have 
 it cancelled. The " J. Guruey" named in the letter was lately one of the 
 firm of Wilkinson, Gurney, and Stevens. 
 
 The Coroner said, in the letter which the witness would next read 
 names were given of parties who were stated by the writer to be innocent. 
 One of the gentlemen so referred to was in the room, and he (the Coroner) 
 should certainly not allow his name to be read if he objected to it. 
 
 Witness then read the letter as follows, Mr. Xorris, to whom allusion 
 was made by the Coroner, having waived all objection to his name being 
 read in public : 
 
 " 11, Gloucester Terrace, 16 February, 1856. 
 
 " Dear Robert To what infamy have I come step by step heaping 
 crime upon crime and now I find myself the author of numberless crimes 
 of a diabolical character and the cause of ruin and misery and disgrace to 
 thousands aye to tens of thousands. 
 
 " Oh how I feel for those on whom all this ruin must fall I could bear 
 all punishments but I could never bear to witness the sufferings of those
 
 FACTS, FAILURES, AST) FHAtTDS. 
 
 011 whom I have brought such ruin It must be better that I should not 
 live. 
 
 i one has been privy to ray crimes they sprung from my own 
 cursed brain alone I have swindled and deceived without the knowledge 
 of anv one Stevens and Norris are both innocent and have no knowledge 
 of the fabrication of Deeds and forgeries by me and by which I have sought 
 to go on in the horrid hope of retrieving. 
 
 " It was a sad day for all when I came to London. 
 
 " I can give but little aid to unravel accounts and transactions. 
 
 " There are serious questions as to my interest in the Grand Junction 
 and other undertakings. 
 
 ' Much will be lost to the creditors if these cases are not fairly treated. 
 
 " The Grand Junction the East Kent and the Swiss Railways the Rome 
 line the Coal Co are all liable to be entirely lost now so far as my assetts 
 are concerned. 
 
 " I authorize you to take possession of all my letters papers property 
 &.c &.c in this house and at Wilkinsons and 18 Cannon Street. 
 
 " Return my Brother his letters to me and all other papers The prayers 
 of one so wicked could not avail or I would seek to pray for those I leave 
 after me and who will have to suffer such agony and all owing to my crimi- 
 nal acts. 
 
 " Oh that I had never quitted Ireland Oh that I had resisted the first 
 I'.ttempts to launch me into speculations. 
 
 " If I had had less talents of a worthless kind and more firmness I 
 have remained as I once was, honest and truthful and I would have 
 livi-d to see my dear Father and Mother in their old age I weep and weep 
 now but what can that avail. " J. SADLEIB. 
 
 " Robert Keating, Esq., M.P., 
 Shamroque Lodge, Clapham." 
 
 The reading of tlus letter produced a great sensation in court. The 
 M himself was much affected, and when he came to the touching 
 reference by the deceased to his aged father and mother, his emotion became 
 BO great that he waa obliged to pause till it had subsided. 
 
 Witness proceeded to say that he had applied to Mrs. James Sadleir for 
 the letter written by the deceased to her (his sister-in-law) on the niijlit 
 preceding his death. He would read that lady's letter if the Coroner 
 wished it. 
 
 The Coroner thought it desirable. 
 
 Witness read 
 
 Dublin, Feb. 23, 1856. 
 
 " Dear Mr. Keating. I only received your letter on Wednesday, the 
 2<"hh inst., here this morning. I now enclose you the letter I received 
 from poor unfortunate John Sadleir. It may throw some light on the state
 
 254 TACTS, FAILTJEES, AND TEATTDS. 
 
 of his mind at the time he wrote it. As you will perceive, he neither 
 addresses me in his usual manner, nor even adds his signature. 
 " Please be careful of the enclosed letter, and return it to me, 
 " Believe me yours sincerely, 
 
 " EMMA SADLEIE. 
 
 " Eobert Keating, Esq., M.P., 21, Lombard 
 Street, London." 
 
 The enclosure, -which witness said was in the handwriting of the de- 
 ceased, was as follows : 
 
 " James is not to blame I alone have caused all this dreadful ruin. 
 
 " James was to me too fond a Brother but he is not to blame for being 
 deceived and led astray by my diabolical acts. 
 
 " Be to him at this moment all the support you can. Oh what would 
 I not suffer with gladness to save those whom I have ruined. 
 
 " My end will prove at least that I was not callous to their agony." 
 
 "Witness, in reply to the Coroner, said, in compliance with the deceased's 
 request, he had taken possession of Ms letters and property, except the 
 papers which he left at Mr. "Wilkinson's, of which Mr. Morrough, solicitor, 
 of Denmark Street, Dublin, had taken the care. 
 
 Mr. Josiah Wilkinson, of the firm of "Wilkinson, Gurney, and Stevens, 
 solicitors, 2, Nicholas Lane, said The deceased came to me on the morning 
 of Saturday preceding his death, and suggested that I could raise some 
 money with the view of assisting the Tipperary Bank. He showed 
 me some telegraphic messages he had received from Ireland on the subject 
 of their wants. He had several schemes by which he thought I could assist 
 him in raising money ; but, after going into them, I told m'm I could not 
 help him, the schemes being such as I could not recommend or adopt. He 
 then became very excited, put his hand to his head, and said, " Good God, 
 if the Tipperary Bank should fail the fault will be entirely mine, and I 
 shall have been the ruin of hundreds and thousands." He walked about 
 the office in a very excited state, and urged me to try and help him, be- 
 cause, he said, he could not live to see the pain and ruin inflicted on others 
 by the cessation of the bank. The interview ended in this, that I was un- 
 able to assist him in his plans to raise money. He had not been in the 
 habit of coming into my office for a considerable tune until a few days 
 before his death, we having had some difference. My partner, Mr. Stevens, 
 went to Dublin that (Saturday) evening, at my suggestion, with a security 
 or deed belonging to me, which I wanted registered there. I should state 
 that Mr. Sadleir has written to me from tune to time to pay sums of money 
 for him, which I have done, and some of which he had repaid me. The 
 money, notwithstanding, which I had advanced for him at length became 
 so large in amount, that I asked him to give me a security for it, which he 
 did. About six weeks before he died I remembered that the security was
 
 FACTS, FAILUBES, AND FBAUDS. 255 
 
 not regi.-tereil, anil, when 1 found the Tipperary Bank was in difficulty, I 
 determined to have it registered. It was with that view that I requested 
 ;ner to take it to Dublin. On arriving there he found it to be a 
 . The security he lodged with me purported to be a deed given on 
 the purchase of an estate in the Encumbered Estates Court. It was signed 
 of the commissioners of that court and by two attesting witnesses 
 in two different parts of the deed, and not a single signature was genuine. 
 (Sensation.) It had a genuine seal of the Encumbered Estates Court 
 attached to it, and the commissioners themselves admit the seal to be 
 genuine. That seal might have been transferred from some other genuine 
 deed to the spurious one, because the seal of the court is not impressed on 
 the document or in wax, but on a large wafer, and attached to it. There 
 is such an estate as the deed purports to convey to me. I have heard that 
 a large sum of money was given to the deceased in my office on the Satur- 
 day before he died. I have not heard anything of it since. It is not a 
 matter of which I have any personal knowledge. I cannot say who told 
 me of that circumstance, there have been so many rumours about the 
 matter. 
 
 The Coroner said the witness might perhaps be aware that, in cases of 
 this kind, an inquiry into property was a legitimate portion of the inves- 
 tigation, and might be carried infinitely further than he had yet carried 
 this inquiry. 
 
 "\Vitneaa repeated that he knew nothing of his own knowledge of the 
 matter to which the Coroner referred. Mr. Sadleir came in and out of his 
 - j's) office once or twice on the Saturday, and every time he saw him 
 he was in the greatest possible excitement. He (witness) attributed hia 
 death to his excitement about the Tipperary Bank, and to his knowledge 
 that he (witness) was about to send his deed over to Dublin for regis- 
 tration. A great many rumours were afloat about forged deeds, but he 
 (witiu-ss) knew of no other forged deed than his own. Several of Mr. Sad- 
 leir's deeds liad, from time to time, passed through his hands to persons 
 who had advanced money upon them ; but he (witness) had no reason to 
 believe that any one of those deeds was not genuine. He did not think 
 there was a single person who had the deceased's confidence. He was a 
 most reserved man. It was extremely difficult to get any information from 
 him beyond what he chose to impart. He believed Mr. Sadleir had written 
 the letters which had been produced under great excitement. Ho (witness) 
 knew much of his affairs, and he believed there was much in those L tiers 
 that was not correct. 
 
 The Coroner said that statement would give rise to a most important 
 question ; and he asked Mr. Manning, as the representative of the family 
 of the deceased, if he was prepared to show that Mr. Sadleir' s own state-
 
 256 TACTS, FAILTJKES, AND FEATJDS. 
 
 ments as to his forgeries and crimes, and the ruin and misery he had 
 heaped upon others, were delusions. 
 
 Mr. Manning replied that he was not. All the information in his pos- 
 session was now before the Court. 
 
 The Coroner said if Mr. Manning had been prepai-ed to show that, the 
 testimony would be most important. The failure of the Tipperary Bank 
 was a reality, as was also the forged deed, but they had had no evidence of 
 any other crimes committed by the deceased. 
 
 Mr. Keating said up to that moment no document appeared to hare 
 turned up to bear out the deceased's statements of his forgeries, except 
 that of Mr. Wilkinson. What might hereafter be discovered it was im- 
 possible to say. 
 
 Mr. Norris here stated that Mr. Gurney had told him that he gave 
 Mr. Sadleir 13,000 in bank-notes before he left the City on the Saturday 
 afternoon before his death. (No trace of this sum has since been dis- 
 covered.) 
 
 Mr. Keating said the deceased had told him there was a 1000 note 
 among his money, but that had not been found. 
 
 The Coroner said it was important to know whether the statements of 
 Mr. Sadleir respecting himself were founded in fact. Had he committed 
 the crimes and oifences which he imputed to himself? If he had not, the 
 jury could scarcely have any hesitation in concluding that he was a man of 
 unsound mind, and acting under delusions at the time he destroyed him- 
 self. He was prepared to adjourn the inquiry for the purpose of obtaining 
 further testimony on that point if the jury or the friends of the deceased 
 desired that he should do so. The question of property was an exceedingly 
 important one in this case, because if Mr. Sadleir had destroyed himself 
 while of sound mind he had committed self-murder, and his property, what- 
 ever it might be, would be forfeited to the Crown. The deceased said he 
 had been guilty of numberless crimes of a diabolical character, and the 
 cause of ruin, misery, and distress to thousands and tens of thousand of 
 persons. After looking at the evidence with the greatest possible care and 
 attention, he (the Coroner) confessed he could see, up to this point, no 
 signs of insanity in the deceased whatever ; but if it should be ultimately 
 proved that the letters which had been put in were written under the de- 
 lusion that he had committed oifences which, in reality, he had not com- 
 mitted, that would be conclusive evidence that he was a man of unsound 
 mind. Under those circumstances he thought it would be desirable to 
 adjourn the inquest for another week. The Crown, with regard to pro- 
 perty in such cases, united the powers of the Court of Chancery and the 
 courts of common law. There was hardly, in fact, any power more potent 
 or more pungent than that which the Crown possessed in the case of
 
 FACTS, FAILURES, A>'D IT.AUDS. 2-">7 
 
 persons who had committed the crime otfeio de se. Except on the hypo- 
 thesis whieh had been suggested, he really could see nothing in the evi- 
 .-o far as it had gone, which could lead to the conclusion that the 
 deceased was a man of unsound mind at the time he destroyed himself, 
 i ; hose circumstances, he thought it due to him and his family, and 
 
 to the interests of society at large, that an opportunity should bo given for 
 further inquiry. 
 
 The inquest was then adjourned until Tuesday, the llth of March, at 
 eleven o'clock. 
 
 THE SECOND ADJOUBNMENT. 
 
 On Friday, the llth of March, at eleven o'clock, the inquest on the 
 body of Mr. John Sadleir, late member for Sligo, adjourned from the 25th 
 ult., was resumed at the workhouse in Hampstead, before Mr. Wakley, the 
 coroner for Middlesex, and the jury. 
 
 It will be remembered that, towards the close of the last sitting of the 
 Court, after the letters written by the deceased in the evening preceding his 
 death had been read, in which he repeatedly charged himself with the com- 
 mission of diabolical crimes, the recollection of which, he said, made it impos- 
 sible for him to live, Mr. Josiah Wilkinson, a solicitor, in Nicholas Lane, 
 with whom Mr. Sadleir had been long on terms of intimacy, and had often 
 transacted business, and in whose office he was several times on the Satur- 
 day before his death, stated that, from his knowledge of the deceased and 
 his affairs, he did not believe he had committed any crime which justified 
 the strong language which Mr. Sadleir had applied towards his own 
 conduct. Mr. Wakley, the coroner, thereupon suggested, that if the 
 statement made by Mr. Wilkinson could be borne out by evidence, it 
 would be material for the jury to consider whether or not, the deceased, in 
 BO characterizing hia conduct, was acting under some delusion or halluci- 
 nation, from which it might be fairly inferred that he was not of sound 
 mind when he committed the act of self-destruction. The coroner, at the 
 same time, expressed a strong opinion that, so far as the evidence had gone, 
 he could find nothing in it to justify the conclusion that the deceased was 
 insane at the time he took away his own life. The inquiry was even- 
 tually adjourned until this date, to afford time for the production of evi- 
 if any such there might be, calculated to support the belief of Mr. 
 Wilkinson, or otherwise. 
 
 Mr. W. T. Manning, coroner of the Queen's Household and thcVcrgo, 
 
 was again in attendance on behalf of the relatives of the deceased. Mr. 
 
 Keating, M.P. for Waterford, and Mr. Anthony Norris, solicitor, 
 
 of Bedford Bow, witli both of whom Mr. Sadleir held intimate relations, 
 
 i.-o present. There was a considerable number of other persons in 
 
 >m during the proceedings. 
 
 S
 
 258 PACTS, rAirunES, A^D FEATTDS. 
 
 The Court having been formally constituted. 
 
 The Coroner asked Mr. Manning if he had any more witnesses to call. 
 
 Mr. Manning said he had not ; but there were some documents to which 
 he should call the attention of the Court presently. He would first state, 
 in reference to questions asked at their last sitting, as to a sum of money 
 paid to Mr. Sadleir on the Saturday preceding his death, that he had since 
 made every inquiry in his power, from persons likely to have any knowledge 
 of the matter, vrith the view of ascertaining the disposition of that sum of 
 money. He held in his hand the particulars respecting the notes handed 
 to Mr. Sadleir on that day, from which it appeared that the amount paid 
 to him was 1384, and it was made up of Bank of England notes for 
 1000, 300, 50, 20, and 10, and the rest in cash. He (Mr. Manning) 
 had inquired at the Bank of England last night, and found that none of 
 those notes had then been presented for payment. The Court would 
 recollect that the evidence of Mr. "Wilkinson, at their last sitting, was to 
 the effect that he knew of no other deed that had been forged by the 
 deceased, except the one given to him (Mr. Wilkinson), and that several 
 deeds had passed through his hands from time to tune, which had been 
 given by the deceased as securities for money advanced to him, which he had 
 no reason to believe were otherwise than genuine. Mr. Wilkinson added, 
 that he believed the statements made by the deceased about himself (the 
 deceased), in the letters written shortly before his death, were much exagge- 
 rated. He (Mr. Manning) might also state that, since the last sitting of the 
 Court, an investigation had taken place into the securities held by the London 
 and County Bank, for the debt of the deceased to that establishment, and the 
 result, up to a certain point, was shown in a letter he would read, which 
 had been addressed by Messrs. Freshfield, the solicitors, to Messrs. Hoghtou, 
 Laming, and Xichol, the new directors of the London and County Bank : 
 
 " Xew Bank Buildings, London, March 4. 
 
 " Gentlemen, In compliance with the wish expressed by you, we beg 
 to assure you, that in the investigation of the securities, held by the London 
 and County Bank for the debt of the late Mr. John Sadleir, now in progress, 
 we have not found amongst them any forged deeds ; and, from the progress 
 of our inquiries, we have the strongest conviction that the apprehensions 
 on this ground are unfounded. We remain, gentlemen, your most obedient 
 servants, " J. C. and H. FBESHFIELD." 
 
 The Coroner said, Mr. Manning would be aware that this was a 
 statement which he could not receive in evidence in that shape. If any 
 importance was to be attached to it, the parties from the bank ought to 
 have been before the Court, in order that the jury might learn from them 
 the natxu-e of the investigation hi question.
 
 FACTS, F-1ILUHES, AND I'K.VUDS. L'.'O 
 
 Mr. Maiming said, he only put it in for what it wns worth, to show 
 ;:iv of the rumours as to forgeries committed by the deceased wiro 
 not founded in fact, and that he (Mr. Manning) had no other means of 
 contradicting those rumours. 
 
 Coroner reminded Mr. Manning that the commission of forgery, 
 more especially with reference to Ireland, had now become matter of 
 notoriety through the usual channels of public information. 
 
 Mr. Manning did not think that the tribunal of the coroner could 
 venture to investigate charges of forgery; and if they were to try this 
 case with reference to mere public reports, he apprehended there would be 
 no end to it. He might add that, since their last meeting, he had investi- 
 gated the rights of the Crown in reference to any property the deceased 
 might have left, and in anticipation of the jury coming to the conclusion 
 tliat he was &felo de se. The coroner, on the last occasion, had rightly 
 said that, in ordinary cases, the right of the Crown interposed in the event 
 of a verdict of felo de se; but they all knew how the Crown dealt with 
 such eases. The Crown, first of all, respected the rights of creditors, and 
 allowed administration to be granted to a creditor, with a view to the dis- 
 tribution of the property of the deceased among his creditors generally. 
 That, however, would not be the case in the present instance. He held in 
 his hand certain letters patent, by which Edward VI. granted to Sir Thomas 
 Wrothe, his heirs and assigns, the manors of Northal, Downbarnes, and 
 Hampstead, with all their appurtenances, rights, and members, in the 
 county of Middlesex, lately parcel of the lands and possessions of the 
 ie 'f "Westminster, including, among other things, " all chattels 
 i, estrays, goods and chattels of felons, fugitives, persons outlawed 
 and put in exigent, or in any any other manner whatsoever condemned or 
 convicted, felons of themselves, and deodands." Now, that document, 
 which he would put in, raised a very grave question, because it was clear 
 that, under the words he had just read, the whole of the deceased's goods 
 and chattels, and every right he possessed, except his estates of inheritance, 
 would go to the present lord of the manor of Hampstead, within which the 
 body of the deceased was found, in whom, by a regular course of legal 
 devolution, the property granted by the letters patent of Edward VI. \\as 
 -ted ; and those rights would go, too, to the exclusion of creditors. 
 
 The Coroner asked if those rights had ever been exercised. 
 
 Mr. Manning did not know that they had or had not, but he did not 
 apprehend that this affected the question, because there was a positive grant 
 from the King; and if the rights granted by it had any existence, thero 
 was no doubt whatever that the present lord of the manor of llainp-teail 
 would be entitled to hold the goods of the deceased discharged from the 
 payment of the debts of the deceased. With that observation he would 
 leave that part of the case to the jurr.
 
 2GO TACTS, FAILURES, A>*D 
 
 The Coroner said Mr. Manning -would be aware that the jury of them- 
 selves could not decide that point, and that it would hare to go elsewhere 
 for decision. 
 
 Mr. Manning said he was aware of that, but he wished to place the 
 whole of the facts before the jury, and to show them that the Crown could 
 be no claimant in this case. He would only add that he did not think he 
 could usefully occupy their tune by calling further evidence. The case 
 must now rest on the evidence which had been already adduced. But the 
 unmeasured language in which the deceased had spoken of his own crimes 
 appeared to him to raise a serious question as to the state of his mind at 
 the tune he committed the act of self-destruction. Some evidence had 
 been given to show the presence of opium to some small extent in the 
 body of the deceased at the time of the post mortem examination. What- 
 ever inference might be deducible from that fact, he thought it would only 
 be charitable to presume, when they considered the state of intense and 
 agonizing excitement in which the deceased had been proved to be through- 
 out the whole of the Saturday preceding his death, that he was not to be 
 held responsible for what he did on that day, in the state of mind in which 
 he was. That, he thought, must have been their conclusion, if this inquiry 
 had been, instead of its present form, an issue from the Court of Chancery 
 to try the state of mind in which the deceased had disposed of his 
 property. 
 
 Mr. ]Xichol, the surgeon who performed the post mortem examination, 
 was here recalled by the coroner, and stated, in reply to a question by him, 
 that on a subsequent investigation of the contents of the stomach of the 
 deceased, he found traces of a substance which he conceived to be opium. 
 
 Mr. Manning, resuming, submitted that the extraordinary coolness with 
 which the deceased had acted under circumstances which would have 
 driven any ordinary man to madness, might be attributable to his habitual 
 indulgence in a stimulant, such as opium, wliich would elevate him for a 
 time, but would afterwards leave him, when its influence had subsided, 
 in a state of despondency. He contended that the deceased on the evening 
 preceding his death must have at length been completely crushed and 
 reduced to a hopeless state of depression, and that in such a state of mind 
 he had, in a hasty and evil moment, rushed out and committed the act of 
 suicide. Taking all the circumstances into consideration, he submitted 
 that the jury could come to no other conclusion than that the deceased 
 was not of sane mind when he raised the hand which deprived him of life. 
 
 The Coroner then proceeded to charge the jury. He said, there being 
 no further evidence to be adduced, he would proceed to direct their attention 
 to the most important points in this case, and, in doing so, he would not 
 occupy their time by reading the depositions which had been taken in the 
 course of the inquiry, but would confine himself to a review of the facts 
 that had come out in evidence. He would also endeavour as much as pos-
 
 TACTS, FAILURES, AXD PKAUDS. 2GI 
 
 siblo to apply his mind exclusively for the time to tho subject now under 
 consideration a matter of some difficulty, as they would believe when he 
 told them that on the preceding day he had held no less than seven inquests, 
 one of which was a case of suicide and another of child burning, so rapidly 
 did the current of horrors run through the mind of a man who filled tho 
 office that he now did. The jury had given an almost unexampled degree 
 of attention to this case, and ho had no doubt that they had a perfectly 
 clear recollection of all the facts that had been given in evidence. He had 
 consequently no fear that they would not come to a strictly just and 
 impartial conclusion. This investigation had been of a very distressing 
 nature, but there was a duty imposed upon jurymen by their oaths, and 
 from that duty he had no apprehension that the jury in this case would be 
 
 d to swerve. The unfortunate gentleman, the cause of whose death 
 they were now investigating, was named John Sadleir, and was a member 
 of Parliament for the borough of Sligo, in Ireland ; and they would recol- 
 lect the circumstances under which his body was found on Hampstead 
 
 on the morning of Sunday, the 17th of last month, as related by the 
 witness Bates. It appeared that by the side of the body of the deceased a 
 silver cream-jug and a case of razors were found, and in his pocket a slip 
 of paper, on which were the words in his own handwriting, " John Sadleir, 
 11, Gloucester Square, Hyde Park." Subsequently a careful examination 
 of the body was made by Mr. Kichol, and it was proved, he thought, most 
 indisputably, and nothing ever more truly, that the death of tho unfor- 
 tunate gentleman was caused by his taking a very large quantity of the 
 essential oil of bitter almonds. A bottle containing some of that poison 
 was found by his side, and labelled with the words, "Essential oil of bitter 
 almonds," and the unfortunate man had taken so large a quantity of it 
 that every part of his viscera was affected by the smell. Taking it, there- 
 fore, as beyond question that he died from the effects of poison, and that 
 poison was administered by his own hand, the next step of the jury 
 would be from death to life, and to consider what were the circumstances 
 immediately preceding the taking the poison by the deceased. With 
 
 'c to the manner in which the poison was purchased, ho thought it 
 but fi-.ir to say that Mr. Maitland, the chemist, and his assistant stood 
 entirely acquitted of all blame, as did also the butler of the deceased. The 
 manner of ordering the poison and tho quantity ordered were quite suffi- 
 cient to throw any person off hia guard. It was really a most unpleasant 
 duty to go into the other part of this inquiry. It was r.ilrulatrd to involve 
 them all in a labyrinth of doubt ; and he must repeat what ho had said 
 on a previous occasion that he most deeply deplored that they had to make 
 any such investigation. He believed such inquiries to be utterly n 
 and that they led in many cases to tho most painful mistak. -. lie f 
 to the state of mind in which a person was supposed to be who had com- 
 initt'-d the act of self-destruction. At tho samo time, he was convinced
 
 2G2 .FACTS. rAiLrnES, AXD 
 
 that the practice among jurymen of finding verdicts of insanity in criminal 
 cases was an exceedingly pernicious one, for by that practice the worst of 
 criminals often escaped justice, and every now and then a madman was 
 executed. Mr. Manning had alluded to an issue from the Court of Chancery. 
 He (the coroner) was not sorry that he had done so. "What happened in 
 such a case ? There were frequently in such inquiries twenty-four intelligent 
 jurymen, several medical practitioners of high reputation, six or eight 
 remarkably clever counsel, and as many sharp attorneys. They sat from 
 day to day conducting such an investigation with the utmost care and 
 assiduity into the state of mind of a party who was before them. They 
 had the individual present whose sanity was questioned, and by the inge- 
 nuity of counsel his brain was rasped, as it were, for the purpose of 
 ascertaining its quality. What frequently was the result ? Why, at the 
 end of a protracted inquiry, four or five medical gentlemen believe him to 
 be sane, and as many more think him insane, and there was a small majority 
 of the jury on one side of the question. If that was the state of things 
 before a Court so constituted, what was their condition who composed the 
 coroner's tribunal, when the person who formed the subject of their anxious 
 inquiry had. passed from among them, and when they could only form their 
 opinions from such fragments of evidence as he had left behind him ? Mr- 
 Manning had also alluded to the consequences of their verdict ; but he 
 (the coroner) was bound to tell them that they must not take the con- 
 sequences of their verdict into consideration at all. The inquiry and the 
 verdict were quite legitimate things of themselves, but consequences, whe- 
 ther they were great or small, narrow or wide, they must not take into 
 account at all in coming to a decision. They must now proceed backward 
 to the last link in the chain of life. The last person among his domestics 
 who appeared to have seen the deceased alive was his butler, Elwin. He 
 stated he left him at eleven o'clock at night, and that, on returning upstairs 
 at a quarter to one o'clock, he found three letters on the hall slab, two of 
 which were addressed to Mr. Keating, and the other to Mr. Norris. He 
 then ascertained that Mr. Sadleir had taken his great-coat and hat from 
 the hall and left the house. After that time they were not aware that Mr. 
 Sadleir was seen alive by any person who knew him. The butler added 
 that he had lived with Mr. Sadleir for eighteen months, and that his master 
 was a man of very sober, frugal habits, and very temperate in his mode of 
 life. He also stated that he had never known him make any attempt on 
 Ms life before, that he had observed nothing peculiar in his manner during 
 the whole period he had lived with him. About a quarter to eleven o'clock 
 on the Saturday evening Mr. Norris left Mr. Sadleir, after having been 
 with him about half an hour, and he stated that he noticed a redness of the 
 eyes, as though Mr. Sadleir had been weeping. He added that when he 
 arrived, Mr. Sadleir was walking about the room, which, he said, was a
 
 TACTS, FAILURES, AND 1'HAUDS. 2G3 
 
 : usual occurrence with him, and that while he was there the deceased 
 >hif ines.-sajre, in these words : 
 
 " Forwarded from Dublin Station, and received at the Strand Station, 
 
 .i). From James Sadleir, 30, Merrion Square (South), Dublin, 
 
 to John Sadleir, Esq., M.P., Eeform Club, Pall Mall, London. All right 
 
 at all the branches only a few small things refused there. If from 20,000 
 
 to 30,000 over here on Monday morning, all is Mii'e." 
 
 Probably at that tune Mr. Sadleir knew the impossibility of transmitting 
 so large a sum, but the poison had been sent for three hours before the 
 arrival of that message. It also appeared from Mr. Norris's evidence that 
 he had been with Mr. Sadleir in the afternoon of that day, in the city, at 
 Mr. Gurney's office, and that he was so impressed with the effect likely to 
 bt? produced on the deceased by his reverses of fortune, that he made the 
 remark that he should not be surprised if Mr. Sadleir shot himself. After 
 Mr. N orris and the butler had left, the letters to Mr. Keating and Mr. 
 Xbrris appeared to have been written. Those letters, therefore, contained 
 the latest evidence they had as to the condition of Mr. Sadleir's mind. 
 Mr. Manning said he attached but little importance to the declarations in 
 those Betters, but they were presented to the jury in the character of dying 
 declarations. Mr. Manning had truly stated that the deceased must have 
 been in a state of great mental depression, arising from the consideration 
 of the losses and reverses that had befallen him. That brought them to 
 the consideration of what was insanity. It was not depression of spirits, 
 nor was it agony of mind. Not a single sentence had ever yet been 
 written which gave a correct definition of insanity, and he feared there 
 never would. It was a subject which had engaged the prolonged attention 
 of Borne of the ablest thinkers that had ever lived. Many of the most 
 eminent psychologists had over and over again stated that the whole thing 
 iras involved in mystery, in consequence of the chameleon-like character of 
 the manifestations and causes of insanity. If insanity could be defined by 
 the word grief, sorrow, remorse, or even despair, greatly as insanity now 
 prevailed, it would exist then in a thousandfold greater degree. But what 
 they had to decide with reference to the evidence was this Did they be- 
 liere that at the time Mr. Sadleir committed the act of self-destruction ho 
 was a responsible agent ? in other words, that he was in such a condition 
 of mind as made him morally and legally responsible for his actions ? It 
 was much to be regretted that that was a subject beset with so much diffi- 
 culty. He had always observed that juries in such cases were disposed to 
 lean towards the side of mercy and humanity ; but it should be borne in 
 mind, that if mercy and humanity were to bo shown towards tho indi- 
 vidual, they were equally to be regarded in reference to society at large. 
 i -OIUT then read the letters written by the deceased on the night 
 before his death to his sister-in-law, Mrs. James Sadleir, 'nj, and
 
 264 FACTS, FAILTTEES, A2TD FKATTDS. 
 
 Mr. Xorris ; and lie contended, on the face of those letters themselves, that 
 when the deceased stated in them that he could not live, his mind was not 
 in sucli a state of disturbance even as to create any confusion of ideas. 
 They were written at almost the last moment before he died, and there was 
 nothing in them that was inconsistent with the perfect retention of reasoning 
 and reflecting powers, and the maintenance of a correct memory. At the 
 same time, it was impossible not to know and feel, from the very manner 
 in which the letters were expressed, that the deceased must have been 
 suffering the most intense agony. The very act he committed proved of 
 itself the mental suffering that drove him to such a measure of desperation. 
 But still, again, the question arose, was he in such a state of mind as made 
 him responsible for Ins actions ? That was a question which they had to 
 answer by their verdict. In the medical examination of the bodies of 
 suicides, the most minute and careful search was made into the state of 
 the brain. That appeared to have been done by Mr. Nichol in this case, 
 but no disease of the brain was found to exist. They would now take 
 every fact into their consideration which had been given in evidence, and 
 he was sure they would in the end come to a strictly just conclusion. If 
 they believed Mr. Sadleir was irresponsible for his actions, and that he was 
 driven to commit the act of self-destruction by some uncontrollable im- 
 pulse, they would say that he was of unsound mind. But if, on the other 
 hand, they believed he was of perfect memory and understanding at the 
 time, and that he could have controlled that act if he had thought proper 
 to do so, they could come to no other conclusion than that he had com- 
 mitted self-murder. If, however, they had a doubt on the subject, he 
 would call on them to give the memory of the deceased the benefit of that 
 doubt. But if they had no such misgiving, it was impossible they could 
 come to any other conclusion than that it was an act oifelo de se. 
 
 The jury then retired, and, after an interval of nearly half an hour, they 
 returned into court, and the foreman said they were unanimously of opinion 
 that the deceased, John Sadleir, died by his own hands when in a perfectly 
 sane state of mind. 
 
 The Coroner said he felt, after the most deliberate and careful considera- 
 tion of the whole evidence, that they could come to no other conclusion. 
 The proceedings then terminated. 
 
 It may be stated that late at night on the Tuesday after the deceased 
 was found dead on Hampstead Heath, and after the Coroner had given 
 permission for its interment, the body was removed from the workhouse at 
 Hampstead to the house of the deceased in Gloucester Square, Hyde Park, 
 and on the following Thursday morning, at a very early hour, interred in 
 Highgate Cemetery, in the presence of a few of his immediate relatives 
 and others, the burial service being performed by a Eoinan Catholic 
 clergyman.
 
 TACTS, FAILTTBES, AND FRAUDS. 2G3 
 
 REPORT OF MR. COLEMAN, 
 
 THE ACCOUNTANT EMPLOYED TO INVESTIGATE THE POSITION OF TUB 
 
 IONEON AND COUNTY BINE, APTEB TUB DISCOVERY OP 
 
 THE SADLEIB, PBATTDS. 
 
 " 36, Coleman Street, August 4, 1856. 
 
 "TO THE DIKECTOK3 OP THE LONDON AND COUNTY JOINT-STOCK 
 BANKING COMPANY. 
 
 " GENTLEMEN, In accordance with your request, I have made a 
 general investigation of the accounts of your Company, for the purpose of 
 testing their accuracy, and as your express desire was, that I should pur- 
 sue my own views in the inquiry, without reserve or restriction, I hava 
 taken advantage of such opportunity to acquaint myself with the prin- 
 ciples of, and the leading features appertaining to, the business carried on 
 by your Company, both as regards the head establishment in London, and 
 the siity-two branches in the counties of Middlesex, Essex, Kent, Surrey, 
 Sussex, Hertfordshire, Bedfordshire, Berkshire, Cambridgeshire, and Hunt- 
 ingdonshire. 
 
 " To attain this information I first examined the statements up to the 
 30th June last, as sent from each branch. These statements not only con- 
 tain the results requisite to make up the balance-sheet, but also set forth 
 in full detail each several account, particularizing separately every bill dis- 
 counted, all loans made, and the securities held against them, and exhibit 
 very distinctly every item connected with the entire business. These state- 
 ments also contain remarks by the branch manager, elucidating the several 
 transactions in which he has engaged, thus giving, as far as possible, a 
 concise detail of the whole business operations. 
 
 " In addition to these statements, I have, where I have found it neces- 
 sary, referred to the reports of the bank inspectors, and by these combined 
 documents, have been enabled to arrive at a general conclusion as to the 
 nature of the Company's business, and the mode in which it has been 
 'conducted, and also to form an opinion of the value of the business so 
 carried on. 
 
 " The limited time which has been afforded mo for this examination, 
 and the great number of accounts (appertaining to these branches), 
 amounting to nearly 20,000, precludes my expressing more than a general 
 opinion ; but, upon the whole, I am satisfied that the business is a sound oue, 
 that it is carried on with judgment, and is likely to continue profitable. 
 
 "In regard to the London establishment, I have checked through the 
 whole of the balances with your auditors, and certify that the balance- 
 sheet of 30th Juno is correct in figures, and exhibits the true balances of 
 the books.
 
 266 PACTS, TAILUBES, AND FEATJDS. 
 
 " In an inquiry of the present nature, where so many interests of im- 
 portance are concerned, it would not be proper to particularize any special 
 accounts, or to invade that confidence which is reposed in the managers of 
 a bank ; but the notoriety of the connection of your bank with the West- 
 minster Improvement Commissioners and the late John Sadleir, require 
 that I should specially notice those accounts. 
 
 " I have carefully examined into the debts due in connection with the 
 Westminster Improvements. The securities, held by the bank for advances 
 on these accounts, consist of mortgages of freehold and leasehold proper- 
 ties, and, from the valuations made by the gentlemen employed for this 
 purpose, it appears that the bank may fairly expect to realize from them 
 the amount of these advances. 
 
 " In reference to the debt due from the late John Sadleir, I may state 
 that the original amount has been much reduced, that the realization 
 of securities is proceeding steadily, and I see no reason to doubt that the 
 whole will be discharged in the course of twelve months, with the exception 
 of a sum due on mortgage, which is the subject of legal proceedings. On 
 the validity of this it would not be proper for me to offer an opinion. 
 
 "I have examined the various securities, consisting of Consols, Ex- 
 chequer Bills, East India and other Stocks, which are taken credit for in 
 the balance-sheet of the 30th June, and, upon the whole, am satisfied that 
 they represent the value taken on that date. 
 
 " The remaining general securities I have also looked into, and I am of 
 opinion that they are satisfactory. 
 
 "In making these remarks, I must not be understood as expressing an 
 opinion that each of the securities, of every description, held by the bank, 
 is of the full value of the sums which they represent, or that all debts 
 taken will realize the full amounts at which they are stated ; but taking 
 the entire of these matters into consideration, I believe that the amount 
 that now stands to the credit of your reserve fund will be amply sufficient 
 to meet all contingencies that may arise upon the eventual realization of 
 these assets. 
 
 "These observations will naturally force upon you the necessity of con- 
 sidering how far it may be expedient for you to create a further reserve on 
 your current business. 
 
 " I trust it may not be considered a departure from my strict line of 
 duty, to direct your attention to the amount of your paid up capital, when 
 taken in comparison with the enormous extent of your present business 
 operations ; operations, I should imagine, far exceeding the most sanguine 
 expectations of any persona connected with your establishment, and opera- 
 tions likely, as far as I can see, to be still further extended. I feel strongly 
 how important it is, that the foundation of such an establishment should 
 be of sufficient strength and solidity to carry its full weight, and inspire
 
 TACTS, FAILURES, AND FRAUDS. 
 
 confldcnce in the public ; and I hare ventured to call to your attention 
 at, being satisfied that it deserves your serious consideration. 
 
 " In conclusion, I have to state that, in my opinion, the general busi- 
 ness carried on in your various departments, with but few exceptions, is 
 both sound and profitable ; the mode in which your branch returns are 
 made, and the supervision of your inspectors, is most effective ; and, when 
 I find that your depositors in the country exceed 6100 in number, whose 
 deposits, after providing sufficient capital for the whole of the requirements 
 of the sixty-two branches, leaves an amount of one million and a quarter 
 to one million and a half of money, for profitable employment by the 
 tablishment, I feel that confidence which you have gained forms 
 a most important element in the soundness and general stability of your 
 Company. 
 
 " I have to express my thanks to you, for the unrestricted manner in 
 which yot have permitted me to conduct this inquiry ; and also to Mr. 
 M'Eewan, your manager, Mr. Gray, his assistant, and Mr. Norfolk, your 
 principal inspector, for the great assistance which they afforded me, and 
 for the unreserved manner in which they so promptly replied to all my 
 inquiries. I am, gentlemen, yours faithfully, 
 
 "J. E. CoLEiiAir, Public Accountant."
 
 2G8 TACTS, PAILrHES, A3TD ntAUDS. 
 
 CHAPTER VII. 
 
 THE ROYAL BEITISH BAXK ITS SUSPENSION AND GENEEAL 
 MISMANAGEMENT. 
 
 Its Organization and proposed Course of Business The Attempt to de- 
 velop the Scotch System Parties identified with its Formation The 
 Non-Success of Business The Attempts to Force the Popularity of 
 the Establishment Opening of Branches in various Districts The 
 Promoters of the Undertaking, Mr. John M'Gregor, M.P., Mr. Came- 
 ron, and Mr. Mullins Salaries paid to Officials The Discount Ope- 
 rations of the Bank The Debts of the Directors, Manager, etc. 
 Issue of new Shares Mr. Humphrey Brown's Account Difficulties 
 of the Bank Loss of Capital, etc. The Operation of the Wiuding-up 
 Clause of the Charter The Struggle to preserve Position The Ulti- 
 mate Decadence of Business The Suspension in September, 1856 
 The Contest for the Estate between the Court of Chancery and the 
 Court of Bankruptcy And the Prosecution and Trial of the Directors. 
 
 THE affairs of the Royal British Bank, and its disastrous 
 management, will long be remembered by those who moved 
 in financial and trading circles at the period. The private 
 banking interest experienced a severe blow when the suspen- 
 sion of Messrs. Strahan, Paul, and Bates occurred, and the 
 joint-stock banks obtained a temporary advantage by the 
 change of public feeling in their favour. The course pursued 
 by the partners in that case had brought upon them the severe 
 condemnation of the public, and their fate had, at that date, 
 elicited little expression of sympathy ; and most parties, look- 
 ing to the security of their funds, were loud in their approval 
 of the safety and responsibility attaching to the joint-stock 
 system. True it was that the Tipperary Bank had failed, and 
 that the exposures in relation to John Sadleir had occasioned 
 suspicions to be directed to some quarters, but the suspension 
 of a metropolitan joint-stock bank was an event barely contem-
 
 FACTS, FAILURES, AND FBAUDS. 2G9 
 
 plated. Prejudicial reports had been frequently circulated 
 respecting the Eoyal British Bank, its management, and imme- 
 
 liabilities ; but these were supposed to have emanated 
 from disappointed or dismissed officers, and not to have any 
 special foundation in truth ; and until within a few weeks of 
 the very catastrophe, even some of the directors were hardly 
 prepared to find themselves reduced to the desperate condition 
 which an ultimate examination of accounts so clearly esta- 
 blished. Of course, when the stoppage took place, and the 
 startling disclosures which followed became slowly but dis- 
 tinctly revealed, the revulsion against the joint-stock system 
 was only too apparent, and for a short period some of the best 
 banks suffered through the caution exercised by the public, 
 and in one instance the rumours propagated assumed such an 
 importance, that the business of the special bank, had it not 
 been vigilantly protected, would have been brought to a stand. 
 But although the Royal British Bank suspended, and its de- 
 struction, through the absence of prudent conduct, entailed 
 disgrace upon the system, it was not, from the first, viewed as 
 an institution which commanded a high degree of public 
 favour, or attracted any extraordinary amount of banking 
 business, for it was based upon principles that were in this 
 country comparatively novel, and novelty in mercantile affairs 
 must with Englishmen, and Londoners especially, be accom- 
 panied with self-evident advantages, and, above all, with secu- 
 rity, to become generally popular. Nevertheless, its trans- 
 
 is were sufficiently extensive for its failure to inflict 
 serious loss upon a very considerable body of customers, con- 
 sisting, unfortunately, of that class of persons who were the 
 least able to bear it small traders and private individuals of 
 limited means ; and absolute ruin upon a number of innocent 
 shareholders, mostly in the same rank of life, who, deceived by 
 the specious reports put forward by a doubtful body of direc- 
 tors, were induced to embark their capital in a concern in the
 
 270 PACTS, FAILURES, A^D FEAUDS. 
 
 general management of which honour and honesty were 
 apparently wholly ignored. 
 
 The project of the Royal British Bank was first launched 
 upon the world in the year 1850, but it had previously heen 
 actively canvassed and arranged. The prospectus, it is true, 
 caine before the moneyed public unsupported by high authori- 
 ties in the trade of banking, or by the names of known great 
 capitalists. There were no men of mark, either as financiers 
 or millionaires, upon the provisional list of directors, or 
 amongst the original subscribers ; but there were M.P.'s, one 
 of them a great statist, who had been officially connected with 
 the Board of Trade, and consequently carrying some weight, 
 persons who had had some experience in the business of money 
 dealing in another part of the kingdom, and others who, as 
 shipowners and traders, were engaged in transactions of mag- 
 nitude, and were presumed to have extensive financial opera- 
 tions, and consequently influence. It was not, however, upon 
 the faith of the names by which the scheme was backed, but 
 the principles upon which it was to be carried out, that the 
 public were invited to take shares, or to become customers. 
 It was boldly averred that the science of banking was unknown, 
 or, at all events, unpractised in London that the system 
 which prevailed in Scotland was the only one adapted to the 
 wants of a commercial community and ingenious calculations 
 were submitted, showing that a bank established in London 
 upon the Scotch principle, affording those facilities, and that 
 accommodation in the shape of discounts which the northern 
 banks supplied, must necessarily realize profits which would 
 ensure to the fortunate shareholders a rate of dividend that 
 would exceed the liberal divisions the then existing metropoli- 
 tan joint-stock banks were periodically making amongst their 
 proprietors. To lend dignity to the new institution, and to 
 afford security to the partners, a charter was to be obtained ; 
 and, to convey an idea of the wide range of business contem-
 
 PACTS, FAILURES, AND FRAUDS. 271 
 
 plated, the title of the "Royal British" was adopted. Tho 
 capital, as originally proposed, was 100,000, divided into 
 shares of 100 each, one half of which was called up, the usual 
 intimation being given, that as the business extended, and 
 more capital was required, a further issue of shares would take 
 place, in the allotment of which the original proprietors would, 
 it was announced, have the preference. 
 
 The great success which had attended the working of the 
 principal joint-stock banks already in active operation, afforded 
 support to the new project and aided by the indefatigable 
 exertions of those whom the sequel showed had important 
 objects of their own to serve, the shares were eventually taken 
 and paid upon, though the amount had in some degree to be 
 manufactured, the royal charter was obtained, and business com- 
 menced. At the outset arrangements were made for an extended 
 trade. Seeking customers amongst tradesmen of comparatively 
 limited business, retailers and small manufacturers, as well as 
 merchants, wholesale dealers, and large capitalists, the directors 
 felt it necessary to have branches in various parts of the town, 
 and besides the central establishment in Tokenhouse Yard, 
 branch banks were at once set up in the Strand, in Lambeth, 
 in Southwark, and afterwards to these were supplemented 
 others in Islington, in Piccadilly, in Holborn, and in Pimlico. 
 
 The bank once fairly upon its legs, the Scotch system was put 
 into action, and, as fast as money came into the till, it was lent 
 out liberally, but acting upon the notion that when a liberal 
 principle is set in motion, those who ought to benefit by it are 
 its authors, the managers and directors thought themselves 
 perfectly entitled to supply their own private wants as well 
 as to attend to the demands of their customers. They had 
 laid down a rule that no discounts should be allowed to parties 
 who had not an open account at the bank, either in the shape 
 of deposits or a drawing-account. And they were required to 
 maintain at all times a balance equal to at least twenty-live per
 
 979 
 
 FACTS, FAILTJEES, AXD FBATTDS. 
 
 cent, of the total amount of the advances made to them. 
 How strictly this wholesome regulation was adhered to in refe- 
 rence to those who had established it, let the record of the 
 proceedings before the Commissioners in Bankruptcy tell. 
 
 Of the original projectors, the majority of them contrived to 
 provide comfortable and lucrative positions for themselves. 
 First there was Mr. John M'Gregor, M.P. for Glasgow. He 
 was appointed a director, and, in consideration of his great com- 
 mercial experience and financial knowledge, was allowed to 
 draw a salary in addition as the chairman of the board. Then 
 there was Mr. Mullins, the solicitor, whose active and successful 
 zeal in setting the scheme afloat was rewarded with the profit- 
 able office of legal adviser and secretary to the board. Again, 
 there was the bank manager, Mr. Cameron. "What part this 
 gentleman took in originating the institution does not 
 clearly appear, but he must have been potently influential 
 in some way or other, else it were impossible to clear up 
 the mystery why he was selected. His principal qualification 
 for the responsible office thrust upon him, as far as the 
 public can glean, was in the locality of his birth. The bank 
 was to be conducted upon the Scotch principle, and Mr. 
 Cameron was a native of Scotland, where he had filled, as 
 far as appears to the contrary, with credit to himself, the exe- 
 cutive legal office of Sheriff of Dingwall, in Ross-shire, but 
 that he had had any experience in bank management, or in the 
 conduct of large monetary dealings, to entitle him to a position 
 so onerous and important as that to which the directors of 
 the Royal British appointed him has never been alleged. 
 He was made manager, with a salary of 1500 a-year to begin 
 with, which was afterwards increased to 2000 or 2200 a-year. 
 But liberal salaries and high professional gains did not satisfy 
 these gentlemen. They suddenly and unexpectedly found 
 themselves in the all but uncontrolled command of unlimited 
 funds, and the temptation to use them for their own private
 
 FACTS, FAILUBES, AND PBAUDS. 273 
 
 purposes was irresistible. It was necessary that everything 
 should be done in due form, and in a business-like way ; and 
 \lingly, as soon as the bank commenced operations, draw- 
 ing- accounts were opened by the manager, the chairman, the 
 solicitor, and many of the other directors. This was, no doubt, 
 a very proper proceeding, for it is above all things necessary 
 that those who have the management of a bank, and who invite 
 public confidence, should prove that they have themselves 
 reliance in its stability by trusting their own ino^.ey in its 
 custody, but as the sequel indicates the principal object which 
 these functionaries had in thus becoming their own customers 
 was to facilitate discounts, or rather unsecured advances in 
 their own favour. At first sight it would be inferred that there 
 were practical difficulties in the working of the joint-stock 
 system the audit, the periodical reports, and statements of 
 accounts, and, more than all, by the constant supervision of co- 
 directors, some of whom, at all events, will be disposed to 
 exercise their functions with a due regard to their responsibi- 
 lities. This difficulty the inventive genius of the manager 
 easily surmounted. He discovered that the customers of the 
 bank who required discount accommodation were averse to that 
 publicity of their affairs which the examination of their bank- 
 ing accounts by a whole board involved, and Mr. Cameron, 
 entering fully into the spirit of this objection proposed that all 
 such transactions should be entered in a private ledger, which, 
 should be accessible only to himself and one or two of tho 
 directors. The board adopted tho proposition of their manager, 
 and the consequence was, that he and the one or two members of 
 the finance committee by whom the secret ledger was kept, and 
 who were no doubt advisedly chosen, helped themselves to tho 
 contents of the till as it suited them, made advances to their 
 friends without regard to the security, and set the first seeds 
 of that ruin which ultimately resulted. In this way Mr. 
 Cameron, the manager, became indebted to the bank to the 
 
 T
 
 274i FACTS, FAILURES, AXD FRAUDS. 
 
 amount of 30,000, Mr. M'Gregor, 8,000, Mr. Mullins, 
 7000, Mr. Grwynne, another of the old directors and origi- 
 nal projectors, 13,000, of which no account was rendered to 
 the shareholders, and of which it is extremely problematical 
 whether the creditors have recovered one penny. And one of 
 the auditors, who it may be presumed was a little too prying, 
 found it more convenient to accept an advance of 2000 than 
 to enter into disagreeable questionings of vouchers and cheques. 
 But still more remarkable was the pecuniary relations 
 between the bank and some of its other directors. Several 
 of the original members of the board, being dissatisfied, it is 
 to be presumed, with being kept wholly in the dark as to 
 accounts, for the correctness of which they were required to 
 take their share of responsibility, retired ; and it became neces- 
 sary to fill up the vacancies. Some difficulties were, however, 
 experienced in this respect, as the bank had not obtained a 
 popular repute, and the changes in the board excited distrust. 
 During this period of transition, Mr. Esdaile became deputy- 
 governor, and shortly afterwards, on the compulsory retire- 
 ment of Mr. C. "Walton, who had obtained large advances, 
 but through whom, it is but just to say, it does not appear 
 that the bank sustained any loss, succeeded to the high posi- 
 tion of governor. Mr. Esdaile was not, apparently, a man of 
 large capital, but he was energetic and persevering, and he did 
 all he could to push the business of the establishment. The 
 disastrous investment in the Cefii Iron Works, however, with 
 other mismanagement, had already produced its effects, and the 
 course of business was rapidly towards bankruptcy. Though 
 connected early with the bank, his personal transactions were 
 insignificant ; but of his abilities as a financier there is evidence 
 in the fact, sworn to by himself, that when the new shares were 
 issued, he, having no funds of his own, paid for his quota by a 
 cheque upon the bank drawn by the manager, who had not only 
 no balance to his credit, but, to the governor's own knowledge,
 
 FACT?;, rAU.rnES, AXD FIIAUDS. 275 
 
 a balance of several thousands to liis debit. Yet, singularly 
 ;lu Mr. Esd;;ile, iu his examination before the Cominis- 
 :, repudiated the idea that he was temporarily drawing upon 
 the bank for his own purposes. None of the directors, how- 
 ^eem to have made so much from their connection with 
 the institution as Mr. Humphrey Brown, M.P. for Tewkesbury. 
 Mr. Brown was solicited to join the direction in the beginning 
 of the year 1S53, when numerous secessions, arising from the 
 - before referred to, had weakened the board, and rendered 
 an infusion of the M.P. element desirable. The first thing 
 to be done was to qualify the intended director by placing 
 him in possession of the necessary shares. To go into the 
 market and purchase them, Mr. Brown found inconvenient, 
 and Mr. Mullins, the solicitor and secretary, kindly stepped 
 forward to smooth away the obstacle, and transferred to him 
 the requisite number, taking his promissory note for the 
 amount, which, it is almost superfluous to add, was never paid. 
 In the same way, when it was determined to increase the 
 qualification of directors, Mr. Brown obtained other shares 
 from his friend Cameron, for which he gave his note for 
 1000, which note has, from that time to this, remained a 
 piece of waste paper. But Mr. Humphrey Brown, being duly 
 installed in the directorial chair, felt in duty bound to patronize 
 with his custom the institution of which he had thus become 
 one of the heads. Accordingly, he opened an account at 
 the bank, paying in the magnificent sum of 18 14s., upon 
 the faith of which, and on the very same day, he borrowed 
 upon his note of hand 2000. On the 12th of March follow- 
 ing, he obtained another loan, on the same kind of security, of 
 3000, and on the 2nd of May a further loan of 4000, making 
 a total of 9000 obtained by this gentleman, without security, 
 in three months. On the 16th of Juno he borrowed 7000 
 more, but his co-directors, thinking it time that some security 
 should bo given for these advances, a mortgage was executed
 
 276 TACTS, FAILTJKES, AND THAUDS. 
 
 for this 7000 upon a vessel belonging to him. Upon another 
 ship 5000 was advanced, and so he went on upon the strength 
 of this drawing-account, begun with the 18 14s., and only 
 replenished by money draAvn from one bank drawer and paid 
 into the other, until he was a debtor to the company to the 
 amount of 70,000. Nothing can be more naive than the testi- 
 mony of Mr. Brown in the Court of Bankruptcy. He says, 
 " when I joined the bank, I found the solicitor, the governor, 
 and others making use of their power to go to the bank counter, 
 and discount their paper;" and though he says he complained 
 of the irregularity, he did not allow many hours to elapse 
 before he followed the example. " But," he says, " I obtained 
 my advances through the general manager;" and he takes 
 credit to himself for having been the means of establishing a 
 a rule that all advances to directors should come from that 
 source. But after all, if Mr. Paddisou (Mr. Mullius's partner 
 and successor in the joint offices of secretary and solicitor of 
 the board) is to be believed, and there is no reason to dispute 
 his statement, Mr. Brown seems to have had, of all the directors, 
 the most accurate sense of the duty he owed to the shareholders 
 and the public. It is stated in evidence, that over and over 
 again, after he joined the direction, he urged upon the other 
 members of the board that their losses having brought them 
 within the operation of the 71st clause of the Act of Parlia- 
 ment, which provides, that when the reserve fund is exhausted, 
 and one-fourth of the capital gone, the concern shall be wound 
 up, they were bound to call the shareholders, and close their 
 doors. This he did more especially in 1855, when it was pro- 
 posed to increase the capital by the issue of a new series of 
 shares, but he was over-ruled by Mr. Esdaile the governor. 
 
 An establishment conducted with such an utter disregard 
 of business principle, could not possibly, however excellent the 
 system upon which it was professedly founded, possess the 
 elements of permanence. Falsified accounts, favourable re-
 
 TACTS, FAILURES, AND FR.VUDS. 277 
 
 ports and regular dividends, were not sufficient to keep the 
 truth from gradually oozing that the bank was actually in a 
 state of hopeless insolvency. The reckless advances the direc- 
 tors made to their friends were kept sufficiently secret by 
 means of the private ledger ; but the fact that the board had, 
 in the hope of recovering large suras, advanced upon inadequate 
 security, to the original lessees of the Ccfn Iron Works, sub- 
 sequently adopted the business, and were sinking in them the 
 money of their customers to the amount of several thousands 
 a-weck, became patent to the world. The new shares, though 
 puffed by all means and pressed upon the customers and the 
 public, were not taken up. The letter of John Sadleir to his 
 brother, published after the suicide of the former, in which 
 that consummate swindler advised the cooking of the Tipperary 
 Bank accounts as the accounts of certain banks in London were 
 cooked, specially referred to the Royal British ; and, where 
 City gossips congregate, it was rumoured that those who had 
 heavy balances at the South Sea House for the comparatively 
 humble establishment in Tokenhouse Yard had now given 
 place to the extensive and handsome buildings in Threadneedle 
 Street, which the once celebrated South Sea Company so many 
 years occupied or at the branches, had better reduce them. 
 A run in consequence took place not general, but gradual 
 and continuous which the suggestion in the report of June, 
 1850, that the apparent falling off in the amount of deposits 
 arose from a change in the mode of making out the accounts, 
 failed to conceal ; and on the 3rd of September, 185G, the 
 doors of the Eoyal British Bank finally closed ; the institution, 
 during its brief existence of six and a-half years, having ex- 
 hausted the whole of the 158,000 subscribed by its unfor- 
 tunate shareholders, leaving them besides some 500,000 in 
 debt, in addition to the heavy expenses of working the corn- 
 on in bankruptcy, and the costs of proceedings under the 
 Winding-tip Act and in the law courts.
 
 278 FACTS, FAILTTBES, ASD FRAUDS. 
 
 In calmly reviewing the circumstances connected with the 
 disastrous failure of the Royal British Bank, more than one 
 question must be taken into consideration. Xot only was the 
 establishment in its incipient formation irregular, but its 
 course of management most widely digressed from the prudent 
 path of banking business shortly after it commenced opera- 
 tions. It is questioned whether, if a thorough analysis of 
 the accounts were entered into, the transactions of the first 
 half-year would be found to have been satisfactorily arranged ; 
 the subsequent advances to directors, and then the fatal loss 
 and investment in the Cefn property, amply explaining the 
 cause of the ultimate suspension. "With a board of directors 
 thus constituted, the leading members borrowers, the manager 
 increasing his debt, the joint solicitor and secretary obtaining 
 advances, and even one of the auditors stultifying his official 
 position by receiving assistance at the hands of the bank, safe 
 and cautious proceedings were not to be anticipated; but 
 though before the failure it was anticipated that some transac- 
 tions of the kind would be revealed, such extensive, if not frau- 
 dulent, mismanagement was scarcely looked for. ."When the 
 suspension occurred, and when the actual facts of the case caine 
 to be disclosed, then no reservation was made of the condemna- 
 tion of the board, and from Mr. J. M'Gregor, M.P., to Mr. 
 Cochran, the only member of the direction who, although his debt 
 was 14,000, by distant flight, escaped the perilous ordeal of an 
 examination in bankruptcy, or a trial before a jury, each re- 
 ceived their fair share of contumely and reproach ; and admit- 
 ting that some were less liable to censure than others, the 
 conduct of the majority could not be palliated. 
 
 Of course, different opinions are entertained of the struggle 
 that took place between the Courts of Chancery and Bank- 
 ruptcy for the possession of the carcase of the moribund bank. 
 The vultures of the law scented out the various systems of 
 process by which the unfortunate shareholders could be
 
 FACTS, FAILTJBES, A.TTD FRAUDS. 
 
 harassed, and these actions, arrests, etc., associated with the legal 
 proceedings absolutely requisite, made " confusion worse con- 
 founded." The official manager in Chancery, and the as- 
 signees in Bankruptcy, both strenuously exerted themselves for 
 their respective interests; but as unfortunately costs were 
 increased, shareholders, who were also depositors, not only 
 lost that which they had invested, as well as the money lodged 
 in the bank, but, as a dernier resort, were compelled to avail 
 themselves of the privileges of the statute as administered in 
 Basinghall Street, to relieve themselves from the responsibility 
 of their situation.* The trial and conviction of the whole of the 
 parties who were arraigned (death having previously released 
 Mr. M'Gregor, M.P., from the obloquy which attached to the 
 bankruptcy and the trial), vindicated the majesty of the law 
 but did not in the least assist to reimburse the ruined share- 
 holders, or make up 20s. in the pound to the unfortunate de- 
 positors. The maximum sentence was one year, and the 
 minimum three months ; and although nearly the whole of the 
 defendants have since, through petitions, etc., escaped the 
 full measure of punishment, the effect of the inquiry is still 
 apparent among the financial and trading community. 
 
 * No one who has watched for the last ten or twelve years the progress 
 of proceedings in bankruptcy, can havo failed to have noticed who are the 
 great legal luminaries of the court, viz., Lawrance and Linklatcr, or Link- 
 later and Lawrance, as the case may be. Great credit attaches to Mr. 
 Linklater for the manner in which he conducted the examination of the 
 directors of the Royal British Bank, after their surrender ; and though they 
 were extremely protracted, they were pregnant with interesting details. 
 When the bankruptcies became frequent, and the failures were attributed 
 to the bank, Mr. Lawrance one day facetiously remarked, " Former bank- 
 ruptcies were all through tho Crimean war, they are now traceable to the 
 Eoyal British Bank."
 
 280 TACTS, FAILURES, AND FEATJDS. 
 
 THE TEIAL OP THE DIKECTOKS OF THE EOYAL 
 BRITISH BANK. 
 
 It having been determined upon by the then Attorney- General (Sir R. 
 Bethell) that the Directors of the Eoyal British Bank should be proceeded 
 against criminally, the case, after very long preparation, became ripe for 
 trial, and was fixed for hearing before Lord Chief Justice Campbell and a 
 special jury, in the Court of Queen's Bench, Guildhall, City, on Saturday, 
 February 13, 1858, and was not brought to a close till Saturday, February 
 27th, having occupied the court thirteen days. Subjoined is, of course, 
 only a condensed report of the proceedings. 
 
 The following gentlemen were sworn on the jury : Mr. John Lowe, 
 St. Swithin's Lane, foreman; Mr. William Dimsdale Child, Finsbury Place 
 South ; Mr. Jonathan Chapman, New Broad Street ; Mr. Thomas Paget 
 Upper Thames Street ; Mr. Henry William Eipley, Mincing Lane ; Mr. 
 William Nesbitt, Upper Thames Street ; Mr. Augustus Toulmin, Great 
 St. Helen's ; Mr. Beaumont Hankey, Mincing Lane ; Mr. Henry Augustus 
 Bevan, John Street, America Square ; James Bowyer Harman, Bucklers- 
 bury ; Mr. William Medland, Brickhill Lane ; and George Hamilton, 
 Jenney, Lime Street all merchants. 
 
 The first information taken charged Humphrey Brown, Edward Esdaile, 
 Henry Dunning Macleod, Loran de Wolfe Cochran, Richard Hartley Ken- 
 nedy, William Daniel Owen, John Stapleton, and Hugh Innes Cameron 
 with a conspiracy to defraud. 
 
 The counsel on the part of the Crown were Sir F. Thesiger, Mr. Ather- 
 ton, Q.C., Mr. Serjeant Ballantine, Mr. Welsby, and Mr. Joseph Brown; 
 Mr. Hundlestone, Q.C, Mr. Kennedy and Mr. Bell appeared for Brown; 
 Mr. Edwin James, Q.C., and Mr. Aspland appeared for Esdaile; Mr. 
 Lawrence for Macleod ; Cochrau did not appear ; Mr. Serjeant Shee, Mr. 
 D. Keane, and Mr. Jacobs appeared for Kennedy ; Mr. Slade, Q.C., and 
 Mr. Kiugdon for Owen ; Sir F. Kelly, Mr. Bovill, Q.C., and Mr. Coleridge 
 for Stapleton ; and Mr. Digby Seymour and Mr. Bennett for Cameron. 
 
 The first count charged a conspiracy to publish and represent to such 
 of the shareholders as were ignorant, etc., that the bank and its affairs had 
 been, during the half-year ended the 31st of December, 1855, and then 
 were, in a sound and prosperous condition, producing profits divisible, 
 etc., the defendants well knowing the contrary, etc., with intent to deceive 
 and defraud such of the shareholders as were not aware of the true state of 
 its affairs, and to induce them to continue to hold shares therein, and to 
 become, or continue, customers and creditors of the bank. The count then 
 set out the following overt acts : 
 
 1st. Publishing a false report for the half-year to December 31, 1855, 
 declaring a dividend of six per cent., and that new stares would be issued
 
 FACTS, FAILURES, AKD FRAUDS. 281 
 
 at a premium. 2nd. Issuing new share?, knowing the bank to be in a 
 failing condition. 3rd. Publishing a balance-sheet for the year, false in the 
 amount of assets, in the provision for bad debts, and in the profit and loss 
 account. 4th. Paying a dividend when no profits were made. 5th. Buying 
 the bank's shares with the bank's money, to keep up the price. 6th. Pub- 
 lishing a circular, September 10, 1855, to the shareholders, to induce them 
 to buy new shares, when the bank was in a failing condition. 7th. Pub- 
 lishing an advertisement inviting persons to open accounts, when the bank 
 was approaching insolvency. 8th. Publishing an issue of 2000 more 
 shares, when the bank was failing. 
 
 The second count charged a similar conspiracy against the customers 
 and creditors of the bank, and contained seven overt acts similar to Xos. 1 
 to 7 in the first count. 
 
 The third count charged a similar conspiracy against the Queen's sub- 
 jects generally. The overt acts were similar to those in the first count. 
 
 The fourth count charged a conspiracy to cheat and defraud such of 
 the shareholders as were ignorant of the true state of the bank, by inducing 
 them by false pretences to purchase and hold additional shares in the 
 bank, the defendants knowing the bank to be in a bad and dangerous 
 condition and approaching insolvency, and that the shares were unsafe, and 
 might be ruinous to the holders. The overt acts were the same as Nos. 1 
 to 5 in the first count. 
 
 The fifth count charged a similar conspiracy against the Queen's sub- 
 jects generally. The overt acts were the same as Nos. 4, 5, and 7 in the 
 first count. 
 
 The sixth count charged a general conspiracy to cheat and defraud 
 John Arundel, and several other persons named, of their money. 
 
 Sir F. THESIGEU then opened the case as follows : Gentlemen, in 
 to discharge my duty on the part of the Crown, I cannot help ex- 
 pressing the great satisfaction I feel at the delay which has taken place in 
 the trial of this important case, which has enabled the public mind to calm 
 down to a state proper for a deliberate inquiry. While the events were 
 recent, and the minds of the public were excited, it would have been im- 
 possible to prevent a hasty condemnation, founded upon prejudice; but 
 now that the circumstances have passed away from the public mind, and 
 other proceedings with respect to joint-stock banks have attracted their 
 share of public attention, and the case of the British Bank directors is no 
 longer a single one, you will bo able to approach it with the impartiality 
 suitable to the gravity of the case and the character of the administration 
 of British law in an English court of justice. I will endeavour to confine 
 myself as closely as I can to the facts and circumstances under which the 
 Attorney-General felt it to be his duty to file the present information. 
 Those facts, though numerous, tend to a single point ; and I will endeavour
 
 282 PACTS, JAII/TEES, ASD I'EAUDS. 
 
 with fairness so to conduct you through them, as to facilitate your laboutS. 
 The information is for a conspiracy a charge which is sometimes regarded 
 as of a vague character. It applies to a case where persons combine 
 together to do an unlawful act, or who combine to do a lawful act by un- 
 lawful means. That definition will be sufficient for the present case, for it 
 will be found that a combination of persons to injure an individual, or the 
 public, is ground for the charge of conspiracy. The defendants were the 
 directors of a joint-stock banking company which has obtained an unhappy 
 notoriety, viz., the Eoyal British Bank. The bank was established under 
 a charter from the Crown, on the 17th of JSoyeniber, 1849. It continued 
 to carry on its business till it was closed on the 3rd of September, 1856, 
 when proceedings in bankruptcy were awarded against the company, and 
 its affairs are now being wound up by the Court of Chancery. Only four 
 of the defendants viz., Esdaile, Kennedy, Owen, and Cameron were 
 among the original promoters of the undertaking. A prospectus was issued 
 by the defendants to form the company, with a capital of 500,000, liberty 
 being reserved to increase the capital to 1,000,000. The prospectus con- 
 tained a remarkable passage, viz., that the charter should contain a proviso 
 for winding up the affairs of the bank, if it should be found at any time 
 that the losses amounted to one-fourth of the paid-up capital. It stated 
 that it was manifest the depositors could incur no risk, and that the share- 
 holders knew that their loss could not exceed one-fourth of the paid- 
 up stock, instead of their liability being, as in most banks, unlimited. The 
 seventy-first clause of the deed provided, that if at any time the directors 
 should find that the losses of the company had exhausted all the " reserve 
 fund," and also one-fourth of the capital paid up, they should call a special 
 general meeting, and submit a full statement of the affairs ; and that if it 
 should be declared by a majority of such meeting that the losses of the 
 company had exhausted the said fund, and also one-fourth of the paid-up 
 capital, the chairman should declare the company to be dissolved, except 
 for the purpose of being wound up. The capital proposed was stated to 
 be reduced to 100,000, of which only 50,000 was to be paid up ; and 
 upon that a charter was obtained, which unfortunately allowed the bank, 
 to use the special title of " Eoyal British Bank." Cameron was appointed 
 general manager, at a salary of 1250 for the first year, 1500 for the 
 second year, and 2000 for the third to the seventh year, together with an 
 allowance for house-rent, and an agreement for a commission on the profits 
 of the establishment. Notwithstanding the reduction in the amount of 
 capital, it appeared persons were slow in coming in with deposits. Some 
 could not pay ; others wished their deposits to be returned ; others gave 
 promissory notes ; and so it was that, the amount of capital being defi- 
 cient, the company could not open the bank in September, as intended. 
 An earnest appeal was then made to the public, particularly to the middle
 
 FACTS, FAILUBE3, AND FRAUDS. 283 
 
 and humbler classes, pointing out to them the advantages of the bank, 
 stating that the delay in commencing business arose from the necessary 
 alterations to be made in the bank premises, and that the directors pre- 
 ferred safety to speed. Out of the deposits paid into the bank, draughts 
 were drawn by which a sum of 7000 was paid to the solicitors, and 1100 
 to the directors themselves, for their services down to the time of granting 
 the charter. The capital was thus diminished, so that in November the 
 required capital of 50,000 was deficient by the sum of 4300. Under 
 these circumstances, the directors made an arrangement with Cameron, the 
 manager, by which he gave his promissory note for 4300 ; and haying, 
 bv means of these notes and others, made up a deficiency of 7-102 which 
 then existed, the defendants, Esdaile, Kennedy, and Owen, and others, 
 signed a certificate to the Board of Trade that the sum of 50,000 had 
 been paid up, and thus the bank was opened on the 17th of November, 
 1849, with very great solemnity. At that time Mr. M'G-regor was the 
 governor, and Mr. Alderman Kennedy the deputy-governor, which office 
 he resigned in January, 1850, but he returned in 1854. Owen was a di- 
 rector till 1854, when he went out of office till 1855, when he was re-elected, 
 and became deputy-governor. Cameron remained general manager down 
 to a period beyond that embraced by the information. Brown became a 
 director in 1853, and continued so until the closing of the bank. Macleod 
 was a barrister, and son-in-law of Cameron, and became a director in 
 August, 1853, and continued so till the end. The defendant Cochran has 
 left the country, and has not pleaded ; so that you will not hare to pro- 
 nounce an opinion on his case. The defendant Stapleton joined in July, 
 1855, and continued down to the closing of the bank, and took a very 
 active part in its affairs, and during the hitter part he was deputy-governor. 
 All the directors were gentlemen of great intelligence and experience, and 
 they were intrusted with the full control and management of the bank 
 under the deed, which prescribes their duties in the most minute manner. 
 By the twenty-ninth clause of the charter, the directors were required to 
 sign a declaration pledging themselves " to observe strict secrecy on the 
 subject of all transactions of the company with their customers, and the 
 state of accounts with individuals, and in all matters relating thereto ;" 
 and it was provided, " that every such director should, by such declaration, 
 pledge himself not to reveal or make known in any way whatsoever any of 
 the matters or affairs which might come to his knowledge as a director of 
 the company, except when officially required so to do by the court of 
 rs for the time being, or by any general or extraordinary meeting of 
 the company, or by a court of law." By the thirty-sixth clause it was 
 provided, " that the court of directors should cause all necessary and 
 ; books of accounts to be provided and kept," in which " true, fair, 
 and eijAicit entries should be made of all receipts, payments, transactions,
 
 284 TACTS, FAILURES, AND FBATJDS. 
 
 and dealings" of the company, and of " all profits arising therefrom," etc. ; 
 that once, at least, in every month, they should settle and adjust and balance 
 the said books, and publish as the court should direct " a full, true, and 
 explicit statement and balance-sheet, exhibiting the assets and liabilities of 
 the company, and the amount and nature of the capital and property 
 thereof, and the then fair estimated value thereof, and the amount of the 
 company's negotiable obligations then in circulation, and the profits and 
 losses of the company, and all other matters and things requisite for fully, 
 truly, and explicitly manifesting the actual state and position of the affairs 
 thereof." By the forty-seventh clause, at every general meeting the direc- 
 tors -were " to exhibit a true and accurate balance-sheet and report of the 
 profits and accumulations of the joint stock, or capital, from the time of 
 the commencement of the business of the company, or the end of the 
 period included in the last preceding report," etc. By the sixtieth clause, 
 the directors were half-yearly to declare a dividend " out of the clear profits 
 of the company then actually accrued and reduced into possession." By 
 the sixty-third clause, " the net profits, after making deduction and allow- 
 ance for bad and doubtful debts, should, after setting apart such proportion 
 of such profits as the directors should think requisite for forming and 
 maintaining the said surplus fund, be divided among the proprietors," etc. 
 By the seventy-first clause, it was provided that if at any time the directors 
 should find that the losses of the company had exhausted the surplus 
 fund, and also one-fourth part of the paid-up capital, they should call a 
 special general meeting of the proprietors, and submit to them a full state- 
 ment of the affairs of the company ; and if the majority of such meeting 
 should resolve that the losses of the company had exhausted the said fund, 
 and one-fourth part of the paid-up capital, the chairman should declare the 
 company dissolved, except for the purpose of being wound up. The learned 
 counsel proceeded to observe that, with such powers for the control of 
 their affairs, it was difficult for the governors to go astray. The board 
 meetings were held weekly, and the "Finance Committee" met daily, and 
 there was also a " Past-due Bills Committee," as well as other committees 
 for special purposes. "What, then, was the conduct of the directors, and 
 how had they fulfilled their trust ? The charge now made against them 
 was, not that they engaged in large and ruinous speculations, and incurred 
 losses which by common prudence might have been avoided, but that, 
 having by their mismanagement brought the bank into a state of hopeless 
 insolvency, they, by a series of frauds and misrepresentations, deceived the 
 shareholders, and customers, and the public, and led them to believe the 
 bank was in a sound, safe, and flourishing condition; and so induced them 
 to continue customers and shareholders of the bank, to the utter ruin of 
 the fortunes of many. I will, therefore (continued the learned counsel), 
 proceed to point out to you 1st, what was the state into which the bank
 
 FACTS, FAILURES, A>*D FBAUDS. 285 
 
 was brought by mismanagement ; 2ndly, I will show that the defendants 
 were aware of its condition ; and, 3rdly, I will ask you whether, with that 
 they did not make fraudulent misrepresentations, and do frau- 
 dulent acts, in order to conceal the true state of its affairs ; and whether 
 thev have not thus brought themselves within the charge of conspiracy ? 
 First, then, what was the state of the bank ? It will be found that all tho 
 hopeless debts which had been incurred, instead of being represented in 
 their true light, as they ought to have been, were represented as assets of 
 the company. It was the duty of the directors to see that the bills dis- 
 counted should be those of solvent persons, and that loans should be 
 advanced only on sufficient security ; but it will be found that at an early 
 period this duty was entirely disregarded. The directors themselves were 
 allowed to have large advances on very indifierent securities. Thus 
 M'Qregor, the governor, had an advance of 13,700, the whole of which, 
 except about 700, was lost. Mullins, the solicitor and first secretary, had 
 10,000, and he died hopelessly insolvent, and not a fraction had been 
 paid. Cochran had 10,300, and of that 7000 had been lost. The cases 
 of Cameron and Brown were extraordinary. Cameron's debt originated 
 in a note for 4300, which he gave to make up the deficiency in tho paid- 
 up capital. That note was discounted by the bank, and formed the first 
 item in the account opened against him. The amount swelled to the sum 
 of 36,000, of which 33,000 had been wholly lost. The directors were 
 not allowed to purchase shares with the bank's money, but they discounted 
 Cameron's notes to the extent of 10,600, to enable him to purchase 
 shares. In February, 1855, Cameron was taken ill, and Esdailo took his 
 place. At that time Cameron's debt amounted to 27,000. The learned 
 counsel here minutely detailed tho steps by which Cameron's debt at length 
 reached 36,000. As security, Cameron had mortgaged to the bank pro- 
 perty at Dingwall worth 6000, but already mortgaged for 3000 ; he had 
 assigned two debts, which were denied, and certainly were not due ; ho 
 bad assigned another debt where none was due, and eleven policies of life 
 assurance, of which three had lapsed, three had been sold, three had been 
 assigned to his son-in-law, and two pledged to their full value. The caso 
 of Humphrey Brown was even more remarkable. He became a director 
 in February, 1853, when he took some shares, for which ho paid with his 
 promissory note. He then opened an account by paying in 18 11s., and 
 on that very day ho borrowed 2000 of tho bank. Within three months, 
 he had borrowed other sums of 3000 and 4000, making a total of 9000. 
 The learned counsel hero described all tho steps by which Brown purchased 
 his ships with money borrowed from the bank, and then borrowed more 
 money from the bank on the security of tho ships, which ho hud mortgaged 
 to Walton, the governor. Walton had become liable to the bank for tho 
 Bum of 44,000, but an arrangement was mado by which Walton should
 
 286 TACTS, PAII/CRES, A-H) 
 
 be relieved of his liability on his surrendering his security on the ships to 
 the bank, and Brown agreeing to stand in his place for better or for -.vorse. 
 Brown was required to register these ships in the name of the bank ; but 
 instead of that, he mortgaged two to the Gloucester Banking Company, 
 and sold another. By these means his debt amounted to 74,000, upon 
 which the ultimate loss was 40,000. In 1851, the Islington Cattle Com- 
 pany had obtained advances, and a bill for 8600 was accepted by one 
 Harrison and other directors. Harrison was the only solvent person, but 
 lie went to France, and the company authorized a person named De Tape 
 to sue him. De Tape opened an account with the bank, and obtained 
 10,000, but, having failed in his suit, he died, and his estate could not 
 pay. The bill for 8600 however, was retained by the bank, and though 
 it was worthless, it regularly figured among the " assets" of the bank until 
 its close, as did also De Tape's debt of 1143. The same course was pur- 
 sued in reference to the debt of Oliver, of Liverpool. The learned counsel 
 then gave the history of the advances on the Welsh mines, by which a loss 
 of 120,000 had accrued to the bank in September, 1856. Of the 112,8 17, 
 the amount of bills held by the bank at the end of the year 1855, 26,501 
 were bad, 67,372 were doubtful, and only 18,974 were good. The bank 
 had begun business with a capital of only 25,000 ; it had made no profit, 
 but had lost more than 100,000 in the Welsh mines, and from 80,000 
 to 90,000 in bad or doubtful bills, and yet the directors declared divi- 
 dends of four, five, and six per cent, till the very last. The next question, 
 then, you will have to consider will be, whether the state of things into 
 which they had brought the bank at the end of 1855 w as known to the 
 defendants. They attended the meetings of the Board, of the Finance 
 Committee, and of the Past-due Bills Committee. The learned counsel 
 here referred to a letter written by Esdaile, wherein he stated that bills of 
 " men of straw" had been discounted by the bank, and to an action brought 
 against the bank by a person named Clarke ; though the action was with- 
 out foundation, the company, to prevent exposure, compromised it by 
 paying the sum of 2000, and 267 for costs. Mr. Walton, the governor, 
 had become indebted to the bank in 60,000, and, being refused further 
 assistance, he, on the llth of January, wrote such a letter to them that it 
 was difficult to exonerate the defendants. It was addressed to Mr. Came- 
 ron, and was marked " Private," and was as folbws : 
 
 " I was much surprised to hear from my son that you refused to dis- 
 count any more bills for us. I beg to tell you plainly that it is absolutely 
 necessary that you should continue to discount such bills as we receive 
 from persons who owe us money, not only to prevent us stopping payment, 
 but for the safety of the bank itself, which must fall if the governor and 
 two of the directors fail, with whom will also stop six or seven other per- 
 sons connected with the bank. You are not acting the part of a prudent
 
 FACTS, FAILUBES, A>T> FBAUDS. 287 
 
 man of business in thus stopping us in our energetic courao of gradually 
 liquidating and withdrawing the bills from the bank," etc. 
 
 The learned counsel then reviewed the history of the bank from the 
 IGth of January, 1855, when it was resolved that an account should be 
 drawn up of its assets, down to the 27th of March, 1855, when Brown 
 called the attention of the board to the fact that they had incurred losses 
 to the extent of one-quarter of their paid-up capital, and told them it was 
 their duty to call a meeting of the shareholders, and that if they carried 
 on the bank any longer, it would be on their personal responsibility. At 
 that time Brown's debt was 77,000, but he was not satisfied, and felt that 
 he had got the directors in his power. Alderman Kennedy was present at 
 that meeting. It would be said he attended very little, being at the time 
 sheriff for London ; but that plea would not avail, for by a memorandum 
 dated the 15th of May, 1855, which Alderman Kennedy gave to Cameron, 
 it would appear he knew well the state of affairs. (The learned counsel 
 here read a letter written by Macleod to Cameron on the 2nd of October, 
 1855, in which he stated that their balance in the Bank of England had 
 been reduced from 57,000 to 25,000 ; that the 4th was upon them, and 
 that though they might make up 25,000, that was their " last shot.") 
 Stapleton became a director on the 31st of July, 1855, but he was not active 
 till October. He was a gentleman of station, a barrister, and M.P. ; and 
 when he became a director he could not have been aware of the condition 
 of the bank. I don't complain of him that he brought the bank into that 
 condition, but that, having become acquainted with the state of its affairs, 
 he gave the authority of his name and station to assist in deceiving the 
 public. He was a member of the Finance Committee, before whom, the 
 past-due bills-book was brought, and he was present when Oliver's estate 
 was reported as liaving paid 3s. 6<J. in the pound, when the estate of 
 Mullins was reported insolvent, and Brown's account was reported as 
 insufficiently ecured. The resolution to realize Brown's securities was 
 drawn up by Stapleton. I now proceed to the all-important and most 
 painful part of the inquiry, viz., that which relates to the false represen- 
 tations made from time to time by the directors. Though the bank had 
 never been from the beginning in a sound state, and ha.l made no profit, 
 the directors declared dividends out of capital, or rather out of the deposits. 
 In 1^55 they issued new ehares, and published advertisements to induce 
 people to become purchasers. A person named Marcus, who wished to 
 purchase some shares, wa induced by Esdaile's description of the flourish- 
 ing condition of the bank, in Kennedy's presence, to pay 1000 for twenty 
 ol the new shares. In a similar manner a gentleman named William Is'icol 
 was induced by Kennedy to purchase some new shares at pnr on the 10th 
 of September, 1855. Brunton, a poor man, removed ah 1 his money from 
 a savings bank, and purcliubud shares oil the assurance that the British
 
 288 FACTS, FAILURES, AlfD FRAUDS. 
 
 was as safe as the Bank of England, and lost all as a necessary consequence. 
 On the 10th of September, 1855, a circular was published, offering the new 
 shares at 5 premium ; but when a tradesman named Cantrill applied, and 
 vras unwilling to pay a premium, he was informed, by the authority of 
 Macleod, that he could have some at par, and twenty-eight old shares, 
 which were in the bank, were sold to him under the pretence that they were 
 the property of a deceased shareholder. The general meeting on the 1st of 
 February, 1856, was now approaching. Brown had given the directors a 
 second warning by a letter on the 22nd of December, 1855. One director, 
 Valiant, had retired, rather than face the meeting. Esdaile became alarmed, 
 and, on the 15th of May, 1856, he wrote a letter to Owen, the deputy- 
 governor, in which he said : 
 
 " If you or the general manager cannot satisfy me by personal assur- 
 ances from each of my co-directors, that they will support me with their 
 presence and countenance, on our orthcoming annual meeting, I shall 
 abstain from entering the court-room again ; and in that case you will, if 
 you please, officially place the accompanying notice of my resignation in the 
 hands of the general manager. Our highest policy is to present a solid 
 front to the public ; our weakest conduct is to dangle a rope of sand before 
 them." 
 
 The postcript ran thus : 
 
 " We want courage and coolness, and with God's blessing our difficulties 
 will be surmounted." 
 
 Sir F. THESIGEB then referred to the balance-sheet laid before the 
 general meeting on the 1st of February, 1856. The balance-sheet was laid 
 before the directors by Cameron, and with it an explanatory tabular state- 
 ment. In the " assets " was this item : " By loans on convertible securi- 
 ties for short periods, advances on cash credit accounts, bills discounted; 
 etc., 986,272 Us. Id" The tabular statement was the interpreter of that 
 account, and it showed that all the debts of the bank, good, bad, and indif- 
 ferent, went to swell up the amount of " assets." There was the debt of 
 the Islington Cattle Company, 8600 ; and De Tape's debt, 1193 4s. 4d. 
 There was the "suspense eccOunt," which was the receptacle of all items 
 which it was desirable to conceal such as purchases of shares, advances 
 on Welsh works, costs of actions, etc. There was also the "adjusting 
 interest account," amounting to 17,769, which consisted of interest upon 
 bad debts. There were also the past-due bills, against which, in the hand- 
 writing of the directors, there was written "bad," "hopeless," "let him 
 be executed," etc. On the other side of the balance-sheet there was this 
 item " Gross balance for the year ended 31st of December, 1855, after 
 making a provision on account of bad debts, and paying interest (25,320 
 8s. 3d.) on deposits, promissory notes, and balances, 30,551 2s. 7d." The
 
 FACTS, FAILURES, AND FBATJDS. 
 
 '>ts being, in fact, ten times the amount of the gross profit?, the direc- 
 tors declared a dividend of 6 per cent., while, according to the charter, they 
 could only declare a dividend out of profits accrued and in possession. At 
 the meeting at which that balance-sheet was presented, Esdaile was in the 
 chair, and all the other defendants were present. Cameron read the report 
 and the balance-sheet, the shareholders following him with the reports 
 whieh they had received. There was nothing to show that the bank had 
 not the " assets " to the extent stated, in all 1,178,812 9s. 8d. The ques- 
 tioning was therefore mild, and the remark was made that it was rather 
 imprudent to offer the new shares so low as at 5 premium. The 
 evil day being thus tided over, the first thing the directors did was, to 
 advertise in the newspapers, and to force the new shares on the public. 
 Kennedy induced a druggist named Dakin to buy twenty shares for 1000; 
 but Dakin, having in the meantime heard of the Welsh mines, would not 
 accept the transfer, and insisted on the bank paying the money back, which 
 they did. The Joint- Stock Journal then began to publish articles on its 
 affairs ; but the directors said the charges were false and malicious. The 
 learned counsel here described minutely the particulars of several transac- 
 tions, and the shifts to which some of the defendants, particularly Esdaile 
 and Cameron, had resorted to keep up the credit of the bank. A clergy- 
 man named Gosset, who had purchased twenty shares, threatened that, if 
 the directors would not take his shares back, he would convene a meeting 
 of shareholders, and under this threat they were repurchased by Sydney 
 Kennedy in his own name for 980, and that amount went into the " sus- 
 pense account." Another clergyman, named Huston, being dissatisfied, 
 entered into a contract for the sale of his shares ; but, unfortunately, in tho 
 meantime he went to the bank and saw Esdaile, and the result was that he 
 went back and paid 10 to be off the bargain, kept his shares, and was 
 ruined. Thus the bank struggled on, till at last the evil day overtook them, 
 and on the 3rd of September, 1856; the doors were closed, and bankruptcy 
 an 1 the Court of Chancery fell upon them. It was then found that their 
 liabilities were 700,000, and assets only 300,000, leaving a deficiency of 
 400,000. The learned gentleman concluded an address of nearly five 
 hours in these words : Gentlemen, you can now appreciate the truth of 
 the balance-sheet presented on the 1st of February, 1850, in which the 
 defendants represented their affairs to bo in a most flourishing condition. 
 
 pread ruin has been scattered over the whole of the country, houses 
 have been brought to destruction, families have been plunged from affluence 
 into poverty, the hard earnings of industry, collected by long labour, have 
 
 : 'irely lost, and every one who has had connection with this bank 
 has had to rue the day in which he trusted to the assumed fidelity and 
 truthfulness of its directors. In conclusion, I must beg of you to keep the 
 
 - marks of the case steadily in view ; ar.d then to ask yourselves, 1st,
 
 200 TACTS, FAILURES, A^D FBAfDS. 
 
 What was the condition of the bank ? 2nd, Could the defendants have 
 been ignorant of it ? And, 3rdly, Had not the defendants, by false, frau- 
 duleni-, and deceitful acts and contrivances, induced the public and the 
 shareholders to believe that the institution was solvent, when in fact it was 
 not so ? 
 
 Mr. Paddison, the secretary and solicitor to the bank, was the first 
 witness called, and his examination occupied several days. 
 
 A printed report was put in, which had been drawn up by Cameron on 
 the 29th of October, 1819, and laid before the directors. It was entitled, 
 " The Supplemental Eeport to the Court of Directors of the Bank on the 
 Organization of the Establishment, the respective Duties of its Members 
 and Employes, and their Remuneration," etc. This document, which was 
 of very great length, was read throughout. It began with the observation 
 that " All good government depends on good laws well administered." It 
 then went on to say, that " it has been said that a bad law well executed is 
 better than a good law ill. However this may be, it is certain that the 
 best principles are of little avail unless they are practically, intelligently, 
 and faithfully acted on." It then proceeded to expound the principles en 
 which the Royal British Bank had been founded, and briefly to review its 
 progress from its first conception. It stated that the Royal British Bank 
 was founded on what was called " the Scottish system;" but it observed 
 that that was hardly a correct definition, for there never had been in Scot- 
 land, nor anywhere else, a bank embracing all the objects, or working with 
 the same methods as were intended by the Royal British. Having de- 
 scribed the original idea of the bank, the report said it had no better title 
 to be reckoned Scottish than that the party propounding it was a Scotch- 
 man ; and that the propounder of it knew nothing theoretically or practi- 
 cally of the subject he ventured to handle. The idea was to get up an 
 ''Exchange Bank," working also cash credits. These notions, however, 
 gave place to others of apparently a higher character, viz., the formation 
 of a bank which should afibrd assistance not only to the magnates of the 
 metropolis, but to the merchants and manufacturers of Liverpool, Bristol, 
 Manchester, etc. ; and at the same time to fence its proprietary with limited 
 responsibility. But the report said it was early suggested " that the lowest 
 sum allowed by law should be taken for a commencement, if power for its 
 gradual increase would be conceded by Government." 500,000 was 
 adopted as the least sum that should be named ; but experience soon con- 
 firmed the belief that this sum could not be obtained in the ordinary way, 
 " nor until the public confidence was won by the exposition of principles 
 and objects calculated to benefit the masses of the people rather than to 
 make gain for a small body of proprietary ; and by the sober, steady, and 
 honest working out of those principles, testing the tree by its fruit." 
 Twenty years' experience of banking in Scotland, and four or five years of
 
 FACTS, FAILUr.ES, AND FEAUDS. 291 
 
 varied business in London, had proved that " an establishment taking a 
 middle place between the savings and ordinary banks, which could hold 
 out n hand to the supporters of each the right, probably, to the humble, 
 and the left to the great was a desideratum in the metropolis." The 
 report then asked, "What should be its principles? This was the funda- 
 mental problem!" It observed that the "real object" of all the existing 
 banks, both private and joint-stock, was to " make gains for their promo- 
 ters and shareholders." The savings-banks were devised by a Scottish 
 clergyman for the benefit of the poor, but, though the Government allowed 
 them a higher rate of interest than the joint-stock banks did, it was found 
 that the security was fallacious, and for the prudence or honesty of the 
 management there was no security whatever, for the noble names of trus- 
 tees and managers were little better than " decoy ducks." To meet the 
 defects thus pointed out the Royal British Bank was established. Its 
 principles and practice were, it said, not to be found in any existing bank. 
 They were neither exclusively Scotch, nor English, nor confined to any 
 one of the four classes of banks public, private, exchange, or savings- 
 banks. The leading idea of the bank was to make the surpluses of the 
 humble and middle classes active, instead of passive ; so that in no long 
 time they might help even the merchant princes, as well as the humblest 
 shopkeeper. The views of the report were first reduced to writing in the 
 memorial addressed to Government for the privilege of gradually increasing 
 the capital from 100,000 to 2,000,000 ; and the concession of that privi- 
 lege was the distinguishing feature of the legal constitution of the bank. 
 Such being the " moral constitution " of the bank, it stood alone, and 
 ought to succeed ; and if the public voice, as expressed in the press, and by 
 applications with a view to business, could be taken as criteria, it would do 
 to. The report then proceeded at great length to explain what would be 
 the practice of the bank, and to lay down the duties and remuneration of 
 its various officers. 
 
 Mr. Richard Paddison was then examined by Mr. ATHERTON. He said 
 that before the year 1843 he was in partnership with the late Mr. Mullius, 
 till his death on the llth of December, 1853. Mr. Mullins was solicitor 
 to the British Bank at its formation ; and afterwards the firm acted as 
 solicitors and secretaries to the bank. Ho (witness) from time to lime 
 attended, and took minutes. In March, 1849, a memorial was presented 
 to the Board of Trade, praying for a charter. Witness then produced the 
 deed, dated the 2nd of July, 1819, and the charter, dated the 17th of Sep- 
 tember, IS lit. 
 
 Gatherer, the share registrar of the bank, was here called to prove 
 that the four defendants, Esdaile, Kennedy, Owen, and Cameron, executed 
 the dt-ed before the date of the charter, but ho said he could not do so, 
 though he saw signatures 011 the deed in 1819, about November.
 
 292 TACTS, FAILURES, A>'D 
 
 Mr. Paddison produced the petition for the charter, signed, among 
 others, by Kennedy, Owen, Cameron, etc., and stated that a supplemental 
 charter, dated the 23rd of February, 1855, was granted. A supplemental 
 deed was also prepared and executed on the 12th of June, 1855. At the 
 time the charter was granted, Esdaile, Kennedy, and Owen were acting as 
 directors, and Cameron as general manager. Esdaile continued to act down 
 to the close of the bank. Kennedy went out in January, 1850, and re- 
 turned in November, 1854, and continued till the end. Owen went out in 
 1854, returned in February, 1855, and continued till the 20th February, 
 1856. Cameron continued as general manager till the 22nd of July, 1856. 
 Macleod became a director in August, 1853, and remained till the end. 
 Stapleton became a director on the 31st of July, 1855, and continued to 
 the end. The certificate to the Board of Trade, dated the 16th of Xovem- 
 ber, 1849, was put in, signed by Esdaile, Kennedy, Owen, and others. It 
 stated that all the shares had been subscribed for, that the deed had been 
 executed, and that half of the subscribed capital had been paid up. The 
 acknowledgment from the Board of Trade was also read. From that time 
 they carried on business as bankers till they closed in September, 1856. 
 The bank was in Tokenhouse Yard, but afterwards they established branch 
 offices. The Strand and Lambeth were the earliest, then Islington ; there 
 were six in all ; the last was the Holborn, at the end of 1855, or beginning 
 of 1856. I attended the board and took minutes. As secretary I kept 
 minutes of the court, and carried out some of the orders, and conducted 
 the correspondence. The officers were the general manager, the accountant, 
 cashier, bill-clerk, and tellers at the counter in the public office. The ac- 
 countant and cashier had assistants. There was my own office, a registrar, 
 an assistant-secretary, and private secretary to the manager. There was 
 also a chairman, or governor, and deputy-governor, both of .whom were 
 taken from the directors. The number of directors varied. The minimum 
 number by the charter was eight. That number was generally kept up. 
 Auditors were appointed by the shareholders twice a-year. Mr. Kennedy 
 was the first deputy-governor. Esdaile was governor from February, 1855. 
 Owen, also, was deputy-governor. Stapleton was deputy-governor from 
 February, 1856, till the close. There were committees which sat, and I 
 kept minutes. I kept no minutes of the discounts of the finance committee. 
 A certain number of directors met every day by rotation. There were two 
 directors for the finance committee. There was a weekly meeting of the 
 board, which they called a court. General meetings took place half-yearly. 
 One in February was called the yearly meeting, and the one in August the 
 half-yearly meeting. Reports and a balance-sheet were presented at those 
 meetings by the directors. This prospectus was issued by the bank shortly 
 after the charter was obtained. (It was read, and contained a passage 
 stating it was manifest the depositors could incur no risk, and that the
 
 PACTS. rur-UKES, AKD FRA.UDS. 293 
 
 >lders must see that they could incur no liability beyond one-fourth 
 of the capital paid up, in<U-ad of their liability being, as in most banks, 
 unlimited.) A meeting of the directors was held on the 12th of October 
 .hen Cameron made a report of the deposits in arrear, amounting to 
 760. Eight of the parties had signed the deed. On the 19th of October, 
 Esdaile, Kennedy, Owen, Cameron, and others were present at a meeting 
 of the board, when it was resolved that 500 should be given to Mr. 
 M'Gregor, the governor, for his services in the formation of the bank, and 
 that GOO should be divided among the directors for their services. On 
 the 23rd of October, a resolution was passed to return the sum of GOO to 
 the Newcastle subscribers. On the 26th there was another meeting, at 
 vrhich Esdaile, Owen, Kennedy, and others were present, and Cameron 
 made a report of certain instalments due from a Mr. King. On the 16th 
 of November, 1849, a meeting was held, when it appeared the capital stock 
 paid on 1000 shares was 50,000, and 7402 was held in securities, and 
 was in the bank. Mr. Paddison then read the minutes of the 
 board, and correspondence relating to the advances which the bank made 
 from time to time on the Welsh mines, viz., the Cefn, Garth, and Briton 
 Ferry Mines, in Glamorganshire, and on the Langley Heath Mines, in 
 Staffordshire, and Shropshire. This occupied nearly eight hours. The 
 whole of the proceedings were of the most uninteresting character, but the 
 material point to which all the evidence tended was, that as much as 
 s had been advanced on these mines by a banking company which 
 had been induced to take the property into their own hands, and at last 
 found it unsaleable. 
 
 The report of Mr. Clark, who had taken the mines for a short time, 
 but who found it necessary to give them up, was put in and read. It stated 
 that, though he had given them up for want of capital, he entertained a 
 higher opinion of them than he did when he first entered upon them ; that 
 nothing but capital was wanting to make the Cefn mine one of the most 
 prosperous in the kingdom, and produce from 10,000 to 20,000 a-ycar. 
 rred particularly to the profit which would result from the shops, 
 " if Lord Palmerston did not put them down." 
 
 Mr. Paddison was recalled, and stated, among other things, that, in 
 September, 1S,">4, Cameron was instructed to visit the Welsh works, which 
 he did, and reported thereon to the board. Mr. Thompson was then ap- 
 pointed manager of the works, at a salary of 1000 a-year. An application 
 was made to Lows Patent Copper Company respecting dividends on some 
 shares which the bank held, but nothing was realized by the bank from 
 those shares. Several more reports and minutes were read on the state 
 and prospects of the Welsh mines, and among the rest a memorandum, 
 dated the 18th of January, 1855, showing that the disbursements made ou 
 account of the Welsh mines in all amounted to the sum of 84,675 10*. 8d.
 
 TACTS, P 
 
 Thompson's engagement as manager of the works ended on the 1st of May, 
 
 1855, when the directors resolved that Mr. Beveridge should see the de- 
 fendant Brown at his private residence, aiid talk over the affairs of the 
 mines in an unrestrained manner. From a letter written by Brown on the 
 8th of June, 1855, it appeared that he (Brown) and Monro (Cameron's 
 private secretary) had taken the management of the works. On the 18th 
 of September, 1855, the directors resolved that they would give notice to 
 give up possession of the Garth mine and works on the 29th of September, 
 
 1856, which notice was accordingly given, and the fact reported to the 
 directors. The witness also stated that, on the 28th of November, 1855, 
 he received a letter from the solicitor of the mortgagees of some property 
 at Liverpool, upon which the bank also had security for 5000 ; and that 
 he reported to Cameron and the board that there was no hope of obtaining 
 any part of the amount due. On the 4th of December, 1855, Esdaile made 
 an oral report on the Welsh mines at a meeting of directors, and promised 
 that in a few days he would do it in writing. It appeared that Mr. Beve- 
 ridge had made a very full report on the Welsh mines, and also Mr. Strick 
 of Swansea had done the same, from which it appeared that he took a very 
 favourable view of the value of the works. He made a calculation to show 
 that they might produce 16,347 a-year, and in a certain contingency 
 22,000. 
 
 Sir F. THESI&EE then put in a letter written by Esdaile in reference to 
 Strick's report. It was marked "Private," and was as follows : 
 
 " Eoyal British Bank, Threadneedle Street, June 3, 1856. 
 " Dear Sir, We note your observations respecting the rival qualifica- 
 tions of Mr. Strick's brother and Mr. Waters for the Swansea agency. We 
 are inclined to adopt your impression as to the superior fitness of the latter 
 party for the peculiar duties involved in the agency. But there are other 
 considerations which seem to us, under present circumstances, to render 
 it impolitic to disregard the application of Mr. Thomas Strick on behalf of 
 his brother. You will readily understand the motive referred to, which 
 seems to render it expedient that we should at present put up with Mr. 
 Strick, jun.'s services. You are aware that our object is to rid ourselves at 
 the first favourable opportunity of the entire concern. Mr. Thomas Strick 
 has aided our object by certifying to the full and minute report which with 
 so much ability you have drawn up, and which is now in Mr. Yenning's 
 hands. Mr. Strick's goodwill may still be of service to us. You will see 
 the kind of consideration which is influencing us in therefore advising the 
 appointment of Mr. Strick in preference, at present at all events, to Mr. 
 'Waters. If we succeed in transferring the property to other hands, the 
 question of the fitness of the agent will no longer be of moment to us. 
 Will you, if you please, communicate this confidentially to Mr. Stewart
 
 FACTS, FAILUHES, AXD FUAUD3. 295 
 
 that he may be in possession of our private reasons. If, however, you or 
 he hare counter- reasons to propose, favour us with them. Tell Mr. ^ 
 that I am in receipt of his yesterday's communication. 
 
 " I am, dear Sir, yours obediently, 
 
 "EDWARD ESDAILE." 
 
 Mr. Beveridge was then called. He said he had been appointed inspec- 
 tor of the "Welsh works under the deed of 1851, and also manager, when 
 the bank took the works into their own hands. He prepared reports and 
 balance-sheets, which he submitted to the directors. They were eight in 
 number, from January, 1852, to the end of 1855. He produced the balance- 
 sheets, and identified five as having been sent by him to the directors, but 
 he could not speak to the last three. There had been a loss upon tho 
 works. The total loss he estimated at 14,301, but in cross-examination 
 he stated that some portion of this was due to outlay for improvements. 
 The witness said he concurred in Strick's report ; and it appeared from his 
 own original draught that the witness estimated the annual produce might 
 be made equal to 26,000. 
 
 Mr. Paddison was then examined to prove the debt owing to the bank 
 by the Islington Cattle Company. In January, 1851, the latter company 
 had applied to tho bank for a loan of 6000 ; and the bank advanced the 
 money, on the promissory note of a Mr. Harrison, and other parties con- 
 nected with tho latter company. The bank directors at the same time 
 returned their thanks to the borrowers for giving the bank the preference. 
 On the 2 tth of March, 1851, a further sum of 3500 was advanced on 
 another note given by the same parties. Both these notes when due were 
 dishonoured ; but they were renewed from time to time till March, 1852, 
 when the sum of 1000 having been paid, there was still a sum of 8GOO 
 owing, for which another note was given. A good deal of correspondence 
 was here read, from which it appeared that the note in question had been 
 endorsed to one De Tape, who sued Harrison in the French courts upon 
 the note; but in the result the French court held that DeTape was not the 
 real endorsee of the note, entitled to sue, but only the agent of the bank. 
 Judgment was accordingly given against De Tape, who soon after died 
 insolvent, and owing the bank 1325 Is. 10d., towards which the bank 
 afterwards received 501 6s. 2d. from De Tape's estate, leaving a balance 
 due from him of 821 1*. 8d. No money was recovered on account of the 
 8600 note, which was returned to the bank. The witness was next ex- 
 amined in proof of a debt owing to the bank by Mr. John Gvvvimc, who 
 died in debt to the bank to the extent of 13,416 Us. Cyd. He said 
 Gwynne was one of the original projectors of the bank in 18 li). On (he 
 6th of February, 1850, he made an application to tho hank for casli 
 of 3000. The request was acceded to. Qwynne's letter wa read, in
 
 29G TACTS, rAILTJBES, AND FEATTDS. 
 
 which be said, " ITe did not ask the advance as a favour, but as a right." 
 He gave his promissory note for 3000 at three months, and deposited tho 
 lease of the Bush Mill Ironworks. The nest year he applied for 5000 
 more, on the security of a bill drawn on a person named Anderson. He 
 obtained the money, and handed the bill to the bank, but it was not paid 
 when it became due. The bills were renewed, and some securities were 
 deposited, but the witness believed nothing had ever been realized upon 
 them. Gwynne died after the failure of the bank in 1856, and according 
 to one account, the sum of 11,384 was due, and according to another, in 
 Cameron's handwriting, the debt owing was 13,416 11s. Gwynne's debt 
 had been from time to time before the directors, and a letter was read 
 addressed to him by Esdaile, on the 28th of February, 1855, requesting to 
 know what steps he intended to take respecting it. The witness was then 
 examined in proof of a debt owing to the bank from Mr. Mullins, the 
 former solicitor and secretary. It appeared that Mullins died on the 13th 
 of December, 1853, and the fact being brought to the notice of the direc- 
 tors, they passed a resolution expressing their lively recollection of the zeal 
 of that "most earnest and zealous supporter of the bank." The witness 
 stated that there were several bills on which Mullins was liable, but there 
 was no chance of any of them being paid. He stated that Mullins had 
 obtained 1000 and 300 from the bank in the name of Mrs. Goodrich, 
 and had deposited some deeds belonging to Mrs. Goodrich as a security; 
 but that, after Mullins's death, application had been made to the bank for 
 the deeds, upon the ground that Mullins had no authority either to borrow 
 the money, or to deposit the deeds. The directors referred the matter to 
 n committee, and, upon their reporting that there was no evidence at all to 
 show that Mullins had any authority for what he had done with the deeds, 
 the committee recommended that they should be given up. The directors 
 adopted the report, and restored the deeds. The witness said a claim had 
 been made on Mullins's estate, and he believed the bank would get some- 
 thing, but not on the personal securities. The bank had securities for 
 4000, but all beyond that amount was a simple contract. In reference to 
 this part of the case 
 
 Sir F. THESIGEB put in the following letter, dated the 18th of February, 
 1854, and written by Esdaile to Cameron : 
 
 " Another of our late friend's irregularities has just come to my know- 
 ledge. I was told by Mr. Greville Fletcher, secretary to the Wandle Com- 
 pany, that a bill drawn upon him as an official of the said company by M., 
 for the purpose of making a payment due by the latter to the editor of the 
 Sun newspaper, and discounted at our bank, has just matured, and that the 
 ordinary notice has been served upon him. Fletcher was induced to accept 
 the bill by the assurance that it was on behalf of the company. He has no 
 resources to enable him to meet the bill, and had no idea that he ran risk
 
 TACTS. FAILURES, A>U FBAUDS. 207 
 
 of compromising himself personally by acceding to M.'s request. lie has 
 requested me to lay this before you, which I promised to do, without mak- 
 ing any observation to him on the transaction. I am at a loss to under- 
 stand how such a bill could have been cashed without the initials of your- 
 self or some member of a finance committee. Surely a grave charge lies 
 against the head of the department in question. In the present, as in 
 Thompson's case, the names of men of straw have been discounted, without 
 any authority whatever." 
 
 Mr. Paddison was then examined to prove the debt owing by Hum- 
 phrey Brown to the bank. He said that in February, 1853, Brown became 
 a director. He was qualified as a director by taking a transfer of ten shares 
 from Cameron, on the 20th of January, 1853. He gave a promissory note 
 for the amount, but the witness could not say whether it was ever paid. 
 Brown opened an account with the bank on the 10th of March, with a 
 crossed check for 18 14s. On that very day he obtained an advance of 
 2000, and gave his note for it. On March the 12th, 1853, the sum of 
 3000 was placed to his credit, on the deposit of convertible securities. 
 On the 4th of May a further sum of 1000 was advanced on convertible 
 securities, and a promise to deposit deeds when required. 5000 was 
 advanced on the deposit of the bill of sale of the " Helen Lindsay " and 
 " Magdalena," which, on the 18th of August, 1854, had been mortgaged to 
 Mr. Walton, the governor of th bank, for 10,000. On the 4th of Sep- 
 tember, 185 1, there was a mortgage to the bank of the " Helen Lindsay," 
 " Magdalena," and " Hero," to cover advances not exceeding 15,000. 
 The witness prepared Brown's mortgage of the 4th of September, but he 
 (Brown) said nothing of the previous mortgage to Walton of the 18th of 
 August. Walton, who was governor of the bank, said I need not search 
 the register, as he knew all about the ships. This is a deed of the 4th 
 of September, 1854, and mortgages five Gloucester ships, the " Eory 
 Brown," the " Young Marquis," the " Wasp," the " Madonna," and the 
 "Bride," to the bank, to secure advances, each for 15,000. I applied to 
 Brown to get the ships registered. This is a memorandum by which 
 Brown, reciting that ho had mortgaged the ships to the bank, undertook 
 to have them registered in London on their return from their several 
 voyages. During Cameron's absence from the bank in February, 1855, an 
 arrangement was made by Esdaile, who took a prominent part in the 
 management, by which the bank agreed to release Walton from his liability 
 for 44,000 on his assigning the ships to the bank. On the 15th of March, 
 1855, indentures were executed by which Walton assigned the " 
 Lindsay," the "Magdalena," the "Hero," the "Hornet," and "Ocean 
 Wave " to Brown, and Brown assigned the same and another vessel to the 
 bank. It appeared that on July 1st, 1855, Brown had overdrawn his
 
 FACTS, FAILURES, AND FRAUDS. 
 
 account with, the Gloucestershire Banking Company to the extent of 
 10,289. The five Gloucester ships had not been registered, and on the 
 10th of August, 1855, Brown gave the Gloucester Banking Company a 
 mortgage on the two ships, the "Rory Brown" and the "Bride." 
 
 A letter was here put in and read, dated January 11, 1854, and written 
 by Charles Walton, governor of the bank, to H. S. Cameron, the manager. 
 It said inter alia : 
 
 "I was much surprised to hear from my son that you refused to dis- 
 count any more bills for us. I beg to tell you plainly that it is absolutely 
 necessary that you should continue to discount such bills as we receive 
 from persons who owe us the money, not only to prevent us stopping pay- 
 ment, but for the safety of the bank itself, which must fall if the governor 
 and two of the directors fall, with whom will also stop six or seven other 
 persons connected with the bank. You are not acting the part of a pru- 
 dent man of business in thus stopping us in our energetic course of 
 gradually liquidating and withdrawing the bills from the bank, which 
 cannot possibly be done without us having sufficient time to realize our 
 assets. Perhaps you are not aware that we have already paid this month 
 between 3000 and 4000 bills held by the bank, and between this and 
 Monday shall pay about 4000 more, thus gradually, but continually, 
 lessening the amount of paper in the bank's hands (I do not reckon what 
 has been done for Mr. H. Brown, as the bank hold the securities), but it 
 must be a work of time, and cannot be done without the bank's assistance 
 in the way of discounts. This is a positive fact, and if you will risk the 
 safety of the bank by refusing to discount, let me know at once, when we 
 ourselves, Mr. Brown, Mr. Cochran, and four others, must stop payment 
 for what ? Not for any anticipated loss to the bank, but refusal of assist- 
 ance to allow us time to realize. As far as we individually are concerned, 
 our liabilities are small and means ample, but we have got to bear on our 
 shoulders Mr. H. Brown, Mr. Cochran, and others, until we can realize 
 their property (except the second), which you know is a dead loss to us, 
 but none to the bank. We have to bear the whole of his losses ; every 
 one else escapes ; all of which we can arrange by having the necessary 
 discounts, etc. etc." 
 
 Mr. Paddison stated his impression that Mr. Walton's liabilities to the 
 bank (which had been stated to amount to 44,000) only amounted to 
 33,211, as shown by the schedule to the mortgage deed. A letter, dated 
 the 26th of November, 1855, and written by Cameron to Brown, was here 
 put in and read, from which it appeared that at that date, according to 
 Cameron's statement, Brown's debt to the bank amounted to the sum of 
 77,698 7s. 2d. The letter concluded thus : 
 
 " I shall not add more now than briefly to restate the requisitions I
 
 PACTS, FAILUKES, AND FHACDS. 299 
 
 now urge upon you, viz., 1st, to provide immediately additional security 
 for the bank ; 2nd, to provide for the payment of the past-due bills and 
 overdrawn balance, 38,162 15*. 9d. ; and 3rd, to prepare for the liqui- 
 dation in the incoming year of the advances on C.S. (convertible securities), 
 JJ 18*. llrf. To these different objects I beg your immediate and 
 most earnest attention." 
 
 A minute of the directors of the 20th of November, 1855, was read, to 
 appoint a committee on the subject of " convertible securities." The com- 
 mittec was appointed, and consisted of Esdaile, Stapleton, Macleod, and 
 Cameron. When they met, on the 4th of December, Cameron read to 
 them his letter to Brown, dated the 26th of November, above referred to. 
 A tabular statement of Brown's debt was also produced before them. 
 
 The witness was here cross-examined as to the value of Brown's ships, 
 and the expenditure which had been incurred upon them. Some questions 
 were also asked as to certain alterations in pencil which had been made in 
 the tabular statement, and a suggestion being made that Mr. Linklater had 
 made some improper alterations, 
 
 Mr. Linklater was called, and examined by Mr. ATKEETON. He de- 
 nied that he had made any alteration. He had made certain figures in 
 pencil on the statement in the Bankruptcy Court, when he was examining 
 Stapleton upon it ; and the paper so marked had been at the time sub- 
 mitted to Stapleton, and his counsel, Mr. Huddleston. The witness was 
 cross-examined, with respect to an error in the same or some other account 
 produced at the same tune, whereby a difference of 10,000 was made in 
 the account. The witness said it was an error which was apparent on 
 the face of the document (in the adding up), and he was not aware of it 
 till now. 
 
 Paddison was recalled, and stated that a meeting of the committee, 
 on " convertible securities," was held on the 17th of December, 1855, at 
 which Stapleton, Macleod, and Cameron, and himself were present. The 
 following resolutions were then passed : 
 
 ' Whereas H. Brown, Esq., M.P., is indebted to the Koyal British 
 Bank in a large sum, which is secured to the bank by the mortgage of 
 several ships, the property of the said Humphrey Brown, their freights, 
 and assurances ; and whereas it appears to this committee that the securi- 
 ties now held by the bank for the sum above referred to are insufficient, 
 and that it is expedient to realize the same or the greater part thereof; and 
 whereas the general manager has informed the committee that the said 
 Humphrey Brown is willing to give the bank further security, namely, a 
 mortgage over certain real property, a transfer or mortgage of certain 
 shares, and also an assignment of a ship called 'Severn ;' and whereas the 
 committee is of opinion that it will bo for the advantage of the bank and
 
 300 TACTS, rALLUBES, AND FRAUDS. 
 
 of ITr. Brown, that the said ships shall be gradually sold : Kesolved, that 
 the general manager instruct the broker of the bank to sell the said ships 
 as they come to port in the United Kingdom, and to communicate to the 
 Court of Directors any advantageous offer he may receive for the purchase 
 of any of the said ships before their return to the United Kingdom. Also 
 that the general manager receive, for the benefit of the bank, any sums 
 which may be or become due for the freights or assurances of the said 
 ships. That the solicitor prepare the deeds or other documents which may 
 be necessary to effect such further securities as aforesaid." 
 
 By direction of the committee, the resolutions were communicated to 
 Brown. In a letter, dated the 21st of December, written by Cameron to 
 Brown, the former used these words : 
 
 " You do not specially notice the resolutions of the committee directing 
 the gradual realization of the ships as they come into port, the collection 
 for the bank of the freights, and I presume, of course, that they are agree- 
 able to you. I therefore shall officially instruct Messrs. Walton and Sons 
 to carry those resolutions into effect, and which I have no doubt they will 
 do as the bank wish, with the utmost regard to make the most of the 
 property for your interest as well as that of the bank." 
 
 On the 22nd of December, 1855, Brown addressed a very long letter 
 to Esdaile, governor of the bank, which was read, in which he complained 
 bitterly of the proceedings of the committee on " convertible securities." 
 He said 
 
 " A resolution reaches me this evening of so very extraordinary a cha- 
 racter, that it has determined me on writing this letter. It is no more or 
 less than placing not only my property but my account out of my hands. 
 Insolvency rarely goes so far as this ; generally prudent creditors winding 
 up the estate under supervision. I am, therefore, just in the position of a 
 bankrupt. Have you ever done this with your previous friends, the origi- 
 nators of the Cefn debt with M'Gregor, Mullins, M'Kenzie, Tate, Coch- 
 ran, Gwynne ? And yet this extreme course is pursued with a customer 
 who not nine months since assigned securities to you to cover 34,000 of 
 
 your governor's papers The present state of the shipping interest 
 
 is very peculiar ; ships are very low in value, and freights are remarkably 
 high. If so, why not realize on that which will pay two freights will net 
 
 more than the ship herself would produce just now I am quite sure 
 
 that a quiet, steady realization of the property will save 25,000. On the 
 other hand, what is the peril ? The present course will lead to one frightful 
 to contemplate, and may involve the wreck of every one connected with 
 the bank. "We are all different in the management of this bank to ordi- 
 nary ones. In the latter there are two errors one of judgment, and a 
 misappropriation of funds j ours is under a charter, circumscribing certain
 
 FACTS, FAILTTBES, AND FEA.UDS. 301 
 
 circumstances, and if directors disregard these they become legally liable* 
 and a question with shareholders will not be limited to tens, hundred*, 
 thousands, or hardly tens of thousands of pounds. I have and do make 
 use of the word ' We' as having been mixed up in those transactions, 
 although I was no party to the creation of a loss of some of the most 
 grievous transactions of the company. I have never had the feeling that 
 our bank was in jeopardy from a run, looking at the nature of the accounts, 
 and even deposits. I never feel any over-anxiety on this. I was always 
 more afraid that some day some question would arise in some shareholder's 
 mind as to some transactions of some kind or other, and that inquiry and 
 canvass may lead to sufficient to ask for an investigation by shareholders. 
 These are the breakers ahead. Now excuse my saying this you are making 
 these very breakers as certain as I subscribe this letter to you, etc. . . ." 
 
 Mr. Paddison went on to state that he prepared the minute of the 17th 
 of December from a memorandum drawn up by Stapleton ; and that on 
 the 18th of December, 1855, the report of the committee was read to the 
 Board, all the defendants being present except Kennedy. The witness 
 stated that he had received a letter from Messrs. Buchanan and Co., of the 
 llth of January, 1856, saying that they had paid to Brown the freight of 
 one of the vessels, the " Hornet," and that Brown being at the bank the 
 same day eaid he (Brown) had not received the freight, and that it still 
 remained to be received by the bank ; upon which Cameron, who was 
 present, remarked, after Brown had left, " How painful it is to find a man 
 in Brown's position commit himself to a falsehood!" 
 
 Mr. HFDDLESTON here referred to a letter of the 13th of October, 
 1855, by which he said it appeared that 5000 of the freight of tho 
 "Hornet" had been paid at the bank, leaving 525 to be explained. 
 
 Mr. Lindsey Winterbotham, the public officer of the Gloucestershire 
 Banking Company at Stroud, was examined, and said In 1850, Brown had 
 an account in our bank. On two occasions we had security on Brown's 
 hips, the " Eory Brown," the " Bride," and the " Severn." The bank 
 realized 985 on the " Bory Brown," on the 8th of October, 1856 ; 1715 
 on the "Bride," on the 2nd of May, 1857; 1021 18*. on the "Scv. rn," 
 on the 9th of February, 1856. On the 30th of December, 1851, Brown's 
 account was overdrawn 9577. Cross-examined : -1000 was advanced in 
 December, 1851. I can't say the securities given in August, 1855, were 
 given in respect to that advance. A previous security had been given on 
 five vessels to the bank in the name of tho manager (Evans), to which I 
 objected, and the mortgage of August, 1855, was then given to trustees for 
 the bank. Some portions of the advance, 2600, were paid into tho British 
 Bank, but I cannot say that they were in respect of tho mortgage on tho 
 "Ambrosine." From the year 1855, the value of shipa very much de-
 
 302 FACTS, FAILTJEES, AXT> FEAUDS. 
 
 creased. We also held securities on Brown's real property. There were 
 several distinct properties. The latest estimate was, that the property 
 was worth 17,000, irrespective of the vessels ; but it realized much less. 
 I have known Brown for twenty-five years. He had been a carrier in con- 
 siderable business a water-carrier before he became a traffic-taker. He 
 was also connected with the Berkeley Canal Company and the Midland 
 Railway, and was employed in making reports for committees of the House 
 of Commons on traffic. He was reputed to be a person of property about 
 the years 1851-2-3. He was member for Tewkesbury, a magistrate, and 
 twice mayor of Tewkesbury. He-examined: When the 2600 was paid 
 to the British Bank, no deeds came to our bank. We have realized all 
 Brown's securities, except a portion; but, allowing for the value of the 
 securities not realized, there is still a balance of 5000 due to our bank. 
 His last occupation was that of traffic-taker, excepting his silk mills. He 
 was unsuccessful in business. Brown had been twice a bankrupt, in 1831 
 and 1835. Believed he paid twenty shillings in the pound to his private 
 creditors. 
 
 Mr. Wymark, examined by Mr. BEOWS, said I am a ship-broker in 
 Philpot Lane. I sold the " Madonna " in September, 1855, for Mr. 
 Brown, and paid him the purchase money, 950. I also sold for him the 
 " Young Marquis," in May, 1856, for 1706. I paid that money to Mr. 
 Paddison for the bank (less expenses). I also sold the "Rory Brown." 
 The witness afterwards added that he sold the " Arnbrosine," on the 2nd 
 of September, 1856, for 4000. 
 
 Mr. Ridley, examined by Mr. Serjeant BAIXANTIKE, said I sold the 
 " Hornet " on March 5, 1857, for 5625 ; the " Ocean Wave " on the 5th 
 of March, 1857, for 3575; the "Helen Lindsay" on the 25th of June, 
 1857, for 3200. They were all sold by public auction. Cross-examined: 
 I sold the "Hornet "for the assignees of the bank. It was advertised 
 as a peremptory sale, with the concurrence of the assignees and owner. I 
 never heard the assignees had refused 10,000 for it. At the time, shipping 
 property was much depreciated. From 1854 to 1857, the depreciation was 
 from 35 to 40 per cent. The ships were all sold at a fair value. In 1854 
 the "Hornet" would be worth 12 a ton for the India trade. It was of 
 1206 tons old tonnage, and was then worth about 14,472. The " Helen 
 Lindsay," in June, 1854, was sold to Brown for 14 a ton, and would re- 
 quire an outlay of 675 for re-metalling and other outlays to be fitted for 
 the Australian trade. I sold the " Ambrosine " to Brown in September, 
 1854, for 6160, and the " Ocean Wave" for 16 a ton, which would be, 
 on 374 tons, 6000. Re-examined : 10 per cent, was the usual rate of 
 depreciation of a vessel. 
 
 Mr. Charles Walton, son of the late Charles Walton, formerly governor 
 of the British Bank, examined by Mr. ATHEBTON. He said his firm sold
 
 FACTS, FAILURES, A!O> FBAUDS. 303 
 
 the " Hero " for 3500, about the month of March, 1856. Cross-examined 
 
 t'\ Mr. JAMES: It was sold by the bank's orders, at Aberdeen. The wit- 
 
 _;reed with Mr. Ridley that a depreciation in the value of ships had 
 
 place to the extent of from 35 to -10 per cent. The witness here 
 
 that all the liabilities of his late father to the British Bank liad been 
 
 liquidated. He was afterwards recalled, and stated that the " Magdalena," 
 
 whieh was fully insured, had been condemned, and that the bank held the 
 
 policy, but that the underwriters demurred to pay. 
 
 Mr. Faddison was recalled, and, in answer to questions from Sir F. 
 KEI.LT, said, that before the month of August, 1856, it did not come to the 
 knowledge of the directors of the British Bank that the five Gloucester 
 ships had been mortgaged to other parties. Brown had always toLl the 
 directors that they were out on voyages, and that, on their return, they 
 should be registered for the bank. 
 
 Mr. Serjeant BALLANTIXE then examined Mr. Paddison in reference to 
 the debt owing by Mr. Oliver, of Liverpool, to the bank. The witness 
 could not prove it. 
 
 Mr. Anderson, the bill-clerk, was then called, and produced 23,000 
 worth of Oliver's bills, which had been discounted by the bank. Craufurd 
 took the bills to Liverpool, and on his return they were missed, but after- 
 wards found. On the 13th of December, 1855, the witness produced to 
 the directors ten bills now produced, and Oliver's discount pass-book. 
 Cross-examined : The bills are from November 7tb, 1854, to the 24th of 
 April, 1855. The whole amount was due in the first half-year of 1855, and 
 anything that was done after that was in part payment. Some payments 
 were made in 1855 and 1856. There was a deed executed, by which Oliver 
 conveyed all Ilia estate to trustees, to pay his creditors as far as the estate 
 would go. At the time, Oliver was reputed to be one of the largest ship- 
 owners at Liverpool. He failed for nearly 1,000,000 or more. 
 
 Mr. Craufurd, the accountant of the bank, and who succeeded Cameron 
 aa manager, was then examined, and stated that he took Oliver's bills to 
 Liverpool to receive a dividend. lie received a dividend of 2*. Gd. on 
 24,000, and signed a memorandum in the accountant's office. The next 
 morning, he believed, he told Cameron that another dividend of 2*. or 
 2t. 6d. was anticipated. Ho also calculated how much could be recovered 
 from the other parties to the bills, and showed the calculation to Cameron. 
 Cross-examined : The debt was afterwards reduced from 24,000 to 
 13,000 at the time of the stoppage of the bank. A further dividend of 
 2t. had been received, making in all 4. fid. received from Oliver's . 
 
 what was obtained from other parties to the bills. Cameron ahuivi 
 said that Walton, formerly governor of the bank, was morally responsible 
 for Oliver's bills, as all the discounts had been obtained through him. He- 
 examined : Walton's name was not on the bills.
 
 301 FACTS, FAILURES, AND FBAUDS. 
 
 Mr. Paddison recalled, and proved the amounts which had been ob- 
 tained from other persons who were liable on Oliver's bills. They were all 
 insolvent, and had paid compositions of 2s. Qd., 4s., and 4s. 6d. in the 
 pound, and in some cases there was still a possibility of something more. 
 Some of the parties were stated to have been in good repute for many years. 
 The witness then read the minutes of the court in 1850, appointing a past- 
 due bills committee, and also a minute of the 13th of February, 1855, appoint- 
 ing Esdaile, Macleod, and Valiant to form that committee for the year 1855. 
 
 Mr. Anderson was recalled, and, in answer to questions, said that in 
 June, 1855, Oliver's debt was 17,000, and was reduced between that time 
 and the stoppage, and that Cameron had always expressed an opinion that 
 the bank would not lose by the transactions with Oliver. In November, 
 1855, Oliver's debt had been reduced to 14,640. Did not recollect that 
 Brown complained of Oliver being accommodated, on the ground that he 
 was not a customer. 
 
 Mr. Paddison recalled, and produced a letter, dated the 25th of Febru- 
 ary, 1850, from Mr. John M'Gregor, who was at that time governor of 
 the bank, asking for an advance on the security of his promissory note. 
 The demand was on the 26th of February brought before the Finance 
 Committee, and agreed to. This promissory note for 1000 at three 
 mouths was discounted. A further advance was made on the 26th of Sep- 
 tember, and on the 27th of November, 1851, his promissory note for 2000 
 at six months was discounted. A memorandum was afterwards given by 
 Mr. M'Gregor to the bank, along with the deposit of certain securities. 
 A list of these securities was produced and read as follows : " Stock 
 transfer receipts for 4677 lls. 6d. ; a policy, dated August 15, 1843, for 
 1000, in the Law Life Assurance Society, on the life of J. M'Gregor ; a 
 policy, dated June 14, 1851, for 1000, in the Merchant's and Tradesman's 
 Assurance Society, on the life of J. M'Gregor ; 10 shares of 100 each in 
 the Eastern Archipelago Company ; certificates of 10 shares in the Clydes- 
 dale Bank, on which 130 had been paid ; 5 shares in the Strand Bridge ; 
 25 shares (50 paid up) in the Warkworth Dock Company ; 10 shares in 
 the Royal British Bank (50 paid up) ; certificates of 50 20 shares in the 
 Irish Beetroot Sugar Company (2 10*. paid up) ; 50 20 shares in the 
 Irish Peat Company (4 paid up) ; scrip certificates of 250 shares in the 
 Chartered Australian Land and Gold Company (1 paid up) ; scrip receipts 
 for 50 paid-up shares of 50 in the Royal Australian Bank and Gold 
 Importing Company ; promissory note of August 15, 1849, by J. Menzies, 
 for 400, payable three months after date, endorsed by J. M'Gregor and 
 J. C. Menzies, on which 40 had been paid." The securities all remained 
 in the bank till the failure. The bank has received nothing on them, except 
 on the policy in the Law Life Assurance Society. The 1000 was received 
 after Mr. M'Gregor's death after the stoppage. A sum of 800 was also
 
 FACTS, FAILURES, AND FRAUDS. 305 
 
 receive^ from ^h-. M'Gregor. The other policy dropped for non-payment 
 of premiums. The witness here gave further evidence as to Mr. M'Gregor's 
 mces and their renewals. In January, 1854, the witness met Mr. 
 M'Gregor and Mr. Cameron at the bank, when an account was produced, 
 in the handwriting of the clerk, Craufurd, by which it appeared that the 
 amount at that time due from Mr. M'Gregor to the bank was 7375 3*. Id. 
 It was examined and found correct, and signed " J. M'G." The schedule 
 of securities was produced, and Cameron and M'Gregor had a conversation 
 as to their value. A minute was made in the margin of the paper at the 
 time, and their value was stated to be 5550. [Sir F. KELLY said the 
 items had been wrongly added up ; it should have been 6550.] A further 
 memorandum of deposit was then executed, and Mr. M'Gregor undertook 
 to transfer the stock ; but he afterwards made difficulties, and a correspond- 
 ence took place. 
 
 Cross-examined : In June, 1855, the balance due was from 6000 to 
 7000. Mr. M'Gregor retired in February, 1854. The securities camo 
 to me, on Mullins's death, in a sealed form, and were kept by me in an 
 iron safe till the stoppage. They were always spoken of by the directors 
 as worthless. Esdaile was taking steps to bring M'Gregor to book. He 
 was very earnest about it, and did all in his power. M'Gregor was in 
 good repute. He had been Secretary to the Board of Trade, and was M.P. 
 for Glasgow. There was no doubt at that time of his responsibility. He 
 lived in good style at Prince's Gate. He resigned his office at the Board 
 of Trade. He gave a prestige to the bank, and was believed to be a most 
 honourable man. Two bills had been discounted for M'Gregor, amounting 
 to 1200, and Esdaile complained that they had been discounted surrep- 
 titiously, with Mullins's initials, without going before the Finance Com- 
 mittee. I have no doubt that was the case. Mulh'ns at that time had the 
 exclusive confidence of the bank. I was acquitted of any complicity in 
 the Goodrich's affair. On the 6th of February, 1855, a resolution was 
 passed by the court of directors that in future no bills should be passed 
 for discount otherwise than in due course by the Finance Committee, and 
 that no director should pass his own bills. When the bills in question 
 were discounted, M'Gregor was himself governor. It was suggested to 
 the witness that at that time directors' bills did not go before the Finance 
 Committee. He said he could not speak as to that, but he knew one in- 
 stance, viz., where Gwynne's bill for 5000 was brought before the com- 
 mittee. I was solicitor to the Australian Land and Gold Company. They 
 have land in Australia, but there is no gold on it. I don't know that they 
 paid 20,000 for the purchase. The squatters, I believe, nro on the land. 
 
 Re-examined : The rest of the stock beyond the 800 was not obtained, 
 because other parties had a claim. As to M'Gregor's means, the witness 
 said he lived by literary labours and connection with companies. His 
 
 X
 
 306 PACTS, FAILTJBES, A^D FEAUDS. 
 
 means were not hopeful in January, 1856. Mullins died in February, 1 853 ; 
 his defalcations were discovered in 1854. The resolution about the dis- 
 counts was passed on the 6th of February, 1855. I had heard the direc- 
 tors make complaints about Mullins's misconduct. I should say all the 
 defendants in turn were present at such meetings from February, 1854, to 
 February, 1855. The "Warkworth Dock Company got 1000. 
 
 Mr. Anderson, the bill clerk, was recalled, and proved that in June, 
 1855, M'G-regor's debt was 7734 ; in December, 1855, 7948 10*. lOd. ; 
 and in June, 1856, 7802 105. Cross-examined : 1181 18s. was received 
 on the Law Life policy, and 806 14*. 6d. in stock ; total, 1988 12s. 6d. 
 
 Mr. Paddison was then called and examined in proof of Cochran's 
 debt. He said that, on the 23rd of December, 1854, Cochran obtained 
 credit for 5000 upon four bonds, with sureties. One amounting to 2000 
 had been paid. In one of the others, the directors had accepted a com- 
 position of 4s. 6d. in the pound, and in another 10s. in the pound, from 
 the sureties. 
 
 Mr. Barnard, the chief cashier, was here examined, and stated that, in 
 the early part of 1854, Cochran's account was kept in the green ledger in 
 his room. It was occasionally sent for by the directors, and Esdaile saw it 
 from time to time. 
 
 Mr. Hugh Thomas Cameron, son of one of the defendants, was called, 
 said I was at one time a clerk in the British Bank. This note (in the 
 green ledger) is in my handwriting "Cochran may overdraw his account 
 to the extent of 5500 ; credit in all, 10,500. By order of the governor, 
 Mr. Esdaile, H. T. C. March 6, 1855." I made the entry, because Esdaile 
 told me Cochran might overdraw his account to that amount. On a subse- 
 quent page I made this entry: "Mr. Cochran's advance in all to be 10,700. 
 By order of the governor, Mr. Esdaile, H. T. C." This book was before 
 the court at different times. I cannot tell the names of the directors who 
 were present. The sum of all the books was brought into the " money 
 lodged and lent book," which was before the directors every day. 
 
 Mr. Craufurd said the account of Cochran's notes current and dis- 
 counted to December, 1854, amounted to 20,000. On the 13th of June, 
 1855, the account was 11,400 15*. Id. ; and on the 31st of December, 
 1855, it was 9503 3s. 5d. Cross-examined : I cannot say that there is 
 one word in the green ledger in Cameron's handwriting. Cochran's bills 
 altogether might amount to 600,000. 
 
 Mr. Anderson was recalled, and said that Cochran had 20,000 worth 
 of bills running at a time. He had a discount at the Bank of England. 
 They were principally commercial bills. 
 
 Mr. Paddison was next examined with respect to Eowland Hill Slacker's 
 debt. He stated that Blacker kept a shop on Ludgate Hill, in the silk 
 trade. On the 10th of April, 1855, he obtained a discount account to the
 
 FACTS, FAlLUnES, AXD FKAUDS. 307 
 
 extent of -1000, and deposited a policy in the Guarantee Society for 
 12,000. It was extended to 5000 on the 15th of August. On the 18th 
 of December, 1855, Cameron reported to the directors that, from what ho 
 !i:ul heard from Slacker's wife, the dishonoured bills would not be paid. 
 Blacker had absconded. The sum of from 3000 to 4000 was named to 
 the board as deficient. Forrester, the detective, was employed. I was 
 instructed to look into his security. I examined the policy, which the 
 bank had taken without reference to me, and I found the policy was not 
 available as a security to the bank for bills of this kind. Blacker was made 
 a bankrupt on the 21st of December, 1855. On the 26th of December, it 
 was reported to the directors that Blacker had gone abroad, and that his 
 wife held out hopes of his getting some money through a court at Florence. 
 I told the directors they could recover nothing on the policy. They also 
 held the lease of the house on Ludgate Hill. It had been valued, on the 
 15th of December, 1854, at 300, but it was sold for less. On the 8th of 
 January, 1856, the directors ordered Forrester's bill of 9 10*. for making 
 inquiries after Blacker, " charged with defrauding the bank," to be paid. 
 On the 13th of May, 1856, a solicitor attended the court, and made an 
 explanation of Blacker's affairs. His estate produced 4s. 6d. in the pound, 
 and I don't think the bank got any further return. Cross-examined : In 
 February, 1856, it was not known what dividend would bo paid. 
 
 Mr. Craufurd was recalled, and said Blacker's account commenced on 
 the 9th of April, 1855, and consisted chiefly of small bills of 30 and 40. 
 The bills were well paid. He did from 400 to 500 a-month. In the 
 month of August, 1855, only two bills were irregular. In December, 1855> 
 I discovered that he had placed fictitious bills. His was an exceedingly 
 good account till then. The surprise and discovery came within three oc 
 four days of one another. I was aware of the deposits of the guarantee 
 policy and lease. [The policy was here put in. It guaranteed the assured 
 against trade losses.] In December, 1855, the bank held ninety-two bills 
 of Blacker's, and every one was fictitious. His past-due bills were 1146 13*., 
 when the discovery was made ; the others were running. The ninety-two 
 bills bear Blacker's signature, and they were discounted for him by the 
 British Bank. The total was 4206 12*. Ho also had a cash 
 account. Cross examined : I ascertained the loss on the 24th of March. 
 In December, 1855, 1098 was found out. 
 
 Mr. Barnard, recalled, said In December 1855, I was called into 
 Cameron's room to examine some of these bills, and give my opinion. 
 My impression was, that the acceptances were, many of them, in th 
 hand, and I mentioned that to Cameron. Cameron directed that Monro should 
 write to learn about the acceptances. He did so, and it turned out that no 
 such parties could bo found or heard of as acceptors. That was about the 
 end of 1855. After that, in about a week, at the end of December, I was
 
 308 FACTS, FAILrHES, AND FRAUDS. 
 
 called into the board-room. The bills were then spoken of by the directors 
 as fictitious bills. I do not know who, or how many, were there. Blacker 
 owed 400 on a cash credit account. Cross-examined : We had confidence 
 in Blacker before, but this we could hardly realize. The green ledger was 
 almost always in my room. It was a collection of the accounts to which 
 it was necessary to refer often, and was made to avoid taking the books 
 from the ledger clerks. The green ledger was not in Cameron's hand- 
 writing. As Blacker's bills became due, they were put into the "past-due 
 bill-book." 
 
 The next proof proceeded with was Cameron's debt to the bank. 
 Mr. Paddison was then examined with reference to Cameron's debt 
 He said Cameron was taken ill in 1855, and was absent during his illness. 
 Esdaile took his place mainly in the management of the bank, in consulta- 
 tion with other directors, Kennedy, Spens, Owen, Valiant, and Macleod. 
 They appeared to be in the manager's room, as well as in the board-room. 
 On the 13th of February, 1855, a court was held, and a committee was 
 appointed to examine into the books and affairs of the bank ; and the 
 rotation was settled on the finance committee, and past-due bills com- 
 mittee. The latter consisted of Esdaile, Macleod, and Valiant. In Feb- 
 ruary or March, 1855, the directors told me to tell Cameron they wished 
 an explanation from him as to some shares, and I delivered the message. 
 He said he must have Monro's assistance, and I mentioned that to the 
 board. Esdaile said he would write to Cameron. [A long correspondence 
 was here read between Esdaile and Cameron on the subject of shares held 
 by the latter, in the course of which Cameron expressed himself a great 
 loser by his connection with the bank, etc.] At the ead of the year 1855, 
 Cameron went to Scotland. Before he went, he gave me some papers, and 
 wished me to prepare a security on some property of his at Dingwall. I 
 was puzzled with the papers. Cameron said it was very simple, and he 
 would lend me a book on Scotch conveyancing. (Laughter.) Monro found 
 a book, and I commenced. I prepared a draft, and submitted it to him, on 
 his return. ' He is a Scotch lawyer. I was not spoken to by the directors 
 about the security till March, 1856. [Some more correspondence was here 
 read.] In March, 1856, Esdaile and Stapleton had an interview with me 
 as to Cameron's proposed security. I told them he had long before told 
 me to prepare a security for not exceeding 15,000. I told them of the 
 difficulty, and that I could not get over it. I was again spoken to in May, 
 and asked how matters stood, and I said I must have authority to employ 
 a Scotch conveyancer. Early in June, I chose a Mr. Greig. In July, I 
 explained to Esdaile and Stapleton the nature of the securities given by 
 Cameron in 1849 for the credit of 3000, and I said that from their nature 
 they were no securities at all. They were three policies. Up to that time 
 there was no security for Cameron's debt except those three policies, for
 
 FACTS, FAILmES, AXD FRAUDS. 309 
 
 3000. I did not kno\v of any debt ho owed to the bank except the 3000, 
 
 nt I might infer from the proposed security (not exceeding 15,000). 
 After February, 1855,' I was always requested to retire from the board, 
 which I did. I wish to call attention to that fact, as affecting my own 
 character and the position in which I stood. That was in Cameron's 
 absence. It occurred once in Cameron's presence, and he objected, and 
 said there was no necessity for me to leave. I left the books behind, and 
 was glad to get away. ' I remember being at a meeting, at the latter part of 
 June, 1856, when Esdaile, Stapleton, and Cameron were present, at the 
 South Sea House. I remember Stapleton, in a most'determined manner, 
 questioned Cameron about his account. He asked what he had done with 
 the sum of 3000 or 3500. Had he sent it abroad, or had he invested it 
 in any way for himself? Cameron refused to answer. Stapleton insisted 
 on having an answer. Cameron still did not answer. He said to me, in 
 an under tone, " What shall I do ?" He (Cameron) seemed agitated and 
 
 -ed. I said, " Think before you speak, and, if you cannot collect 
 your thought?, don't speak at all." On the 3rd of July, I applied to 
 Guneron for the particulars of his title to the Dingwall property, the ab- 
 stract, and Cameron incidentally mentioned that it was mortgaged already 
 for 3000, of which I was not aware before. I mentioned that to Esdaile 
 and Stapleton, and they said they were aware of it. [A memorandum in 
 Stapleton's handwriting of Cameron's account, amounting to 24,903, was 
 here referred to, and there was also a correspondence read respecting some 
 shares in the bank which Cameron held.] The witness proceeded to state 
 that a mortgage was executed by Cameron of the property at Dingwall, and 
 also that as many as eleven life policies and some debts were assigned to 
 the bank. The property at Dingwall was valued at 10,000, and instruc- 
 tions were given to realize it. 
 
 M r. Anderson, the bill- clerk, was then recalled, and said When I 
 entered the office, in April, 1853, 1 found promissory notes of Cameron's 
 to the amount of 9600. They at that time stood to Cameron's debit, in 
 his discount account, in the discount ledger. I entered the particulars of 
 the notes at the end of my diary. They were continued on as current 
 
 ions from one six months to another. The same entry was made 
 yearly, till the end of the bank. There were also two bills drawn by 
 Cameron on Finlayson one dated the 28th of October, 1852, at " five 
 days after demand ;" and the other for 1500, dated the 7th of February, 
 1853, "payable six months after demand." They ail formed part of 
 Cameron's discount account. Those bills were continued down to the closo 
 of tin; bank. Interest was charged upon them, at five per cent, on each 
 continuance. There was also a joint note by Cameron and Owen, for 
 
 >v. 3<*., dated the 19th of October, 1852, payable six months after 
 date. That also was continued current down to the closo of the bank.
 
 310 PACTS, FAILUEES, AND FEAUDS. 
 
 There was another note for 195 4s. 4^., which was also continued, of 
 which 100 os. 3d. remained unpaid. None of these went into the " past- 
 due bills " book. There was also a note of the 18th of July, 1853, for 
 1000, payable " three months after demand." In October, that was 
 placed to the debit of Cameron's discount account, and to the credit of his 
 drawing account. The total was 10,600. At the beginning of 1854, 
 Monro commenced with the discount account. The " green ledger" was 
 begun in the beginning of 1854. There were three accounts of Cameron's 
 in that book the discount account, the drawing account, and the cash 
 credit. All the notes and bills appeared in the new discount account. 
 While Cameron was away ill, Craufurd got these bills and notes from me, 
 for the purpose of their being compared with the diary. He returned them 
 the same day. On the 26th of June, 1855, I received a note for 1000 
 from Craufurd, and he said I was to debit it to Cameron's discount account, 
 and credit it to his drawing account. It was also entered in the diary, and 
 carried on as a current obligation. In Cameron's discount account there is 
 an entry of the discount of a promissory note for 500, dated the 3rd of 
 August, 1854, and made by Esdaile in favour of Cameron, payable at the 
 City Saw Mills. On the 6th of November, it was entered as a continued 
 note ; and again, on the 6th of February, 1855, on being cashed, it was 
 entered in Cameron's discount account, and also in my diary. On the 16th 
 of January, 1854, there is an entry of 3478 2s. 8d. advanced to Cameron 
 on convertible securities. It so remained till the end of 1855. It was 
 taken out after the first balance struck on the 31st of December, 1855. 
 The bill now produced is drawn by Cameron upon the National Bank of 
 Scotland, in favour of the Koyal British Bank, for 3500 at twenty-one 
 days' date. It was discounted, and the amount placed to the credit of 
 Cameron's drawing account. I received the bill from Craufurd, the ac- 
 countant. I had instructions from him not to present it. It was neither 
 presented for acceptance nor for payment. It was put to the " past-due 
 bills" account, but I was told by Craufurd to continue it in the " country 
 bills." It remained with the country bills as a current bill till the close of 
 the bank. It remained to the debit of Cameron in his discount account, 
 in the green ledger, till the close. On the 31st of December, 1854, the 
 sum of 15,396 14s. Qd. stood to the debit of Cameron in his discount 
 account. Of this amount, the sum of 10,600 was due upon his promis- 
 sory notes. The witness not being able to speak of his own knowledge 
 how the amount was made up. 
 
 Mr. Craufurd was here recalled, and said that, about the time of Came- 
 ron's dismissal (May, 1856), he discovered the 3500 bill, which had 
 escaped notice among the country bill?, and added it to Cameron's discount 
 account, making, with the 15,396 14s. 6cL, a total of 19,146 14.9. 6d. 
 Mr. Anderson, on being recalled, said that Cameron's discount account
 
 TACTS, r.VILUEES, AND PEA! 311 
 
 (with the exception of the 3500) continued the same down to the close of 
 the bank. Nothing was received upon it. Cross-examined : None of 
 
 n's bills were " initialled." They were never put in the " past-duo 
 bills " book. Esdaile berame chairman in February, 1855. I remember 
 at that time Craufurcl, the accountant, got the bills from me. They were 
 in the register of bills discounted. I kept that book, but not at the time 
 tin- bills were discounted. The first note for 2000 was discounted by 
 Alladiee, but it does not appear, and I do not know by whose order. The 
 diary was kept in iny office. That book was not taken into the board- 
 room. Esdaile' s note for 500 was paid. It was continued twice. The 
 bank got interest on it. The 10,600 was carried on in the same way. 
 Cameron's bills were kept in the same way as all others of the same class. 
 I do not know what the 10,600 was for. I had heard it was for shares. 
 As to the joint note of Cameron and Owen, for 446 9*. 3d., they were sure- 
 ties for a solicitor named Walker, who went to Sydney. A policy also was 
 deposited as security. The money was got to enable him to emigrate. 
 Brown's promissory note for 1000 in tbc same month was paid for the 
 benefit of tfie bank. I believe it was given by Brown to Cameron for 
 twenty shares. In 1853, I found bills to the amount of 10,600 standing 
 to Cameron's debit. No interest was charged on the 10,600. I under- 
 stood from my predecessor that it represented original shares in the bank. 
 Cameron confirmed that. I understood the dividend was to go against the 
 shares. The dividends on the shares went to the profit of the bank. The 
 balance of Cameron's drawing account, at the end of 1854, was 220 against 
 him. His cash credit account was 3173 12s. &d. against him. In Janu- 
 ary, 1851, he obtained 3478 12s. lid. on the transfer of securities from 
 the Irish Linen Company. The witness stated the account at the 31st of 
 December, 1854, to be thus : Discount account, 15,396 14s. Grf. ; Draw- 
 ing account, 207 15*. ; cash credit, 3173 2s. Sd. ; debit on convertible 
 Becurii -2*. lid. ; total, JB22.225 15s. Id. On the 1st of Febru- 
 
 ary, 1855, while Cameron was absent from illness, Esdaile examined the 
 share ledger. This book (handed to witness) is in the handwriting of 
 
 , and he made it during Cameron's illness. It contains an account 
 
 of the original capital of 1000 shares, and all the transfers. It states that 51 
 
 - were in Cameron's hands, value 2550. Esdaile spoke to me about 
 
 Cameron's promissory notes; the notes were at that time before him. 1L- 
 
 said, " Surely these bills represent a great many more shares than P; 
 
 ron's name?" The notes for 10,600 would represent 212 shares. 
 The green ledger was much before Esdaile, and he was much in the mana- 
 ger's room. He occupied Cameron's place, as we considered. 
 Cameron returned after his illness, he said, in June, 1855, "The <h 
 are wishing me to give them back 1000 of my salary, but I must make 
 them recoup at some future time." He gave his promissory note for i 1UUO,
 
 312 TACTS, FAILURES, AXD PEAITDS. 
 
 which was put to the debit of his discount account, and to the credit of 
 his drawing account. He drew a check for 1000, which went into the 
 profits of the bank. In 1856 I was requested by Cameron to write him a 
 letter to that effect, which I did. [Here two letters from the witness to 
 Cameron were read, the one dated the 25th of June, 1855 ; and the other 
 dated the 22nd of July, 1856 ; in the latter of which the witness stated the 
 facts, and that Cameron had not received any value for the check, nor was 
 it passed to his credit.] The witness continued In March, 1855, I gave 
 Esdaile a list of Cameron's debts owing on convertible securities. It con- 
 tarns an item of 3478 2*. lid., and 115 Is. 2d. for interest at 5 per cent. 
 I called Esdaile's attention to the account. At the end of 1855 I prepared 
 the usual list. He (Cameron) gave me in January, 1856, a draft for 3500 
 on the National Bank of Scotland, but he told me not to send it down at 
 once, without his informing me. He said, " There has been a correspond, 
 ence regarding it, and though I think it will be paid, yet I wish you to 
 retain it, till I give further instructions." The 3478 2s. Hd. stood against 
 him on convertible securities till it was taken off by that note, and cancelled. 
 I carried it to his debit in the green ledger, by his direction, and credited 
 his account with that bill. It is entered in the abstract of transactions of 
 December 31, 1855. The book (Abstract of Transactions) was taken up 
 to the directors every day. It was made up every day. Before the draft 
 for 3500 became due, Cameron gave me a letter of the 21st of January, 
 1856 (read), saying that the fund would not be ready till Whitsuntide or 
 June, and asking witness to hold it over meanwhile. He gave me 70 
 certificates of shares in the bank, I think, blank transfers of shares from 
 Macleod. The draft was not presented to the Bank of Scotland, and the 
 shares remained in the hands of the bank, till it stopped. It (the draft) 
 stood under the head of " country bills discounted " as part of the assets, 
 till the end. At the end of December, 1855, Cameron's account stood 
 thus : Discount accoimt, 19,146 14s. 6d. ; credit of drawing account 
 693 8*. lOd. notes of the bank outstanding in favour of Cameron to 
 debit of drawing account, paid by the bank before it stopped, 2090 ; cash 
 credit debit, 3503 6s. lid. ; total, 23,896 12s. fd. All this sum stood 
 as assets of the bank. 
 
 Cross-examined. Esdaile and I compared the bills with the diary on 
 the 4th, 5th, and 6th of March, 1855. I don't know that Esdaile ever saw 
 them before. The diary is kept by the bill-clerk ; it is a calendar of bills 
 arriving at maturity. Esdaile's note was discovered by him on March 22, 
 1855. It was paid three weeks after. The note, I believe, was given to 
 Cameron for some shares. I believe it was to double his (Esdaile's) quali- 
 fication. There was a resolution to double the qualification of directors. 
 Esdaile belongs to the firm of Esdaile and Co., City Saw-mills. The draft 
 drawn by Cameron on the National Bank of Scotland went into " the
 
 FACTS, FAILUBES, AND FEAUDS. 313 
 
 country bills discounted." Cameron's name does not appear. The daily 
 
 ot shows a large account to the credit of the British Bank in the 
 
 Bank of England. In December, 1855, the cash balance was 32,331 3*. Qd. 
 
 The value of British Bank shares in January, 1856, was from 48 to 50 
 
 : ~>0 shares. Cameron's shares were not sold, and he was still liable 
 
 for calls. The sum of 176 had been received on Cameron's account for 
 
 shootings in Scotland ; and also a sum of 270 from a person in Scotland 
 
 named Binning, in November, 1856. Both these sums would go to tho 
 
 credit of Cameron's debt. 
 
 Re-examined. Cameron's name appears in the register of advances on 
 convertible securities, and in the register of country bills. The accounts 
 are in the green ledger. The British Bank's credit with the Bank of Eng- 
 land consisted of checks and surplus cash ; and, when required, it was 
 obtained by discount of bills. The discounts have exceeded and also fallen 
 short of the balances. No statement of the personal accounts of customers 
 was laid before the board. First spoke to Stapleton about Cameron's 
 account, after Cameron had left, in July, 1856. He expressed great sur- 
 prise, and spoke with some warmth. I received seventeen shares to liqui- 
 date an account of Urquhart's. 
 
 John Finlayson said I live in Scotland. In 1842, I went into the 
 service of Cameron, at Dingwall, as clerk. He was a writer and agent. I 
 remained with him till after the opening of the Royal British Bank, till 
 1850 or 1851. He came to London in 1849. Some years before that, he 
 had been fanning some land with a Mr. lire. Mr. Ure got into difficulties, 
 and Mr. Cameron had to take the farm into his own hands. I know that, 
 to liquidate the debts, an account was opened with the National Bank of 
 Scotland a cash credit account. Mr. Alexander Matheson became security 
 for 5000 for Mr. Cameron. That sum was not enough to pay off the 
 debts. A debt existed on the farm as long as I was connected with it. 
 Cross-examined : For thirteen years Cameron had been Provost of Ding- 
 wall. He waa in the Commission of the Peace, and Deputy-Lieutenant of 
 two counties in Scotland. He was Chamberlain for two counties, Boss and 
 Cromarty. He had been for thirty years Clerk of the Peace, Public Prose- 
 cutor, and Clerk to the Commissioners of Supply. He had been for many 
 years receiver of Bishops' rents, and was in high repute as a man of integ- 
 rity. He was agent of the National Bank of Scotland, at Dingwall. He 
 hivl :ictcd in large transactions in the sale of estates, and he (witness) be- 
 lieved he had claims for commission. He was agent in Scotland for 
 gentlemen of large property. He had also real property of his own, which 
 the bank had taken no steps to realize. Ho also had extensive sheep-walks, 
 and a large number of sheep, about 6000. As chamberlain, he was factor 
 of Crown rents. 
 
 Mr. Henry Einpson waa then examined. Ho said, I am an attorney in
 
 314 FACTS, FAILURES, A2TD FEAUDS. 
 
 Moorgate Street. I was common law agent for Messrs. Paddison and 
 Mullins. I remember the clerk, Gatherer, coming to me from the Royal 
 British Bank. I accepted a transfer of bank shares, in May, 185-1. My 
 came was used as trustee for the bank. The same occurred again in 1855 
 several times. The shares had previously been purchased. Sometimes 
 Craufurd, the [accountant, and sometimes Gatherer, communicated with 
 me. I accepted and signed transfers of shares, as trustee for the bank. I 
 knew nothing of the transactions in the books of the bank in my name, till 
 after the stoppage. Cross-examined: I had no communication with Esdaile, 
 till a day or two before the close of the bank. 
 
 Mr. Craufurd recalled, said On the llth of June, 1855, an account 
 was opened in the bank books, called " private account of Henry Empson." 
 I believe the account was opened by Cameron's directions. The witness 
 here referred to several entries in the account. It was headed " Henry 
 Empson's private account." The first entry was " 7 shares purchased of 
 the executors of Lady Adare, 350." The same day there was another, 
 "40 shares purchased of W. Walker, 2000." Mr. Cameron desired me 
 to make the purchase. The money was paid out of the bank's fund. On 
 the 30th of June the account was balanced ; it was 2350. On the 1st of 
 November there is an entry, " 30 shares, from Scott and Sons, brokers for 
 Dixon, 1500." Empson's account is debited, "purchase money, commis- 
 sion, and stamps, 1511 5*." On the 28th of November there is " pur- 
 chase of one share from Norwood, and stamps, 50 7*. 6d." The bank 
 paid the money. Cross-examined : I believe the suggestion originated with 
 Cameron, but I can't recollect the time. Mr. Empson's name was given 
 to me as the purchaser of the shares. I asked, " Am I to charge them to 
 an account in his name?" and he said, " Yes." The account began on the 
 llth of June, 1855. I was aware Empson held shares in trust for the 
 bank, for Cameron told me so. I had intimated to Cameron that the shares 
 in which the bank was interested should be held in the name of a trustee. 
 He (Cameron) mentioned some one in the house. I objected, as he was a 
 servant of the bank, and suggested Mr. Empson. He said that would do. 
 I did not say the directors knew nothing of the originating of it ; but I say 
 now that I do not think they did. Re-examined : The directors could not 
 fail to know the existence of the account afterwards. Empson was agent 
 for Messrs. Paddison and Mullins. I have seen him in the board-room 
 repeatedly. 
 
 Mr. Craufurd was then examined as to the various books kept at the 
 bank. He said I was appointed accountant in Eebruary, 1853, and 
 continued till July or August, 1856. The directors attended court meet- 
 ings weekly, and finance committees sat daily. They sat according to a 
 rota. There was also a committee which sat once a-week on past-due bills 
 and past- due loans. Various books kept in the bank were laid before these
 
 FACTS, FAILURES, AND THAUCS. 315 
 
 committees from time to time. The books sent in to the finance committee, 
 who sat daily, were : 1, the daily abstract ; 2, the book containing the 
 applications for loans went in on certain days ; 3, the money lodged and 
 >ok went up to the committee from the first day till the end; 4, the 
 book containing the names of bills for discount. The books sent in to the 
 past-due bills committee were 1, the past-due bills book ; and, 2, a book 
 culled "The Solicitor's Instruction Book." The books laid before the 
 finance committee were not laid before the past-due bills committee. The 
 books sent in to the board at their weekly meetings were 1, the daily 
 abstract ; 2, the money lodged and lent book ; 3, the register of new accounts 
 opened ; 4, the Bank of England pass-book ; and, 5, the general ledger 
 balance book. I can't speak with certainty as to the " past-due bills book." 
 The "daily abstract" shows the sums received and paid over the bank's 
 counter. It shows the sums of money, and the particular accounts to 
 which those sums were applicable. The " money lodged and lent book" 
 shows the balance in the Bank of England and in the house, what bills had 
 been discounted, what bills were about to fall due, and what payments were 
 to be made, the amount of bills continued with security, the amount ad- 
 vanced on cash credit account, the amount of customers' money lent by 
 the bank, and the excess of advances on account. I have seen the manager 
 reading from the "money lodged and lent book" to the directors. The 
 "bills for discount book" shows the bills brought for discount. The 
 " general ledger balance book " went up to the board as it sat, till the bank 
 left Tokenhouso Yard ; but not so regularly after that. It was on the 1st 
 of June, 1856, the bank went from Tokcnhouse Yard to the South Sea 
 House. Having an increase of business, it was not so easy to balance. It 
 was made up every Saturday night. The " general ledger balance book " 
 contains details of the assets and liabilities of the bank. There are state- 
 ments in the book as to the past-due bills, at the date at which it is balanced 
 or made up, every week, on Saturday night. Everything that remained 
 unpaid went to that item. The amount of the past-due bills loan is shown 
 in the same way. So is the amount of bills continued with collateral se- 
 curity. It shows in what stocks the bank lias money invested to their 
 account, the amount advanced by the bank on convertible securities, and on 
 cash credits. The account to the credit or debit of the " suspense account !> 
 contains those items which are not defined as belonging to any particular 
 account. The " adjusting interest account " shows the amount due to the 
 bank by customers for interest, generally at the last half-yearly b 
 There was also a book kept, called " the general ledger." There are films 
 witli tlie titles of the accounts, but it does not show the names, nor the 
 Befuviti". The "general ledger" contains some more details, but not much 
 more than the "general ledger balance." It shows more of tin- "si. 
 account." The balances of the " suspense account " were taken down every
 
 316 TACTS, FA1IUEES, A>"D FEATJDS. 
 
 week. There was a balance of the "general ledger" half-yearly. The 
 "suspense account" was balanced half-yearly, in the same way as the 
 others. There was also a book called the " approximating balance book," 
 which was made up bimonthly or quarterly. The " general ledger " and 
 " approximating balance book " lay in the accountant's room, to which the 
 directors had access, though they seldom came there, except for their own 
 private purposes. 
 
 Mr. Beveridge was recalled, and said I went into the service of the 
 bank in October, 1850, as bill-clerk. Part of my duty was to make the 
 entry of the bills brought to the bank for discount. This book is the 
 " past-due bills book," which I kept from the 20th of February, 1851, till 
 the 19th of February, 1852. The book contains particulars of past-due 
 bills under various heads, such as, " For whom discounted," " When due," 
 "Amount," " Other obligants," " Keinarks." I took the particulars from 
 the bills, and compared them weekly with the entries in the general ledger 
 as to past-due bills. 
 
 Mr. Craufurd, Mr. Paddison, and Mr. Beveridge were then examined 
 at great length upon a great variety of entries in the past-due bills book, and 
 the attendance of the members of the committee, and their remarks and 
 decisions on particular bills, and also as to the costs of a variety of legal 
 proceedings on bills dishonoured, etc. 
 
 Mr. Anderson recalled. In April, 1853, 1 began to keep the " past-due 
 bills book." It had been previously kept by Beveridge, and then by Baine, 
 who is now in Australia. I found two volumes. The first came down to 
 the 6th of November, 1851, and in it I found some dishonoured bills of 
 Richard Batley (143 8*. 3d.), which were carried on in the general ledger 
 as securities. In the second volume Baine had made a list of past-due 
 bills outstanding on the 25th of April, 1853, amounting to 22,099 13s. 
 Some were marked "bad," and some " doubtful," and some had been out- 
 standing since 1850. None of the past-due bills or past-due loans were 
 written off as desperate ; but they were still carried on as securities, except 
 those that were paid. I kept the second volume up to the 28th of August, 
 1853, when the past-due bills amounted to 24,261 16s., being an increase 
 of from 5000 to 6000 since the 31st of December, 1851. On the 29th 
 of August, 1853, the past-due loans amounted to 10,759. The third 
 volume commences on the 29th of August, 1853, and extends to the 18th 
 of June, 1855. I brought forward a list of all the past-due bills, past-due 
 loans, and bills continued. The book shows the names of the persons for 
 whom the bills were discounted, and the sums, in columns. From tune to 
 time I wrote out abstracts of the amounts outstanding at different periods. 
 The past-due bills were on the 31st of December, 1853, 24,706 14,y. 7rf. ; 
 3rd of April, 1854, 32,304 13s. 3d. ; 30th of June, 1854, 37,018 14s. ; 
 4th of September, 1854, 40,395 11*. 2d. ; 30th of October, 1854,
 
 TACTS, IMILrBES, A>*D FBA.UDS. 317 
 
 50,G99 19*. lid. ; 25th of November, 185-1, 56,898 4*. Id. ; 1st of Janu- 
 ary, 1855, 73,116 15*. 7<?. ; 12th of February, 1855, 78,203 1*. Id. -, 12th 
 
 vh, 1855, 82,276 6*. llrf.; 12th of April, 1855, 83,921 18*. 1(W. ; 
 
 I May, 1855, 88,010 1-4*.; 18th of June, 1855, 88,841 19*. 5rf. 
 The book would only give the sums, not the names of the parties. The 
 first entry in the next volume is the 18th of June, 1855, 88,844 19s. 5d. ; 
 21st of July, 1855, 92,328 8$. 8rf. In the last item there was included a 
 sum of 21,117 2*. 2d. y being the amount of some dishonoured bills of a 
 Mr. Tarte, as appears by the previous volume. [It was here produced and 
 referred to.] On the 6th of August, 1855, those bills were withdrawn from 
 the past-due bills account and debited to the bills continued account. The 
 past-due bills were, on the 6th of August, 1855, 68,858 13s. 5<f. ; 1st of 
 September, 1855, 70,325 5s. Sd. ; 17th of October, 1855, 71,634 Os. 3d. 
 The witness then described the " past-due loans " in the third volume : 
 18th of June, 1855, past-due loans, 16,327 13s. lid. ditto, bills continued 
 on convertible securities, 3226 13s. Id. ; 1st of September, 1855, past-due 
 loans, 20,477 13s. lie?. ; ditto, bills continued on convertible securities, 
 21,213 10*. 3d. In October, 1855, the past-due bills, past-due loans, and 
 bills continued amounted to 146,985 18s. 5d. That sum included an 
 amount of 29,195 18*. 10d., due from Mr. Humphrey Brown, which had 
 formerly stood as a current account on convertible securities ; but the notes 
 having been dishonoured, it was passed to the debit of the past-due loans. 
 Brown's name does not appear in the account. Subsequently, and before 
 the 17th of October, 1855, that sum of 29,195 18*. lOd. was put to the 
 convertible securities account. On the 17th of October, 1855, the past-due 
 loans were 17,262 10*. lid. On the 10th of November, 1855, the past- 
 due bills were 67,656 17*. About 5000 had been received in respect of 
 bills discounted for Oliver, of Liverpool, and after taking credit for that 
 amount the past-due loans were 17,262 10*. lid. The bills continued 
 with collateral security were 24,495 19*. 7d. On the 31st of December, 
 1855, the account stood thus : Past-due bills, 63,756 7*. 4d. ; past-due 
 loans, 17,742 0*.l<f. ; bills continued on collateralsecurities,24,784 lls.dd.; 
 total, 106,282 19*. 2d. Previous to 31st of December, 1855, three pro- 
 missory notes of Brown's for 4705 15*. 3d. had been withdrawn from the 
 past-due bills account, and placed to the debit of his convertible securities 
 account continued in the "green ledger." That book began in February, 
 1854. It was kept by me, Mr. Craufurd, Mr. H. T. Cameron, and Mr. 
 Monro. I have seen it lying in Cameron's room. It had a lock. I had 
 access to it whenever I wanted. The accounts of the directors and official* 
 of the bank were kept in it, and it was confined to them. [The names of 
 the several directors and officials who had accounts entered in it were here 
 read.] It was my duty, as my predecessors had done, to make calculations 
 of interest on past-due bills and past-due loans, in reference to the half-
 
 318 FACTS, FAILURES, AND FEAUDS. 
 
 yearly balance-sheet. I gave them to Craufurd, the accountant. I calcu- 
 lated the interest from June, 1853, to the end of December, 1855 ; on the 
 30th of June, 1853, I calculated interest on bills three years old ; and, in 
 1855, 1 calculated interest on some bills of 1851, and on bills of considerable 
 amount in the years 1852, 1853, and 1854. In June, 1855, Mr. Beveridge, 
 the clerk, gave me a list of bills on which he said I was not to calculate 
 interest any longer. I did not calculate interest on the bills so written off. 
 The interest went to the profit of the bank. 
 
 Cross-examined. No reason was given to me why I was not to calcu- 
 late interest on those bills any more. The bills are of various dates. Some 
 are recent. They were of the years 1855, 4, 3, and 2. In order to know 
 what bills were to be written off, it would be necessary to know the position 
 of the parties ; that could be ascertained by going over the books. I have 
 done that, but it has taken me six months. It could not be done by a 
 west-end director. On the 18th of June, 1855, the amount of past-due 
 bills was 88,844 19s. 5d. There was nothing in the book to show how 
 much was bad, or doubtful, or on good security. On the 30th of June, the 
 amount was 89,284 10s. Id. I find that from the general ledger, which 
 was posted every day by Craufurd, the accountant. [Sir E. KELLY here 
 referred to the balance-sheet of June 30, 1855, which contained this entry 
 on the credit side: ''Assets. By loans on convertible securities for 
 short periods, advances on cash credit accounts, bills discounted, etc-, 
 898 713 14*- 11^-"] Witness, in continuation, said the 88,844 19s. od. 
 formed part of the " assets," and was included in the sum of 898,713 
 14s. lid. If any past-due bills were a bad debt, they woidd still appear 
 in the " assets " until they were written off as bad. All bills that were 
 outstanding, if not written off, would necessarily appear in that place. No 
 valuation was taken at the time. I knew Barnard had made a valuation, 
 and he gave me a list. I had no knowledge about the bills, though I had 
 suspicions. Mr. Craufurd, the accountant, made out the general balance- 
 sheet from the accounts furnished by the clerks. I don't know under 
 whom he acted. If the accountant had known that 10,000 out of the 
 89 284 10s. Id. had been lost, it would not have been made known. 
 Hopeless bills should be made known one way or another ; but if you don't 
 distinguish the bad debts by writing them off, they must necessarily appear 
 in that place, under the head of "assets." By "assets" is not meant 
 " available securities." The debtor side states all the sums for which the 
 bank is liable to account, and the creditor side, the means by which it 
 accounts for them. The word "assets" means everything in respect of 
 which the bank is to take credit in account. Barnard had made a valua- 
 tion I had not. I have seen the balance-sheet of the Union Bank of Lon- 
 don, and of the London and Westminster Bank. They are in the same form. 
 Had never seen in an English balance-sheet an item for "past-due bills."
 
 TACTS, FAILURES, AND FI1AUD3. 319 
 
 \:n. lined. The item of 898,713 14*. llrf. included the whole of 
 Oliver's outbuilding debt and Tartc's debt. M'Grcgor's debt also was in- 
 
 . and Mullins's debt, who was dead. At the end of the bank, Owen 
 
 i redit balance of 89. Previous to the 31st of January, 1856, the 
 sum of 1000 had been added to the bad debt fund, which was over and 
 above the reserve fund. Until the past-duo bills were written off, they 
 
 ppear as " assets." I have been in a Scotch bank, and have known 
 cases where bad debts have not been -written off for nine or ten years. In 
 that case there was a " reserve fund." The British Bank had a " bad debt 
 fund." It is on the liabilities side of the account, and was put there to 
 meet loss. Five per cent, on the net profits went to the "bad debt fund." 
 That appears in Cameron's " report." "When a debt is hopeless, it should 
 be written off the profit and loss. I would exhaust the bad debt fund, and 
 then write it off" the profit and loss. No bad debt was ever written off* the 
 profit and loss to my knowledge. In December, 1854, the sum of 98 15s. 
 was added to the " bad debt fund ;" on the 30th of June, 1855, 322 10*. 
 more was added; thus making the bad debt fund amount in all to 
 2877 18*. 9d. In December, 1855, 339 17*. more was added, making a 
 total of 3217 Gs. 4d. On the 1st of January, 1856, 1000 was added, 
 but that was not included in the balance-sheet of December 31, 1855. As 
 to M'Gregor's and Mullins's debts part was included in the " assets." At 
 the close of the bank, there stood to Owen's credit a sum of 89 for an 
 outstanding bill of his and Cameron's, which has not been paid. 
 
 Mr. Barnard recalled. In November, 1849, 1 was appointed chief cnshier 
 of the British Bank, and continued till 1853. From that time till 1856, I 
 was employed as cashier, or otherwise. I was acquainted with the " past- 
 due bills book," and was called up to the past-due bills committee, and gave 
 information as to particular liabilities. I have expressed my opinion whether 
 
 't was good or bad. I have seen the solicitors' instruction book before 
 the committee on those occasions. I have frequently been before the court 
 of directors, from 1849 to 1856, and have seen the past-due bills book 
 
 but I can't mention the names of the directors who were present. 
 I know the " green ledger." I remember Cameron's absence from the bank 
 from January to May, 1855. I have seen the " green ledger" in Cameron's 
 room, where Esdaile sat a great deal. It generally lay in my room. I 
 don't think I ever saw him (Esdailc) referring to that book. In April or 
 May, 1855, Cameron sent for me to his house, and wished me to muke out 
 a list of past-due bills, past-due loans, and bills continued. He was at 
 home ill at the time. He said he should go through them, mid (\-tiinnto 
 
 haracter, on his return to town. I made out a list with marks to 
 show the value I put on them. The good I marked with a trimi-le, the 
 bad with a cross, and the doubtful with a round O. I took the book to 
 Cameron, to his house, and explained these marks. There was no m
 
 320 FACTS, FAILUBES, AND FKATJDS. 
 
 difference between us as to the value. Cameron had information which I 
 had not. According to my calculation, the good \vere 52,584 4s. od. ; 
 the doubtful, 52,976 15s. 8d.; the bad, 12,523 14s. 2d. ; total, 
 118,084 14y. 3d. Cameron added to the bad, which he estimated at 
 21,555, so that interest might not be charged upon them. That sum 
 was referred to the past-due bills committee. I made up the book on the 
 7th of May, 1855. I had told Esdaile I was going over the past-due 
 obligations with Cameron. I showed him the list. He had it in his hands 
 for five minutes, and looked it over, and then told me to take to the 
 solicitor the names that were marked by Cameron to be pressed. He gave 
 me the list back, to carry out Cameron's instructions. In November, 
 1855, I was requested by Cameron to complete a list of past-due bills up 
 to that time. I did so. The amount in November, 1855, was good, 
 70,144 5s. 8d. ; doubtful, 31,256 7*. Gd. ; bad, 12,511 Os. 4d. ; total, 
 113,911 13*. 6d. Oliver's and M'Gregor's debts were continued as 
 good ; 2000 had been paid off Oliver's debt. 
 
 Cross-examined. In May, 1855, I believe the bank was in a secure 
 state. I neither entertained nor expressed any apprehension. I refused at 
 the time to take an appointment which would have been a more lucrative 
 one. I knew of nothing which was likely to cause the bank to stop, till 
 within a short time of the stoppage. In May, 1855, I had no idea that 
 one quarter of the capital and reserve fund had been lost. My opinion in 
 May, 1855, was that the bank was perfectly safe. I have no reason to say 
 now that my opinion was erroneous, inasmuch as the Welsh works were 
 considered good, and Brown's debt was a good debt up to the time when 
 the bank stopped, and would be good now if the bank had gone on. I 
 believe that some one will make a fortune out of them (the Welsh works) 
 yet ; it only wants capital. According to banking notions, the investment 
 of money in landed property is not legitimate. Referring to the charter 
 of the Royal British Bank, which in the third clause says, " That the 
 business of the company shall consist in receiving deposits of money, and 
 keeping customers' accounts, and transacting every kind of usual banking 
 business; in advancing or lending money on real or personal securities, 
 freehold, copyhold, or leasehold securities in Great Britain or Ireland, or 
 any of the islands belonging to the Crown of Great Britain, in the English 
 or Irish Channels, by mortgage or otherwise, and either with or without 
 power of sale, on cash credit and other accounts," etc., he thought that, 
 looking at the whole of the general circumstances, advances on the security 
 of mines were proper. Securities may be " warranted good," and yet not 
 be "convertible;" and they may be "convertible," and yet not "war- 
 ranted good." I should consider mines convertible securities, if the title 
 is good, and there is a power of sale and a market for them. It was a 
 most important part of the business of the bank to advance money on
 
 FACTS, FAILURES, AND FRAUDS. 32] 
 
 "cash eiviU.t-," and to advance it on the security of land, with a power of 
 . to the word " assets" in the balance-sheet, the witness said, 
 
 ling owing to a man is "assets." Doubtful bills must be entered as 
 "assets ;" for the word includes all that is owing to a man, good, bad, and 
 doubtful. Therefore, if the sum of 898,713 14s. lid. had actually been 
 
 od on bills, loans, etc. whether the debts were good, bad, or 
 doubtful the advance must appear as in the balance-sheet, thus: 
 
 s. By loans on convertible securities for short periods, advances on 
 cash credit accounts, bills discounted, etc., 898,713 14v. lid." That 
 would not deceive any one acquainted with banking. It is the ordinary 
 way of stating the account. A debt is not to be run off till it is barred by 
 the Statute of Limitations. A debt is not desperate when the debtor is 
 insolvent, unless he is made a bankrupt. I should not write off debts as 
 bad, because by doing so I should lose sight of them. Some of the bills 
 which I looked upon as good were among the earliest. The balance-sheets 
 and headings continued the same from the beginning. I had no reason to 
 consider the entry an improper one. It is the usual entry. The entries 
 are always made in those words, or in words to that effect. In the half- 
 yearly report presented by the directors of the bank to the proprietors on 
 the 30th of June, 1855, is this passage : " The customers of the bank, and 
 their operations, have continued steadily to increase. More than 1000 new 
 accounts have been opened during the past year, and the number now 
 in operation is considerably above 6000." There is no doubt that that was 
 the fact. The business was rapidly increasing, and improving in character. 
 That continued till December, 1855. A sum of 35,000 had been entered 
 as " assets" in respect of preliminary expenses. The losses of the bank 
 were greater in then- early days. The past years had given us such an 
 insight into the parties who came to us, that we found extra care was 
 necessary in order to guard against the conspiracies which were formed 
 against us. There were many conspiracies at the beginning which we were 
 not wide awake enough to guard against. Parties commenced accounts, 
 and then overdrew them. In such cases I returned their cheques, and asked 
 them to withdraw their small balance. The loss by bad securities was less 
 during the last three years than it was in the first three. Alderman 
 Kennedy kept an account with the bank. The bank has not lost anything 
 by him. He introduced his son-in-law, Mr. Archibald Spens. We have 
 not lost anything by him. I have heard he also introduced his mother-in- 
 law, Lady Valiant. I was one of the cashiers in the drawing-office of the 
 I3ank of England for twenty years. I came to the British Bank in lsi;i, 
 and remained till 1856. My opinion of the British Bank continued till n 
 
 'iort tune before the bank stopped. Stapleton became a shareholder 
 
 31st of July, 1855. He also became a customer, and paid in 
 
 117S ID*. '6d. He continued a customer till the close, and at the stop- 
 
 T
 
 322 TACTS, FAILrEES, A]*D PRATTDS. 
 
 page (3rd of September, 1856) lie had a balance of 89 V*. Qd. of the 
 1178 19s. 3d. paid into the bank. 1000 was paid for shares. Since the 
 stoppage he has paid 1000 in respect of calls, and 1500 as a contribu- 
 tory. In May, 1856, the balance-sheet was prepared from the state of the 
 books. There were seven establishments connected with the bank. The 
 accounts were audited with the balance-sheet before the general meeting. 
 The auditors were appointed by the general meeting, under the sixty-fourth 
 clause of the charter. I do not think I ever read the law. I never saw 
 any one with the auditors except the accountant (Mr. Craufurd). The 
 auditing was done in his room. I have seen them (the auditors) there the 
 whole day, or nearly so ; and once a second day was devoted to the same 
 purpose. The auditors were not always the same persons. Their names 
 were Watson, Chandler, Page, and Spooner, the nephew of the banker. Ill 
 June, 1855, and December, 1855, Thomas Chandler and Thomas Page were 
 the auditors. When I came to the British Bank, I -was an entire stranger 
 to Esdaile. At the time Cameron was ill in 1855, Esdaile assumed the 
 chair, and devoted himself entirely, and most anxiously, to the business of 
 the bank. I never saw anything in him that was inconsistent with the 
 strictest integrity and honour in all the affairs of the bank. He had no 
 accommodation, except the transaction referred to between him and 
 Cameron. I recommended my friends to take shares, during almost the 
 whole existence of the bank, down to the last year, and some of my dearest 
 friends in the last year, from January, 1855, to January, 1856. I believed 
 it then to be a most safe investment. I had no shares ; I could not hold 
 any according to the charter. We had 48,000 in money in the till, at 
 the head office, at the tune of the stoppage. We paid 200,000 in four 
 days, as I hare understood. During the last year, attacks had been made 
 in the London Joint-Stock Journal. They contributed to the downfall of 
 the bank. The proprietor of that journal is the same person who was tried 
 in this court for a libel on the directors of the Bank of London. The libels 
 were in circulation to an enormous extent. I believe that to have been one 
 cause of the stoppage of the bank. I have always understood that banks 
 have to struggle with bad debts in their infancy. I do not know whether 
 it is usual to write off bad debts gradually. As to the Welsh mines, I 
 should have advanced money to protect previous advances. Do not know 
 whether the Bank of England has advanced money on mines. Brown did 
 not commence his account in February, 1853, with the payment of 18 14s. 
 as had been stated. Brown's account commenced by his obtaining discount 
 for his note for 2000. Saw a crossed cheque for 18 14*. in Brown's 
 hand, and offered to clear it for him, as I should have done for any one 
 else. The 2000 was paid to the credit of Brown's discount account. 
 Brown had an account at the bank for three years, and during that time 
 the witness had no doubt as much as 100,000 was paid into the bank to
 
 FACTS, FAILURES, AKD FBATJD8. 323 
 
 his (Brown's) credit. I do not know that the state of Brown's account 
 with the bank is before an arbitrator. When the bank stopped, Macleod 
 had paid deposits on 79 new shares. At that time, he was about the 
 largest holder of shares. He never received any accommodation from the 
 bank that I am aware of. He (Macleod) was an inspecting director, to go 
 round and visit the branch banks. That would take away his attention 
 from the main establishment to the branches. So far as I could observe, 
 he performed his duties with regularity and earnestness. I believe he held 
 79 shares. Cross-examined : I have not heard from Cameron that the 
 79 shares were settled by him on his daughter (Macleod's wife). Ca- 
 meron was an earnest and zealous servant of the bank. He paid 1000 
 into the bank. Up to the latter end of the bank, the balance of Cameron's 
 account was in his favour. The balance-sheets were laid before the board 
 by Cameron, as prepared by the accountant (Craufurd). When I went to 
 Cameron, in 1855, he said the time was come when they ought to put 
 a value on their past-due obligations. I estimated the bad debts at 
 12,523 I-ls. 2d. Cameron raised it to 21,555, by writing off from the 
 doubtful those which he thought we were not likely to recover. The 
 closing of the doors of the bank greatly increased its obligations. So did 
 Cameron's leaving the bank ; and the attacks which took place tended to 
 accelerate the ruin which took place. The run upon the bank took place 
 during the last few weeks, and particularly during the last few days. 
 
 Re-examined. I considered the bulk of the securities were adequate to 
 secure the advances which were made upon them. I became acquainted 
 with the value of the securities, and tliat is the opinion I formed. I con- 
 sider them " convertible securities " when there is a power of sale and a 
 market for them, at least to the extent of what they will fetch in the mar- 
 ket. I should not advance upon them to that extent; nor within 30 per 
 cent. Everything owing to a bank is " assets." A hopeless debt would 
 be bad assets, and a good debt, good assets. " Assets " may comprise both. 
 I know notliing of the course of banking in joint-stock companies. I 
 would make an allowance for bad debts ; but I would not publish them. 
 The balance-sheet is prepared by the accountant for the general manager 
 and auditors, and it is presented by the directors to the general meeting. 
 When Brown opened his account, he paid in nothing j his was a discount 
 account. 
 
 Mr. Henry Empsom said From the year 1819 to February, 185G, I 
 was agent to Mr. Faddison (the solicitor to the bank). From that time 
 he acted as his own agent. I was instructed when to take proceedings. 
 In the early part I received my instructions from Mr. Paddison. After 
 some time, I took instructions from Cameron. I made entries from time 
 to time in the book marked (A), and gave it to Mullins and Faddison. My 
 entries show whether the debts were good, bad, or doubtful. After Sop-
 
 324 TACTS, TAlLUEES, A>"D 
 
 ternber, 1S51, tlie date to which that book comes down, I made reports to 
 Cameron. In April, 1852, 1 commenced a new book (No. 1). 1 took it to 
 Cameron, and he, or some one else, wrote instructions in it. In May or 
 June, 1852, I began to attend the past-due bills committee, and continued 
 to attend, generally once a-week, down to 1856. I took the books to the 
 committee, and they lay open, and I took my instructions. For some time 
 I entered reports of the bills and the state of the parties. We discussed 
 what should be done, and one of the gentlemen wrote what should be done. 
 Alacleod's initials ran through the greater portion of the book. The witness 
 here referred to an entry made on the 26th of November, 1855, from which 
 it appeared that the acceptor of a bill due in November, 1851, when sued 
 in the Sheriff's Court, had pleaded infancy. The debt was marked " hope- 
 less." The witness referred to other debts, which were marked " hopeless" 
 in JIacleod's handwriting. He said he also saw Esdaile's initials in a great 
 many places. 
 
 Lord CAMPBELL said he thought these were privileged communications, 
 made by the client to his solicitor for the conduct of suits. 
 
 Sir F. THESIGER said the witness was the solicitor to the bank, to the 
 shareholders, who were desirous that all this should be disclosed. 
 
 Lord CAMPBELL I think the communications are privileged. The 
 solicitor tells his clients what he has done, and he takes their instructions. 
 
 Mr. Pugh said a petition had been presented to the Court of Chancery 
 for winding up the Eoyal British iBank. An order was made to that 
 effect, dated the 21st of March, 1857. Proceedings were then instituted 
 against certain parties to make them contributories, upon which Esdaile 
 was examined. The evidence was taken down by a shorthand-writer, at 
 the dictation of the witness, who told him what to write. The evidence so 
 taken was then read over to the witness (Esdaile), and signed by him. 
 
 Sir F. KELLY objected that the evidence could only be evidence against 
 Esdaile, until evidence had been given of a conspiracy, so as to connect 
 Esdaile with the others. 
 
 Mr. BOTILL said it was no evidence of any act done in furtherance of 
 the conspiracy. 
 
 Sir F. THESIGEE said he tendered the evidence to show the state of 
 affairs, and the knowledge of the parties. He tendered it as an admission 
 made by Esdaile. It was evidence against him. 
 
 Lord CAMPBELL said he should like to take time to consider whether 
 the evidence was admissible. 
 
 Mr. Pugh then identified another deposition made by a person named 
 Anderson, which was referred to in Esdaile's deposition ; and he said it had 
 been read over to, and signed by, Anderson, the same as the other. 
 
 Mr. Paddison was then examined as to the issue of new shares, under 
 the supplemental charter of February, 1855. On the 13ih of February,
 
 FACTS, FAILURES, AND FRAUDS. 325 
 
 1S33, the directors ordered the certificates of new shares to bcpiintcd; 
 and on the 20th of February, 1835, they directed advertisements of the 
 shares to be inserted in the papers. On the 6th of March, the directors 
 ordered a circular to be issued. That was during Cameron's illness. On 
 .:d of May, 1835, circulars were ordered to be sent to the subscribers 
 of new shares. [The circular was here read.] It pointed out the inconve- 
 nience of their delay in executing the deed, and called upon them to execute 
 it at once. On September 4th, 1855, the directors resolved to open a new 
 branch in Holborn, and ordered a circular to be printed announcing an 
 issue of 2000 new shares at 5 premium. On the 10th of September, the 
 circular was approved, and ordered to be printed. The witness here ob- 
 served that he himself was absent on both the 4th and 10th of September. 
 On the 26th of June, 1855, the expediency of having their shares quoted on 
 the Stock Exchange was discussed ; and at the meeting on the 3rd of July, 
 when he (the witness) read over the minute that, " the court did not con- 
 sider the quotation of their shares on the Stock Exchange expedient," the 
 directors disapproved the minute, and the words, " the court deferred the 
 consideration of the question for the present," were written in its place. 
 On the 31st of July, 1855, Cameron reported to the directors that he had 
 instructed a stock-broker to show the quotation of the bank shares daily 
 in the share list. It was then observed that the shareholders were anxious 
 about it. 
 
 Sir F. KELLY here read the following passages from the directors' report 
 of the 30th of June, 1855 : " The supplemental charter in favour of the 
 bank, which the directors stated, in their last report, as being then about 
 to pass the Great Seal, was soon afterwards completed. The relative deed 
 has since been subscribed for 100,000, additional stock, and one-half of 
 this sum having been paid up, and the requisite certificates issued, the 
 increased capital has been duly notified in the Gazette. The directors have 
 also the satisfaction to state that they have allotted to respectable appli- 
 cants another thousand shares, representing an additional 100,000 ; and 
 that of the moiety of this sum which the law requires shall be paid up 
 before the issue of the corresponding share certificates, and which is 
 receivable by instalments, 33,129 10*. have been already paid by the 
 allottees. When all have paid in full this second addition to the capita], 
 trebling its original amount, and completing a subscription of 300,000, 
 will be duly published. Meanwhile, such of the allottees as have paid, or 
 hall pay, 50 per share, and subscribe the deed, will receive their certifi- 
 cates and interest on their payments at the same rate as the dividend 
 payable to shareholders ; the rate allowed on instalments short of payment 
 of the 50 per share being one per cent, less." 
 
 Mr. Paddison said the shares he had spoken of were those referred to, 
 iu the report read. Cross-examined : In the early part of the year 1855
 
 32G PACTS, PAILrBES, A>*D PEAUBS. 
 
 Brown, at a board meeting, objected to the issue of new shares. After 
 Cameron's return from Brighton, he made a proposal to the board, which 
 was objected to. He said he wished to call their attention to those shares, 
 in reference to the 71st clause of the charter. [This refers to the disso- 
 lution of the bank, if one-fourth of the paid-up capital should be lost.] He 
 strongly urged it, and suggested there should be a committee. I do not 
 remember that this was as to the valuation he had made. 
 
 Lord CAMPBELL said, with reference to the deposition made by the 
 defendant Esdaile in the Court of Chancery, in the course of certain pro- 
 ceedings which had been instituted under the Winding-up Act, which had 
 been tendered in evidence against him, as an admission on his part, to 
 show his knowledge of the state and condition of the bank, and which was 
 objected to, he had consulted four of his brethren on the bench, and they 
 all concurred with him in the opinion which he entertained, that the depo- 
 sition was admissible as against Esdaile, who made it, as tending to show 
 his knowledge before and at the time of his committing the overt act ; but 
 it was not admissible as against the other defendants. He therefore 
 thought that parts of the deposition ought not to be read at all, but only 
 such parts as applied to Esdaile alone. 
 
 Sir F. THESIGEB said he would direct those parts which affected the 
 other defendants to be struck out, and would read the deposition at a 
 future stage. 
 
 Mr. Paddison was again recalled, and said I was present at a court 
 held between the 17th and the end of March, 1855, when Brown said he 
 wished to call the attention of the directors to the state of the bank, in 
 reference to the7lst clause of the charter. No minute was made of what 
 took place, but I recollect he said that, according to his view, the bank was 
 already in the condition contemplated by the 7lst clause of the charter, 
 which provided that if at any time one-fourth of the paid-up capital of the 
 bank and reserve fund should be lost, the directors were to call a meeting 
 of the shareholders to dissolve the company. He said he was prepared to 
 prove that such was the then case. Some one present, but I can't say who 
 it was, asked him he proved it. Brown answered by referring specifically 
 to the loss which the bank had sustained by the advances made upon the 
 Welsh works, and to the oifer which he said the bank had made to take the 
 sum of 35,000 or 40,000 for them from Mr. Diimmler, and to the fact 
 that the bank had fixed the reserved bidding at 40,000, when they had 
 offered the works for sale, in the year 1854, through Messrs. Fuller and 
 Horsey. He also referred to the losses which the bank had sustained 
 through Mr. Oliver, of Liverpool, but he did not name any amount. He 
 also said that if the bank went on, they would do so on their own personal 
 responsibility. He added, that he, for one, was not prepared to encounter 
 that responsibility; and he protested on those grounds against the issue of
 
 TACTS, FAILTJEES, AND TBAUDS. 327 
 
 new shares. I was then asked this question by Aldcrmau Kennedy. Ho 
 said, " I ask you, Mr. Paddison, as our solicitor, whether Mr. Brown is 
 correct in saying that we should do so on our own personal responsibility ?" 
 Mr. Serjeant SHEE objected to the answer as being a privileged commu- 
 nication. 
 
 Lord CAMPBELL thought that, as it wns a communication made bon4Jide 
 by the defendant to his professional adviser, it wns privileged. 
 
 Sir F. THESIGEB said ho would bow to the decision of the Court. 
 Mr. Paddison went on to state that, on the 8th of May, 1855, Cameron 
 attended a meeting of the directors, at which Esdaile, Kennedy, Macleod, 
 and others were present, and called their attention to the 7lst clause of the 
 charter, and proposed an inquiry into the state of the bank in reference 
 thereto. Mr. Spens, in a rage, interrupted him, and said, "Pshaw! you 
 are always throwing that bugbear in our faces." Cameron was disconcerted, 
 but said he had been requested by a director to bring the matter forward, 
 and for that purpose he had already made some progress in an inquiry. 
 Spens said that if so he had done very wrong, for they could not have the 
 bank's interest interfered with. Cameron was put down by that imperative 
 manner, but he eaid he had been requested by a director to mention it. 
 [Several letters were here read, written by Esdaile, Cameron, and Macleod, 
 in the months of September and October, 1855, in illustration of the state 
 of the bank at that time.] On the 15th of January, 1856, a court of 
 directors was held, when Cameron submitted a draft of the abstract 
 balance-sheet, and also of the circular, to shareholders, which he had pre- 
 pared, in anticipation of the general meeting to be held on the 1st of 
 February, 1SCG. On the 22nd of January, 1856, Cameron submitted to the 
 directors a revised abstract balance-sheet, and various statistics relating 
 thereto, and the draft abstract balance-sheet was further considered. On 
 the 29th of January, 1856, the report was read, and ordered to be printed, 
 stating that a dividend of six per cent, would be paid on the capital paid up 
 to the 31st of December, 1855. On the loth of January a letter was 
 addressed by Esdaile, the governor, to Owen, the deputy-governor. [This 
 letter will bo found in the opening speech of Sir F. Thesiger.] The general 
 meeting took place on the 1st of February, 1856, at the Strand branch. 
 I attended that meeting, and about one hundred shareholders were 
 present. As each shareholder entered, a printed report and balance-sheet 
 were given to him. Esdaile, Owen, Macleod, Cochran, Kennedy, Brown, 
 Stapleton, and Cameron were present. Esdaile, the governor of the bank, 
 took the chair. In the first place, the circular convening the meeting \vas 
 read by me. After that, the report and abstract balance-sheet were read 
 by Cameron. The chairman (Esdailc) then asked some of the shareholders 
 to move and second the adoption of the report. That was done, and then 
 there was a discussion, but not a long one. Something was said by a share-
 
 328 TACTS, I-AILUJIES, A^D TEAUDS. 
 
 holder about issuing the new shares at a premium, and he said he thought 
 that a premium would be an obstruction against the public taking the 
 shares. Esdaile, the chairman, said it must be remembered that the bank 
 had paid a dividend of six per cent, for some years, and that the directors 
 thought the shares were worth a premium, which premium would be an 
 addition to the " reserve fund." Then there were some remarks made by 
 another shareholder about the bank's branches, and he expressed a doubt 
 whether the bank could profitably maintain so many branches, and he asked 
 whether they all paid. Cameron replied that some paid, and some did not. 
 A shareholder then made some remarks about the expenses to which the 
 bank had been put ; upon which Esdaile, the chairman, again spoke of the 
 fact of the dividend as inspiring confidence and hope, and asked whether 
 it was ever known that any institution had paid so large a dividend at so 
 early a period of its existence ? A remark was made, but I cannot say it 
 was by Esdaile, that the Union Bank of London had only paid four per 
 cent, for several years. Mr. Gillott made a remark, that somehow or other 
 the Koyal British Bank was in ill odour with the public ; upon which Mr. 
 Esdaile again spoke about the small original capital as being insufficient, 
 and mentioned the increase of the capital (paid up) from 50,000 to 
 150,000, and said he thought a further increase would encourage public 
 opinion in favour of the Bank. He mentioned the new joint-stock 
 banks established under the new Act, and said he saw no reason why the 
 Royal British Bank should not stand among the highest. Cameron was at 
 the meeting, and, in reply to a remark as to a want of tact with regard to 
 their shares, he said the shares of the Royal British Bank were not quoted in 
 The Times, because The Times did not quote the Daily Share List, but they 
 were quoted there. He also read some statistics for the purpose of showing 
 the progress of the bank. Cameron was called upon to read them in his 
 official capacity. Alderman Kennedy made some remarks to the effect that 
 it was reasonable the bank should have a premium on the new shares ; 
 that the reserved fund was a realized property, and equal to ten per cent, 
 on the paid-up capital ; and it would nob be fair that the purchasers of new 
 shares in the bank should have the benefit of that property, without pay- 
 ing for it. Owen made a few remarks on the bank's increase of capital, 
 which, he said, had increased the bank's business. He also passed an 
 eulogium on Esdaile, the chairman, for his exertions for the bank, which, 
 he said, were well known and appreciated. The shareholders expressed a 
 desire that there should be more weighty men in the direction, members of 
 the corporation of London. The report was agreed to, and the sum of 
 2000 was voted as a remuneration to the directors, which was the 
 regular allowance under the charter. A remark was also made, I think by 
 Esdaile, that a number of the new shares, at a premium, had been applied 
 for. He thought about 300. On the 5th of February, 1856, a court was
 
 TACTS, 1'AILUHES, A3TD FRAUDS. 329 
 
 held, when an order was made to advertise the new shares in the news- 
 papers. At that meeting Mr. Valiant was elected a director, 011 the motion 
 of Alderman Kennedy, his brother-in-law. At the end of 1855, or begin- 
 ning of 1856, attacks were made upon the bank in the newspapers. A notice 
 to correspondents in the Weekly News of November 3, 1855, was brought 
 before the board, in which it was stated that the editor had received a 
 communication containing "revelations of a startling character "respecting 
 the Royal British Bank, and that it required time to consider as to its in- 
 sertion. Was consulted about the articles which appeared in the public 
 papers. On the 19th of May, 1856, a letter was received from the Rev. 
 Mr. Gossett, insisting on the directors repurchasing his shares in the 
 bank at par ; and that if he did not hear from them to that effect by 
 twelve o'clock the next day, he would immediately convene a meeting of 
 the shareholders, by public advertisement, to consider the course to be 
 adopted for their mutual protection. A meeting of the directors was 
 held the next day, when it was agreed by the board that something 
 should be done ; and it was proposed that the bank should purchase 
 the shares, but Stapleton said that was illegal, and he was not in favour of 
 it. Kennedy also said the same. It was determined not to purchase 
 them, on Stapleton's objection. On the 23nd of May, another letter from 
 Mr. Gossett was read at a committee, when they said that something must 
 be done. I afterwards learned from Esdaile that the shares had been 
 taken up by the bank in the name of Mr. Sydney Kennedy, a broker on 
 the Stock Exchange, who was no relation of the defendant Kennedy, but 
 of Esdaile. 
 
 Cross-examined. Until the death of Mr. Mullins, I had no share in 
 the confidence of the directors. In the case of Alderman Kennedy, it is 
 the fact that he remained only a short time in the board-room. On accept- 
 ing office in 1854, he stipulated that his personal attendance should not be 
 required, as he had business elsewhere, and the weight of his name would 
 be something. The board sat from half-past twelve to half-past two or 
 three o'clock. I read the minutes, and the Bank of England pass-book. 
 Cameron read the weekly reports of the business done at the head bank 
 and branches. Some books were in the room, and Cameron read from the 
 books before him. In October, 1854, there was a conversation about 
 Hiram William's report on the Welsh works, and in August, 1855, there 
 was a vexation about Brown's securities, for which they did not get so 
 much as they expected. Brown was commissioned to go down to inspect 
 the Welsh works. On the 30th of August, 1855, Kennedy was not present 
 at the board, but Le was there on the 5th of February, 1856, when 
 Frederick Valiant was introduced. lie (Valiant) was an officer in the 
 East India Company's service. Lady Valiant's account continued till the 
 end of the bank, when she had a credit of 600. I received dividends
 
 330 FACTS, rAILTJBES, AKD PEAUDS. 
 
 for her till the last. The form of balance-sheet adopted was the usual 
 form. The form of the previous balance-sheets was taken, only altering 
 the figures. Sometimes they put the number of the new shares. The 
 shareholders were almost all commercial men, and so were those who had 
 accounts at the bant. Xo objection was ever made to the form of the 
 balance-sheet. Stapleton became a director on the 31st of July, 1855. He 
 became a shareholder by the purchase of 20 shares of 100 (50 paid up), 
 and retained them till the failure of the bank. He opened a deposit account 
 of 178, and had a small balance of 89 at the end. He never had any 
 accommodation. The directors were persons of wealth and respectability. 
 
 Lord CAMPBELL. Was Mr. M'Gregor ? 
 
 Mr. Paddison. Some were wealthy, and some were respectable, without 
 being wealthy. Stapleton, I believe, was introduced on the recommenda- 
 tion of Cameron, who was acquainted with Stapleton's relations, Alexander 
 and Sir James Matheson. Hopes were entertained in 1855 and 1856 that 
 Sir James Matheson would become a director ; he had consented to become 
 a trustee on the llth of December, 1855. On the 3rd of August, 1855, 
 when the balance-sheet and report of June 30th were read, they would in- 
 form him (Stapleton) that the capital of the bank was 300,000, of which 
 150,000 had been paid up, and there would be nothing to show that that 
 was incorrect. There was nothing said at the meeting to disparage that 
 statement. It would also appear that the "reserve fund," and "gross 
 balance, for the half-year ending the 30th of June, 1855, after making pro- 
 vision for bad debts, and for interest (12.844 185. lid.), paid and due on 
 deposits, promissory notes, and balances," amounted to 50.525 8s. 6d. 
 The paper now produced is the original balance-sheet laid before the 
 directors on the 29th of January, 1856, as the balance-sheet to December 
 31, 1855. It is the old balance-sheet, with the figures altered. Stapleton 
 could not test the accuracy of the figures without going through some 
 books. The change of the figures was the entire work which had been 
 gone through by the accountant. Neither the accountant nor the manager 
 (Cameron) said anything in my presence to lead any director to suppose 
 that the balance was incorrect. I did not remain in the room during the 
 settling of the balance-sheet. The phrase " the settling of the balance- 
 sheet," is the one used in the minutes, and I took it from the journal. 
 
 Sir F. KELLY Can you say now that one figure in the balance-sheet of 
 June, 1855, is wrong? 
 
 Lord CAMPBELL In what sense " wrong" ? according to Cocker ? 
 
 Sir F. KELLY I will ask whether there is one figure that is untrue ? 
 
 Lord CAMPBELL In what particular ? 
 
 Mr. Paddison You might as well ask me about the centre of the globe, 
 or the interior of Africa. I had no duty to discharge in reference to 
 the balance-sheet, and I took no natural delight in it. In order to show
 
 FACTS, FAILURES, A>'D FUAUDS. 33] 
 
 the figures were wrong, it would be necessary to go through the inquiry 
 which had occupied this Court for tho last week. Stapleton was a novico 
 at that time in banks ; he was a member of the bar. I did not know tho 
 amount of bad debts which existed in June, 1855. I was never asked to 
 make an estimate. [The witness was here cross-examined in the same 
 manner as to the balance-sheet of December, 31, 1855.] I did not know 
 what provision was made for bad debts. I never heard any statement 
 made as to the amount of the bad debts. Stapleton attended the board for 
 the first time on the 7th of August, 1855 ; but he did not attend again till 
 the 2nd of October, and a finance committee on the 3rd of October. He 
 then went to Scotland, in consequence of the death of his sister, and 
 attended on finance committees again on the 16th and 17th of October, 1855. 
 After that he attended pretty regularly, both at the daily finance com- 
 mittees and at tho meetings of tho board. He was elected deputy-governor 
 on the Gth of February, 185G, and sat twice a-week on finance committees, 
 which met to decide on the discount of bills, loans, etc. On the 14th 
 of November, 1855, after the business of the finance committee was over, 
 and the book was signed by Stapleton, a bill of Brown's for 400 was dis- 
 counted and entered in the book after Stapleton's name. This was 
 read to the board at their meeting on the 20th of November, and 
 Stapleton complained that the bill had been discounted without his 
 privity ; and from that time I marked an alienation between him 
 and Cameron, which continued and increased till the 22nd of July, 1856, 
 when Cameron resigned his office. On the 4th of December, 1855, on 
 the motion of Owen, seconded by Stapleton, a committee, consisting of 
 Stapleton, Macleod, and Cameron, was appointed to examine into Brown's 
 ecurities. The committee on the 18th of December reported, and it 
 was evident that there were suspicion and distrust on the part of 
 Stapleton towards Brown. Expressions were given out in 1856, which 
 produced irritation in Brown that, in the course of the spring of 1856, he 
 said he would never attend at the board as long as Stapleton was 
 there. On the motion of Stapleton, Brown, on the 24th of July, 1856, 
 ceased to be a director, for non-attendance for three months. Stapleton 
 was also the cause of Cameron's resignation. Stapleton continued to attend 
 with great regularity and diligence to the end of the bank, and was very 
 assiduous in the discharge of his duty, and strenuous in taking great pains 
 in improving matters. In December, 1855, I found that there were fcuer 
 bills becoming past-due than previously. Stapleton was nominated by tho 
 directors on the 31st of July ; but on the 1st of February, 1856, he went 
 through tho form of election by the shareholders. Ho was objected to as 
 wanting commercial experience. I believe (said tho witness, addressing the 
 members of the bar) the main objection to him was that ho was a member 
 of the bur. (Loud laughter.) I never saw anything in him inconsistent
 
 332 TACTS, FATLTTEES, A>*D PEATJDS. 
 
 \vitla the highest integrity with regard to the management of the bank. 
 By his conduct when he became deputy-governor, more especially, in 
 February, 1856, he showed an earnest desire to prevent mischief and to 
 manage well. In July, 1856, he opposed making a dividend, and proposed 
 a call. I had never seen anything in the conduct of Kennedy that 
 was inconsistent with the highest honour and integrity. I only have in my 
 mind one circumstance which I am obliged to refer to, connected with the 
 discussion in 1855 of the 7lst clause of the charter, which made a painful 
 impression on me. I was informed by Cameron some days after, that the 
 director who had requested him to bring forward the proposition was 
 Alderman Kennedy, and that he did not support him when he did so. 
 With that exception, I never observed anything in Kennedy that was 
 inconsistent with the highest honour and integrity. On the llth of 
 December, 1853, the date of Mullins's death, the Welsh mines were a great 
 clog upon the bank, and were a great anxiety to the directors and Esdaile, 
 except when Mr. Clark, and afterwards Mr. Thompson, took possession of 
 them. Esdaile's attention was unremittingly applied to relieve the bank 
 from that responsibility, and he sacrificed his own interest for the benefit of 
 the shareholders. He was partner with his father all that time in the City 
 Sawmills. Beyond his salary, he had no benefit from the bank. I 
 feel bound to say that Mr. Mullins, who was naturally and habitually given 
 to wild speculation, was the cause of the bank's unfortunate and destructive 
 connection with those works. The directors had an overweening and 
 exclusive confidence in him till his death, when they sent down Mr. 
 Thompson, in the hope of retrieving themselves. Their errors were errors 
 in judgment only, and too sanguine anticipations, and perhaps rather too 
 bold representations. They were sometimes led by reports to form such 
 opinions, but I think they sometimes "hoped against hope." The 
 Welsh works occupied the attention of the directors, to the exclusion of 
 other business, and they made some attempt to dispose of them. The 
 bank began with a professed capital of 50,000. They were under restric- 
 tions, and could not increase their capital without the consent of the Board 
 of Trade, and that restriction continued down to February, 1855, when 
 the supplemental charter was granted. Esdaile was a sanguine man; 
 and, beyond that, I cannot find fault with anything he did. I saw nothing 
 inconsistent with honour in all his relations of private life, and would have 
 the utmost confidence in him. He was a man of truth, if ever there was 
 one. Owen was one of the provisional directors. He went out of office in 
 February, 1854, and returned in February, 1855, and in February, 1856, 
 his connection with the bank ceased. He had been in trade as a haber- 
 dasher in Corain Street, and had a little money, which he put in the bank. 
 I never saw anything in him inconsistent with the strictest integrity and 
 probity. I should say of him, as of Esdaile, that in the relations of private
 
 FACTS, FAILURES, A>'D FBAUDS. 833 
 
 life he was an honourable and trustworthy man, and would wrong nobody. 
 Ho is a sanguine man too. He had a balance in the bank to his credit at 
 the close, and had no benefit from the bank except his salary and his 
 original remuneration. Mullins and Cameron had the entire confidence of 
 the directors. Mullins was allowed the run. The declaration of secrecy 
 was signed by all the directors. Brown was introduced to the bank by me 
 on the 3rd of February, 1853. Brown was elected on the same day with 
 Sir John Shelley, but the latter had not given his consent, and he continued 
 till July, 1856. After the meeting on the 15th February, Brown attended 
 in March, and was removed in July, 1856. He never attended frequently. 
 He attended to the Cefn works, whose office was next door to the bank. 
 The bank had no security from Walton for the bills, and the result was 
 the bank had recourse to Brown. But when every attempt failed, 
 the bank, in March, 1854, took security on all the vessels he had 
 except the "Severn." They got the security on the "Ambrosine," 
 which had been promised, in 1854. I told the directors the position 
 they were in, that it was impossible for them to get legal security, ex- 
 cept by the mortgage of March, 1855 ; for if Walton had become a bank- 
 rupt, the ships would have gone to his assignees, and the bank would have 
 had no security for Brown's notes discounted by the bank. I found that 
 the principal vessel, the " Hornet," was registered in Walton's own name, 
 and not in Brown's. I believe Brown's debt has been under arbitration 
 since the bankruptcy ; I have heard so. I heard there had been an offer 
 made of 10,000 for one of the ships, which was afterwards sold for 5,600. 
 After the securities were given, there was a meeting in March, 1855, when 
 Brown said the board had put the reserve price of 40,000 upon the Welsh 
 works. I knew that he was mistaken, for it was 40,000 for the Cefn 
 works, 13,000 for the Garth works, and 7000 for the stock. In answer 
 to Kennedy's question, whether, if the directors were to carry on the bank, 
 after having incurred such a loss as had been mentioned, they would do so 
 on their own responsibility, he answered that in the case supposed, un- 
 doubtedly they would do so, and, he added, it was for them to inquire into 
 the matter, and if they found, on inquiry, that they had sustained such a 
 loss, they were bound to call their shareholders together to dissolve the 
 company. If they found that they had not, but were on the verge of the 
 precipice, I told them it was for them to consider whether they could by 
 any means retrieve themselves and avoid falling over it. I used those 
 words. The matter then dropped, and Kennedy said ho was satisfied with 
 my explanation ; and that they must go on. They were disinclined to 
 carry on the conversation. I do not know that Brown's account had been 
 stopped. Brown said he would speak to the Attorney-General on the 
 subject in the House of Commons, without mentioning names ; but I told 
 him the Attorney-General would be sure to know, for he had held a brief
 
 334 PACTS, TAILTTEES, AtfD FEATJDS. 
 
 for the bant, and so had become acquainted with all its affairs. I told him 
 he would be doing an irregular thing, and one contrary to his declaration of 
 secrecy. Brown was present at the general meeting on February 1, 1856, but 
 I don't recollect that he said anything. The bill for 400 was drawn by Brown 
 on a person named Coot, and accepted by him; but it was not paid when due. 
 Cameron was a stranger to the original promoters of the bank. He was 
 introduced by M'Gregor, and gave shape to the project. At that time he 
 was a parliamentary agent, but M'Gregor recommended him for his 
 previous knowledge. Having become a director, he seceded, in order that 
 he might become the general manager. By the charter, the general 
 manager was disrnissible by the directors, and he was allowed to hold 
 shares. Before he fell ill, in 1855, Cameron laboured hard and was 
 anxious about the bank. I used to hear complaints from the directors of 
 his non-attendance in the hours of city business. He was not there late, but 
 not so early as they wished. Cameron explained that by saying that 
 he inspected the branches on his way. At the meeting in 1855, Cameron 
 protested against the issue of new shares till the valuation of the past-due 
 bills was made; but he was stopped by the manner in which he was 
 treated. He was informed of the relation in which he stood. He said to 
 me that if it was not for the interest of the bank he would resign imme- 
 diately. The new shares were issued during his illness, and the transfer of 
 Walton's debt to Brown at the same time. I hare heard Cameron object 
 to the increase of the advances on the Welsh mines, and advise the direc- 
 tors not to advance money on the works. Cochran's debt was doubled 
 during Cameron's illness. The sum of 1000 was added to the bad debt 
 fund in January, 1856, but I cannot say it was by Cameron's advice. In 
 May or June, 1856, there was a scheme on foot to transfer the bank to 
 another bank. Stapleton was in favour of the union ; but Cameron 
 opposed it. It was Cameron himself who instructed me to prepare the 
 security on his property. He said he wanted to make the bank safe, as he 
 was afraid of a relapse. Macleod joined on the 9th of August, 1853, and 
 and was then absent for two or three months, being just married. In 
 August, 1855, he was appointed visitor to inspect the branches of the 
 bank, and was so employed for twelve months. He is a young man of 
 highly respectable family and connection. When the differences took 
 place, in 1855, Macleod acted as an independent man. I saw nothing in 
 him inconsistent with honour and integrity. He took up seventy-seven 
 new shares, in addition to his qualification as director. I have no doubt 
 he paid for them in hard cash, and at the close he was the largest share- 
 holder. Those shares formed the subject of Macleod' s marriage settlement. 
 He bought the shares of Cameron, with a promissory note s which he after- 
 wards paid, nine months before the shares were issued. The business of 
 the bank increased during the last year.
 
 FACTS, FAILUEES, ASD FRAUDS. 335 
 
 Oil re-eiamiiiation the witness explained that, when be spoke of the 
 nits in the relations of private life, he meant in reference to their 
 conduct in the bank. He also said he believed Kennedy had paid 2500 
 on his shares. 
 
 It was then proposed to read Esdaile's deposition; bat, some difficulty 
 haying arisen as to what parts were to be omitted, 
 
 Lord CAMPBELL said he was of opinion, upon consideration, that the 
 whole of Esdaile's deposition might be read in evidence. But he (Lord 
 Campbell) should tell the jury that the statements of Esdaile were evidence 
 only against himself, and not against any of the other defendants. At the 
 same time, his Lordship thought that only those parts shonld be read 
 which affected Esdaile's knowledge and his acts while the conspiracy was 
 going on, and that the statements which affected the other defendants 
 should be passed over. The counsel for the Crown, however, would 
 exercise their discretion, and read what they pleased, and pass over what 
 they thought proper. 
 
 Mr. Craufurd was recalled, and said I remember Cameron's absence 
 from the bank through illness, from January to May, 1855, and that during 
 his absence Esdaile attended to matters -which he (Cameron) was in the 
 habit of attending to. I saw the green ledger and the general ledger of the 
 bank before Esdaile at the time, and also a share ledger and a diary of bills. 
 I believe I put in most of the entries in the green ledger. At that time the 
 green ledger was repeatedly in the board-room, before certain of the directors. 
 I recollect Stapleton, in 1855, asking me who Eobert Napier was, whose 
 account was in the green ledger, which was before him at the time, and I 
 gave him the information as far as I could. It was part of my duty, as ac- 
 countant, to prepare the balance-sheets periodically. I prepared the balance- 
 sheets in the same mode as had been adopted before, year after year. I also 
 prepared tabular statements, showing the details of assets and liabilities. 
 Those details were extracted from the balance of ledger book. There were 
 other tabular statements, showing the general particulars of expenditure, 
 investment, cash, etc., in the parent establishment and in the branches. 
 The tabular statements were handed by me to the general manager 
 (Cameron), to be used in connection with the balance-sheet. On tL 
 of MoTember, 1855, I handed to Cameron this paper, which is a tran- 
 script from tho general ledger of that date. It shows the assets in one 
 column, and the liabilities in the other. I began about the 14th of 
 January, 1856, to prepare the balance-sheet for December 31, 1855. The 
 balances were marked in pencil in the ledger, and I began to make up the 
 balance about tho 14th of January, 1856. These papers, marked A, E, 
 and C, have reference to the general balance-sheet. The paper marked A 
 is a printed form of the balance-sheet of the 30th of June, 1855, with 
 alterations made about the 8th or 9th of January, 1856, to adapt it to the
 
 336 FACTS, TTAILTJEES, AND FRAUDS. 
 
 31st of December, 1855. Having altered it I gave it to Cameron. This 
 paper marked B is also an alteration of the previous balance-sheet of the 
 31st of December, 1854. In B the paid-up capital is stated to be 100,000, 
 and the amount received on new shares is put in the inner column along 
 with the deposits, etc. In A, the paid-up capital was raised to 150,000, 
 the deposits on new shares allotted being completed. Cameron told me to 
 make those alterations, and I think he said it had been under the con- 
 sideration of the board. The paper C follows the paper B, and is the 
 last document I prepared previous to the ultimate balance-sheet. At the 
 general meeting, on the 1st of February, 1856, a balance-sheet, of which 
 this is a print, was read at the meeting. I prepared it in accordance with 
 the paper C. These are the four tabular statements which I prepared, in 
 reference to the balance-sheet of the 31st of December, 1855. [The witness 
 referred to the statement headed " assets."] The first sum put down in 
 the balance-sheet of December 31, 1855, under the head of " assets" was, 
 " By loans and convertible securities for short periods, advances on cash 
 credit accounts, bills discounted, etc., 986,272 lls. Id." The sum of 
 the various items under the head of " assets" in the tabular statements is 
 exactly the same ; but among the items which go to make up that sum are 
 " the suspense account, 46,278 5s. lid. ; past-due bills, 70,278 18*. 7rf.; 
 past-due bills continued, 24,784 Us. 9d. ; past-due loans, 17,742 Os. Id.; 
 De Tape's account, 1193 18s. 4d. ; the adjusting interest account, 
 17,769 19s. 5d." The next table is headed " liabilities," and contains 
 the item " bad debt fund, 3217 Os. 4d." The next table is "expendi- 
 ture" up to June, 1855, and December, 1855. The expenditure for the 
 half-year to December 31, 1855 (19,516 13s. 7<Z.), is carried into the 
 balance-sheet. The next table shows the investments, amounting to 
 155,787 5s. Sd. Particulars are shown herein, and so are they of the 
 preliminary expenses. The particulars of the balance-sheets are found 
 in the tabular statements. Previous to the meeting on the 1st of July, 
 1856, the balance-sheet was seen by the auditors, Chandler and Page, and 
 they audited them. I produced to them these two tables of "liabilities" 
 and "assets" (not those just described). They are different from the 
 tables I have just referred to. They also contain details. On the "asset" 
 side the bill account is marked 1, 2, and 3, without putting " past due," etc. 
 In the statement of " assets," of which I just spoke, the bill accounts are 
 headed in the precise form in which they stand in the bank books ; but in the 
 copy shown to the auditors they were simply entitled " Bill Account No. 1," 
 " No. 2," and " No. 8," and so on. Likewise, the loan accounts are 
 similarly entitled, " convertible securities," being called " Loan Account 
 No. 1," and " past-due loaus" " Loan Account No. 2." In the accounts 
 submitted to the auditors the sum of 48,733 is called " current accounts," 
 and in the other " over draughts." Cameron, with his own hand, made
 
 TACTS, FAILURES, AND FRAUDS. 337 
 
 tlie alteration before the accounts went to the auditors. A similar altera- 
 tion had been first made in June, 185:3. From June, 1853, tabular state- 
 ments were submitted to the manager, and, being altered in the samo 
 manner, to the auditors. In January, 1856, the audit of the balance-sheet 
 for December 31, 1855, lasted four or five hours. I read from the two 
 tabular statements to the auditors. I cannot produce the original paper 
 as altered by Cameron. I said to Cameron, " Mr. Pago seems to consider 
 that he is entitled to see all the bills and securities of the bank." He 
 (Cameron) said, " It is not the duty of an auditor to go into these matters, 
 or those of personal accounts." He said, " Mr. Page mistakes his duty ; 
 were ho to carry out his views, he would sit at the board-room table, go 
 into all the transactions of the bank, and then de die in diem comment 
 upon all the bank's transactions. Such a duty would entirely take away 
 the functions of the directors." I only read out to the auditors portions 
 of the tabular statements. They cast it up and found it agreed with the 
 printed balance-sheet. They looked at whatever accounts they thought 
 proper. I read out all the sums in figures. In the paper produced to the 
 auditors, headed " assets," there are, in the seventh line, these letters, 
 "P. D. B." (past-due bills). I did not read " P. D. B.," but gave the 
 auditors the amount. I received no directions as to how I should read it. 
 The amount of the advances made on the Welsh works, the Islington 
 Cattle-market Company, Mullins's, Brown's, Oliver's, M'Gregor's, Blacker'?, 
 Gwynne's, Cochran's, and Cameron's debts are all included in the " assets." 
 It also comprises all the past-due bills, past-due loans, bills continued, and 
 other items in the tabular statement, down to December 31, 1855. There 
 is the "adjusting interest account," and the "suspense account." The 
 advances to the Welsh works, to the extent of 43,413 12s., are included 
 in the " suspense account," and to the extent of 19,741 5s, under the 
 head of " convertible securities." A sum of 33,450 12$. 5rf. advanced 
 to Messrs. Diimmler and Swift in respect of the same, is included under 
 the head of the " cash credit account," and a further sum of 11,367 13s., 
 under the head of " adjusting interest account." The total amount 
 ad\ anccd on the Welsh mines, with interest, up to the 31st of December, 
 1855, was 108,003 2*. 6d. ; 11,367 was for interest on the advances, and 
 that was taken aa "assets." The Islington Cattle-market debt was 
 8,600 ; Do Tape's debt was 1193 18*. 4rf. ; Mullins's debt was in all 
 10,016 16*. 3d. Interest was charged on all the sums to the extent of 
 52o 10*. Id. Next came Brown's debt, which consisted of due on draw- 
 ing account, 30,731 8*. dd. ; discount account, 8060 14*. Hit.; debt 
 on convertible securities, 35,935 10*. lOd. ; past-due bills, 4906 2*. Td. ; 
 total, 7l>, 137 3*. !(/. ; Edward Oliver's debt, of Liverpool, due on past- 
 due bills, 14,162 4*. 5d. ; M'Gregor's debt, 7369 8*. 3c/. ; Blackcr's 
 debt, 1513 0*. 2d.; Gwynne's debt, 13,415 19*. lie/.; Cochrau's debt, 
 
 Z
 
 33S PACTS, TAILTTEES, A2fD Pr.AUDS. 
 
 \vitli interest, 9503 3s. 5d ; and Cameron's debt, amounting to 23,393 
 12s. 7d., after giving credit for the balance of 693 8s. IQd., which 
 remained to the credit of his drawing account. 
 
 Cross-examined. I was accountant from February, 1853. I have 
 been a clerk for many years in Scotland and in London, and well ac- 
 quainted with the manner in which accounts are kept. Many banks put 
 expenditure under the head of assets, and some do not. Liquidation is an 
 " asset," etc., and money paid to directors. It is put there to show tho 
 shareholders that the directors have been paid. Dividend is also properly 
 put there. The capital is entered as a liability, on the principle that, 
 having received it, they are liable to account for it. On the other hand, 
 property expended on buildings is put under the head of " assets." It is 
 right to insert all debts under " assets," unless you write them off. A 
 debt should not be written off, unless it is hopeless. If you write off a 
 debt, you lose sight of it entirely. When hopeless, bad debts should be 
 written off the profit and loss. All the balances except Slacker's are 
 included in the gross sum set forth in the assets in the balance-sheet of 
 June 30, 1855. Five per cent, on the net profits were set apart for bad 
 debts ; but no calculation was made of the bad and hopeless debts, in 
 December, 1855. A calculation was made in June, 1855, by Mr. Barnard. 
 I made out the balance-sheet in the same way from the commencement. 
 "When a debt is lost, it should go to the profit and loss of the half-year. 
 On one occasion Mr. Cameron said to me, "I understand you have been 
 speaking to Mr. Coc-hran ; it is exceedingly bad taste, and any recurrence 
 of it will meet with my severe displeasure.' ' I never saw anything in 
 Stapleton inconsistent with honour and integrity. From what I saw of 
 Esdailc, he devoted himself anxiously to the affairs of the bank. He was 
 there morning and night. There was nothing inconsistent with honour 
 and integrity in his conduct in connection with the bank. 79,437 3s. Id. 
 was the amount of Brown's debt. That includes the trade bills then 
 running and past-due. Those that were paid at maturity would reduce 
 the amount. He was charged six per cent, on his discounts, and there was 
 an allowance on cash balance of two per cent. The observation made by 
 Cameron may have arisen from a report that Cochran had endeavoured 
 to get his bills done without the knowledge of the board. The words 
 " provision for bad debts" in red ink are in my handwriting. In the last 
 balance- sheet, December 31, 1855, the words are, after making a provision 
 " on account of bad debts." I don't recollect that the addition of 1000 
 for bad debts was made at Cameron's suggestion. This abstract of the 
 balance-sheet of December 31, 1855, prepared in my handwriting, makes 
 out the profit to be 30,551 2s. 7d. for the year. I was made general 
 manager on the 22nd of July, 1856, when Cameron left. The principle on 
 which the balance-sheet was framed by me to June 30, 1856, was the same.
 
 FACTS, rAILTJBES, A>*D FB.YUDS. G39 
 
 The same form of auditing was pursued, and the auditors signed the 
 balance-sheet thus : 
 
 ' We, the auditors undernamed, having examined the foregoing balance- 
 sheet and abstract relative accounts, have found them correct, and sign 
 them accordingly. 
 
 "THOMAS CHAXDIIB^ Auditor3 
 " THOMAS PAGE, ) 
 
 " Eoyal British Bank, July 29, 1S3G." 
 
 "\Vheu I prepared the balance-sheet for Cameron, I also prepared a fair 
 copy for the directors, and I had a copy myself. This is the draft pre- 
 pared by me of the balance-sheet for June 30, 1856. The alterations arc 
 in Monro's handwriting. This balance-sheet (C) is in my handwriting, 
 for the half-year ending Juno 30, 1856. Cameron has told me that there 
 were complaints of the board of directors connecting themselves with other 
 companies. I have never known Cameron connect himself with any other 
 company. In June, 1856, I believe, Cochrau's was a good debt. I knew 
 one of his sureties at Liverpool to be a man in good position. Up to 
 August, 1856, my impression was that the bank would be able to dispose 
 of their interest in the Welsh works. I also entertained the opinion in 
 August, 1856, that the bank would lose nothing by them, and I never 
 heard anything to the contrary up to that time. I was not a competitor 
 for Cameron's situation as manager. I knew nothing of it till it was 
 offered me. The bad debt fund was to guard against ascertained and 
 future loss. During the eight days before the close of the bank, they 
 must have paid away 280,000. 
 
 Re-examined. The whole of Slacker's bad debt was included in the 
 "ets." Interest had ceased to be calculated on some of the bills, about 
 40,000, since June, 1855. Of Mr. Brown's debt, hia liability on trade 
 bills was 8050. I had not been down to the "Welsh works ; and I should 
 know nothing about them, if I had. The bank, before it stopped, had re- 
 discounted nearly all its bills. Early in 1854, I proposed to Cameron to 
 expunge bad debts. He said it could^ not be done at once, and it was his 
 opinion that the bad debt fund should be increased, to assist as much as 
 possible. 
 
 Mr. Williamson, a clerk in the British Bank, cross-examined. Mr. 
 Craufurd and Mr. Monro told me that it was Mr. Cameron's wish not to 
 give any information to Mr. Valiant, who was examining into the books 
 of the bank. In consequence of that, I gave him as little assistance as 
 possible. No other director ever asked. Mr. Craufurd did not give as a 
 reason, that he did not wish one director to pry into the accounts of another. 
 
 Re-examined. The balance in hand, when the bank stopped, was 
 18,039 5*. 7d. ; the money lodged and lent book was made out by me, 
 and contained a true account.
 
 340 FACTS, FAILURES, AXD FKATJDS. 
 
 Mr. Duncan. When the bank stopped, we had 35,000 in the Bank 
 of England, and 18,039 5s. 7d. in the till at the head-office only. Cross- 
 examined : We were obliged to re-discount. All bankers do not do that. 
 When our balance at the Bank of England was 20,000 we re-discounted- 
 In October, 1855, there was considerable pressure in the money-market. 
 
 Re-examined. The bank raised large sums by re-discounting between 
 the 23rd of August and the 3rd of September, and in that way they raised 
 the amount paid out. The bank had 60,000 in Consols. In December, 
 1855, the bank had 155,787 5*. 8d. in cash. 
 
 Mr. Ambrose, cross-examined. I attended the examination in Chancery, 
 with the books made up since the bankruptcy. It took me and another 
 three months to make them up. Those are the books referred to by Es- 
 daile in his deposition. 
 
 Mr. P. Brown, said he was a short-hand writer, and he produced his 
 notes of what took place at the meeting of the shareholders of the Koyal 
 British Bank, on the 1st of February, 1856. Cross-examined : I was em- 
 ployed by the directors, and I made an abridged, not a verbatim note of 
 what took place. 
 
 The report was then read. It stated that all the defendants were pre- 
 sent, and the account agreed in general with the brief account of what took 
 place, given by Mr. Paddison, in his evidence. 
 
 Mr. William Gatherer said I was the registrar of shares of the bank 
 down to the time of the stoppage. This certificate to the Board of Trade, 
 dated the 16th of January, 1856, is signed by E. Esdaile, W. D. Owen, 
 L. D. Cochran, J. Stapleton, H. Brown, E. H. Kennedy, L. M. Valiant, 
 and H. D. Macleod. [It recited a supplemental charter of the 23rd of 
 February, 1855, by which power was given to increase the capital to not 
 exceeding 500,000, by the issue of additional 100 shares, and that the 
 capital of the company had already been increased by the sum of 100,000, 
 as appeared by a supplemental deed of the 12th of June, 1855. It then 
 stated that the directors of the Eoyal British Bank had ordered the capital 
 to be further increased by the sum of 100,000, and certified that the 
 whole amount of such increased capital had been subscribed for ; that 1000 
 new shares of 100 had been issued, and 50 per share paid up, and that 
 a supplementary deed had been executed.] That related to the second 
 issue of 1000 new shares. The circular of the 10th of September, 1855, 
 stated that the directors had determined to issue 2000 more shares at a 
 premium of 5. Applications were made for them (the third issue) on the 
 15th of September, 1855, and continued down to May, 1856. In all, 280 
 were applied for. On the 18th of December, 1855, the directors autho- 
 rized Mr. Cameron to reserve from the last issue a sufficient number to 
 make 150,000 paid up. There was 2400 transferred from the third 
 issue, to complete the second issue. On March the llth, 1S56, the di-
 
 FACTS, FAILURES, AXD FBArDS. 341 
 
 rectors ordered the then present advertisement of bank shares to be discon 
 
 Cross-examined : Esdailo never had any dealings with shares at 
 
 all, except his qualification. The certificate refers to the third issue of 
 
 shares, which was mentioned in the report of June 30, 1855. Ee-examined : 
 
 the supplementary deed, executed by the parties who took the last 
 
 issue of 1000 shares at a premium. It is not dated, but it was executed in 
 
 May or June, 1856. About 10,000 was paid up. 
 
 Mr. Craufurd, again examined. The " suspense account" in the ledger 
 contains entries of purchases of shares in the years 1853, 185-1, and 1855. 
 On the 29th of January, 1855, there is a debt of 400 for eight shares. 
 I think Kennedy gave the order for the entry. Cameron ordered me to 
 transfer the shares of the value of 4000 to 5000 for shares to the private 
 account of Henry Empson. I commenced that account by Cameron's 
 order, and I directed the purchase of Mr. NicoU's shares by Cameron's 
 orders. 
 
 Mr. W. Scott said In February, 1856, I was instructed by Mr. 
 Craufurd to purchase ten shares for the Royal British Bank from \V. A. 
 Braddock. The bought note which I produce has Cameron's initials, 
 " H. I. C." I drew a cheque on the bank for the amount of the shares, 
 503 15*., and sent them to tho bank. I was credited by the bank with 
 the cost of tho shares. Three days after, tho 16th of February, I was 
 requested by Mr. Craufurd to purchase some more, and the bank credited 
 me with tho amount. 
 
 Mr. Craufurd. I had instructions to purchase them from Cameron. 
 These are tho shares which stood to Empson's private account. I suggested 
 Mr. Empson's name to Cameron. He-examined: On the 30th of May, 
 1855, I was authorized by Cameron to purchase twenty old and twenty 
 uew shares for 2000 for Henry Empson. The bank credited me with the 
 amount. Those shares were transferred to the name of Henry Empson. 
 The shares were entered to Empson's private account. There was a divi- 
 dend on those shares in June, 1855, which went into the profit of the bank. 
 About October, 1855, I saw Cameron, and mentioned that there were some 
 more shares for sale. 
 
 Mr. Scott said On the 29th of October, I bought fifteen shares at par, 
 and was credited by the bank with the amount. I also purchased six 
 shares from the executors of Mrs. Wells, on the 27th of September. 
 
 Mr. Craufurd. I have no doubt I gave tho authority to purchase, but 
 I don't recollect by whose authority ; I put them in the " suspense ac- 
 count," but I don't recollect by whose authority. I remember that, in 
 1 S56, Cameron instructed me to purchase ten shares iu the name of 
 M. H. Percival. I debited Mr. Empson's account with it. Mr. Scott 
 was paid for them, in tho same way as for the others. On October 16, 
 1S35, I was instructed by Esdaile to purchase five shares. lie instructed
 
 $, rAILTJEES, A>~D FRAUDS. 
 
 me to purchase the shares, and pay the money to Messrs. Yenning, Xaylor, 
 and Eobins, solicitors. The amount was about 250. I got the money 
 from one of the tellers of the bank, and toot it orer, and got the receipt. 
 Esdaile's account was debited with the amount. It went into the " sus- 
 pense account." 
 
 Mr. Gatherer said That on the 16th of October, the shares wei-e 
 transferred to Eobins, and by him to Cantrill, on the 3rd of November. 
 On the 5th of November, the money, 250, was paid back to Esdaile. 
 
 Mr. Craufurd. I have a memorandum of Kennedy's relating to Mr. 
 Spens's shares. [Read.] " Please to remember that Mr. Spens wishes to 
 dispose of his shares. He would have done so by his broker, but he leaves 
 it to us." At the end of August, 1855, by direction of Cameron, I credited 
 Spens's account with 1000 for the shares, and debited the " suspense 
 account." on the 28th of August. A dividend, due on the 31st of De- 
 cember, 1855, was carried to the profit of the bank. There are other 
 transactions of this kind, amounting, in the aggregate, to 9000. At the 
 end of 1855, the sum of 6403 10s. stood to the debit of Empson's ac- 
 count. That amount was carried into the balance-sheet, as part of the 
 assets of the bank. All the sums for these purchases were debited to 
 Empson's account, or to " the suspense account." His account, on the 
 face of it, would purport that he was the lionafide purchaser ; and, on the 
 failure, he was found to be a debtor. Just before the failure of the bank, 
 Empson applied for an indemnity ; but Mr. Stapleton refused to give an 
 indemnity for what had been done without his knowledge. 
 
 Mr. Gatherer then produced a list in Esdaile's handwriting of the first 
 1000 shares. He said it showed how many had been purchased by Cameron, 
 or in his name. I do not know how many they are. Kennedy asked me how 
 many shares Cameron held, and I showed him the list of shares to the end 
 of December, 1854, and how many stood in Cameron's name. They pur- 
 ported to be to his own account. He (Cameron) said he held 14 and 80 in 
 his ov,-n name. I know Cameron claimed the shares as his. The 14 shares 
 were of the original allotment. 
 
 Mr. Thomas Dakin, a wholesale druggist, said I am acquainted with 
 Kennedy. In January, 1856, he spoke to me, and said he wished to in- 
 troduce me to the Koyal British Eank. He was a friend of mine, and I 
 had known him for several years. He said the bank was about to remove 
 to fresh offices, to increase its share capital, and that, in his judgment, 
 with good management, it was likely to become one of the leading institu- 
 tions of the metropolis. I made inquiry. He said I might see the charter 
 of the bank. I asked for a list of shareholders and the reports and balance- 
 sheets of the bank. They were sent to me from the bank. They were 
 returned, after perusal. I asked him as to the assets of the bank. He 
 said they were very satisfactory. He said the bank had one or two locks-
 
 TACTS, FAILURES, AND FBAVDS. 
 
 up of capital, which had retarded its progress, but lie thought so well of 
 the bank that he had introduced his own brother-in-law, Mr. Valiant. 
 
 thme :-t.iti.'incnts, I consented to become a director, and afterwards 
 
 i'rom Kennedy that I had been elected on the 19th of February. I 
 
 u told by Kennedy what number of shares I must purchase, and 
 
 1 arranged to purchase twenty shares. I heard they had been issued at a 
 
 premium, and remarked, that going into the direction, I ought to have the 
 
 shares at par. Ho said he thought I ought, and that tho bank would pro- 
 
 , ;u at par. I paid 1000 for twenty shares. I attended for the first 
 time on the 2Gth of February, 1856, and several other meetings, till the 
 10th of March. On the last occasion I was present, something occurred 
 about the price of iron. I made the remark, " You are not manufacturers 
 of iron?" To whicli Mr. Stapleton replied,"! thought Alderman Ken- 
 nedy had informed you of that circumstance." Kennedy and Esdailo were 
 not present. I said I should liko to sec the governor of the Royal British 
 Eauk, intending to have an interview. Something occurred in my private 
 
 \vhich made me determine to withdraw. Early in March, 185G, I 
 got my 1000 back. I called on Cameron, arid stated I could no longer 
 be a director of the bank, and I had no wish to hold shares. I called 
 again, and saw Esdaile in the manager's office, and made that representa- 
 tion afresh. Esdaile gave instructions to Cameron that I should receive 
 back my 1000. [A letter of Kennedy was here read, in which he said, 
 " Mr. Paddisou should notify to Mr. Dakin the course he has to pursue to 
 retire. Aflcr having signed the declaration and sat at the board, he should 
 not repudiate the connection as if it had never existed. He has paid 
 1000, and ten shares have been assigned to him. Ho ought not to leave 
 us to get out of this as we can, but must bear the transaction."] I subse- 
 
 'y got back my 1000 from the bank. 
 
 Mr. Craufurd. The 1000 which had been received, had gone to the 
 credit of Macleod's account. I paid the 1000 back. Cross-examined : 
 I had sc-veral interviews with Kennedy. I have always had the highest 
 opinion of Kennedy's character and integrity. 
 
 .:m Nicoll, examined. In Mnrch, 1855, Kennedy spoke to 
 me about the Royal British Bank. He said it was a flourishing c< 
 
 I thought the capital was small. Ho showed me soino circulars. 
 Ho said they were issuing new shares. He showed mo tho balan> 
 to the 31st December, 1854. I understood him to say that the shares 
 were to be issued at a premium, but ho said the shares would In- i-.-.u 1 t > 
 me at par. I took twenty shares, for which I paid 200, and the i 
 600, in September, 1855. Alter that, I went one day to the bank, and 
 
 'reduced to Esdaile. I made general inquiries as to the Im-i. 
 
 ;ik, and mode of conducting it, and received general answers. I was 
 not satisfied, and determined not to become a director. I told K
 
 314 TACTS, FAILTJttES, A>~D 
 
 of my determination. In February, 1856, I got rid of my shares. I had 
 signed the deed. I told my broker, Braddock, to sell ten of them in the 
 market. I know that he sold ten on the 15th of February, 185G, and I 
 received 500 for them. I executed a transfer of those shares to Air. 
 Empson. After that, in February, I instructed Braddock to sell the re- 
 maining ten shares. They also -were sold for 500, and transferred to Mr. 
 Empson. There is no acceptance by Empson of the transfer. Before I 
 sold those shares, I heard Kennedy, in conversation, accidentally use the 
 words, " the unfortunate British Bank." I asked him what he meant by 
 it. He said, " Because you and other gentlemen have refused to become 
 directors." Cross-examined : During the time I have known Alderman 
 Kennedy, he has borne a high character for honour and integrity. I am a 
 director of the London and County Bank. I do not know that that bank 
 began with a capital of 34,000. 
 
 Mr. George Blackie examined. About the 8th of August, 1853, I 
 obtained five shares in the Royal British Bank, and paid for them in 
 September. I received copies of the reports. About the 8th of November, 
 1855, I received this letter from Mr. Paddison, and in consequence I called 
 at the bank. I received several letters in 1856, calling upon me to sign 
 the deed of settlement, which I always refused. In January, 1856, I went 
 to the bank and saw Cameron, and told him I had had several applications 
 to sign the deed, and I had determined not to do so. He asked me why. 
 I said they were not conducting their business in a legitimate manner, and 
 they were establishing brandies so fast, that they were injurious to the 
 bank. I said I did not like to incur the risk of losing what I had gained 
 by honest industry. He said he would lay my case before the directors. 
 I heard nothing from him, and in a week I went to him again, and said 
 he had not kept faith with me. He said again that he would that week 
 lay my case before the directors. He failed again, and then I found out 
 when the directors met, and went again. Ultimately, on the 7th or Sth of 
 February, 1856, I saw the directors. They asked me my business. They 
 asked me if I wished to withdraw my shares. Some one said, " if he is 
 not with us, he is against us." I said I did not think the bank was in a 
 good state. Esdaile said, " Have you any doubt of it?" Ultimately, I 
 got my money back, by a cheque from Mr. Craufurd for 399 5s. I0d. } in- 
 cluding interest. Cross-examined : I went away quite satisfied. 
 
 Mr. E. Goddard examined. In 1851, 1 became a depositor, and, in 
 1852, I took ten shares in the bank. I attended the meeting on the 1st of 
 February, 1856. In June, I noticed that the shares were quoted below par 
 in the Stock Exchange. In consequence of that, I went to the bank. 
 I saw Craufurd. I bought four shares in June, and sixteen in July. 
 Shortly after, I went to the bank, and saw Esdaile. I told him I had been 
 a shareholder for a long period, and that I had recently been offered more
 
 FACTS, FATLrRES, A>'D FBATJDS. 
 
 at a less price. I asked him, " Is there any real cause for this ?" Esdaile 
 
 i rau-r, they were doing a good and improving business. 
 
 I allude more particularly to here" (the South Sea House). He said, 
 
 " there was ill-feeling from private banks, which had prophesied that 
 
 aid lose 20,000 in the first year of our existence. Now, as you 
 
 know, we have falsified all." 
 
 Sydney Kennedy said I am brother-in-law of Esdaile. In conse- 
 quence of a letter of the 22nd of May, 185G, I called at the bank and 
 -ilaile. [This witness was called to prove that he had purchased the 
 Kev. Mr. Gossett's shares, already proved ; and as his Lordship thought 
 further evidence on this part of the case was unnecessary, it was with- 
 drawn.] 
 
 Mr. Esdaile's deposition was then read, omitting certain portions which 
 implicated other defendants. He made a clear admission of his knowledge 
 of the real state of his bank. 
 
 Mr. Cantrill examined. I was a shareholder in the Royal British Bank 
 in 1S53 and 1856. I was also a customer of the bank. I attended a 
 meeting of shareholder?, on the 1st of February, 1856. At that time I was 
 not acquainted with the true state of the bank's affairs, nor down to 
 the time when the bank stopped. I was paid my dividend of six per cent. 
 for the half-year to December 31st, 1S55. Cross-examined : I became 
 a shareholder in September, 1855. I had five shares then, but I took 
 thirty-live afterwards. Re-examined : I took twenty-eight shares in Novem- 
 ber, 1855, five more shortly after, and then two more in March, 1856. I 
 
 :ved a copy of the report presented on the 1st of February, 1856. 
 
 Mr. Marcus said I was a shareholder in the Royal British Bank the 
 
 latter part of 1855, and in 1856. I attended the meeting on the 1st of 
 
 February, 1856. I received the report and balance-sheet at that meeting. 
 
 time, I only knew the condition of the bank from the statements 
 
 laid before me. I was paid the six per cent, dividend in February, 1856. 
 
 Mr. Beattie. I was a shareholder in the Royal British Bank, in the 
 latter part of 1855, and in 1856. I attended the meeting on the 1st of 
 February, 1850. I knew nothing of the state of its affairs, except what I 
 learned from the officers, and from the balance-sheet. 1 was a creditor 
 of the bank in deposits till within three days of the stoppage. 1 \\as paid 
 the six per cent, dividend in February, 1856. 
 
 Mr. Mitchell said I was a shareholder in this unfortunate bank iu 
 
 1855 and 1856. I was at the meeting on the 1st of February, 1856, and 
 
 1 the report and balance-sheet. I was not acquainted with the true 
 
 position of its affairs. I was paid the six per cent, declared dividend on that 
 
 half-year. 
 
 Stewart. I was a shareholder of the bonk in 1855 and 1856. I 
 attended the meeting on the 1st of February, 1856. I was not acquainted
 
 TACTS, FAILTJHES, AXD TEAUDS. 
 
 with the true state of the bank's affairs up to the very last. I was paid the 
 six per cent. I was not a customer of the bank. Cross-examined : I was 
 a shareholder in the Union Bank, Their balance-sheets are in pretty 
 nearly the same form as these. 
 
 Dr. Richards examined. I was a shareholder of the bank in 1S55 and 
 1856. I was at the meeting in February, 1856, and received the report and 
 balance-sheet. \Ye never had any true state of affairs. I knew nothing 
 more than the balance-sheet shows falsehoods. I thought I was dealing 
 with gentlemen, but I was mistaken. I received the six per cent, dividend. 
 I was a customer, and an unfortunate shareholder, and swindled in all 
 directions. Cross-examined : Unfortunately I borrowed money of the 
 British Bank to the extent of 800. They induced me to borrow. That 
 was in 1855. I did not receive the 800 in my own notes. They took 
 some of their own shares as security precious security ! This witness 
 explained the mode in which he said he had been "swindled," as he called it, 
 but as he was addressing Lord Campbell at the time, his precise expressions 
 could not be caught. He was understood to say that he had been induced to 
 take shares by the loan of money from the bank. 
 
 Mr. Titcombe examined. I was a depositor in this bank before 1S55, 
 and continued to be so down to the stoppage. I received this circular of 
 the 6th of March, 1855, as the issue of new shares. I sent this letter, of 
 March 26, to the bank, and had two shares allotted. [The letter had 
 Esdaile's writing in it, " allotted in committee by Edward Esdaile."] I 
 received the report and balance-sheet of February, 1856. I knew no more . 
 of the bank than I was told by the papers sent me. I was paid the dividend, 
 and held my shares till the bank stopped. I was a depositor. 
 
 Mr. Scott examined. I am a stock and share broker, and acquainted 
 with the prices cf shares in the market. In the end of December, 1855, 
 Eastern Archipelago shares were not marketable. Strand Bridge shares 
 might probably be worth about 5 per share. I never heard of Wark worth 
 Dock Company shares in the market. [All these shares were M'Gregor's 
 securities.] The shares in the Irish Beetroot Sugar Company had no 
 value. There was no market for shares in the Irish Peat Company. 
 Shares in the Chartered Australian Land and Gold Company had no value, 
 unless a few shillings per share. I am speaking of December, 1855. 
 
 Mr. W. Cooper. I am clerk to Mr. Lee, the official assignee in bank- 
 ruptcy. The debts proved against the bank under the bankruptcy were 
 537,646 Is. Gd. The total amount collected was 279,083 3*. Sd. A sum 
 of 5000 was retained by the official assignee as an indemnity, and the sum 
 of 33,000 was outstanding; making a total of 3] 7,083 3s. 8d. That is 
 independent of the capital subscribed. The capital subscribed (150,000) 
 was all lost ; and no debt was proved in respect of capital. Among 
 the assets I put down the Welsh works at 000. There was an agreement
 
 TVCT3, FAILURES, AXD FBA.UDS. JU7 
 
 made, on the 8th of February inst., for the landlord to take the works off 
 the hands of the assignees for that sum. That was the best agreement 
 which could be made. Cross-examined : The agreement was made fivo days 
 before the trial. The messenger had the management for a year. The 
 official assignee found the funds. There hare been two dividends made- 
 The first was 5s. Gd. and the second 2s. 6d. in the pound. We expect 
 2. more. Under the winding up there will be 4s. from the contributa- 
 ries, and perhaps more. "VVe have paid 10s. in the pound from the property 
 of the bauk. The legal expenses under the fiat have been about 8000. 
 That was for " working the bankruptcy." (Laughter.) The expenses in all 
 will be 20,000. The official assignee's item is included in the 20,000. 
 Including the official manager, it will be 22,000. Those are all the 
 expenses up to this time. If more work is done, there will be more to pay. 
 I do not know whether they let the water into the mine, and drowned the 
 mine. The landlord brought an ejectment for a forfeiture, while the mes- 
 senger was working the mine. The agreement to give up the mine for 
 6000 was made as a compromise. [The agreement was here read, by 
 which the action was settled, and the mine (the Cefn), including plant, etc., 
 given up for 6000.] The 6000 was paid for the machinery, and the 
 interest The assignees could not find a purchaser. It is the trade 
 assignee who sells the property. I do not know the mine was valued 
 at 40,000. The 22,000 includes 2700 for the official assignee ; 1000 
 for the chief registrar, and also messengers, managers of Welsh works, and 
 surveyors, etc. The 5000 is also included in the 22,000. There was 
 also a long controversy in Chancery between the bankrupt authorities 
 and winding-up authorities, upon which, after a decision of the Vice- 
 Chancellor, there was an appeal. 
 
 Mr. Johnson examined. I am the official assignee in the bankruptcy of 
 Humphrey Brown. I produce the proceedings. The adjudication was on 
 the 30th of July, 1857. There is not one shilling assets. A statement in 
 the proceedings of assets says that there are 650 good debts, 1610 other 
 debt?, and 310 which will be paid to petitioner, on the sale of some pro- 
 perty, not saying what. The amount of debts is not stated in the petition. 
 Cross-examined : There were proofn, at the choice of assignees, of 
 3321 13*., but all are through the British Bank, except two, one of 
 which, for 2 1C 17s., was adjourned for consideration, and the other for 
 32 10s. There is no proof by the British Bank. He-examined : Those 
 creditors who have proved did so, for choice of assignees. The last examina- 
 tion is not yet over, and proofs may bo tendered till then. 
 
 Mr. Draper. I am the clerk of the official assignee in Cochran's bank- 
 ruptcy, and he was adjudged bankrupt on the 10th of July, 1S57. The 
 proceedings have advanced to outlawry, which was on the 7th of September, 
 1857. We have received 147 8s. 11</., and also 475 for the sale of shares
 
 34:3 TACTS, PAILUEES, A>'D 
 
 in a ship in all, 622 8.?. 11<2. Only two debts were proved ; one by tho 
 official assignee of the British Bank for 7829, and the other by the official 
 manager for 1500. Cross-examined : Cochran is described as a merchant 
 and shipowner, of the South Sea House. I do not know that he (Cochran) 
 is a native of Nova Scotia. I do not know that he has taken his property, 
 and gone to Nova Scotia. 
 
 Mr. Cooper again examined. Humphrey Brown's securities have realized 
 to the bank the sum of 20,816 15s. ; M'Gregor's, 1188 12s. 6d. ; 
 Cochran's, 2017 10s. ; Slacker's, 375. The Islington Cattle Market 
 Company's debt has realized nil; Grwynne's debt, nil; Mullins's debt, nil; 
 Cameron's debt, nil. Cross-examined : Brown's ship, the " Magdalena," 
 was insured for 7000. The amount has not been received from the 
 insurance office ; but it will produce 6800. I do not know of a claim by 
 Brown of 2000 against Walton. I think the assignees do not make the 
 claim. We expect to get 2000 from Cameron's property at Dingwall, after 
 paying off the first mortgage of 3000. I do not know the property was 
 valued at 10,000. I do not know the stock was valued at 6000. 
 
 Mr. JAMES wished it to be taken that, according to the valuation made 
 by Messrs. Fuller and Horsey, employed by the assignees, the value of the 
 Welsh works, on a forced sale, was stated to be from 13,000 to 14,000 ; 
 and about 38,000 to a willing purchaser, subject to arrears of rent (1500 
 to 2000) and dilapidations. 
 
 Mr.Linklaterwas here called, and gave some explanations respecting some 
 pencil-marks which he had made on a document given in evidence. Cross- 
 examined : The sum of 660 has been deposited with the arbitrator on 
 Brown's debt to the bank. There is a reference as to Brown's debt ; that is 
 not included in the 20,816 15s. which has been realized of Brown's estate. 
 Owen has paid the note for 446. He was hardly aware that his name was 
 on the note, but he has paid the amount. He owes nothing to the bank. 
 
 Mr. Paddison again cross-examined. The advance on the Welsh works 
 began by discounting a bill for Mr. Dummler, who, upon reference, was 
 considered to be a good security. I remember, in September, 1855, Kennedy 
 proposed that there should be City men put on the board, and I remember 
 that Brown offered to resign, to make way for them. Cameron, on Mullins's 
 death, urged that I should be continued as solicitor, as well as secretary. 
 Cameron read to me the letter of the 2nd of June, 1856, which has been 
 read, before he sent it. [Mr. Paddison here read a statement, from which 
 it appeared that, when the bank stopped, they had in cash at the head 
 office, 18,039 5s. 7d.; in the Bank of England, 7982 ; in London bills, 
 94,757; in country bills, 5835; total, 126,613 5s. 7d. And at the 
 branches : In cash, 19,905 ; in bills, 43,113 ; making a total of 
 189,631 5s. 7d., on the last day, after they had paid large sums.] 
 
 Mr. ATHEETON said, this concluded the case on the part of the Crown.
 
 TACTS, FAILURES, AXD FRAUDS. 3-19 
 
 Lord CAMPBELL, addressing Sir F. Kelly, congratulated him on hi 
 appointment to the office of Attorney-General, and called upon him to 
 take precedence in addressing the jury. 
 
 The ATTOU.VET. -GENERAL then rose, and said he thought he ought to ak 
 his Lordship whether, looking at the dates of the balance-sheets, of June 30, 
 1835, and December 31, 1855, and the conduct of Mr. Staplcton, he (the 
 Attorney-General) ought to bo called upon at all to address the jury. 
 
 Lord CAMPBELL said he thought the cases made against the several 
 defendants varied very considerably; but he must leave the matter in the 
 hands of the gentlemen who were conducting the prosecution. 
 
 Mr. ATHERTON said that, in the discharge of his duty, he should ask 
 the opinion of the jury on the case of Mr. Stapleton. 
 
 The ATTORNEY-GENERAL then rose and said Gentlemen of the jury, 
 although the anxiety which I cannot but feel on behalf of the gentleman 
 who now sits before me has induced me to make the application which you 
 have just heard, I will ask you, now that the case on the part of the Crown 
 is concluded, whether there is one scintilla of evidence affecting the honour 
 and character of Mr. Stapleton ? I must confess it was with sincere 
 regret I heard the answer of my Lord, and ifc was not without some sur- 
 prise that I heard the determination come to, on the part of the Crown, to 
 take your opinion on the case of Mr. Stapleton. From day to day, during 
 this long and important case, at every moment, I have longed for an op- 
 portunity of bringing under your calm, patient, and impartial considera- 
 tion the case of the gentleman who has intrusted his interest to my 
 hands ; for if, at the close of this great case, he should leave this court 
 with one slur or suspicion on his character, no man in this free country, 
 where, I believe, justice is administered with a nearer approach to perfec- 
 tion than in any other country in the world it will be impossible for any 
 man to hold his position in safety in such an establishment as the lato 
 Royal British Bank. Let me, in the first instance, call your attention to 
 what the charge now is against Mr. Stapleton and the other gentlemen, and 
 particularly to the time to which the charge is confined. It is quite essen- 
 tial that I should do this, in order that you may appreciate the bearing of 
 the facts, and the conduct and motives of Mr. Stapleton in this case. The 
 period of time at which the conspiracy is said to have been formed is, 
 from the early part of December, 1855, to the 1st of February, 1856, when 
 the balance-sheet and report, up to December the 31st, 1856, wore pub- 
 lished to the shareholders. The charge is, that Mr. Stapleton knew tho 
 balance-sheet to be false when it was presented to the general meeting, ou 
 the 1st of February, 1856 ; and if you find that he did know it to be lube, 
 it will be your duty to find him guilty. It is said he knew the bidunee- 
 sheet to bo false, and that, too, to the extent of 100,000, or more. That 
 is the charge which the counsel for the prosecution are bound to prove to
 
 350 FACTS, FAILUHES, A^D FBATJDS. 
 
 you. The learned Attorney- General then proceeded to call the attention 
 of the jury to the facts of the case, and the date when Mr. Stapleton 
 became connected with the bank. He became a director on the 31st of 
 July, 1855, and if the bank was ruined on the 31st of December, 1855, it 
 was ruined on the 30th of June, 1855, and Mr. Stapleton, when he joined 
 the bank, became a ruined rnan. But the fact is, he was the deceived and 
 not the deceiver. In August, 1855, Mr. Stapleton was an entire stranger 
 to all those circumstances which had taken place from the formation of 
 the bank ; and, instead of being the deceiver, he was the victim. He was 
 the relation of Sir James Matheson, a director of the Bank of England, 
 and member of Parliament, and, on his recommendation he was induced 
 by Cameron to become a shareholder and director of the Koyal British 
 Bank. He was also a member of the bar, and, though of good family, 
 he had but a small income, and, not meeting with much success at the bar, 
 he sought to find occupation for his time by joining the bank. He was 
 what the jury would well understand was meant by the term " a West-end 
 Director," and, at that time, was utterly ignorant of banking. Among the 
 gentlemen connected with the bank was Mr. M'Gregor, a member of Par- 
 liament, whose character at that time stood high. There was also Mr. 
 Humphrey Brown, a large shipowner and member of Parliament ; Mr. 
 Walton, a member of a large City house ; Mr. Alderman Kennedy, a City 
 gentleman of large fortune; Mr. Esdaile, a name identified for half a cen- 
 tury with the banking interest in London ; and Mr. Cameron, who at that 
 time, from his connections in Scotland, and his then character, stamped 
 respectability upon the bank. It was also something that Cameron's own 
 son-in-law, Macleod, had embarked his whole fortune in the bank, which 
 had rendered him now a ruined man. The learned Attorney- General here 
 read extracts from the report to June the 30th, 1855, in which a favour- 
 able account was given of the progress of the bank, since its formation in 
 1849, stating that 100,000 new stock had been subscribed, and that the 
 directors had allotted to respectable applicants another 1000 shares, repre- 
 senting an additional capital of 100,000, of which 50,000 had been paid 
 by the allottees. Mr. Stapleton became a purchaser of some of the last 
 of the third 1000 shares, and was led to believe that the company had a 
 capital of 300,000, half of which was paid up. He also read a passage 
 which stated that " the customers of the bank and their operations have 
 continued steadily to increase ; more than a thousand new accounts have 
 been opened during the past year, and the number now in operation is 
 considerably above sir thousand." He also referred to the balance-sheet 
 up to the 30th of June, 1855, which, " after making a provision for bad 
 debts," represented that there was a disposable balance of 30,525 Ss. 6d. 
 The balauce-sheet presented to the general meeting on the 1st of February, 
 1856, and which was submitted to the board on the 29th of January, was
 
 TACTS, FAILURES, AND FRAUDS. 351 
 
 -.tu-al balance- sheet of the 30th of June, 1855, the figures only being 
 
 . It is now suggested that Mr. Stapleton must have known that 
 the balance-sheet upon which he had become a director, on the 31st of 
 July, was false, to the extent of 200,000, and that ho conspired with 
 some persons to defraud the shareholders and the public. If he had been 
 
 jd with other speculations, and had drawn out largo sums for hia 
 own benefit, there might have been some ground for suspicion ; but the 
 fact is, that ho drew out nothing. On the contrary, he has paid into the 
 bant, in all, from 3000 to 4000. In the first place, I deny that it is 
 true that, at this time, there were bad debts to the extent of 200,000, or 
 100,000, or to any considerable amount. I am not interested in proving 
 this, but I trust my learned friends who represent the other defendants will 
 be able to satisfy you on that point. If the balance-sheet was false, who 
 is responsible for that ? Is there any evidence that any one but Mr. 
 Cameron is responsible ? Is it shown that any one of the directors had 
 anything to do with it, but Mr. Cameron and those who acted under him ? 
 In defence of Mr. Cameron, I must, however, say that he is a Scotchman, 
 and that from his acquaintance with the Scotch system, he probably may 
 have felt himself precluded from dealing with bad debts in the way that 
 the merchants of this city would think they ought to be dealt with. Mr. 
 Stapleton joined the bank on the 31st of January, 1855, and, after attend- 
 ing only one or two meetings, he went to Scotland for what the lawyers 
 call the long vacation. lie attended on the 2nd of October, when he again 
 went to Scotland, in consequence of the death of his sister, who met her 
 death by falling from a precipice, and did not attend again till the ICth of 
 October. From that time he regularly attended to his duties as a director, 
 down to the 29th of January, 1856, when the balance-sheet to December 
 31st, 1853, was adopted, and to the end of the bank. The learned Attor- 
 
 .icral proceeded to observe ho\v much more difficult it was to un- 
 learn than to learn. Mr. Stapleton came into the bank with a fabric, as it 
 were, erected in his mind as to the bank's condition, erected by the cha- 
 racter and position of the directors, and the fact that the bank had twice 
 obtained the sanction of the Crown, by its first and supplemental charter. 
 How, then, was the balance-sheet prepared? It was entirely done by Mr. 
 Craufurd, and those who acted under him. Certain "tabular statements" 
 have been produced in evidence, upon which, it is said, the balance-sheet 
 was founded. But it has not been shown that Mr. Stapleton had ever seen 
 them, nor, in justice to the other defendants be it said, has it been proved 
 that any ono of the directors ever saw them. In fairness to those defend- 
 ants, against whom, rightly or wrongly, more suspicion might have rested, 
 it might havo been expected that the Crown would have omitted Mr. 
 Stapleton, in order that an opportunity might be afforded of showing what 
 had occurred at the meeting on the 29th of January, when the balance-
 
 352 PACTS, FAILUEES, AND FHATJDS. 
 
 sheet was adopted. At that meeting, if at all, the conspiracy was entered 
 into, or perfected ; but, strange to say, there is nothing to show either 
 what occurred, or what was said, for even Mr. Paddison, no inaccurate 
 observer, could not tell one word of what had taken place. How, then, 
 can it be surmised that Mr. Stapleton, who had risked his all on the 
 balance-sheet of June, 1855, had found out, before the 29th of January, 
 1856, that that balance-sheet was false, and that, instead of having 30,000 
 balance in hand, the bank was in debt to the extent of 100,000 or 
 200,000? If he had made that discovery, would he not have exposed 
 the fraud publicly, and denounced the injury which he had sustained, or 
 have abstracted his money, and quietly withdrawn, as Mr. Dakin did ? In 
 listening to the eloquent and able statement made by my learned friend, 
 Sir F. Thesiger, in his opening speech of four hours' duration, I watched 
 with anxiety to hear if there was one fact on which my learned friend 
 relied to show that before February, 1856, Mr. Stapleton knew the balance- 
 sheet was false. I now challenge my learned friend (Mr. Athertou), who 
 will reply upon this case, to show, if he can, that there is any such evi- 
 dence. The only points that can be relied upon will be Brown's debt, the 
 Welsh works, the debt of Oliver, and Slacker's debt. With these excep- 
 tions, there is no evidence to show that Mr. Stapleton's attention had ever 
 been drawn to any of the other debts spoken of. It appears that, on the 
 14th of November, 1855, Mr. Stapleton attended the finance committee, 
 when eleven bills were submitted for discount, amounting to 1841 11s. 6d. 
 The committee discounted all, excepting two, amounting to 261 13*., and 
 under the sum of 1579 18*. 6d. Mr. Stapleton signed his name " J. Staple- 
 ton." At the next meeting of the board, on the 20th of November, he 
 observed an entry in the " bills for discount book,' ' in the handwriting of 
 Cameron, under his, Mr. Stapleton's, name, showing that, without autho- 
 rity, he (Cameron) had discounted Mr. Brown's bill for 4.00. Mr. Staple- 
 ton called the attention of the board to the circumstance, and thus, from 
 that moment, he made Mr. Brown his enemy. And yet it is said Mr. 
 Stapleton conspired with Mr. Brown and the others, though it appears 
 that from that moment he acted in opposition to them. Mr. Cameron, 
 who had written a book on banking, according to the " Scotch system," 
 appears to have been acting in accordance with that system when he dis- 
 counted Mr. Brown's bill for 400, his principle being, that the legislative 
 should not interfere with the executive. At that same meeting, a resolu- 
 tion was moved by Mr. Esdaile, on the 20th of November, and seconded 
 by Mr. Owen, and passed, that, at the next meeting, a committee should be 
 appointed to investigate and report on the " convertible securities " of the 
 bank ; and, accordingly, at the next meeting, on the 4th of December, a 
 committee was appointed, consisting of Esdaile, Stapleton, and Macleod. 
 The committee reported, on the 18th of December, that Mr. Brown's secu-
 
 FACTS, FAILUEES, AND FBA.UDS. 333 
 
 rities were insuiScient, and that he should bo called upon to give further 
 security. The director?, on that report, resolved that Mr. Brown should 
 bo requested to give further security, and that tho ships on which the bank 
 had security should be realized as they came to port. From that hour till 
 the 22ud of July Mr. Stapleton never ceased till he had removed Mr. 
 Brown from the direction. Tho bank had security on ships which, accord- 
 ing to one estimate, were valued at 40,000, and according to another 
 estimate, at 50,000 ; but, in consequence of Mr. Stapletou's interference, 
 further securities were given to within 3000 of the whole debt of 74,000. 
 They did not realize that amount ; but it must be borne in mind that 
 there had been a depreciation of 40 per cent, in the value of shipping. 
 Nevertheless, when tho ships were sold, they fetched nearly as much as 
 they were valued at by Mr. Walton, a highly respectable authority, and 
 well acquainted with the value of ships. Under thoso circumstances, would 
 Mr. Stapleton have been justified in rising up in the board, and proclaiming 
 that Mr. Brown, a large ship-owner and member of Parliament, was insol- 
 vent ? Would it not have been, I will not say unjust, but wicked for him, 
 to have done so? I am mistaken iu stating that further security had been 
 given by Mr. Brown. That security was not, in fact, given ; but still I 
 contend that, considering, the depreciation which had taken place in the 
 value of ships when Brown became a bankrupt, there was no ground for 
 believing that in January, 1855, his debt, or any part of it, was to be 
 regarded as a bad debt. What would have been thought of Mr. Stapleton 
 if he had got up in the board, under such circumstances, and told them 
 that they know nothing about banking, that they ought to put no confi- 
 dence in Mr. Cameron, tho general manager, nor in the accountant, nor 
 even in the auditors ; but that they ought to attend to him, a young man 
 of three months' experience, and altogether remodel their balance-sheet, 
 and publish to the world that Mr. Humphrey Brown was an insolvent 
 debtor ? The learned counsel then proceeded to the question of the ad- 
 vances made on tho Welsh works, and observed that a property of that 
 kind, coal and iron mines, must bo liable to great variety in tho estimate. 
 A sanguine man might value them at a much higher rate than a sober man 
 of business ; but the wisest course to be taken by a man like Mr. Staple- 
 ton would be to form no opinion at all of his own, but to send down some 
 trustworthy person, who, with competent assistance, should form a correct 
 estimate. The works in question were estimated at every variety of sum, 
 between 100,000 and nothing. Messrs. Fuller and Horsey valued them 
 for the assignees of tho bank at 38,000. Ill 1851, tho works were valued 
 by Hiram Williams at 94,000, and nothing has been proved to show that 
 that report was false. In March, 185(5, they were valued by Mr. Striek at 
 26,000 a-ycar ; and his valuation was supported by that made by Mr. 
 Uem-idge. With the exception oi these, aiid Oliver's and Blackei-'s debt*, 
 
 A A
 
 354 TACTS, FAILURES, AXD FBATJDS. 
 
 I say nothing of any of the other debts due to the bank, because they were 
 all in the balance-sheet before, and they were not discussed afterwards. As 
 to Oliver's debt, it appears it was once discussed at the board, but it did 
 not appear that the account had been wrongly kept. As to Mullins's debt, 
 Mr. Paddison himself said it was premature to deal with that. What, 
 then, -was Mr. Stapleton to do ? The balance-sheet was drawn up in a 
 manner to deceive ; it stated that the gross balance for the vear ended 
 the 31st of December, 1855, " after making a provision on account of 
 bad debts," etc., amounted to 30,551 2-s. Id. With respect to Slacker's 
 debts, amounting to -1000 or 5000, all that was proved was, that 
 towards the end of December, a report was made to the board that some 
 of his bills would not be taken up. Only about 1000 worth were then 
 due ; and, in the very nest month, the sum of 1000 was added to the 
 bad debt fund. It could not be pretended that, when Mr. Stapleton joined 
 the bank, he knew anything of its condition. 
 
 Lord CAUPBELL said it was admitted by the prosecution that, when 
 Mr. Stapleton came into the bank, he -was ignorant of its state. 
 
 The ATTOEKEY-GENEEAL said I defy my learned friend (Mr. Ather- 
 ton) to point out one scintilla of evidence to establish the charge, that 
 Mr, Stapleton knew the bank was in an insolvent state. I say there is 
 none whatever, and that Mr. Stapleton, even until the end of the bank, 
 never believed it to be in an insolvent state. I do see that, in the course 
 of his long warfare with Brown and Cameron, whom he at last vanquished, 
 there is some evidence to show that he thought the credit of the bank was 
 shaken ; but lie believed in the solvency of the bank to the very last ; and, 
 in the month of August, 1856, -when it was proposed to make a dividend, 
 he opposed the proposition, and insisted that, instead of a dividend, there 
 should be a call. He knew that losses had been incurred, -which called 
 upon them to make sacrifices ; but he always believed that, with sound 
 management, and with men of integrity at the head of affairs, the bank 
 might retrieve its position, its prosperity might be re-established, and it 
 might be made one of the leading institutions of this city. In the month 
 of August, 1856, he wrote a letter to his relation, Mr. Alexander Matheson, 
 in which he stated his belief in the solvency of the bank, and that was onby 
 a few days before its failure, which took him entirely by surprise. I 
 solemnly appeal to you, and to my learned friend (Mr. Atherton), to say, 
 what is the evidence in this case which casts the shadow of a suspicion on 
 the honour, good name, and respectability of Mr. Stapleton ? 
 
 Mr. Serjeant SHEE then rose and addressed the jury for Mr. Kennedy. 
 He said that, although the matters to which he would have to refer were 
 different from those to which the learned Attorney- General had addressed 
 himself, it would be unpardonable in him to trespass unnecessarily upon 
 their tune. True it was that the gentleman for whom he appeared was not
 
 TACTS, FAILURES, A^D FRAUDS. 
 
 a man of noble family, nor of small and humble fortune 1 . Nor was he a 
 commercial man, but he had spent the best part of his life, thirty-two 
 years, in the service of his country in the East Indies. Ho was the son of 
 a general officer, and had entered the service early in life ; and, after thirty- 
 two years, ho retired from his office of Physician-General at Bombay, in 
 the highest estimation for his honoiir and integrity. Having arrived in 
 his native land, at fifty-five years of age, and with a competent fortune, 
 he was anxious to employ himself in a manner useful to himself and 
 country. He became a member of the Corporation of the City of 
 London, and, in the year 1854, was elected alderman of the ward 
 of Cheap. Whatever might be said by those whose solo distinction was 
 the accident of their birth, and who were accustomed to speak slight- 
 ingly of the Court of Aldermen of the city of London, it was to the 
 honour of that court, that they never allowed any man to remain a 
 member whose character was liable to any suspicion as to his credit. The 
 fact, therefore, that Mr. Kennedy was a member of that court was a strong 
 presumption iu his favour. The jury would bear in mind that the whole 
 of a very considerable fortune was staked by him, when ho became a 
 member of the British Bank ; and it did not appear that, from first to last, 
 he had ever trafficked or traded in shares, so as to gain one single shilling. 
 He remained till the end of the bank, endeavouring to do the best he could 
 for the establishment. Having said so much concerning the respectability 
 of his client, the learned scrjeant said he should call the attention of tho 
 jury to the facts which he had to lay before them. In the case of Mr. 
 Stapleton, the jury had been reminded that he had come very late into the 
 direction of the British Bank. Mr. Kennedy, on the contrary, was one of 
 its original promoters. He would consider the case under three divisions 
 of time. The first was, from tho formation of the bank, in 1819, till Mr. 
 Kennedy left it, in 1850. The next was from the year 1854, when he re- 
 turned to the board, down to tho month of August, 1855 ; and the third 
 from August, 1855, down to the close. He would then consider what 
 evidence there was to show that there was any conspiracy among tho 
 defendants on this record. Being a member of a Scotch family, Mr. Ken- 
 nedy became acquainted with Mr. M'Gregor, a gentleman who had been 
 secretary to tho Board of Trade, who had enjoyed tho confidence of the 
 Into Sir E. Peel, and had resigned that situation, where ho had a salary of 
 1500 a-ycar. He (Mr. M'Gregor) was member for the city of Gl;. 
 and stood high among those who, not having been born to hereditary 
 wealth, were yet able to achieve political distinction. Mr. M'Gregor was 
 connected with Mr. Mullins, of whom Mr. Paddison at that timo must 
 hru-r had a high opinion, when he chose him as a partner. I', 
 
 'or and Mr. Mullins, Mr. Kennedy was introduced to tin; bank. 
 Soon after that, when a proposal was made for voting a large sum of money
 
 SoG TACTS, TAILUEES, AND FEAUD3. 
 
 to Mr. M'Gregor, Mr. Kennedy opposed the proposal, but he could not 
 find a seconder. On that ground, and because there was a bill brought 
 before the board which looked very much lite one for the accommodation 
 of Mr. M'Gregor, he left the bank in 1850, but without any diminution of 
 respect for Mr. Cameron. He did not return to the bank till October, 
 1854, and, in the meantime, all the principal debts, including those on the 
 Welsh works, had been incurred. The next preceding report was that of 
 June, 1854, in which the directors stated that " the business of the bank 
 continues to improTe. The number of accounts now open is 5562, in 
 which the operations during the past half-year have amounted to 
 19,089,864 11s. Sd., being a large addition to the amount for the pre- 
 ceding six months." Though he had left the bank in 1850, he had 
 watched its progress with great interest ; and, seeing from the reports that 
 there was a gradual increase in its operations, that provision had been 
 made for bad debts by a bad debt fund, and that the reserve fund had 
 increased, he could come to no other conclusion, unless Cameron and the 
 rest of them were cheats and swindlers, than that he might safely rejoin 
 the British Bank, and risk all his fortune in it. Mr. Spens, Alderman 
 Kennedy's brother-in-law, was a director ; Mr. Esdaile was the deputy- 
 governor. In August, 1854, he rejoined the board ; but in the month of 
 August, 1855, when his shrievalty was about to commence, he said he 
 would be unable to attend during the next year, and, in fact, he did not 
 attend again till February, 1856. From 1854, there was nothing brought 
 before the board till he discontinued his attendance in August, 1855, which 
 could lead him to suppose that there was any danger from the Welsh 
 works. Had he entertained any suspicions, it was not probable that ho 
 would have introduced his own brother-in-law, Mr. Valiant, to the bank 
 as a director. He was not a member of the past-due bills committee. He 
 did, in truth, know that there were some losses which had been incurred, 
 and that there was what he called a "lock-up" of capital, in the advances 
 made on the Welsh mines ; but, at the same time, he knew that, under the 
 charter, the investment of money on landed property was legitimate, and 
 there was nothing to show him that there was any want of honour or 
 integrity in those investments. The learned serjeant here referred to what 
 was stated to have occurred at the board in May, 1855, in reference to the 
 eeventy-first clause of the charter, when Mr. Brown said the bank had lost 
 one-fourth of the paid-up capital and reserved fund, and that they ought 
 to call a meeting to dissolve the company. It appeared, from the account 
 which Mr. Paddison gave of what took place on that occasion, that Mr. 
 Brown was entirely in error, when he alleged that the bank had already 
 lost one-fourth of their paid-up capital. Mr. Paddison corrected Mr. 
 Brown's statement as to the estimated value of the Welsh works, and there 
 was every reason for coming to the conclusion that Mr. Kennedy, after
 
 TACTS, FAILURES, AN'D FRAUDS. 337 
 
 making the necessary inquiries, was led to believe that the bank was solvent. 
 .r, however, from what passed on that occasion, that sufficient 
 impression was made on liis mind to lead him, on the 15th of May, 1855, 
 to prepare the memorandum which had been read in evidence. 
 
 " I cannot [he says] but consider the retirement of Mr. Spens as some- 
 thing serious, and requiring a serious course on our part. It occurs at a 
 most unfortunate time, and interrupts the progress I hoped I was making 
 towards strengthening the board. No one is more deeply interested than 
 yourself (Cameron), and I wished to press this, your personal interest, 
 upon you very emphatically, and to beg you not to allow yourself to be 
 misled by false hope, or deceived by your own wishes, and to give me your 
 professional assistance, taking Craufurd and Duncan into council, and, as a 
 result, weighing them ' pro ' and ' con ' very carefully to report on the 
 following points : 1. How far are we really compromised by the various un- 
 toward occurrences which have befallen the bank the iron works, Gwynne, 
 M'Gregor, Mullins, Oliver, etc. ? 2. The real bond fide commercial or 
 legal deficit by bad debts and losses generally, and our personal liability to 
 our shareholders through your last report, as contrasted with the necessity 
 we lay under to communicate such a deficit to them when it attained to 
 twenty-five per cent, of the capital. 3. What are our prospects of business 
 to relieve past disasters ? Do they justify going on, even supposing the 
 charter would warrant our doing so ; for, as respects an appeal to our 
 shareholders, to state losses, and obtain their acquiescence to relinquish 
 dividend, and whip up to restore lost capital, I should pronounce it at 
 once as simply puerile, and the most certain and ignoble course of official 
 suicide. If four good men were to join the board, and the public would 
 subscribe 2000 more shares, I should have no fear of the future ; but this 
 does not appear likely." 
 
 That paper was put forth as the main evidence against Mr. Kennedy. It 
 was certain that he did not know the full particulars, though it could not 
 bo denied that there had been a very inconvenient lock-up in the \V 
 works. He also must have known that Mullins had abused the confidence 
 of the bank, and that Gwynne and M'Gregor were debtors of the bank ; 
 but ho could not know that the security given by Gwynne on the Bush 
 Mills was not good, nor that M'Gregor's securities were worthless ; and, 
 as to Oliver's debt, it was not known at that time what the bills of Oliver 
 would produce. The letter was the letter of a man who did not know, and 
 wished to get explanation. The loss upon those bills was now known, 
 though it could not be so then. Mr. Kennedy went to Cameron, who had 
 the most knowledge on the subject, and asked him to give an explanation. 
 He found that Mr. Cameron and Mr. Barnard were then actually engaged 
 in investigating the accounts of the bank. He found that they had marked
 
 58 FACTS, FAILURES, AND rilAtTDS. 
 
 the good bills with a triangle, the bad with a cross, and the doubtful -with 
 a round O ; and thus, finding from the balance-sheet that the business and 
 reserve fund had increased, and that Mr. Cameron and Mr. Barnard ex- 
 pressed no alarm, it was natural that he (Mr. Kennedy) should feel satisfied 
 with the condition of the bank. The learned Serjeant then referred to the 
 character given of Mr. Stapleton by Mr. Paddison, who stated that he had 
 never seen anything in him that was inconsistent with the highest honour 
 and integrity. That was the gentleman with whom Mr. Kennedy was said 
 to have " conspired." He also gave similar testimony to the character of 
 Mr. Kennedy, with the single exception which he mentioned, as to Ins not 
 supporting Mr. Cameron in his proposal, in reference to the seventy-first 
 clause of the charter. Mr. Paddison stated that he Lad heard on the same 
 day from Mr. Cameron, that the gentleman who had asked bun to bring 
 the matter forward, and who did not support him, was Mr. Kennedy. The 
 truth was, that Mr. Spens, Mr. Kennedy's brother-in-law, was present, and 
 in a rage said to Cameron, " Pshaw, you are always throwing that bugbear 
 in our faces." Mi 1 . Kennedy knew, from what had already occurred, that 
 it would be useless to press the matter, and so allowed it to drop. The 
 learned serjeaut contended that there was every reason to suppose, that, if 
 these Welsh works had taken the fortunate instead of the unfortunate turn 
 before the bank wai attacked and cried down, he would not say by rivals, 
 but by those parties whose names he did not know, things would have 
 taken a very different turn. With respect to the balance-sheet, the learned 
 Serjeant observed, that it was framed in the way which had been usual 
 since the formation of the bank, a provision being made for bad debts, 
 according to the plan originally proposed by Mr. Cameron, in his report 
 laid before the directors, and also for the creation of a "reserve fund" to 
 meet extraordinary losses. It appeared Mr. Kennedy had made inquiries 
 as to the state and condition of the bank, and the fair inference was, that 
 he was satisfied it was secure. The jury would bear in mind, that, in June, 
 1855, Mr. Kennedy was elected one of the sheriffs for London, and entered 
 on his office on the 29th of September, 1855. The duties cf that office, in 
 the exercise of hospitality, and in attendance on the judges in the Central 
 Criminal Court, occupied his time by day and by night, and it was impos- 
 sible he could have discharged those duties, if he had known that by his 
 misconduct he was risking the loss of character, and the ruin of his own 
 and others' fortunes. From the 29th of September, 1855, to the 29th of 
 September, 1856, Mr. Kennedy was engrossed by the duties of his office. 
 During the whole of the tune when the alleged conspiracy was hatched, he 
 was not there at all. The learned serjeant said he did not like to make 
 complaints, but still he thought that if the Crown would not let them both 
 off, they might, at least, have let off one (Stapleton or Kennedy), in order 
 that the other mi^ht be examined as a witness. It was proved that Mr.
 
 FACTS, FAILrBES, A>'1> ni.VUDS. 
 
 Kennedy was not at the board at all from the lltli of August, 1853, to the 
 5th of February, 1856. He never saw the balance-sheet, nud never dis- 
 cussed it ; but he saw it signed by tho auditors, and found to bo correct, 
 when presented at the general meeting which ho attended on the 1st of 
 February, 1S5G. Ho had induced his brother-in-law, Mr. Valiant, to be- 
 come a director ; and, on the 5th of February, after an absence from 
 twenty-four boards, he attended and proposed Captain Valiant, and, on tho 
 12th, attended to introduce him, and to share the charge of conspiracy. 
 He also induced his nephew, a clerk in tho Foreign Office, to deposit in the 
 bank a sum of money which he had gained as a prize at Cambridge. He 
 induced his own mother-in-law, Lady Valiant, to become a customer, 
 whereby she had lost a sum of above 600. Did they believe that a 
 gentleman who had acquired a large fortune in India, who was the son of 
 General Kennedy, an officer who had gained a large territory in India, 
 would make the rest of his life miserable, by entering into such a con- 
 spinu-y as the one now suggested? He did not appear to have made a 
 single sixpence by his connection with tho bank. Ho had had no accom- 
 modation, but he opened an account, and paid in money, and got his 
 friends to do the same. After some further comments upon the evidence, 
 the learned Serjeant concluded by calling on the jury to think long and 
 anxiously before, upon such evidence, they found Mr. Kennedy guilty of 
 the conspiracy charged against him. 
 
 Mr. EDWIN JAMES then addressed the jury for Mr. Esdailc. He said, 
 it now devolved upon him to address them on the case of Mr. Esdaile, and, 
 in so doing, he should contrast it with the cases of the other defendants, 
 and point out that, even if lie had acted imprudently and too credulously, 
 ..as nothing to show that he had acted with any criminal intent. In 
 the fair discharge of his duty, he should draw a broad distinction between 
 imprudent and too sanguine conduct, and the guilty desire to defraud any 
 human being, from the time when Mr. Esdaile became connected with the 
 bank, to the time when the vessel went down. The verdict of the jury 
 would solve the great question. It had been his (Esdaile' s) misfor! 
 be held up to the public as a swindler, and it had been published on the 
 'f tho press to every part of tho world, that the directors of this bank 
 wore a gang of swindler?, who were banded together to rob the public. 
 That was the charge which the Crown had undertaken to prove beyond all 
 reasonable doubt. It was Mr. Esdaile' s desire that he (Mr. JAMES) should 
 take a manly view of tho case. He had no desire to shelter himself behind 
 the back of another director ; and therefore the jury would say what part, 
 according to tho evidence, had been taken by him. Mr. Esdaile wa<, till 
 lately, a partner with his father in the City Saw Mills, in tho Cit^ 
 and lie was also related to n gentleman well known as tho founder of tho 
 London and Westminster Bank, lie joined, the British Bank, a bank
 
 3GO PACTS, PAILTJEES, A!N T D FEATJDS. 
 
 which, it was clear, suffered from the want of sufficient capital. Other 
 hanks such, for instance, as the London and Westminster Bank had 
 commenced business with a small capital of only 50,000 paid up, but they 
 were under no restrictions, and were able to call up capital as they chose. 
 As business increased, they extended their capital, and made calls. But 
 the British Bank, established since Sir Eobert Peel's Act of 18-14, had no 
 such power, and they could not increase their capital without the authority 
 of the Board of Trade. There was an instance on record where a bank 
 now in high repute (the London and Westminster) had once incurred a 
 bad debt of 150,000 with the Northern and Central Bank. 'That bank 
 went to the Bank of England and obtained an advance of 1,000,000, upon 
 condition that the debt of the London and Westminster Bank should be 
 postponed. The result was, that sum became a "lock-up," much in the 
 same way as in the case of the British Bank. The London and Westmin- 
 ster Bank, however, was not under restrictions, and, having power to make 
 calls on every shareholder as it pleased, it was enabled to weather the 
 storm. Indeed, there was no house or bank in the City which had not 
 had its " lock-ups " in the same way. What was the position of Cameron 
 in the British Bank ? It was one of omnipotence ; and, in point of fact, 
 the directors were mere puppets. Was it ever before heard that a manager 
 should tell a clerk not to give information to directors respecting certain 
 accounts and transactions, under pain of incurring his severe displeasure ? 
 His position was also one of omniscience, for he knew more about every- 
 thing than anybody else. Cameron could discount what bills he pleased, 
 without their going before the directors. The Finance Committee was a 
 farce and mockery, and Cameron might have laughed in his sleeve at the 
 three gentlemen sitting up stairs to discount bills, while he himself was 
 sitting down stairs, and discounting what bills he pleased. It was in the 
 beginning of 1855, when Cameron was ill, that Esdaile assumed the chair. 
 He soon found that Mullins had abused the confidence of the directors, 
 and had incurred a large debt, by discounting his own bills surreptitiously. 
 At the same time viz., in February, 1855 Esdaile began an inquiry into 
 Brown's debt, and immediately brought him to book. It was at that time 
 the alleged conspiracy began ; but, instead of being indicted for a conspi- 
 racy, he (Mr. JAMES) thought they ought to have been indicted for a want 
 of unanimity. He began by writing to Brown about his debt, and thus 
 the parties became estranged. At the same time he found Cameron's notes 
 for 10,600. He was told by Craufurd that the notes were given for 
 shares ; but he could never find out where the shares were. A correspond- 
 ence with Cameron ensued, but Esdaile could never come at the bottom of 
 this question of Cameron's shares. He pressed Cameron for security, and 
 eventually that security was given, on the " Scotch principle," which had 
 so puzzled Mr. Paddison. He next wrote to Gwynne, another director, to
 
 PACTS, FAILURES, AXD FBAUDS. 3d 
 
 give security for his debt ; and thus lie became estranged from some of 
 : -triers with whom he was now said to have conspired. With 
 to the balance-sheet, that waa in the same form as had been used 
 from the beginning, and such as was used in every other bank, at least, 
 every bank established on what was called the " Scotch principle." It was 
 said that the bad debts ought to have been written off ; but it was proved 
 that, in a bank established on that principle, it was not usual to do so, 
 under ten years. There could be no doubt that the great incubus upon the 
 bank had been the Welsh mines. Whether or not it was prudent to make 
 further advances was a question which it was very difficult to determine ; 
 for, according to " Gilbart on Banking," it was sometimes necessary and 
 prudent so to do, in order to save the money already lent. The first ad- 
 vance was made to a Mr. Dummler, who came to the bank recommended 
 by the Bank of England ; and it must be borne in mind that the Galvan- 
 ized Iron Company had expended as much as 200,000 upon those mines, 
 before the bank had taken to them. In 1852, an offer was made to the 
 bank to take them for 50,000, and they were valued by Messrs. Fuller and 
 Horsey, for the assignees of the bank, at 38,000, the plant being valued at 
 13,000 or 14,000. But it appeared they had been sold, or rather sacri- 
 ficed, by the assignees for the sum of 6000. The business of the bank 
 was prospering, but it was exposed to the attacks of anonymous libels ; and 
 how few houses or homes were there that would not be made miserable, if 
 a series of libels were published against them day by day ! The credit of 
 a bank was like a woman's virtue ; you might breathe upon it, and it was 
 destroyed. It was proved that 1900 new accounts had been opened, and 
 the bank was retrieving itself, when these anonymous libels were sent 
 among the shareholders. The consequence was, the shares went down, and 
 the catastrophe came upon them with dismay. 
 
 " The engineer 
 
 Who lays the hist stone of his sea-built tower, 
 Tliat cost him years and years of toil to raise, 
 And, smiling at it, bids the winds and waves 
 To roar and whistle now, and in one night 
 He sees the tempest sporting in its place, 
 Can't stand aghast as they did." 
 
 A deposition made in Chancery, in March, 1857, had been produced as 
 evidence against Esdaile, the most striking feature of which was, its truth- 
 fulness and absence of all reserve. That was made, after all the accounts . 
 had been inquired into by Mr. Anderson, who had been engaged upon them 
 for six months ; and it was not surprising that Mr. Esdailo should have 
 said, " I now know that at the time of the balance-sheet the bank was in 
 insolvent circumstances." In a certain sense, it was so ; but still its busi- 
 ness was prospering, and, if it had had the means, it might have now been 
 in the position of the London and Westminster Bunk, with its capital of
 
 362 FACTS, FAILURES, AXD FEATDS. 
 
 1,000,000, and its deposits of 13,000,000. Mr, Esdaile had never 
 gained one sixpence by the bank, though, if he had pleased to be dishonest^ 
 he might have obtained money to any extent he liked. It was proved he 
 was a man of high honour and integrity ; and for any imprudence of which 
 he had been guilty, he had already severely suffered, in sleepless nights, in 
 anxious days, and being held up to public ignominy. Those attacks which 
 had been made upon him were calculated to make even the hand of the 
 learned judge the firmest that ever held the scales of justice, waver ; but 
 he trusted that an appeal would not be made in vain to a jury of English 
 gentlemen, to draw a distinction between imprudence, and what was wrong. 
 At the close of his address Sir F. THESIGEK had referred to the ruin which 
 had fallen upon those who had been connected with the bank ; but let those 
 ruined men, many of whom were now present, recollect that Mr. Esdaile's 
 fortunes were embarked in that same vessel ; let them remember that what 
 they had lost he had also sacrificed, for he had never sold a single share ; 
 he remained true to the last, and, when the storm came, he was found still 
 clinging to the helm of this enormous wreck. 
 
 Mr. SLADE then addressed the jury for the defendant Owen. He said 
 that, although he could not forget the deep stake which his client had 
 in this case, he never rose to address a jury with more confidence as to 
 the result, particularly after the able addresses to which the jury had 
 listened, and which were worthy of the brightest days of the English bar. 
 He would challenge the counsel for the Crown to point out one fact in this 
 case which showed that Owen had been guilty of any criminality, or had 
 done more than place a too foolish confidence in those with whom he 
 joined. He (Owen) was in an exceptional position. He was neither a 
 gentleman of family, nor of fortune, but merely a humble tradesman, the 
 architect of his own fortune. He was a draper in Coram Street, who, 
 having acquired a sufficiency by his trade, and retired into private life, in a 
 fatal moment placed his savings in this bank, and so had lost all he pos- 
 sessed in the world. He would ask whether, under the circumstances, 
 Owen was not justified in placing his honour and his property in the 
 hands of those men? He found himself sitting at the same table with a 
 member of Parliament, Mr. M'Gregor, a gentleman who enjoyed the con- 
 fidence of the late Sir Robert Peel, and other gentlemen whom he believed 
 to be men of honour and respectability. It was true he was, for the year 
 1852, a member of the past-due bills committee, and in that capacity he 
 had to give instructions to the solicitor, when it was necessary that any 
 parties should be pressed. But he left the board in 1854, and did not 
 return till 1855. It was then found, by the examination of Mr. Barnard, 
 that the bad debts amounted to the sum of 12,000 ; and he was led by 
 Mr. Barnard to believe that the bank was in a safe and sound condition, 
 and that the bad debts were only equal to the reserve fund. It was said
 
 FACTS, FAILURES, AND FRAUDS. 363 
 
 lio must have been acquainted with Brown's debt ; but, in answer to that, 
 it must be stated that he was told it was sufficiently secured. To whom 
 could he apply better than to Mr. Barnard, who had stated that, up to the 
 time of the stoppage, ho believed it was secure? So great, too, was Bar* 
 nard's confidence in the Welsh works as a security, that he stated his 
 belief in court, that some one would make a fortune by them yet. To 
 whom was Owen to apply for advice? lie could not apply to anybody out 
 of the house, for he was forbidden to do that, by the unhappy declaration of 
 secrecy. So far was he from having derived any personal benefit from the 
 bank, that at the stoppage he was found to have a credit there for 100. 
 On the 20th of November, 1855, he was the director who moved the ap- 
 pointment of a committee to inquire into the convertible securities, and he 
 joined heart and soul with the other directors in bringing Cameron, Brown, 
 and the other debtors of the bank to book. The learned counsel then pro- 
 ceeded to comment at considerable length upon the evidence, and concluded 
 by calling upon the jury to say that his client (Owen) was not guilty of 
 any conspiracy. 
 
 Mr. IIuDDLESTON said that, in addressing the jury on behalf of Sir. 
 Humphrey Brown, he could not conceal from himself that his task was 
 one of considerable difficulty. lie felt that he had not got those topics 
 which his learned friends had been able to make use of to beget sympathy. 
 He had to defend a man who had availed himself of the resources of the bank 
 to a large amount ; but, though it was not unnatural that that circum- 
 stance should create prejudice, not only in the jury box, but also elsewhere, 
 and Mr. Brown could not complain of it, for he had brought it upon 
 himself, the jury would do well to guard their minds from prejudice in 
 giving their verdict. Mr. Brown's connection with the bank began in 
 February, 1853. It was not, however, correct to say that it commenced 
 by his paying into it the small sum of 18, and drawing out of it 2000 on 
 the same day. The fact was, that he opened a discount account, and tlio 
 cashier of the bank offered to cash a cheque which Mr. Brown had on the 
 Gloucester Bank. At that time, he was M.P. for Tcwkcsbury, and, so 
 far was he from being in embarrassed circumstances, ho was well to do in 
 the world, and was engaged in large business transactions. It was true 
 that ho had borrowed 9000 of the bank, on his promissory notes, at six per 
 cent. ; bat that money was paid into his drawing account, where he would 
 only get two per cent, interest allowed upon his balance, being a gain to the 
 bank of four per cent. His transactions with the bank were very large in 
 all, as much as 400,000 in good bills having passed through tin ir hands. 
 The learned counsel went through a minute history of Mr. JJrown's mone- 
 tary transactions, and said, that whatever might bo said of his taking 
 money from the bank, as he had done, ho had endeavoured with zeal ami 
 honour to place in the hands of the bank every security ho possessed.
 
 364 FACTS, FAILUKES, AKD FRAUDS. 
 
 Such was the state of things at the end of the year 1854, -when the bank 
 became alarmed at the position of Walton, who was the governor of the 
 bank, and had had large discounts. At that time, Brown was liable to 
 Walton for notes to the extent of 25,000, upon which the bank had no 
 security ; and, by Mr. Paddison's advice, an arrangement was made by 
 which Brown assumed Walton's liabilities, and the ships which Walton 
 held as security were made over as security to the bank. He (Mr. HUDDLE- 
 STON) would be able to prove that those ships had cost Mr. Brown 64,000, 
 and they, together with their freights, valued at 28,000, were made over 
 to the bank. In 1855 Mr. Walton, himself a shipowner, had valued the 
 ships at 68,000. Then there were the Gloucester ships, valued by Walton 
 at 8000. There was thus at that time a value of 100,000, though, as it 
 had been proved, there had since been a depreciation of 40 per cent, in 
 shipping. Two charges were made against Mr. Brown, first, that he had 
 misapplied the freight of the " Hornet," amounting to 6500, but a refer- 
 ence to the pass-book would show that at that very time the sum of 
 6000 was paid into the bank, the other 500 having gone to pay dis- 
 bursements on the ship. Then it was said he had raised 4000 on the 
 bank of Gloucester, in fraud of the British Bank, on a mortgage of the 
 Gloucester ships ; but it appeai-ed that in December, 1854, he paid the 
 sum of 3800 into the British Bank. A great deal had been said about 
 a bill for 400, which Mr. Cameron had discounted for Mr. Brown, and 
 the matter was discussed at the board ; but, if the jury would only look 
 into the book, they would see that that bill, which was a trade bill, drawn 
 upon a person named Cook, had been paid. With respect to the value of 
 the ships, Mr. Walton himself had reported to the bank that they were 
 worth 41,300, independently of the freight ; and, since then, it was 
 proved there had been a depreciation of 40 per cent, in the value of ship- 
 ping. If the jury would allow for that depreciation, the amount for 
 which the vessels sold would bring them up to that price. But, strange 
 to say, not one of the acts now urged against Brown had been put in " the 
 overt acts" in the information. He was charged with conspiring with the 
 other directors falsely to represent that the bank was solvent, by preparing 
 and submitting a false balance-sheet. Now, that balance-sheet went three 
 times before the directors on the 15th, 22nd, and 29th of January, 1856. 
 On the first two occasions, when it was argued, Mr. Brown was present, 
 but, on the third occasion, when the balance-sheet was settled, he was 
 absent from the board. He had also objected to the issuing of new shares ; 
 and it was proved that he had called the attention of the directors to the 
 Vlst clause of the charter, and told them that it was their duty to call a 
 meeting of shareholders, to dissolve the company. Where, then, was the 
 conspiracy ? Was it with any or all of those members of the board who 
 were said to have distrusted him ? It was to Mr. Brown's credit, that
 
 FACTS, FAILURES, AXD FBAUDS. SG5 
 
 when it was proposed to strengthen the board by the addition of some 
 City names, he oilered to resign to make way for them. The learned coun- 
 sel, after a lengthened argument on the case of his client, called upon tho 
 jury to say that he was not guilty of the conspiracy charged against him. 
 
 Mr. LA WHENCE addressed the jury for Macleod. He said, he thought 
 he ought to tell them who and what hia client was. He was a member of 
 an ancient and honourable Scottish family, of which Scotland might well 
 be proud, the son of a gentleman who was lord-lieutenant of the county of 
 Boss, and represented that county in Parliament. From all the associa- 
 tions of his boyhood and early manhood, he had every incentive to pass 
 through life in the paths of rectitude and honour. Having passed through 
 an honourable career of study at one of our universities, ho became a mem- 
 ber of the Inner Temple, and in 1849 was called to the bar. From every 
 person who had known him, ho had the highest character for truthfulness 
 and honour, and he had never lost that character. In the year 1853, he 
 became a shareholder and director of the Koyal British Bank. For some 
 time, he was absent on his wedding tour, and it was not until the end of 
 the year 1853 that he took any part in the business of the bank. In that 
 early period of the bank, there prevailed a system of secrecy, and Mr- 
 Cameron, the general manager, was paramount and omnipotent in the 
 court of directors. Macleod was not a person of any commercial expe- 
 rience ; he had studied his own profession theoretically, and had attended 
 once or twice on the Midland Circuit, but he had no knowledge of com- 
 mercial affairs, and was recommended by a very high authority, the Baron 
 von Hammer, a great Orientalist, to trust to the character and experience 
 of Mr. M'Gregor. Macleod was not the only one who so trusted. And 
 how could he do otherwise ? How could he suspect such a man as Mr. 
 M'Qregor ? Was he, then, to suspect his own father-in-law, Mr. Cameron, 
 a man in good repute, a man of wealth and experience, and the father of 
 his newly-wedded wife ? Or was he to suspect Mr. M'Grregor, and the 
 other members of the board, where he found traders, merchants, and per- 
 sons connected in every way with commerce? What man could harbour 
 suspicion, under such circumstances ? He had acted in a generous and 
 manly spirit. In tho first instance, he purchased 10 shares from Mr. 
 Cameron, and then 10 more, and afterwards paid his deposits on 77 new 
 shares, so that he had in all paid ns much as 5000 into the funds of the 
 establishment. In February, 1855, tho illness of Mr. Cameron caused 
 anxiety in the minds of the directors of the bank. It was found out that 
 Mr. Cameron was indebted to the bank, and no one was more surprised at 
 the discovery than Macleod. Differences occurred among the directors, 
 and what was the conduct of his client ? According to the testimony of 
 Mr. Paddison, he acted as might bo expected from tho honour and cha- 
 racter of an English gentleman ; he acted an independent and manly part,
 
 3GG FACTS, TAILTJKES, ASD FEATJDS. 
 
 and never attempted to shield his father-in-law, when he knew him to be 
 wrong. In the rnontk of July, 1855, it was resolved to make an alteration 
 in the management of the bank, and that one of the directors should at- 
 tend weekly at each branch ; and, by a vote of the directors, Macleod was 
 appointed a visiting director, for that purpose. He attended with regu- 
 larity to the duty to which he had been called, and with such success that 
 the business of the branches increased an increase which was in a great 
 degree owing to from 200 to 300 attendances made by him to the branches 
 in one year. The learned counsel then commented upon one of Macleod' s 
 letters, which had been read, dated the 13th of September, 1855, in which, 
 after speaking of the resources of the bank at that time, and that the di- 
 rectors were about to rediscount 25,000 worth of bills at the Bank of 
 England, he used this expression, " But that is our last shot." The 
 learned counsel explained it by the fact, that at the time there was great 
 monetary pressure ; and he thought that the jury ought not to lay any 
 stress upon an expression of that sort, occurring as it did in a private and 
 confidential letter. He had given the best proof of his faith in the sol- 
 vency of the bank, by taking up 77 new shares issued under the supple- 
 mental charter. It was true he attended the general meeting on the 1st 
 of February, 1856, but he said nothing, and only attended as all the rest 
 did. Though he was a member of the past-due bills committee, that gave 
 him no peculiar knowledge of the condition of the bank. He worked 
 honourably with Mr. Stapleton, and with him was appointed a member of 
 the committee to investigate the convertible securities. The jury could best 
 judge how much the future of his life would depend on the verdict which 
 they presently would pronounce ; but they would bear in mind that he was a 
 young man, whose attainments might yet do credit to his country and hia 
 profession, and whose name had hitherto been without reproach. We ask 
 of you (said the learned counsel) to come to the conclusion, that if he has 
 been imprudent, he has not been criminal ; and if, as the Attorney-General 
 has told you, he has left the bank a ruined man, he is yet not ruined in 
 reputation, nor bankrupt in character. 
 
 Mr. SETMOUB addressed the jury for Mr. Cameron. He said they were 
 now approaching the last scene of this solemn trial, when they would have 
 to pronounce whether this charge of conspiracy was proved ; whether Mr. 
 Cameron had been merely imprudent, or guilty of overt acts of con- 
 spiracy ? He prayed the jury to give him a calm and an indulgent hear- 
 ing, for he had to defend a man against whom every attack had been made 
 by the counsel who had preceded him, who, instead of confronting the 
 evidence, had sought to vindicate their own position by sacrificing his 
 client. He had something to complain of in the conduct of this prosecu- 
 tion, for Sir F. Thesiger, in his opening speech, had accused his client of a 
 fraud which had no existence except in his own brief. He had told, with
 
 vII.URES, AND FBA.UDS. 367 
 
 terrible effect, that sail and moving story that a man named Erunton bad 
 gone 1 .iiTon, that cold and callous individual, that hardened 
 
 r, and that ho had been advised by him to place all his savings in 
 the British Bank, for it was as safe as the Bank of England. But where, 
 said the learned counsel, where is Brunton now ? "Why has he not been 
 called ? It would not do now for his learned friend (Mr. Atherton) to 
 answer with a nod of the head. Ho (Mr. SEYMOTJB) confessed that he 
 trembled when he heard that statement, and felt that, if that fact were 
 proved, his case was over. But now, it seemed, the charge had no real 
 and actual existence, and it ought to teach the jury, before they convicted 
 that man (Cameron), to draw a distinction between prejudice and truth, 
 between statement and sworn evidence. He complained also of the counsel 
 for the defendants, all of whom (eicept Mr. Serjeant Shee and Mr. Law- 
 rence) had, by open charge or inuendo, endeavoured to throw the burden 
 from off their own shoulders, by accusing Mr. Cameron. How was it pos- 
 sible that Mr. Cameron could enter upon a course of fraud with a gentle. 
 man of the character of Mr. Stapleton ? It was said by Sir F. Kelly, that 
 Mr. Stapleton was opposed to Mr. Cameron, but, so far was that from 
 being the case, he had remained friendly with him to the last. But ho 
 now sought to make him a scapegoat. If he had been the man suggested, 
 and doubted the stability of the bank, would he have induced the brother- 
 in-law of his frieud, Alexander Matheson, to become a director? The 
 learned counsel here read several letters which had passed between Mr. 
 Cameron and Mr. Esdaile, in one of which, dated the 17th of September, 
 1855, Mr. Esdaile said, " I agree with you that a tight hand should be 
 kept over all outgoings." If the advice he then and at other times gave had 
 been followed, the bank would now have been a flourishing institution. 
 He opposed the issuing of new shares. That was done in his absence, and 
 in spite of him. To whom did Mr. Kennedy apply as the best man to 
 advise what course ought to bo pursued ? It was to Mr. Cameron. Be it 
 remembered Mr. Cameron was not a promoter of the bank. He was a 
 Parliamentary agent in large business, and was induced by his friend, Mr. 
 M'Gregor, to join the bank, where ho had no vote, but was merely tho 
 servant of the directors. The learned counsel proceeded at some length to 
 explain what was called the " Scotch principle " in banks, which had been 
 BO much ridiculed during the trial. Tho first principle was, to allow in- 
 terest on fluctuating balances, the effect of which was in Scotland, that as 
 much as 40,000,000 was invested in Scotland, in sums varying from 10 
 to 200,000. Another was to commence with a small capital, and gradu- 
 ally to increase the same; and if tho British Bank had not been restric-u-.l 
 by tho Board of Trade us it had been, the credit of tho bank would have 
 been widely different. Another principle was, a system of cash credits, 
 allowing bills to be drawn, payable eo long after demand. The next prin-
 
 368 TACTS, TAILUBES, AFD TEAFDS. 
 
 ciple was, the establishment of a " bad debt fund," and a reserve fund. As 
 to the balance-sheets, they were in the usual form, and the accounts had 
 been audited and subscribed in the usual way by the auditors, neither of 
 whom would the prosecution venture to call. The learned counsel pro- 
 ceeded with great minuteness to examine Mr. Cameron's debt to the bant, 
 and showed, that instead of amounting to 36,000, as assumed by Sir F. 
 Thesiger, it did not amount according to his calculation to more than 
 17,319. Of that amount, as much as 10,600 was in respect of notes 
 given for shares in the bank. As security for that debt he had deposited 
 several policies and other securities, and more particularly his estate at 
 Dingwall, which he should prove to be worth at least 10,000. Sir F. 
 Thesiger said it would fetch 3000 beyond 3000 (the amount of the first 
 mortgage), but the witness who had been called to prove the value, but 
 who knew nothing about it, said it would only fetch 2000. The learned 
 counsel contended, that, if Mr. Cameron's advice had been taken, the bank 
 would have prospered ; but, whenever he made a suggestion, he was 
 snubbed and put down, as he was by Mr. Spens. He was always urging 
 upon the directors the importance of maintaining the bad debt fund, and, 
 in January, 1856, he got a sum of 1000 added to it. It now appeared 
 that the mystic green ledger, about which so much had been said, and 
 which was called Mr. Cameron's pocket-book, was a book in which Mr. 
 Cameron never wrote a line, but it was one to which every director had 
 access, and to which, though the book had a lock, Mr. Cameron had no 
 key. The learned counsel then read numerous letters written by Mr. 
 Cameron to show the interest which he took in the bank, particularly in 
 resisting the demands made by Mr. Walton, the governor, to have his bills 
 discounted, and in pressing Brown to give security for his debt. He 
 showed also that, during his illness in 1855, many of the largest advances 
 were made on the Welsh works, Cochran's debt, the South Sea House^ 
 and the issue of the new shares. It was thus, by the neglect of Mr. 
 Cameron's advice, that the bank had become a wreck. They had got rid of 
 their pilot, and thus the vessel had been cast upon a fatal rock. With, 
 whom had Mr. Cameron conspired ? Was it with Mr. Brown, whom he 
 had compelled to give security? Was it with Mr. Stapleton and Mr. 
 Esdaile, who now said they had rejected and got rid of him ? Was it with, 
 good Mr. Kennedy, who had taken counsel of him ? Was it with his son- 
 in-law, to whom his own daughter was married, and whose marriage settle- 
 ment was all embarked in the bank ? Let the jury, before they found him 
 guilty, recollect that he had three brothers in that gallant regiment the 
 78th Highlanders ; he had three sons, one of whom, a lieutenant in the 
 Artillery, had beaten fifty-six gentlemen from Oxford and Cambridge in an 
 open competition ; he had another son, a member of the bar ; but, said 
 the learned counsel, it unmans me, and yet I have one hope left in an
 
 FACTS, FAILURES, AXD FRAUDS. 369 
 
 English jury that when the name of Campbell has become historic, when 
 the eloquence of Thesiger is mute, when the genius of Kelly is gone aa the 
 light of other days, in a nobler and purer light, it will then be told that, in 
 administering the meed of justice, you learned to remember mercy. 
 
 A number of witnesses were then called to speak to the character of the 
 several defendants. 
 
 Mr. ATJIEETON then rose to reply on the part of the Crown. He said 
 Gentlemen of the Jury, the time has now arrived for me to discharge an 
 arduous duty, which, till this inquiry had far progressed I had no reason to 
 suppose would have been cast upon me. Sir F. Thcsiger has been elected 
 to the highest position in the law in this country a circumstance in 
 which not only the profession, but I believe the community at large, with- 
 out distinction of party, will rejoice, and none more so than I do. But, 
 though I rejoice at that elevation, it is with some regret, because, in con- 
 sequence of that event, the interests of justice are now committed, in this 
 case, to much feebler hands, and this may lead to a miscarriage of justice 
 which would not otherwise have occurred. I am, however, encouraged in 
 the performance of the duty which has devolved upon me by the know- 
 ledge, that, before you pronounce your verdict, you will be assisted by the 
 temperate judgment, the profound learning, and great experience of the 
 noble and learned Lord who presides on this occasion. You have also your- 
 selves brought to the inquiry great knowledge and experience in business 
 which have enabled you to follow the details, and facts, and figures, which 
 it has been our duty to lay before you ; and, more than that, for eleven 
 long days, you have paid that wakeful, vigorous, and careful attention to the 
 case, which not only reflects credit upon you as individuals, but also upon 
 the country, in the administration of whose justice you bear so important 
 a part. I will now address myself to the case which is brought before you, 
 and will consider first, the law and the measure of proof which ia sub- 
 mitted to you on the part of the Crown ; secondly, I will remark on the 
 individual cases of the defendants j and, thirdly, I will enter upon 
 the most important branch of the case, viz., the proofs which bring 
 home to the defendants the knowledge that what they were putting their 
 names to was an untruth, and fraudulent. The counsel for the defendants 
 have asked me to point out the moment and place of the conspiracy, as if 
 that were necessary, in order to establish a case of this kind to the satis- 
 faction of a jury, and to obtain a verdict of " guilty." Neither by law, nor 
 by reason, can such proof be demanded or expected. If you find several 
 persons acting and co-operating together to a given end, and that end an 
 illegal one ; if you bring home to them a common understanding, which ia 
 only another name for conspiracy, can it bo said that you fail to establish 
 the charge of conspiracy, because you cannot prove them to have been 
 together at a particular time and place, to put forward a falsehood, or to 
 
 U B
 
 370 FACTS, FAILTJEES, A2TD FEATTDS. 
 
 avouch a fraud ? If such proof were to be demanded, how many con- 
 spiracies could be brought to light and punished, as they ought to be ? If 
 the conspiracy is rife and carried out, that concert is assumed. All the 
 proof which reason and the English law demand is, that there must be 
 concert between two or more, for a single purpose common to the two 
 or more, and acting in furtherance of that common or illegal purpose. 
 
 Lord CAMPBELL here observed, that persons might be guilty of con- 
 spiracy, without any acts being done in furtherance of it. In the present 
 case, overt acts were alleged, but, as a great deal was said at the present time 
 about the law of conspiracy, his Lordship thought it right to make the 
 correction, lest the high authority of the learned counsel should be quoted 
 for the contrary proposition. 
 
 Mr. ATHERTOX thanked his Lordship for correcting him, but he 
 observed, that his remarks were rather intended to apply to the case now 
 before the Court, in which the defendants were charged with conspiring, 
 and submitting to the shareholders and customers of the Eoyal British 
 Bank, and to the world, a false balance-sheet of the pecuniary state and 
 condition of the bank. With the exception of Cameron, the defendants 
 have all acted as directors of the bank ; and, in that character, they have 
 made the representation to the shareholders, to the customers, and to the 
 world. That position was not thrust upon them against their will, but 
 they took it upon themselves voluntarily. Nay, more, they also accepted 
 the sum of 2000 as the annual remuneration for their services, to be paid 
 to those directors who should be present at the meetings at which the 
 business of the bank was managed. As an institution chartered by the 
 Crown, it had stamped upon it, not, indeed, a character of authenticity and 
 good faith, but a certain public character, beyond what attached to a 
 merely private bank. Among all the pleas which have been put forth for 
 the defendants, not one of them has pleaded ignorance of the charter. 
 They have said they were unacquainted with bills, and ignorant of accounts, 
 and of everything else, but ignorance of the charter has not been set up 
 by any one of them. What, then, were the provisions of the charter ? 
 The 18th clause provided that all the general affairs, business, and concerns 
 of the bank should be under the management and control of the directors, 
 and that they should have the power to nominate and appoint a person to be 
 general manager, for conducting, " under their superintendence and control," 
 the business and affairs of the company. Therefore, when we were told that 
 Cameron was omnipotent and omniscient, and the directors knew nothing, 
 I turned to the 18th clause of the charter, and said that if you, the 
 directors, suffered such a state of things, you disregarded your duty, you 
 acted a fraud, and deceived your customers and the world. The defence, 
 therefore, fails to answer the purpose for which it was put forward j for it 
 was their duty to control Cameron, and manage the manager.
 
 TACTS, FAILUUES, A>'I> FKAVDS. 371 
 
 1 CAMPBELL said tint mere neglect of duty would not be sufficient 
 to sustain this information. 
 
 Mr. ATHEETON admitted that a mere breach of duty, however flagrant, 
 would not bring the defendants within this charge of conspiracy, but he 
 
 i that, when such a defence was set up, it ought to be narrowly 
 
 (1. The 29th section provided that the directors and other officers 
 should diligently and faithfully discharge the duties devolving upon them 
 in their several offices ; and that every director should also sign a declara- 
 tion not to reveal or mate known, in any way whatsoever, any of the mat- 
 ters or affairs which might come to his knowledge as a director of the said 
 company, " except when officially required to do so by tho court of direc- 
 tors for the time being, or by any general or extraordinary meeting of the 
 
 \iy, or by a court of law." The next important clause was the 36th, 
 wliieli required the directors to cause all necessary and proper books of 
 accounts to be kept, "and that in such books true, fair, and explicit entries 
 should be made of all receipts, payments, transactions, and dealings which 
 should from time to time be made by and on behalf of tho company, and 
 all profits, gains, and losses arising therefrom," and that, once at least in 
 every month, they should make and publish " a full, true, and explicit 
 statement and balance-sheet, exhibiting the assets and liabilities of the 
 company, and the amount and nature of the property thereof, and the fair 
 
 led value thereof," and " the profits and losses of the company," etc. 
 That clause shows that ignorance was no defence, for they were well aware 
 that they had the means of information, from the books which were kept 
 according to the charter. The 47th clause provided that, at every general 
 meeting of the proprietors, the directors should exhibit " a true and accu- 
 rate balance-sheet and report of the profits and accumulations of the joint- 
 stock or capital from tho time of the commencement of the business of the 
 company, or the end of tho period included in the then next preceding re- 
 port," etc. The 60th and 63rd clauses are also very important, but a.s they 
 are connected with the balance-sheet, I will consider them when I address 
 
 to that part of the case. The only other important, clause was the 
 71tt, which provided that if at any time the directors should find that tho 
 losses of tho company had exhausted all the "surplus or reserve fund," and 
 also one-fourth of the paid-up capital of tho company, they should call a 
 
 meeting of the proprietors, and submit to such meeting a full 
 ment of the affairs of the company, and that if a majority of tho proprietors 
 so present should resolve that tho losses of tho company had cxhau.-i 
 said fund, and one-fourth of the paid-up capital, tho chairman of such meet- 
 ing should declare such company dissolved, except for tho purpose of 
 
 <,' up its affairs, unless the holders of two-thirds of the votes should 
 then and there undertake to purchase tho shares of the other shareholders. 
 
 the exception of Cameron and Esdaile, the defence made was, that
 
 372 TACTS, FAILURES, A>~D FRAUDS. 
 
 though they ought to have known, and might hare known, they did not, 
 in fact, know the true state of the bank's affairs. They said, in effect, that 
 their eyes were closed to that which they ought to hare investigated, and, 
 having put their names to a criminal and mischievous falsehood, they ask 
 to be acquitted, upon the ground that they had neglected every duty im- 
 posed upon them. If, however, they had merely been guilty of such a 
 breach of duty, in not informing themselves of -what they ought to have 
 known, and if you should come to the conclusion that they were dark, and 
 blind, and utterly uninformed, you cannot find them guilty of this offence, 
 for the essence of this charge is knowledge. Complaint has more than once 
 been made, that all the defendants have been included in tlus information, 
 but I am authorized to say that it was not -without great consideration that 
 this course was adopted. To say nothing of the misery -which had resulted 
 from the stoppage of the bank, and the public feeling thereby excited, it 
 was due to the defendants themselves that they should have an opportu- 
 nity, if they could do so, of vindicating their character, and this course 
 was also dictated by a regard to other institutions of a like kind, and in 
 reference to the public interest. If any one of the defendants had been 
 omitted, it would have been said that, as the adoption of the balance-sheet 
 was the act of all, all of them should have been included. Every one of 
 the defendants attended the general meeting, where the balance-sheet was 
 presented. They presented themselves there as directors, and, by their 
 presence and co-operation, took part in the proceedings. As my Lord has 
 said he does not intend to read over all the evidence, it is necessary that I 
 should call your attention to the particular facts and proofs in the case. 
 One part of the charge is, that the balance-sheet was false essentially false ; 
 and, therefore, it becomes necessary that I should call your attention to 
 what the state of the bank's affairs really was, on the 31st of December, 
 1855 ; and then, that I should proceed to show you that it was false, to the 
 knowledge of the defendants. For two whole days your attention was oc- 
 cupied with that disastrous investment in the Welsh mines ; two days more 
 were spent on the past-due bills and the bad debts made by the bank, and 
 which appeared to be either nearly or altogether hopeless. With respect to 
 the Welsh works, the charge against the defendants is, not that they ad- 
 Tanced the money of the bank imprudently and recklessly, and sank it in 
 the mines, to the extent in all of 108,003 2s. 5d., but that they repre- 
 sented the money so advanced and sunk as a well secured debt, and, as 
 such, put it in the balance-sheet among the " assets " of the bank. They 
 treated it as an available security for that sum, when they must have 
 known that it was not available for one-half the amount. All the evidence 
 showed that the directors were anxious about that investment, and that 
 they could not, and did not hope, that with that millstone round it, the 
 bank could right itself, and be placed in a position of commercial solvency.
 
 TA.CTS, FAILURES, AND FBAUDS. o73 
 
 On one occasion, the din.rtors put the works up to public auction, but 
 . > bid at all, and the only result was, that the bank had to pay 
 1' 1U3 fur the expenses of the attempted sale. Even if they were taken to 
 be worth 60,000, though they only fetched 6000, the advances made 
 upon them exceeded their value by 48,000. Then there were the bad 
 debts 8600 due from the Islington Cattle Market Company ; De Tape's 
 debt, 1193 18*. 4d. ; and Mulh'us's debt, amounting to 11,172 2s. lOd. 
 MuUius had died three years before, a hopeless insolvent ; and yet the bank 
 had added 525 16*. Id., a interest, to the original debt of 10,646 16*. M., 
 and placed that and other hopeless debts in the balance-sheet as " assets " 
 of the bank. They treated that bad debt, not only as one that would come 
 back into their coffers, but they represented the bank as prospering on the 
 debt. Brown's debt amounted to 74,437 3s. Id., but the highest value 
 put upon his securities was 48,000. The next debt was that of Oliver, 
 the shipowner of Liverpool, who owed the bank 14,162 4?. 5d. When 
 the balance-sheet was framed, Oliver's estate had paid a composition of 
 2*. 6d. in the pound, and there was no prospect that it would pay more 
 than 5*. in all, so that, to the extent of 10,000, that debt was hopeless. 
 At that time, Mr. M'Gregor owed the bank 7369 8s. 3d., but he was still 
 alive, and, as the bank had two policies for 1000 each, it miht fairly be 
 assumed that they had security to the extent of 2000- It was said Mr. 
 M'Gregor was living upon literature, which I think is not the best pasture 
 on which a man can browse ; but, beyond that, he had very little, besides 
 iao shares in the Irish Beetroot Sugar Company, and the Irish Peat 
 Company, and other securities of the like kind, which were of little or no 
 value. Nevertheless, the whole of Mr. M'Gregor's debt was put down as 
 " assets," and a sum of 579 2*. 7d., as interest, was added to it ; thus 
 estimating the debt at 5000 beyond its value. The next was Blaeker's 
 debt of -1513 0*. 2d. Before the balance-sheet was framed, it was dis- 
 covered and made known to the directors that the bills which they had of 
 Slacker's, ninety-two in number, were forged acceptances. Ho was a felon, 
 and had fled the country. The bank had employed Forrester, the detec- 
 tive, to arrest the fugitive, but he had escaped beyond the seas, and, \vith 
 the exception of the lease of his house, which sold for 272 11*., the debt 
 was not worth more than the paper on which the bills were written would 
 fetch at a marine store shop. Yet the whole of that worthless debt of more 
 than 4000 went to swell the amount of the assets of the bank. Then 
 there was Gwynne's debt of 13,415 19*. lid., which was quite ho, 
 There was also Cochran's debt of 9503 3*. 5d., and Cameron's debt of 
 J823,896 12*. Id. How far Cameron's debt was considered to bo a \\ 1 11- 
 secured debt, you can judge by the acts of the directors themschv.-, which 
 showed that they had no available security. In addition to those debts, 
 there was a considerable number of past-duo bills, the account of w Inch
 
 374) FACTS, FAILURES, AXD IKAUDS. 
 
 was kept in the past-due bills book. Some of those bills were dishonoured 
 in the year 1850, and came before the committee year after year, showing 
 their dishonoured faces, hopeless at the end, as in the outset. The amount 
 of those bad bills vras estimated by Mr. Barnard at 12,523 14*. 2J., but 
 Mr. Cameron added 90CO more, and made the amount 21,555. By the 
 60th clause of the charter it was provided that, at the end of six months of 
 every year, the directors should declare a dividend " out of the clear profits 
 of the company then actually accrued and reduced into possession; " and, 
 by the 63rd clause, it was further provided that every year the net profits, 
 "after making deduction and allowance for bad and doubtful debts," and 
 after setting apart such proportion of the profits as the directors might- 
 think requisite for the " surplus or reserve fund," should be divided among 
 the proprietors. Under those and the other provisions of the charter, the 
 directors, on the 1st of February, 1856, convened the shareholders, and 
 printed their balance-sheet to December 31, 1855. They issued a report, 
 which -was sent to all the shareholders and customers of the bank, in which 
 they said " The directors beg to present herewith their balance-sheet for 
 the past year, and to declare a dividend at the rate of six per cent, per 
 annum, free of income-tax." At the meeting, the report -was first read. 
 The balance-sheet was then presented, in which, on the debtor side, it was 
 represented that the " gross balance for the year ended the 31st of Decem- 
 ber, 1855, after making a provision on account of bad debts, and paying 
 interest (25,320 Ss. 3d.) on deposits, promissory notes, and balances," 
 amounted to 30,551 2s. Jd. ; and, on the creditor side, it was represented 
 that the "assets" of the bank, "by loans on convertible securities for short 
 periods, advances on cash credit accounts, bills discounted," etc., amounted 
 to 986,272 11s. Id. Now, in order to make up that amount, every six- 
 pence advanced on the Welsh works, all the past-due bills, good, bad, and 
 indifferent, and bad debts, with interest, had been reckoned as " assets," 
 although a large portion, at the lowest calculation 150,000, was utterly 
 lost and hopeless. Those bad debts were treated as "assets," though they 
 never could come back to the bank, and interest was calculated upon them 
 so as to produce that sum of 30,551 2s. Id., which the directors repre- 
 sented as the balance for the half-year, and out of which they set apart a 
 sum of 4274 13s. to pay a dividend of six per cent. If the truth had been 
 told to the shareholders, it would have appeared that the "liabilities " were 
 largely in excess of the "assets," and there could have been no dividend. 
 The consequence would have been, that the shares would have fallen, and 
 the depositors would have withdrawn their money. But instead of telling 
 the truth, the directors made a dividend, and issued new shares at a pre- 
 mium of 5 per share. The learned counsel then proceeded for several 
 hours to comment on all the facts proved in the case, with a view to show 
 that each and every one of the defendants was well acquainted with the
 
 TACTS, FAILURES, AND FBAUD3. 375 
 
 insolvent condition of the bank. lie allowed that the tabular statements 
 of accounts h;ul boon given to Cameron to lay before the directors, when 
 the balance-sheet was considered on the 15th and 19th of January, and 
 adopted by them on the 22nd. He urged that, as the defendants were all 
 present at the general meeting on the 1st of February, 1856, they all, some 
 by their presence, and others (Esdaile and Kennedy) by their speeches, 
 confirmed the false impression produced by the false balance-slu- 
 would bo impossible to follow the learned gentleman through a 'speech 
 which lasted upwards of six. hours, in the course of which he reviewed all 
 the more prominent parts of the evidence, as it affected the several defend- 
 ants. He particularly referred to the letter written by Esdaile, the go- 
 vernor, to Owen, the deputy-governor, on the 15th of January. If the 
 jury were satisfied that the defendants had lent themselves to the represen- 
 tation of what they knew to be false, he was sure that no consideration of 
 their previous character and conduct would induce them to abstain from 
 finding them guilty on this charge. 
 
 Lord CAMPBELL then proceeded to sum up the evidence. His Lord- 
 ship said Gentlemen of the Jury, the anxious task now devolves upon me 
 of summing up in this very important case ; and I say it most unaffectedly, 
 my anxiety is greatly diminished, when I consider the character and quali- 
 fications of the gentlemen whom I have now to address. If it had been my 
 duty to try this case in the country, at the assizes, before country gentle- 
 men and farmers, I should have been much more embarrassed. I should 
 probably have known more than the jury, and it would have been my diffi- 
 cult and anxious task to try to communicate information to them on mat- 
 ters of which they would bo ignorant. But, gentlemen, you know much 
 more of this subject than I do ; and it is a satisfaction to me that you are 
 so well qualified, and that justice is sure to bo done by your verdict. Dur- 
 ing this long and laborious trial (and we have now arrived at the thirteenth 
 day), you have devotedly attended to the evidence, and it seems to me that 
 you thoroughly understand it. My task is, therefore, comparatively a light 
 one, and I shall only feel it my duty to state tho questions of law which 
 may arise, and to direct your attention to what I consider to be the prin- 
 cipal questions for your determination. It was my fate, gentlemen, in 
 another case, to be occupied two days in summing up ; and justice so re- 
 quired ; and if I thought that I could at all assist you by going through 
 the whole of my notes, page by page, I would not spare myself the labour 
 of completing that task. But I think that, on this occasion, instead of 
 assisting you, such a course would rather perplex you; and that I sliall 
 best discharge my duty, by bringing boforo you a few plain poin 
 stating tho questions which you will have to consider. Clontlrmon, this 
 information was filed by the late Attorney- General (Sir R. BETUELL), a 
 gentleman of great learning and high honour, who filled the oflice of At tor-
 
 TACTS, I-AILTJBES, A2TD FKAUDS. 
 
 ney-General with great distinction ; and, whatever may be the event of 
 this prosecution, no one can ascribe the smallest blame to him for the 
 course which he adopted. After the failure of the Boyal British Bank, 
 and the ruin and scandal which it caused, it became essentially necessary 
 that an inquiry should take place, and he has put the defendants upon 
 their trial. This is an ex offlcio information. Generally speaking, before 
 a person can be put upon his trial in England, there must be a bill of in- 
 dictment found by a grand jury, and so it is universally as to felony and 
 high treason. But, in regard to misdemeanours, the Attorney- General has 
 the right ex officio to file an information. This is an ancient and undoubted 
 prerogative, and quite constitutional and beneficial, and I have heard no 
 complaint on the part of the counsel for the defendants of the course which 
 has been adopted. Gentlemen, this information charges, in the first count, 
 that the defendants conspired together to represent to the shareholders that 
 the Royal British Bank and its affairs had been, during the half-year 
 ended the 31st of December, 1855, and then were, in a sound and pros- 
 perous condition, producing profits divisible among the shareholders, they 
 well knowing the contrary, with intent to deceive and defraud the share- 
 holders, customers, and creditors of the bank. This is the conspiracy 
 charged. Then there are several overt acts alleged, the principal of which 
 are, the report of the directors to the shareholders of the state of the bank 
 on the 31st of December, 1855, the issuing of new shares, the balance- 
 sheet, of which you have heard so much, which professes to give a true 
 account of the condition of the bank at that time, showing they could give 
 a dividend of six per cent, out of the supposed profits, buying the bank 
 shares with the bank's money for the purpose of keeping up the deceit, 
 etc. It has already been stated that, by the law of England, the crime 
 of conspiracy may be completed, without any overt acts committed ; but 
 it has been properly stated by the learned counsel (Mr. ATHEETON), 
 who has latterly so very ably conducted the prosecution, that the overt 
 acts ai-e properly to be looked to, because from them the jury may draw 
 an inference as to the object of the conspiracy. With regard to con- 
 spiracy, it is not essential that evidence should be given of any formal 
 consultation, in which the parties are supposed to have deliberately re- 
 solved to do an illegal act, or to do a legal act by illegal means ; but if, as 
 reasonable men, you see there was a common design, and they were acting 
 in concert to do what is wrong, that is evidence from which a jury may- 
 suppose that a conspiracy was actually formed. Now, gentlemen, the 
 manner in which it was proposed to show that there was a conspiracy in 
 this case was first, to show that the bank was in a state of insolvency at 
 the end of the year 1855 and beginning of 1856 ; secondly, that this was 
 known to the defendants ; and, thirdly, that, knowing that, they entered 
 into the design to represent that the bank was then in a flourishing con-
 
 FACTS, FAILUBES, AND FBAUDS. 377 
 
 dition, for the purpose of deceiving those who were shareholders, or the 
 public who might wish to become shareholders. It is for you to say 
 whether, on the part of the prosecution, they have established those three 
 
 . I must caution you against supposing that, if one or several have 
 done what was improper, that will establish the charge against them. For 
 instance, if they went on after the "reserve fund" was exhausted, that 
 alone will not establish the charge. The charge is, that they conspired to 
 
 resent the actual state of the bank, for the purpose of deceiving the 
 shareholders, and, to establish that, there must be a joint design, a joint 
 combination and conspiracy. In addressing you, I shall first call your 
 attention to whether there has generally been such a conspiracy, as is 
 alleged on the part of the Crown ; and then I will draw your attention 
 particularly to the cases of the different defendants. I have already (in the 
 course of the trial) had occasion to advert to the fact that there is con- 
 siderable difference with regard to the evidence against the several defend- 
 ants, to which you have attended in so exemplary a manner, and it will be 
 your duty to distinguish between them. The great point is, what was the 
 real state of the bank on the 31st of December, 1855 ? According to the 
 balance-sheet published by the directors to the proprietors on the 1st 
 of February, 1856, it was in a very flourishing condition. You have 
 all copies of the report and balance-sheet, and it is essential that 
 you should continue to look at them. If that balance-sheet be true, the 
 case for the prosecution fails altogether ; for, on the part of the prose- 
 cution, they undertake to prove that it is false and fraudulent, and par- 
 ticularly that it takes credit for a number of debts absolutely desperate, so 
 as entirely to misrepresent the actual condition of the bank. There was 
 notice given on the part of the Crown to the defendants of a great number 
 of debts, but they are now confined to a certain number, which we havo 
 been engaged many days in investigating. I did not complain of that, 
 though the exact amount of the debts was not material, nor the manner in 
 which they were incurred, for we were not trying the directors for impro- 
 vident ly allowing those with whom they were dealing to incur debts. We 
 are to examine what was the condition of the bank, at the time to which I 
 have referred. I sliall therefore spare you the history of the Welsh mines, 
 and shall say nothing about Swift and Diimmler, and the other parties of 
 whom we have heard so much ; for, though the directors should be blamed 
 for entering into those mining adventures, that would not support this 
 charge, unless it contributed to the insolvency which they desired to con- 
 ceal and to deceive the shareholders. The first debt to which I shall call 
 your attention is the sum advanced upon the Welsh works, under various 
 heads, amounting to an aggregate of 108,003 2s. 5d. Now, gentlemen, 
 there was some security for these advances, viz., the mines ; but these 
 mines, at the highest estimate, could not have been worth more than half
 
 FACTS, PAILUEES, A^D FRAUDS. 
 
 that sum, for, in the month of June, 185-1, when the directors put them up 
 to auction, they fixed a reserved bidding at 60,000. They were finally 
 sold for 6000 ; but that ought not to be taken as the value of the security 
 at the time. The next debt was the sum of 8600 due by Harrison and 
 other parties connected with the Islington Cattle Market Company. You 
 recollect that every attempt was made to recover that amount, but the debt 
 turned out to be utterly hopeless ; as did De Tape's debt of 1193 IS?. M. 
 Then came the debt arising out of the advances made to Hullins, who is 
 dead, and I wish that nothing but what is good could be said of the 
 dead ; but I am afraid that all parties concur in throwing just blame upon 
 him. There is no doubt that advances were made to him, which, with 
 the interest, amounted to 11,172 2s. I0d. ; but he died insolvent, and 
 that debt is totally lost. Then we investigated the advances made to 
 Humphrey Brown ; but I do not think we are in a situation to know ex- 
 actly the value of the securities which he gave to the bank for the advances 
 which were made to him, amounting altogether to 74,437 3s. Id. But 
 though we do not know the exact value of the ships which he mortgaged 
 to the bank, the value must be taken at the price which they would fetch 
 at the time, and before the value of shipping had fallen forty per cent., as it 
 did afterwards. It was said by the prosecution that the highest value was 
 48,000, and that a loss at least of 36,000 was thus occasioned. But this 
 is a question entirely for you. His lordship here observed, in favour of 
 Brown, that he thought there was but little ground for saying that Brown 
 had deceived the bank as to the value of his securities. Then there was 
 the alleged loss on Oliver's debt, amounting to 14,162 4s. 5d. ; but, 
 although he (Oliver) became insolvent, and paid scarcely anything in the 
 pound (5s.), there were other names on his bills, and how much they paid 
 into the bank you are not fully informed. Then comes M'Gregor, another 
 director, who received advances to the extent of 7369 8s. 3d. He gave 
 as security some policies, one of winch realized 1181 18s. ; and some 
 shares in various companies which were worthless, so that upon his debt 
 there was a loss of about 6000. Kext comes Slacker's debt of 4513 Os. 2d. 
 He had forged the names of the acceptors to a number of bills which had 
 been discounted by the bank, and therefore he was the only person liable 
 upon them ; but he fled the country, and the bills in point of law and value 
 were utterly worthless. Then comes the debt of G-wynne, another director, 
 amounting to 13,415 19s. lid. He had deposited some shares in a com- 
 pany, but the debt is entirely lost. Then comes Cochran, another director, 
 whose debt amounted to 9503 3s. 5d. He is one of the defendants on 
 this record, but he has fled the country, so his debt is entirely lost. Then 
 there is the debt of Cameron, the general manager, which amounted to 
 23,896 12s. Id. ; but the value of his security is not yet well ascertained. 
 There is evidence that he has property at Dingwall, which can be sold for
 
 FACTS, FAILURES, ASD FRAUDS. 379 
 
 forty years' purchase ; but it is impossible to tell how much it may produce. 
 And yet, gentlemen, all these sums were tnken into account, and credit is 
 taken for them in the balance-sheet to December 31, 1855. In addition to 
 this, it appeared from the books of the bank that there was a sum of 
 22,000 owing upon past-due bills, upon wliich they had ceased to calcu- 
 late interest, yet that sum of 22,000 is included in the balance-sheet in 
 the " assets" of the bank. You, gentlemen, will form your own opinion, 
 but it seems to me that in this balance-sheet debts are included which were 
 known to be bad to the extent of at least 100,000. If so, I should think 
 this balance-sheet is a false account. A balance-sheet should giro some in- 
 formation to the shareholders as to the state of the bank ; but here credit 
 is taken for 100,000 worth of bad debts, just as if it had been 100,000 
 invested in the Three per Cents. It is said, it is the custom with banks to 
 include bad debts in their balance-sheets as " assets." If so, it is a very 
 strange custom, if there is no reserve fund for paying them. But it is said, 
 that there was a " reserve fund" for bad debts. If that had been so, and a 
 proper sum had been reserved, the case would have been different ; but the 
 fund reserved for the payment of bad debts, amounting, on the 31st of 
 December, 1855, to 100,000, was only 339 1*. Id. It seems to me, 
 therefore, that there is strong evidence, but you are to consider it, and form 
 your own opinion, that in this balance-sheet credit was taken for sums 
 for which credit ought not to have been taken, and that this had a certain 
 tendency to impose upon the shareholders. His Lordship here read over 
 the evidence given by Mr. Barnard, the cashier of the bank from the com- 
 mencement in 1849, respecting his examination of the past-clue bills in 
 April or May, 1855, under the direction of Cameron. According to his cal- 
 culation, the good bills were 52,584 4*. 5d. ; the doubtful, 52,976 155. 8d.; 
 and the bad, 12,523 14*. 2d. ; total, 118,094 14s. 3d. Barnard, how- 
 ever, said that Cameron added to the number of bad bills, and made the 
 amount 21,555. His Lordship said he thought he ought also to read over 
 the cross-examination of Mr. Barnard, as it was favourable to the directors. 
 It stated, in substance, that he believed the securities held for the advances 
 made by the bank were sufficient ; that the character of the bills of the 
 bank became better as they went on ; that he believed that both Brown's 
 debts and the securities on the Welsh mines would have been good, if tho 
 bank had not stopped ; that he believed somebody would get a fortune out 
 of tho works yet, as they only wanted capital ; that he himself belio 
 bank to be solvent, till within a short time of tho stoppage, and lud in 
 consequence advised his friends to take shares, and also refused a more 
 lucrative situation than the one lie held in the bank; that the business of 
 the bank had greatly improved during tho last year, and tliat more- than 
 1000 new accounts had been opened in the vcar ending June 30, 1855, etc. 
 His Lordship then proceeded to read Craufurd's evidence, as to the manner
 
 380 TACTS, TAILTJEES, AND FEATJDS. 
 
 in -which the balance-sheet was made out by him. The general principle 
 was to state the result of the different books, and, giving credit to them 
 that what they stated was true, the balance-sheet would be a true account 
 of the state of the affairs of the bank ; but, if those books were wrong, the 
 balance-sheet would be a delusion and snare. There could be no doubt 
 that Craufurd did his duty in taking out the accounts correctly, and, if the 
 materials had been solid, the result would hare been unexceptionable. He 
 (Craufurd) prepared three tabular statements of accounts, marked A, B, 
 and C, and gave them to Cameron. The balance-sheet for December 31, 
 1855, was then made from the balance-sheet of June 30, 1855, by merely 
 altering the figures. This was done by Craufurd, under Cameron's direc- 
 tions. His Lordship observed that, though Cameron was not a director, 
 and had no vote at the board, he was answerable for the manner in which 
 the balance-sheet was made out, under his superintendence and by his 
 directions. The jury would say whether it was true or false. The balance- 
 sheet having been first approved by the directors, at a court held in the 
 latter part of January, was laid before the proprietors, at a general meeting 
 held on the 1st of February, 1856. It gave a very nattering account of 
 the state of affairs, and it was for the jury to say, looking at the evidence, 
 whether that balance-sheet was true, and justified the directors in their 
 report, in which they declared a dividend of six per cent. The balance- 
 sheet showed that there was a " gross balance for the year ended the 31st of 
 December, 1855, after making a provision on account of bad debts, and 
 paying interest (25,320 8s. 3d.) on deposits and promissory notes, and 
 balances," amounting to 30,551 2*. Id. On the other side, they took 
 credit, under the head of "assets," "By loans on convertible securities 
 for short periods, advances on cash credits, bills discounted," etc., for 
 986,272 11*. Id. But, in that sum of 986,272 11s. Id., there was in- 
 cluded the 108,000 advanced on the Welsh works, and all the debts of 
 the Islington Cattle Market Company, Mullins, Brown, M'Gregor, Oliver, 
 Blacker, Gwynne, Cochran, and Cameron. Now, on the 1st of February, 
 upon the occasion when the report and balance-sheet were laid before the 
 general meeting, all the defendants were present. Then they came to a 
 resolution that the report should be adopted, and that there should be a 
 dividend of six per cent, for the half-year. It would be for the jury to 
 say whether the shareholders were not grossly deceived, and whether there 
 was not, on the part of the defendants, an intention to deceive. There 
 was evidence given of other overt acts, such as the issue of circulars, which 
 would only be wrong in case the defendants knew the bank to be insolvent 
 at the time ; but there was also evidence of purchasing the bank shares 
 with the bank's money, which would not be justifiable, under any 
 circumstances. After the general meeting, the bank went on, till the 
 beginning of September, 1856, when the bank stopped. It was then found
 
 FACTS, FAILURES, ASJ) FRAUDS. 381 
 
 that there was a deficit of 220,5(12 17s. 1(W., which must fall either upon 
 the shareholders, or on the depositors. The jury would now say, whether 
 the defendants had this guilty design to deceive the shareholders. If the 
 defendants knew of the insolvency of the bank they ought to bo found 
 guilty ; but if any of them did not know of its insolvent state the jury 
 ought to acquit them. His Lordship then proceeded at great length to 
 comment upon the evidence, as it affected the several defendants. And 
 first, with respect to Cochran, his Lordship said ho had gone abroad, and 
 therefore the jury might dismiss him from their consideration. His Lord- 
 ship said he would consider the cases of the defendants in a different order 
 from that adopted by the learned counsel (Mr. ATHERTON), but without 
 saying the principle upon which he arranged them. Ho would take them 
 in this order Stapleton, Macleod, Owen, Kennedy, Esdaile, Brown, and 
 Cameron. With respect to Stapleton, his Lordship thought no blame 
 could attach to the prosecution for including him with the other defendants, 
 because it was most proper that the conduct of the whole of them should 
 be examined ; nor could he impute any blame to the prosecution for taking 
 the opinion of the jury upon Mr. Stapleton's case ; w although," said his 
 Lordship, " I must confess that I rather expected, after the evidence had 
 been closed, that there might have been an intimation that, so far as Mr. 
 Stapleton was concerned, no sufficient case to be presented to the jury had 
 been established." But it was not for him to interpose, and, as there was 
 evidence to go to the jury, they must decide whether Stapleton was guilty 
 or not. His Lordship then reminded the jury that Stapleton did not join 
 the bank till the 31st of July, 1855, and that he took no active part in it 
 till his return from Scotland on the IGth of October. His Lordship 
 reminded the jury that Stapleton did not join the bank with a view to 
 profit, but because being a barrister, and not meeting with great success, 
 for " the race is not always to the swift, nor the battle to the strong," he 
 wished to be employed. Ho was recommended to the bank as a flourish- 
 ing and respectable establishment ; and it was admitted by Sir F. TUZSIGBU 
 (now Lord Chancellor) that, when he entered it, he was in utter ignorance 
 of the state of its affairs. He held twenty shares, which he had not tried to 
 dispose of, and the only benefit he derived from the bank was the dividend 
 upon his shares. It was he (Stapleton) who moved for the appointment of 
 a committee on the convertible securities ; and, though he had thus become 
 acquainted with Brown's debt, it was not to be inferred that he really knew 
 the bank to be insolvent. The jury would form their own opinion, but he 
 (Lord Campbell) saw nothing, down to the 1st of February, 1856, to show 
 that Stapleton was aware of the insolvency of the bank. It appeared also that 
 BO late as August, 1856, only a few days before the bank stopped payment, 
 he wrote a letter to his friend Mr. Alexander Matheson, in which he stated 
 that, although there was a run upon the bank, he believed that, if some
 
 382 TACTS, FAILUEES, A~SD FEATJDS. 
 
 gentlemen of known wealth would join them, the public confidence wonld 
 be restored, and be asked Mr. Matheson whether, if he should be satisfied 
 that the bank was solvent, he would join the board. It was in Stapleton's 
 favour that, in July, 1856, he had opposed a dividend, and recommended 
 a call instead. His Lordship here read over the evidence given by Mr. 
 Paddison, and the other witnesses, who stated that they had never seen any- 
 thing in the conduct of Stapleton that was inconsistent with the highest 
 honour and integrity, and added that if the jury took the same view of 
 Stapleton's case that he did, he (Stapleton) would leave the court without 
 a stain upon his character, and if he should, at any time, return to his 
 profession of a barrister, his Lordship said he should be glad to see him 
 practising in any court over which he presided. The next name was 
 Macleod, and although there was more evidence against him, there was no 
 positive proof. He was not a speculator, nor had he obtained advances 
 from the bank. He purchased a large number of shares, and invested in 
 them the sum of 5000, and, instead of speculating with them, he made 
 them the subject of his marriage settlement. He certainly was a director 
 from 1853 down to the stoppage, and if he had gone through the same 
 laborious investigation of the books which had occupied the Court so 
 many days, he might have acquired a knowledge of the insolvency of the 
 bank. His Lordship here referred to the excellent character which 
 Macleod had received from the witnesses, particularly from Mr. Eullen, 
 the eminent special pleader, whose pupil Macleod had been. His Lord- 
 ship thought a more serious case was made against Owen, who had 
 been much longer a director ; but he had invested all his savings in the 
 bank, and had not derived any benefit from it. An excellent character had 
 also been given to Owen, and his Lordship left it to the jury to say whether, 
 under those circumstances, they ought to find him guilty. His Lordship 
 then referred to the evidence as it effected Kennedy with great minuteness, 
 and particularly referred to the letter addressed by him to Cameron, on the 
 loth of May, 1855, as showing that, even at that time, he must have had 
 a strong suspicion as to the insolvency of the bank. Could they doubt 
 that, when Kennedy wrote that letter, he must have entertained the belief 
 that if the true state of affairs were known, it would lead to the stoppage 
 of the bank ? And yet, after writing that letter in May, 1855, he con- 
 curred in the report and balance-sheet presented to the shareholders on the 
 1st of February, 1856. His Lordship also referred to the speech made by 
 Mr. Kennedy at the meeting ; and to the discussion which had taken place 
 in the court of directors, in 1855, on the subject of the 71st clause of the 
 charter, which required the directors, in case at any time the losses should 
 exceed one-fourth of the paid-up capital and surplus fund, to convene a 
 meeting of proprietors to dissolve the company. On the other hand, 
 there was the fact that he had derived no personal benefit from the bank,
 
 PACTS, FAILURES, A2TD FHA.IJD8. 383 
 
 and had introduced bis family to become shareholders and customers. 
 
 .irdship then came to the ease of Esdailc, the governor of the bank, 
 and observed that he (Esdaile) had derived no benefit from the bank, and 
 had not obtained any money from it ; but he was concerned to state that 
 out of his own mouth he had a knowledge of tho true state of its affairs. 
 Pis Lordship here read a largo portion of tho deposition made by Esdaile 
 in a proceeding which had been instituted in Chancery under thc> "VVinding- 
 up Act, in which that defendant bad stated, in the most explicit manner, 
 MB knowledge of the various debts of the bank, and which left no doubt 
 that he must liave known that it was in an insolvent state. Bis Lordship 
 also read the letter which Esdaile had written to the deputy-governor, Owen, 
 on the 15th of January, 1856. His Lordship then proceeded with the 
 evidence as it affected Brown ; and called upon tho jury to dismiss from their 
 minds all prejudice, and to consider him as an innocent man until his 
 guilt was proved. He had borrowed largely from the bank, and, having 
 givt u securities, he had a strong interest in keeping up the bank as long as 
 possible ; but he was afraid that destruction would come down upon it 
 and him, if strong measures were not taken. His Lordship here read a 
 long letter which Brown had written on the subject of his debt to the 
 bank, in which he complained of the course the directors were taking to 
 realize his securities, particularly referring to the advances made on the 
 Welsh works, and other bad debts which the bank had made. His 
 Lordship also referred to the statement made by Brown in the court of 
 directors, in the year 1855, when he said that, one-fourth of the paid-up 
 capital and reserve fund being lost, it was their duty to convene a meeting 
 under the 7lst clause of the charter, to dissolve the company, and that if they 
 went on any longer, they would do so on their own personal responsibility. 
 His Lordship then came to tho case of Cameron, who, he said, had borne 
 a high character, but it appeared he was a sanguine man, and hoped 
 that tho bank would become a valuable establishment. It would bo for 
 the jury to say whether, being disappointed in that hope, he had not 
 resorted to unworthy means, and become a party in a scheme for deceiving 
 the shareholders. The bank commenced with a small capital, less than 
 50,000, and it soon got into difficulties. Tho jury would say, whether it 
 was not contrived that there should be a series of balance-sheets to deceive 
 the public, to conceal the loss which had been sustained, to make it appear 
 a flourishing concern, and to draw in purchasers of new shares. The 
 balance-sheet and report were prepared under the direction of Cameron, 
 and the jury would say, whether the directors and Cameron were not 
 acquainted with the real state of tho bank's affairs. It would be for them 
 
 . whether any two or more of the defendants wore guilty ; and 
 though it would be a great satisfaction to him if they could say they were 
 not guilty, he (Lord Campbell) was sure they would not shrink from their
 
 384 FACTS, FAILFEES, AKD FEAIJDS. 
 
 duty, but would give a verdict which would be satisfactory to their con- 
 sciences and to the country. His Lordship concluded by advising the jury 
 to retire. 
 
 The jury then retired to consider their verdict, and after some time 
 they returned into court. 
 
 The foreman said the jury were unanimous to find three of the defend- 
 ants guilty ; and eleven of the jury had agreed to find them all guilty, but 
 he (the foreman) dissented from the latter verdict. 
 
 Lord CAMPBELL said the verdict of the jury must be unanimous. The 
 jury must retire, and reconsider their verdict. His Lordship then observed 
 that he did not know whether a nolle proseqtd could be entered as to the 
 other four defendants ? 
 
 Mr. KENNEDY (for Brown) opposed that, and said it could not be. 
 
 Mr. ATHEBTON said that in the discharge of his duty he could not 
 consent to that. 
 
 Lord CAMPBELL said he did not know that that course could be 
 adopted, and directed the jury to withdraw, and reconsider their verdict. 
 
 In answer to a question from a juryman, 
 
 Lord CAMPBELL said that, before convicting any one of the defendants, 
 the jury must be persuaded that he was acquainted with the insolvency of 
 the bank, and knew that the balance-sheet was not a true representation of 
 the state of its affairs; 
 
 The jury then again retired, and, after some time, they sent for Ken- 
 nedy's letter to Cameron of the 15th of May, 1855. The letter was sent 
 to them by Lord Campbell's directions ; and, at a few minutes past eight, 
 they returned into court. 
 
 The foreman then said that they found all the defendants Guilty ; but 
 strongly recommended four of them viz., Stapleton, Kennedy, Owen, and 
 Macleod, to the mercy of the Court. 
 
 Lord CAMPBELL. Mr. Atherton, do you pray judgment ? I am pre- 
 pared to deliver judgment. 
 
 Mr. ATHEBTON. As your Lordship is prepared, I pray judgment. 
 
 Lord CAMPBELL. Perhaps it will be better, if I take till Monday 
 morning. 
 
 Mr. Serjeant SHEE said, the defendants could then submit affidavits. 
 
 Mr. KENNEDY said he wished to move for a new trial. 
 
 Upon that, Lord CAMPBELL said he would pronounce judgment at 
 once ; and the defendants were all called to take their places on the floor 
 of the court. 
 
 Lord CAMPBELL said I shall first pass sentence upon you, Humphrey 
 Brown, Edward Esdaile, and Hugh Innes Cameron. After a long, and, I 
 hope, impartial trial, you have been convicted by a jury of your country, 
 upon the clearest evidence, of an infamous crime. You were charged with
 
 FACTS, r.ULt'ilES, A>~D FIIA.UD3. 
 
 conspiring to deceive and defraud the shareholders of the bank to which 
 you belonged, by false representations, and it is clear that you did so. I 
 acquit you of having originated this bank with the fraudulent intent to 
 cheat the public; but it is now demonstrated that for years you have 
 carried on a system of deliberate fraud, and have fabricated documents for 
 the purpose of deceiving the public, for your own direct, or indirect, 
 benefit. It would be a disgrace to the law of any country if this were not 
 a crime to be punished. It is not a mere breach, of contract with tha. 
 shareholders or customers of the bank ; but it is a criminal conspiracy to 
 do what inevitably leads to great public mischief, in the ruin of families, 
 and reducing the widow and orphan from affluence to destitution. I regret 
 to say that, in mitigation of your offence, it was said that it was a common 
 practice. Unfortunately, a laxity has been introduced into certain com- 
 mercial dealings, not from any defect in the law, but from the law not 
 being put in force ; and practices have been adopted, without bringing a 
 consciousness of shame, and I fear without much loss of character among 
 those with whom they associate. It was time a stop should be ptit to such 
 a system, and this information was properly filed by her Majesty's Attor- 
 ney-General, and the jury have properly found you guilty. I hope it 
 will now be known that such practices are illegal, and will not only give 
 rise to punishment, but that no length of investigation, no intricacies 
 of accounts, and no devices will bo able to shield such practices. On 
 account of this being the first prosecution of this nature, I pronounce 
 a milder sentence than I otherwise should ; but the mildest sentence that 
 I can pronounce upon you, Humphrey Brown, Edward Esdaile, and Hugh 
 Innes Cameron, is that you be imprisoned in the Queen's Prison for 
 one year. 
 
 Richard Hartley Kennedy, the jury have recommended you to mercy, 
 and I think there are grounds which justified them in coming to that con- 
 clusion ; but still there is strong evidence against you. That paper for 
 which the jury sent shows that, though you were a respectable member of 
 society, and filled creditably the office of sheriff, you lent yourself to this 
 deception. You did not derive any personal advantage from it, but it is 
 clear to my mind that when you joined in that last report you were fully 
 aware that the bank was insolvent, and you knew it to be false. The 
 lightest sentence I can give you is nine months imprisonment in the 
 Queen's Prison. 
 
 William Daniel Owen, the jury have found that you also had a guilty 
 knowledge of the insolvency of the bank, when you concurred in that 
 report and balance- sheet, and I cannot say they were wrong, for you had 
 long been a director, and had ample means of information, and several 
 papers read show that. Therefore, though I think you are less guilty, you 
 must be imprisoned for six months. 
 
 C
 
 386 FACTS, FAILUEES, AND FEATTDS. 
 
 Henry Dunning Madeod, the jury, who are the proper judges of the 
 fact, have found you also guilty. The sentence upon you is, that you be 
 imprisoned for three months. 
 
 John Stapleton, the jury have found you guilty ; but I cannot con- 
 scientiously order you to do more than pay a fine of Is. to her Majesty 
 and be discharged. 
 
 Mr. KENKEDY applied that execution of the sentences might be deferred 
 till Monday, in order that arrangements might be made. 
 
 Lord CAMPBELL. I will not delay execution of the sentence for a 
 single moment. (Applause.) 
 
 The defendants were then removed in custody. 
 
 Mr. ATHEETON applied that the other informations might be made 
 remauets. 
 
 Lord CAMPBELL. Certainly. 
 
 Mr. KENNEDY. And be tried after next term. 
 
 Lord CAMPBELL. I will make no order. 
 
 The Court then adjourned. 
 
 It may be stated that these informations have never been tried. 
 
 During some portions of the trial the proceedings were of a very unin- 
 teresting and tedious character, but at others the greatest excitement pre- 
 vailed. This was particularly the case during the addresses of the counsel 
 on behalf of the defendants, and at the close of some of the speeches the 
 applause was enthusiastic, but it was immediately suppressed by the 
 Court. 
 
 TEE AFFAIRS OF THE EOYAL BRITISH BANK. 
 
 At a meeting of the shareholders of the Eoyal British Bank, held on 
 the 20th of September, 1856, a condensed statement of affairs was ex- 
 hibited by Mr. J. E. Coleman, which set forth the liabilities at 
 530,131 12. 9rf. and the assets, exclusive of Welsh works, 288,644 Ss. lid. 
 Subjoined, however, are the full details,
 
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 FACTS, FAILUEES, AND FEAUD8. 391 
 
 CIIAPTEE VIII. 
 
 THE CRYSTAL PALACE FRAUDS AND FOBGEBIES, PEUPETBATED 
 BY WILLIAM JAMES BOBSON. 
 
 The Commission of High Crimes Their Progress and Influence Early 
 History of Kobson His Juvenile Tendencies Appearance in Business 
 Life Early Occupation His Humble Resources and Literary Aspira- 
 tions Efforts as a Dramatist, and Career in the World of Letters 
 Subsequent Engagement at the Great Northern Eailv.ay The Develop- 
 ment of his Tasto as a Man of Fashion, and his Indulgence in Extra- 
 vagant Hahits The Transfer of his Services to the Crystal Palace 
 Company His Strict Attention to Duties and Business Habits The 
 Enlargement of his Sphere of Acquaintances, and the Expenditure 
 necessarily involved His Promotion in his Office, and the Confidence 
 placed in his Integrity The Confidence of Mr. Fasson, the Head of 
 the Transfer Department, obtained and subsequently abused The 
 First Step in Crime The Style of Eobson's Living The Extension of 
 his Fraud;, and the Zlodus opcrandi Accidental Discovery Flight 
 Capture Bankruptcy and Trial. 
 
 , the most ordinary circumstances, there is something of 
 interest in the record of great crimes. The criminal act may 
 be condemned, but the fact cr.unot be concealed, that delibe- 
 rately and voluntarily to brave the feelings and prejudices of 
 society, to proclaim wr.r, as it -were, against social laws by 
 violating the recognized and established principles of virtue 
 and morality, require an amount of individual courage which, 
 turned in any other direction, would almost constitute heroism. 
 There arc many thousands, unfortunately, in every large com- 
 munity who are born, bred, and nurtured in crime, and who 
 resort to it naturally and from necessity. But these repr 
 a \vholly different section from the class of criminals who, 
 either from temptation or design, tamper with tin? weighty 
 trusts reposed in them, and who dissipate their fraudulently 
 acquired means in the evanescent pleasures of gay society, or
 
 392 TACTS, FAILURES, AND FRAUDS. 
 
 the attempt to obtrude themselves into circles in which their 
 supposed resoiirces may assist to compensate for the absence of 
 position or regularly accredited antecedents. Startling as the 
 revelations were in the history of the great Exchequer-bill 
 frauds, as committed by Beaumont Smith in years gone by, 
 and reproduced as they have been, in another form, subse- 
 quently by "Walter Watts, in the case of the Globe Assurance 
 Company, the method adopted by "William James Eobson in 
 gratifying his strong passions and vitiated tastes, and recruit- 
 ing his resources through the fraudulent transfer of the shares 
 of the Crystal Palace Company, will show that, while engaged 
 in a dissipated round of life, his activity and shrewdness en- 
 abled him to conceal his malpractices for some few years, 
 though he never could have hoped eventually to have averted 
 discovery. 
 
 William James Eobson was born at Chingford, in Esses, in 
 November, 1820 or 1821. His father, it is stated, was a hay 
 salesman, a man respected by his friends and acquaintances, and 
 possessing, there is reason to believe, cultivated tastes. As a 
 boy, Eobson exhibited good natural abilities, an aptness for 
 acquiring information, and a ready acuteness in the ordinary 
 affairs of life, which subsequently was so fatally developed. He 
 was, however, more remarkable for sharpness than amiability. 
 In youth, as in manhood, he was selfish and impatient of con- 
 trol, and seemed utterly wanting in the power of self-denial. 
 Thus the strictness of parental discipline soon became irksome 
 to him, and he ultimately ran away from home. His uncle 
 thereupon kindly took him under his care, and perhaps too 
 kindly educated him. In youth and early manhood, Eobson 
 displayed good taste in literature and art. He was specially 
 fond of works of imagination, and soon attempted to rival the 
 productions he so much admired. Like most young men who 
 devote leisure time to literary pursuits, he commenced his en- 
 deavours by writing verses. One of his earliest lyrics may be
 
 FACTS, FAILURES, AND FBAUDS. 393 
 
 quoted as a proof of his possession of the power of expressing 
 his thoughts in readable if not elegant language. Though not 
 very original in manner or in matter, it is worth reproduction, 
 as in some respects applicable to his own reminiscences in after 
 years: 
 
 ''THE DEEAMS OF YOUTH. 
 
 " We all have dreams in early youth, 
 
 Ere life hath gathered elder dross, 
 And thought lies buried in its truth, 
 
 Like violet hidden in its moss : 
 Those times ere fancy leap'd to speech, 
 
 And tear-drops then, unclouded bows, 
 When hope and love throbb'd each in each, 
 
 And every blossom bloom'd a rose. 
 
 " We backward gaze in after years, 
 
 To view the scenes of early days ; 
 While in the eyes the unbidden tear 
 
 The heart's emotion oft betrays. 
 And thus old age with childhood meets, 
 
 Until the soul can dream no more ; 
 The past is then a grave of sweets, 
 
 And flowers blossom all before." 
 
 This bears internal evidence of having been written at that 
 age when the stern realities of life are beginning to destroy the 
 unreasonable dreams of boyhood, frequently to be succeeded by 
 the scarcely less reasonable aspirations of early manhood. 
 There was in Kobson's case little that was utilitarian. Fond 
 of poetry, fiction, and the drama, he occasionally contributed 
 light literature to the periodicals ; but the stage became a pas- 
 sion with him. He not only frequented the theatre, but 
 aspired to become a dramatist. Nor was he without consider- 
 able promise of excellence unrealized. His best play, " Love 
 and Loyalty," is generally admitted to be a very respectable 
 production. It not only reads well, but, as Douglas Jerrold 
 would have said, " it will play." It is a drama in five acts, 
 and has occasionally run for several consecutive nights. Ho
 
 TACTS, TAILUEES. A>*D FBATTDS. 
 
 was also the author of " "Walthoff," "The Selfish Man," 
 "Bianca," etc. The last-named play, his latest production, is the 
 one on which Robson felt most inclined to rely for fame. It is 
 averred that he was proud of it, and with consummate hypocrisy 
 professed to believe that it would he a powerful incentive to 
 virtue. In the dedication, this model moralist thus expresses 
 himself : " To those, who, believing in the realization of the 
 highest aspirations of the human mind, claim for the drama the 
 proud position of being one of the chief means by which that 
 realization is to be attained." At the very moment when 
 Robson penned this little bit of stage-morality, he was actually 
 a felon, notwithstanding his felony was as then undiscovered. 
 Concurrently with the production of his earlier dramatic pieces, 
 Eobson had also essayed to become an actor. On several occa- 
 sions he appeared in private theatrical companies, in his own 
 play of " Love and Loyalty," and in the provinces he even did 
 not hesitate to appear in public. Individuals who have seen 
 him perform, however, do not speak highly of his Thespian 
 powers, or consider that he would ever have attained excellence. 
 It is not to be supposed that the young dramatist had pro- 
 cured the representation of his play without that hope deferred, 
 and those constant disappointments which beset the path of all 
 literary aspirants. "Writing to a friend on this topic, he ob- 
 serves : 
 
 " It is a national loss that the man of letters lias no other tribunal to 
 which to submit the work of his brain than to publishers, or managers, who 
 rarely read -what is placed before them ; and, if they do, are not qualified to 
 stand in judgment between the author and the public. Some institution 
 is required, to be presided over by a paid council of intelligent literary men 
 capable of separating the chaff from the wheat, and stamping their verdict 
 on the work, somewhat after the fashion that true gold is marked at Gold- 
 smith's Hall. If this system were instituted, there would be no flower 
 born to blush unseen ; works of worth and genius would be preserved to 
 the public, and the authors of them saved from discourteous suubbings or 
 polite falsehoods from men who deal hi literature with no higher 
 than he who deals in pigs to make money by it. Depend upon it, if such
 
 FACTS, FAILUHES, AND FRAUDS. 305 
 
 a council were formed, and an author were fortunate enough to obtain the 
 word "excellent" stamped upon his work, publishers and managers would 
 scent it from afar, and, with cheque-book and hat in hand, would soon bo 
 in full cry after it. It is my full conviction that there are more men of 
 genius struggling for hearing, than those already before the world ; and but 
 for the difficulties that have no right to exist, they would now be in that 
 position in society which their gifts entitle them to hold. There are dismal 
 episodes in the life of almost every author of celebrity, not so much con- 
 nected with the production of his works, as with the difficulties he has had 
 to contend with to get them before the public. Through this wrong, so- 
 ciety has had many narrow escapes of losing some of the great books that 
 enlighten and adorn it ; and it would be impossible to say how many have 
 been lost. Facts inform us that but for accident we should have had no 
 Goldsmith, no Milton, no Otway, no Bloomfield, no Crabbe, no Johnson, 
 and others of little less celebrity. Men of letters should look more to their 
 own interests than to allow this disgraceful state of things to exist. I write 
 thus strongly upon the subject, because I am at the present moment suffer- 
 ing from a system so pernicious and hurtful to the author. Through tho 
 unnecessary difficulties of gaining a hearing, many a fine work, I am con- 
 vinced, remains buried in library-table drawers, or has been consigned, iii 
 the writer's despair, to the destroying flames." 
 
 "Without seeking to controvert 4he position. Eobson here 
 assumes for which this is not a fitting place it may be 
 remarked, in passing, that, with some sophistry, there is in this 
 letter considerable truth. Eobson, like most literary men, 
 clearly saw the evil, and, with the extravagance natural to 
 youth, he exaggerated it ; but his proposed remedy shows little 
 power to grapple with it. The letter is chiefly valuable, indeed, 
 as an index to character. Tho writer incidentally manifests 
 that vanity which was so strong an element in his composition. 
 Doubtless he regarded himself as that oft-quoted "flower" 
 which is " born to blush unseen," and his unaccepted piny as 
 that diamond buried in the dark recesses of a mine, which forms 
 so apt an illustration in the works of adolescent writers. 
 
 But the play was not without considerable dramatic power, 
 and there are niany passages in it of so lofty a tone of 
 morality that the only wonder is that it could have 
 written by such an individual. It was produced at the Theatre-
 
 39G TACTS, FAILURES, A>~D FSATJDS. 
 
 Royal, Marylebone, on the 13th of November, 1854, and was 
 printed with a dedication to Mr. "Wallack, who played the 
 liero, Marston, during its run at that theatre. In this dedica- 
 tion, after -writing in terms of the greatest kindliness to " My 
 dear Wallack," the author says : 
 
 " I feel I hare that within me which can produce better efforts than 
 this, and I now know that whilst assured of your united aid, I may fear- 
 lessly body forth the highest flights of my imagination, with a certainty 
 that they will meet with more than justice in representation. Many a 
 dramatic author has sunk into oblivion for want of able and willing expo- 
 nents; but I, more fortunate, have found not merely secondaries, but 
 artists of genius, who have charmed me into the belief that some truth and 
 beauty exist in my creations." 
 
 This play of " Love and Loyalty," despite all the disap- 
 pointments which preceded it, may be considered one of the 
 brightest and most favourable episodes in Robson's career. It 
 shows that had he committed himself to the path of literature 
 \\ithhonestyofpurpose and with an earnest industry, he might 
 have achieved an average success. But subsequent dis- 
 coveries show that honest industry and earnest purpose in the 
 battle of life were never in reality possessed by Eobson. 
 
 Literature and the drama were, however, but the casual 
 amusements of young Eobson, and were pursued with very 
 little pecuniary benefit. His uncle had intended him for more 
 commonplace pursuits. As a lad, he was first engaged as a 
 law-writer in Chancery Lane a precarious and ill-paid employ- 
 ment, by which he secured some fifteen or eighteen shillings 
 a-week. But if the money was earned hardly it was acquired 
 honestly, and it would have been well for him had he worked 
 earnestly and hopefully, as many a law-writer had done before, 
 seeking all the while to gain a higher position at a future day. 
 But his early career was marked by those debasing pursuits 
 which ruin health and home, blast many a young man's pro- 
 spects, blight the fair hopes of woman, and bring many a father's 
 gray head with sorrow to the grave. His work in the day was
 
 FACTS, FAILUBES, AND FRAUDS. 397 
 
 pursued mainly to obtain the means of dissipation in the even- 
 ing. His amusements were the theatre, the casino, and, worse 
 still, the gaming-table. But Robson, it is believed, never 
 staked very deeply. He was too poor to be sought as a victim 
 by the practised gamester, and he himself relished more the 
 amusements of town life than the feverish excitements of play. 
 For those who are in the bloom of youth, the seductions of 
 London are too often fatally powerful ; and among these, not 
 the least attractive were those fascinations which only indi- 
 viduals of high moral or religious principle are enabled suc- 
 cessfully to resist. In Eobson's case there was certainly no 
 restraining power of religion, and it is to be feared his moral 
 tendencies were anything but strong. Gay associates of both 
 sexes were those whom he most willingly selected, and their 
 influence exercised the usual unsatisfactory result it increased 
 his temptations, while at the same time it undermined his 
 power to resist them. 
 
 Still, though he gave himself up to those dangerous amuse- 
 ments which too often induce reckless dishonesty in obtaining 
 the means of gratifying them, he nevertheless, as far as it will 
 probably ever be known, managed to maintain his pecuniary 
 integrity. Negatively he might have been dishonourable 
 that is to say, he ran in debt and made no struggle to free him- 
 self from it but at least he was not positively fraudulent. 
 Through all his secret excesses he endeavoured to maintain an 
 outwardly respectable position during his employment as a 
 law-writer, and to secure the good-will of the firm by whom 
 he was engaged. By their interest indeed it was that he gained 
 a more advantageous position that of clerk in the office of 
 the Great Northern Eailway Company. In accordance with 
 the supposed judicious arrangements of railway companies, ho 
 entered the service at a small salary only, but it was a good 
 opening for him had he determined on a straightforward coureo 
 of thorough perseverance.
 
 S98 TACTS, FATLUEES, ASD TEAUDS. 
 
 Robson's engagement at the Great Northern Railway was 
 of short duration, though it does not appear that he did any- 
 thing to forfeit the confidence of his employers. He was 
 however, fond of change, and imagined, perhaps, that the 
 Crystal Palace offered better prospects to ensure future pro- 
 gress. The post which was oifered him there certainly could 
 not have been, pecuniarily, very attractive as an immediate 
 engagement, since the salary at which he entered the service 
 was the small pittance of 1 a- week. The position was nomi- 
 nally far better than the emolument, and it is indeed marvel- 
 lous that a young man of good abilities and education should 
 have been so miserably remunerated. But more surprising 
 still was it how Robson could have kept up the external pro- 
 prieties of such a situation on so small a salary ; for he now 
 had another dependant on him. Shortly before his Crystal 
 Palace engagement, he had assumed the responsibility of the 
 married man. His young wife, it is believed, brought no 
 dowry with her, and all the legitimate sources of his income 
 was the clerkship at the Crystal Palace and occasional contri- 
 butions to the press and periodicals. It is not probable that 
 the latter source was very fruitful, as his literary efforts were 
 produced only by fits and starts, and they occasionally met the 
 common fate rejection. A fair prospect was now, however, 
 before him. His appearance and manners were attractive ; 
 his talents were admirably adapted to secure advancement ; 
 and he soon acquired the confidence of those immediately 
 above him. His duties at the Crystal Palace commencing in 
 the early part of 1853, it was not long before he obtained a 
 better appointment, and in June, 1854, a still more advanta- 
 geous post was offered him that of chief clerk in the transfer 
 department, at a salary of 150 per annum. This was no 
 exorbitant pay, truly, for a well-educated, refined, gentlemanly 
 man, of thirty-four, with literary tastes and a large circle of 
 town acquaintances, including actors, artists, and others ; but
 
 TACTS, F.VILUEES, ASD mAUDS. 399 
 
 it was at least .a higher salary than Robson had ever before 
 vd, and, with prudence, it would have sufficed for the 
 ordinary expenses of hunself and his lady, as ho was without 
 family. 
 
 The head of the department in which he was engaged was 
 Mr. Fasson, the treasurer and registrar of the Crystal Palace 
 Company. This gentleman exhibited some partiality for 
 Eobsoa, induced by his aptness in the duties of his office, and 
 by his engaging and agreeable manners. Gradually but surely, 
 Robson acquired so much of Mr. Fasson's confidence, that 
 occasionally the management of the whole of the transfer 
 department was intrusted to him. lie was at this time re- 
 J indeed, by all who knew him, not only as an agreeable 
 and fascinating fellow, but as a man of honour and integrity. 
 His position at the Crystal Palace in name and character, 
 rather than from its emolument gave him a good status of 
 respectability, and secured him attention among his acquaint- 
 ance. In a word, the path of rectitude and comfortable main- 
 tenance was before him.' 
 
 But Eobson was . not a gentleman of simple tastes or 
 habits. The calm pleasures of domestic life had no charms 
 for him ; he longed for the more delusive charms of a fast 
 :. and repined because his moderate salary debarred him 
 from the gratification of his luxurious desires. Ambitious in 
 i oughts and voluptuous in his enjoyments, the theatre or 
 the ball-room made the evcry-day duties of the desk and the 
 transfer-book horrid drudgery to him. His salary also re- 
 el stationary, while his appetite for the exciting pleasures 
 of A\'fat End life increased. His means of securing the enjoy- 
 ments of his congenial but more wealthy companions could 
 not keep pace with his pretensions, and to secure some one 
 special pleasure the ghastly demon Crime at length proflerc-d 
 1. Temptation attacked Uobson to give him justice iu 
 ing the enormity of his subsequent delinquencies at a
 
 400 TACTS, FAILURES, AND FEATJDS. 
 
 great disadvantage. He had drank deeply of the cup of 
 pleasure till he had become intoxicated with excitement ; the 
 glare and glitter of the stage, the gossip of the greenroom, 
 the tinsel friendship of gay associates, unsettled a mind never 
 trained to the steady routine of every-day business, and then 
 the fatal facility of an escape from apparent toil to the 
 assumed refinements of fashionable life was presented to him 
 with a force which he was unable to resist. How suddenly the 
 thought of committing forgery first flashed upon him how he 
 repelled it with horror how it returned with subtle malig- 
 nance at a weaker moment how he still rejected it parried 
 its returning assaults and finally yielded to the Tempter 
 need not be too curiously inquired into. The temptation and 
 the fall is an ever-recurring tragedy one of those life-dramas 
 of humanity, in which there is many an agonizing scene. 
 Many a time, perhaps, have these terrible phases been re- 
 produced with vivid remembrance to the remorseful brain of 
 the now convicted felon, with a ghastly distinctness which none 
 but Eobson himself can probably ever realize. 
 
 The mode, however, in which the delinquency was effected 
 was subsequently exhibited clearly enough. Mr. Easson, the 
 superintendent of the department, was afflicted with ill-health. 
 He was consequently frequently absent, and Eobson, at such 
 times, had unlimited control. A considerable portion of the busi- 
 ness of the transfer office was, in fact, in his hands entirely. There 
 was, as is customary in the transfer department, a book con- 
 taining a register of shareholders of the company, every person 
 possessing any shares having his name inserted as a means of 
 reference and identity. This register was evidence to the com- 
 pany of the title of the persons upon it, but to the public at 
 large, and the parties themselves, the company were compelled 
 by their deed to issue certificates to show what that title was ; 
 and these certificates, if possessed by others, would give an 
 apparent title in the eyes of the public to a transfer of shares.
 
 FACTS; FAILURES, AND FBAUDS. 401 
 
 But inasmuch as the certificates given showed the names of 
 al persons on the register, no parties who chose to 
 make proper inquiry could by possibility be defrauded, or could 
 be induced to part with their money without a legitimate trans- 
 fer. But Eobson took advantage of the confiding trust of the 
 shareholders. The certificates, bearing the names of the per- 
 sons appearing upon the register, were frequently allowed to 
 remain in the possession of Eobson. Shareholders, instead of 
 taking their certificates into their own possession, often suffered 
 them to remain in the custody of the company. Now, as 
 already mentioned, any person possessing these certificates was 
 able to claim a title to the shares in the market. Eobson knew 
 that if he had used any of the names placed on the register, 
 and had sold or transferred those shares, and the parties had 
 applied for dividends, the frauds would have been detected. 
 Laying his plans more cautiously, however, he determined on 
 going to the brokers and offering to transfer the shares, not 
 using the name of any person appearing on the register or on 
 the certificates, but using another name. With a want of 
 feeling, the party whom he selected for his victim was his own 
 brother-in-law, Mr. H. Johnson, a contractor and builder re- 
 siding in Birmingham. This gentleman, who was shown never 
 to have had any shares in the Crystal Palace, and who knew 
 nothing whatever of the transaction, was thus brought into 
 painful notoriety, and was, by a natural misapprehension on the 
 part of the public, considered to have had collusion with the 
 only guilty party in the matter. Mr. Johnson's participation 
 in the proceeding, however, was absolutely nominal j his name 
 had merely been used for basely fraudulent purposes. 
 
 The way in which the proceeds of the fraud and forgery were 
 obtained was this : Eobson directed a Mr. Clement, a stock- 
 broker, to sell 100 shares in the company, and the broker accord- 
 ingly sold them 60 to a Mr. Joseph Lowe, and 50 to another 
 person. For these shares the broker received 295, which lie 
 
 D i)
 
 402 FACTS, FAILUKES, AXD FRAUDS. 
 
 paid'over, less commission, to Eobson. The document by winch 
 these shares were transferred, purported to convey the shares 
 from Johnson to the purchasers. The signature to the deed, 
 where the name of the transferor should be, was that of Henry 
 Johnson, nominally, of course, written by that gentleman, but 
 virtually being a forgery on the part of Eobson. Opposite to 
 this name were the seal and signature of the attesting witness, 
 " "William James Eobson, of JSTo. 3, Adelaide Place" [London 
 Bridge the offices of the Crystal Palace Company]. 
 
 It has been said, that the mode in which the forgery and 
 transfer were effected should have aroused suspicion when the 
 document was offered for negotiation. Johnson, it has been 
 remarked, had no right to transfer, seeing there had been no 
 previous transfer to that gentleman, and this fact might natu- 
 rally have created doubts as to the bond fide character of the 
 transaction subsequently sought to be effected. In reply to 
 this, however, it has been observed, that the broker not unna- 
 turally assumed that some person might have transferred the 
 shares to Johnson, and that Johnson had a right to transfer 
 them to a subsequent purchaser. In addition to this, Eobson : 's 
 position was an official one, as the chief clerk in the department 
 from which the transaction emanated ; and, at the time, no cloud 
 of distrust had dimmed- his reputation, to say nothing of his 
 plausible manners and his clever, business-like tact in his 
 pursuits. 
 
 This, his first forgery, was effected successfully in January, 
 1856. He had passed the rubicon of crime, and was hurried 
 on in his fatal course by new temptations, which became more 
 powerful as his desire to resist them became weaker. And 
 now the fatal fascination of a gay and dissipated life laid fast 
 hold upon him. New pleasures required additional funds, and 
 forgery and dissipation hastened his final ruin. 
 
 The career that Eobson now wholly abandoned himself to was 
 that of the open profligate and man of pleasure But to enjoy
 
 FACTS, FAFLITRLS, AXD FHATLD3. 403 
 
 this life, if enjoyment ifc could be called, it was necessary for 
 him to lull suspicion by assuming to have other resources than 
 his salary of 150 per year. To account, therefore, for the 
 luxuries which he purchased by robbery, he gave out that he 
 had made several fortunate speculations in commercial compa- 
 nies.* To give the greater colour to this false representation, 
 he employed some of the ill-gotten wealth which ho temporarily 
 secured, in establishing antimony works in Lambeth, f Truth 
 to say, however, few arc curious enough to inquire into the 
 sources of those refinements and luxuries in which they may 
 participate. The gay, fascinating spendthrift, who gives grand 
 parties, who invites his friends to a trip in his yacht, or a seat 
 in his well-appointed vehicle, is too often accepted just for what 
 he is worth, without the least reflection as to the means by 
 which his wealth is acquired. He is called a good fellow, and 
 is spoken of as a lucky dog, and no suspicious questions are 
 raised until the final catastrophe arrives. Thus it was in Eob- 
 son's case. Some there were, perhaps, who had their misgiv- 
 ings as to the sources of his newly-acquired luxuries, but the 
 great majority of his town companions were but too happy in 
 the hollow friendship of the prodigal, who spent his gains in 
 rioting and excess, or more frequently in the more refined but 
 equally seductive pleasures, Avhich have the approbation of 
 " society." Those who knew what his official position was, and 
 that his salary was but a moderate one, have been known to 
 joke him upon the fact of so gay and fashionable a- man retaining 
 a post so unworthy of his place in the world of fashion ; but to 
 such innendos he always replied that he felt it necessary to 
 have some settled occupation to regulate his habits, and to im- 
 pose some little discipline, in order that he might not fall into 
 
 * And tins to a certain extent was not untrue. He had been raised 
 up in several undertakings, and had in some operations been sucvcsaful at 
 tlic Stock Exchange. 
 
 t Robson was made a bankrupt as an antimony smoltcr.
 
 404 TACTS, FAILTTBES, AND FBAUDS. 
 
 ennui. The reason was plausible enough, and it was accepted 
 for the moment as sufficient. 
 
 The pleasures in which the fashion-loving clerk indulged 
 were not such as to prevent his regular attendance to his duties. 
 As the office-hour came round, Eobson was at his post, over- 
 looking everything in the absence of his principal, or, when he 
 was there, with the most subtle cleverness forestalling any sus- 
 picion which else might have been engendered. In this respect 
 he acted with true worldly wisdom. He was always at hand 
 to answer any inquiries, ever ready with some admirably 
 plausible explanation for any omission or discrepancy in the 
 accounts. But out of the office, he immediately devoted him- 
 self to the pleasures and allurements of a gay town life. 
 
 As soon as he had committed himself to the pursuit of rob- 
 bery, he had taken a pretty, quiet, and yet fashionable villa at 
 Kilburn, a north-western suburb of London. It was called the 
 Priory, and was just such a cottage as a well-to-do merchant or 
 a retired professional man might have chosen. The Priory soon 
 became the resort of a crowd of fair friends, who were only too 
 ready to share in the host's supposed prosperity. He himself 
 now became emphatically a man of pleasure. " Dum vivimu-s 
 vivamus," appeared to be his motto, the idea of " life" being the 
 roue's, the exquisite's, the fast man's notion of mundane bliss. 
 No gentleman's equipage was a better turn-out ; no mare was 
 more sleek and well-groomed than his fast-trotting "Eliza;" 
 none more fashionably dressed and bejewelled than Eobson 
 himself. Like many others who have better right to the en- 
 joyment, he was fond of horses, and could familiarly speak of 
 the favourites of the turf. Eaces were his delight, and his 
 drag for the Derby was by no means the dullest or slowest on 
 the road. In personal dress and adornment, Eobson was quite 
 luxurious. He had the most approved cut coats, the most ex- 
 quisite waistcoats, and his whole wardrobe was, if anything, 
 even too profuse for a man of his habits. Dressing-gowns,
 
 TACTS, FAILURES, AND FRAUDS. 405 
 
 ordinary coats, evening party dresses, shooting and angling 
 dresses, he possessed in redundant variety. His jewelry, in- 
 cluding diamond studs and rings, was most expensive, and, in 
 fact, his whole appearance that of a distingue London gentle- 
 man ; and he was, accordingly, everywhere treated with that 
 outward deference which good personal appearance, with all 
 the advantages of good attire, invariably commands. 
 
 Kilburn Priory, expensively and elegantly furnished, had 
 become almost the nightly scene of festive entertainments. 
 Robson's young wife, utterly ignorant of the fraudulent way 
 in which supplies were derived, not unnaturally gave way to 
 the seductive influence of her new sphere, all the more charm- 
 ing because it was comparatively fresh and novel. Her husband 
 was the life and soul of the merry can it be said happy ? 
 assemblies which there congregated. His gay, delonnair man- 
 ner, his literary and artistic tastes, his dramatic powers, were 
 all called into requisition ; and it may well be supposed that, afc 
 those moments when the fear of detection was strong upon him, 
 he unreservedly gave himself up to the delirious delights of the 
 mazy dance, or to the false allurement of the card-table. 
 
 How long this course of dissipation and crime lasted, it 
 were difficult to estimate. It must be remembered, however, 
 that he entered on the service of the Crystal Palace Company 
 in the beginning of the year 1853, and continued in the en- 
 gagement till the 17th of September, 1856. When it is borno 
 in mind that the detected forger acknowledged that his rob- 
 beries had extended to no less a sum than 10,000* (which 
 was under the mark), it may well be conceived how fast and 
 furious were his fashionable parties, how reckless his personal 
 expenditure. But Kilburn was not the only scene of his gay 
 extravagance. He made little secret of being unfaithful to his 
 wife. Two mistresses, in distinct establishments, helped Eob- 
 
 * The reports of Messrs. Quilter, Ball, and Co., who investigated the 
 accounts, show that the actual deficiency was, in round numbers, 27,000.
 
 40G PACTS, TAILrHES, AND FRAUDS. 
 
 son to spend his ill-gotten -wealth. Presents were lavished 
 upon these ladies ; servants attended them ; tradesmen gladly 
 obeyed their orders ; and the wild prodigal paid for all.* 
 
 Such a course of fast, fashionable luxury could not last for 
 ever, and many a time Robson must have felt that his dis- 
 honest income was not enough for the demands upon him. 
 Crime lagged behind Luxury. But once committed to his 
 desperate career, he had nothing left but to dash on recklessly, 
 wilfully, blindfold, and with stifled conscience. Madly and 
 swiftly indeed did he now rush down the fatal path, which ever 
 terminates in ignominy and darkness. Gay company and 
 flattering friends at home, or with one of his mispresses at 
 night, f and his fast mare in the morning, to carry him to the 
 scene of secret fraud his course was one interminable scene of 
 excitement. To presume that this was pleasure, is to shut our 
 eyes to human nature and ignore general experience. Bitter 
 must have been llobson's memories, but more bitter far must 
 have been his fears for the fatal discovery which he knew must 
 . He had arrived at the pinnacle he had sought, but he dared 
 not look at the dark gulf beneath. He had gained wealth but 
 not happiness. The apparently golden fruit had crumbled to 
 ashes in the grasp. How deep was the agony of his anticipa- 
 tions may be imagined from the fact that, when in the very 
 zenith of his luxury, he possessed a ring so contrived that it 
 Leld enough poison to take away his life when the moment of 
 detection came. 
 
 But still the course of crime was trodden. Day after day 
 he would drive on the road to his office in his neatly-appointed 
 cab, putting up, however, hard by, that he might not appear at 
 
 * It seeras to be calculated that lie spent at least 3000 a-year, since, in 
 
 u to his frauds, lie was in some respects fortunate at the Stock Ex- 
 
 changejandhe derived some emolument as a director of one or two companies. 
 
 f" The discovery of his place of concealment abroad was through a letter 
 directed to the milliner of one of his mistresses, which fell into wrong hands, 
 and was surreptitiously made use of.
 
 FACTS, FAITAT.ES, AtfD FBATDS. 407 
 
 the office to be living too fast ; ami, when there, he would pay 
 the most devoted attention to the account*, with that cunning 
 
 a which, fraud necessitate?, and with the agony of fear in- 
 duced by crime. He knew that lie was standing on a mine which 
 might explode at any instant and hurl him to destruction. 
 
 At last the explosion came, bringing ruin and devastation 
 on Eobson, his wife, and his home. On the 17th of September, 
 1S5G, Mr. Fasson, the head of the transfer department in 
 which Kobsou was engaged, applied to him for some certifi- 
 
 . They were missing. It would seem that the question 
 was not asked iu suspicion ; the certificates happened to be 
 wanted. This occurred in Mr. Fasson's private rooms at the 
 Palace, in the presence of Mr. Grove, the secretary. Eobson 
 must have been well-nigh thunderstruck, but controlling his 
 agitation, he endeavoured to evade the question. If Mr. 
 
 :i had been hitherto unsuspecting, suspicion must now 
 have come upon him, and he persisted in his demand. No 
 longer able to evade inquiry, Eobson affected to treat the 
 matter lightly as a mere mistake, and said that he had the 
 certificates at his private residence at Kilburn. The truth 
 seemed to flash horridly upon Mr. Fasson, and he proposed 
 that they should proceed to Kilburn for the missing docu- 
 mentsgo at once go now. Still Eobsou's studied coolness 
 did not desert him, and he assented as a matter of course. A 
 conveyance was immediately ordered, and the clerk and his 
 superior at onco drove off for Kilburn. "What must have 
 been the detected forger's thoughts every student of human 
 nature may imagine; but though despair and remorse may 
 hnve seized on their victim, his impassible countenance be- 
 
 1 no signs of the inward struggle. On reaching Kilburn 
 Priory, the pretty house which soon was to be untenanted, 
 Eobson ushered Mr. Fassou into a parlour, chatting pleasantly 
 upon ordinary topics, and rang for lunch. Mr. Fasson sat 
 down, ill at ease and anxious for the production of the certifi-
 
 408 FACTS, FAILUEES, AXD FRAUDS. 
 
 cates. Robson would just step up and fetch them he would 
 not be a moment and they would then take " a snack" to- 
 gether. He stepped up-stairs he came into the parlour he 
 had mislaid them. This was perhaps thrown out as a feeler 
 to his principal. But he was stern. He would wait till they 
 were found. Again Robson went up-stairs, ostensibly to 
 search for them, Mr. Fasson pacing the room with anxious ex- 
 citement. Time passed on, and Robson did not return. At 
 last Mr. Fasson could bear his suspense no longer. His in- 
 quiries for his clerk were so urgent that the house was 
 searched ; and searched in vain. Robsou had taken sudden flight. 
 
 Hurrying back alone to the Palace in the same vehicle 
 which had brought his scheming, but at last baffled, clerk to 
 Kilburn Priory, Mr. Fasson at once communicated with the 
 directors. Robson's accounts were immediately examined 
 through the new light which had burst upon the officials, and 
 the gigantic fraud was discovered. The intelligence soon 
 spread and reached City circles. It was communicated on 
 the Stock Exchange in the laconic sentence, "Something 
 wrong with Crystal Palace shares Robson, the clerk, has 
 decamped." The immediate effect was a drop in price. The 
 discovery made, the police Avere communicated with, and a 
 reward of 500 was offered for his apprehension. 
 
 Meanwhile the fugitive criminal had hurriedly gathered 
 together all the money and valuables he could secure in a 
 small compass, and having made his exit from the back of his 
 suburban residence, had actually the cool audacity to order a 
 cabman to drive him to a West End tavern, where he ordered 
 dinner for himself and a friend. The repast was sent in fish- 
 curry, and a brace of partridges. "With a squeamish epicurean- 
 ism which reminds one of the choice of viands allowed to 
 prisoners before they are led to the fatal scaffold, Eobson, so 
 it is asserted, found fault with the course. " I am very sorry," 
 said this exquisite delinquent to the attendant, " that Mr.
 
 FACTS, FAILUEES, AND FEATJDS. 409 
 
 has sent me curry, for I never eat it ;" adding, as lie shut his 
 eyes to his impending fate, " Pray tell him to remember this 
 when I dine here again." Eobsou never dined there again. 
 
 Though temporarily secreted in London, flight from his 
 country was, he well knew, his only chance. The detectives, 
 like bloodhoxinds, it was certain would at once be on his track, 
 and he accordingly took passage in a steamer bound for 
 Copenhagen, still in company with a lady a relative. He as- 
 sumed that much-abused patronymic Smith. Edward Smith 
 was his travelling name, and he also had disguised himself the 
 better to escape recognition. All, however, was unavailing. 
 -The machinery of the law and the aid of the telegraph proved too 
 much for him. The heads of the continental police were made 
 acquainted with his figure, appearance, manners, etc., and in 
 every city and town their subordinates were keenly on the 
 look-out. One of the Elsinore inspectors, it is asserted, first 
 discovered the track of the fugitive. Learning that Edward 
 Smith was the incog, which the distinguished tourist had as- 
 sumed, the official arranged his course of observation and at 
 last traced the progress of the very name. Thereupon he 
 proceeded to Helsingfors, on the Swedish side of the Sound, 
 and obtained the assistance of the local police. In an hotel, 
 enjoying the luxuries of a guest, was consequently found the 
 fugitive. He stoutly denied, however, that his name was 
 Eobson, and disavowed all knowledge of any such a person. 
 The officer was at first somewhat disconcerted at the calm and 
 apparently innocent way in which Eobson asserted the injury 
 which was being done him ; but happening to see on a chair in 
 the room a shirt with the initials "W. J. E., the police-officer 
 felt sure of his prey, and apprehended him. He was taken to 
 Copenhagen, where, on the 7th of October, 1856, Daniel 
 Coppcn, an English serjeant of police, took possession of him 
 as a British prisoner. 
 
 Eobson now felt that further subterfuge was useless, arid
 
 410 PACTS, FAILTJEES, AXD F3AUDE. 
 
 on Coppen telling Mm the charge against him, he replied, 
 " Tes, I know ; I am very sorry for what I have done, and I 
 must suffer the law." Cpppen then asked him if he was will- 
 ing to go back, to which Eobson, at once helplessly re- 
 signing himself to his fate, replied, "Tes, I shall be glad to 
 get back." On their passage, Coppen said to him, with the 
 semi-official inquisitiveness of a police inspector. "I'm. told 
 you've spent as much as 20,000 of the Company's money." 
 " ]S"o," replied the now unresisting felon in the hands of jus- 
 tice, " not so much not more than 10,000." * 
 
 After preliminary examinations at the police court, Eobson 
 was placed at the bar of the Central Criminal Court, before 
 the Lord Chief Baron and Mr. Justice Erie, on the 30th of 
 October, 1856. There were eight indictments against him. 
 By two of these he was charged with larceny, as a servant, in. 
 stealing a number of valuable securities, called shares of the 
 Crystal Palace Company ; and he was likewise charged with 
 six separate acts of forgery in reference to the transfer of the 
 said shares. The prisoner, who appeared very little affected 
 by his position, listened attentively to the indictments, and 
 pleaded " Not guilty " to the whole of them. Mr. Giffard, 
 Eobson's counsel, then made an application for a postpone- 
 ment of the trial till the following session, as he was unpre- 
 pared for the exact charges thus brought against his client. 
 After some argument, Mr. Ballantine, for the prosecution, 
 agreed to allow the trial to stand over for a day or two if the 
 Lord Chief Baron would consent. His Lordship, however, 
 said that the application must be postponed for that day at 
 least. Mr. Griffard accordingly renewed the application on the 
 following day. Mr. Ballantine opposed it, and Mr. Justice 
 Erie, after conference with Baron Martin, said the Court was 
 of opinion that the application should be refused. After some 
 
 * It would appear, from the result of the official inquiry, that the 
 nominal amount was, as before stated, 27,000.
 
 FACTS, FAILUBES, AND FRAUDS. 411 
 
 farther conversation, it was arraugcd that the trial should take 
 place on the following day. 
 
 ordingly, on Saturday, Is ovoniber 1, 1856, the trial was 
 proceeded with. The Court was crowded, and the prisoner 
 took his stand at the bar with a confident bearing. Mr. Ser- 
 liallautine appeared specially, with Mr. Bodkin and Mr. 
 Hawkins, to conduct the prosecution ; Mr. Giffard and Mr. !\ 
 H. Lewis were the counsel for the defence. Mr. Giffard inti- 
 mated that the prisoner was desirous to retract the plea of not 
 guilty upon three of the indictments, which charged the offence 
 of la: :. servant, and to plead guilty to those charges. 
 
 On the clerk of the arraigns asking the prisoner if this was so, 
 he replied, "Yes, I plead guilty to those charges." The 
 counsel for the prosecution then held a short conference, and 
 Mr. Ballantine directed that the prisoner should be arraigned 
 upon one of the charges of forgery. The prisoner was accord- 
 ingly given in charge to the jury upon an indictment which 
 alleged that he had jecroneously forged a transfer of a number 
 of shares in the Crystal Palace Company with intent to de- 
 fraud Henry Johnson. He was also charged with uttering the 
 ument, knowing it to be forged. 
 
 Mr. Ballantine then opened the case for the prosecution, 
 and slated the facts as they have previously been given, pre- 
 .rily speaking of Kobson ns "a young man of great in- 
 telligence, and considerable powers of mind, and possessed of 
 an education very much beyond the rank of life to which ho 
 originally belonged." In support of his statements, the 
 learned counsel called Mr. G. S. Clement, a stockbroker, who 
 deposed to selling 100 Crystal Palace shares, on behalf of the 
 prisoner, to a Mr. Joseph Lowe, and another person. The 
 transfer purported to convey these shares from Mr. Henry 
 Johnson. This gentleman was subsequently called, and de- 
 1 that the signature " Henry Johnson " was a forgery. 
 
 Mr. G. Fasson, the treasurer and registrar of the Crystal
 
 412 TACTS, FAII/UBES, AND FBATJDS. 
 
 Palace Company, deposed to the prisoner having charge of all 
 the books and papers belonging to that department ; to certain 
 certificates being missed ; to the statements of the prisoner, 
 and their going to Kilburn, from whence he absconded ; to the 
 signature " Henry Johnson " being in the handwriting of the 
 prisoner ; and to the fact of Mr. Johnson not being a share- 
 holder. 
 
 Mr. Giffard, for the prisoner, endeavoured to show that 
 Johnson had borrowed money of Eobson ; that the former 
 gave the latter liberty to use his (Johnson's) name instead of 
 his own, in the transfer of shares, as a clerk would not be al- 
 lowed to deal in the shares of the company ; and that conse- 
 quently the prisoner was not guilty of forgery, having John- 
 son's authority to sign the transfer in his name. 
 
 The learned Judge, in summing-up, said that if the jury 
 believed that Johnson had not signed the transfer, or given 
 the prisoner authority to sign it for him, the offence of forgery 
 would be proved. It was entirely a question of belief or non- 
 belief of the witnesses, Mr. Fasson, Mr. Grove, and Mr. 
 Johnson. 
 
 After a few minutes' consultation, the jury returned a 
 verdict of Guilty. 
 
 During the exciting interval while the jury were consulting, 
 the prisoner drew his breath painfully, and when the fatal 
 word " Guilty " was pronounced, he turned very pale ; but he 
 soon recovered self-possession. 
 
 Mr. Serjeant Ballantine stated that there was another in- 
 dictment for the forgery of a dividend warrant. Mention had 
 been made of 10,000 as being the amount of the loss sus- 
 tained through the prisoner. That amount might have been 
 exceeded, although not much. 
 
 Mr. Justice Erie giving it as his opinion that the character 
 of this charge did not greatly differ from that already disposed 
 of, Mr. Ballantine said he would not proceed with it.
 
 FACTS, FAILURES, AND FRAUDS. 413 
 
 Mr. Justice Erie then passed sentence, observing that the 
 prisoner had evidently practised crime for a considerable pe- 
 riod, obtaining thereby very large sums of money. " It is my 
 ' continued his Lordship, " to give warning, by the sen- 
 tence passed upon you, that an apparent course of prosperity 
 derived from crime in reality leads to misery and destruction. 
 I order that for the forgery of which you have been convicted, 
 you be transported for twenty years ; and with respect to the 
 larceny of which you have pleaded guilty, I pass upon you the 
 sentence of fourteen years' transportation, concurrently with 
 the other sentence." 
 
 The prisoner, who had manifested great coolness and self- 
 possession during the trial, turned his head half aside, and 
 appeared to be writing while the judge was addressing him. 
 His countenance changed a little when he heard the sentence, 
 but his features quickly assumed a defiant expression, and he 
 walked from the dock with a brisk and firm step. 
 
 The career of Eobson contains ample materials " to point 
 a moral or adorn a tale." His case, however, differs from 
 many others in no important particular. Without any honest 
 industry of mind or body, he early gave himself up to habits 
 of idleness and dissipation. "With talents that might have 
 adorned any station, he chose to waste them in the feverish 
 and wearing excitement of a gay, thoughtless life. Eager in 
 the pursuit of pleasure, he became reckless as to the means of 
 gratifying it; and that he might pursue the short life of 
 a rake, he sacrificed wife and home ; brought disgrace upon 
 his name ; threw from himself the power of ever again enjoying 
 those very pleasures he loved so dearly ; and consigned him- 
 self, at the early age of thirty -five, to what has not been in- 
 aptly designated a living tomb.
 
 414 FACTS, FAILURES, A1TO FKAUDS. 
 
 EEPOET OF THE DIEECTOES OF THE CEYSTAL PALACE 
 COMPANY ON THE EOBSON FEAUD3. 
 
 "TO THE SHABEHOLDEBS OF THE CETSTAL PALACE COMPACT. 
 
 " Tlie shareholders are doubtless aware that, after the discovery of the 
 frauds perpetrated on the company by William James Bobson, lately em- 
 ployed in the Eegistration and Transfer Offices, the directors lost no time 
 in requesting Messrs. Quilter, Ball, and Co., the accountants, to undertake 
 a minute investigation into the state of the share registers, as well as into 
 the nature and amount of the forgeries and other frauds committed 
 against the company. The general results of this investigation are con- 
 tained in the annexed letter from those gentlemen, and in calling the 
 attention of the shareholders to this communication, the directors cannot 
 but express their deep regret at the extent of the frauds which it dis- 
 closes. 
 
 " The directors have, however, taken the best measures in their power 
 to prevent a recurrence of any such practices, and they are, with the 
 assistance of Messrs. Quilter, Ball, and Co., making a further searching 
 inquiry into all the circumstances attending the past transactions, the 
 result of which will be communicated to the shareholders, it being the wish 
 of the directors that these matters should undergo the fullest investi- 
 gation. 
 
 " It has been already intimated by the directors, in reply to a reso- 
 lution of the Committee of the Stock Exchange, that they considered it 
 incumbent on the company to admit as binding on it, all share transactions 
 which had been actually registered in its books, or which had been duly 
 acknowledged as registered by its proper officers. By the adoption of this 
 course, it appears from the annexed letter, that the result of the frauds is 
 to add the sums of 10,996 in respect of preference shares, and 16.890 in 
 respect of ordinary shores (taking the shares at their par value), to the 
 capital of the company. 
 
 Should it ultimately be determined by the proprietors to let these 
 amounts stand as a permanent addition to the capital of the company, this 
 may be done under the powers of the Act of Parliament obtained in the 
 last session, and the amount on which dividend must be paid will be pro- 
 portionately increased. 
 
 " The above amounts, however, must be taken subject to the final 
 report of Messrs. Quilter, Ball, and Co. on the completion of their 
 inquiry. 
 
 " In the meantime the directors think it desirable that the conversion 
 of the shares into stock (power for which is also given in the Act of last
 
 TACTS, FAILURES, A> T D THATTDS. 415 
 
 session) should be carried out as soon as possible ; and with this view 
 they propose : 
 
 " That tho original shares, and the A. and B. shares, shall be con- 
 verted into a general consolidated stock ; every holder of such shares to 
 be entitled to 5 stock in respect of each share. 
 
 " That the preference shares shall be converted into a preference stock, 
 every holder of such shares to be entitled to 5 preference stock in respect 
 of each preference share. 
 
 "Resolutions to the above effect will be submitted to the next general 
 meeting of shareholders. 
 
 " The directors take this opportunity of stating that they have made 
 the following arrangement with regard to dividends : 
 
 " That the dividend of two shillings per share on the original and A. 
 and 33. shares, declared at the hist ordinary meeting, and the dividend at 
 the rate of seven per cent, per annum on tho preference shares for the half- 
 year ending 31st December last, be made payable to the shareholders 
 standing on the registers of tho company on the 10th February next. That 
 for the purpose of testing the accuracy of the share register, all share- 
 holders be requested to send in forthwith a return of the particulars of 
 their shares in the enclosed form ; and dividend warrants will be issued on 
 the 2nd March to all shareholders who shall have so sent in the particulars 
 of their shares on or before the 10th February, should such shares on 
 examination prove to be correct. 
 
 "The share certiflcates will, as soon as practicable, bo called in for 
 cancelling, and a certificate of stock be issued in exchange. 
 
 " By order of the board, G. GEOVE, Secretary. 
 
 " Crystal Palace, 2Gth January, 1857." 
 
 REPORT OF MESSRS. QT7ILTER, BALL, AND CO. 
 
 " TO TEE DIBECTOB3 OF THE CKYSTAt PALACE COMPANY. 
 
 " Gentlemen, As requested by you, we now hand you a summary of the 
 results of the detailed and extensive investigation which, in pursuance of 
 your instructions, we have made into tho books, account?, vouchers, and 
 other documents of the Crystal Palace Company, with the view of ascer- 
 taining the method, character, and extent of tho frauds lately committed 
 against the company. 
 
 " 6CMMABY OF PBATTDS DISCLOSED BY THE HfTBSTIOATIOJf OF TUB 
 
 ACCOUNTS. 
 Preference shares : 
 
 In respect of scrip registered. *. d. 
 
 1st, 2nd, and 3rd call on shares i.ssui'<l in 
 
 excess of the 30,000 preference shnres . 2356
 
 416 
 
 TACTS, FAILTJKES, AND TEAUDS. 
 
 Brought forward . 
 Note. "^Vc find duly accounted for in the 
 books of the company, in respect of the 
 30,000 preference shares authorized, the 
 sum of 149,817, viz. : 
 
 Full amount of 1st call of 3 per share . 90,000 
 On account of the 2nd call of 1 per share . 29,987 
 And on account of the 3rd call of 1 per share 29,830 
 
 2356 
 
 Leaving to represent calls in arrear 
 
 149,817 
 183 
 
 Total receivable on 30,000 shares at 5 each 150,000 
 
 In respect of shares registered. 
 Fraudulent issues. 924 shares at 5 . 
 Fraudulent transfers. 804 shares at 5 . 
 
 Exclusive of fraudulent transfers of 392 shares 
 
 (not registered). 
 Ordinary shares : 
 Fraudulent transfers, registered, 3378 shares at 5 
 
 4,620 
 4,020 
 
 10,996 
 
 16,890 
 27,886 
 
 Exclusive of fraudulent transfers of 1002 shares (not registered). 
 
 " This sum of 27,886 is also exclusive of the sum of 915 6s. Wd. 
 misappropriated in respect of season ticket receipts since 30th April, 1856. 
 
 " It being in your contemplation to pay an immediate dividend to the 
 proprietors, it appears to us that the occasion furnishes a favourable oppor- 
 tunity for the exercise of the powers vested in the company to consolidate 
 the shares into a general capital stock, which measure would require the 
 calling in of the existing shares, and constitute a test of the possibility of 
 any frauds having been committed by the creation of fictitious transfer 
 certificates or acknowledgments beyond those included in the foregoing 
 summary. 
 
 " But there are considerations of a general character, and altogether 
 without reference to the recent frauds, which render the consolidation of 
 shares into stock an act of great value and importance j we allude to the 
 simplification and consequent increase of security and economy, which it 
 would have the effect of introducing into that department of the com- 
 pany's business. 
 
 " In making this preliminary communication, we desire to mention, 
 that although considerable time has now elapsed since we commenced this 
 investigation (September 20th), the interval has been fully occupied in the 
 varied work necessary to give effect to your instructions, that our examiua-
 
 FACTS, FAILUBES, AND FBAUDS. 417 
 
 tion should bo of the most searching character; and we have found it 
 impossible, in consequence of the complicated nature of the frauds, their 
 number, and the mass of documents necessary to be gone through in order 
 to detect them, to arrive at an earlier result. 
 
 " Wo are preparing to make a full report, setting forth in detail the 
 particulars of the frauds perpetrated. 
 
 " We remain, gentlemen, your most obedient servants, 
 
 " QUILTEB, BALL, AND Co. 
 "57, Coleman Street, 17th January, 1857." 
 
 In a subsequent report on the same subject, the directors remark . 
 " From the statement at the foot of the balance-sheet D it will be per- 
 ceived, that the total amount of cash abstracted by Robson, together with 
 the expenses incurred in his apprehension and conviction, and in the sub- 
 sequent investigation by Messrs. Quilter, Ball, and Co., amounts to about 
 4000 ; against which a sum of at least 1000 will be recoverable from his 
 estate. The balance of 3000 the directors propose should be written off 
 at once to the debit of revenue, thus leaving the capital account to bear 
 only the amount of shares actually created by Robson. From the final 
 report of Messrs. Quilter, Ball, and Co., on their investigation into the 
 extent and nature of these frauds an elaborate document which is in tho 
 hands of the directors the total amount of shares fraudulently issued 
 appears to have been 3446 ordinary shares at 5, representing 17,230, and 
 2161 preference shares, representing 10,793 ; thus showing, in the aggre- 
 gate, an increase of only 137 on the sum named in the preliminary report 
 of Messrs. Quilter, Ball, and Co. The mode in which Robson perpetrated 
 these frauds has had tho effect of already adding to tho ordinary and 
 preference share capital tho respective amounts above stated, and which 
 could not now be disposed of, except by buying back the shares and can- 
 celling the over-issue an operation for which the directors have neither 
 the means nor the requisite powers. Under these circumstances there 
 appears to bo no alternative, but to leave these amounts to stand against 
 the capital." 
 
 THE TRIAL AND CONVICTION OF W. J. ROBSON. 
 
 At the Central Criminal Court, on tho 30th October, 1856, William 
 James Robson, aged 35, the late transfer clerk in the offices of tho Crystal 
 Palace Company, was placed at tho bar, before Chief-Baron POLLOCK and 
 Mr. Justice EBLE, to plead to tho several indictments that had been pre- 
 ferred against him, and found by tho grand jury. 
 
 E
 
 418 FACTS, FAILUBES, AND FEAUDS. 
 
 The prisoner appeared very little affected by his position, and he listened 
 attentively while the indictments were being read OTer. 
 
 There were eight indictments against the prisoner. By two of them 
 he was charged with the offence of larceny, as a servant, in stealing a 
 number of valuable securities, called shares of the Crystal Palace Company, 
 and he was likewise charged with six separate acts of forgery in reference 
 to the transfer of the said shares. 
 
 The prisoner pleaded " Not guilty " to the whole of the charges, and 
 he was then removed from the bar. 
 
 Mr. GIFFAKD, who was instructed to defend the prisoner, addressing 
 the Court, said, that he had to apply for a postponement of the trial to the 
 next session. The prisoner had been only recently committed upon two 
 charges of larceny ; but it appeared that the prosecutors had, in addition 
 to these two charges, preferred no less than five indictments for forgery 
 against him. He had not received any information as to the nature of 
 these charges, neither had he any means of knowing the character of the 
 evidence that would be brought forward to support them, and, under these 
 circumstances, he thought the Court would only consider it reasonable 
 that the prisoner should be afforded an opportunity of knowing what the 
 charges were that were to be preferred against him, and which he would 
 be called upon to answer. 
 
 Mr. Serjeant BALLANTIXE, who appeared for the prosecution, said that 
 his learned friend had correctly stated that indictments for forgery had 
 been preferred against the prisoner, in addition to the charges of larceny, 
 and, in point of fact, six charges of that description, and not five, had been 
 preferred, and found by the grand jury. Mr. Eobson, however 
 The CHIEF BACON. Who is Mr. Eobson? 
 
 Serjeant BALLAXTI^E. Mr. Eobson is the prisoner; and he was 
 about to state that it was at his own request that he was committed upon 
 the two charges of larceny, but he was distinctly told at the time, that 
 although he only then stood committed upon these two charges, other 
 charges would be preferred against him. As to the application for a post- 
 ponement, he could only say that the principal difficulty was that one of 
 the witnesses, whose evidence was very material, was dangerously ill, and, 
 if the case was postponed, it was doubtful whether he might be able to 
 attend on the next occasion. 
 
 The CHIEF BARON said it appeared to him that the application could 
 not be entertained except upon affidavits embodying the facts. 
 
 Mr. GIFFAKD said that Mr. Lewis, the attorney for the prisoner, would 
 at once prepare an affidavit. 
 
 Serjeant BAIXANTIXE observed that it would be very advisable that the 
 matter should be disposed of on the present occasion, and he said he had 
 no objection that the case skould be postponed until Saturday, and the in-
 
 FACTS, FAILrKES, AXD FBAUDS. -119 
 
 terral would probably be quifo sufficient to put his learned friend in a posi- 
 tion to meet the charges of forgery. 
 
 M.-. GIFFAED said ho should certainly not be ready to meet the cases 
 of forgery by the day mentioned. 
 
 The application was then ordered to stand over for the preparation of 
 the affidavits. 
 
 On the 31st October, as soon as Mr. Justice ERLE and Mr. Baron 
 MAHTIX had taken their seats at the Central Criminal Court, William 
 James Robson was again placed at the bar, when 
 
 Mr. GIPFABD, who (with Mr. F. IT. Lewis) appeared in behalf of tho 
 prisoner, renewed the application he had made on the previous day for a 
 postponement of the trial to the next session. The learned counsel read 
 an affidavit made by Mr. J. Gr. Lewis, the attorney for the prisoner, in 
 which that gentleman stated that he was prepared to defend him upon two 
 charges of larceny, upon which alone he was originally committed, but 
 that, having heard rumours that other charges were to be preferred against 
 the prisoner, he a few days ago applied to Messrs. Johnson, Farquhar, and 
 Leech, the solicitors to the company, for information upon the subject, 
 and had received a reply only on Saturday last, in which these gentlemen 
 informed him that it was intended to prefer several charges of forgery, in 
 addition to those of larceny, and that twenty witnesses, and probably more, 
 would be called on behalf of the prosecution ; and the affidavit concluded 
 by stating, that under these circumstances, if the trial were had this ses- 
 sion, it was impossible for him to instruct counsel. The learned counsel 
 said that the Court would bear in mind that there had been no investiga- 
 tion before the magistrate in reference to these fresh cases, and that the 
 prisoner was entirely ignorant of the nature of tho evidence that was to be 
 adduced in support of them, and that no opportunity whatever had been 
 afforded to make any inquiries respecting the witnesses. So far as the 
 prisoner was concerned, he must of course remain in prison, but he had 
 no hesitation ia stating that if the trial was forced on at the present time 
 the prisoner would virtually be undefended. 
 
 Serjeant BAILAITTINE (who was specially retained, with Mr. Bodkin 
 and Mr. Hawkins, on behalf of the prosecution) said he should be at all 
 times unwilling to oppose such an application as this on the part of a per- 
 son in the unfortunate position of tho prisoner, and he should not do so on 
 the present occasion, if he did not feel it an imperative duty. The fact 
 was, that before the prisoner was committed, notice was given to him that 
 these charges would bo preferred against him, and all the witnesses, many 
 of whom came from different parts of the country, were now in attendance 
 at great expense to the company and to themselves, and it would be pro- 
 ductive of the greatest possible inconvenience and expense if the trial were
 
 420 TACTS, FAILURES, AND FRAUDS. 
 
 to be postponed. If the defendant really had any well-founded ground of 
 complaint, and there was any reason to suppose that he really had not been 
 afforded an opportunity of meeting the charges that were made against 
 him, it would, of course, be a very different thing ; but when the Court 
 was made aware of the real facts, and had heard a portion of two letters 
 written by the prisoner to the directors of the company before his com- 
 mittal, he felt satisfied they must be of opinion that the application for the 
 postponement was not really a bond fide application, but that the object 
 was to cause annoyance and inconvenience to the prosecutors. It was 
 hardly necessary for him to call the attention of the Court to the fact that 
 the prisoner was apprehended abroad and brought back to this country, 
 and that upon his examination before the magistrate, his learned friend 
 Mr. Hawkins, who conducted the prosecution, was quite prepared to go 
 into all the charges, and would have done so, but that the prisoner him- 
 self prayed that the matter might be got rid of as soon as possible, as he 
 intended to plead " Guilty," and in consequence of this only two cases of 
 larceny were gone into, sufficient to justify the magistrate in committing 
 the prisoner to this court for trial. The learned counsel then read a por- 
 tion of two letters written by the prisoner to the directors in one of which 
 he inquired whether, as he intended to plead " Guilty," it was not possible 
 to be charged with one large offence instead of a great many small ones, 
 and he also expressed his desire to make all the reparation in his power. 
 In another letter the prisoner again expressed his intention to plead guilty 
 to the charges preferred against him, and prayed that he might be com- 
 mitted for trial as soon as possible, in order that there might be a saving 
 of expense, and also that some anguish might be spared to the few who 
 still loved him by avoiding further publicity. Under these circumstances, 
 he felt assured that their Lordships would consider that he was neglecting 
 his duty if he did not oppose the application for a postponement, and that 
 no substantial injury would be created, so far as the defence of the prisoner 
 was concerned, by proceeding with the trial at this session. He was ready 
 to supply his friend with all the particulars of the fresh charges, and also 
 with the names of the witnesses, and this, it appeared to him, would be all 
 that was necessary for him to be enabled to conduct the defence of the 
 prisoner on the following day. The learned counsel concluded by stating 
 that no intimation was attempted to be given that there was a bond fide 
 defence to any of the charges, and that the real object sought to be attained 
 was to drive the prosecutors to consent to a plea of " guilty" being taken 
 upon the charges of larceny, when they considered it to be their duty to 
 prosecute the prisoner for a graver offence, and that this was the real ob- 
 ject of the application. 
 
 Mr. GIFFABD said, he could not deny that the prisoner bad expressed 
 his intention to plead guilty in the letters that had been alluded to, but it
 
 FACTS, FAILURES, AI7D FRAUDS. 421 
 
 was quite clear that he at that time only alluded to the charges of larceny, 
 and if these charges only hnd been persisted in he might probably have 
 pleaded guilty to them. The object of the prosecutors now appeared to be 
 to convict him of a much graver offence, and the prisoner had never said 
 that he would plead guilty to that offence. The only ground for resisting 
 the application appeared to be that it might cause some inconvenience to 
 the prosecutors ; but surely, when it was admitted that a great number of 
 witnesses were to be called, of the nature of whose evidence the prisoner 
 was entirely ignorant, it was not an unreasonable application on the part 
 of the prisoner that time should be allowed him to become acquainted with 
 the nature of the evidence that was to be produced against him, in order 
 that he might have an opportunity of preparing an answer to it. 
 
 Mr. Justice ERLE, after a short conference with Mr. Baron Martin, 
 said the Court was of opinion that the application should be refused. It 
 appeared to the Court that the prisoner had himself caused the inconveni- 
 ence of which he complained by desiring to be speedily committed for trial, 
 in order to avoid publicity ; and persons who brought charges into a court 
 of justice were as much entitled to consideration as those who were ac- 
 cused, and upon the whole the Court was of opinion that there would bo 
 no failure of justice by the trial being proceeded with on the present 
 occasion. 
 
 Mr. GIFFAED said that, as the Court had come to this determination, 
 he should wish, on behalf of the prisoner, that the trial should be at once 
 proceeded with. 
 
 Mr. Justice ERLE said it would be better that the trial should stand 
 over to the following day, as the learned counsel would thus be afforded an 
 opportunity of considering the evidence, and be better prepared to meet 
 the charges against his client. 
 
 Mr. GIFFAHD said he should be no better prepared on Saturday than 
 ho was at that time, and as the case was the first on the list for that day, 
 ho should, on behalf of the prisoner, press for it to bo taken at once. 
 
 Mr. Justice ERLE said that this was rather a confirmation to his mind 
 that there was no real ground for the application for the postponement of 
 the trial. 
 
 Mr. GriFFABD again pressed the right of the prisoner to bo tried at 
 once. 
 
 Mr. Justice ERLE said he should decline to take the case that day, and 
 the prisoner was then removed from the bar. 
 
 On the 1st November, William James llobson was placed at the bar, 
 before Mr. Justice ERLE, to take his trial upon the several indictrncuts for 
 larceny and forgery preferred against him. The prisoner appeared to have 
 entirely recovered from the depression ho exhibited at the police-
 
 422 TACTS, PAILUEES, ASD TBATJDS. 
 
 court, and, indeed, he exhibited an almost confident bearing during the 
 trial. 
 
 Mr. Serjeant Ballantine appeared, with Mr. Bodkin and Mr. Hawkins, 
 to conduct the prosecution. Mr. Giffard and Mr. F. H. Lewis were 
 counsel for the defence. 
 
 When the prisoner was placed at the bar, Mr. GIFFABD addressed his 
 Lordship, and intimated that he was desirous to retract his plea of ' >"ot 
 guilty," upon three of the indictments which charged the offence of larceny 
 as a servant, and to plead " Guilty" to those charges. 
 
 Mr. STEAIGHT, the Deputy Clerk of Arraigns, then inquired of the 
 prisoner whether he desired to plead guilty to the charges referred to, and 
 he replied, " Yes, I plead ' Guilty' to those charges." 
 
 The counsel for the prosecution then held a short conference together, 
 and Mr. Serjeant Ballantine directed that the prisoner should be arraigned 
 upon one of the charges of forgery. 
 
 The prisoner was accordingly given in charge to the jury, upon an 
 indictment which alleged that he had feloniously forged a transfer of a 
 number of shares in a certain public undertaking, incorporated by royal 
 charter, called the Crystal Palace Company, with intent to defraud Henry 
 Johnson. He was also charged with uttering the same instrument, know- 
 ing it to be forged. 
 
 Mr. Serjeant BAU-AXTUTE then opened the case for the prosecution. 
 He said that, although the prisoner at the bar had pleaded guilty to three 
 indictments involving the offence of having committed larceny upon the 
 property of his employers, it would be his duty to state the circumstances 
 connected with the present case, with the view of putting the jury and the 
 Court in possesion of the mode in which the frauds committed by the 
 prisoner at the bar were effected, and of allowing all the matters, so far as 
 they were within the knowledge of those who instructed him, to be fully and 
 perfectly known. He was desirous of doing so in order that no suspicion 
 might exist that aught had been kept back or concealed by the Crystal Palace 
 Company, which he had the honour to represent. He would briefly state 
 tha history of the particular transactions with which the prisoner was 
 charged, and he should also be obliged to refer to the general conduct of 
 the prisoner, but only so far as to make the charge against him intelligible. 
 It appeared that under the charter of incorporation of the Crystal Palace 
 Company, the directors were entitled to issue a certain number of shares* 
 and they were also enabled, under certain circumstances, to apply for power 
 to issue a certain number of other shares. The capital of the company was 
 declared and subscribed for the purpose of carrying out the objects of the 
 company, which were justly entitled to be considered as of a national 
 character, and worthy of admiration. The prisoner at the bar was, as they 
 would perceive, a very young man, of great intelligence, and considerable
 
 FACTS, FAILURES, AND FBATJDS. 
 
 powers of mind, and possessed of an education very much beyond the rank 
 of life to which he originally belonged. He was, ho believed, a clerk at a 
 salary of 1 a-week when he originally^ attracted the notice of the 
 managers of the Crystal Palace Company. He was one of those persons of 
 whom, lie was glad to say, there were many in this country men who, if 
 they were honest and straightforward in their conduct, might, with the 
 opportunities given them in this great commercial country, rise, as many 
 had risen, to the highest positions in society. The prisoner at the bar, 
 however, having those opportunities, and possessing those talents, and 
 having an entrance into life which most persons would have grasped at 
 with avidity, was not content with a fair course of honest industry, but 
 sought to obtain wealth speedily, and was betrayed from fraud to fraud, 
 until he now stood at the bar a felon, convicted on his own confession, 
 and on his trial for one of the gravest offences against property known to 
 the law. Shortly after the prisoner's connection with the Crystal Palace,' 
 he was promoted to a higher appointment, and his salary was raised to 
 100 a-year. He was subsequently promoted to a still higher situation, 
 and was placed under the immediate direction of Mr. Fasson, who was 
 looked to as the head of the department. Owing, however, to Mr. Fasson 
 at that time being in feeble health, and suffering a good deal, and finding 
 the prisoner to be a person of intelligence and ability, and believing him to 
 be also a man of honour and integrity, a great portion of the business 
 of the office, of which Mr. Fasson was at the head, was left in the 
 hands of the prisoner, and opportunities were afforded to him of 
 which he availed himself. The mode in which the shares of the com- 
 pany were issued from time to time was as follows : There was kept in 
 the office of which the prisoner was a clerk, a book containing a register 
 of the shareholders of the company, and every person possessing shares in 
 that company had a right to have his name placed on that register. If a 
 shareholder's name were not registered, it could only be by his own neglect. 
 This register was evidence to the company of the title of the persons upon 
 it, but to the public at large, and the parties themselves, the company were 
 compelled by their deed to issue certificates to show what the title was, 
 and these certificates, if possessed by others, would give an apparent title 
 in the eyes of the public to a transfer of shares. But, inasmuch as the 
 certificates given showed the names of the real persons on the register, no 
 parties who chose to make proper inquiry could by possibility be defrauded, 
 or could bo induced to part with their money without a proper transfer. 
 In all the business of life, if men were careless, and took things as a mere 
 matter of course, it was easy for designing persons to effect frauds, and 
 those who were defrauded in such cases were too apt to blame < 
 instead of blaming their own carelessness. That had been done to a 
 considerable extent with regard to these frauds, but when he explained to
 
 424 TACTS, FAILUBES, AND FIl 
 
 the jury the mode iu which these transfers had taken place, they would see 
 that every human means had been taken by the directors to prevent any 
 party being defrauded, and that no persons need have been defrauded, if they 
 had only taken those precautions which every man, before he parted with. 
 his money, was bound in justice to himself, and, he would add, to the 
 public at large, to take. The certificates, as he had explained, would show 
 the names of the persons appearing upon the register. Kow, it appeared 
 that the prisoner had these certificates in his possession for many people 
 possessing shares, and being really on the register, instead of taking their 
 own certificates, and locking them up in their strong box, allowed them to 
 remain in the custody of the company. Any person having these certi- 
 ficates in his possession was enabled to exhibit an apparent title to the 
 shares in the market. The prisoner knew, of course, the names of the 
 persons appearing on the register, but if he had used any of the names 
 placed on the register, anil had sold or transferred those shares, and the 
 parties had applied for dividends, the frauds would have been detected. 
 The prisoner adopted another mode of operation. Having the certifi- 
 cate ha went to the broker's and offered to transfer the shares. He 
 did not, however, use the name of any person appearing on the register, or 
 on the certificate, but used some other name in the present case it was 
 Johnson and offering to transfer the shares from Johnson to any pur- 
 chaser whom the broker might discover. If, when the application was 
 made, the broker had looked at the certificate, as it was his duty to have 
 done, he would have seen that Johnson had no power or right to transfer, 
 unless there had been a previous transfer to Johnson. He ought to have 
 said, " on this certificate Johnson's name does not appear ; there is some 
 other name before." But the truth was that the matter was done most 
 loosely, and it was assumed that some person might have transferred the 
 shares to Johnson, and that Johnson had a right to tranfer them to some 
 one else. The broker therefore, sold the shares, and accepted the transfer, 
 although Johnson, a relative of the prisoner, living at Birmingham, never 
 had a share in the Crystal Palace in his life, and his name was only used 
 for the purpose of effecting the fraud. The transfer was a forgery, and he 
 would call Johnson to prove that it was not signed by him, and that the 
 prisoner attested the signature of Johnson to the transfer, well knowing it 
 to be a forgery. A great deal of error had prevailed in the public mind on 
 the subject, but he had stated the nature of the precautions taken by the 
 company to prevent frauds, and he would call their attention to the fact, 
 that a man acting with common prudence could not have been defrauded by 
 a transaction of this kind. In order that the nature of the transactions 
 might be fully known, and the amount of the prisoner's guilt fully under- 
 stood, he had, with the entire concurrence of his learned friends, and at 
 the desire of the company which he represented, felt it to be his duty to
 
 FACTS, FAILURES, AND FBAt'DS. 425 
 
 place the whole facts of the case before the jury. He need not say that 
 he was entirely careless of the amount of punishment which the Court 
 might award, but he had a strong conviction that all matters of this kind 
 ought to be fully and entirely known. It was for the benefit of all persons 
 connected with great transactions like the Crystal Palace, that all the 
 fscts connected with offences like these should be fully known. It was 
 the wish of the company that everything in which they had any dealings 
 should be fully inquired into, and that the public should know that, 
 although the company had been robbed to a great extent, they had endea- 
 voured by every means in their power to prevent that robbery from taking 
 place, or the public from being injured by it. 
 
 Mr. G. S. Clement deposed that he was a stockbroker, and that he had 
 been for some time acquainted with the prisoner, and had been in the habit 
 of dealing for him on the Stock Exchange. He remembered being directed 
 by the prisoner to sell 100 shares in the Crystal Palace Company in the 
 month of January last, and witness sold these shares in the market. 50 of 
 them were sold to a 11 r. Joseph Lowe, and 50 to another person, and 
 witness received altogether the sum of 295 for the shares, which sum he 
 handed to the prisoner. The transfer now produced relates to the 50 
 shares that were sold to Mr. Lowe. [The transfer was put in. It pur- 
 ported to convey the shares from Henry Johnson to Mr. Lowe, and the 
 signature of Henry Johnson was attested by the prisoner, and a person 
 named Henry Robinson.] The prisoner either brought the transfer him- 
 self, or sent it in the state in which it now appeared ; and he had no doubt 
 that the signature " William James Robson" was the prisoner's hand- 
 writing. He had no doubt that he received the transfer before he paid the 
 purchase-money for the shares, and in the ordinary course he handed over 
 the transfer to the broker who represented the purchaser of the shares. 
 
 Mr. G. Fasson deposed that he was the treasurer and registrar of the 
 Crystal Palace Company. That company was incorporated by royal 
 charter in the month of January, 1852. 
 
 The charter of the company was put in. 
 
 Examination continued. The prisoner came into the service of the 
 company in the beginning of the year 1853, and he continued in their 
 sen-ice until the 17th of September last. He was appointed chief clerk in 
 the transfer department in the month of June, 1854, at a salary of 150 
 a-year. A book was kept by the company which contained a list of the 
 shareholders and of all the transfers that were made of the shares, and the 
 company preserved all the transfers. The prisoner had the charge of all 
 the books and papers belonging to this department. It was the ordinary 
 course to issue a certificate of proprietorship to every owner of shares ; but 
 it frequently happened that the owner of shares did not apply for these 
 certificates, and consequently they remained iu the possession of the com*
 
 426 TACTS, FAILUEES, AND FBATIDS. 
 
 pany, and the prisoner would have access to all such certificates. In con- 
 sequence of something that had previously come to witness's knowledge, he 
 on the 17th of September had a communication with the prisoner in refer- 
 ence to some certificates that were missing, and he admitted that there 
 had been an irregularity, but said that the certificates were at his own 
 house at Kilburn ; and he proposed that witness should accompany him 
 there to obtain them. This conversation took place in witness's private 
 rooms at the palace, and he believed that Mr. Grove, the secretary, was 
 present. "Witness consented to accompany the prisoner to his house, and 
 they proceeded there together. After they had arrived the prisoner came 
 in and out of the room where witness was two or three times, and appeared 
 to be putting papers together, and the last time he left he did not return. 
 
 Serjeant BALLANTIKE. And I believe you never saw the prisoner 
 again until he was in custody at Lambeth Police Court, two or three 
 weeks ago ? 
 
 Witness. I did not. The witness then proceeded to say that the 
 signature " Henry Johnson" to the transfer that had been produced was in 
 the handwriting of the prisoner, and the signature "William James 
 Robson" was also in his handwriting. There was no such person as 
 Henry Johnson registered in the books of the company as the proprietor 
 of the particular shares sold by the prisoner, but a person of that name 
 was the registered proprietor of other shares in the company. The pri- 
 soner, in the ordinary course of his duty, ought to have seen that all the 
 transfers and the names of the proprietors of shares were properly entered 
 in the books of the company. 
 
 Mr. GIFTARD put some questions to this witness, but nothing whatever 
 material was elicited. 
 
 Mr. H. Johnson deposed that he was a contractor and builder, residing 
 at Birmingham, and the prisoner was his brother-in-law. He knew of no 
 other person of his name at Birmingham who carried on the same busi- 
 ness. The witness then looked at the signature Henry Johnson to the 
 transfer, and declared it to be a forgery. In answer to a question put by 
 Mr. GIFFAED, the witness said that he was quite sure that he had on no 
 occasion had any conversation with the prisoner relating to shares in the 
 Crystal Palace Company, or ever consented to allow the prisoner to use 
 his name in any manner in reference to the sale or purchase of such 
 shares. 
 
 Mr. G. Grove deposed that he was the secretary to the Crystal Palace 
 Company, and he was present when some papers belonging to the prisoner 
 were found in his office. He also stated that he had no doubt that both 
 the signatures " Henry Johnson" and " William James Eobson" were the 
 handwriting of the prisoner. 
 
 Daniel Coppen, a sergeant of police, deposed that he apprehended the
 
 FACTS, FAILURES, A>*D FBAUDS. -i'J7 
 
 prisoner at Copenhagen on the 7th of October. IIo told him the charge 
 against him, and ho replied, " I know ; I am very sorry for what I hare 
 done, and I must suffer the law." Witness asked him if he was willing to 
 go back to England with him, and he said, " Yes, I shall bo glad to get 
 back." On their journey home he told the prisoner that he had been in- 
 formed that he had spent as much as 20,000 worth of the property of the 
 company, and he replied that he had not spent so much not more than 
 10,000. 
 
 Mr. Fasson was then recalled, and he stated, in answer to a question 
 put by Mr. Serjeant BALLANTINE, that according to his belief the figures 
 in the transfer, as well as the signatures, were the handwriting of the 
 prisoner. 
 
 Mr. Serjeant BALLANTDTE then proposed that the transfer should be 
 formally read. 
 
 Mr. GIFFARD took some formal objections to the instrument, but they 
 were at once overruled, and the transfer, which was of the nature above 
 stated, was then read by Mr. Straight. 
 
 Mr. GIFFARD, who, during the interval, had received a written com- 
 munication from the prisoner, applied to the Court to be permitted to put 
 a few more questions to Mr. Johnson. He said that his Lordship was 
 aware that he was but very imperfectly instructed, and the prisoner was 
 very anxious that he should further examine the witness. 
 
 Mr. Justice ERLE said that the learned counsel was at liberty to again 
 examine the witness if ho thought proper to do so. 
 
 Mr. Johnson was accordingly recalled, and Mr. GIFFARD again asked 
 him if the prisoner had not requested him to allow him to use his name as 
 the proprietor of shares on account of his not liking his own to appear on 
 the Stock Exchange, and ho declared that he had never done so, and he 
 said that ho did not remember ever having any conversation with the 
 prisoner upon the subject of shares. In answer to further questions, the 
 i said that he had borrowed as much as 700 or 800, and upon 
 one occasion he lent him 100 for the purpoeo of paying wages. He 
 denied, however, that upon this occasion tho prisoner told him that he 
 should sell some shares in his name to reimburse himself the money he 
 had advanced. Tho witness also swore that he was not aware till the 
 present time that his name appeared on the register list of the company as 
 an owner of any shares. There appeared to bo some little hesitation in the 
 manner in which the witness answered those questions, but ho persisted in 
 declaring that there was no foundation for any of the suggestions that had 
 been mado on behalf of the prisoner. In answer to a question put by 
 Mr. Serjeant BALLANTIHE, the witness stated that ho had never claimed 
 any interest in the Crystal Palace Company'u shares. 
 
 This concluded the case for the prosecution.
 
 428 FACTS, FAILTTKES, AND FEATTDS. 
 
 Mr. GTFFABD then addressed the jury for the prisoner. He said he 
 was fully aware of the difficulties against -which he had to contend in de- 
 fending the prisoner at the bar. Although not strictly in evidence, his 
 learned friend had stated in opening his case, without objection from him, 
 that the prisoner had pleaded guilty to three indictments, charging him 
 with larceny of the property of the Crystal Palace Company, and it would 
 be absurd after that for him to take any formal objection to the statement, 
 although it was not in evidence. What he should ask of the jury was, 
 that they would try the case before them on the evidence only which had 
 been adduced. That the prisoner had been guilty of an offence against his 
 employers was not denied, and that he must receive the punishment of that 
 offence they all well knew; but the question was whether, for the purpose 
 of raising the character of the Crystal Palace Company on the Stock 
 Exchange, to which end a large portion of the remarks of his learned 
 friend appeared to be addressed, or for the purpose of enhancing the 
 punishment of the prisoner, the jury were to come hastily to the con- 
 clusion that he was guilty of the particular offence imputed to him, and to 
 which he had pleaded " Not guilty ?" There was no wish on the part of 
 the prisoner to make imputations against anybody. He had been guilty of 
 an offence, and was prepared to suffer the punishment for it. But let the 
 jury look at the conduct of Johnson in respect to this matter. He desired 
 to guard himself against wishing, in the slightest degree, to imply that 
 Johnson was cognizant of being mixed up in any charge of forgery or 
 fraud, or that even a shadow of blame rested upon him. He was the more 
 anxious that this should be understood, since Mr. Johnson seemed to think, 
 in answering his questions, that there was an intention to impute to him 
 that he was a party to a fraud. He had no instructions of that kind, and 
 he prayed the jury to understand that no suggestion of that kind had been 
 made on the part of the prisoner. But was it not reasonable to suppose 
 that, as Johnson was borrowing money of the prisoner, and as the prisoner 
 was in the service of the Crystal Palace Company and dealing in shares, 
 Johnson should have given the prisoner permission to use his name instead 
 of his own ? The request might have been made in order that the prisoner 
 might escape the detection which would have followed, if it were known 
 that a clerk of the company was dealing in the transfer of shares. They 
 had all lived long enough in the world to know, that the using of another 
 person's name in the transfer of shares was not an uncommon or unreason- 
 able thing. This young man, having opportunities and facilities given to 
 him, had no doubt misappropriated his employers' property, and even 
 stolen the shares of the company that were lying about his office. He had 
 lent Johnson 700, and was it not likely that he would apply to Johnson 
 for permission to use his name on the Stock Exchange ? If he had the 
 authority of Johnson to use his name, then he was not guilty of the offence
 
 FACTS, TAILUHES, AND FHA.UDS. 429 
 
 with which ho was charged. The jury must have observed Mr. Johnson's 
 hesitation. That ho did answer ultimately in the negative with decision 
 and firmness he admitted ; but if the jury had a reasonable doubt he asked 
 them to reject the other evidence, and to come to the conclusion that the 
 witness had given the prisoner the authority to sign the transfer in his 
 name, in which case they must acquit him of the charge in the indictment. 
 Mr. Justice EBLE proceeded to charge the jury. He said that the 
 prisoner, W. J. Robson, was indicted for the forgery of an instrument 
 called " a transfer of shares," and, in another count of the indictment, with 
 having forged " a deed of Henry Johnson." The deed purported that on 
 the consideration of 156, Henry Johnson transferred to Joseph Lowe 
 50 shares in the Crystal Palace Company, numbered from 145,052 to 
 145,101. The signature to that deed, where the name of the transferer 
 should be, was Henry Johnson. Opposite to that name were the seal and 
 signature of the attesting witness. The words in the instrument were, 
 " Signed, sealed, and delivered by the above-named Henry Johnson,' ' and 
 the signature was attested by " William James Robson, of No. 3, Adelaide 
 Place," whose signature was affixed as the attesting witness. According 
 to the evidence of Mr. Clement, it appeared that the prisoner applied to 
 him to sell 100 shares 50 in the present instrument, and 50 in another. 
 Acting upon these instructions, Mr. Clement went into the market, and 
 sold 100 shares, and then received from the prisoner the paper produced, 
 and another paper. Mr. Clement paid the prisoner 295, as the profit of 
 these instruments, which profit passed from Mr. Clement to the prisoner 
 at the bar. Now, was the instrument produced a forged instrument ? It 
 purported to be a transfer of " Henry Johnson, of Birmingham, contractor," ' 
 and Henry Johnson, contractor and builder of Birmingham, had been called, 
 and had sworn positively that the signature of " Henry Johnson " was not 
 his, or written by his authority. He also said there was no " Henry John- 
 son, of Birmingham, builder and contractor," but himself. The witness 
 swore most positively that he never had any shares in the Crystal Palace 
 Company, and that he never knew, until the transactions of that day in that 
 court were brought to his knowledge, that his name was entered on the 
 register of the Crystal Palace Company as having any interest therein. If 
 they believed Mr. Johnson, that he had never signed the deed in question, 
 or given the prisoner authority to sign his name for him, the offence would 
 be proved, and it would bo shown that the prisoner uttered this deed, and 
 received value for it as for a genuine instrument. But the prisoner's 
 counsel had contended, after a great deal of cross-examination of Mr. John- 
 son, that it was doubtful whether Johnson did not give the prisoner au- 
 thority to put his name to this instrument, and something had been said 
 about the hesitation or anxiety in Johnson's manner in giving his evidence. 
 That was a question entirely for the consideration of the jury. Johnson
 
 430 TACTS, FAILURES, AKD FEATJDS. 
 
 stood in the relation of a brother-in-law to the prisoner, and that might 
 explain a good deal of his anxiety without imputing to him an intention to 
 defraud, or to state that which was false. Johnson said that he had bor- 
 rowed 700 or 800 of the prisoner, and he believed that in 1854 he 
 borrowed 100 from him at the Telegraph Office in Cornhill, when he 
 wanted to make up some money to pay his wages. Mr. Johnson said this 
 was not so late as December, 1851, and the paper which the prisoner was 
 charged with having forged, was dated " February 2, 1855." Johnson 
 swore that on that occasion nothing passed about the prisoner's not using 
 his own name, and using instead the name of Johnson. He had not been, 
 able to form a very clear idea of the meaning of the words which the pri- 
 soner's counsel suggested the prisoner addressed to Johnson about his not 
 wishing to have his name on the Stock Exchange. If he (the learned 
 judge) wished to put a person in his name as trustee, and authorized that 
 person to sell property for him, that was a definite transaction. But the 
 matter in question was very different from this. Mr. Lowe had paid 156 
 for that piece of paper, and it was for them to inquire whether Johnson 
 had given the prisoner authority to execute any instrument such as this- 
 As Johnson, indeed, had no shares in the Crystal Palace Company, it was 
 idle for him to give the prisoner authority to execute a transfer of 50 non- 
 existing shares. If they believed Johnson, the instrument was a forgery. 
 Then there was the evidence of Mr. Fasson, who said he believed that the 
 signature of " W. J. Robson," as the attesting witness to the signature of 
 Johnson, was in the handwriting of the prisoner. Mr. Grove, the secretary 
 of the company, was of the same opinion, and stated that, in his belief, the 
 signature of " Henry Johnson " was also in the handwriting of the prisoner. 
 There was then the evidence that Mr. Fasson was at the head of the de- 
 partment, that the prisoner was principal clerk, and that he had control 
 and knowledge of these matters. The jury had also heard of his disap- 
 pearance at Kilburn, after leaving the room two or three times, and of his 
 apprehension at Copenhagen by the police officer. If they believed that 
 the signature " Henry Johnson " was a forgery, and that it was forged by 
 the prisoner, and that it was uttered by the prisoner, they would find him 
 guilty of uttering a forged instrument, knowing it to be a forged instru- 
 ment, as stated in the indictment. 
 
 After consulting for a few minutes, the jury returned a verdict of 
 Guilty. 
 
 Mr. Serjeant BALLAKTINE stated that there was another indictment 
 against the prisoner in connection with the forgery of a dividend warrant. 
 If his Lordship thought it desirable, he was ready to go on with that case, 
 which had been selected as one of a different class of frauds of which the 
 prisoner had been guilty. Mention had been made of a sum of 10,000, 
 as being the amount of the loss sustained through the frauds of the pri-
 
 FACTS, FAILURES, AND FHATTDS. 431 
 
 soner. It was difficult to state the exact sum, but that amount might 
 have b> 1, although not much. 
 
 Mr. Justice EBLE did not think the character of the other charge 
 against the prisoner was very different from that which had already been 
 disposed of. 
 
 Mr. BALLANTIXE said that, as there was no point reserved in the hist 
 case, he would not proceed with the other indictment. 
 
 Mr. Justice EELE then proceeded to pass sentence upon the prisoner. 
 He said William James Eobson, you stand convicted of the felony of 
 which you have been charged. The inquiry that has gone on upon the 
 present occasion has shown to me that you have practised crime for a con- 
 siderable period of time. You have practised it in breach of the trust 
 placed in you, and so as to throw doubt and uncertainty upon important 
 mercantile instruments, and you have obtained very large sums of money 
 by the course of crime you have pursued. It is my duty to give warning, 
 by the sentence passed upon you, that an apparent course of prosperity 
 derived from crime in reality leads to misery and destruction. I order that 
 for the forgery of which you have been convicted, you be transported for 
 twenty years ; and with respect to the larceny, of which you have pleaded 
 guilty, I pass upon you the sentence of fourteen years' transportation, con- 
 currently with the other sentence. 
 
 The prisoner, who had manifested great coolness and self-possession 
 during the trial, turned his head half aside, and appeared to be writing 
 while the judge was addressing him. His countenance changed a little 
 when he heard the sentence, but his features quickly assumed a defiant 
 expression, and he walked from the dock with a brisk and firm step. 
 
 Mr. EALLANTIXE subsequently made an application for the money that 
 was taken from the prisoner at the time of his apprehension to be handed 
 over to the assignees of the bankruptcy. 
 
 The learned JUDGE said he would make the order.
 
 432 
 
 TACTS, FAILUEES, AND FBAUDS. 
 
 CHAPTER IX. 
 
 THE GBEAT NOETHEBN BAILWAY FBATJDS AND 
 BY LEOPOLD BEDPATH. 
 
 The Specialties of Redpath's Case His apparent Honesty and Philan- 
 thropy Deep Hypocrisy in his Career of Crime His Early Entrance 
 into Life General Occupation and Tendency His First Progress and 
 Marriage Connection with the Peninsular and Oriental Steam Com- 
 pany His Separation from that Office Launches out into Business as 
 a Ship and Insurance Broker Fails and is made Bankrupt Even- 
 tually emerges into Active Life again, and obtains Employment in the 
 Transfer Department of the Great Northern Railway Company His 
 Duties and Attention to Business He succeeds Mr. Clark, the First 
 Registrar His Style of Living Taunted Success as a Speculator and 
 Dealer in Reversionary Interests His Original Forgeries Extended 
 Princely and Munificent Charity Patron of the Principal Benevolent 
 Institutions Excessive Kindness to Poor and Distressed Individuals 
 His supposed Wealth and Resources The Detection of Robson leads 
 to Suspicion Proposed Examination of Books, and his Refusal to 
 Entertain the Proposal Threatened Resignation and Ultimate Attempt 
 to Decamp Flight to Paris Return and Surrender to the Police 
 Second Bankruptcy Trial and Conviction. 
 
 ONE of the most extraordinary instances of successful swin- 
 dling, combined with a high moral reputation and a truly 
 benevolent career, is that of Leopold Eedpath. Never was 
 money obtained Avith more wicked subtlety; never was it 
 spent more charitably. The thief and desperate criminal \vero 
 so intertwined with the philanthropist, that his character pre- 
 sents an admirable study for the metaphysician. A greater 
 rogue, so far as robbery is concerned, it were difficult to find ; 
 nor a more amiable and polished benefactor to the poor and 
 the friendless. Whether this subtle hypocrite entertained the
 
 TACTS, rAILUHES, AND TEAUBS. 433 
 
 comfortable doctrine that it " is lawful to do evil that good 
 may come," does not appear ; but it is certain that he spent 
 in acts of high benevolence much of the money that he gained 
 by robbery. With equal readiness he forged a deed or wrote 
 a cheque for a charitable institution. Leopold Redpath was 
 at once a consummate hypocrite and a pharisaic swindler. 
 
 Tho earlier antecedents of Radpath's career present no 
 features of unusual interest, except that everything relating 
 to one who has achieved for himself such lasting ignominy is 
 worth noting. He received a fair education, and evinced good 
 taste in artistic matters, the latter subsequently displayed with 
 reckless extravagance. Ha possessed also sound information 
 on ordinary topics, and a good capacity for business. Having 
 no friends to push him onward in life, he had to struggle suc- 
 cessively with difficulties which fall to the common lot. At 
 one period he was engaged as a lawyer's clerk, at a very poor 
 salary it maybe presumed, for ho lived in dingy lodgings in 
 Cumberland Market, a locality certainly not highly favoured 
 by the aristocracy. Nor were his aspirations in regard to 
 marriage of a very high character, for ho sought for his wife a 
 young woman who was then living as companion to a lady. 
 Bedpath's appearance at this time was shabby; and as he 
 always had exhibited taste in dress, as in other matters, the 
 reason why he did not assume a faceable appearance was doubt- 
 less because he had not the means. 
 
 On the starting of the Peninsular and Oriental Steam 
 Navigation Company, Redpath secured tho position of clerk 
 in tho establishment. Hia salary here was a fair one, but not 
 adequate to Bedpath's now growing ambition. During this 
 engagement he acquired the confidence of the directors, and 
 obtained, partly through the influence of one of them, an in- 
 troduction to Mr. Fox, an upholsterer, of whom ho asked credit 
 for enough to furnish a house. In anticipation of his mar- 
 riage (with an estimable lady, whose name need not be mcn- 
 
 r F
 
 434 FACTS, EAILTJKE3, AND FEAUDS. 
 
 tioned in connection with her swindler husband), Eedpath had 
 taken a house in Dartmouth Terrace, a quiet substantial row 
 of houses on the high road from Deptford to Blackheath. 
 Being represented as an honourable young man of good pros- 
 pects in his situation, Mr. Fox supplied him with furniture to 
 the amount of some 500 a sufficient evidence of Eedpath' s 
 ambition, and of Mr. Fox's reliance on his honour. 
 
 Leaving the Peninsular and Oriental Company, Eedpath 
 struck out into a newfield onhis own account, and set up business 
 as an insurance broker in Lime Street, City. And now began 
 that career of spurious philanthropy and affected piety which 
 13 so remarkable a feature in his character. His house at 
 Blackheath soon became known as the residence of a gentle- 
 man, whose name might be reckoned on for addition to any 
 charitable subscription list. Highly moral in his external 
 character, affecting a veneration for religion which he never 
 felt, he was regarded as a model man. An ardent advocate of 
 every benevolent scheme which was set on foot, he became also 
 a willing supporter of it. There is reason to fear that none of 
 the charity which he bestowed was the offspring of genuine 
 philanthropy, far less of that pure and undefiled religion which 
 leads its possessor to visit the fatherless and the widow. His 
 charity was not of that kind which " vaunteth not itself, is not 
 puffed up." He became, it may rather be supposed, inordi- 
 nately fond of the applause of men. He was ambitious to be 
 talked of as a kind-hearted, benevolent, charitable gentleman, 
 whose hand, heart, and purse were ever open. 
 
 And all this time he was trading in philanthropy with the 
 capital of others. With an affable blandness of demeanour he 
 gave away the property of his creditors, for his career as an 
 insurance broker was a short one. Being more generous than 
 just, in less than three months he became a bankrupt, with 
 liabilities to the extent of 5000, and assets a mere nothing. 
 His furniture and effects at Dartmouth Terrace were then sold
 
 FACTS, FAILURES, ASD FBATJDS. 435 
 
 for the benefit of the creditors, and yielded in all only 2s. Gd. 
 in the pound. That the love of luxury was now getting firm 
 hold upon him, was shown by the nature of his debts. 
 Musical instruments, pictures, jewellery, and expensive 
 knicknacks were the new delights in which he had luxuriously 
 indulged. Bitter must have been Ecdpath's reflections, and 
 humbled must his pride have been, as the auctioneer's in- 
 evitable hammer cruelly struck down his suburban estab- 
 lishment, and swept away the luxuries and refinements of his 
 Lome. 
 
 But Eedpath was not the man to be crushed by an auc- 
 tioneer's hammer. At the age of about thirty-five he obtained 
 the appointment of clerk in the service of the Great Northern 
 Bail way Company. His first situation here was quite a sub- 
 ordinate one. There were formerly two lines of railway con- 
 necting London with the north, the direct Northern, and the 
 London and York. These two lines were managed by two 
 different boards of directors, each with its own secretary. The 
 two lines ultimately were amalgamated, and one of the two was 
 thrown out of his position. A gentleman named Clarke was 
 selected, but he was appointed as a registrar, an office then 
 newly created. Mr. Clarke had for his assistant Leopold Red- 
 path, erewhile insurance broker of Lime Street, City, and of 
 Dartmouth Terrace, Blackheath. 
 
 How soon after his appointment Eedpath entered on that 
 reckless path of crime which led him to ignominy and isola- 
 tion from his fellow-men, is not accurately known ; but it is 
 certain that he speedily resumed that luxurious style of living 
 which was the acme of his ambition. "When first employed in 
 the Great Northern Railway, he was living at No. 2, Park 
 Tillage, "West ; but this soon became too narrow for his am- 
 bitious desires, and he took a splendid mansion, No. 27, Ches- 
 ter Terrace, which was rented at 100 per year. 
 
 uiiwhilo, his principal, Mr. Clarke, had retired from his
 
 400 TACTS, r.VTLTJBES, A>*D 
 
 position as registrar, and Redpath reigned in his stead. The 
 directors did not place him there without reason. He had 
 already proved himself adequate to the situation, and had de- 
 voted himself to the duties of the department with assiduity. 
 
 The moment he had secured the control of the department, 
 he rushed forward desperately in his career of crime. His 
 previous frauds supposing that he had committed any were 
 very trivial to those he now practised. Looking back upon 
 the trickery of this consummate rogue, it seems scarcely credi- 
 ble that his crimes should have been so easily perpetrated, and 
 should have remained so long undiscovered. But Redpath 
 was a clever swindler, and the directors were unsuspecting. 
 His facilities for the commission of robbery were great, and he 
 used them with diabolical skill. 
 
 Redpath had devoted his intellectual power, of which he 
 had no inconsiderable share, to acquiring a knowledge of the 
 whole of the Great Northern Company's affairs, so far as he 
 could make them available for his own nefarious ends. Several 
 kinds of stock had been created, bearing different rates of 
 dividend, and very intricate calculation was often required to 
 decide the rates of dividend and interest to which the several 
 certificates were entitled ; but this clever swindler knew all the 
 niceties of the department, as well as its leading business. He 
 knew the name of every shareholder in the company, the stock 
 which each held, and the amount of dividend due or coming 
 due. To use a common phrase, he had the whole at his fingers' 
 ends, and deftly did he ply his fingers for his own advance- 
 ment ; he cared not for whose ruin. 
 
 The mode in which the extensive forgeries he committed 
 was this. It was subsequently shown, for instance, that a 
 deed, No. 3623, was forged, the amount represented being 
 312 10s. This deed would have entitled a Mr. John Morris, 
 of Manningtree, to transfer his interest in that stock, had he 
 gone with it to a stockbroker. The person purporting to attest
 
 PACTS, FAILURES, AXD FEATJDS. 1:17 
 
 was a gentleman named Shaw, represented by the deed to 
 belong to the same neighbourhood. The transfer was made 
 by Eedpath to his own name, and sold through his own stock- 
 broker, the forger receiving the amount represented. On the 
 trial, Mr. Henry Atterbury, a clerk in the Great Northern 
 Railway Company, thus testified to the system of fraud re- 
 ferred to : " I produce a transfer, dated May 7, 1852, the 
 number of which is 3623, and it purports to be a transfer from 
 John Morris to "William Henry Hammond of 312 10s. of 
 the B stock of the company. In this entry the names of 
 Morris, the transferer, and that of Timothy Shaw, the attesting 
 witness, are, I believe, in the handwriting of the prisoner 
 Eedpath. I also produce the register book, in which there is 
 an entry of the transfer in the prisoner's handwriting, the 
 letters 0. B. being annexed to it to denote that it is brought 
 forward from an old book of the company. On examining the 
 old book to trace this entry, I find there no account whatever 
 in the name of John Morris, as represented in the newer book. 
 The register also contains the following other entries of trans- 
 fers, viz., No. 4340, B stock, 1250; 4341, A stock, 3750; 
 4312. A stock, 1625 ; 4343, B stock, 1625 ; and No. 5870, 
 A stock, 1750. This stock is placed to the credit of Morris, 
 Morris's name being in all the entries written in the hand- 
 writing of Eedpath. On the credit side of Morris's account 
 there is 5500 of A stock, and 4500 of B stock, making 
 together 10,000." The witness then detailed other entries 
 in which the names of Morris and of the subscribing witness 
 were in the prisoner's handwriting ; the result of his evidence 
 being to show that the total amount of the fraudulent entries 
 upon both sides of Morris's account alone, was 17,600. 
 
 But Eedpath was quite a connoisseur in the art of forgery, 
 and had more methods than one. Another mode of robbery 
 was elicited in evidence on the trial. Eedpath purchased in 
 April, 1853, two separate amounts of stock of 500 and 250
 
 438 TACTS, FAILURES, AXD mATJDS. 
 
 respectively. The sellers duly transferred them to him, and 
 they were entered to his credit iu the register. It should be 
 observed, that when a transfer is made and registered, the 
 buyer receives a certificate, termed a coupon, for the amount 
 of stock transferred. This coupon is signed by the transfer 
 clerk ; it is then supposed to be compared with the original 
 transfer, and with the entry in the register, by the secretary, 
 who countersigns it ; and it is then delivered to the purchaser 
 of the stock, as his evidence of title. In Eedpath's case it was 
 found that he had placed a figure of 1 before each of the above- 
 named amounts, converting them into 1500 and 1250, re- 
 spectively, thus creating 2000 of A stock in his own favour. 
 Fifty-two transfers were thus made into his own name, and ten 
 out of it. Now although he had falsified the register, the coupon 
 would not tally with it, and as the coupon must accompany 
 the transfer in selling the stock, that had also to be altered. 
 How far the management of the company with which the forger 
 was connected facilitated this fraud, may be judged from the 
 fact, that the sum the coupon represents was nowhere stated 
 in vrords on the face of it, nor was the amount even in print, 
 but was filled in with the pen ; so that the swindling clerk 
 merely had to place a figure of 1, or any other number that he 
 was bold enough to venture upon, before the amount stated in 
 each case, and the forgery was complete. 
 
 Kedpath now saw a perfect Golconda before him, that re- 
 quired very little labour, and, in some respects, very little skill 
 to work ; and he worked it accordingly to a very pretty tune ; 
 and all this while the directors, though they found themselves 
 paying dividends which they could not account for, appeared 
 to entertain no suspicion of the fact that they were daily being 
 robbed to a large extent. Nay, so far duped were they, that 
 some three years after Eedpath had commenced his swindling, 
 the following document was actually placed upon record :
 
 TACTS, FAin-ttLS, A^ FBAUDS. 139 
 
 ountant's Department, Aug. 7, 1353. 
 
 TO THE CHATRMAS AKD IHBECTOBS OP THE CHEAT KOBTHEHN BAILWAY 
 
 COMPANY. 
 
 " Gentlemen, The accounts and books in every department continue 
 to be so satisfactorily kept, that we have simply to express our entire ap- 
 proval of them, and to present them to you for the information of the share- 
 holders, with our usual certificate of their correctness. "Wo havo tho 
 honour, etc. 
 
 (Signed) JOH^CHAPMAW, j Auditor9 
 
 A very suggestive document this, viewed in the startling 
 light thrown upon it when the Eedpath frauds burst upon the 
 astonished shareholders ! 
 
 How the thousands thus easily acquired were disbursed, is 
 a very interesting study. It was not squandered in giddy 
 dissipation. Eedpath kept no mistress ; he was never known 
 to gamble ; the gentry of the turf found no easy prey in him. 
 No, he was a respectable man a highly respectable man ; like 
 Brutus, he was an honourable man. The world regarded him 
 as a bland, easy, affable Christian gentleman, as remarkable for 
 his wealth and good taste as he was for his benevolence . 
 
 Nor was this character apparently undeserved. It must 
 be confessed, that to his other qualifications Eedpath added 
 the tact of the consummate actor. He thoroughly deceived 
 the world ; nay, his life was so far an acted lie, that it may well 
 be believed that he even deceived himself. It has been said of 
 him, " Never was a character so well fed and kept in good 
 condition by acts of tho most munificent and well-timed libe- 
 rality, generosity, and charity. Cheat as he was, unscrupulous 
 and profligate adventurer, he lived just as a lawful possessor of 
 all the wealth he stole might have lived and acted, if, in addi- 
 tion to a princely fortune, he had possessed a princely nature. 
 From his hands flowed succour to tho orphan, bounty to the 
 struggling, patronage to the arts, and aid to every charitable 
 institution. He was munificent in donations to civic feasts,
 
 440 FACTS, FAILTTKES, AND FRAUDS. 
 
 gorgeous under his own roof, sumptuous in hospitality, as free 
 with cheques as other men with compliments. He could out- 
 bid an emperor in his own capital, and snatch from his own 
 Art Exhibition one of its brightest gems. Yet there was 
 nothing gross or sensual in his life. He did not expend the 
 proceeds of his frauds on women and wine and horses, the 
 three constituents of a swindler's paradise. Horses he had 
 and wine-cellars, but they were not main objects with him ; he 
 used them as if he used them not ; as if he were to the manner 
 born, as if they were but rays of the glorious luminary of his 
 fortune." 
 
 The facts of Redpath's later career bear out this estimate 
 of the man. His house in Chester Terrace was magnificently 
 furnished with everything that a luxurious ambition in middle 
 life could desire, and with all that a refined taste could suggest. 
 Here he set up his carriage, keeping a groom as well as a 
 coachman. The arrangements of his household were on a 
 liberal scale the liberality that disburses other people's money. 
 A butler superintended his cellar of choice wines ; a footman 
 awaited his lightest wants ; and five or six female domestics 
 shared in the splendour of his residence. 
 
 Of course a home of this character was often filled with 
 luxurious company. Parties were frequent in Chester Terrace ; 
 his dinners were unimpeachable ; his wines such as an auc- 
 tioneer might dilate on with rapture. No expense was spared 
 to furnish the table with costly luxuries. Whether peas were 
 Is. or 10s. a quart was a matter of indifference ; nor did it 
 matter whether pine-apples were half-a-crown or a guinea. 
 Redpath was, of course, the presiding genius of these festive 
 scenes the easy, affable host, and the bland, courteous gentle- 
 man. There was nothing fast or vulgar in all this ; good taste 
 presided over ifc all, and there wanted but one element 
 honesty to make his mode of living perfectly legitimate. 
 
 In personal appearance and dress, Redpath was governed by
 
 FACTS, FAILUBES, AND FRAUDS. 441 
 
 the same good taste, but mingled with no little vanity. As 
 an instance of the latter weakness, it may be mentioned that 
 every morning he had his hair dressed by a perruquier from 
 Strathcarn's, in Princes Street, Hanover Square. Either the 
 head of the firm or some assistant dashed up to Chester 
 Terrace in a cab, which was kept waiting an hour or so at the 
 door while the tonsor was operating upon Eedpath's not very 
 luxuriant locks. 
 
 But the pleasures of the table and of refined company were 
 not the only delights in which Eedpath indulged. With him 
 charity was an amusement, a passion, and a source of patronage 
 which brought him flattery and fair friends. Persevering 
 secretaries found in him a pliant gentleman, who was ever 
 ready to place his name upon the subscription list for a new 
 church, a fancy bazaar for a school, or a fund for an orphan or 
 widow. He was, amongst other positions, a governor and one 
 of the managing committee or almoners of Christ's Hospital, 
 and a governor of the St. Ann's Society, an admirable insti- 
 tution for the children of those once in prosperity. As an 
 incidental proof of the estimation in which he was held, it may 
 be mentioned that he was not only a governor of St. Ann's 
 Society, but an auditor of the accounts. His name was also 
 enrolled on the list of any casual subscription which was 
 started for benevolent purposes. On the Patriotic Fund, for 
 instance, was to be found in bold relief the name of Leopold 
 Eedpath, Esq. 
 
 There was, doubtless, much ostentation in all this ; for to 
 believe that a man who was daily engaged in craftily forging 
 transfer deeds for the sake of wealth, could be constantly actu- 
 ated by the generous feeling of true charity, is to believe a 
 sham. Eedpath's was spurious charity, a hollow mockery of 
 benevolence ; and yet it is hard to suspect that the genuine 
 warmth of true benevolence did not sometimes actuate his move- 
 ments. He has been known to seek out some poor widow who
 
 44:2 TACTS, TAILUEES, A2TD TBAUDS. 
 
 was trying to get her boy into a school, sympathize with her 
 struggles, and generously relieve her necessities in so kind a 
 way as to make the mother's heart to leap for joy. Many 
 whom he thus relieved must have bitterly felt the blow to 
 their veneration when the news of his crimes burst upon the 
 world. We can imagine the poor broken-down old man or 
 the lone widow, whose dark path had been illumined by the 
 golden sunlight of charity, disdaining to believe that so good 
 a gentleman should have been so great a rogue, and retaining 
 their kindly feelings even after the merciless verdict of guilty 
 had been delivered. As there were some found who, remem- 
 bering acts of kindness amid a life of atrocity, were desirous 
 of casting a flower upon the tomb of Nero, so many a one 
 there yet may be who can drop a tear in memory of the benefi- 
 cence of a Eedpath. 
 
 Thus was this anomalous double life pursued, forgery and 
 fraud keeping pace with luxury and benevolence. The direc- 
 tors of the Great Northern Railway Company were unsus- 
 picious of the real sources of his wealth. Their clerk had the 
 reputation of a successful speculator, and the salary which he 
 received was supposed to be regarded by them as merely 
 another string to his bow. One would have thought that the 
 extravagance on which he finally entered would have rendered 
 his friends suspicious, but it was not so. Even when he added 
 to his possessions a splendid house at "Weybridge, with park 
 and pleasure-grounds, their confidence remained unshaken. 
 Some there were amongst his acquaintance who were rather 
 startled at this new display of wealth, but all was still set 
 down to further success in the share-market ; while it should 
 be remarked, that to the directors of the company the extent 
 of his extravagance was never known till too late. The ten 
 servants engaged at this country seat, the fisherman with his 
 punt for Mr. Redpath's angling excursions, the courier to 
 accompany him on his travels, the cook with 30 a-year all
 
 FACTS, TAILUBES, AXD FBAUDS. 443 
 
 were accounted for, by those who participated in them, by 
 supposed success in imaginary undertakings. 
 
 But the bubble was to burst at last. The crimes of 
 another forger, Robson, led to directors of public companies 
 being somewhat alarmed lest some Robson might be in their 
 concern, helping himself to the moneys of the company. The 
 directors of the Great Northern Railway Company had for 
 some time been paying dividends, it is asserted, on a larger 
 sum than they could well account for; but it would appear 
 that they relied on the trustworthy character of their clerks, 
 and on none more than that of Redpath. 
 
 An incident, however, occurred which suddenly startled 
 them into a knowledge of the reckless extravagance of Red- 
 path's life. Mr. Denison, the chairman of the line, was 
 
 standing on a station platform, conversing with Lord D , 
 
 when Redpath happened to come up, and lifted his hat to 
 Mr. Denison.* The nobleman, however, was on easier terms. 
 Taking Redpath cordially by the hand, "Ah, my dear fellow," 
 said he, " how are you ?" Having parted, the chairman turned 
 
 to Lord D , and asked what he knew of their clerk. 
 
 " Oh," said he, " he is the jolliest fellow in life; he gives the 
 most sumptuous dinners and capital balls that I know of." 
 This was an ominous rencontre for Redpath ; and, coupled with 
 the then agitated state of the shareholding community, it was 
 determined to scrupulously examine the books of the company. 
 
 This course once decided, it was deemed advisable to begin 
 the investigation from an early date, and a distinct department 
 was created for the purpose. The officials instructed to carry 
 out this process first met on November 15, 1856. A day or 
 two after, when the actual inquiry was being commenced, 
 Redpath came into the room, and asked what they were going 
 to do. " To go through all the accounts," said the head of the 
 
 * This anecdote has been contradicted, but it is believed something of 
 the sort took place, though not under the precise circumstances detailed.
 
 444 FACTS, FAILUEES, AND FEAUDS. 
 
 department, "from the commencement of the company." 
 " That is perfectly useless," said the thunder- stricken Red- 
 path, smothering his emotion ; " you will find all the accounts 
 right in the gross, and it is of no use entering into special 
 details." 
 
 Finding this feeble remonstrance unavailing, and not dar- 
 ing, of course, to urge the matter, Redpath carelessly took up 
 a book and threw it down again, remarking, " "Well, if that is 
 your intention, I will have nothing to do with it ; and if this 
 course is persevered in, I shall resign." He then made some 
 excuse to leave for a few minutes. He went, but never re- 
 turned. 
 
 He now clearly saw the terrible storm that threatened to 
 break over him, and determined to escape from it. He there- 
 fore at once sent one of the ticket-porters belonging to the 
 company to the Union Bank in Argyll Place, Regent Street, 
 for the title-deeds of his house in Chester Terrace, and for 
 other securities lodged there for safety, telling the messenger 
 to meet him with the documents at Chester Terrace. The 
 man, however, misunderstood him, and, when he had received 
 the parcel, took them direct to the railway offices, but could 
 not of course see Redpath there. The officials of the company, 
 now aroused to the sense of self-protection, intercepted them, 
 and, as this afforded strong confirmation that their clerk was 
 contemplating flight, they took possession of them ; and, more- 
 over, at once gave notice to the Union Bank that any balance 
 remaining in Redpath's name was to be withheld till proper 
 inquiries could be instituted. 
 
 Meanwhile, the examination into the accounts proceeded, 
 and the startling truth gradually unfolded itself; thousand after 
 thousand was discovered to have been forged by this insatiate 
 and luxurious schemer, and the police were forthwith informed 
 of the delinquency, while possession was also taken of the house 
 in Chester Terrace, and the mansion and park at "Weybridge.
 
 FACTS, FA.ILUBES, AND F11AUDS. 4-i5 
 
 At this delicious retreat one of the loveliest spots in a 
 county remarkable for its scenes of quiet loveliness a horrible 
 surprise was destined for Mrs. Eedpath. She was sitting in 
 her home, surrounded by all the refinements which art can 
 add to nature, expecting her husband's return. Instead, how- 
 ever, of her husband, whose kindness and affection to her was 
 a bright feature in his character, a detective suddenly made his 
 appearance, with news which burst upon her like a thunder- 
 bolt, that her husband was discovered to be a forger and a 
 thief. The intelligence, though quietly broken, was too much 
 for her, and in grief she swooned, to be restored only to a more 
 painful aud deeply oppressive sense of her misery. 
 
 "\Vhile desolation was thus sweeping like a dark tornado 
 over the beautiful retreat at "Weybridge, Eedpath had hurried 
 off to Paris, by the South-Eastern Railway, preparatory to 
 further distant flight. "Whether conscience, however, was too 
 powerful for him, whether he felt himself already defeated 
 through the error the porter had made, or whether, finally, he 
 despaired of escape, is uncertain ; but he determined to return 
 and give himself up. A telegraphic message was actually sent 
 by him, stating that he would return. Superintendent Wil- 
 liams, who had undertaken the preliminaries for his capture, 
 was at first inclined to regard this as a mere ruse to put the 
 police off the scent ; but he did not completely slight the occur- 
 rence nevertheless. Knowing that the fugitive had actually 
 gone to Paris, Williams at once proceeded thither, armed with 
 a magistrate's warrant for his apprehension. A telegraphic 
 message, however, from Mr. Mowatt, the secretary of the com- 
 pany, brought back the agent of the law, who, accompanied by 
 Mr. Mowatt and another police constable, then went to a 
 house which had been indicated, No. 4, Ulster Place, JS"ew 
 Eoad. Here they found the accomplished forger, sitting at 
 breakfast, between ten and eleven, and he was immediately 
 given into custody.
 
 FACTS, FAILTTKES, AND FEAUDS. 
 
 Addressing Mr. Mowatt, Eedpath expressed his contrition 
 at the position in which he found himself; and the latter could 
 at the moment do no more than also avow his regret and pain 
 in meeting him under such circumstances. It is highly pro- 
 bable that Eedpath, after the first blush of discovery, really 
 intended to give himself up, for he had assumed no guise what- 
 ever, and bitterly complained that so many people had been 
 sent to surprise him in his supposed retreat. 
 
 From Ulster Place, where Superintendent "Williams for. 
 mally charged him with forgery and fraud, Eedpath was taken 
 to Clerkenwell Police Office in a cab. On his way he again 
 expressed to "Williams, whom he had known as an officer of the 
 company, his regret at being so painfully situated, and added, 
 " There's my place in Chester Terrace, and if they sell it well, 
 it will at least fetch 30,000." He then requested that Mr. 
 "Wontner, the solicitor, should be sent for, which was of course 
 acceded to. On the following day, attired in a chocolate- 
 coloured coat and waistcoat, and holding in his hand a travel- 
 ling cap, he was placed before Mr. Tyrwhitt. The preliminary 
 examinations were somewhat protracted, but ultimately, on the 
 24th of December, 1856, he was fully committed for trial. 
 
 From the moment when the news of Eedpath's defalcation 
 burst upon the town, the utmost excitement prevailed. It was 
 not only the talk of City circles, but the topic of clubs and 
 drawing-rooms. The effect of the announcement at the Stock 
 Exchange was similar to that which occurred when the dis- 
 covery of Eobson's fraud was made ; the shares dropped, and 
 were for some time after subject to fluctuation. The " -ana- 
 gers of benevolent institutions, with whom he had acted the 
 tradesmen whom he had patronized so nobly, and paid so hon- 
 ourably all were astounded.* Indeed, it was for tl:? time 
 the one engrossing question ; the daily press fed on 
 
 * At "Weybridge, even after his conviction, the poor peep; 
 of him with gratitude.
 
 TACTS, FAILUBES, A3TD FBAUDS. 447 
 
 lations which, in one shape or other, were most curious and 
 interesting ; and the trial was looked forward to with intense 
 interest. 
 
 Oil the morning of Thursday, January 15, 1857, the Cen- 
 tral Criminal Court was densely crowded. There were two 
 prisoners to be arraigned, Leopold Eedpath and Charles James 
 Comyns Kent, the second prisoner having acted as a clerk 
 under Eedpath, and who was indicted with him for conspiring 
 to defraud the Great Northern Eailway Company. The in- 
 dictment contained various counts, charging them with forging 
 transfers of the Great Northern Company's stock, and also 
 with conspiracy. To the whole of the allegations both prison- 
 ers pleaded Not Guilty. Eedpath was naturally the observed 
 of all observers. He was generally considered rather a notice- 
 able man, but now that he attained notoriety through the 
 commission of a serious crime, his appearance was more strictly 
 scanned with a pardonable inquisitiveness. A rather tall, 
 fresh-looking man of forty, slightly bald, but with a profusion 
 of hair under the chin, he possessed a thoroughly English look. 
 He might have been supposed to be a country squire, or jus- 
 tice, "his belly with fat capon lined," retaining a family seat in 
 the churchwarden's pew, delighting in a conservatory, and 
 keeping a good balance at his banker's. There was little of tho 
 criminal about him, though he exhibited a wayward glauce, 
 and some indeed seemed to think he was somewhat out of 
 place in the felon's dock. But an uneasy earnestness marked 
 his countenance, and as he every now and then nervously 
 jotted down certain points of evidence, as the proceedings went 
 forward, it was apparent he stood there for no ordinary fraud. 
 
 The judges who tried the case were Mr. Baron Martin and 
 Mr. Justice Willes. The counsel engaged included Mr. Ser- 
 jeant Ballantinc, Mr. Bodkin, aud Mr. Giffard for the prosecu- 
 tion; Mr. Serjeant Parry and Mr. Tiudnl Atkinson for Ived- 
 path, and Mr. Hawkins and Mr. Thompson defended Kent.
 
 TACTS, TATLUEESj AND 
 
 The case was opened with the accustomed ability of the 
 leaders, who called witnesses to substantiate the charges 
 averred, fully confirming the circumstances already related in 
 connection with the great delinquent. Mr. Serjeant Parry, for 
 Redpath, endeavoured to show that he had merely followed out 
 a system which, the learned Serjeant alleged, was pursued by 
 railway directors generally that of dealing in the company's 
 stock in other parties' names. It was contended, in fact, that 
 the transfers were dealings in genuine stock, and that Redpatb, 
 was sought to be made a scapegoat for the whole of the higher 
 officials ; but of course any such assumption was fabulous. 
 
 Mr. Justice Willes, in summing up, clearly analyzed the 
 circumstances, and stated that the question for the jury was, 
 whether the instrument before them was a real or a fictitious 
 transfer, and whether it had been executed by the prisoner for 
 the purpose of fraud. The jury saw this, and after a few 
 minutes' deliberation, without leaving the box, returned, what 
 was naturally expected, a verdict of guilty. 
 
 The two prisoners were then put on their trial together, for 
 jointly forging and uttering a transfer 01 stock of the Great 
 Northern Railway Company, of the value of 1087 105. After 
 considerable evidence, and a host of testimony to the good 
 character of Kent, Mr. Baron Martin expressed himself in 
 favour of the latter, observing, " It was, no doubt, a very 
 wrong and irregular act, but if he really believed that he was 
 attesting a document for the transfer of stock which belonged 
 to the principal of his office, and which he held in the name of 
 Sidney, he would not be guilty of forgery. To convict him of 
 forgery, they must be satisfied that he had acted in concert 
 with Redpath, and of that there had been no proof." In this 
 instance the jury, without quitting the box, immediately re- 
 turned a verdict of guilty against Redpath, and of acquittal as 
 regarded Kent. A heavy sentence on Redpath was fully an- 
 ticipated, and Mr. Justice Willes, in delivering it, spoke touch-
 
 FACTS, FAIirBES, A2TD FBA.UDS. 449 
 
 iuely of tbo way in which Eedpatli had involved others in 
 irregularities which might have been construed into crime, and 
 of instructing his counsel to throw aspersions upon the charac- 
 ter of the directors aspersions altogether unsupported by any 
 proof. " I must say," continued the learned judge, " that I 
 regard that as a very base proceeding on your part, and if it 
 were possible to aggravate your crime, I think that that aggra- 
 vated it very much. Looking, however, only to the facts in 
 this case, and upon the depositions, it appears that you have 
 forged no less than twenty deeds. You have obtained, by 
 means of these forged deeds, between 20,000 and 40,000. 
 You are therefore a person who has forged on a large scale ; 
 3*ou have played for heavy stakes, and you must have been 
 aware all along that if your iniquities were discovered, you 
 would be called to a heavy account." His Lordship then 
 passed upon the wretched criminal what many persons con- 
 sider the heaviest sentence which can be pronounced trans- 
 portation beyond the seas for the term of natural life. But 
 heavy as the sentence was, Redpath had apparently nerved 
 himself up to receive it with calmness, and he moved from the 
 bar with an unfaltering step and firmly-knit brow. The career 
 of this delinquent is instructive, but it would be difficult to 
 characterize it in better terms than in the words of Mr. Justice 
 "Willcs. Eedpath played for heavy stakes, and he was called 
 to a heavy account. His ambition was to be, and to be 
 thought, the good easy, kind-hearted gentleman, with a kindly- 
 beaming smile, a generous heart, and an open purse. He 
 cared not what risk he ran so that he might be flattered and 
 esteemed ; his later life was a genteel lie, a respectable sham, 
 supported by a fraud of great magnitude, the penalty for which 
 is an eternal exile in the society of criminals of the worst class, 
 whose tastes and associations, it must be presumed, differ from 
 his own as wide as the poles asunder. 
 
 G o
 
 450 TACTS, FAILUSES, AZS'D FEATTDS. 
 
 EEPOET OF THE DIEECTOES OF THE GEEAT NOETHEEN 
 EAILWAY ON THE EEDPATH FEAUDS. 
 
 5' TO THE TWENTY- FIRST HALF-YEAELY OEDINABY GENEEAL MEETING, HELD 
 AT THE LONDON TAVEEN, BISHOPSGATE STEEET, IN THE CITY OF 
 LONDON, AT ELEVEN O'CLOCK PEECISELY, ON THUBSDAY, THE 12TH 
 
 DAY OF MABCH, 1857 : 
 
 \ 
 
 " The directors have now the unpleasant duty to bring formally under 
 the notice of the proprietors the painful subject of the frauds and forgeries 
 practised by Leopold Eedpath, and the serious loss to which the company 
 is thereby subjected ; also the course which it appears desirable to take to 
 provide for such loss. 
 
 " The proprietors will, of course, expect to be put in possession of the 
 arrangements which were made for conducting the business of the regis- 
 tration office, in which the forgeries were committed. 
 
 " On the 7th July, 1846, Mr. W. H. Clark, aged between thirty and 
 forty years, who was brought up as a solicitor, was appointed registrar to 
 the Great Northern Eaihvay Company, at 600 per annum, as part of the 
 agreement of amalgamation with the Direct Northern Company, of which 
 he was the secretary. 
 
 " Eedpath, after due inquiries made by a Great Northern director and 
 the secretary at the Brighton Eailway office, where he had served as a 
 registration clerk, was appointed a clerk in the registration office of the 
 Great Northern Eailway Company, along with four or five other clerks. 
 
 " The principal duty of Mr. Clark, the registrar, was to take care that 
 the amount and particulars of all shares and stock held by any person in 
 the company were duly entered to the credit of such person in the regis- 
 tration books, but no money passed through his^hands, except 2s. 6d. paid 
 for each transfer of stock. He had also to prepare, at the end of each half- 
 year, a " register of shareholders," showing the amounts of the various 
 stocks held by each party respectively. 
 
 " The register, so ordered by 8th Victoria, cap. 16, sec. 9, was always 
 produced at each half-yearly meeting, having been first authenticated by 
 the registrar. 
 
 " It was also the duty of the registrar to see that any person proposing 
 to sell stock, had that stock standing in his name in the register j that 
 the transfer deed was properly signed and witnessed ; that when the stock 
 was sold the seller's account was properly debited, and that the purchaser 
 was credited with a similar amount of the same stock. 
 
 " Although these were the principal duties of the registrar, it now
 
 FACTS, FAILURES, A3H> FBATTDS. 451 
 
 appears that in several of the years during which Mr. Clark was registrar, 
 a large number of forgeries were committed by Redpath, which were not 
 discovered till the end of 1856 ; but no suspicion attaches to Mr. Clark of 
 his having had the remotest knowledge of them. 
 
 " The rule of the directors was to abstain from looking into the share 
 transactions of other proprietors ; it would, moreover, have been quite im- 
 possible for them to have detected either errors, or frauds, or forgeries by 
 a cursory glance at the registration books, for even under the recent know- 
 ledge that irregularities existed, it has taken months of hard labour to 
 discover the particulars of them. 
 
 " In the spring of 1854, Mr. Clark left the service of the company, the 
 directors having been of opinion that the greater part of his salary which 
 had been reduced in 1848 to 500 per annum might be saved ; and as 
 Redpath, who acted as chief clerk since 1846, had conducted himself ap- 
 parently with regularity and propriety, and had a good knowledge of the 
 registration business, he appeared to the board to be a suitable person to 
 uceeed Mr. Clark, and he was therefore promoted to be registrar, at a 
 salary of 250 per annum, in March, 1854. 
 
 " About the time of his appointment as registrar, it was reported to 
 the directors that Eedpath was a person of good circumstances, realized 
 by successful dealings in reversionary and other speculative securities, but 
 that, satisfled with his success, he had ceased to speculate. The directors 
 having exacted a promise from him that he would strictly abstain from 
 speculating in shares or itock of any description, he was appointed 
 registrar. 
 
 " In January, 1856, the secretary communicated to the chairman that 
 he had been informed there was a discrepancy between the stock registered 
 und the money represented to have been received on account of the same 
 in the accountant's books, and that he had consequently called upon the 
 registrar and the accountant for a statement of the amounts of stock and 
 dividends appearing in their respective books. 
 
 " Those statements showed that dividends on some of the stocks had 
 been over-paid. 
 
 'The chairman, upon his next attendance in town, made some in- 
 quiries, and was informed that an investigation had been commenced by 
 the registrar, which it was hoped would soon show where the alleged 
 errors existed. 
 
 " He had a conversation with Redpath upon the subject, who expressed 
 & strong desire that a thorough investigation into the books of his ofllce 
 ehould be made. 
 
 " In presenting the ' Register of Proprietors of Stock ' to the board, 
 preparatory to the general meeting in August, 1856, Redpath reported that 
 in the course of the half-jear errors had been discovered and corrected in
 
 452 FACTS, FAILURES, A^D FKATJDS. 
 
 the register of A stock, to the amount of 1375. In the month of Sep- 
 tember, the secretary called the attention of the chairman again to the 
 subject, and stated that Eedpath did not pursue the investigation with 
 anything like vigour, although he (the secretary) had almost incessantly 
 pressed him to do so. 
 
 " On the 16th October, the chairman received from Eedpath a copy of 
 a letter written by him to the secretary, tendering his resignation, ou 
 account of other important engagements. 
 
 " On the 17th and 18th October, the secretary produced to the chair- 
 man returns which he had required the registrar to furnish, and which 
 showed that stock to the amount of about 137,000 was registered in 
 excess in the books of the company. A statement of the dividends paid, 
 obtained from the accountant, confirmed this alarming communication. 
 
 " The chairman then had an interview with Eedpath in the presence of 
 Mr. Arbouin, a director, the secretary, assistant-secretary, and general 
 manager, when Eedpath did not deny the correctness of the statement, but 
 alleged that, although there might be some errors, he was not responsible 
 for them, and that the chief discrepancy arose from the accountant having 
 appropriated capital received years ago to the wrong accounts, but that 
 every discrepancy admitted of adjustment towards which he would give 
 his best assistance. 
 
 " Mr. Eeynolds, the accountant, upon being informed of Eedpath's 
 statement, said it was quite impossible it could be correct. 
 
 " The chairman told Eedpath that he should not accept his resignation 
 under the existing circumstances, but he insisted upon a more active in- 
 vestigation, and authorized the secretary to take the matter into his own 
 hands. This was done, and the frightful system of fraud and forgeries that 
 Eedpath had practised was brought to light. 
 
 " The discovery was communicated to the chairman on the lOtli of 
 November. He desired that immediate application should be made to a 
 magistrate for the apprehension of Eedpath, who had gone to Paris. And 
 Kent, a clerk in the same office, was taken into custody the same evening. 
 The results of the subsequent prosecution of Eedpath and Kent are, of 
 course, well known to the proprietors. 
 
 " It has been already stated that there are no grounds for suspecting 
 Mr. Clark of any knowledge of Eedpath's frauds ; but the directors cannot 
 refrain from remarking, that if Mr. Clark had regularly examined the 
 transfers of stock and the registration books, so as to produce at the end 
 of each half-year a really accurate " register of shareholders," there can be 
 no doubt that the greater part, if not the whole, of Eedpath's forgeries 
 would have been prevented or discovered long ago. 
 
 " The following letter was written by Mr. Clark to the secretary, imme- 
 diately before his retiring from the service of the company :
 
 FACTS, FATLrBES, AKD FRAUDS. 453 
 
 11 ' Tho Great Northern Railway, Registration Department, 
 
 " ' King's Cross, London, 25th April, 1834. 
 
 I < Dear Sir, The period of my service in this company terminates, 
 you will recollect, on the 29th inst. ; and as my arrangements will call me 
 out of London almost immediately, it will be a convenience to me to 
 receive the balance of compensation, 875, voted to me by the board at 
 the close of this week. 
 
 "'Though the ordinary business of the department for the last two 
 months has been unusually heavy, you will find it without any arrears, and 
 all the books and papers in an orderly and proper state. 
 
 " ' The pressure of current business having been disposed of, the ex- 
 amination (necessarily occupying some time) for the adjustment of all 
 accounts between this and the accountant's department has been resumed, 
 and in reference to it my successor will not experience any difficulty ; in 
 short, I feel confident that I shall leave everything in the department in a 
 business-like condition. I am, dear sir, yours faithfully, 
 
 (Signed) " ' W. H. CLABK. 
 
 " ' J. R. Mowatt, Esq., 
 " ' Secretary, Great Northern Railway Company.' 
 
 "A copy of the above statement was sent to Mr. W. H. Clark, and his 
 observations thereon are to be found annexed. 
 
 " In the course of preparing for the prosecution of Redpath, it became 
 necessary for Messrs. Humphreys, the solicitors, to obtain from Messrs. 
 Field, Son, and \Vood, stockbrokers, of Warnford Court, a list of pur- 
 chases and sales effected by them for Redpatb, and by which it appears, 
 tliat about June, 1848, they sold for him the first eight shares fraudulently 
 dealt with. James Wood, their clerk, was the attesting witness to Red- 
 paih's signature on the transfer deed. The list extends from June, 1848, 
 to October, 1856, and embraces 365 distinct sales of Great Northern 
 stock, to the amount of 206,047 10*., and 131 purchases, amounting to 
 48,800. At the foot of this list there is the following note : ' Some of 
 the shares transferred by II. J. Wood, J. II. Stratton, and Thomas Hogben 
 (clerks to Messrs. Field, Son, and Wood), were previously transferred into 
 their names by Mr. Redpath, but no entry having been made of those 
 transfers in our books, they cannot be specified. A reference to the books 
 of the company will show which they are.' 
 
 " Redpath sold and bought, though to a comparatively small extent, 
 through the medium of other brokers. 
 
 "Tho result of the most careful examination of the company's register 
 of stocks, etc., which time and circumstances have permitted since the 
 discovery, in November last, of these transactions, shows that stock to the 
 amount of about 220,000 has been fraudulently issued by Redpath. Im-
 
 454 TACTS, FAILTJEES, AND FEAUDS. 
 
 mediately on the discovery of the frauds, Eedpath's house in Chester Terrace, 
 and another at Weybridge, were taken possession of on behalf of the com- 
 pany, together with all other property that could be traced as belonging to 
 him ; he was soon afterwards adjudicated a bankrupt, and the secretary 
 was appointed the trade assignee. It is impossible at present to form a 
 correct opinion of the value of the assets that may be realized for the 
 company. 
 
 " The directors, for some time past, have given their best consideration 
 to various methods suggested for dealing with the loss occasioned by these 
 extensive forgeries, and in order to ascertain their legal powers and re- 
 sponsibilities, they consulted the Attorney-General and Mr. Eochfort 
 Clarke, whose opinion is as follows : 
 
 " ' We understand that in consequence of Eedpath's fraudulent crea- 
 tions and issues of stocks by forgeries and otherwise, recently 
 discovered, every description of stock of the Great Northern Eail- 
 way Company is found to be in excess of its Parliamentary limit ; 
 but the stock thus fraudulently created has become so blended 
 with the rest of the stock as to be no longer distinguishable ; and 
 that the company cannot apportion a dividend in such a manner 
 as to avoid paying on the fictitious stock equally with the stock 
 legitimately issued ; and as we are of opinion that the company 
 cannot lawfully pay any dividend on the stock so in excess, it 
 follows as a necessary consequence that they cannot at present 
 legally pay any dividend whatever. 
 
 " 'We consider the loss arising from these frauds in the same light as 
 we should consider any loss resulting to the company from some 
 great calamity, such as the falling of a tunnel or viaduct, or an 
 inundation, the cost of which would have to be defrayed before 
 any profit capable of division could be considered to have accrued. 
 And we think that before any sum whatever can be treated as 
 divisible profit, provision should be made for purchasing up and 
 extinguishing stock equal in amount to the stock so fraudulently 
 created and issued. 
 
 c< ' If, however, the holders of stock will agree to apply to Parliament 
 for a bill to legalize the stock as now existing, and the payment of 
 dividends thereon, and will authorize the directors to solicit from 
 Parliament such a Bill, and in the meantime authorize them to pay 
 dividends on all the stock, we think much controversy and expense 
 will be avoided, and the common interests of the company best 
 consulted ; but unless the holders of stock will adopt that course, we 
 cannot advise the directors to pay at present any dividend whatever. 
 (Signed) " 'EICHABD BETHELT., 
 
 " ' G. EOCHFOBT CLAEKE. 
 " ' Temple, 14th February, 3857.'
 
 FACTS, FAILUEES, A2TD FEAUDS. 
 
 " It is clear, from this opinion, that a dividend cannot be legally or 
 safely paid at present upon any description of stock. An Act of Parlia- 
 ment, however, as suggested by the Attorney-General and Mr. Clarke, 
 might materially relieve the proprietors from their disappointment in not 
 immediately receiving any dividend ; but it must be an Act that the ma- 
 jority of the proprietors approve, and Parliament will allow to pass. In 
 order to make some progress towards this object, leave has been already 
 obtained from the Standing Orders Committee to introduce the Bill. 
 
 "The directors cannot take upon themselves to propose or support any 
 Bill which would throw upon the preference stocks any portion of the loss 
 in question, and thereby shake the confidence of the public in all such stocks. 
 " If, however, the proprietors support the Bill, as the directors recom- 
 mend them to do, dividend for the last half-year may probably be paid in 
 full in about a month upon every description of stock registered in the 
 company's books ; but if the proprietors reject the Bill, it is certain that a 
 dividend cannot be paid. 
 
 " It is therefore intended to propose at the meeting on the 12th inst., 
 a resolution to the following effect : 
 
 " ' That the directors be, and hereby are, requested and authorized to 
 take all necessary steps to solicit and obtain as early as possible in 
 the present session of Parliament, an Act in conformity with the 
 Bill now submitted to this meeting, to enable them to provide for 
 the loss resulting to the company from the forgeries and frauds of 
 Leopold Ecdpath, the late registrar ; the said Bill being subject to 
 such alterations as the directors may consider necessary for the pro- 
 tection of the interests of the company.' 
 
 " The directors have considered it right to enable the proprietors who 
 cannot attend in person on the 12th inst., to record their votes on this 
 important occasion, and for that purpose a stamped form of proxy is for- 
 warded herewith to each proprietor to fill up, or return in blank, as thought 
 proper. 
 
 " It will be seen, by their reports annexed, that the Auditors some time 
 since called to their aid Mr. Deloitte, a public accountant, and that he haa 
 been engaged in the examination of the general accounts of the company for 
 the last half-year, and in examining also the books and accounts of the Re- 
 gistration Department. The latter operation will be unavoidably laborious 
 and expensive, and will require a long time to complete. 
 
 " Ejmr xi> DBMSON, Chairman. 
 
 "'The Great Northern Railway, 
 " ' King's Cross, London, Accountant's Department, 
 
 "'Feb. llth, 1857. 
 "'Gentlemen, In consequence of the painful disclosures which hare
 
 45fj PACTS, PAiLruES, AND 
 
 taken place in the registration department, and at the special request of 
 Mr. Reynolds himself, we have deemed it desirable that the books and 
 accounts of the accountant's department, both as regards the income and 
 expenditure of the company, should be subjected to the examination of a 
 professional auditor. 
 
 " ' We have accordingly called in the aid of Mr. Deloitte, whose report 
 we beg to enclose for the information of the shareholders. 
 
 44 ' We are, gentlemen, your faithful and obedient servants, 
 
 " ' JOHN CHAPMAN, 
 "J.CATXUBT, 
 
 " ' The Chairman and Directors of the Great 
 Northern Railway Company.' 
 
 ' 4, Lothbury, London, Feb. llth, 1857. 
 
 " C TO THE PBOPEIETORS OF THE GBEAT NOBTHEEX EAILWAT. 
 
 *' ' Accountant's Department. 
 
 <e e Gentlemen, Having, at the request of your auditors, assisted them 
 in their very laborious duty of auditing these accounts, I have much plea- 
 sure in confirming their opinion as to the admirable and satisfactory 
 manner in which they are arranged, and joining them in certifying as to 
 their correctness. 
 
 " ' The amounts standing in the ledger to the credit of the various stocks 
 consist, as stated in the published accounts, of all sums received on account 
 thereof, and will, therefore, require adjustment when the investigation now 
 proceeding in the registration department is complete. 
 
 " ' After a careful examination of the register of mortgages which is kept 
 in this department, I find the result corresponds with the ledger, also that 
 the interest credited in the ledger as payable in respect thereof, agrees with 
 such register, and after charging the various payments made by the bank- 
 ers in account thereof to the debit of such account, the balance remaining 
 consists of the agreed outstanding coupons per the original lists, thus prov- 
 ing the accuracy of the whole account ; and I arn fully satisfied that the 
 correct amount of interest payable per the register has been so credited 
 and paid, and no more. 
 
 " ' The books kept in the audit office, relating to the different classes 
 of traffic, together with the system of travelling audit adopted by this com- 
 pany, effectually check the various accounts rendered from time to time 
 by the station-clerks, and the method in operation of tabulating such ac- 
 counts greatly facilitates that object, and economizes labour to a consider- 
 able extent ; notwithstanding that, the amount of work involved in such 
 inquiry is necessarily very great, and requires constant care and attention,
 
 FACTS, FJLILUEES, AND FBATJDS. -137 
 
 and too much praise cannot be bestowed upon Mr. Reynolds, the account- 
 ant, for the manner in which the duties of this office are performed. 
 
 " ' The condition of the outstanding traffic and mineral balances owing 
 at the stations and by the public is very satisfactory, and proves that great 
 diligence is used in regulating and collecting such balances. 
 " * I am, gentlemen, your obedient servant, 
 
 (Signed) W. W. DELOITTE.' 
 
 " ' Great Northern Railway, 
 " c Engineer's Office, King's Cross, London, 
 
 "'Feb. llth, 1857. 
 
 " ' Gentlemen, The renewals, during the past half-year, of the perma- 
 nent way on the up line, from Welwyn towards London, and the recon- 
 struction of the timber viaduct at Bawtry, still in progress, have caused 
 an increase in the expense of maintenance, as compared with that for the 
 corresponding half of 1855, of 3893. 
 
 " ' The fish-jointing of the rails, which has been adopted with the re- 
 newals, and the excellent quality of the ballast which has been added, have 
 much improved the condition of the way. 
 
 " ' The renewal of the viaduct at Bawtry is being effected with brick- 
 work, liable to little future repair, and, when complete, will be a permanent 
 improvement of one of the larger works of the line. Other smaller timber 
 bridges, renewed during the past half-year, have also been rebuilt with 
 durable material. 
 
 " ' I have pleasure in stating that saving has been effected, under several 
 heads, of my expenditure ; and that the total charges against revenue have, 
 therefore, not been so much increased as the heavy renewals would have 
 warranted. 
 
 " ' Tho way and works have been maintained in a high state of repair, 
 and are in excellent condition. 
 
 '"I have the honour to be, gentlemen, your obedient servant, 
 
 (Signed) " * WALTER M. 
 
 " c The Directors of the Great Northern Railway.' 
 
 " ' The Great Northern Railway. 
 "'Locomotive Department, Doncaster, llth Feb., 1857. 
 
 "'TO THE DIRECTOE3 OF THE OKEAT KOBTHERX BAILWAT. 
 
 " ' Gentlemen, I have the honour to report to you that I have made
 
 458 FACTS, TAILTJEES, A>'D rHATJDS. 
 
 up my accounts for the past half-year, and that the results, as compared 
 with those for the corresponding half of 1855, are as follows : 
 
 December, 1856. December, 1855. 
 
 Train mileage .... 2,865,493 . . . 2,868,416 
 
 Total expenditure . . 117,093 . . . 122,968 
 
 Cost per train mile . . 9'807a 7 . . ; . 10'288d. 
 
 " ' Thus showing, that whilst, practically^speaking, the same mileage lias 
 been run in the half-year ending 31st December, 1856, as in the correspond- 
 ing half of 1855, there has been a saving, in 1856, of 5875 in the expendi- 
 ture, and of '481^. in the cost per train mile. 
 
 " ' I therefore trust that the result of the half-year's working of my 
 department will be considered satisfactory, as, although the work has been 
 done at a less cost, the stock, I can confidently say, has been fully main- 
 tained. 
 
 '' ' I have the honour to be, gentlemen, your; obedient servant, 
 
 (Signed) " ' AECHD. STUBBOCK.' 
 
 " ' Great Northern Railway. 
 
 " ' Eegistration Department, King's Cross, 
 
 " c London, llth Feb., 1857. 
 
 " c Gentlemen, Although this branch never came within the province 
 of our duties as auditors, yet, under the peculiar circumstances which have 
 arisen, we acceded to your request, that we should, with professional aid, 
 examine into the frauds committed in the registration department. 
 
 " ' For this purpose we lost no time in availing ourselves of the assist- 
 ance of Mr. W. W. Deloitte ; although this gentleman was personally un- 
 known to us, his professional reputation afforded us a sufficient guarantee 
 for the faithful discharge of his arduous task. 
 
 " ' We beg to annex his report, and feel confident that Mr. Deloitte will 
 use every exertion in ascertaining the exact amount of loss as speedily as 
 practicable. 
 
 " ' The system and machinery which he has employed for the investiga- 
 tion are so comprehensive, as to leave no doubt that the paramount object 
 of balancing the whole of the registration records will be satisfactorily 
 accomplished. 
 
 " ' We remain, gentlemen, your very faithful and obedient servants, 
 
 w ' The Chairman and Directors of the Great 
 Northern Railway Company.'
 
 FACTS, FAILURES, AND FRAUDS. 
 
 " 4, Lothbury, London, February lltb, 1S57. 
 "'TO THE PBOPBTETOBS OP THE GBEAT NOBTHEBK BAIIAV.iT. 
 " ' Registration Department. 
 
 " ' Gentlemen, Immediately upon receipt of instructions from your 
 auditors to assist them in the investigation of the various registers of stocks 
 and shares in this department, I commenced active operations tbereon. 
 
 " ' I find the work of great magnitude, and of a character that will 
 necessarily occupy a considerable time. 
 
 " ' The registers have not been adjusted since 1S4G, the period at which 
 the amalgamation between the " Direct Northern " and the " London and 
 York " took place, when the united shares of the two companies were by 
 arrangement reduced to 224,'000. Upon 112,513, being the " Direct Nor- 
 thern " portion thereof, 3 15*. per share was paid ; ad upon 111,482, the 
 London and York portion, 2 10s. per share was paid. 
 
 " ' The registers of the various preference stocks issued since that period 
 also require adjustment, some part thereof having been issued at a discount, 
 and some at a premium. Under these circumstances, I have thought it 
 necessary to commence my inquiry from 1846, to enable me, in the first 
 instance, to ascertain the correct amount of shares or stock, at par value, 
 which each proprietor is entitled to who has paid up such shares or stock, 
 and then to trace the various transfers, which is the only safe and sure 
 mode of arriving at a sound conclusion. 
 
 " c In order to expedite my work, and to enable me to arrive at a result 
 as speedily as practicable, I have divided each of the stocks into several 
 books, by which means I shall be able to employ additional clerks thereon, 
 as I am fully sensible of the great anxiety of all parties interested to have 
 the report of the auditors upon this most important subject. 
 
 " ' I annex statement, showing the balance of the several dividend ac- 
 counts in the ledger on the 31st December last, for your information. 
 
 " c I have recommended the adoption in future of a system for the pre- 
 paration of the dividend lists and payment of the dividends, which will 
 immediately discover, and I hope, therefore, prevent, any discrepancy either 
 in the stock or dividend, whether arising from fraud or error. 
 "'I am, gentlemen, your obedient servant, 
 
 (Signed) " ' W. W. DELOITTE.' 
 
 " ' STATEMENT OP THB BALANCES OP THE OBEAT NORTJJ EBS DIVIDEND 
 AND INTEBEST ACCOUNTS, ON 31st DECEMBER, 1S5G. 
 
 Overpaid. Unclaimed. 
 *. d. & t. d. 
 First Dividend, to June, 1851, due September, 
 
 1851 . . . . 106 15 
 
 Inlfin-st on Preference Capital, due March and 
 September, 1851 .... 1,050 3 3 
 
 Carried forward . 106 15 1,050 3 3
 
 PACTS, FAII/TEES, A.7TD FEATTDS. 
 
 s. d. s. d. 
 Brought forward . . 106 15 1,050 3 3 
 
 Second Dividend, to December, 1851, due 
 March, 1852 .... 
 
 Interest on Preference Capital, due March, 
 1852 ..... 
 
 Third Dividend, to June, 1852, due September, 
 1852 
 
 Interest on Preference Capital, due June, 1852 39 6 
 
 Interest on Eedeemable Preference Capital, due 
 
 June, 1852 ... . 103 15 8 
 
 Fourth Dividend, to December, 1852, due 
 
 March, 1853 . . . . 316 16 8 
 
 Fifth ditto, to June, 1853, due September, 1853 592 1 8 
 
 Interest on Advances on Calls on Eedeemable 
 
 Preference Capital, due September, 1853 . 202 16 5 
 
 Sixth Dividend, to December, 1853, due March, 
 1854 1,569 7 6 
 
 Seventh Dividend, to June, 1854, due Sep- 
 tember, 1854 . . . . 466 1 5 
 
 Eighth Dividend, to December, 1854, due 
 
 March, 1855 . . 2,659 4 1 
 
 !Ninth Dividend, to June, 1855, due Septem- 
 ber, 1855 . . . . . 850 13 2 
 
 Tenth Dividend, to December, 1855, due 
 
 March, 1856 . . . 2,389 15 9 
 
 Eleventh Dividend, to June, 1856, due Sep- 
 tember, 1856 .... 590 11 2 
 
 Overpaid . : 9,362 3 7 
 
 Unclaimed . , 2,170 17 3 
 
 OBSEEVATIOKS OF ME, W. H. CLARK. 
 "GBEAT KOETHEBN EAILWAY. 
 
 "Edmund Denison, Esq., M.P., Chairman, etc. 
 
 " Sir, Availing myself of your offer, I have the honour to transmit to 
 you, for publication with the report, some observations on the statement 
 you were good enough to send me. 
 
 " I am, sir, your obedient servant, 
 
 3rd March, 1857." " W. H. CIAEZ. 
 
 " The chairman having offered to lay before the shareholders any re- 
 marks I may deem it proper to make on a statement he has sent me, I 
 submit the following observations on (hat document :
 
 TACTS, PALLUBES, AND FBAUDS. 461 
 
 " The statement recites a certain part of the business of the regis- 
 tration office, which it reduces in a manner that makes it appear that it 
 could be personally performed by the registrar; and it omits any reference 
 to an important investigation which I had begun before and left in pro- 
 gress, when I retired. 
 
 " It was as secretary of the Direct Northern that I became connected 
 with the Great Northern. On the union of the former company with tho 
 London and York, it was a condition of the amalgamation that my services 
 should be retained in some department. Accordingly, I was made registrar 
 of the united company. I had, and pretended to have, no knowledge what- 
 ever of book-keeping or registration business. The directors did not ask it 
 of me. There was other and equally important business more in accord- 
 ance with my habits, and sufficient to occupy me. 
 
 " The 'statement' alleges that besides Kedpath, four or five other clerks 
 were at that time placed in the department. According to the best of my 
 recollection there were only two, and they shortly left the service of the 
 company. It was not for several years afterwards that the number, which 
 always remained inadequate to the demands on the department, was in- 
 creased to four or five. The c statement' confines its description of the 
 registrar's duties to those of a statutable kind only. It does not state that 
 all the capital of the company was called up and collected through this 
 department ; that the greater part of that capital was raised at a period of 
 heavy financial depression, when the payment of calls was consequently 
 made most irregularly, to tho enormous augmentation of business ; that a 
 very laborious and difficult division of shares was made ; that large for- 
 feitures and prolonged litigation were conducted j that there were repeated 
 creations of preference shares ; that the charge of the East Lincolnshire 
 tock was made over to the office ; and that by it all transfers of loan 
 capital had to be made. In all these operations, I had constant and most 
 extensive oral and written intercourse and communication with the share- 
 holders and their agents to carry on. For this purpose, I was constant in 
 attendance during business hours. The division of shares, owing to a 
 defective and insufficient establishment, had to be carried on by clerks, who 
 were also required to keep down a huge current registration business. The 
 forfeiture of so large a number of shares produced embarrassments in the 
 accounts, which the facility with which forfeitures were revoked aggra- 
 vated. And the creations of preference shares added to tho difficulties. 
 In the ' statement,' no notice is taken of such labour, or of tho distraction 
 from registration thereby involved. The ' principal duties' of registrar 
 are described without reference to those which really chiefly occupied me 
 personally, and as if in reference to registration, transfers, and half-yearly 
 balances, I could act and do everything without the aid of clerks. 
 
 " In the appointment of Kedpath I was not in any way consulted. Ho
 
 462 TACTS, FAILUBES, ASD PEAUDS. 
 
 was engaged by the board, and placed in the department (without the least 
 knowledge on my part of his previous character), especially because he was 
 well acquainted with registration business, its organization, and book- 
 keeping. As bookkeeper and transfer clerk, it was his duty to post the 
 transfers, to keep the ledgers or registers, to check and balance their 
 accounts, and to make out the half-yearly register of shareholders from 
 them. Those books were principally in his handwriting ; personally I never 
 made an entry in them. His duties, to all appearance, he performed punc- 
 tually and regularly. The clerks under him cheeked and compared the 
 entries with Eedpath, made out the certificates, attended to the address 
 books and ledgers, checked the balances, and calculated and filled in divi- 
 dend warrants. When transfers were found to be irregular, when calls 
 were found to be unpaid, when certificates were not sent in to meet trans- 
 fers, I communicated with the proper parties. I examined the certificates 
 sent out, saw that they were properly initialed and compared with the 
 deeds by the entering clerks, had written reports on every case of doubt, 
 and on every written inquiry, and required written vouchers for everything 
 I signed. The half-yearly statutable balances were extended into the 
 proper sheets, either by Eedpath's own pen, or by his dictation to other 
 clerks from the registrars under his care. Those balances were then 
 checked by the clerks, and after being certified by Eedpath to be correct, 
 were signed by me. 
 
 "The board knew that I was not an accountant. Eedpath was given 
 me as bookkeeper and transfer clerk, and in the late criminal proceedings 
 he was so described by the company's witnesses. Now, when his frauds 
 have been discovered, nearly three years after I left, the chairman, in 
 effect, remarks that I might have discovered them. But the remark is 
 made in forgetfulness that as to those books I was, by the constitution of 
 the office, dependent on Eedpath. The business could only be earned on 
 by the division of labour; that division allotted the books to him, and it 
 was not possible for me to go over every entry, to check every figure (some 
 of them correctly written in originally, and then surreptitiously and feloni- 
 ously altered), to add up every addition ; in short, to follow the forger, as 
 a detective policeman, through frauds of which no one had then the 
 slightest suspicion. I placed that confidence in him which the directors 
 had originally authorized me to place, and which, after my retirement, 
 they themselves continued to place in Eedpath, and I was, with the 
 directors, his dupe. 
 
 " As the business of the department increased, I did not obtain ade- 
 quate and effective assistance. Eedpath was, indeed, the only person ever 
 placed in the department who had the least previous experience of either 
 bookkeeping or registration; and that experience necessarily led to his 
 obtaining great influence over those below him. On occasions of pressure,
 
 TACTS, FAILURES, AND FBATJDS. 
 
 I was compelled to resort to the aid of stationers' copyists. For a length 
 of time, and under great pressure of business, I was separated by inade- 
 quate accommodation from the books, which had to be kept in what was 
 really a cellar. I was repeatedly informed that the board objected to the 
 cost of the department. My explanations were deemed insufficient. At 
 iien the capital was nearly all called up, I was asked by the chairman, 
 with many compliments and expressions of regret, to resign, 'for the sole 
 reason that the registration office ought not to be loaded with the cost of 
 its present stall'.' 
 
 " It now appears that when my connection with the company thus 
 ended, Kedpath had committed part of those frauds which he continued, 
 after my retirement, to practise for two years and a-half longer. A very 
 important fact, only recently ascertained, leads to the inference that from 
 the first he had speculated on his superior knowledge of registration and 
 on his arrangement of the books, to devise a very elaborate and skilful 
 system of fraud, in regard to which I was really as helpless as the directors. 
 No doubt, the board fully believed that they had provided the department 
 with an upright as well as a competent bookkeeper and registration clerk. 
 So far, however, from that having been the case, it is now certain that 
 Eedpath, besides having been a bankrupt under discreditable circum- 
 stances, had previously left a highly-respectable house in the City, in which 
 he held a situation, having misappropriated and peculated their funds, and 
 that the employers whom he had thus defrauded had refused, when applied 
 to, to give him a character. 
 
 " I state these things to show that the person given me as managing 
 clerk was at the time of his original appointment an experienced criminal, 
 and that in all probability he entered the office, in which his exclusive 
 knowledge at the period of his entry gave him great advantages (advan- 
 tages which he maintained by the influence he established over his sub- 
 ordinates), with a design of pursuing a career of crime. That he was 
 successful is a cause of the deepest pain and regret to me. But the impu- 
 tation of the ' statement' amounts to this, that I was unable to detect the 
 most extraordinary cheat and unscrupulous forger of his day, whom the 
 directors had led me to consider as an honest man, and whom they con- 
 tinued for two years and a-half after my retirement to treat as such. 
 
 " The ' statement,' moreover, makes no reference to an investigation 
 which I had commenced. In January, or early in February, 1854, 1 was 
 informed of some comparatively small discrepancies as to dividends in excess. 
 I lost no time in taking steps to investigate the mutter, and to probe 
 where the error lay. I arranged a plan of examination, and borrowed two 
 clerks from another department to compare the ledgers with the dividend 
 sheets, to discover any excess of stock charged with dividend, and then to 
 compare the transfers with the ledgers. I remained two months longer
 
 4G4 PACTS, PATLTJEES, AND FRATJDS. 
 
 than the time first appointed for my retirement, which was in February, 
 1854, chiefly for this purpose. And on the 25th April I addressed a letter 
 to the secretary, in which I informed him, that ' the pressure of current 
 business having been disposed of, the examination (necessarily occupying 
 some time) for the adjustment of all accounts between this aud the 
 accountant's department has been resumed, and in reference to it my suc- 
 cessor will not experience any difficulty.' This letter was of course laid 
 before the board or the executive committee. I retired on the 30th of 
 April, and Kedpath, who had so deep an interest in concealment and in 
 suppressing this investigation, was appointed my successor. Before my 
 retirement he had given notice to leave the company, and that notice had, 
 I understood, been accepted. 
 
 "The discrepancy as to dividend at that time was thought to arise 
 from some extension of A stock into wrong columns, or other clerical error. 
 No one then suspected frauds ; but the investigation which I had begun 
 would have penetrated to the causes of the discrepancy. I first heard of 
 the magnitude and of the discovery of the frauds in the newspapers. I 
 immediately tendered to the secretary and chairman any information and 
 assistance in my power. 
 
 " Under these circumstances, the c statement' imposes on me a respon- 
 sibility which the facts do not warrant. It seeks to fix on me duties which 
 the board had given me Redpath and clerks to perform, and which could 
 only be performed by a staff, and it makes no reference to the investigation 
 which I left in progress, and formally noticed in my letter of retirement. 
 
 " It is necessary, finally, for me to remark, that I only saw Kedpath, 
 when I was registrar, in the offices. I had not the smallest intimacy with 
 him. I never had a pecuniary transaction with him. And I set the depart- 
 ment an example of strict abstinence from all Stock Exchange speculations. 
 The only share or stock transactions I had were the sale of two small 
 allotments of shares which were offered to me, and the profit on which was 
 not 50. 
 
 " The acknowledgment in the ' statement,' that ' no suspicion attaches 
 to Mr. Clark of his having had the remotest knowledge of the forgeries,' is 
 a bare act of justice. And I think I have shown that it is not just now to 
 attempt to impose on me responsibility for not having detected frauds, the 
 perpetrator of which was given greater power after I left to go on'concealing 
 and increasing them, and which frauds it took nearly three years to detect 
 after I had retired, although the examination which I had begun in 
 February, 1854, opened up the highway to detection."
 
 TACTS, FAILUKES, AND PBAUDS. 1G3 
 
 IHK TRIAL AND CONVICTION OF LEOPOLD EEDPATH. 
 CEXTHAL CHIMIXAL CorET, JAN. 16, 1857. 
 
 THE trial of Leopold Rcdpath, late registrar and transfer clerk to the 
 Great Northern Railway Company, for the extensive frauds alleged to have 
 bccu committed by him upon his employers, commenced at ten o'clock, 
 before Mr. Baron Martin and Mr. Justice Willes. Charles James 
 Comyns Kent, who acted as clerk under Redpath, and is accused of being 
 concerned in his fraudulent transactions, was placed in the dock along with 
 the principal prisoner ; but it was arranged that the indictment brought 
 against Redpath separately should be proceeded with in the first instance. 
 There were various counts charging the prisoners with forging transfers of 
 the Great Northern Railway Company's stock, and also with conspiracy. 
 Before the rising of the Court on the 15th, Redpath and Kent were formally 
 arraigned, and both of them pleaded " Not guilty." 
 
 The counsel engaged in the case were Mr. Serjeant Ballantine, Mr. 
 Bodkin, and Mr. Giffard for the prosecution of both the prisoners ; Mr. 
 Serjeant Parry and Mr. Tindal Atkinson for Redpath, and Mr. Hawkins 
 and Mr. Thompson defended Kent. The jury having been duly sworn, 
 
 Mr. Serjeant BAIXANTINE rose to open the proceedings on behalf of the 
 prosecutors. He said Gentlemen of the jury, although this case, like the 
 one that has just occupied this Court for several days, has excited much 
 public attention, owing to the position of the prisoner, and to the eitent of 
 the fraudulent transactions in which he has been engaged, yet the facts 
 which you will have to investigate lie within comparatively little compass, 
 and you will therefore be spared any lengthened statement from me. After 
 hearing those facts, it will be for you to say whether they make out against 
 the prisoner the charge which he has now to answer that of forging a 
 transfer of the stock of the Great Northern Railway Company. The pri- 
 soner at the bar a person of apparent respectability was in the employ 
 of the company I have named. Let me give you a brief history of hia 
 position in the company from an early date, and show you the situation he 
 held at the time of the alleged forgery. Formerly there were two lines of 
 railway connecting London with the north, one of which was called the 
 Direct Northern, and the other the London and York line. The two rail- 
 ways were managed by different boards of directors, and each of them had 
 its own secretary. After some discussion in Parliament, it was deemed 
 advisable to amalgamate the two lines, and the consequence was that one 
 of the secretaries was thrown out of the position which he originally held. 
 It was, however, thought necessary that another appointment should be 
 created, viz , that of registrar, which was given to a gentleman named 
 
 a ii
 
 466 TACTS, PAILrBES, A N i> r BAUDS. 
 
 Clark, who was previously one of the two secretaries. While in this new 
 situation the prisoner acted as a subordinate, assisting Mr. Clark in the 
 business of liis office. After some further time it was not felt desirable to 
 continue Mr. Clark any longer at his post of registrar, and the prisoner at 
 the bar, who was thought to be fitted by experience and character for its 
 duties, succeeded to this situation. The business to be done was of a very 
 complicated description. A great variety of stock had been created by 
 Act of Parliament, and dividends of different kinds and amounts were paid 
 upon them at the same periods ; and considerable calculation was requisite 
 to bring out the respective quotas of dividend to which the various classes 
 of shareholders were entitled. The prisoner wa? also necessarily acquainted 
 with all the books of the company from the date of the commencement of 
 these transactions ; and it was his duty to know who were the different 
 shareholders in the concern, the stock they held, and the amount of divi- 
 dend payable to each, and likewise to place against every name the sum 
 due to its bearer. He had thus great facilities for the commission of 
 fraud, if he were desirous of doing so. Let me now point out the trans- 
 actions in which he was concerned, and you will then be able to tell 
 whether they were forgeries or not. The charge against him is that of 
 forging and uttering a forged deed of transfer of the stock of the company, 
 viz., Ko. 3623, for a sum of 312 10s. Jt appears from an examination cf 
 the books of the company, which will ue produced before you, and ex- 
 plained by witnesses whom I shall call, that an amount of stock was 
 brought into the company's books, about the [ eriod when this forgery is 
 alleged to have taken place, in favour of a pi-v.?on named "John Morris, of 
 Manningtree, Essex." The mode in which thi~ stock was brought in will 
 be seen by reference to other books to which I shall call your attention. 
 Therst false entry is made in this form" O. B., 196, 1250." This is 
 intended to be a reference to one of the company's books called the " old 
 book," at folio 196, in which the shares are referred to as "B shares." 
 You will also find other entries of a similar nature. One of them is "A" 
 stock 2u>. 4341 ; another is " A" stock Xo. 5^70 ; and they refer to former 
 books, of which inspection must be made to ascertain the authenticity and 
 value of these entries. There are also other numbers, such as 4341, 4342, 
 and 4343, which refer to other books ; p.nd I mention them separately be- 
 cause they belong to a different description of stock from the rest. You 
 will find that the whole of this stock has been disposed of under deeds of 
 transfer. The deed to which I first called your attention, viz., 3fo. 3623, 
 for 312 IOs., would have entitled John Morris to transfer his interest in 
 that stock had he gone to a stockbroker and produced it. The person pur- 
 porting to transfer tins stock is John Morris, of Manningtree, Essex, and 
 the person purporting to attest is a man named Shaw, represented by the 
 deed to belong to the same neighbourhood. The transfer is accordingly
 
 FACTS, FAIL-CUES, AND FBATJDS. 4C7 
 
 made by the prisoner to his own name, and sold through his own stock* 
 broker. The money is paid to him for it, and there is an end of the trans- 
 action. Supposing there is any right on the part of John Morris to 
 transfer that stock, the transferee would be the person entitled to hold it 
 and he is placed on the book as the person entitled to hold it. I may 
 mention that the state of the accounts of the company attracted the atten- 
 tion of the secretary, Mr. Mowatt, not because any doubt was entertained 
 of the honesty of the prisoner, in which implicit confidence was placed, but 
 because of certain irregularities of method which that gentleman discovered 
 one day when the prisoner was away. This induced Mr. Mowatt to de- 
 mand a clear statement from the prisoner ; and, feeling it his duty to look 
 over the books to ascertain the nature of the irregularities, Redpath did 
 not make his appearance again at the office, when it was found that he had 
 gone off to Paris. Ultimately, however, he was given into custody, and 
 the inquiry instituted which has resulted in this prosecution. It was dis- 
 covered that no such persons as either John Morris or Timothy Shaw (the 
 alleged attesting witness) had any real existence, and that their names 
 were both deliberate forgeries. His Lordship will tell you that the forgery 
 of a non-existent name is equally punishable with the forgery of that of 
 any living person. But not only was it found that there were no such 
 persons as Morris and Shaw, but, on referring to the old book, in which, 
 according to the recent books, the first credit to Morris appeared, it turned 
 out that there was nothing whatever m the old book relating to Morris ; 
 that the whole account purporting to be in his name was absolutely 
 fictitious ; and its introduction into the new books an invention of Bed- 
 path's to prop up the fraud which he had committed. In five other cases 
 it was found that there were, indeed, accounts in the books, but accounts 
 referring to other people ; and that in every instance in which Morris's 
 name was used the stock belonged to other persons than the person pur- 
 porting to hold them. So that the prisoner in the one case fraudulently 
 created a new kind of stock, and in the other took stock from the rightful 
 owners, and introduced it into the books with the purely imaginary name 
 of Morris in order to carry out his criminal purpose. The amount which 
 the prisoner contrived by these means to get into the name of Morris was 
 no less than 10,000 upon these two accounts. But the prisoner is not 
 only charged with forgery, but with uttering forged transfers with a guilty 
 knowledge. To prove this I shall put in about a dozen other transfers of 
 the company's stock, by which Rcdpath swoops away the entire 10,000, 
 and also robs either the company or the individual owners of the stock for 
 whose property, according to the law on the subject, the company was 
 rejponsible. These, gentlemen, are briefly the circumstances which I hare 
 to bring before you. The case, although one of very great importance, id 
 not likely, as I have snid, to be a protracted one. I and the learned friends
 
 468 TACTS, FAILTJEES, AND FRAUDS. 
 
 associated with me will therefore now proceed to substantiate by evidence 
 the facts which I have just narrated. 
 
 Henry Atterbury, examined by Mr. BODKIN. I am a clerk in the 
 service of the Great Northern Railway Company, and have been so for 
 several years. The registration of stock did not come within my depart- 
 ment until the month of February, 1856, when I was called in to assist in 
 the business of the registrar's office in consequence of something that then 
 occurred. I produce a transfer, dated May 7, 1852, the number of which 
 is 3G23, and it purports to be a transfer from John Morris to William 
 Henry Hammond, of 312 10s. of the B stock of the company. In this 
 entry the names of Morris, the transferrer, and that of Timothy Shaw, the 
 attesting witness, are, I believe, in the handwriting of the prisoner Red- 
 path. I also produce the register- book, in which there is an entry of the 
 transfer in the prisoner's handwriting, the letters " O. B." being annexed 
 to it to denote that it is brought forward from an old book of the company. 
 On examining the old book to trace this entry, I find there no account 
 whatever in the name of John Morris, as represented in the newer book. 
 The register also contains the following other entries of transfers, yiz. : 
 No. 4340, B stock, 1250; No. 4341, A stock, 3750; No. 4342, A stock, 
 1625 ; No. 4343, B stock, 1625 ; and No. 5870, A stock, 1750. This 
 stock is placed to the credit of Moms, Morris's name being in all the 
 entries written in the handwriting of Redpath. On the credit side ot 
 Morris's account there is 5500 of A stock, and 1500 of B stock, making 
 together, between the two kinds of stock, 10,000. On the debit side of 
 the account there is an entry of a transfer from John Morris to W. H. 
 Mote, dated May 7, 1852, of 437 10s. in B stock. Timothy Shaw is here 
 again the attesting witness, and his name and that of Morris are in Red- 
 path's handwriting. Next comes No. 3573, 125 B stock, purporting to 
 be a transfer from Morris to a person named Proader, dated May 7, 1852, 
 and Shaw's and Morris's names are in the prisoner's handwriting. No. 
 3591 is a transfer from Morris to George Wise, 7th of May, 1852, of 50 
 B stock ; No. 3623 is a transfer from Morris to Bennet Pell, 7th of May, 
 1852, of 287 B stock. To these Shaw is again attesting witness, and his 
 and Morris's names are in Redpath's handwriting. The case is the same 
 with regard to entry No. 3663, being a transfer of 37 10s. B stock. Next 
 comes a transfer of 1250 of B stock from Morris to J. Hardy, 16th of 
 September, 1852. The attesting witness in this case purports to be 
 " George Sidney, Hampstead Road," and his name and that of Morris are 
 in the prisoner's handwriting. No. 5697 was a transfer of 2500 A stock 
 from Morris to one named Marryatt. Xo. 5713 is a transfer from Morris 
 to a person called Pierce, 30th September, 1852, of 75 A stock. No. 575G 
 i a transfer of 200 A stock from Morris to Seager. No. 5776 is a trans- 
 fer of 62 10s. A stock from Morris to Figgins, 30th September, 1852.
 
 FACTS, FAILTJBES, ASD mAUDS. 4CO 
 
 No. 6109 is 1623 B stock, another transfer from Morris, dated llth of 
 October, 1S52. No. 0333 is a transfer from Morris to Burchell of (^3 B 
 stock, dated November, 1S52. No. 6700 is another transfer from Morris 
 of a sum of 1750 of A stock. In the whole of these entries the name of 
 George Sidney appears as attesting witness, and that name, and the name 
 of Morris in each case are, I believe, in Redpath's handwriting. The wit- 
 ness then detailed other entries of a similar nature in the transfer-book, in 
 which the names of Morris, and also of the subscribing witness, were in tho 
 prisoner's handwriting, the result of his evidence being to show, that the 
 total amount of the fraudulent entries upon both sides of Morris's account 
 alone was 17,600, or 9350 in A stock, and 8250 in B stock. 
 
 The witness was then cross-examined by Mr. Serjeant PABBY, in answer 
 to whom he said There is a share register kept by the company, in ac- 
 cordance with the Act of Parliament. I have been in the registrar's office 
 since February last. Redpath was at the head of that office. My services 
 were "lent " to the registrar's office by Mr. Eeynolds, the accountant. In 
 that office there are sis other clerks besides myself. Some of them have 
 been there longer than I have. 
 
 Mr. Serjeant PABBY. Have you not been brought forward as a witness 
 because you know less of these transactions than any of tho other clerks ? 
 
 Witness. I have not. 
 
 "Will you swear that you have not been called for that reason ? I will. 
 The greater part of the entries in the old book are in the prisoner's hand- 
 writing. 
 
 Mr. Serjeant PABBT. Let me call your particular attention to the sig- 
 natures of John Morris and Timothy Shaw. Will you swear, without 
 hesitation, that these signatures arc in Redpath's handwriting ? 
 
 Witness. I will. 
 
 Look at the entries numbered from 4-340 to 4313 both inclusive, and 
 tell us whether you can swear that you have not a shadow of a shade of 
 doubt that tho names are in the handwriting of the prisoner ? I can swear 
 that I have no doubt about it. 
 
 Did you ever see the prisoner write ? I have, frequently. I have taken 
 a great many documents to him, and seen him write upon them. 
 
 Is the signature of Hammond in Redpath's handwriting ? No ; it is 
 Mr. Hammond's own writing. 
 
 Then it is a genuine signature ? It is. 
 
 Of the three subscribing witnesses you swear, then, to the names of two 
 of them being in the prisoner's handwriting? I do. 
 
 Have you ever known mistakes to bo made in the register of transfers? 
 There have been mistakes, no doubt. 
 
 In the entry of a transfer did you ever omit the name of a purchaser? 
 I never did.
 
 470 PACTS, FAILURES, A1S T D FRAUDS. 
 
 Do you know whether such things hare ever been done by the other 
 clerks ? I do not. 
 
 You are aware that the Act of Parliament requires the transfers of 
 stock to be endorsed by the secretary ; and can, therefore, tell us whether 
 any of the transfers in question have been endorsed by Mr. Mowatt ? They 
 certainly have not been so endorsed, but they are numbered according to 
 the numbers in the register. There are five different kinds of stock be- 
 longing to the company, besides the A and B stock. 
 
 Has the secretary never endorsed them according to the Act ? I be- 
 lieve not. He has never written his name upon them. All the transfers 
 are entered in the transfer receipt book, and it is some one's duty to verify 
 them. All the transferees of this transferred stock have been receiving 
 dividend from the company ever since the year 1852. I know several of 
 the directors of the Great Northern Company. I know Mr. Graham 
 Hutchinson, for instance, and Mr. Denison, the chairman. I also know 
 Mr. Reynolds, the accountant of the company. 
 
 Don't you know that all these gentlemen have held stock in the com- 
 pany in fictitious names ? I do not. 
 
 Don't you know that they have all held stock in different names to their 
 own ? I know that some of them have. 
 
 Don't you know that some of them have held stock in one, two, and 
 three different names to their own ? I do not. 
 
 Have you ever lent your name to a director ? No. I do not know of 
 any of the other directors holding stock in different names to their own. I 
 never borrowed money from Redpath but once. That was in July of last 
 year. I owe him 17. I intend to repay him: 
 
 Are you aware whether Mr. Eeynolds, the accountant, ever borrowed 
 money from the prisoner ? I am not. 
 
 Do you not know that he has borrowed to the extent of 12,000 from 
 Redpath ? I do not. I was never in a position to know it. 
 
 Do you find Mr. Reynolds's name in the company's books ? I do. 
 Do you not know that his name is down in the company's books to the 
 amount of from 50,000 to 100,000 ? I do not. 
 What, then, is the amount ? I don't know. 
 
 Do you know whether or not these were Mr. Denison's shares ? No, 
 I do not. In 1852 Redpath kept the ledger as clerk in the registrar's 
 office. 
 
 Re-examined by Mr. BODKIN Hammond is a friend of Redpath's. He 
 held no ofEce in the company. I have seen him. He is about twenty-five 
 years of age. I intended to repay Redpath by over-time for the money I 
 borrowed temporarily from him. 
 
 John Cawkill, examined by Mr. GIFFAED. I am a clerk in the employ 
 of the Great Northern Railway Company, and have held that situation for
 
 FAC, ES, AKD miUDS. 471 
 
 eight years. I have had many opportunities of seeing Rcdpath's hand- 
 writing. The signatures of Morris " and " Timothy Shaw," in the trans- 
 fers now produced, are botii in tho prisoner's handwriting. 
 
 Cross-examined by -M ' PABBY. I am not aware of mistakes 
 
 being ever made in the books by the omission of the name of the vendor 
 or the purchaser of stock. I swear that I believe the names of Moms and 
 Shaw in warrant Ko. 3G-':>. iu>u in my hand, arc both in the prisoner's 
 handwriting. The transfers all boar the official stamp of the company; 
 and when a transfer is t.-n; to the officer, a certificate is issued to the 
 buyer. The certificates are i~.-u.nl by the registrar, and not by the secre- 
 tary ; but the name of the >< ciftary appears upon them, on the brand. This 
 brand ia not affixed in the s-eeroUry's office. 
 
 Do you mean that : .0 pleases can affix the brand with the 
 
 secretary's name upon it ! >. Any one can do it who is in the office of 
 the transfer registrar. 
 
 Have you ever dealt ii No. 
 
 Re-examined by Mr. s . J.LAXTISE. A transfer is not endorsed 
 
 by the secretary, but h:i- . upon it corresponding with the receipt- 
 
 book. 
 
 Henry James Wood, of the linn of Field, Son, and Wood, then deposed 
 that he had acted as broker to Kodpath, and proved that he had sold the 
 Northern stock Xo. 'MW at the request of the prisoner, and paid 
 over the proceeds to him. 
 
 Cross-examined by M - ..(, PABRY. Redpath has speculated in 
 stockforthelasteightye.ii-- \\ conducted the business for him. His 
 transactions with us were t<> a i:ir^e extent. 
 
 Perhaps they reacbcu Xo ; they were not so extensive as 
 
 that. The prisoner tf !-o in the stock of the Great Indian 
 
 Railway. 
 
 Did he make money Ves, to a considerable amount. 
 
 Did his gains amount t.. '. M. 1 .<*) or so? Jo; some hundreds of pounds 
 would be nearer tho mark. 
 
 Thomas Morris exainim-d. 1 itoide at Wix, near Manningtree, 
 I never heard of any po M-n nuinod John .Morris living there. J 
 held any of the stock of ; Northern Railway Comii-niy. 
 
 Cross-examined. \Vii i> about four miles from Muuuingtree. 
 ningtree has about 1100 inl< 
 
 William Rayner examiiml. 1 liavc lived at Manningtree for the last 
 seventeen years, and was po-< nuMrr of that place in 1852, as well as aeaist- 
 ant-clerk to the magistrate, cl-rL to the Commissioners of Taxes, and 
 registrar of births, deaths, sun I marriages for tho division. No person 
 named John Morris lived llu-n . I should have known of it if he !. 
 
 Cross-examined. I d >n 'i _ . ! judy iu Manningtree partieulnrly
 
 472 FACTS, TAILrBES, AXD FBAT7D3. 
 
 (laughter), but I don't think there are fifty people there with whom I am 
 not more or less acquainted. 
 
 Mr. Thomas W. Count, the overseer of Manningtree, was also called 
 to show that there were no such persons as Morris and Shaw residing in 
 that parish. 
 
 This concluded the case for the prosecution. 
 
 Mr. Serjeant PABBY then addressed the jury on behalf of the prisoner. 
 He said Gentlemen of the jury, it is now about twenty-six years since 
 the first, railway made in England that between Manchester and Liverpool 
 was opened to the public, and you will all remember that on that occa- 
 sion the country was deprived by an accident of the services of an eminent 
 statesman, Mr. Huskisson. That is far from being the greatest calamity 
 which has been brought upon this country by the establishment of railways. 
 In themselves the iron roads have been of the greatest service to the public, 
 but those who have had the management and direction of them have been 
 parties to the perpetration of frauds to an enormous extent, and, by the 
 spirit of gambling and speculation which they have introduced, have been 
 the ruin of thousands of families, and if your verdict against the prisoner 
 at the bar should be " Guilty," it will be his ruin also. He entered the 
 service of the Great Northern Railway Company about eight years ago, 
 and, as is clear from the reluctant evidence of Mr. Atterbury, he found in 
 the office of the company a wide-spread system of speculation and of trad- 
 ing in shares and stocks under other people's names under names not 
 unfrequently entirely fictitious. Whatever the opinion of the directors of 
 the railway may be on this point, I have no hesitation in saying that such 
 a mode of carrying on business is a deliberate fraud upon the public, and, 
 however this investigation may terminate, there is not the slightest doubt 
 that Mr. Redpath has been brought into this position entirely by the un- 
 fortunate circumstance of his becoming a clerk in the Great Northern 
 Eailway Company. I have had great difficulty in eliciting from the wit- 
 nesses evidence which would warrant these observations, because the prose- 
 cution has carefully kept back every official of the company, every clerk in 
 the registration office, who could have told you whether these fraudulent 
 dealings in shares and stocks do go on or not. Only two witnesses were 
 called to prove the handwriting of Redpath. Mr. Mowatt, the secretary of 
 the company, is here, but they dare not call him. I do not know whether 
 any of the directors are here or not, but I should have liked to have some 
 of them in the witness-box that I might have asked them whether it is true, 
 as the witness Atterbury admitted he knew from inspecting the books, that 
 several of the directors hold shares and stock in other persons' names. We 
 ought to have had some person called before us who would have been able 
 to state whether this is not the case, and whether the directors are not in 
 the habit of putting stock in other people's names in order to prevent its
 
 FACTS, FAILUBES, AND FIIATTDS. -173 
 
 being depreciated, by its being known on the Stock Exchange that the 
 stock in the market in reality belongs to the company. If Mr. Rcdpath is 
 guilty of the offence with which ho is charged, he has been led to his ruin 
 by living in the atmosphere of gambling and speculation, which exists in 
 the Great Northern Railway Company's offices. But is Rcdpath guilty ? 
 There can be no doubt that no such person as John Morris of Manniugtreo 
 exists ; but I think you will have great difficulty in coming to the conclu- 
 sion that both the signatures to this transfer, John Morris and Timothy 
 Shaw, are in Redpath's handwriting, and if you doubt that both are, you 
 must come to the conclusion that neither is. Mr. Atterbury, indeed, has 
 sworn that they both are, but he is evidently actuated by some animosity 
 against Redpath, and you must have noticed that he gave his evidence in 
 anything but that cautious, careful manner which is usually displayed by 
 witnesses to handwriting. Ho was confident, he had no doubt whatever, 
 though at the best he can have nothing more than a belief on the subject, 
 for he did not see Redpath write it. Why did not the company produce 
 before us, to prove Redpath's handwriting, some witness who had the op- 
 portunity of knowing it better, and not a clerk who has been in the regis- 
 tration office some twelve months, carefully passing over five or six others 
 who have been in the office for years ? These, I submit to you, are cir- 
 cumstances which should make you pause before you come to the conclusion 
 that the signatures to those two deeds are in Redpath's handwriting. But, 
 gentlemen, I would ask you, are you at all satisfied that these are not trans- 
 fers of genuine stock ? A variety of accounts have been placed before you 
 in Redpath's handwriting, but I think you will find great difficulty in con- 
 cluding from them that this transfer does not represent genuine stock. 
 The Act of Parliament requires that every transfer should be taken to the 
 secretary's office and there endorsed by the secretary, but there does not 
 appear to have been any procedure of the sort in the Great Northern Rail- 
 way Company's office. The company has systematically violated the law 
 in that respect. One of the transfers is in the name of Stephen George 
 Hammond ; he is a living person ; why has he not been called before you 
 to give us an account of this transaction ? Gentlemen, I am sure you will 
 not allow yourselves to be made the instruments of sacrificing Redpath to 
 cover the irregularities which it is clear, if Atterbury is to bo believed, are 
 carried on in the office of the Great Northern Railway of making him the 
 scapegoat for the directors and other officials. I have not condescended 
 to ask you to dismiss from your minds the stories which have been current 
 as to Mr. Redpath's past career. They are all gross exaggerations. I am 
 instructed to give to them all a most peremptory denial. He is a man who 
 for years has speculated on the Stock Exchange in hundreds and thousands 
 of pounds. Had not this case excited so much public attention, it would 
 not have lasted so long as it has, for the facts of it lie in the smallest pos-
 
 474 PACTS, FAILURES, AND FRAUDS. 
 
 eible compass, and in your hands I leave it, confident that it will reseive 
 from you all the attention which its importance to the prisoner and to the 
 public at large demands. 
 
 Mr. Justice WILIES then proceeded to sum up the evidence. The 
 question for the jury to decide would be, whether the instrument before 
 them was a real or a fictitious transfer of stock belonging to the Great 
 Northern Railway Company, and whether it had been executed by the pri- 
 soner for the purpose of defrauding the Great Northern Railway Company, 
 or the person to whom the transfer was made. With reference to the ques- 
 tion of intention, if the jury should be of opinion that the transfer was 
 fictitious, that would of itself be sufficient to show fraudulent intention, 
 because either the company would have to make good to the transferred the 
 amount of stock which it purported to represent, or the transferred would 
 have to suffer the loss of the sum which he had paid in consideration for 
 it. One party or the other must be defrauded. Then would come the 
 question whether or not it was made by Redpath. His Lordship then 
 briefly directed the attention of the jury to the evidence adduced by the 
 prosecution to show that 110 such stock as that purported to be transferred 
 did in reality exist in the books of the company, and also to the evidence 
 to prove the non-existence of any such persons as Morris and Shaw. As 
 to the question whether the transfer was executed by the prisoner, it would 
 be for the jury, with the document itself before (hem, to consider whether 
 they were satisfied with the evidence of those witnesses who had sworn that 
 the signatures to it were in the prisoner's handwriting. If they were, and 
 if they should at the same time be of opinion that the transfer was not a 
 transfer of genuine stock, it would be their duty to find the prisoner 
 guilty. 
 
 The jury, after a few minutes' deliberation, without leaving the box, 
 returned a verdict of Guilty. 
 
 Charles James Comyns Kent was then placed at the bar, and the two 
 prisoners were put on their trial together, for jointly forging and uttering 
 a transfer of stock of the Great Northern Railway Company, purporting to 
 be of the value of 1087 10s., with intent to defraud. 
 
 Mr. Serjeant BALLASTIXE briefly opened the case, wliich, he said, as 
 regarded Redpath, closely resembled that on which he had j ust been found 
 guilty. The prisoner Kent was a clerk in the office of the Great Northern 
 Railway Company, immediately under Redpath, and the charge against him 
 was that he had placed his name as attesting witness to forged transfers of 
 stock, well knowing at the time he did so that they were forged. The 
 particular transfer for which they were now placed at the bar purported 
 to be from " Stephen George Hammond," described as of Barge Yard, 
 Bucklersbury, to a person named George Sidney, of 20, Edward Street',
 
 FACTS, FAILURES, A^D FRAUDS. 475 
 
 Hampstead Road. Tbis transfer was an entirely fictitious one. Sidney 
 would be shown to be an entirely fictitious personage, and it would be 
 shown, also, that the attestation to this transfer was in the prisoner Kent's 
 handwriting. Stephen George Hammond, however, was a real personage. 
 He was a godchild of Redpatb, and his name, it would appear, had been 
 used very extensively in the books of the company as the holder of the 
 stock. About the time when this transfer was made, a certain amount of 
 dividend would have been payable on what 'purported to be Hammond's 
 stock, but, it not suiting Redpath's purpose that Hammond's name should 
 be brought forward, an amount of stock, which was purely fictitious, was 
 transferred from Hammond's name, and in this manner his account was 
 exactly balanced, so that he had no dividend to receive. Kent was a party 
 to this transaction by signing his name to the transfer, and the fictitious 
 stock so created and transferred was sold by Redpath, and the purchase- 
 money received by him. The whole transaction was a juggle concocted 
 between Redpath and Kent. For the purpose of showing that Kent had 
 been in the habit of attesting transfers of this description, he should put 
 in several transfers to a fictitious person called Spranger, which were for- 
 geries of Redpath, and which were also attested by Kent. The question 
 for the jury to decide would be, whether it was possible for Kent not to 
 have known that these transfers were fictitious, and were concocted for the 
 purpose of defrauding the company. If so, it would be their duty to con- 
 vict him of the offence of forgery. 
 
 Mr. Baron MABTCT said it would be desirable that the evidence in this 
 case should be confined strictly to Kent's share in the transaction. 
 
 Henry Atterbury, clerk in the service of the Great Northern Railway 
 Company, examined by Mr. BODKIN, said The transfer produced purports 
 to be a transfer of stock in the Great Northern Railway Company to the 
 amount of 1087 10*. from Stephen George Hammond, of Barge Yard, 
 Bucklersbury, to George Sidney, of 20, Edward Street, Hampstead Road. 
 It is numbered 1G,77 k The signature " Stephen George Hammond " is 
 in Redpath's handwriting, as is also the signature "George Sidney." 
 Charles Kent is the attesting witness to the signature of George Sidney, 
 and the signature " Charles Kent " is in the prisoner Kent's handwriting. 
 In the ledger of the company I find entries in Redpath's handwriting of 
 $tock transferred from Hammond to Sidney, which correspond with the 
 transfer. The transfer came into the office on the 10th of February, 1855 ; 
 and the books closed on the 6th of February. It exactly balanced Ham- 
 mond's account at the time. Redpath at that time had oversold his own 
 account to the amount of 2315. The various transfers produced purport 
 to be from Leopold Redpath to Robert Jeffries Spranger, of Hursley, near 
 Winchester. The signature of Spranger in every one of them is in the 
 handwriting of Redpath, and the attesting witness is the prisoner Kent.
 
 476 PACTS, FAILURES, AND FRAUDS. 
 
 Mr. Serjeant PAKBY said, that after the intimation just given by his 
 Lordship, he should not think it necessary to cross-examine any of the 
 witnesses on behalf of the prisoner Eedpath. 
 
 Atterbury, cross-examined by Mr. HAWKINS (for Kent), said I was 
 not aware that Eedpath had stock in the Great Northern Railway Company 
 standing in various names until the commencement of this investigation. 
 There are in our books thirty-three transfers of stock in the name of Sid- 
 ney, and the signatures are all in the same handwriting. Some of them 
 are attested by Kent, some by Eedpath, and some by Cawkhill. There 
 may be some attested by other persons, but without going through the 
 transfer-book I cannot tell. I have heard in the office that some of the 
 directors hold stock in other names besides their own. I have heard that 
 Mr. Graham Hutchinson, a director, holds stock to the amount of 100,000 
 in other persons' names, but I do not know that that is so of my own know- 
 ledge. Spranger's transfers were not mentioned at Clerkenwell. There 
 was some objection on the part of the officers of the company to produce 
 the register-book at Clerkenwell. I have never posted entries in the ledger 
 to the name of Sidney. I have been in the employ of the company since 
 1851. I do not know what Kent's salary was. At the office he was con- 
 sidered a steady respectable young man. He was very attentive to his 
 duties, and he was a great favourite with all the officials. I do not know 
 of my own knowledge that on one occasion Kent had a gratuity presented 
 to him for good conduct. Kent was married shortly before he was appre- 
 hended on this charge. 
 
 Ee-examined by Mr. BODKIN. The counsel for the prosecution offered 
 at Clerkenwell to produce all the documents relating to this charge, but he 
 declined to produce any others. 
 
 Stephen George Hammond, examined by Mr. Serjeant BALLASTTINE. 
 I reside at 46, Gower Place, Euston Square, and am of no business or 
 profession. I am twenty years of age. I am no connection or relation of 
 Eedpath's, but I have lived in his house on and off for three or four years. 
 The signature to the transfer numbered 16,774 is not in my handwriting. 
 I knew nothing of it, and never myself put any money into the Great 
 Northern Eailway Company. I never received any money for that transfer. 
 
 Cross-examined by Mr. HAWKINS. I knew that there was stock standing 
 in my name, and I knew that it was Eedpath's stock. He has told me on 
 several occasions that he has put stock in my name. He has told me also 
 that he had stock standing in the name of Sidney, and I have seen a 
 transfer in that name. 
 
 Have you yourself signed transfers ? 
 
 Serjeant BALLANTINE objected to the question. 
 
 Baron MARTIN. Do you mean as a principal or as a witness ? / - 
 
 Mr. HAWKINS. As a principal. , _t
 
 FACTS, FAILURES, AND FBAUDS. 477 
 
 Baron MABTHT. If the question is objected to, you cannot put it, 
 although it is often asked without being objected to. 
 
 Cross-examination continued. I have myself been asked to execute 
 transfers. 
 
 Have you refused to do so ? 
 
 Serjeant BALLANTINE objected to this question, that any conversation 
 between the witness and another person was not evidence in this cause. 
 
 The Court ruled that the question might be put. 
 
 Cross-examination continued. I have not refused to do so. 
 
 Has Redpath told you that he has signed transfers in your name ? 
 
 Serjeant BALLAifTnre again objected. 
 
 Baron MARTIN. Redpath and Kent are charged with forging a certain 
 transfer, No. 16,774, purporting to be from Hammond to Sidney. The 
 question is clearly admissible. 
 
 Cross-examination continued. I do not remember Redpath ever having 
 told me so, but I will not swear that he has not. If he had told me so 
 half a dozen times I should have remembered it. I cannot swear whether 
 he has told me so a dozen times. I don't remember his ever having told 
 me so. I can't say I was frequently at the office of the Great Northern 
 Railway. I used to go there to see Redpath. It might have been about 
 stock and shares. It was not always. Was it generally ? Well, I have 
 been there to see him about stock. I couldn't swear how many times I 
 have been there to see him about stock. I am not a speculator in stock or 
 shares at alL I had some mining shares given me by Mr. Redpath. I had 
 no means of existence myself. Mr. Redpath partly brought me up and 
 educated me. He educated me from 1850 to 1852. After 1852 I was a 
 clerk in a mining company. 
 
 Re-examined. I have not seen Mr. Redpath in Newgate, nor have I 
 had any communication with him, his solicitor, or his solicitor's clerk upon 
 this subject. 
 
 Robert Mayland, of No. 20, Edward Street, Hampstead Road, de- 
 posed, in answer to Mr. GIFFAED, that he had lived in his present house 
 for the last twelve years. That there was no other No. 20 in the street, 
 and that no one named George Sidney had ever lived there. About eight 
 or nine years ago the prisoner Redpath himself had resided there. 
 
 The Rev. Robert Jefleries Spranger, examined by Serjeant BALLAW- 
 TlSE. I reside at Hursley, near Winchester. I have no stock in the 
 Great Northern Railway. The transfers produced, purporting to be in my 
 handwriting, arc not signed by me. Neither are they signed by my father, 
 who died in February, 1850. 
 
 Mr. J. R. Mowatt, examined by Mr. BODKIX. I am secretary to the 
 Great Northern Railway Company. Redpath was originally a clerk in the 
 registration department, but about three years ago ho succeeded to the
 
 478 PACTS, FAILTJEE3, AtfD TEAUDS. 
 
 head of the transfer department, and Kent was then appointed chief clerk. 
 During Mr. Eedpath's temporary absence it would be Kent's duty to 
 conduct the department. 
 
 Cross-examined by Mr. HAWKINS. There were altogether five clerks 
 in the transfer department : Eedpath, Kent, Cawkhill, Freeman, and 
 Fleming. I knew latterly where Eedpath lived, but I was never on visiting 
 terms with him certainly not ; neither were any of the directors, so far as 
 I am aware. Kent had been in the office for seven or eight years. During 
 the whole of that time his conduct had been tolerably good, but, being a 
 youngster, it was necessary occasionally to give him a little good advice, 
 and I, being an oldster, gave it him. Eedpath was living in very good 
 style I believe at Eegent's Park; but I know no more about it than 
 you, sir. 
 
 This was the case for the prosecution. 
 
 Mr. HAWKINS then addressed the jury on behalf of Kent. He said he 
 had always thought when a serious charge was preferred against any indi- 
 vidual, more particularly when it was preferred against a young man in the 
 position of the prisoner at the bar, that the fair and candid mode of pro- 
 cedure on the part of the prosecution was to lay before the jury every 
 particle of evidence which could by possibility tend to throw any light 
 upon the transaction; because a man in Kent's position was placed in 
 many instances in almost insuperable difficulties. The policy of the law 
 forbade a man who was put upon his trial on a criminal charge going 
 into the witness-box to give upon oath his own account of the transaction. 
 However anxious, therefore, such a person might be that the jury should 
 know everything, his mouth must be closed, and he must rely for his 
 defence upon the feeble exertions which his advocate might make on his 
 behalf. He (Mr. Hawkins) now appeared for the young man at the bar, 
 who was just entering upon what he might term the spring of life. He 
 had been in the service of the Great Northern Eailway Company from the 
 time that their office was first opened at King's Cross. He had from that 
 hour until the time when he was arrested, on the llth of November, 
 enjoyed the good opinion and entire confidence of every one who had the 
 least connection with the railway. He had not done anything to abuse 
 that confidence, and it was to his counsel a matter of extreme satisfaction 
 that when he should sit down he woxud be followed by a crowd of witnesses, 
 all of them gentlemen of the highest respectability, who had known the 
 prisoner almost from his infancy, and who would testify with the utmost 
 satisfaction that they believed him to be a man of unsullied character, 
 whose honour and integrity were still unirnpeached. The charge against 
 the prisoner was for combining with Eedpath to forge a certaiu transfer 
 purporting to have been executed on the 10th of February, 1S55, by 
 Stephen George Hammond to George Sidney, to which transfer he, Kent,
 
 FACTS, FAILURES, AND FRAUDS. 479 
 
 was the attesting witness. The signatures of Hammond and Sidney were 
 proved to have luvn in the handwriting of Kedpath; but it was his (Mr- 
 Hawkins's) duty to satisfy the jury that Kent had no fraudulent design in 
 attesting those signatures, and that there was really no pretence for in- 
 cluding him in this indictment. His learned friend, Serjeant Ballantine, in 
 opening the case, had said that he would prove that these documents were 
 concocted for fraudulent purposes, and that Kent must have perfectly well 
 known the state of Hammond and Sidney's accounts. His learned friend, 
 however, had failed to prove anything of the sort ; he had not called a 
 single witness to show that there was one line of Kent's handwriting in 
 any of the books produced, and he (Mr. Hawkins) contended, therefore, 
 that there was no pretence for tho'opening statement of his learned friend, 
 that Kent had a full knowledge of the books, nnd that he concocted the 
 fraud in conjunction with Eedpath. He contended that upon the evidence 
 there was no proof of intent upon the part of the prisoner. He was a 
 young man in an office over which Eedpath presided ; it was his duty to 
 obey Bcdpath ; the directors of that great company had placed the most 
 implicit confidence in Eedpath ; he had had power and control to an 
 almost unlimited extent over those documents, and he had been allowed to 
 continue his practices for years undetected by the auditors and the board. 
 Suppose, then, that Eedpath had told Kent that he possessed this stock, 
 that he held it in the name of Sidney, that he had a right to transfer it, 
 and that he had a right to sign the name he assumed ; suppose, too, that 
 he added that he was doing no wrong, but that he was doing only what 
 some of the directors had done one of them to the extent of 100,000 
 what would the clerk naturally do when so addressed, and when asked in 
 the course of his duty to attest the signature? The young man had been 
 taught to obey and to respect Mr. Eedpath, and no doubt he would with 
 perfect innocence do as he was directed. A thousand suggestions might 
 be made to show that the attestation was perfectly innocent; and he was 
 told that in stockbroker's offices it was the constant practice for attesting 
 witnesses to sign documents of this description, without being acquainted 
 with the signature of the principal. Not a shadow of motive had been 
 suggested in this case which should induce Kent to join in a fraud of this 
 description, and without an " intent" proved there must be an end to the 
 case. Moreover, it was not likely, if Kedpath had concocted those docu- 
 ments for the purposes of fraud, that he would have divulged his scheme 
 to that young man, and have made him a guilty confidant without giving 
 him also a share in the plunder. There was no pretence for any such 
 supposition; but if the jury believed that Kedpath had himself fraudu- 
 lently concocted these documents for his own purposes, was it not eqmlly 
 probable that he should impose upon Kent some argument to induce him 
 to become the attesting witness ? The learned counsel concluded with on
 
 480 TACTS, FAII/CEES, A5TD rBATTDS. 
 
 impassioned appeal to the jury to restore the young man at tLe bar to 
 society, with as spotless a reputation and as unsullied a character as it had 
 been his pride hitherto to have maintained. He had earned for himself the 
 confidence of those who for years had had an opportunity of judging of his 
 actions. The good character which he had acquired had never yet been 
 forfeited ; and, looking at all the circumstances of the case, he trusted with 
 confidence that the jury would say that the charge had not been proved to 
 their satisfaction. 
 
 The following witnesses were called to character namely, Mr. John 
 George Hammack, of Box Hill, Surrey, a magistrate of the county of 
 Middlesex, who had knov, n Kent almost from infancy ; Mr. William Henry 
 Hawkins, a stockbroker and magistrate, residing at Reigate ; Mr. Gole, 
 solicitor, of 49, Lime Street, City, who had known him for fifteen or sixteen 
 years; Mr. Sewell, raiding at Clapham Rise, Surrey; Mr. Thomas 
 Ventom, auctioneer, Throgmorton Street, City ; Mr. T. Baddeley, solicitor, 
 Leman Street, Goodman's Fields ; Mr. J. Church, wholesale grocer, East- 
 cheap ; Mr. T. Ansell, surgeon, Bow ; Mr. R. Collingwood, accountant to 
 the East India Company, who had known him from childhood ; and the 
 Rev. "W. C. Izard, head master of the Stepney Grammar School. 
 
 Mr. Baron MAETIN then briefly summed np. With regard to Redpath 
 lie said that he thought the jury could have very little doubt that he was 
 guilty of the offence with which he had been charged. As to the ob- 
 servation of counsel that the practice of having stock in other persons' 
 names had been resorted to not only by Redpath but by some of the 
 directors, he must observe that there was no evidence whatever to justify 
 such an observation. One could imagine, however, why a director should 
 have stock standing in the name of other persons for various reasons ; for 
 example, that he might not appear to be selling out stock, which might 
 possibly create an alarm among people on the Stock Exchange, and 
 the directors might therefore sometimes have friends who authorized them 
 to hold stock in their names ; but that was a very different thing from 
 holding stock in the name of a non-existing and fictitious person alto- 
 gether, such as the supposed " George Sidney." With regard to Kent the 
 case was wholly different. He was not prepared to say, if Kent had lent 
 himself to be an attesting witness, knowing that forgery was about to be 
 effected, that he would not have been amenable to this charge ; but before 
 they convicted him they must be satisfied that he really knew and was 
 aware of what Redpath was doing. If Redpath had said, " This is my 
 account, but it will not do for my name to appear; I have therefore made 
 use of the name of Sidney, I am the real Sidney, and I sign his name, 
 and you must attest my signature," surely such attestation upon the part 
 of Kent could not be called a forgery. It was no doubt a very wrong and 
 irregular act ; but if he really believed that he was attesting a document
 
 TACTS, FAILURES, A.KD FEA.UDS. 481 
 
 for the transfer of stock which belonged to the principal of his office, and 
 which he held in the name of Sidney, he would not be guilty of forgery. 
 To convict him of forgery they must bo satisfied that he had acted ia 
 concert with Reclpath, and of that there had been no proof. With respect 
 to the witness Cawkhill, it appeared that he was the attesting witness to 
 two of these documents, and it certainly did seem extremely odd that Kent 
 should be prosecuted and Cawkhill escape, for Cawkhill had done precisely 
 the same act as the other young man. When an attesting witness was 
 charged with forgery, it was the very essence of the charge that he should 
 be cognizant of the crime that he was committing, and that he should 
 commit it with intent to defraud. No such intent had been established in 
 this case ; twelve or thirteen most respectable -witnesses had given the 
 young man as good a character as he could possibly have, and he thought 
 that the jury were now quite competent to come to a conclusion upon the 
 case without any further observations from him. 
 
 The jury, without quitting the box, immediately returned a verdict of 
 Guilty against Redpath, and of Acr[inttal as regarded Kent. 
 
 Mr. Serjeant BALIAKTIXE said that there were other indictments for 
 forgery against Redpath, which it was unnecessary to proceed with. There 
 were also others against Kent, but, as he had noticed his Lordship's ob- 
 servations and the view which the jury had taken of the facts against Kent, 
 and as those which ho should be able to prove in the other indictments 
 were of exactly the same character, he should not proceed with them. 
 There was, however, an indictment for misdemeanour, involving a great 
 number of transactions in the office in which Kent and Redpath were 
 charged with being engaged together; and ho should like to have an 
 opportunity of consulting with his learned friends who were engaged with 
 him in the prosecution as to whether he ought to proceed with that indict- 
 ment. He suggested, therefore, that the matter should stand over till tho 
 next sessions, Kent entering into his recognizances to come up at that 
 time. 
 
 Mr. Justice WILLES. I think that you ought to have put your best 
 leg forward. I have read the whole of tho depositions, and I must say 
 that I anticipated the result. 
 
 Serjeant BALLANTIXE. Felony is considered a "better leg" than rnia- 
 demeanour. We always try the gravest charge first. 
 
 Mr. Baron MABTnf. I had very great doubt myself whether there was 
 any case to go to the jury. But take your own course. 
 
 Mr. HAWKINS. It is a fearful thing for a young man to have a charge 
 like this hanging over his head for another month. 
 
 Serjeant BALLANTIXK. Then, if my friend objects to my proposition, 
 I xnu^t go on with the case. 
 
 At this moment Mr. Beckett Dcniaon, the Chairman of the Great Noi> 
 
 I I
 
 482 TACTS, FAILTJBES, AIS'D F3AUDS. 
 
 them Railway Company, entered the court, and made an intimation to Mr. 
 Ballantine, who thereupon said that a communication bad just been made 
 to him, which he had received with much satisfaction. The responsibility 
 of proceeding with the case or not had been left entirely with himself, and 
 he willingly accepted that responsibility, and withdrew from the prosecu- 
 cution. (The announcement was received with unmistakable signs of 
 applause by the crowded court, and Kent immediately quitted the clock.) 
 
 Mr. T. ATKINSON said that he had been requested to state that between 
 40,000 and 50,000 worth of property had been realized from Redpath's 
 estate, and was now in the hands of the company. It was a larger sum 
 than was involved in the defalcations which he had been guilty of. 
 
 Air. Justice "\YiLLES. This is not a case in which a "set-off" can be 
 pleaded. 
 
 Mr. Serjeant BAILASTINE. It is a most monstrous assertion altogether. 
 
 Mr. Justice WILLES then proceeded to pronounce the sentence of the 
 Court. He said Leopold Redpath, you have been convicted of forging a 
 deed, an offence of a most serious character, considering that people's pro- 
 perty and their livelihood in so many instances depends upon the validity 
 of instruments of that description. The mere fact of forging a deed relat- 
 ing to property is of itself a most serious offence. That, however, is not 
 the end of the crime of which you have been convicted. You must, in the 
 course of the forgeries and frauds which you committed on the Great Nor- 
 thern Eailway Company, have led into situations either of guilt or of strong 
 suspicion other persons who are now suffering from your bad example and 
 bad advice. I think it necessary, in consequence of a suggestion which was 
 made by the learned counsel for Kent, with reference to the part which he 
 took in putting his name to the deed as an attesting witness, to say that 
 this is a most irregular and wrong thing to do. He did it no doubt 
 thoughtlessly, acting under your bad advice, not thinking what he \vas 
 about, and not reflecting that he was adding to a solemn instrument a written 
 lie, signed by his hand. If any such practice exists in the offices of 
 the brokers of the City of London, all I can say is, that those brokers who 
 permit it are far different gentlemen from what, in my short experience, I 
 have found them to be. It is a practice which is much to be reprobated, 
 and it may place in that dock any person who is guilty of it. It is a prac- 
 tice, moreover, as my brother Martin suggests to me, which ought to be 
 avoided for another reason,- perhaps not so strong, but still likely to in. 
 fluence those who follow it namely, that people who allow that to be 
 done may be involved in liabilities with which juries will fix them in case 
 anything irregular should turn out with regard to those deeds. It is a 
 practice, with respect both to business and to moral considerations, which 
 is very much to be reprobated. But this is not the whole of your offence 
 because the frauds which you have committed in this case are frauds upon
 
 TACTS, FAILTJBES, AND FRAUDS. 
 
 your musters ; and unquestionably frauds committed by persons in situa- 
 tions of trust, with salaries which ought to enable them to live in a manner 
 such as persons in their stations of life ought to do, are much aggravated 
 by the relations which exist between the employer and the employed. I 
 will not do more than advert to what was said by my brother Martin yes- 
 terday. I agree with him that frauds of this kind appear to be greatly on 
 the increase ; and the reason which was suggested by him was the first 
 satisfactory reason to my mind for such increase that I have heard. It is 
 that in these largo companies servants are not brought into contact with 
 their masters ; they form no attachment for them ; and they are not pre- 
 vented, therefore, by any feeling of that kind from committing depredations. 
 But that is no excuse for a servant, because persons who are not bound by 
 the ties of attachment arc equally bound with others to render honest ser- 
 vice to those who employ them. Neither is this the whole of your offence ; 
 because in the conduct of your defence, if defence it can be called, your 
 learned counsel was instructed to throw aspersions, wholly unconnected 
 with the case in question, upon persons who are directors of this company. 
 Those aspersions were altogether unsupported by any proof; indeed, they 
 could not have been supported in this court, because they were irrelevant. I 
 must snv that I regard that as a very base proceeding on your part ; and if 
 it were possible to aggravate your crime, I think that that aggravated it 
 very much. You appear, however, not only to have committed a serious 
 offence in itself, with circumstances of aggravation, but you have committed 
 offences of the same kind upon such a scale, and to such an extent, as cer- 
 tainly prove that you are very far advanced in crime, that you are a prac- 
 tised hand, and that you committed crimes by which you acquired a large 
 amount of property. According to the statement of your learned counsel 
 just made, in order to show that your offence is not so bad as might bo 
 supposed, you had, when apprehended, some 40,000 or 50,000 of tan- 
 gible property, which your employers will probably take from the Crown 
 to reimburse them for the losses which they must sustain. But without 
 that, and looking only to the facts in this case, and upon the depositions, it 
 appears that you have forged no less than twenty deeds. You have ob- 
 tained by means of those forged deeds between 20,000 and 10,000, how 
 much more one may imagine from the statement which has been made on 
 your behalf. You are therefore a person who has forged on a large scale ; 
 you have played for heavy stakes, and you must have been aware all along 
 that if your iniquities were discovered, you would be called to a heavy 
 account. That account it is my duty now to close by pronouncing upon 
 you the sentence of the Court, which is, that you bo transported beyond 
 the seas for the term of your natural life. 
 
 The prisoner, who heard the sentence apparently without much surprise, 
 and whose demeanour remained u: changed, was then removed from the dock.
 
 TACTS, rAILUEES, A^D TEAUDS. 
 
 CHAPTEE X. 
 
 THE BULLION EOBBEEY OX THE SOTJTH-EASTEEN EAILWAY, AND 
 THE CHEQUE rOEGEEIES ON THE METEOPOLITAN BANKS. 
 
 The Bullion Kobbery detailed Pierce, Agar, and Burgess Their 
 Connection and Mode of Operations Saward and Anderson The 
 Association of Saward with each Scheme of Depredation Motives 
 of Crime and Course of Development Difficulty overcome, and the 
 Plan for the Abstraction of the Bullion accomplished The Bobbery 
 effected while the Train in Motion The Prize seized and conveyed 
 away Sale of the Spoil, and the Introduction of J. Townsend Saward 
 Partition of the Proceeds of the Eobbery Committal of Agar for 
 another Offence The Kevelations of Fanny Kay, and the Apprehen- 
 sion, Trial, and Conviction of the Prisoners The Process of the 
 Cheque Forgeries Connection of Saward, although a Barrister, with 
 Thieves The Artistic Arrangements for carrying out their Frauds 
 The Disbanding of this Horde of Criminals The Efforts of the Police 
 to trace their Career The Apprehension of Saward and Anderson ; 
 other Auxiliary Accomplices Their final Trial and Sentence of Trans, 
 portation. 
 
 THE question of " high art " crime, though before discussed, 
 was never more clearly proved than in the cases now under 
 consideration. If the elements of fall mental culture, of posi- 
 tion, and character were exhibited in the frauds of such indi- 
 viduals as "Walter "Watts, James Windle Cole, ~W. J. Eobson, 
 or Leopold Eedpath, and these qualities assisted them in the 
 perpetration of their crimes, what shall be said of the display 
 of ingenuity, perseverance, and artistic skill which accompanied 
 the entire proceedings as revealed in the history of the South- 
 Eastern bullion robbery, and the cheque frauds and forgeries 
 of Saward and Anderson. The dexterity and ability exhibited 
 in these instances of criminal adventure shows to what aclvan-
 
 485 
 
 tage Pierce, Agar, and Burgess might have pursued an honest 
 course, and how well employed might have been the talents of 
 Townsend Saward had they been properly directed ; but the 
 inordinate desire for wealth, however attained, tempted them 
 to the commission of crimes which, notwithstanding they were 
 skilfully planned and carefully developed, were at last disco- 
 vered through accident, and some time after all prominent 
 trace of the nefarious business was supposed to be destroyed. 
 
 The two cases contain features of similarity. Both depre- 
 dations were effected by the complicated machinery of adepts 
 in crime, and in both cases conviction was brought home to 
 the criminals by the testimony of criminals who turned appro- 
 vers. One person also, Saward, was an actor in both, for he 
 in the one case assisted in the forgeries, and in the other he 
 aided the robbers to dispose of their ill-gotten gold for 
 coin. 
 
 Perhaps, in the annals of crime, no more romantic circum- 
 stances ever occurred than in the case of the great bullion 
 robbery on the South-Eastern Eailway. The acute cunning 
 with which it was planned the number of persons directly or 
 indirectly concerned in it the careful painstaking with which 
 all the preliminaries were carried out the wonderful skill 
 with which the actual robbery was effected and the curious 
 way in which it was discovered, these circumstances combined 
 make the gold robbery stand out in bold relief, and hand down 
 the names of Pierce, Agar, and Burgess as having acquired 
 doubtful pre-eminence in criminal history. 
 
 On the night of the 15th of May, 1855, three large boxes 
 containing gold were delivered by their owners to Messrs. 
 Chaplin, the carriers, and by this firm they were conveyed to 
 the South-Eastern Eailway, London Bridge. The gold be- 
 longed to Messrs. Abell and Co., Messrs. Spielmauu, and 
 Messrs. Bult. Every caution was taken with the precious 
 freight. The boxes were bound with iron bars; they were
 
 486 TACTS, FAILTJSES, AND FEATJDS. 
 
 sealed, and weighed by Messrs. Chaplin ; they were placed in 
 iron safes secured by Chubbs' patent locks. To these safes 
 there were duplicate keys, in the possession only of confiden- 
 tial servants of the railway company keys in London, in 
 Folkestone, and also in the possession of the captains of the 
 boats belonging to the South-Eastern Railway. These safes 
 were all specially placed in the guard's van, under his imme- 
 diate care. On the boxes being taken out of the safes at 
 Boulogne, it was discovered that one weighed some 401bs. 
 less than it ought to have weighed, while the other two each 
 weighed a trifle more than they should have done. Inquiry, 
 at once set on foot, proved that the gold, safely deposited in 
 iron-bound boxes, and the boxes in iron safes, had been stolen 
 on the railway. The precious metal had been abstracted, shot 
 had been substituted, and the outward appearance of the safes 
 had been restored as they were before. 
 
 The principal actors in this clever crime were Burgess, 
 who had been for thirteen years a guard on the South-Eastern 
 Bail way ; Pierce, who had been a ticket printer to the company ; 
 Tester, a clerk in the traffic superintendent's office ; and Agar, 
 who had been for years a professional thief. 
 
 The successive steps by which the grand climax of crime 
 was reached, are worth detailing. Agar, after he left his 
 temporary regular employment, had travelled much in Aus- 
 tralia and America. Returning from the ISTew YtTorld, he 
 met his old acquaintance Pierce, and they conversed, among 
 other interesting topics, on the probability of acquiring posses- 
 sion of some of the gold bullion which was frequently in course 
 of transmission on the South-Eastern Railway. Pierce seems 
 to have been the originator of the robbery, but Agar at once 
 fell in with it, though he at first thought it impracticable. 
 Pierce, however, who was equally bold and inventive in crime, 
 suggested that he could get impressions of the keys to Chubbs' 
 locks to the iron safes which contained the bullion. The two
 
 FACTS, FAILUBES, AS!) FBAUD3. 487 
 
 thieves, taking counsel together, thereupon agreed to go down 
 to Folkestone, watch the delivery of the luggage, and make 
 their plans secure. This they accordingly did, and rather over- 
 did, in fact ; for their constantly hanging about, watching the 
 booking-clerks, the luggage porters, and so on, at last attracted 
 attention. The police and the railway authorities having shown 
 that they had their eyes on Pierco and Agar, these two wor- 
 thies separated, Pierce coming up to London, and Agar stop- 
 ping behind. The latter was several days before he obtained 
 any knowledge of where the key of the bullion safe was kept, 
 ' and then, despairing of ever obtaining possession of the key 
 itself, he came back to London. But Pierce was not so easily 
 daunted, and for weeks, ay, and for months, this man schemed 
 and planned how lie should get possession of the keys of the 
 iron safes. He looked around him for some young man who 
 might prove a convenient tool. Such proved "William George 
 Tester, who was in the office of the traffic superintendent 
 of the railway. But time wore on, and the scheming trio, 
 Agar, Pierce, and Burgess were plotting stealthily for weeks 
 longer, till at last a fourth was added to the conspirators in 
 the person of this Tester. But still they were as far off as 
 ever from the accomplishment of their plans. In July or 
 August, however, a clue to the first step towards the robbery 
 was discovered by Pierce. It transpired that the locks of the 
 iron safes were to be altered, and that the safes were to be sent 
 to Chubbs' for this purpose. Agar was informed that Tester 
 would have the new keys in his possession after the locks had 
 been altered, and it was proposed that he should take impres- 
 sions of the keys. But Agar was the leading spirit of the four 
 in such delicate operations, and he insisted upon doing this 
 himself. 
 
 Still closely watching the necessary preliminaries to the 
 contemplated robbery, the sending of the safes to Chubbs', 
 and their being returned when finished, were circumstances
 
 488 TACTS, FAILURES, AST) FEAUDS. 
 
 taken advantage of. Here Tester's roguery comes out very 
 prominently. He it was who now played false to his em- 
 ployers, and facilitated a robbery which but for him could 
 never have been committed. The new safes had two locks, 
 with two different keys, Messrs. Chubb sending home at first 
 only one key to each safe. Tester took these keys to 
 Agar, then lodging in an out-of-the-way place; Agar went 
 up-stairs with them, and took an impression of them in wax. 
 Having so far surmounted difficulties in the thorny path of 
 crime, the thieves chuckled with malicious delight at their 
 success. But there were greater difficulties yet. They felt 
 convinced that whenever gold was forwarded, both locks would 
 be used, and the difficulty now was to get an impression of 
 the second key to each safe. Agar's inventive faculties, how- 
 ever, which were worthy of a better cause, never deserted him. 
 "When he at first arrived from America, he had some 3000 of 
 his own probably ill-gotten, but still in his possession. He 
 determined, then, to make use of a part of this to effect the 
 long-planned bullion robbery. He managed to have a box of 
 bullion of the value of 200 sent down the line, directed to an 
 imaginary Mr. Archer. It was directed " E. E. Archer, care 
 of Mr. Ledger, or Mr. Chapman," two officers of the company 
 stationed at Folkestone. It was arranged that Agar, in the 
 name of Archer, should go down the line, and call for this 
 bullion parcel. This was in October, 1854. He went down 
 accordingly, but the box had not arrived, and the self-styled 
 Mr. Archer had to wait two or three days before it appeared. 
 Ledger had at this time just been married, and Mr. Archer 
 (Agar) only saw Mr. Chapman, one of the booking-clerks. 
 The ownership of the box being undisputed, Chapman opened 
 the safe with a key which he took from a certain cupboard, 
 Agar meanwhile watching him intently without exciting any 
 suspicion. The box was delivered to Agar, who signed the 
 name "Archer" to the receipt, and who thus had ample
 
 FACTS, FAILURES, AND FHAITDS. 489 
 
 opportunity of seeing \vhere the second key of the bullion safe 
 was kept. This done, he returned to London, well satisfied 
 with his miserable day's work. He then communicated with 
 Pierce, and it was agreed that they should at once set to work 
 to obtain an impression of tins second key. They went down 
 to Dover accordingly, and walked to Folkestone, where they 
 arrived before the tidal train came in. And now comes an 
 event in this complicated robbery which stamps Agar and 
 Pierce as two of the boldest criminals on record. There was 
 naturally considerable confusion on the arrival of the tidal 
 train, and the two thieves took advantage of it. Acting upon 
 previously acquired information, the two watched their oppor- 
 tunity, and while the booking-clerks for a minute or two had 
 left the office, Pierce walked boldly in, and finding the key in 
 the door of the cupboard which contained the iron safe, he 
 unlocked the cupboard, took out the key of the safe, and 
 brought it to Agar. In a moment this adept scoundrel took 
 an impression of the key in wax which he had ready, and 
 Pierce went back again into the office, and replaced it in 
 exactly the same position in which he had found it. 
 
 Here, then, they had accomplished difficulties which for 
 months had baffled them; they now had impressions of all 
 the keys used in locking the iron safes. The next pro- 
 cess was to make keys according to the impressions. Agar 
 and Pierco then went secretly to work. Removing to fresh 
 lodgings the one in Lambeth, the other in Iveimingtoii 
 they began their operations, frequently in concert but some- 
 times separately, Pierce being all the while disguised by 
 putting on a black wig. Never did prisoner work more per- 
 sevcringly to effect his escape from a dungeon, than did these 
 two villains work at the filing of their keys. Weeks were 
 occupied in the task, and still they were unfinished. In De- 
 cember, Pierce again removed to Crown Terrace, Hampstead 
 Eoad, and Agar to Cambridge Villas, Shepherd's Bush. Here
 
 490 TACTS, FAILTJRES, AND PEATJDS. 
 
 the filing operations were continued, and at last the keys 
 were finished. 
 
 Now came another very serious operation, and indeed so 
 serious that it is wonderful they did not find it embarrassing 
 enough to lead them to give up their scheme in despair ; but 
 the desperate plan was nevertheless pursued with unflagging 
 energy. Burgess, the railway guard, now lent his valu- 
 able aid, and Agar went down in the guard's van several 
 times with him, to test their home-made keys. At first the 
 keys would not at all fit ; next time they more nearly fitted ; 
 the next time still nearer, and so on, till at last they exactly 
 fitted. But delay was still necessary. On consultation, it 
 was decided not to abstract any bullion until a good haul could 
 be made. 
 
 Meanwhile, preparations were made for the last grand 
 coup. It was decided on procuring shot equal in weight to 
 the bullion which was to be robbed, so that the discovery of 
 the robbery might be delayed. "With a marvellous delicacy as 
 to the kind of prize they intended to capture, they prepared 
 shot equal in weight to what 12,000 of gold would weigh 
 This shot they divided into receptacles for convenient use, 
 placing some in carpet travelling bags and some in courier- 
 bags, which could be easily carried about the person and 
 concealed by a cloak. 
 
 The preliminaries were now all arranged, and the opportu- 
 nity to carry their plans into effect was alone wanting. Night 
 after night Pierce and Agar met, and, avoiding every possi- 
 bility of being traced, left their residences at Cambridge 
 Villas and Hampstead Road, and cautiously watched about the 
 London Bridge station, being all the while in communication 
 with Tester. At last, on the 15th of May, 1855, Tester met 
 Agar at the station, and told him it was " all right." Pierce 
 was in waiting not far off, and the two drove up to the 
 station dressed as gentlemen, and obtained first-class tickets
 
 TACTS, r.viLrnES, AND nurss. 491 
 
 for Folkestone. They handed their carpet-bags to a porter, 
 who little knew that they were filled with shot, and he gave 
 them to the guard, Burgess, who put them in his van. 
 "\Vatching his opportunity, Agar jumped into the van with 
 Burgess, and Pierce got into a first-class carriage. 
 
 Here, then, was the opportunity which had been sought 
 and planned for months. Agar and Burgess found them- 
 selves alone in the guard's van with bullion boxes containing 
 about 12,000. The difficulties they had surmounted before 
 reaching this point would have appalled ordinary criminals. 
 The complicated plans which were necessary the confiding of 
 these plans to four persona who were all to work together in 
 the most intricate way the precautions which the railway 
 authorities naturally took to prevent robbery the double- 
 locked safes, inclosed iron-hound boxes, and all weighed that 
 they should not be tampered with one would have thought 
 that these tremendous difficulties would have baffled the most 
 deeply-laid plans. But nothing daunted these fellows. The 
 prize was great, and to obtain it they conquered Herculean 
 difficulties, and scorned the heavy penalty which was sure to 
 follow detection. The clever trickery of Agar, Pierce, and 
 Burgess, pursued as it was for so protracted a period, is almost 
 unparalleled in crime. Tester was a mere neophyte, but the 
 other three were adept rogues. 
 
 The final effort was now to be made ; the occasion, sought 
 night and day with painful perseverance, was to be seized. 
 Agar accordingly lost no time in securing the prize. The false 
 keys which fitted the safe when the last experimental trip had 
 been made, fitted now, and, immediately the train had started, 
 Agar opened the safe. There, sure enough, were the three 
 coveted bullion boxes, sufficiently iron-bound, however, to deter 
 any ordinary burglar. "With a mallet and chisel, with which he 
 had provided himself, Agar wrenched off the iron clasps from 
 the box of Messrs. Abell, took out the gold bars which it
 
 492 TACTS, FAILUEES, AND FEAUDS. 
 
 contained, substituted the shot bags previously arranged, re- 
 placed the iron clasps and nails, lit some wax with a taper 
 which Burgess had provided, resealed the boxes with a common 
 seal which Pierce had bought in Fetter Lane, and secured the 
 greater part of the gold safe in his courier-bag before the train 
 arrived at Eedhill. Never had robbery been more cleverly 
 effected thus far. The safe apparently had not been touched, 
 and yet, in the course of a few minutes, one of the boxes it 
 contained had been denuded of its precious burden, and filled 
 with shot ! The "Wizard of the North could not have appa- 
 rently effected the transference more cleverly than Agar had 
 actually done it. 
 
 Meanwhile the train rattled on to Eedhill, and Agar had 
 scarcely completed the first portion of the robbery before this 
 place was reached. It had been arranged that at Eedhill 
 Tester should relieve Agar and Pierce of a share of the gold. 
 Accordingly, at Eedhill a bar of gold was placed in a black 
 bag which Tester had brought. In the confusion of the train 
 stopping and restarting, Pierce easily slipped into the same 
 van with Agar and Burgess, and no sooner was the train in 
 motion than the safe was again attacked by these bold thieves. 
 Again the iron bars yielded to the mallet and chisel; again 
 the locks gave way to the home-made keys, in defiance of 
 Messrs. Chubb's well-earned reputation, and Messrs. Spiel- 
 mann's bullion now passed into the courier-bags of the despe- 
 rate trio. 
 
 It is wonderful how the deliberate daring of these men had 
 spurred them on thus far ; but their wicked machinations were 
 yet short of their end. Another box remained unopened, and 
 the prize was too rich to leave. This, indeed, was part of their 
 guilty compact: they had bargained for some 12,000, and 
 12,000 they would have. 
 
 The last box, belonging to Messrs. Bult, contained small 
 bars of Californian gold. Clever as these desperadoes were
 
 FACTS, rAILTJBES, AND FBAUDS, -493 
 
 however, they could not take all this ; but they could secure 
 the greater portion of it, and this they did, filling up the box 
 with shot as before. The last act of the performance was as 
 neatly arranged as the preceding ; the boxes were as carefully 
 iron-bound, the safe was apparently securely locked, the sup- 
 posed precious freight was standing exactly where it was first 
 put, and not a sign of the robbery could have been discovered 
 even by a detective. Thus the train arrived at its destination 
 at Folkestone ; here the robbers and the all but valueless safes 
 parted company. The boxes which were presumed to contain 
 bullion were given out, having arrived at their destination, and 
 were unsuspectingly received ; and Burgess, Pierce, and Tester 
 went on to Dover in the train. 
 
 It may be well imagined how the three thieves breathed 
 more freely as they saw the boxes moved away at Folkestone, 
 and noticed how carefully the officials carried the weighty 
 treasure ; and how the pulses of the robbers beat more rapidly 
 as they neared Dover, for fear the depredation meanwhile 
 might have been discovered, and telegraphed on before them. 
 But their dark deeds seemed hitherto to prosper; they reached 
 Dover in safety with their plunder. Burgess, the guard, here 
 handed their carpet-bags to Mr. Pierce and Mr. Agar, the 
 first-class gentlemen passengers, and these gentlemen pro- 
 ceeded to the Dover Castle Inn, where they ordered refresh- 
 ment. Here they were nearly falling into a trap which they 
 laid for themselves. Having taken off their courier-bags, they 
 found they could not replace them without observation. They 
 had to hit upon a scheme, therefore, which happened to 
 succeed. Sending the waiter out for a soda-water bottle to 
 get it filled with liquor, they found time to replace their 
 courier-bags ; and now they were ready to start back to the 
 metropolis, perhaps the safest hiding-place for such characters. 
 
 The train was to start back at two o'clock in the morning ; 
 but they had no intention of coming back with Dover tickets,
 
 494) TACTS, TAILUEES, A^D I2AUDS. 
 
 their short stay \vould bate laid them open to suspicion. It 
 Lad been arranged that they should come to London with 
 return Ostend tickets, which had been provided accordingly. 
 Having therefore secured the gold about them, the three ere 
 ready to start for London. A difficulty at once presented 
 itself, however, for the porter at the station remarked, on the 
 two gentlemen travellers presenting their tickets as though 
 they had just come from Ostend, that no luggage had arrived 
 from that port that night. " Oh, no," was the ready answer, 
 "our luggage came the night before." But for the prompti- 
 tude and the probability of the reply, they might have been 
 discovered at the last moment. 
 
 Having'paid the porter, they got into the train, and arrived 
 safely at London. Here they had still to keep up that ever 
 active deception which is one of the penalties of crime. First 
 they ordered a cabman to drive to the Great "Western station ; 
 then, when he had nearly arrived there, they affected to Lave 
 made a mistake, and directed him to proceed to the North- 
 Western, and finally they told him to pull up at a public- 
 house. Instead, however, of entering this, they went into 
 another. 
 
 The difficulty now was to" turn their plunder into available 
 money. After going to Pierce's house, they accordingly went 
 to meet Tester, as previously arranged, at the Borough Market. 
 Tester, true to his character, as the tool and servant of the 
 other three, was waiting there with the bar of gold which had 
 been confided to him at Eedhill. Thence they proceeded to 
 Leadenhall Street, and in one of those shops which attract the 
 passenger by hoards of wealth in the windows, they changed 
 away a portion of the American coin which had been abstracted 
 from Messrs. Spielmaun's box a sufficient proof that the rob- 
 bers had no intention of escaping to America, the wonted 
 resort of all great criminals. They obtained 213 10*. ster- 
 ling for their American prize ; and they then went off to
 
 FACTS, FAILTJBEg, AND FBATJDS. 495 
 
 a money-changer's in the Haymarket, Messrs. Prommel, 
 Rudolf, and Co. Here they exchanged more American 
 eagles for 203. After this they with all speed conveyed the 
 rest of their booty to the residence of Agar, in Cambridge 
 Villas. 
 
 Agar's house now in verity became a den of thieves, where 
 operations were secretly carried on to convert their wealth 
 into the desired medium of circulation. Never did alchemists 
 labour more secretly or more perseveringly than did these 
 three men in their unholy work. It was necessary to be se- 
 cret, for two females were there. Agar was living, under the 
 name of Adams, with Fanny Kay, a young woman, who passed 
 as his wife ; aud they also had a female servant. The house 
 was six-roomed, there being a wash-house behind. One of the 
 bed-rooms was the dread chamber of operations. Here 
 they took out a stove, and built a regular furnace with fire- 
 brick. Day after day Agar and Pierce were working in this 
 room, Fanny Kay being as cautiously excluded from it as 
 though it had been the dread chamber in Bluebeard's 
 palace, the lady also being, Fatima like, anxious to see what ifc 
 contained. Deception was, of course, resorted to in order to 
 secure secrecy, and day and night a fire as hot as Nebuchad- 
 nezzar's furnace was maintained, crucibles were called into 
 requisition, and the gold bars and dust were melted, and 
 poured into iron triangular moulds, twelve inches by two. 
 
 The curiosity of Fanny Kay, however, became so trouble- 
 some, that Agar took advantage of a quarrel with her to sepa- 
 rate, and he secured lodgings at Kilburn, the ingots being 
 meanwhile removed to Pierce'a house. Whether they now 
 feared the detectives were upon their track is not certain, but 
 it is evident they did not remain long in one place. Pierce 
 gave up his house in Crown Terrace, and took a house at Kil- 
 burn, which ho called Kilburn Villa, and Agar also removed 
 from his residence, and went to live as a lodger with Pieixv.
 
 496 TACTS, PAILUIiES, AND 
 
 Here again the two worked indefatigably, at once proceed- 
 ing to dig a hole near the pantry, hiding its whereabouts as 
 secretly as the inmost recess of the robbers' cave where Gil 
 Bias was confined. In this cavernous apartment the gold 
 was deposited, to be removed as opportunity might offer. 
 
 In the neighbourhood which these thieves had selected for 
 their operations, there resided a scoundrel whose name will 
 ever be had in memory as the accomplished Pagan of legal 
 society. James Townsend Saward, a man of some fifty-eight 
 years of age, had studied the law as a profession, and in 1840 had 
 been called to the bar by the Honourable Society of the Inner 
 Temple. But there is little doubt that for years he had been 
 carrying on pecuniary negotiations with thieves, and had, as a 
 reward for his services, participated in the plunder. By some 
 indirect means Saward became acquainted with Agar and 
 Pierce, and informed them that he possessed opportunities of 
 disposing of gold. Here was the very source required, and to 
 this honourable gentleman of the long robe they sold bullion 
 to the value of 2500, Saward, of course, receiving ample con- 
 sideration, and the remainder being divided between Agar, 
 Pierce, Burgess, and Tester. 
 
 Thus far the depredation had not only been effected with 
 consummate skill, but the proceeds had been, with scarcely less 
 ability, converted into ready cash. The subsequent nego- 
 tiations for converting gold into notes, without probability of 
 detection, need not be detailed : suffice it to say, that they 
 were all managed with great business tact ; but there is one 
 way in which part of the money was disposed of which is 
 worth mentioning. K"o man, says the proverb, is all sin. 
 Agar had at least a natural affection for his child by Fanny 
 Kay, with whom he had been living. They had quarrelled and 
 separated, as has been already intimated ; but he was, never- 
 theless, desirous of providing for them. Doubtless knowing 
 that sooner or later the day of discovery and punishment would
 
 FACTS, FAILURES, A2TD FRAUDS. 497 
 
 come, he looked forward into the dark future, and determined 
 that they, if possible, should enjoy his wealth when he could 
 no longer retain it. And here conies the strange illustration 
 of prudence and forethought. Accordingly, in the spring of 
 ] S5G, he sold out 3000 Consols which stood in his name. He 
 then authorized a solicitor to make a number of payments for 
 him, and the balance, 2500, was passed to Pierce to invest 
 for the benefit of the woman Fanny Kay and her child. 
 
 The fell day of discovery which Agar had so long dreaded at 
 last arrived. His own account of his capture is romantic. He 
 admitted on his trial that he had for years been engaged in 
 various crimes, though their specialties were not fully entered 
 into. He had been to the United States, where he lived by 
 " speculating." There is no doubt his passages across the 
 Atlantic were connected with the disposal of stolen notes. 
 After his return, he lived at Kilburn with a female named 
 Emily Campbell. She had formerly cohabited with a man 
 named Humphreys. Agar says that he lent Humphreys 230, 
 and one afternoon he was going to receive repayment. Just 
 as Agar had arrived at the corner of Bedford Bow, a man said 
 to him, " Bill has sent me to tell you not to come in there's a 
 screw loose." Pulling out a bag which the man said contained 
 200, Agar took it, and saw some one coming behind him ; 
 whereupon the man who had given him the bag told him to 
 run, which Agar did. The other immediately called out " Stop 
 thief ! " Agar at once stopped, and a policeman took him into 
 custody. He was then put on his trial for uttering a forged 
 cheque for 700, found guilty, and sentenced to transporta- 
 tion for life. Agar, however, had chosen a thief for his trustee, 
 and the old adage of "honesty among thieves " was not veri- 
 fied. "When he found that there was no chance for his own 
 liberty, he made over to Pierce, besides the Turkish bonds 
 previously intrusted to him, some thousands of pounds. Mr. 
 Bodkin, counsel for the prosecution, estimated the whole 
 
 KX
 
 498 FACTS, rAILUEES, A^D PKAUDS- 
 
 sum thus made over at 7000; -while Mr. Baron Martin, 
 in passing sentence, told Pierce, "In all you must have 
 got out of him 15,000 ! " This was all to be for the 
 benefit of Fanny Kay and her child. The villain Pierce, 
 however, made her a few payments, and then abandoned her. 
 With the desperate rage of a deceived woman, Fanny Kay 
 went at once to the South-Eastern Railway authorities, and 
 told them what little she knew about the robbery. Mr. Rees, 
 their solicitor, then went to Agar, and he, with the natural 
 vindictiveness of a thief who, himself caught and suffering the 
 heavy penalty of crime, felt galled that his accomplices had 
 escaped, and that his child and the woman he loved were 
 forsaken, told Mr. Eees all the circumstances of the bullion 
 robbery on the South-Eastern Railway. 
 
 Mr. Rees,i as solicitor to the South-Eastern Company, ac- 
 companied by Williamson, a detective, thereupon went imme- 
 diately to Pierce's residence at Kilburn Villa, where this fellow, 
 who before the robbery was but a clerk in a betting-office, was 
 living in comparative luxury, and effected his capture. Here 
 they found the hole, which had been dug in the pantry, filled 
 up with new rubbish ; and they also discovered Turkish bonds 
 to the amount of 2000, as well as leases, deeds, and various 
 securities. The capture of Pierce led to that of Burgess and 
 Tester, and the three were shortly brought to the bar of jus- 
 tice. At the trial at the Central Criminal Court, the whole 
 of the facts narrated were elicited on the clearest evidence. 
 Agar, the chief plotter of the band, arrived from the Port- 
 land convict establishment as an approver. Fanny Kay, for- 
 merly an attendant at the South-Eastern Railway, who was 
 first introduced by Burgess to Agar, and who went to live with 
 the latter as his wife, came forward to convict the three pri- 
 soners of complicity with her paramour, possibly only anxious 
 to be revenged upon Pierce. Thus there was a circle within a 
 circle of crime a plot and a counterplot, and the frightful
 
 TACTS, FAH.UBES, A3TD FRAUDS. 199 
 
 drama closed with a terrible penalty. But the law, after all, 
 prevented the retribution of -what is called poetic justice. Mr. 
 Baron Martin, in passing sentence, said to Pierce, " On you, 
 Pierce, I am unfortunately compelled to inflict a punishment 
 |0n severe than upon the other prisoners. They were servants 
 of the company, and you were not. By a strained construc- 
 tion of the law you might, perhaps, have been got into the 
 same category with the other two ; but we are unwilling to 
 strain the law against you. But I do declare, that if I stood 
 in that dock to receive sentence, I should feel more degraded 
 to be in your place than in that even of either of your asso- 
 ciates. Agar trusted you; he gave you 3000 stock to be 
 invested for the benefit of his child and its mother, together 
 with 600, his share of the produce of the robbery, and the 
 rest of the gold which had not been sold. In all you must 
 have got out of him about 15,000. This you stole, and ap- 
 propriated to your own use. It is a worse offence, I declare, 
 than the act of which you have just been found guilty. I 
 would rather have been concerned in stealing the gold, than in 
 the robbery of that wretched woman call her harlot, if you 
 will and her child. A greater villain than you are, I believe, 
 does not exist." 
 
 A burst of applause from a crowded court followed this 
 extrajudicial condemnation, and general regret was expressed 
 that not more than three years imprisonment could be awarded. 
 Burgess and Tester, who had both been, most probably, tempted 
 by Pierce, were sentenced to fourteen years' transportation. 
 
 The bullion robbery on the South-Eastern Eailway is inti 
 mately associated with another series of crimes which are well 
 remembered as the great cheque forgeries. James Townsend 
 Saward, of the Inner Temple, barristcr-at-law, was connected 
 with both. In the ono case he assisted Agar to convert bar- 
 gold into available cash, and Agar himself turned approver
 
 500 FACTS, rAJLTJEES, AKD FRAUDS. 
 
 against his companions, showing Saward's indirect complicity 
 in the nefarious transactions ; in the other, Saward was an 
 actual accomplice in forgery, and two approvers came up from 
 Newgate to bear testimony against him. The entire circum- 
 stances of the two cases bear out the solemn aphorism, that 
 " the way of transgressors is hard." Companions in guilt in 
 each instance assisted, from various motives, to bring each 
 other to justice. 
 
 In effecting the various cheque forgeries/several parties, as in 
 the bullion robbery, were concerned. The leading man among 
 them was Saward, the barrister. The others, who were guided 
 by this legal scoundrel, were Anderson, a man of about thirty- 
 six, described as a servant, and Henry Atwell and "William 
 Salt Hardwicke, both of them persons without any settled oc- 
 cupation, the latter a returned convict, and who, to a certain 
 extent, were merely the tools of Saward. 
 
 The mode in which these parties carried on their extensive 
 delinquencies, showed Saward, at least, to be a man of unusual 
 skill in planning and committing crime. He organized a com- 
 plete system of his own invention, and carried it out, with the 
 necessary modifications, in a number of cases. Most of his 
 ventures proved successful, and the entire amount of their 
 gains must have been enormous. The nefarious transactions 
 of these forgers being, however, conducted mainly on one sys- 
 tem, it will not be necessary to particularize them all. Forgery 
 of cheques and bills was the leading feature of their scheming, 
 the concomitant circumstances being varied as occasion re- 
 quired. The features of the chief forgeries only need, there- 
 fore, be sketched. The first operation took place in December, 
 1855 (some six months or so after Saward had bought Agar'a 
 gold " on commission "). The premises of Mr. Doe, an iron- 
 monger in Spitalfields, were broken into, and among other 
 things abstracted, were two blank cheques, and some cancelled 
 cheques. Saward used these two blank cheques, forging one
 
 FACTS, FAILURES, AND FHATJD3. 501 
 
 for 10, and the other for 96, they being payable at Messrs. 
 Barclay and Co.'s. To obtain the money, the system adopted 
 was to answer advertisements from young men seeking situa- 
 tions, appoint an interview, engage the parties, and send them 
 to the bank to present the cheques. Saward then waited and 
 met the young man coming from the banking-house, and if the 
 cheque \ras paid, would take the money ; if the presenter had 
 been detained, Saward scented the fact of detention, and made 
 off. A new lodging was taken by all the parties for each trans- 
 action ; so that whether the forgery was at once discovered, or 
 only after a considerable lapse of time, any attempts to trace 
 the delinquents were unavailing. 
 
 The second transaction was a failure, though conducted in 
 the same way. The premises of Mr. Ash, an iron merchant in 
 Upper Thames Street, were the scene of a burglary. Again 
 blank and cancelled cheques, through this medium, came into 
 possession of Mr. Saward. A young man was entrapped, in 
 answer to an advertisement ; then followed the ordeal, to pre- 
 sent a cheque for 91 at Messrs. Smith, Payne, and Co.'s. The 
 cheque was discovered to be a forgery ; the young man was 
 detained ; and Messrs. Atwell and Saward did not return to 
 their new-found lodgings. Then the cheque-book of Messrs. 
 Bramah and Co. was mysteriously obtained, and three cheques 
 for i7, 71, and 87, presented on the same system, were 
 paid. Again, a cheque of Messrs. Dobree and Sons, merchants, 
 Tokenhouse Yard, mysteriously came into the possession of 
 Saward.* He prepared a bill of exchange for 386, which 
 purported to be accepted by these gentlemen, and payable at 
 Hankeys and Co. For this occasion Saward was " Mr. White," 
 of Cumberland Street, Hackney Hoad. A young man was 
 
 * It is supposed that Saward and his friends obtained these cheques 
 through, indirect means ; not that they committed actual burglaries to 
 secure them, but that they were rather the market for the sale of such 
 documents.
 
 502 TACTS, FAILTTEES, AND FBATTDS. 
 
 secured, as before, to present it for payment. Anderson, in 
 disguise, watched the young man to the bank, found that the 
 bill was stopped, and " Mr. "White " was no longer of Cumber- 
 land Street, Hackney Road. 
 
 The cunning displayed in the next grand operation was 
 worthy to rank with the cleverest trick in the annals of 
 swindlers. Besides conniving at housebreaking and planning 
 forgery, the artiste Saward included pocket-picking, a branch 
 of the art which was doubtless performed by other subordi- 
 nates. Mr. Alfred Turner, a solicitor, of Eed Lion Square, had 
 his coat-pocket picked of his memorandum-book, etc., con- 
 taining two blank cheques (the Hanks in these instances were 
 Saward' s prizes). But to render these blank cheques useful, 
 it was necessary to become acquainted with Mr. Turner's style 
 of handwriting. To Sa card's inventive genius this was no 
 great difficulty. He consequently prepared an I O II for 30 
 in the name of Hesp, and his accomplice Atwell went with it 
 to Mr. Turner, and instructed him, in the customary profes- 
 sional way, to write to Hesp for payment. It was further 
 adroitly arranged that the money, when paid, should remain 
 for a few days with Mr. Turner, so that he might deposit it at 
 his banker's, and give it to his client through the medium of a 
 cheque. Anderson accordingly took a lodging in the name of 
 Hesp, and in due course received a lawyer's letter for payment 
 of the fictitious I O U. iSTever was I U more speedily paid ; 
 but all the trouble had unfortunately been taken for nothing, 
 for Mr. Turner's clerk, who received the money in the most 
 innocent manner, paid their client in ordinary cash. Saward, 
 on finding his plans frustrated, remarked, with his usual sany 
 froid, " "Well, we must wait a little, and then try it again." 
 
 Some time subsequently Mr. Turner was accordingly at- 
 tacked again by these persevering depredators. The same 
 scheme of a fictitious I O U was once more adopted, and this 
 time it proved successful. The I O U was paid, and the
 
 FACTS, FAILURES, A3TD FBAUDS. 503 
 
 money, 103, remained in Mr. Tumor's bands for a few days, 
 nnd passed into his bankers. The swindling client then ob- 
 tained possession of the amount by a cheque of Mr. Turner's. 
 ]S'o time was now to be lost, and taking this cheque for a model, 
 Saward forged three cheques on Mr. Turner's bankers, one of 
 them being for the considerable amount of 410. 
 
 Anderson then secured a lodging for the occasion, issued 
 an advertisement as a bait, and caught a young man, who was 
 sent with the forged instrument to Messrs. Gosling and Co.'s. 
 The money was paid, divided among Saward, Anderson, and 
 Ilardwicke, and the young man, of course, heard no more of 
 the gentleman who had just engaged him to fill a comfortable 
 situation, " with light easy work, and a good salary." 
 
 To connect the two attempts upon Mr. Turner's bankers, 
 a material circumstance must be detailed. In the interim, 
 -\vicke, an old acquaintance of Saward's, who had been 
 transported for ten years for a felony, had returned from Aus- 
 tralia. Before Hardwicke's departure, according to his own 
 account, he had been used badly by Saward (which it is very 
 reasonable to suppose) ; but the quarrel had been made up on 
 Hardwicke's return, and he was pressed into the service of 
 the forging barrister. Their first joint transaction was on a 
 large scale. Ilardwicke had brought back with him a bill of 
 exchange for 200, drawn by Grossman and Co., of Hobart 
 Town, upon Messrs. Kennard find Co., of Austinfriars, payable 
 at Messrs. Heywood, Kennard, and Co.'s. The bill was indorsed 
 to Ilardwicke, who now handed it to Saward. This ingenious 
 gentleman, taking the bill as a model, manufactured one for 
 1000, purporting to be accepted by Kennard and Co., and 
 payable at Heywood, Kennard, and Co.'s. To get this bill 
 cashed the old method was resorted to : a light porter, whom 
 they happened to overhear asking for a situation, was sent 
 with the bill. Hardwicke, unknown to the messenger, "" 
 
 win-tin'.!- tiio plane TTCTO successful, and
 
 50-i FACTS, FA1LT7EE3, AST) FBAUDS. 
 
 Atwell was outside, having ridden by his side in an omnibus 
 unknown to him, the whole of the culprits being suspicious of 
 each other. The porter presented the cheque, and the cashier 
 counted out the notes; but just as he was disbursing the 
 money, he was struck with some misgiving as to the genuine- 
 ness of the acceptance. He therefore proceeded to compare 
 the bill with other bills ; Hardwicke at once took the alarm, 
 and decamped, Atwell just coming in in time to see the light 
 porter detained. The bold stroke had happily been completely 
 defeated. 
 
 Another forgery, however, was successful. By some means 
 a cheque of a Mr. Baldwin's came into the hands of Saward 
 and Co. From this document they prepared two similar of 
 100 each, and one for 50. To get these cheques cashed, a 
 modification of their plans was adopted. They put up at dif- 
 ferent hotels in London, of course under fresh names. The 
 porters of the hotels were then sent to get the cheques cashed, 
 the plans being complicated thus : Anderson and Saward put 
 up at the Magpie in Bishopsgate Street ; from thence Ander- 
 son went to the White Hart, in the same street, and sent the 
 boots of this establishment with a 50 cheque to Hankeys and 
 Co. Anderson then went back to the Magpie, and having 
 learned, through the usual means, that the cheque had been 
 cashed, he returned to the White Hart, and secured the money. 
 He then sent the porter at the Four Swans with a cheque for 
 100 upoli Messrs. Hankey and Co. This also was paid. 
 This was on a Saturday, and it was then too late to attempt to 
 cash the third cheque. On the following Monday, however, 
 they adjourned to another hotel, whence a porter was de- 
 spatched with the remaining 100 cheque to Hankey's. Mean- 
 while the fraud had been discovered, and the third cheque was 
 stopped, the porter being detained. Learning by the same 
 means that tlioir venture in this respect was a failure, they of 
 course decamped.
 
 FACTS, -FAILTTBES, A3TD FRAUDS. 505 
 
 This band of swindlers now changed the scene of operations, 
 and, on the same system as they had adopted in London, they 
 commenced business in Yarmouth. Here transactions were 
 entered into which led to discovery. Hardwicke assumed the 
 name of Ralph, and, to obtain a commercial footing in Yar- 
 mouth, he paid under the name of Whitney, into the bank of 
 Messrs. Barclay and Co. the sum of 250, which he wished 
 placed to the credit of the supposed Mr. Ralph of Yarmouth. 
 But unaccountably enough, the supposed Mr. "Whitney (Hard- 
 wicke) forgot to pay it in as money to be paid to the supposed 
 Mr. Ralph (also Hardwicke). Consequently the money was 
 sent down to Yarmouth to the credit of "Mr. "Whitney." 
 "When Hardwicke went (under the name of Ralph) to receive 
 this money, the bankers informed him they had no money in 
 that name, but the same sum had been paid to the credit of a Mr. 
 "Whitney. From this fix to use an Americanism there was 
 no extrication. Hardwicke wrote to Saward (under cover to an 
 imaginary person), and he sent Anderson to Barclay and Co. 
 but they refused to pay the money upon the representation he 
 made to them, and they insisted that " Mr. Whitney " should 
 himself come and explain the difficulty. To confront bankers 
 whose suspicions were aroused, was no part of the plans of 
 Messrs. Saward and Co., but the 250 was in jeopardy, and 
 Saward therefore wrote a letter to Hardwicke, giving him cer- 
 tain complicated but necessary instructions to endeavour to 
 secure the repayment of the money. 
 
 Communications had, in the meantime, been set on foot 
 between Messrs. Barclay and Co. and their Yarmouth agents, 
 and before Saward and Anderson in London could communi- 
 cate with Atwell and Hardwicke in Yarmouth, the latter were 
 apprehended on suspicion of forgery or conspiracy. 
 
 The detection of the swindlers in Yarmouth led to that of 
 those in the metropolis. On the 16th of September, 1856, 
 ' l*ttr to Hardwicke (alias Ralph), who had just been
 
 606 TACTS, FAILTJBES, AND FEAUD3. 
 
 apprehended, arrived. This epistle reached the hands of the 
 police, who were now on the track of Saward and Anderson. 
 Hardwicke and Atwell were therefore put on their trial. 
 The evidence of their guilt was most clear, and they were both 
 convicted of forgery, and sentenced to transportation for life. 
 They were, however, kept in Newgate till the apprehension of 
 their accomplices, which was not effected till some two or three 
 months afterwards. 
 
 On the trial of Saward and Anderson, at the Central 
 Criminal Court, before Mr. Baron Brarnwell, their former 
 accomplices both appeared as approvers. In addition to the 
 former evidence, on which Hardwicke and Atwell had them- 
 selves been convicted, Saward's letter to Hardwicke, and evi- 
 dence which had subsequently accrued, was brought to bear 
 against Saward and Anderson. Among other witnesses was 
 Elizabeth Evans, who had lived with .Atwell as his wife. Her- 
 self deceived, she came forward to corroborate the testimony of 
 her seducer, and both assisted to bring to justice two unmiti- 
 gated villians with whom her paramour had been in league. 
 The trial was also remarkable on account of the numerous 
 witnesses, consequent on the complicated system, on which 
 these extensive forgeries had been carried out. It was mar- 
 vellous, too, how all the secret machinations of Saward and his 
 colleagues were brought to light. Never was the chain of evi- 
 dence more complete ; not a link was wanting. The prisoners 
 Saward and Anderson of course stood little chance of acquittal, 
 any more than their colleagues, who had previously been con- 
 victed. After five minutes' deliberation only, the jury brought 
 in a verdict of Guilty, and, as might have been anticipated, a 
 heavy sentence, that of transportation for life, was passed 
 against both criminals. The judge, in his address, did not 
 lose sight of the position of Saward, his character and antece- 
 dents ; and in the sensible observations which he made upon 
 the extraordinary nature and neeuliar talent evin^-*" 1 in tho
 
 TACTS, FAILmZS, A2TD rBAUDS. C07 
 
 commission of the crimes in which the culprits had been en- 
 . evidently considered that he (Sa\vard) was the principal 
 contriving genius. No one for a moment can doubt but that 
 the judgment passed was fully warranted by the evidence eli- 
 cited, and that the effect, coupled with the sentence in the 
 case of Pierce, Agar, and Burgess, and Hardwicke and Atwel), 
 has been to destroy, for a lengthened period at least, that com- 
 bination and active exercise of professional criminal talent 
 from the attacks of which no large financial institution was 
 safe so long as perseverance and mechanical dexterity could 
 surmount difficulties which stood in the way of an approach to 
 their resources. It is estimated that the principals of these 
 two gangs of desperadoes must have acquired money to the 
 extent of some thousands a-year, but, nevertheless, Saward, at 
 the latest instant, was believed to be in comparative penury, 
 having usually exhausted his share of the plunder at low gaming 
 houses, and in other species of licentious pleasures. 
 
 TRIAL AND CONVICTION OF PIEECE, BURGESS, AND 
 B, FOR THE BULLION ROBBERY ON THE SOUTH- 
 N* RAILWAY. 
 
 ClSTBAL CMlinfAL CotTBT, January 13, 1857. 
 
 THE trial of the prisoners Pierce, Burgeae, and Tester, who were charged 
 with committing the extensive bullion robbery upon the South-Eastcrn 
 Railway in May, baring been appointed for this date, the court was early 
 besieged by applicants eager for admission. Excellent arrangements, how- 
 ever, had been provided by the Under-Sherifls, Messrs. Crosley and An- 
 derton, and hence, although the trial evidently excited great interest, owing 
 to the daring nature of the robbery, the ingenuity with which it had been 
 planned and executed, the largeness of the sum involved, and the apparent 
 respectability of some of the persons implicated, the court waa at no period 
 of the <Jny inconveniently crowded, and the proceedings were conducted 
 without the slightest interruption or confusion. 
 
 At 10 o'clock Mr. Baron Martin and Mr. Justice Willes took their
 
 508 TACTS, FAILUEES, AND FEAUDS. 
 
 seats on the bench, accompanied by the Lord Mayor, Aldermen Eurnphery 
 and Sir F. G. Moon, Mr. Sheriff Mechi, Mr. Sheriff Eeats, Mr. Under- 
 Sheriff Crosley, and Mr. Under-Sheriff Anderton. 
 
 The prisoners, William Pierce, aged 40, described in the calendar as a 
 grocer, and as imperfectly educated, James Burgess, aged 35, railway guard, 
 well educated, and William George Tester, aged 26, clerk, also well edu- 
 cated, were then placed at the bar. Burgess was dressed in the uniform of 
 a railway guard, and the other two prisoners were in plain clothes. Tester, 
 who is much the youngest of the three, and who wears a moustache and 
 large black whiskers, evidently felt the nature of his position much more 
 keenly than his comrades. Burgess and Pierce, indeed, appeared to view 
 their position with perfect unconcern, but the indifference of the latter 
 seemed rather of a sullen character, while the unconcern of the former was 
 attributable probably to a natural gaiety of disposition which never allows 
 itself to be long depressed. All the prisoners, during the whole of the pro- 
 ceedings, kept up a pretty constant communication with their legal advisers. 
 
 There were four indictments against them ; the first charged them with 
 stealing SOOlb. weight of gold, value 12,000, the property of their em- 
 ployers, the South-Eastern Railway Company ; the second charged them 
 with stealing a number of bars of gold and some gold coins, the property 
 of the same prosecutors ; the third charged them with stealing the same 
 property in the dwelling-house of the prosecutors ; and the fourth charged 
 them with feloniously receiving the property, knowing it to have been stolen. 
 
 The prisoners pleaded " Not guilty" to the whole of the charges. 
 
 Serjeant Shee attended specially, with Mr. Bodkin and Mr. Monk, of 
 the Northern Circuit, to conduct the prosecution ; Mr. Serjeant Ballantine 
 attended specially, with Mr. Sleigh, to defend Tester ; Mr. Serjeant Parry, 
 also specially retained, with Mr. Ribton, appeared for Pierce j and Mr. 
 Giffard, Mr. Poland, and Mr. F. H. Lewis defended Burgess. 
 
 Mr. Serjeant SHEE, in opening the case for the prosecution said Gen- 
 tlemen of the Jury, it is scarcely possible that you should not have learnt, 
 through the usual channels of information, the general history of the gold 
 robbery committed upon the South-Eastern Railway Company. It is my 
 duty to caution you, however, not to pay the least attention during the 
 course of this inquiry to any information which you may have acquired 
 from that or any other source. I shall confine myself carefully to a state- 
 ment of that only which I believe myself to be in a position to prove, and I 
 think that you will best consult your own convenience, as well as the justice 
 of this case, by endeavouring altogether to dismiss from your minds every- 
 thing which up to this period you may have heard relating to the robbery. 
 The prisoners are charged with having committed a robbery, on the night 
 of the 15th of May last, of a large quantity of gold entrusted to the South- 
 Eastern Railway Company for conveyance from London to Boulogne. Upon
 
 PACTS, FAILURES, AND FHAUDS. 509 
 
 that night three boxes, containing gold, were delivered by their owneis to 
 Messrs. Chaplin and Co., the carriers, and by them they were taken to the 
 offices of the South- Eastern Bailway Company, at London Bridge. One of 
 those boxes contained gold, the property of Messrs. Abell and Co. ; another 
 contained gold, the property of Messrs. Spielmann ; and the third contained 
 gold, the property of Messrs. Bult. Those boxes were bound with iron 
 hoops or bars ; they were sealed and weighed before they left the premises 
 of Messrs. Chaplin ; and they were placed, as in the ordinary course of 
 business, by the South-Eastern Eailway Company, in iron safes, secured 
 by Chubbs* patent locks, keys of which were in the possession only of con- 
 fidential servants of the company. There were keys in London, there were 
 keys in Folkestone, and there were keys also in the custody of the captains 
 of the several boats, which were the property of the South-Eastern Eailway 
 Company. Those iron safes were usually sent to Folkestone in care of 
 the guard, who took them down with him in the van in which he went 
 himself. On the arrival of the safes in question at Boulogne, and on the 
 boxes being taken out, it was found that one of them, which belonged to 
 Me-Srs. Abel], weighed 401b. less than it had weighed in London. The 
 box containing Messrs. Spielmann's gold weighed rather more than it had 
 before, and Messrs. Suit's box was also a trifle heavier than before. Tho 
 boxes were all weighed again in Paris, and the weights there corresponded 
 with the weights at Boulogne. At Paris it was ascertained that a quantity 
 of shot had been substituted for the gold which those boxes had originally 
 contained, and it was clear, owing to the weights at Paris and Boulogne 
 corresponding, that the robbery could not have been committed between 
 those two places. Every inquiry was, of course, instituted, as soon as the 
 fact of the robbery was made known by communication from Paris, to 
 satisfy the directors and the professional advisers of the South-Eastern Eail- 
 way Company as to the place where the robbery must have been perpetrated. 
 After a full investigation they came to the conclusion that it could not have 
 taken place either at Folkestone or on board the boat, or prior to the 
 delivery of the boxes by the carriers at tho offices of the South-Eastern 
 Eailway Company at London Bridge, and they arrived at length at tho 
 reluctant conviction that the robbery must have been effected on the night 
 of the 15th of May, 1855, in the van of the train of which Burgess, tho 
 guard, had charge. The prisoners at the bar have all been in tho service of 
 the South-Eastern Eailway Company. Burgess was in their service on the 
 night of the robbery, and had been so for thirteen years before ; Fierce had 
 also been in their service, although ho was not so at the date of the rob- 
 bery. Up to 1850 he had been in their employ as a ticket printer; but in 
 that year he was dismissed from that engagement. Ho was, however, well 
 acquainted with the officers and servants of the South-Eastern Eailway 
 Company. Tester, at the date of tho robbery, was a clerk in the office of
 
 510 FACTS, PAILTJELS, AZ>*D FEAUD3. 
 
 the superintendent of (raffle, and he had therefore ample meaas for obtain- 
 ing knowledge and information as to the traffic that was conveyed upon tho 
 line. Now, on the 15th of May, when the robbery was committed, Tester 
 lived at Lewisham, Pierce at Crown Terrace, Hampstead Road, and Bur- 
 gess at New Cross, near the South-Eastern Eailway Station ; and, at the 
 same time, a man named Agar, whom we shall call before you, and whom 
 we believe to have been one of the planners and participators of the rob- 
 bery, resided at Cambridge Villas, Shepherd's Bush. Agar was never in 
 the service of the South-Eastern Railway Company, and he is now a con- 
 vict, having been arrested in August, 1855, and convicted in the October 
 following of uttering a forged cheque, knowing it to be forged. He comes 
 before you from Portland hulks, where he is undergoing a portion of his 
 sentence of transportation for life. I need hardly tell you, gentlemen, that 
 a witness presenting himself before a jury under such circumstances, and 
 acknowledging himself to be guilty of the crime with which the other pri- 
 soners are charged, is a person whom a jury ought not to believe without 
 strong corrobborative evidence. You will find, however, in this case that 
 the statement which the approver will make to you in a clear and distinct 
 manner, will be confirmed by the evidence of a great number of respectable 
 witnesses. Indeed, I can't help thinking that you will be of opinion that 
 the circumstantial evidence against the prisoners is so strong that it would 
 be sufficient to convict them of the offence with which they are charged 
 even if Agar's evidence were not before you. However that may be, I warn 
 you, as it is my duty to do, not to believe Agar until you find that he is 
 confirmed in all the important portions of his testimony. I cannot tell you 
 what the pursuits of Agar had been previously to the planning and perpe- 
 tration of this robbery. It appears, however, that he had been frequently 
 to America, and that in May, 1854, he had been at home in England about 
 twelve months, having at that time returned from America. He had been 
 previously acquainted with Pierce, and some short time before tbis occur- 
 rence they met in the neighbourhood of Covent Garden. They conversed 
 together as to the probability of obtaining possession of some of the gold 
 bullion which was known to be in frequent course of transmission along the 
 South-Eastern Eailway. Pierce, I rather think, first suggested the thing, but 
 Agar thought it impracticable. Pierce, said that he had no doubt he could 
 obtain impressions of the keys of Chubbs' locks, by which the iron safes 
 were secured. Agar said if that could be done he thought that the rest might 
 be managed ; and they resolved, in order to ascertain what would be the 
 best means of obtaining possession of the keys, that they should both go 
 down to Folkestone apparently as casual visitors to a sea-bathing place, 
 and that they should take lodgings there, and employ themselves in watch- 
 ing the arrival of the tidal service trains, and the delivery of the luggage 
 from the trains to the boats. They accordingly went down in the second
 
 FACTS, FAILUBES, AND FBAUDS. 511 
 
 week in IMay and took lodgings at the house of a person named Hooker, a 
 fly-driver, between the station and the town of Folkestone. The lodgings 
 were taken in the name of Adams, by which name Agar passed during their 
 etay at Folkestone. They remained there together ft week, and Mrs. 
 Hooker, their landlady, was under the impression that they went every day 
 to the pier, going down to enjoy the fresh air, and to ainuso themselves 
 much in the manner that persons at sea-bathing places usually do. There 
 is no doubt, however, that they went down to watch the arrival of the 
 tidal service trains ; they were seen in constant communication together, 
 hangicg about the station at Folkestone, loitering about the pier, looking 
 at the booking offices, constantly with their eyes upon the booking clerks ; 
 and to such an extent did they carry this, that at length they found that 
 they were observed both by the police of the town of Folkestone, and by 
 the railway police. In fact, it became clear to them that they were watched 
 by, and were objects of suspicion to, Hazell, the inspector of the railway 
 police ; Steer, the superintendent of the borough police ; Sharman, a police 
 constable at Folkestone ; and Chapman, an officer in the service of the 
 South-Eastern Railway Company. This w,as so clear to them, that on one 
 occasion they separated and went in different directions, and, after a week's 
 residence in Folkestone, Pierce went to town, leaving Agav behind. Agar 
 continued his observations for another week, employing himself as he had 
 done while Pierce was there, and he had unquestionably opportunities of 
 observing what took place on the arrival of the tidal service trains, and 
 what Chapman, who had the custody of the key of the iron safe, did when 
 the trains arrived and the luggage was removed to the boats. By these 
 means Agar ascertained eventually where the key was kept, the impression 
 of which it was so important for his purpose to obtain. Having ascertained 
 that, however, he despaired of obtaining possession of the key, and, after 
 staying another week at Folkestone, he returned to London, and told Pierce 
 that he thought the thing was impossible. But Pierce was not so easily dis- 
 heartened. He seems to have known in the last resort, by what means he 
 might succeed in effecting his object, and he said he was not only quite 
 certain that he could, but that he would obtain possession of the keys 
 whereby the robbery might be perpetrated. He said that ho knew a young 
 man named Teeter, the prisoner at the bar, who was in the office of the 
 superintendent of traffic on the line, and that no doubt Tester could get 
 possession of the keys for them. Agar remained for some time in London^ 
 in constant communication with Burgess and Pierce, and at length, some- 
 where, probably, about the month of July or August for Agar ia not 
 perfectly clear as to the date Pierce informed him that it had come to his 
 knowledge that the locks of the iron safes were to be altered, that one of 
 keys had been lost on one of the boats, that the company wero resolved to 
 have the locks recombined, and that the safes were to go to Chubbs'a ia
 
 512 TACTS, FAILURES, AND FHATTDS. 
 
 order to a recombination of the locks, an alteration of the tumblers, and 
 the fitting of new keys. He also said that Tester would have the new keys 
 in his possession after the locks had been altered, and that he could get an 
 impression of them from Tester. That being mentioned to Agar, he re* 
 plied that he would rather take the impressions himself, and he said, 
 *'Let Tester come to me with the keys, and I will take the impression." 
 Tester accordingly took the new keys to a house kept by a person named 
 Wallace, and handed them to Agar, who went upstairs with them and took 
 an impression of them in wax. That done, it seemed probable to Agar that 
 they might succeed in the robbery which they had planned. Having now, 
 gentlemen, gone so far, and having stated the case to you, as Agar will 
 prove it, let me, in order to assist you in forming your opinion upon it, 
 briefly recapitulate the evidence which I shall call to confirm the state- 
 ments of Agar up to this point. I shall prove to you, by Mrs. Hooker, the 
 landlady, that Agar went by the name of Adams while lodging in her 
 house at Folkestone, that he and Pierce went down to the pier together 
 every day when the tidal train arrived, and that at the end of the week 
 Pierce went to London, while Agar remained behind. I shall also prove, 
 by the evidence of Hazell and Steer, that their suspicions were excited by 
 the conduct of Pierce and Agar, who were always loitering about the pier 
 and station at the time of the arrival of the tidal trains. With respect to 
 the impressions of the keys I shall prove that Tester, being then in the 
 office of the superintendent of traffic, wrote, or conducted, the correspond- 
 ence with the Messrs. Chubb relative to the alteration of the locks. That 
 alteration commenced in June, and was continued down to October, when 
 the new keys were made ; and there can be no doubt, I should think, upon 
 your minds that that was a fact with which Pierce could not have been 
 acquainted, unless some one in the confidence of the company had informed 
 him of it. Having thus obtained the impression of one key, the question 
 arose how were they to obtain an impression of the other, for there were 
 two locks upon every safe, and they thought that probably both locks might 
 be used when gold was being transmitted. They therefore set themselves 
 to work to obtain an impression of the second key, and this was the in- 
 genious plan which they devised : Agar appears to have been a man who 
 had money at his command, for when he arrived in this country from 
 America he had somewhere about 3000 of his own, or, at all events, a 
 Bum which was no part of the produce of this robbery. He arranged, 
 therefore, that there should be sent down to Folkestone a box of bullion ot 
 the value of 200, which should be conveyed by the railway in the iron 
 safe in the same way as the bullion boxes of Messrs. Abell and others were 
 conveyed, and that it should be delivered to him (Agar) at Folkestone as iu 
 the ordinary course of business. That box was prepared by Pierce in the 
 month of October, 1854, and it was directed to " C. E. Archer, care of
 
 FACTS, FAILUEE3, AND FKAUDS. 513 
 
 !Mr. Lodger or Mr. Chapman," two of the officers of the railway company 
 at Folkestone. Agar having gone clown to Folkestone, as arranged, called 
 at the office of the company, and said that he expected a box of bullion, 
 and asked if it had arrived. It happened that upon the day that he called, 
 Ledger, whose duty it was to have delivered the box, had been married, 
 and that in consequence ho had gone away from the office for a few days. 
 Agar therefore found Chapman, one of the booking clerks, there. lie ap- 
 plied to Chapman upon a Saturday, but the box had not arrived ; on tho 
 Sunday, still it had not arrived ; on Monday it had arrived ; and Chapman, 
 before Agar's eyes, opened the safe with a key which he took from a cup- 
 board in the office. He brought out the box directed to Archer, gave it to 
 Agar, and took a receipt from him for it, the body of which was written 
 by Chapman, Agar excusing himself from writing more than the signature 
 on account of his having a sore hand a suggestion which was borne out 
 by two of his fingers being in finger-stalls at tho time. The box, as I 
 have said, was delivered to him, and ho saw the key which opened 
 tho safe replaced by Chapman. lie thus obtained accurate information 
 where the key No. 2 was kept, and having obtained it he went up to 
 London to communicate with Pierce. Now, in all these particulars I shall 
 corroborate Agar by the evidence of Chapman. Ledger was away on the 
 day in question, but Chapman was there, and he remembers the circum- 
 stances of tho box perfectly well. He remembers the sore hand and the 
 black silk finger-stalls, and ho remembers Agar representing himself as 
 Archer, receiving tho box from him, signing his name as Archer to the 
 receipt, and taking tho box away. I shall further prove to you that Ledger, 
 having in a day or two returned to his duty, saw Agar at Folkestone ; and 
 I shall prove also that Agar shortly after was at Folkestone with Pierce, 
 and that about that time he dined at the Pavilion Hotel with Tester. Agar, 
 as I have told you, having made this discovery, went to London and com- 
 municated to Pierce the information which he had obtained, and it was 
 resolved that they should at once set to work to obtain an impression of 
 key No. 2. Accordingly, at the end of October, they went down to Dover, 
 where they put up at tho Dover Castle, and having inquired the way across 
 the heights to Folkestone, they walked over, and arrived at the railway 
 station at Folkestone before tho tidal service train had come in. Now, when, 
 this train arrived, owing to the hurry and confusion consequent upon tho 
 embarcation of luggage and of property, which was known often to be of 
 great value, Chapman and Ledger were frequently for a short time absent 
 from tho office. Agar and Pierce watched these two persons, and saw them 
 both leave tho office. Pierce thereupon walked boldly in ; ho found the 
 key in the door of tho cupboard, which contained the key of the iron safe ; 
 ho unlocked tho cupboard, took out the key of Iho safe, and brought it to 
 Agar. Agar instantly took au injpro^iou of the key, and Pierce then again, 
 
 L L
 
 51-1 TACTS, FAILTTEES, A.HfI> PEAUDS. 
 
 entered tbo office and replaced it. Having thus obtained impressions of 
 keys Kos. 1 and 2, they had surmounted, in great part, the difficulties which 
 had occurred to the mind of Agar when the robbery was first suggested to 
 him. The next thing was to make keys from the impressions ; and Agar 
 and Pierce immediately set about it, Pierce at that time (October, 1854) 
 baring removed to "Walnut-tree Walk, Lambeth, and Agar to ITarleyford 
 Place, Eennington. They began by filing a blank key, or two blank keys, 
 which they endeavoured to bring into correspondence with the impressions 
 on the wax ; and you will find that while residing at Walnut-tree Walk, 
 Pierce, being a man of comparatively light complexion and light hair, ap- 
 plied to a hairdresser in Lambeth Walk to dress up for him a black wig, 
 and you will also find in the course of the evidence that he was disguised in 
 a black wig during a part of these transactions. They continued filing the 
 keys at Walnut-tree Walk until the mouth of December, when Pierce re- 
 moved to Crown Terrace, Hampstead Koad, the place where he lived when 
 the robbery was committed, and Agar removed to Cambridge Villas, Shep- 
 herd's Bush. They continued the filing of the keys there also, and I slip.11 
 call witnesses who will prove to you that they were so employed for a con- 
 siderable time, and I believe that I shall be able to produce before you the 
 very tools with which they worked. At length the keys were completed to 
 a probable correspondence with the impressions and with the locks which 
 they were intended to open, and it then became necessary to try them. 
 Pierce and Agar up to this time were in constant communication with 
 Burgess, and they met at various publichouses, including the Marquis of 
 Granby in Lcwisham Eoad, the Green Man in Tooley Street, and at Mr. 
 Steam's house, the White Hart, in St. Thomas's Street, adjoining the South- 
 Eastern Bailway Station. Well, the keys were made, and they had now 
 to be fitted. Agar will tell you that he went down in the van with Bur- 
 gess several times to Dover in order to fit those keys. They did not fit at 
 first, nor until some time after. They fitted more nearly, however, every 
 time he went. At last they fitted completely, and the robbery was re- 
 solved upon. Having made up their minds to try nothing until it would 
 be worth their while to do so, and having ascertained that golcl to the value 
 of 12,000 sometimes went down the line, they determined not to attempt 
 the robbery until a very large amount of gold should be in course of trans- 
 mission to Folkestone, and they prepared themselves for a quantity equal 
 in value to 12,000. They ascertained that 12,000 in gold would weigh 
 about 2 cwt., and they resolved that they would go to the shot tower on 
 the Surrey side of Hungerford Bridge, and purchase 2 cwt. of lead shot. 
 They went together on the first day, and each got 56 Ib. of shot, which 
 they carried over Hungerford Bridge to an omnibus, and thus proceeded to 
 Cambridge Villas, Shepherd's Bush. The next clay, or the day after, Pierce 
 went alone, and he bought 56 Ib. of shot ; and on another clay he went
 
 FACTS, TAILUKES, A> r D mAUDS. 515 
 
 again nrul purchased 56 Ib. more. Having thus provided themselves with 
 the lead, they considered what it would be necessary to procure in order to 
 carry the lead, so as to effect their purpose. They had the lead divided 
 into a number of parcels, which they put into small bags made of the check 
 cloth which is used for dusters, and they bought that cloth, as Agar thinks, 
 at Messrs. Shoolbred's, iu Tottenham-court Eoad. They made up some 
 of those bags at Tierce's house, and others at Cambridge Villas, where 
 Agar lived with a young woman named Fanny Kay. Having thus divided 
 the lead, they next proceeded to purchase some large carpet-bags and 
 some email carpet-bags, which might be placed in the large ones ; and 
 they tbeu ordered, at a shop at the corner of Great Queen Street, 
 Drury Lane, some courier-bags made of leather, which fit with a strap 
 close to the person, high up, and which may easily be concealed by a cloak 
 or a cape. I shall prove also that at the same time Tester purchased in 
 Drury Lane a small black leather bag, large enough to carry a bar of gold. 
 Being thus furnished, they removed what shot there was at Cambridge 
 Villas to Crown Terrace, Hampstead Eoad, the residence of Pierce, whence 
 it was more convenient for them to set out on their errand of plunder. I 
 shall satisfy you by the evidence of cabmen and others, whose testimony is 
 entitled to every belief, that night after night for nearly a fortnight Agar 
 and Pierce left the neighbourhood of Crown Terrace in a cab, never leaving 
 the house itself at which Pierce lived in the sight of the cabmen, but calling 
 the cab in the Hampstead Road ; and that thus equipped with their courier- 
 bags and carpet-bags, they proceeded to near St. Thomas's Hospital, to a 
 spot a little beyond the road which leads up to the station. I shall show 
 you that at that spot one of the two men always got out, and that night 
 after night they both returned, having done nothing beyond what I have 
 described to you, to near the place whence they started. I shall prove, 
 moreover, that on one occasion the cabman heard Agar say to Pierce, or 
 Pierce say to Agar, he does not know which, " It's not going down to- 
 night." At last the loth of May arrived, and Agar met Tester at the 
 station. Tester told him that it was " all right," and he and Pierce drove 
 up to the station. They handed their carpet-bags to a porter, who gave 
 them to Burgess, the guard, and Burgess put them into his own van. Agar 
 watched hia opportunity, and when the station-master's head was turned, 
 and just before the train started, he jumped into Burgess's van, while 
 Pierce took his place in a first-class carriage, both having provided them- 
 selves with first-class tickets. Agar was furnished upon this occasion with 
 a mallet and a chisel, and he at once opened, with nis ialse key, the safe 
 which contained the boxes of Messrs. Abell, Messrs. Spieimann, and Messrs. 
 Bult. He wrenched the iron clamps off the box of Messrs. Abell, with his 
 mallet and chisel. Ho took out the gold bars which it contained, substi- 
 tuted lor them some of the small check bags filled with shot, replaced at
 
 FACTS, FAILTTEES, A!N T D FRAUDS. 
 
 once the iron fastenings and nails which he had removed, lit some wax 
 with a taper which Burgess provided, resealed the boxes with an ordinary 
 seal which Pierce had purchased in Fetter Lane, and had the box all se- 
 cured, and the greater part of the gold safe in his courier or carpet bags, 
 before the train arrived at Kedhill. It had been arranged between Agar 
 and Tester and Pierce, that at Eedhill Tester should relieve Agar and 
 Pierce of a portion of the gold ; and in the black bag which Tester had 
 bought, and which he had left in Burgess's keeping, one of the bars of 
 gold was for that purpose deposited before the train arrived at Eedhill, 
 where it was given to Tester. Remember, gentlemen, I am now telling you 
 what Agar states ; but I believe that I shall be able to corroborate Agar 
 as to this fact in a manner which shall leave little doubt on your minds. 
 Tester lived at Lewisham, and his duties kept him late at the office of the 
 South-Eastern Eailway Company. He did certainly go to Eedhill about 
 that time in the month of May, and he did bring back with him a black 
 bag, which was observed to be heavy by those who saw him on his return j 
 and I shall prove by Jones, the guard of the up train upon that very night, 
 and by other persons in the service of the company, the way in which 
 Tester returned to his home upon that occasion. At Eedhill Pierce got 
 into the same van with Burgess and Agar, and the train had no sooner 
 started than the safe was again opened, and Messrs. Spielmann's box was 
 attacked. They took out the whole of its contents, and disposed of them 
 in the courier-bags and carpet-bags as they thought most convenient. 
 Lastly, they attacked Messrs. Bult's box, which they found to contain 
 much smaller bars than Messrs. Abell's, being Californian gold. It was 
 not convenient for them to take the whole of that. They abstracted, there- 
 fore, as much as they thought they could manage, and they replaced it with 
 what they conceived to be a corresponding weight of shot. The boxes were 
 all carefully re-adjusted, the van was swept up, and everything was appa- 
 rently quite right when the train arrived at Folkestone. The iron safes 
 were there given out in the usual way, and the train, with Burgess and 
 Pierce and Agar, went on to Dover. At Dover they got their carpet-bags 
 as first-class passengers from Burgess, and they went into the Dover Castle 
 publichouse, where they, somewhat inconsiderately, relieved themselves of 
 their courier-bags in order to take refreshment, and they afterwards found 
 it rather difficult to replace them without observation. However, in order 
 to do this they sent the waiter out to get a soda-water bottle filled with 
 brandy, and during his absence they put on the courier-bags again, so that 
 they were ready to start once more when the waiter returned with the 
 brandy. The train started at two o'clock in the morning. Pierce had 
 provided return Ostend tickets, which franked the holder of them from 
 Ostend to London. The porter at the station observed that no luggage 
 had passed from Ostend that night. " Oh, no," was the answer, "it came
 
 FACTS, FAILT'BES, AND FRAUDS. 517 
 
 tbe night before," and, giving the man a few shillings, their bags were put 
 into the train, and, without being further questioned, they started for 
 London. Arrived in London, they immediately hailed a cab, and directed 
 the driver to take them to the Great Western Kailway Station. When 
 they were nearly there, however, they countermanded that order, as if they 
 had made a mistake, and directed him to drive to the North- Western Sta- 
 tion, and before they got there they told him to stop at a publichouse. 
 There they alighted, but, instead of going into that particular publichouse, 
 they entered another, where they remained a very short time, and thence 
 they proceeded to Pierce's house in Crown Terrace. They had not been 
 there long when they determined to go down to the Borough Market, where 
 they were to meet Tester, and were to obtain from him the bar of gold 
 which he had brought up from Kedhill on the previous night. They met 
 him on the steps of the market, and, having obtained from him tho bar of 
 gold, they next proceeded to the shop of a silversmith in Leadenhall Street, 
 near the India House, and they there disposed of a portion of the American 
 coin which had been in Messrs. Spielinann's box, for which they obtained 
 213 10*. in cash. They then proceeded to the shop of Messrs. Prommel, 
 Rudolf, and Co., money-changers in the Hayrnarket, where they sold ano- 
 ther portion of American golden eagles, for which they received a cheque 
 for 203 6*. 8d. Having done this, they returned to Crown Terrace, and 
 thence they conveyed the greater portion of the gold which had been stolen 
 to Cambridge Villas, the residence of Agar. The first thing that they did 
 there was to endeavour to cut off a portion of gold from one of the bars, 
 which they succeeded in doing, to the extent of about 100 ounces, by means 
 of a hammer and chisel. That gold was given to Pierce, and it will be 
 proved that he sold it for about 3 an ounce. Pierce had also the greater 
 part of the cash which was the produce of tho American eagles, and he was 
 in possession altogether at that time of a sum amounting to 716 16s. 8d. 
 And I beg your attention to the fact that as early as the 28th of May Pierce 
 had the means, by the sale of the American coins, and of tho 100 ounces 
 cut off from one of the bars of gold, of obtaining, as you will find that he 
 did obtain at the Bank of England on the 28th of May, six 100 Bank of 
 England notes in exchange for 600 sovereigns. I shall call your attention 
 to this fact again presently. Tho rest of the gold being now at Cambridge 
 Villas, it was a question how it should be disposed of. Agar was there 
 living under the name of Adams with Fanny Kay, who passed as his wife, 
 and he lived next door to a gentleman named Bessell, whose wife died 
 about that time. Agar had in his service at that time a girl named Char- 
 lotte Baker, and Mr. Bessell had a servant named Wild, both of whom we 
 hall call. It was determined that the best way to get rid of tho gold was 
 to melt it into smaller pieces, and accordingly iron ingots or moulds of 
 about a foot in length, and two inches in breadth, tapering down to a point
 
 518 FACTS, FAILURES, AND FBATTDS. 
 
 underneath (so that the transverse section would be nearly an equilateral 
 triangle), were obtained at a shop in Clerkenwell, and they then proceeded 
 to erect a furnace at Cambridge Villas. The house consisted of two rooms 
 on the ground-floor, and a kitchen, two rooms above, and a dressing-room 
 and a wash-house behind. It will be shown that they purchased a number 
 of fire-bricks, and that they took out the stove of one of the bedrooms up- 
 stairs, and put up the furnace in its place ; and I shall prove by Ar;ar and 
 by Fanny Kay, who, though carefully excluded from the room, heard and 
 saw enough to enable her accurately to confirm the evidence of Agar, that 
 they were there engaged day after day for a considerable time workin< in a 
 tremendous heat while melting that gold. I shall satisfy you. moreover, 
 that in the course of the work one of the crucibles was broken, and that 
 the molten gold falling upon the floor burnt it, and that some of the marks 
 of the burning remain still ; and, more than this, I shall produce some of 
 the bricks, with pieces of gold still adhering to them. The gold which was 
 thus melted at Cambridge Villas remained there for some time, until, in 
 consequence of a quarrel between Agar and Fanny Kay, Agar left Cnm- 
 bridge Villas, and went and took lodgings at Kilburn ; and about that time 
 the ingots of gold were removed to Pierce's house. Shortly after this 
 Pierce gave up his residence at Crown Terrace, and took a house at Kilburn, 
 which he called " Kilburn Villa ; " and there Agar went to live with him 
 as a lodger. I shall prove that, at Pierce's suggestion, a hole was dug near 
 the pantry of Kilburn Villa, and that the gold was deposited there. Por- 
 tions of it were taken out from time to time, however, and given to a person 
 named Saward, who lived in that neighbourhood, and who said that he had 
 opportunities of disposing of gold. It appears that gold of the value of 
 2500 was sold to Saward by Agar and Pierce, and that the produce was 
 distributed among the three prisoners and Agar. Now, I beg your atten- 
 tion to the fact which I told you I should advert to again namely, that 
 before the melting of the gold began the sale of the American eagles and of 
 the 100 ounces of gold had placed Pierce in possession of at least 600, and 
 I shall prove to you in such a way as to leave no doubt upon your minds 
 that the produce of the 600 sovereigns, to which I have before adverted, 
 was divided between the prisoners at the bar. On the 28th of May a 
 person I can't tell you who it was went to the Bank of England with 
 600 sovereigns, and giving the name of Edgington, asked to have sis 100 
 Bank of England notes given him in exchange. I shall call before you a 
 person from Messrs. Edgington, whose name was no doubt familiar to the 
 servants of the South-Eastern Eailway Company, they being large tarpaulin 
 manufacturers in the neighbourhood of the station, and he will tell you that 
 he had no Knowledge whatever of such a transaction. The six 100 notes, 
 however, of course had numbers, which were taken down at the Bank, and 
 I shall prove that in the September following two of those notes went back
 
 FACTS, FAILrHES, A2TD FBA.UDS. ">19 
 
 to the Bank of England with the name of the prisoner Tester on them, and 
 I shall also prove that the signature is in his handwriting. Another of the 
 notes went back to the Hank in November, 1855, with the name of " Raf- 
 fan" upon it, Mr. Rattan being a respectable fruiterer near Fitzroy Square, 
 who will swear" that he put his name on it, having received it from Pierce 
 and changed it for him. The history of the other threo 100 notes is a 
 little more complicated. They were paid into the Bank of England by 
 Messrs. Robarts, Curtis, and Co. in tlio month of January, who had re- 
 
 them from Messrs. Hutchinson, the stockbrokers, who had purchased 
 for Burgess, by direction of a person named Lee, a number of Turkish 
 bonds, and who had received from Leo the notes iu question. Lee had 
 received them from Burgess's wife. And it is remarkable that, in addition 
 to the three 100 notes which will thus be traced from Burgess to Lee, 
 from Lee to Ilutchinson, from Ilutchinson to Messrs. Robarts, and from 
 Messrs. Eoburts to the Bank of England, there were also paid into their 
 account at Robarts's, by Hutchiusou and Co., eight 10 Bank of England 
 notes, which were given by the Bank of England in exchange for the second 
 100 note, which had the name of Tester on it. There can be no doxibt, 
 
 re, I submit to you, that the prisoners shared that 600. I shall 
 further prove that after having held those Turkish bonds for a time, Bur- 
 gess employed Lee to sell them. Lee sold them accordingly, and wrote the 
 name of Burgess upon them. Having sold them, Burgess deposited the 
 proceeds iu the hands of Mr. Stcr.rn, the landlord of the White Hart, in 
 St. Thomas's Street, who suggested that he should be allowed to place the 
 money v.ith lus brewers, the Messrs. Reid, who would take charge of it, 
 and allow interest upon it. I shall prove to you thut Mr. Steam's advice 
 was adopted, and that ho took the money, which was in notes, to Mr. 
 Smith, the cashier of Messrs. Reid, who wrote upon them the name of 
 Steam. I have told you that of the gold melted at Shepherd's Bush, 
 2500 worth was sold by Saward, aud divided among the prisoners and 
 the approver. Now, I shall prove that in August, 1834, Agar had pur- 
 chased, through a stockbroker named Young, two Spanisli Active bonds of 
 the nominal value of 700, and that when the division of the 2500 took 
 place, it \vns arranged between Agar and Tester, that Tester should take 
 those two Spanish bonds as his share, and that he did take them accord- 
 ingly. I shall also prove to you that shortly after that Tester, through his 
 father, sold those Spanish bonds ; that he bought with the proceeds two 
 other Spanish bonds ; and that he sold those two other Spanish bonde, and 
 bought with the proceeds one other Spanish bond, which is now held for 
 him by a relative of his own, whom I shall call before you. I have thus I 
 believe, gone through the whole of the substantial part of the evidence 
 which it will be my duty to lay before you ; and you will observe tlint, 
 although the whole of the facts will ha deposed to by Agar, the proof by
 
 520 FACTS, FAILUBES, A>*D FEATTDS. 
 
 no means rests entirely with. him. Far from it ; for there is a very strong 
 circumstantial case against the prisoners altogether independently of the 
 evidence of Agar. You may ask how it happens that Agar after this rob- 
 bery should be induced to come forward to make this statement. The facts 
 are these: Agar was arrested in August, 1855. At that time he had 
 deposited in a trunk at Pierce's house a considerable portion of the pro- 
 duce of the robbery. He had also property of his own, and having been 
 reconciled to Fanny Kay, or entertaining still a kindly feeling for her as 
 the mother of his child, he arranged, when he was arrested, that Pierce 
 should take possession of all his property, and should provide for Fanny 
 Kay and his child. Pierce for a time did contribute something to her 
 support, but afterwards he desisted from doing so, and the result was that 
 Fanny Kay was reduced to the greatest distress. 
 
 Mr. Serjeant PAEEY (for Pierce). Keally that has nothing to do with 
 this inquiry even if it be true. 
 
 Mr. Serjeant SHEE. Fanny Kay made a statement to the solicitor for 
 the prosecution, and I am stating what it was. 
 
 Baron MABTIN. It is quite legitimate ; the learned counsel is explain- 
 ing how Agar came to make this statement. 
 
 Mr. Serjeant PAREY. Surely the motives of a man under such circum- 
 stances cannot be evidence ! However, if your Lordship thinks otherwise, 
 I have not a word to say. 
 
 Mr. Serjeant SHEE continued. I will not dwell upon the subject. 
 Suffice it that the fact of Pierce's conduct came to the knowledge of Agar, 
 and that Agar then made known all the circumstances of the robbery. 
 This is the whole of the case on the part of the prosecution, and it really 
 is lamentable to reflect upon the amount of skill, dexterity, perseverance, 
 and ability exercised upon the execution of a criminal design, which this 
 robbery displays. Employed in a better cause, how different might have 
 been the result ! In justice to the prosecution, I must add that had not 
 an equal, or a greater amount of skill, dexterity, perseverance, legal know- 
 ledge, and discretion been evinced on the part of the professional advisers 
 of the railway company, it is hardly possible that these men could have 
 been brought to justice. I now leave the case, gentlemen of the jury, in 
 your hands, feeling confident that you will give to it that candid and 
 patient consideration which its importance demands. 
 
 Edward Agar, the approver, was then called, and examined by Mr. 
 BODKIN. He said I am at present a convict under sentence of transpor- 
 tation for life, having been convicted of uttering a forged cheque. I am 
 one of the persons by whom a robbery of gold was committed in May, 1855, 
 on the South-Eastern Eailway, and I know the three prisoners at the bar. 
 Pierce I have known for five years or more. He was not in the employ- 
 ment of the South-Eastern Railway Company when I first knew him.
 
 TACTS, FAILT7BES. SD FBA.TJDS. 521 
 
 Burgess nnu Tester I bare known between three and four jears. They 
 were both in the employment of the railway company. I conversed with 
 Piercv on the subject of this robbery about four years ago. That was after 
 my return from the United States of America, but I had spoken to him 
 relative to it before I went to America. At the time I speak of he was 
 clerk at Clipson's betting-office, in King Street, Covent Garden. I met 
 him upon that occasion accidentally ; but, as I have said, I had spoken to 
 him on the subject of the robbery before I went to America. He had pro- 
 posed it, but I had declined, as I thought that the ihing was impracticable. 
 I thought it could not be done. When I met him in King Street he asked 
 if I had thought any more of the robbery, and I said that I believed it 
 would be impossible to do it unless an impression of the keys could bo pro- 
 cured ; and he then said that he thought ho could get an impression if I 
 would undertake the business. We had several meetings after that, at all 
 of which the conversation turned upon the subject of obtaining the impres- 
 sions. He repeated that he thought he could get them ; and I said that if 
 he did I had no objection to undertake to complete the robbery. He then 
 said that he would endeavour to get the impressions, and he would let me 
 know the result. I asked him if he got the impressions how many persons 
 were to be connected with the affair, and he said " four," naming Burgess, 
 Tester, himself, and myself. About twelve months before the robbery, I 
 went down to Folkestone, having in the interval had numerous interviews 
 with Pierce. I had also conversed with him respecting the robbery in tho 
 presence of Burgess. Tester I had not spoken to before, but I knew him. Ho 
 was station-master at Margate at that time, and I went down to Margate 
 to see him. Pierce wrote to him to tell him that I was going, and said 
 that Tester could show me an impression of the cashbox key, if that would 
 be auy criterion for me to go by in making the keys of tho bullion chest. 
 I accordingly went, and saw Tester at Margate. I went to his lodgings, 
 took some tea with him, and stopped there that night. He showed 
 me an iron safe in the office at Margate, and the key belonging to the 
 cashbox, and asked if that would be any guide to go by in making the keys 
 for the bullion chest. I told him, " Not the least." He said that it was a 
 great pity that Pierce had not mentioned the matter to him before, because 
 when he was a clerk at Folkestone he had the keys in his possession. I 
 then returned to London, and in consequence of that last observation ot 
 Tester's, Pierce and I were induced to go down to Folkestone. It was 
 about six or seven months after I had seen Tester at Margate that we 
 determined to go to Folkestone. The way it came about was this: 
 After I returned from Margate I saw both Burgess and Pierce, and I told 
 them my opinion, and reported what I had learnt from Tester. They 
 then asked what I thought ought to be done, and I said that the best 
 thing would be to go to Folkestone, to take apartments there, watch tho
 
 522 PACTS, FATLL'EES, AND FEAT7DS. 
 
 trains m and out, and so discover whether the keys of the bullion chest 
 were there, and how they were to be got at. It was arranged therefore 
 that that should be done, and Pierce and I went to Folkestone accordingly. 
 That was about a year before the robbery. At Folkestone we hired apart- 
 ments consisting of two bed-rooms and a sitting-room. I don't know the 
 name of the house, but it was on the right hand side going towards the up 
 station. I went by the name of Adams, but I forget the name that Pierce 
 adopted. We stayed there a fortnight, and went down constantly to the 
 harbour on the arrival of the train from London and the boat from Bou- 
 logne, and we carefully watched the iron safe to see whether it was un- 
 locked, and what was done with the keys. Owing to our being there so 
 often, I suppose, the police took notice of us, and the police inspector of 
 Folkestone followed Pierce. I told Pierce that very likely the inspector 
 was looking after him, suspecting that he was there to pick pockets, or 
 something of that sort. Pierce " took him through the town," and got 
 away somehow. In consequence of that, however, Pierce returned to 
 London, but I remained in Folkestone some few days longer. Before 
 Pierce left we had noticed generally all the circumstances connected with 
 the arrival and departure of the bullion chest, and upon one occasion we 
 had seen it opened. It was placed on the platform, and a man named 
 Sharman came and locked it with one key, which was attached by a loop 
 to a label, from which another key was suspended, which I suspected to be 
 the other key required for the safe. I watched Sharman deposit those 
 keys in the cash till. Daring the few days that I remained at Folkestone 
 after Pierce left I frequented a public-house which was kept by a person 
 named Meadows, I think in the upper part of the town, and where Shar- 
 man, and Ledger, and others in the employ of the company used to go to 
 play billiards. At that time Pierce resided in Walnut-tree Walk, Lam- 
 beth. It was arranged by him that I should go to Folkestone, and Tester 
 would introduce me to a person named Sharman, a clerk in the company's 
 employment there, who would show me the keys. I went down accord- 
 ingly, and Tester was to meet me there as though by accident. This was 
 about eight or nine moutlis before the robbery. I stopped at the Pavilion 
 Hotel. I saw Pierce and Tester at the up station on a Sunday, and we 
 then walked down to the harbour station arm-in-arm. Tester introduced 
 me to Sharman. It was then proposed that we should go to the Pavilion. 
 We went there and had some refreshment. I and Tester dined together 
 that day, and he asked me my opinion of the robbery. I replied that I 
 thought I should be able to manage it now that I knew Sharman. Tester 
 left for London, and I remained behind with Sharman, from whom, he 
 being a very sedate young man, I could not, however, get much informa- 
 tion. I went subsequently to London, and told this to Burgess and 
 Pierce, and then suggested that the matter should be allowed to rest for a
 
 FACTS, FAILURES, AKD FBAUDS. 523 
 
 time. I afterwards learnt from Pierce that he had received a letter from 
 Tester, stating that one of the keys of the bullion chest was lost, and that 
 the chest would have to be sent to Messrs. Cliubb's to be repaired. It was 
 then proposed that Tester should be supplied with wax to take on impres- 
 sion of the keys when the bullion chest came up ; but I objected, saying 
 that I must take the impression myself. By appointment I afterwards 
 met Tester at the Arcade, near the London Bridge station. He informed 
 me that he had not got the keys. We met several times without success, 
 not liking to stand long together in the Arcade ; but we agreed to see each 
 other in a beer-shop, at the corner of Tooley Stfcet, kept by a person named 
 Wallace. I accordingly met Tester and Pierce there, when the former 
 produced the keys- I said, " I must go into another room and take the 
 impression." Tester hesitated to part with them, and asked me if I could 
 not do it there. I said, " No." I then rang the bell, and was shown into 
 a bed-room, on the pretence that I wanted to wash my hands. I there 
 took the impression of one of the keys, after which I returned the key to 
 Tester. I knew the train to which Burgess acted as guard. We were in 
 the habit of meeting Burgess at Steam's public-house, which the railway 
 officials frequented. I there informed him how the matter was progressing. 
 I then went for th* first time to Pierce's house. It was arranged that we 
 should again go to Folkestone, so as to bo able to obtain the impression of 
 the keys kept there. I went to Folkestone accordingly, and stayed at the 
 Pavilion Hotel. While I was there Pierce forwarded to me a box con- 
 taining 200 or 300 sovereigns, which I had advanced for that purpose. I 
 received a letter from Pierce, by post, informing me that he had sent the 
 box by rail to me, that it was insured in the usual manner, and was 
 addressed to me in the name of Archer, at Folkestone, under the care of 
 Chapman or Ledger. On the receipt of that letter I went to the railway 
 office, and produced it there. The box had not then arrived. I called 
 again on the Sunday, on which day the box reached Folkestone. I saw it 
 taken out of the iron chest in the usual way, and then forwarded to the 
 lower station. I also then saw the chest opened by Chapman ; it had two 
 locks upon it. I noticed that he took the key from a cupboard in the 
 office. He brought out the box that I expected, and gave it to me, with a 
 form to fill up with my signature. I signed the form, "E. R. Arrher." 
 The document produced is the one that I signed. I took the box to the 
 Pavilion Hotel. I then returned to London, and had an interview \vith 
 Pierce and Burgess, when I told them where the key of the bullion chest 
 wa kept. It was arranged that I and Pierce should go down to Dover, 
 and we went down accordingly by a train that arrived at mid-day. Wo put 
 up at the Rose Inn, close by the church. Wo walked over to Folkestone, 
 and got there before the Boulogne boat came in. Wo were walking about 
 the harbour when she arrived. In a few minutes we saw Chapman and
 
 524 TACTS, I-AILTTEES, A!M> FEAT7DS. 
 
 Ledger leave the railway office ; upon which Pierce went in there, while I 
 remained at the door. Pierce passed on to the cupboard, from which he 
 took the key, and brought it to me. I then took an impression of the 
 key, and returned the latter to Pierce, who replaced it in the cupboard. 
 The door by which we entered the office was shut, but not locked at the 
 time. Don't know whether the cupboard was locked, but I suppose it was 
 not. We returned to Dover on the same day and had tea ; after which we 
 came back by train to London. I then met Burgess, and told him I had 
 got an impression of the key. He said, " It is a good job, and I will do 
 my best to assist you." I saw Burgess at the Marquis of Granby, New 
 Cross, several times about the business. I next had some blank keys 
 made, and filed them to the size of the impression that I had taken at 
 Folkestone. This was done at Pierce's residence, Walnut-tree Walk. 
 Fanny Kay had been living with me as my wife before this, and she and 
 her child were then staying at the Harleyford Koad. She and I had some 
 differences about this time, but we made it up, and came together again. 
 I took a house for her and me at Cambridge Villas, Shepherd's Bush. I 
 finished filing the keys there. Pierce then left Walnut-tree Walk, Lam- 
 beth, and took a house in Crown Terrace, Hampstead Koad. It was next 
 arranged that after I had completed the keys I should go down by the 
 train, and try them on the bullion chest. This arrangement was made 
 between me and Burgess. I went seven or eight different times by rail 
 with him to try the keys upon the lock before they would answer. We 
 succeeded at last in opening it. Burgess always acted as the guard of 
 the train when I travelled for this purpose, and he saw the chest 
 opened. I afterwards went to Burgess's house, to talk over matters. 
 When the tidal train left early in the day, any bullion that came too late 
 for it had to go by the mail train. It was the mail train that was 
 robbed. We calculated that we should get about 12,000 worth of gold, 
 that being about as much in weight as we should be able to carry. 
 Pierce and I accordingly went across Hungerford Suspension Bridge to the 
 shot tower, and there purchased and carried away each half a cwt. of lead, 
 which we put in bags and conveyed to my house at Cambridge Villas. We 
 went to the same place again and got another cwt. between us to make up 
 the required two cwt. The shot was then placed in 8lb. and 41b. check 
 bags. Fanny Kay and her child, and a servant named Painter, were at 
 home when this was done. My house has three rooms on the first floor. 
 Don't think Fanny Kay saw us transfer the shot from the large to the small 
 packets. We found that we had more shot than we wanted, and we threw 
 the excess away in some fields situated in the neighbourhood. The small 
 packets of shot were put into four courier-bags, which were made to order 
 at a shop near the corner of Drury Lane. The strength of the bags was 
 tried at Cambridge Villas, when some of the stitching gave way, and I
 
 FACTS, FAILT7EES, AND FHAUDS. 
 
 repaired it. They were made of drab leather. The shot was put in carpet- 
 bags and removed in a cart to Pierce's house in Crown Terrace, llampstead 
 Boad. A black leather bag was also made for Tester, who consented to 
 go to Reigate and there take part of the gold and convey it to London, so 
 as to relieve us of a part of the burden. All the bags were taken to Pierce's 
 house. Everything being in readiness for the robbery, arrangements were 
 made when Burgess got on the mail-train that Pierce, I, and Tester should 
 meet at London Bridge. I and Pierce were to go in a cab with the courier 
 and carpet-bags to St. Thomas's Street near the Hospital. Pierce wore a 
 black wig and whiskers, and had on a cloak, under which he carried two 
 courier-bags, with a courier-bag in his hand. I also had on a cloak, and 
 carried the other two courier-bags and a carpet-bag. I took off my cloak 
 when we got to St. Thomas's Street, and left it and the courier-bags with 
 Pierce in the cab while I walked up to the station and met Tester. Tester 
 told me that no gold was going down that night. This proceeding was 
 repeated five or six times before the robbery was actually committed. On 
 some of these occasions Tester came to the cab and had a conversation with 
 Pierce relative to the robbery. Once Pierce had a carpet-bag on his 
 shoulder, which he left with me at a coflee-shop near the Eagle, College 
 Street, while he went home and dressed himself up. On the night of the 
 robbery Pierce and I were at a public-house together near the turnpike- 
 gate, Camden Town, whence we took a cab and proceeded with our bags to 
 St. Thomas's Street. I got out there and went to the railway station as 
 usual. Burgess then came out of the station and wiped his face. This was 
 the appointed signal by which he was to indicate to us when the bullion 
 was going down by train. Burgess then went to his train, when I returned 
 to Pierce in the cab, and told the cabman to drive us up to the Dover Rail- 
 way office. I had previously seen Tester on the incline near the terminus, 
 when he said to mo in a hurried manner, "All right." I went to the 
 ticket-office and procured two first-class tickets. We kept our courier- 
 bags on, but gave the carpet-bags to a porter. I handed Pierce his ticket, 
 and he entered a first-class carriage. I walked up and down the platform 
 till the train started, and saw the carpet-bags given to Burgess, who placed 
 them in the van. The small black bag was in one of the carpet-bags. 
 Having watched for my opportunity, I at last jumped unobserved into 
 Burgess's van, when I crouched down in a corner and Burgess threw his 
 apron over me. I was in the guard's portion of the van until the train had 
 started, after which I got up and saw that there were two iron safes in it. 
 I opened an iron safe, and took from it a wooden box. The box now pro- 
 duced is the one in question. It was fastened by nails and iron bands, and 
 was also sealed. I had a pair of pincers with mo for raising the iron, and 
 also box-wood wedges with which to force open the lid. I took out from 
 that box I believe four bars of gold. Olio bar I placed in Tester's bag
 
 526 TACTS, FAILUBES, AXD PEAUHS 
 
 and gave it to Burgess. The other three were placed in the carpet-bag. 
 I then put the shot into the bos. instead of the gold. Burgess put the bag 
 intended for Tester into the guard's compartment. The train by this time 
 had arrived at Reigate. When we stopped there I gave the bag to Bur- 
 gess, and then heard Tester say, " Where is it ?" I saw no more of it till 
 the next morning. I did not see Tester at Reigate, but only heard his 
 voice. When the tram again started, Burgess joined me in the van, and I 
 opened another box in the same safe, containing American goil coins. I 
 don't know the amount of those coins, but I put them into a bag and sub- 
 stituted shot for them also. I then fastened down both of the boxes the 
 one that had the American gold coin in it with a screw and I sealed them 
 again with some seals and a wax taper, which I had purchased for the purpose. 
 I then locked the one chest and opened the other, in which there was a box, 
 which I found to contain small bars of gold. I took out as many of the small 
 bars of gold as I thought I had shot sufficient in weight to replace, and then 
 I fastened up the box again. The safes from which I took the gold were 
 removed from the train by the railway company's officers at Folkestone, 
 and we went on with the train to Dover. I and Pierce took the courier- 
 bags and the carpet-bags with us. We put up at the Dover Castle Hotel, 
 near the railway terminus. This was about eleven o'clock at night. We 
 entered the coffee-room, where we placed the carpet-bags under the win- 
 dow, and then ordered our supper. During the absence of the waiter we 
 took off our courier-bags. The waiter asked whether we wanted beds, and 
 we answered " !No ; " observing that we had driven in to the town, and were 
 going back to London by the 2 A. M. train. I left Pierce at the inn, and 
 went myself to the pier and threw my mallet, chisels, and other tools into 
 the sea. When I returned to the hotel we paid our bill, and then sent the 
 waiter for some brandy in a soda-water bottle, in order that we might take 
 advantage of his absence to put on our courier-bags again before leaving. 
 We next walked to the railway station to return to town, and on a railway 
 porter asking us for our carpet-bags, I refused to give them to him, but the 
 man persisted in his request, and almost forced the bags out of my hands. 
 The porter inquired whether we had tickets, when I replied that we had 
 Ostend ones, upon whieh he asked to see them, stating at the same time 
 that there had been no luggage passed through the Custom House that day. 
 I answered " No ; we came yesterday ; " and at the moment slipped some 
 silver into his hand. The porter then left us, and we went into a first-class 
 carriage, in which Pierce and I travelled alone. Burgess was the guard of 
 this train. On our way up we opened the large carpet-bag, in which were 
 " dummies," and threw out the hay they contained j and at one of the sta- 
 tions at which we stopped Pierce got out and placed the empty bags behind 
 the door of the waiting-room. The gold was then in the small carpet and 
 courier-bags. On arriving at London Bridge we took a cab, and ordered
 
 TACTS, FAILUHES, A^ FEAUDS. o27 
 
 tbc driver to take us to the Great Western Baihvay, but before reaching 
 that place we told the cabman lie had made a mistake, and desired him to 
 drive to Euston Square Station. "When we got out there we discharged 
 the cab, but Pierce engaged another, in whicli we were conveyed to the 
 neighbourhood of Crown Terrace. We there dismissed the second cab, and 
 took the bags to Pierce's house. Thence we proceeded to London Bridge 
 in a cab, with the American gold coin ; and I met Tester with a bar of gold, 
 as had been previously arranged. Testev garc me the bar of gold, and then 
 went, as I believed, to his office. I and Pierce again took a cab, and drove 
 to the vicinity of the East India House. Pierce got out there, taking with 
 him part of the American coins, and sold them at a shop at the corner of 
 St. Mary Axe. I remained in the cab, and when Pierce returned he said 
 he had to wait till the money-changer could go to the Bank for gold ; but 
 he had obtained upwards of 200 for the American coins. We then went 
 to another money-changer's, near the Haymarket, where Pierce sold the 
 remainder of the American gold coins for another 200, which was paid in 
 a cheque on the Union Bank. The cheque was then taken by us to the 
 bank and cashed. We afterwards returned to Pierce's house. Pierce had 
 the whole of the proceeds derived from the sale of the American coins. At 
 this time I was not in want of money, but Pierce was, he having been 
 obliged to pledge his things to obtain the means of support. Pierce and I 
 afterwards hired a horse and cart, and conveyed the bars of gold to Cam- 
 bridge Villas, where I then lived. Fanny Kay was at home when we ar- 
 rived. The bags were first put into the parlour, but were afterwards 
 removed to a trunk in my bed-room. Pierce took back the horse and cart, 
 and I eaw no more of him that day. A day or two later Pierce came to my 
 house and cut off 100 ounces of gold from one of the bars, and sold it for 
 3 per ounce. I had the proceeds of that, namely, 300. We then deter- 
 mined to make a furnace, and melt the gold. This was doDe in my first 
 floor back-room. Wo took out some of the stones of the floor for the pur- 
 pose, and replaced them with fire-bricks. The brick now produced is one 
 of them, and on it small particles of gold can now bo detected, from the 
 running over of the melting-pot. The melted gold was poured into an 
 ingot prepared to receive it. In removing one of the crucibles from the 
 fire I met with an accident. The crucible broke, and the gold was scat- 
 tered about the floor, which was burnt. While we were thus occupied, 
 Fanny Kay on one occasion complained of the great heat, and asked what 
 we v, ere about. I told her never to mind, as we were engaged about our 
 owu business. Pierce stayed all day and took his meals Avith me, but he 
 went home to Bleep. When we had melted the gold, and run it into ingots, 
 I began to sell it. I first sold 200 ounces to a man named Saward. I had 
 known him for some years. When I fii^t knew him ho had chambers at 
 No. '!, Inner Court, Temple. He was n barrister, I understood j indeed, I
 
 528 TACTS, FAILTJHES, ASD PEAT7DS. 
 
 have seen him pleading in Westminster Hall as a barrister. I first saw 
 him about this business at a public-house near Ball's Pond. He gave 
 3 2s. Gd. an ounce for the gold, and I gave him Gd. or Is. per ounce com- 
 mission. After the 200 ounces I sold him another parcel of 500 ounces. 
 About this time I had a quarrel with Fanny Kay, in consequence of which 
 I left her, and took lodgings at Kilburn. I went there under the name of 
 Adams. We had previously removed all the gold to Pierce's, who also 
 went to live at Kilburn. I lived with him a short time there, and after- 
 wards I took lodgings at Stanley Grove, Paddington Green. While I was 
 at Pierce's for a short time, Burgess and Tester came up, and we divided 
 the proceeds of the robbery as far as they had been realized. Pierce, Tes- 
 ter, and I had 600 each, and Burgess had 700. The money divided was 
 in notes, which had been obtained by Pierce in exchange for the gold which 
 I received from Saward. My notes were in a trunk at my lodgings at Stan- 
 ley Grove, Paddicgton Green, where I was arrested. The rest of the gold, 
 which was unsold, was buried by Pierce in a hole which he dug in his 
 pantry, under the front steps of his house. When the robbery took place 
 I had in my possession seven Spanish bonds for 100 each, which I had 
 bought through Mr. Young, the stockbroker, five of which I sold to Tester 
 on the night of the division at 18 per 100. On the morning I was ar- 
 rested I had been with Pierce to Shepherd's Bush to fetch my child thence. 
 After that I went to keep an appointment with a man named Humphreys, 
 and it was then that I was arrested on the charge on which I was convicted. 
 I have never seen Pierce again till he was arrested, but I made arrange- 
 ments with him, through Mr. Wontner, the solicitor, as to the investment 
 of 3000 which I had in the funds for the benefit of my child and its 
 mother. Mr. Wontner bad the money, and handed it over to Pierce's 
 wife. 
 
 Cross -examined by Mr. Serjeant PABRY (for Pierce). I am now forty- 
 one years of age, and the only employment I have ever been in was that of 
 Mr. Davis, of Chiswcll Street. That is about fourteen years ago, or it may 
 be twenty I won't swear which. I don't know that there was ever any 
 robbery there while I was in his employment. Since then I have got my 
 living by speculating and various things. I have been in the United States, 
 where I speculated a good deal. It was perhaps about five years after I 
 left Mr. Davis that I first went to the United States, but I won't be sure 
 as to the time. During that fire years I lived how I could ; by what I 
 could get. In fact, I decline to say how I lived. 
 
 Mr. Serjeant PABBY. Were you not engaged in forgery ? 
 
 Witness. No. I never was engaged in a forgery in my life. 
 
 Mr. Serjeant PABBT. What was it? 
 
 Witness. I decline to say. 
 
 Mr. Baron MABTIJT. I don't see why you should not answer the ques-
 
 FACTS, FAILURES, AND FRAUDS. 529 
 
 tion. You can't put yourself in a worse position than you are now, except 
 you 'did something which would render you liable to be hanged. 
 
 Mr. Serjeant PAEBT. Did you do anything during that time wliich 
 would render you amenable to punishment ? 
 
 Witness. I decline to answer any question as to what I did. 
 
 Mr. Serjeant PABBY. Were you not engaged in crime ? Did you not 
 commit robberies while you were in America ? 
 
 Witness. No. Neither did I pass forged cheques there nor elsewhere. 
 I did not know Saward at the time you have mentioned, nor have I ever 
 been concerned with him in the way of cheques. I have discounted bills 
 for him. He was generally called " Barrister Saward." I was never ac- 
 cused of forgery, nor did I ever commit a forgery. I am entirely innocent 
 of the charge for which I am now suffering punishment. I have received 
 the proceeds of several forgeries. The 3000 in the funds had been there 
 for some time. The 600 which I got from this robbery your client Pierce 
 had along with my other things. It was in my trunk at niy lodgings when 
 I was arrested. The charge I was convicted of was uttering a forged 
 cheque for 700. I was caught with a bag of farthings in my possession, 
 running away. I don't know that Pierce was ever a betting man ; indeed, 
 I never knew him have any money to bet with. The robbery was perpe- 
 trated while the carriages were in motion. 
 
 Cross-examined by Mr. Serjeant BALLANinnE (for Tester). It is not 
 because I am afraid of the consequences that I decline to answer Mr. Ser- 
 ieant Parry's question as to how I got my living, but simply because I do 
 not choose to be obliged to tell. I am not afraid of a prosecution. I have 
 known Tester between three and four years. I saw him at Margate about 
 this business, and I saw him also at Folkestone. The division was about 
 two months after the robbery. Tester offered to buy the Spanish bonds 
 from me. He asked me what was the best way of investing his money, and 
 I told him I had some Spanish bonds which were paying 7 per cent., which 
 I -would sell him for what I had given for them. The other bonds were in 
 my trunk when I was arrested, and Pierce got them. The only evidence 
 against mo when I was convicted was a man who called himself my accom- 
 plice, but his story was all lies. You were my counsel at the time, and you 
 told him so. Mr. Mullens also stated that he saw me outside the Bank, 
 when, in fact, I was at Shepherd's Bush at the tune. I travelled a good 
 deal up and down the line. I represented myself as a commercial traveller, 
 but Tester knew I was a thief. I was introduced to him as such. 
 
 Cross-examined by Mr. POLAND (for Burgess). I have gone by three 
 or four names in my time, but Agar is my real name. I told the story of 
 this robbery down at Portland first. It was to Mr. Eees. I never told 
 that Burgess had nothing to do with this robbery, nor have I ever said so 
 to any one. I had made false keys before. I made some for Pierce to 
 
 M 31
 
 530 TACTS, FAILURES, A.TSD F2ATJDS. 
 
 commit the robbery on the Soutli-Easlcrn station with. I did not see 
 Burgess between the robbery and the division. 
 
 Ee-examined by Mr. BODKIN. It is not because I am afraid of a pro- 
 secution that I refused to answer as to my mode of living. While I was 
 at Mr. Davis' s I saved about 50, and on this I lived and by pawning my 
 clothes till I went to the "United States. I had a cousin who was a boot- 
 closer, and I assisted him. Then I went to the United States, where I 
 made money by speculating. While I was at Kilburn I was living with a 
 woman named Emily Campbell. She had lived formerly with Humphreys, 
 and it was out of revenge that he got me arrested. I had lent him 230, 
 and was going that afternoon by appointment to receive it back. He lived 
 a door or two from the corner of Bedford Eow, and just as I got to the 
 corner, I met a man who said to me, " Bill has sent me to tell you not to 
 come in. There's a screw loose." He pulled out a bag at the same time, 
 which he said contained 200. Just then I saw somebody coming behind 
 us, and the man (who called himself Smith) said, " You'd better run," and 
 I did BO; and he immediately called, "Stop thief!" I stopped, and the 
 police-officers took me into custody. I gave up the bag, which was found 
 to be full of farthings, but Smith pretended to know nothing of it. That 
 is all I had to do with the charge on which I was convicted. 
 
 By Mr. Baron MAUTEST. It was about two or three years after I left 
 Mr. Davis, that I first began to live by crime, and I have been more or less 
 engaged in the commission of crime ever since. 
 
 To Sir. Serjeant PAEEY (through the Judge). I have never boasted 
 that I did the robbery single-handed, and then went over to Boulogne. 
 Mr. Eees was the first person to whom I ever mentioned the share I had 
 had in the robbery, and I have never told any one at Portland that I had 
 anything to do with it. I had heard that Pierce had sent back my child to 
 its mother, Fanny Kay, and that she was in a state of great destitution. 
 
 James Sellings, bullion porter at the Spread Engle, Gracechurch Street, 
 proved the delivery of the bullion boxes at the railway station on the night 
 of the robbery. 
 
 Mr. John Chaplin, the carrier, also gave evidence to the same effect. 
 In answer to Mr. Serjeant B ALLAN TIXE, this witness said that no one at the 
 railway station would know that bullion was being sent over to Boulogne 
 that night until he arrived there with it. 
 
 Edgar Cox, a clerk in the office of Mr. Wetherall, the then station- 
 master at the London Bridge station, examined by Mr. BODKIN, said I 
 received the boxes of bullion from Mr. Chaplain on the night of the rob- 
 bery, and took their weights before they were put into the train. Tester 
 was in Mr. Brown's, the superintendent's office, but I don't know that he 
 would have any means of ascertaining when bullion was going down. 
 
 Cross-examined by Mr. GIFFABD. When the bullion boxes went down,
 
 FACTS, F.ULURZS, AND FBArDS. 531 
 
 they were generally put outside the superintendent's office, with the time 
 of the train by which they were going marked in chalk. 
 
 Mr. Abell, examined by Mr. MONK. I am a bullion merchant. On 
 the 15th of May, 1855, 1 despatched a parcel of gold by the South-Eastern 
 Railwav, weighing 2125J ounces, which was part of the gold stolen. 
 
 To Mr. Serjeant PABBY. The railway company resisted my claim 
 against them until December, 1855, on the ground that the robbery had 
 been committed in France. 
 
 John Bailey, porter at the London Bridge station, examined by Mr. 
 MONK. I carried the boxes of bullion into the Tan on the night in ques- 
 tion. I put them into the iron chest, and Mr. Wetherall locked it. 
 
 John Kennedy, examined by Mr. BODKIN, said I am a guard in the 
 employ of the South-Eastern Railway. I was under guard to Burgess on 
 the night of the 15th of May by the 8'30 train. Shortly before the train 
 started, Burgess asked me to look round the train to see that all was right, 
 as he was going away for a little while. I hare seen Agar and Burgess 
 together several times ; once at a public-house near the station, and two or 
 three times on the platform, generally about 8 o'clock, just before the 
 8'30 train started. 
 
 Cross-examined by Mr. Serjeant PABBY. I went down with the 8'30 
 train that night, but never saw Burgess from the time the train started 
 till we got to Dover. 
 
 Cross-examined by Mr. GIFFABD. It was not my duty to go to Bur- 
 gess, save in the course of the journey, nor was it my practice. 
 
 Richard Hart, porter at Folkestone, examined by Mr. MONK. On the 
 night of the robbery I assisted to take the bullion chests out of the 10 - 30 
 train, and to take them down to the harbour, where I delivered them to 
 Spicer, the watchman. Burgess was present. 
 
 John Spicer, a night watchman at Folkestone, examined by Mr. BOD- 
 KIN. I received the chests at the harbour from the last witness, and kept 
 watch over them till morning. 
 
 Robert Mackay, telegraph clerk at Folkestone. I was up all night at 
 the station, and the chests I know were never moved. 
 
 James M'Enight, a police-officer in the employ of the company, said 
 I relieved Spicer in charge of the bullion chests on the morning of the 
 IGth of May, 1855, and did not lose sight of them until they were placed 
 on board of the boat. 
 
 James Golder, mate of the Lord Warden steamer. I remember tho 
 bullion chests coming on board on the 16th of May, 1S55. Thoy were 
 placed on deck, and I had my eye on them the whole time. When the 
 chests were opened at Boulogne, I noticed that one of the boxes was 
 damnged at the sides. There was a hole that I could have put my 
 finger in.
 
 FACTS, FAILUEES, AND FEAUDS. 
 
 Jacques Feron, examined by Mr. BODKIN (through an interpreter). I 
 am a porter in the employ of the Customs at Boulogne. On the arrival of 
 the Folkestone boat on the morning of the 16th of May, 1855, I assisted 
 to land the bullion boxes. I took one of the boxes out of the iron chest 
 myself, and I noticed that it was open at the sides, so that I could hare 
 put in my finger. I noticed through the opening that there was a little 
 bag moving about inside. The boxes \vere placed on the quay, and they 
 were never out of my sight till they were taken to the railway. 
 
 James Major, examined by Mr. Serjeant SHEE. I am agent of the 
 Messageries Imperiales at Boulogne. I took charge of the bullion boxes 
 on their arrival. I saw them weighed at the Custom House, and then I 
 had them taken to my office, where they remained until they were taken 
 to the railway. I weighed them myself before they went from my office. 
 I was in Paris when one of the boxes was opened. It was full of lead and 
 shot. I had it weighed first, and it corresponded almost exactly with the 
 weight which I had taken at Boulogne. 
 
 Mrs. Hooker, examined by Mr. Serjeant SHEE. I live at Folkestone, 
 between the upper and lower stations. In the month of May, a man who 
 called himself Adams took lodgings at my house for himself and another 
 man. Agar is the man who went by the name of Adams. I saw him at 
 the Mansion House, and recognized him. The man who was with him at 
 my house is Pierce, whom I see now, and recognize in the dock. 
 
 Mr. Ledger, Custom House agent at Folkestone, examined by Mr. 
 BODKIN. I remember seeing Agar at Folkestone several tunes during the 
 year 1854. I have seen him at the Eose Inn, kept by Mr. Meadows, and 
 on one occasion he supped with myself and another person there. I saw 
 Mm at Folkestone in the spring and in the autumn. I had a key of the 
 bullion chest, which I sometimes kept in my desk or in a cupboard which 
 was behind me as I sat at my desk, but generally in my pocket. I gene- 
 rally used to go down to meet the boats when they came in, but I left 
 other persons in the office. Sometimes, however, I have known the office 
 to be left empty perhaps a dozen times. 
 
 Mr. Chapman, examined by Mr. Serjeant SHEE. I was in the employ 
 of the South-Eastern Railway Company at Folkestone in the years 1854 
 and 1855. In the spring of 1854 I remember seeing Agar at Folkestone, 
 and again in the autumn. He came to me and inquired whether a parcel 
 had arrived for him. Shortly afterwards a parcel did, directed to him, and 
 I gave it to him out of the iron safe when he came for it. He signed a 
 receipt for it in the way-bill, for he said he could not write a receipt in 
 full, as his finger was wounded. He had it bound up in a black silk 
 stall. If he had chosen he could see where I took the key of the safe 
 from. 
 
 After the examination of this witness the Court adjourned, the jury
 
 FACTS, FAILURES, AND PBAUDS. 033 
 
 being conducted to the London Coffee House, under the charge of tho 
 proper officers of the Court. 
 
 CEJTTBAI CEIMII. AL COUBT, January 14. 
 
 The trial of the prisoners Pierce, Burgess, and Tester, charged with 
 committing the extensive bullion robbery upon the South-Eastern Railway 
 in May, 1855, was resumed before Mr. Baron Martin and Mr. Justice 
 Willes, at ten o'clock. Tho demeanour of the prisoners was the same as 
 on the previous day, Tester, the youngest of the three, seeming to be more 
 concerned about his fate than his older accomplices. The communication 
 between the accused and their legal advisers was also kept up during the 
 day, the prisoner Burgess, however, taking by far the greatest number 
 of notes, and handing them to his counsel. 
 
 The first witness called was M. Everard, who, in answer to questions 
 from Mr. MOKE, stated I am a member of the firm of Everard and Co., 
 of Paris. I received a bullion box from Messrs. Abell and Co., on the 
 17th of May last. I saw the box opened. It contained nothing but a 
 quantity of shot and some shavings. 
 
 Thomas Sharman, examined. I keep the Torrington Arms, at Merc- 
 worth, Kent. I was booking-clerk at Folkestone in May, 1855. I saw 
 Agar at Folkestone in October, 1854. I know Ledger, and recollect when 
 he was married. His marriage took place about the period when I saw 
 Agar. I saw Tester a clerk on the line with Agar. They were walking 
 about the pier. I was on speaking terms with them. I went in their 
 company to the Pavilion Hotel, and had some refreshment. A friend of 
 mine, named Grimstead, was also there with us. 
 
 Cross-examined by Mr. Serjeant BALLANTINE. I don't know when 
 Tester was married. Don't recollect whether Tester introduced Agar to 
 me. Hazel had told me that Agar was a suspicious person before I went 
 to the Pavilion with them. I wont with Tester, whom believed to be 
 respectable, and I afterwards remarked to Hazel that I thought he had 
 been misinformed regarding Agar. 
 
 Mr. G-. D. Hazel, examined. I am inspector of police to the South- 
 Eastern Railway at Redhill. In October, 1854, I held the corresponding 
 situation at Folkestone. I saw Pierce and Agar at Folkestone harbour in 
 May, 1854. They were looking at the boat which ran in connection with 
 the tidal train. They remained at the pier about a quarter of an hour, 
 and then went away towards the town. I had a reason for watching 
 Pierce at that time. Saw them both about ten or twelve times after this 
 at the arrival and departure of the boats. I made a communication to 
 Mr. Steer, superintendent of the town police of Folkestone. In October, 
 Ibdl, I saw Agar loitering about the booking-office for about ten minutes.
 
 521 TACTS, rAILTJEZS, AST) FEA'JDS. 
 
 Ee WP.S watching the proceedings of the clerk, Sharman, who was making 
 up his money. I saw Agar talking to Tester by the pier on the following 
 day. The boat was then getting ready. They afterwards walked towards 
 the Pavilion Hotel. Tester went up to London the same night. 
 
 Cross-examined by Mr. Serjeant BALLASTINE. Cannot tell whether 
 Tester was married before or after the robbery. He held his situation in 
 the employment of the company some time after the robbery. He left it 
 for better employment, and subsequently he surrendered to take his trial. 
 I cautioned Sharman against Agar, whose appearance I did not like. I 
 did not say anything about him to Tester, who seemed to know him well. 
 
 James Steer, superintendent of police at Folkestone, deposed I was 
 at Folkestone in May, 1854. I saw Pierce half-way between that town and 
 Hythe, in company with a man named Adams. In consequence of some- 
 thing that had been said to me I noticed them. They were at Folkestone 
 in the spring for about a fortnight, and walked a good deal on the pier. 
 When they saw that I observed them, they separated and walked away. 
 In October, I again saw Agar, near the Pavilion Hotel. On one occasion 
 I saw Burgess with Agar near Folkestone harbour. 
 
 Henry Williams, booking-clerk to the South-Eastern Eailway Company, 
 examined. I was formerly a night porter and watchman at Dover. I was 
 on duty when the 8 o'clock mail arrived at Dover on the 15th of May, 1855. 
 Burgess and Kennedy were the guards of that train. I did not notice the 
 passengers who came down with it. I attended the departure of the 2A.M. 
 up train the next morning. Saw two passengers who travelled first-class 
 by it, They carried bags with them. I noticed them pass through the 
 office while Burgess, Kennedy, and I were standing there together. A 
 porter asked to carry their bags for them. One of the two men was taller 
 than the other ; the one was of light complexion and the other dark. I 
 issued two tickets only for that train, but not to the two passengers I have 
 described, who did not apply for any tickets. 
 
 Joseph Witherden. I am a porter in the employ of the South-Eastern 
 Eailway Company, at Dover. "\Vas on duty on the night of the 15th 
 of May. Before the 2 A.3I. train went up, two men, carrying carpet- 
 bags, and wearing short cloaks, came on to the platform without taking 
 tickets. The bags they had appeared to be heavy, from the way in which 
 they earned them. Spoke to them about their tickets. They produced 
 two Ostend return tickets. I asked whether their luggage had passed the 
 Custom House. They replied, "No; it came over the previous night." 
 One of them gave rae some money ; I don't know whiuh of the two it was 
 who did so. 
 
 Mr. Werter Clark, examined. I keep an inn called the Eose, near St. 
 Mary's Church, at Dover. Two men, one of whom was tall and dark, and 
 the other short and fair, came to my house one evening in the early part of
 
 FACTS, FAILURES, AND FBATTDS. 535 
 
 1S55, and had some refreshment. They stayed at my house all night, and 
 went away next morning. They asked the way to Folkestone, and I 
 directed them to the road thither by the cliffs. 
 
 Eobert Clark. I am a waiter at the Dover Castle Hotel, Dover. Two 
 men came to that house ono night shortly after the date of the arrival of 
 the French Emperor. Ono of them was considerably shorter than the 
 other. The complexion of the short man was fair ; the tall one was dark. 
 They asked for some brandy-and-water, which they wished to be put into 
 a soda-water bottle. I got it for them. They left the hotel 'ite the same 
 night, carrying their own luggage. They said they were going by the 2 A.SI. 
 train. 
 
 W. Dickinson, policeman at the company's termini? , London Bridge, 
 deposed I recollect the 2 A.M. train arriving from Drv C r on the morning 
 of the 16th of May, 1855, about 4 o'clock ; only about four passengers 
 came by it. Two men came out of a carriage that T opened. One of them 
 was taller and of darker complexion than the other. The man who first 
 left the carriage had a bag with him, and wore a loose cape. I did not 
 notice the dress of the other man. I offered to get a cab for thera. They 
 declined my offer. An officer is always stationed at the door of the 
 station to take down the numbers of tho cabs as they go out, and their 
 destinations. 
 
 "William Woodhouse, another railway porter at the time of the robbery, 
 deposed that there was no luggage in the van of the up early train on tho 
 morning of the 16th of May. 
 
 Stephen Jones stated I am a guard in the service of the South- Eastern 
 .Railway Company. In May, 1855, 1 was guard of the 7'30 P.M. train 
 from Dover. We wero due at Redlu'll at 9-25. The S P.M. train from 
 London was duo there also at 9 P 4. Tester came up by my train. Saw him 
 come out of the refreshment-room at Kedhill before he got into' the train. 
 He had with him a black leather bag, of from 12 to 15 inches in length. 
 He entered a first-class carriage. The train did not stop till it reached 
 London. Did not see Tester again that night. I saw Pierce and another 
 man on tho pier at Folkestone antecedent to the robbery. I had also seen 
 Burgess, Pierce, and other persons at a public-house in Toolcy Street. I 
 was guard of the 7 '30 P.M. up train in April, as well us in May. 
 
 Cross-examined by Mr. Serjeant BALLANTIXE. The guards don't often 
 have charge of the same trains for more than ono month ; but there are 
 some exceptions to this rule, such as when tho service is special, 
 swear whether or not I mentioned anything about Tester having a black 
 bag before I heard that Agar charged Tester with being an accomplice in 
 the robbery, Swear that I saw Tester with the black bag at Redhill in 
 May. In the June following the robbery I was examined by the co: 
 on the subject, but I did not then mention anything about this black bag.
 
 536 FACTS, PAILUBES, AND 3TEATJDS. 
 
 I was not questioned on that point. I see nothing unusual in Tester's 
 having the black bag with him. 
 
 Cross-examined by Mr. RIBTON. Never saw Pierce while he (Pierce) 
 was in the service of the company. Pierce left the company's employ before 
 I was engaged on the line. 
 
 Frederick Russell, examined. I am booking-clerk at the London sta- 
 tion of the Greenwich Railway. I know Tester, and recollect his coming 
 to the office, about lO'lO, one evening in May, 1855. He told me he had 
 come up from Reigate by the Dover line, and had been there and back since 
 office hours. Tester then lived at Lewisham, and so did I. The last 
 Greenwich down train left at half-past 10 o'clock. Tester asked me if I 
 was going down to Greenwich. He had a black leather bag with him, 
 which he set down in the booking-office, and then went out for a little 
 time. The bag looked new, and about 15 inches long. While Tester 
 was out, Perry, the night-porter, came in and looked at the bag, remarking 
 that it was heavy. Tester returned, took up his bag, and went into a 
 carriage. I travelled in the same carriage with Tester that night. He 
 was not in the habit of going down by the half-past 10 P.II. Greenwich 
 train. 
 
 Cross-examined by Mr. Serjeant BALLANTINE. The bag was a shiny 
 black leather one. Tester was away for about seven or eight minutes, 
 during which time the bag was left in a corner by the fire-place of my office. 
 Tester was married about two months before the robbery. 
 
 John Perry, night-watchman at the London and Greenwich terminus, 
 deposed I know Tester. Remember seeing him in May, 1855. He was 
 then entering the Greenwich booking-office. This was shortly after 10 
 o'clock P. M., and the last train was to leave London at 10'20. In shifting 
 the position of some luggage in the office, I took up a black bag, and 
 observed to llilr. Russell that it felt heavy and "lumpy," just as though a 
 stone was in it. Mr. Russell said that it was Tester's bag. 
 
 Cross-examined by Mr. Serjeant BAILAHTINE. The bag produced is 
 like the one in question. It might have been a little larger. When we 
 read Agar's evidence the circumstances connected with the bag recurred to 
 our memory. 
 
 Mr. Chubb, the eminent locksmith, was next examined. He stated 
 I belong to the firm of Chubb and Son. We made four bullion chests for 
 the South-Eastern Railway Company several years ago. There were two 
 locks to each safe. The superintendent of the company applied to us to 
 make several alterations in the locks of the chests between tha months of 
 June or July and September or October, 1854. The orders for these 
 alterations were given by letters written in the handwriting of Tester, and 
 signed by Mr. Brown. The correspondence now produced is that which 
 our firm received from the company on the subject. The No. 1 locks of
 
 TACTS, FAJLUBES, AKD FRAUD3. 537 
 
 two chests were altered, and the keys from time to time returned to the 
 uperintendent's office. When I first heard of the committal of the rob- 
 bery I communicated with the railway company on the .subject. I subse- 
 quently inspected the chests. The whole of the Xo. 2 locks were so corroded 
 that the keys would not open them. They appeared to have been in that 
 state for some time, and to have become so for want of use. 
 
 Mr. J. P. Knight, examined. I succeeded Mr. Brown as out-door 
 superintendent of the South-Eastern Railway. In 1855 I was Mr. Brown's 
 deputy. Tester was a clerk in the superintendent's office. He left that 
 situation in September, 1855. In April and May, 1855, Tester had to 
 regulate the rota of the guards' duty. The paper produced gives the 
 names of Burgess and Kennedy as the April guards. The words "and 
 May" are added after the names in Tester's handwriting. Tester gave as 
 a reason for making this alteration, that it was not an unusual thing ; and 
 I did not think it necessary to interfere further. I recollect no occasion 
 on which Tester's presence was required at Folkestone on tho company's 
 service, except in September, 1854. 
 
 Cross-examined by Mr. Serjeant BALIANTISE. In one or two instances 
 during the year the guards were continued on the same train beyond their 
 prescribed month. I was present when Tester altered the list. 
 
 Cross-examined by Mr. GIFFARD. Kennedy's name appears in the list 
 of guards of the mail for March, so that Kennedy acted for the same train 
 for the three consecutive months of March, April, and May. 
 
 John Matthews deposed I assist in the business of Mr. Massey, gold- 
 smith, St. Mary Axe, Leadenhall Street. On tho 16th of May, 1856, I 
 bought 210 American gold coins. I gave the sum of 213 10s. in gold for 
 them. The man who brought them asked to be paid in gold. Did not 
 know the man, and could not now identify him. I had not sufficient money 
 in the shop to pay him with, and I therefore went out and sold tho gold in 
 the trade. I got bank-notes for it, which I went and cashed. The mau 
 stayed in the shop until I returned. I was absent about half-au-hour. 
 
 Rudolf Prommel examined. I am a money-changer in the Haymarket. 
 On the 16th of May I bought 200 American eagles, for which I gave 
 203 6*. Sd. in a cheque on the Union Bank, payable at 4, Pall Mall 
 East. Thia is the entry of the transaction which appears in my book. I 
 recollect nothing more about it beyond the particulars I have stated. I 
 cannot recall the personal appearance of the man who brought the coins 
 to me. 
 
 The cashing of the cheque at the Union Bank was proved by Mr. Alex- 
 ander White, a clerk in that establishment, who deposed that he gave 
 English sovereigns in exchange for it. 
 
 Mary Ann Porter, of Harleyford Road, Vauxhall, examined by Mr. 
 JUX, proved that she had seen Agar at tho Mansion Ilouse, and that
 
 538 PACTS, PAILTEES, A"N'D FEATJDS. 
 
 she recognized him as Adams, he having taken apartments from her in that 
 name in October, 1854. He had a woman with him at that time (Fanny 
 Kay), who passed as Mrs. Adams. She also knew the prisoner Pierce 
 under the name of Peckham. He frequently visited Agar at her house, 
 and remained often for half-a-day at a time, or longer. Agar and the 
 woman lodged with witness about seven weeks, and removed a week before 
 Christmas. Pierce assisted them to remove. 
 
 John Honner, hairdresser, of Lambeth Walk, deposed, in answer to 
 Mr. MOINTE:, that he knew the prisoner Pierce, and had known him for four 
 fa five years. Witness dressed a wig for him when he lived in Walnut-tree 
 Walk, about a month or five weeks before Pierce left that place. 
 
 In cross-examination by Mr. PABKY the witness stated that he dressed 
 the wig in question about the end of 1854. He had not dressed many wigs 
 since. 
 
 Fanny Poland Kay was then called and examined by Mr. Serjeant SnzE. 
 She deposed as follows : Before I became acquainted with Agar, and 
 some years ago, I was an attendant at the Tunbridge Station on the South- 
 Eastern Eailway. I was first introduced to Agar in 1853 by the prisoner 
 Burgess. Some time after that introduction I became intimately acquainted 
 with Agar, and had a child by him. In December, 1854, 1 went to live 
 with him at Cambridge Villas, Shepherd's Bush. Before that time I had 
 seen Pierce in company with Agar at Harleyford Road, where we lived 
 under the name of Adams, and at the Green Man, in Tooley Street. I have 
 seen them very often together, and I should say that they were well ac- 
 quainted with each other. I had not seen Burgess in company with Agar 
 between the time that he introduced me to him and our going to live at 
 Shepherd's Bush. Pierce I knew by the name of Peckham. I remember 
 my child going to be weaned. He left me for that purpose on the 7th of 
 May, 1855. Charlotte Painter was at that time in our service. A fort- 
 night after the child had been taken to be weaned I went on a Sunday to 
 see it. I remember the death of Mrs. Bessell, our next door neighbour, on 
 the 18th of May, 1855, and I went to see my child after that occurrence. 
 For a few days both after and before that event Agar was absent from 
 home all night. He was so on the Tuesday or Wednesday night before 
 Mrs. BesselTs death. When next I saw him he came in the afternoon in 
 a cart with Pierce, and they then had two bags with them, which they 
 carried into the washhouse. After that Pierce came regularly almost every 
 day, and they usually went then up to the first floor back room. I looked 
 into that room upon one occasion when they were there together, and I 
 saw that they had got the stove out, and that there was a very bright fire. 
 I opened the door, but was not allowed to go in. They both rau to the 
 door as soon as I opened it, and closed it so as to prevent my entrance. 
 Previous to that they had been a good deal in the washhouse together,
 
 FACTS, FAILTTUES, AXD FHAUDS. 539 
 
 sometimes spending the whole of tlio morning there. I do not know whet 
 thi-y were doing there, but I often heard them hammering. They had 
 shooting-bags with them made of drab leather, and one black bag. When 
 they were up -stairs in the back room, although 1 saw nothing, I constantly 
 heard a noise, such as proceeds from a furnace ; it was like the roaring of 
 a large fire. It continued for several days. After that I saw what appeared 
 to me to be square pieces of stone brought down stairs by Pierce and taken 
 away. When they were working in this way they came down regularly to 
 their meals, and appeared always very hot and dirty. I asked them what 
 they were doing, and they said, " Leather-apron weaving." They never 
 gave me any other answer. I went into the room after their operations 
 had ceased, and I saw that the stove had been replaced and blaekleaded. I 
 also noticed that the floor was burnt in two places. About the time that 
 the child was weaned I never saw Agar or Pierce in any peculiar dress. 
 They wore shortish cloaks, or capes of a rather fashionable cut, which they 
 had made for them about two months before the child was weaned. I 
 never saw Pierce disguised, or wearing any other hair than his own to my 
 knowledge, although I have known him to have more hair about his face 
 than he has at present. Soon after we removed to Cambridge Villas Pierce 
 left me and went to Kilburn, but I did not know where he had gone. He 
 came to see me, however, before he was arrested, and at that time the child 
 was at Eotherhithe with a cousin of Agar's. From that time until his 
 arrest I did not see him for a considerable period. I went, after his arrest, 
 to live in lodgings in St. George's Eoad, and Pierce provided for me up to 
 January. He was to have allowed me 1 a-week, but he did not. He 
 gave me something, but I cannot say how much. I went to live in his 
 house in January, and remained there till April, 1856, when I left in con- 
 sequence of words with him. At that time there were two trunks of Agar's 
 at Picrce's house. They contained Agar's clothes and tools. I do not 
 know that they contained anything else except his watch, a ring, and some 
 shirt studs. I did not know of any notes or money being there. The first 
 time that I ever saw any considerable amount of money in Picrce's posses- 
 sion was before I wont to live at his house. I then saw him with a large 
 bag of sovereigns. Some time previously to that Pierce told me that he 
 had asked Agar to lend him a sovereign, and that ho would not, and ho 
 added that sometimes he could get money out of Agar, and sometimes he 
 could not. Once in 1851- Pierce asked me to lend him a shilling. Previous 
 to the committal of this robbery Agar used to sell his old clothes to Pierce. 
 At ler.st I suppose ho sold them, for I have heard them bargaining about 
 them, and Pierce used to take them away. After I left Pierce's house in 
 April I fell into distress, and had DO means of support. 
 
 Mr. Serjeant PABET objected that this was not evidence. 
 
 Mr. Serjeant SIIEE said that his next question would be whether
 
 540 PACTS, FAILTJBES, AND PEAUDS 
 
 in consequence of that she made a statement to the Governor of New- 
 gate. 
 
 Mr. Baron MAETIN. I don't think that is evidence. 
 
 Examination continued. I asked Pierce for money frequently after- 
 wards, but he refused to give it me. After that I saw Mr. Weatherhead, 
 the Governor of Newgate, and I made a communication to him. 1 like- 
 wise saw Mr. Kees, the solicitor to the railway company, and I made a 
 communication to him also. 
 
 Cross-examined by Mr. Serjeant PAEEY, on behalf of Pierce. I am 
 twenty-five years of age. I left the Tunbridge station in 1852. I was dis- 
 missed from that situation. It was not for anything at all dishonest. Yes, 
 I am quite sure of that. I then went to my own home, at least to my 
 mother's, in London. I have not lived with other men besides Agar. I 
 will swear that. I know a person named Tress. I don't consider that my 
 conduct has been improper with him. I knew a person named Hart, for 
 six months probably. I did not live with him, nor was I constantly in his 
 company. He used to come up to town occasionally, but did not stay with 
 me. He has given me money sometimes a sovereign, sometimes two 
 sovereigns at a time. No, never 10*. or 5*., and not for any improper 
 purpose. He is about thirty years of age, perhaps. Mr. Tress lias also 
 given me money. He gave me 5 once. Neither he nor Mr, Hart is in 
 any degree related to me. I had a very comfortable situation at Tun- 
 bridge, and my remuneration was 12 a-year, and board and lodging. I 
 was not dismissed in consequence of any improprieties with men. I did 
 not speak to Hart till after I left Tunbridge. Yes, I knew Bill Barber, 
 too. He was an under-guard on the line. He never gave me any money. 
 I will swear that. I stayed at my mother's till the month of November, I 
 think, having gone there in April. I then went to Johnson Street, 
 Somer's Town, and I then worked for Messrs. Crosse and Blackwell, of 
 Soho Square. Hart came to see me at my mother's, but I do not mean to 
 say that he ever gave me a sovereign, or a couple of sovereigns, in my 
 mother's presence. Certainly not ; he never saw my mother at all. I was 
 acquainted with Agar at the time that I was living at Johnson Street. I 
 knew him by the name of Adams, and not by any other name. Agar left 
 me twice. He did not say that he left me in consequence of my drunken 
 habits. I was not " in the habit" of getting intoxicated. I will swear I 
 was not. I knew Agar's real name at the time of the christening of my 
 child, which is rather more than two years ago ; but I did not know it 
 when I was in Johnson Street. I know a person named Hodges. He 
 used to give me money too a sovereign at a time never less ; never half- 
 a-sovereign. When I was at Pierce's I was out all night upon two 
 occasions. I never was taken home drunk to Pierce's, and did not quarrel 
 with him on account of my drunken habits. No j I quarrelled with him in
 
 FACTS, FAILUBES, AND FBAUDS. 541 
 
 consequence of a letter which I received from Agar, and I then left his 
 house. 
 
 Will you swear that you were never taken home drunk to Pierce's ? 
 No, I will not swear it, but I don't remember it. 
 
 When you were living at Shepherd's Bush, were you ever taken home 
 drunk in a wheelbarrow ? 
 
 Witness (smiling). If I was, I don't recollect it. 
 
 Might it have happened ? Yes once. 
 
 More than once ? No, I will swear that it might not have happened 
 more than once. 
 
 Examination continued. I have not been down to Portland Island, 
 where Agar was confined. I have been supported by the railway company 
 since the first disclosures which I made relative to the robbery. They 
 don't allow me anything. I get my food and lodging, but not my clothes, 
 I have been supported in this way by the company since last October, 
 probably, but I don't know exactly how long. I know that Pierce was 
 what is called a betting and sporting man, but I have not seen money in his 
 possession which he has stated had been won at races. I never saw him 
 with a betting-book, or making-up books of any kind. I will not under- 
 take to swear that I did not receive, in all, from Pierce as much as 80, 
 but I don't think it was so much. I will swear that it did not amount to 
 100. Mrs. Pierce has not complained of my drunken habits. She has 
 told me that it was " a pity that I should do so," but she said it merely in 
 a friendly way. She never had occasion to complain of me while I was in 
 her house. 
 
 Cross-examined by Mr. GIFFABD (for Burgess). From the time that I 
 was introduced to Agar by Burgess I never but once, I think, saw Burgess 
 in his company, although I lived with Agar for two years. I did not know 
 Emily Campbell, and did not know that Agar was living with her until 
 after he was arrested. 
 
 Be-examincd by Mr. Serjeant SHBE. You have been asked a good deal 
 about money given you by different gentlemen, have you any objection to 
 say why it was given you? (No answer.) Was it for any improper 
 purpose ? No, it was not. 
 
 He-examination continued. Mr. Hart made honourable proposals to 
 me after I left Tunbridge, and he gave me money at that time, and also 
 after my mother's death. I quarrelled with Pierce in consequence of a 
 letter which I received from Agar, and he said that Agar never had any 
 money. I never heard of a sum of 3000 Consols given by Agar to Pierce 
 to be settled on me. Pierce always said that Agar never had any money. 
 The letter which caused us to quarrel was written from Pentonville by Agar 
 on the 2nd of April, and in it he asked me to purchase a silver cup for my 
 child and one for Pierce's child, and told me to do several other things,
 
 542 FACTS, FAILURES, AKD FEAFDS. 
 
 which I could not do because I had no money. Among other things he 
 wanted a " Geography" sent him. Agar said in the letter that " "William," 
 meaning Pierce, was to give me the money, and I told Pierce so and his 
 wife too. They refused to let me have it, and I left them. Since this 
 case has been under investigation I have been living in the house of Mr. 
 Thornton, the inspector of police. 
 
 Mr. Baron MARTIN. What has become of that 3000 Consols ? I 
 should like to hear something about that. 
 
 Mr. Serjeant PABBY. It is in the hands of the railway company. They 
 have got it. 
 
 Mr. BODKIN. No such thing. My friend is entirely misinformed. 
 
 Mr. Baron MARTIN. If these Consols were Agar's own, and were made 
 over to Kay before his conviction, the railway company can have no 
 earthly claim to them, any more than I have. 
 
 Mi*. Serjeant PABBY. A complete explanation of the whole affair can 
 be given by Mr. Wontner, the solicitor, and he is ready at this moment to 
 give it. I hope, however, that my friends will regard him as a witness 
 called for the prosecution. 
 
 Mr. Serjeant SHEE, however, declined to do so. 
 
 Mr. Serjeant PABBT.. Then I shall not call a witness to prove tliat 
 which I think is perfectly irrelevant to this trial. 
 
 Mr. Baron MAETIN. Jfo doubt it is not relevant to this inquiry, but 
 what occurs to my mind is that Consols to the amount of 3000 were 
 transferred by Agar to some one for the use of this woman, and that she 
 has never seen the money. I should like to hear something about it. 
 
 Mr. Serjeant SHEE said that, under those circumstances, he would not 
 reply upon Mr. Wontner's evidence if he were called. 
 
 Mr. Wontner, however, without being called by either side, said that 
 he wished to explain the matter. 
 
 Mr. Baron MABTIN. I think it quite right that you should do so. 
 
 Mr. Wontner offered to be sworn, but 
 
 The learned JUDGE said that that was quite unnecessary. Mr. Wont- 
 ner's word was amply sufficient. 
 
 Mr. Wontner then said Previous to Agar's conviction he had 3000 
 Consols, which had been standing in his name for a long time, and he 
 authorized a stockbroker to sell it out. That was done accordingly, and 
 the amount realized was about 2700. A number of payments were made 
 out of that sum by Agar's authority, and he directed me to hand over the 
 balance 2500 to Pierce to invest for Kay and her child (as was under- 
 stood). He gave me a written order to that effect, and that order I 
 executed. I subsequently asked Pierce if he had invested the money, and 
 he told me that he had invested it in Turkish bonds. I have since taken 
 the trouble to trace out the notes which were handed over to Pierce, and
 
 TACTS, FAILUBES, A>'D FRAUDS. 543 
 
 I find that they correspond with the notes paid in the transaction of the 
 Turkish bonds. 
 
 Mr. Baron MAETIN said that the explanation was perfectly satisfactory, 
 so far as Mr. Wontner was concerned. 
 
 At the request of Mr. Serjeant BAIXANTINE (for Tester) Agar was 
 recalled, and he stated, in answer to questions, that Pierce told him 
 that he had heard from Tester that the key of the safe had been lost on 
 board the Folkestone packet. To the best of his belief witness was not on 
 board the packet the night the key was lost. 
 
 Charlotte Painter was next called and examined. She deposed that she 
 was in the service of Agar and Kay for about a month in the Harleyford 
 Boad, and that she went with them when they went to Cambridge Villas. 
 She confirmed the evidence as to the intimacy between Pierce and Agar, 
 and as to their proceedings in the washhouse, and in the first-floor back 
 room in the house at Cambridge Villas. On one occasion, when Agar 
 and Pierce were in the washhouse together, she knocked at the door and 
 tried to get admission, but they kept the door fastened and said that she could 
 not go in. She had, however, when she had gone into the washhouse at 
 other times, and when they were not present, seen a vice fixed there, and 
 she had seen a drab-coloured leather bag there, like the one produced. It 
 had a long strap to it. In the room up- stairs there was a common stove in 
 the grate, which was there as long as she remained. She had also seen 
 white boxes in the washhouse, which she had pushed along in order to 
 sweep under them, and they appeared to be heavy. 
 
 Cross-examined by Mr. Serjeant PABEY. I never saw Pierce doing car- 
 pentering work or anything of that sort. He helped to remove the furniture 
 from Harleyford Boad to Cambridge Villas. 
 
 Mary Ann Wild, servant to Mr. Bessell at the time of Mrs. Bessell's 
 death, deposed that she slept in the back room up-stairs, and that from the 
 window of her room she could see the window of the washhouse next door, 
 where Mr. and Mrs. Adams (Agar and Fanny Kay) lived. She often heard 
 hammering noises there ; and upon one occasion she saw another man go 
 into the washhouse with Mr. Adams. 
 
 Zaccheus Long, of No. 5, Crown Terrace, Hampstead Boad, deposed 
 that in December, 1854, Pierce rented the house No. 4, Crown Terrace, 
 from him, and remained there six months, when he went to live at No. 3. 
 
 John Carter, beer retailer, of Camden Town, proved that Pierce rented 
 No. 3, Crown Terrace, from him in June, 1855, and that he remained there 
 a month. 
 
 John Wood, cab proprietor and driver, badge No. 3010, remembered 
 in the spring of 1855, being hired about seven in the evening, and told to pull 
 up near the corner of Crown Terrace. The man who had called him then 
 left him, and shortly afterwards returned in company with another man.
 
 544 TACTS, FAILURES, AND FRAUDS. 
 
 They had, he believed, one leather and two carpet-bags with them. They 
 told him to drive to the London Bridge station. One of the men was, 
 he should say, four or five inches taller than the other. When he got to 
 the London Bridge Hotel, the shorter man got out, and the other ordered 
 him to go to St. Thomas Street, and to stop near Guy's Hospital. The 
 two men wore mantles. Did not observe anything going on while he was 
 driving the men, but he observed that the " action of the cab" was very 
 different from what it ought to be. The " action" appeared to him as if 
 people were standing up and moving about. The man who left the cab 
 returned in about a quarter or half an hour he could not say which and 
 they then ordered him back to where they had started from. When he 
 got near the spot, however, they told him to go to the Mother Shipton, 
 which was about 200 or 300 yards from Crown Terrace. About a week 
 afterwards the same man fetched him off the rank near Chalk Farm it 
 was the shorter man of the two who called him. Could swear that the 
 shorter man was the same man who had called him before, but could not 
 swear that the taller man was the same on both occasions. He drove them 
 the same round as before, and precisely the same events occurred. Similar 
 transactions occurred upon the third occasion, the men bringing their lug- 
 gage and cloaks with them as before. Once only witness lifted one of their 
 carpet-bags, and he found that it was heavy weighing, he should think a 
 quarter of a cwt., or more. He should say that all this took place during the 
 latter end of April, or the beginning of May. The two men did not appear 
 to witness to be equals. The short man, he thought, was valet to the other, 
 and it was the short man who always directed him where to go. 
 
 Joseph Carter, cab-driver, residing at Brook Street, Camden Town, 
 proved that he also was hired in the same manner about eighteen months 
 ago by two men. It was some time in the evening. Agar was one of 
 those persons, " and the further gentleman there' ' (pointing to Pierce) was 
 the other. They had bags with them, and they appeared to him to be 
 heavy. He drove them to St. Thomas Street, where Agar got out and 
 the other man remained. Agar went to the left, towards the railway arch. 
 He was gone about half an hour, and when he returned he said to Pierce, 
 " It's not going down to-night." He then got into the cab, and witness 
 drove them to the Mother Shipton, where they both got out, and went in 
 the direction of Crown Tei-race, carrying their bags with them. Witness 
 had frequently seen Agar and Pierce together walking past the rank in 
 Bing Street, Camden Town. That was witness's usual place of standing, 
 and had been for the last twenty years. 
 
 Cross-examined by Mr. PAKBY. Never heard any thing about this gold 
 robbery until the Friday before he gave information of what he knew at 
 Scotland Yard. He went once to the Mansion House before he was ex- 
 amined, and the first time that he saw the prisoner Pierce since he drove
 
 TACTS, PAILTJEES, AND FRAUDS. 51-3 
 
 him to St. Thomas Street, was in the dock at tho Mansion House. He bad 
 not read Agar's evidence ; neither had ho talked about it to any one*. 
 
 Fanny Kay was recalled, and in answer to Mr. BODKIN, she stated that 
 she remembered Pierce having the lumbago, and being lame during the 
 time that she lived at Cambridge Terrace. 
 
 By Mr. Serjeant PABBY. I have never stated that before, that I 
 know of. 
 
 James Clements deposed that in May, June, and July, 1855, he kept a 
 coffee-shop in High Street, Camdeii Town, and that he remembered two 
 persons going there with a carpet-bag about the middle of May. One man 
 was taller than the other. One went away and remained away some time. 
 He then returned, and the two went away together. 
 
 John Allday, a boy, living at Haverstock Hill, proved that he found 
 some shot in Prince's Terrace, which was about a stone's throw from 
 Crown Terrace. The shot was strewed alongside the kerb,and witness picked 
 up about a double handful, and several other boys also picked up some. 
 Did not remember when this was, but it was a good while ago. The shot 
 was of two or three different sizes, and corresponded with that now pro- 
 duced. 
 
 Emma May, formerly servant at the Marquis of Granby, at New Cross, 
 deposed that she knew the prisoners Burgess and Pierce, both of whom 
 frequented the house while she lived there. They used to go usually 
 between 11 and 12 o'clock in the morning, and in the evening between 
 7 and 8. She also knew Agar by sight, and he used often to go there ; but 
 witness did not know his name at that time. 
 
 Walter Steam, examined by Mr. Serjeant SHEE. I keep the White Hart, 
 in St. Thomas Street. Pierce and Burgess were in tho habit of frequenting 
 my house for three or four years. I have seen Agar at my house with 
 Pierce and Burgess two or three times. In February last a parcel was 
 given me by my servant, which she said belonged to Burgess ; it contained 
 money. He afterwards spoke to me about investing this money, and he 
 gave mo 500, in addition to the parcel, which, with his consent, I 
 deposited with Messrs. Reid, tho brewers. I received interest from them 
 for if, which I handed over to Burgess. 
 
 Sarah Thompson, barmaid to tho previous witness, examined by Mr. 
 BODKIN. In February last I received a parcel containing bank-notes from 
 a man named Lee, which he said belonged to Burgess. I gave it to my 
 master. I afterwards paid Burgess 8 1*. Icf., which my master gave me 
 for him, as interest on tho money which Mr. Lee had given to me. 
 
 Mr. Lee, a stockjobber, examined by Mr. BODKIN. I know all tho 
 prisoners. Pierce and Burgess I have known for eight or nine years, and 
 Tester for about four years. I have seen them together at Steam's. I 
 purchased 500 Turkish bonds for Burgess at tho beginning of last year. 
 
 S N
 
 FACTS, FAILURES, AND 
 
 I paid 407 10s. for them. I went to his house at Kcw Cross by his 
 directions for the money, and Mrs. Burgess gave it me ; 105 was in notes. 
 I paid those notes into Messrs. Hutchinson's. I wrote my name on the 
 back of them. The notes produced are the same notes. 
 
 Cross-examined by Mr. Serjeant BALLANTIXE. I never saw Tester at 
 Steam's. 
 
 Cross-examined by Mr. G-ITFABD. I was once in the railway company's 
 employ, and I always understood that Burgess had the reputation of being 
 an honest and faithful servant. Burgess afterwards sold the Turkish bonds, 
 and netted about 50 by them. 
 
 Mr. E. H. Bailey, a clerk in the bank-note office of the Bank of England 
 examined by Mr. BODKIN. On the 28th of May, 1855, six 100 notes 
 were paid out of the Bank to the name of Eclgington. They were num- 
 bered from 45,420 to 45,425. On the 14th of September, 1856, one of 
 those 100 notes, jSb. 45,420, was paid in; it had the name of "Tester" 
 written on it, with the address, Jermyn Street, Lewisham. Another note, 
 -45,422, was paid in on the llth of September, 1855 ; it had also the name 
 of " Tester" upon it. The note 45,425 was paid in on the 21st of November, 
 1855. It had the names of " Eaffau" and "Fisher" on it. 
 
 Cross-examined by Mr. Serjeant BAHANTINE. The two notes with 
 Tester's name on them were issued on the 9th of January, 1856. 
 
 Mr. Knight recalled. The signature on these two notes is in Tester's 
 handwriting. 
 
 George Eaffan, a fruiterer, examined by Mr. Serjeant SEEE. Some time 
 ago Pierce asked me to change a 100 note for him. I wrote my name on 
 it, and took it to a man named Fisher, who gave me small notes for it. On 
 another occasion Pierce got me to go to the Bank of England to get 20Q 
 sovereigns for notes which he gave me. 
 
 ; Cross-examined by Mr. Serjeant PAEEY. I was then in Pierce's em- 
 ployment, getting 305. a-week from him. He kept a betting-house and had 
 considerable betting transactions. I have seen him with large sums of money 
 in his possession derived from betting transactions as much as 200. 
 
 Ee-examined by Mr. Serjeant SHEE. It was about spring time, 1355, 
 that I first saw Pierce with so much money. Early in that year I took a 
 pair of boots out of pledge for him. 
 
 To Mr. Serjeant PAEET. I know that Pierce had a book of more than 
 100 on the St. Ledger the year Saucebox won. 
 
 Mr. Smith, cashier to Messrs. Eeid, the brewers, proved the receipt of 
 the money from Mr. Stearn. 
 
 Mr. Young, a stockbroker, examined by Mr. Serjeant SHEE. In August 
 and November, 1854-, I purchased Spanish bonds for Agar in the name of 
 Adams. There were three bonds, and their numbers were 1658, 1084, and 
 2675. They were to the amount of 755.
 
 FACTS, FAILURES, A>TD FBAITDS. 517 
 
 Mr. James Page, examined by Mr. Serjeant SHEE. I am related to the 
 prisoner Tester by marringe. The Spanish bond produced I held for Teeter 
 until very lately, when I gave it up to the solicitor for the prosecution. 
 Tester told mo that his possession of it was perfectly legitimate. 
 
 Mr. Forrester, a stockbroker, examined by Mr. Serjeant SUES. I pur- 
 chased the bond produced in February, 1836, for Mr. William Tester, the 
 father of the prisoner. I purchased it with the proceeds of other Spanish 
 bonds which Mr. Tester brought us to sell. The bond purports to be for 
 1020. Its value nt 52 per cent, discount would be about 489. I have 
 had various dealings with Mr. Tester, the father, and always looked upon 
 him as a highly respectable man. 
 
 Mr. W. C. Furncy, a clerk in the Bank of England, proved the payment 
 in May last of six 100 notes, numbered 45,420 to 45,425 inclusive. The 
 name given at the time was Edgington, Duko Street. 
 
 Mr. Griffin, also a clerk in the Bank of England, proved the exchange 
 of the 100 note, 45,422, endorsed with the name of Tester, for sovereigns. 
 
 Mr. Francis, of the firm of Edgington and Co., Duke Street, was called 
 to show that no person had been sent by their firm to exchange gold for 
 notes to the amount of 600 during the month of May, 1855. 
 
 Mr. Lee, recalled, stated that in March last he got a Spanish bond, 
 numbered the same as the one left by Agar in his trunk when arrested, 
 sold for Pierce. 
 
 Mr. Cousins, a stockbroker, who sold the bond, also gave evidence to 
 the same effect. 
 
 Mr. Recs, solicitor to the South-Eastern Railway Company, examined 
 by Mr. BODKIN. I am the solicitor for the prosecution, and have con- 
 ducted the whole of this investigation. In consequence of what I heard 
 from Agar I went up to Kilburn Villa (Pierce's residence) on the day of 
 Pierce's arrest. The house has a garden in front, and leading from the 
 front door is a flight of stops. Underneath those steps is a pantry, and on 
 searching in that pantry I found that the ground had been disturbed, and 
 a hole had been dug, and in place of the natural clay it had been filled up 
 with cinders. I should say that it had only recently been filled up, for 
 there were green leaves in the cinders, and the claw of a lobster, quite 
 i'r.-rh. In the house wcro Turkish bonds to the amount of 2000, leases, 
 deeds, and securities of different sorts. The green tool-box was in the 
 attic. I also went to Cambridge Villas, Shepherd's Bush (Agar's residence, 
 where the gold was melted down). I had the grate in the back bed-room 
 removed, and behind it I found the three fire-bricks which havo been pro- 
 duced and identified by Agar. The chimney bore evident marks of having 
 be?n subjected to great heat. The floor between the fire-place and the 
 window was very much burnt. I had the boards taken tip, and underneath 
 number of small bits of gold, which had evidently run through the
 
 548 FACTS, FAILTTEES, ASD FEATJDS. 
 
 floor. When I saw the man Agar at Portland I did not say anything to 
 him about what I had seen at his house. 
 
 Cross-examined by Mr. GIFFABD. It was about the middle of October 
 when Agar made the statement. 
 
 F. Williamson, a detective officer, examined by Mr. Serjeant SH.EE. I 
 went with Mr. Eees to Kilburn Villa, and besides the property mentioned 
 by him, I found there a gold watch and chain, which I produce. The watch 
 has a representation of Windsor Castle on the dial, and the initials " E. R. 
 A." on the back. There were also betting-books and same I O TJ's taken 
 from Pierce's house. 
 
 This concluded the case for the prosecution. 
 
 Mr. Serjeant PABBY said that before addressing the jury for Pierce, he 
 should like to have the opinion of the Court whether there was evidence on 
 the last count, which indicted Pierce for larceny as a servant of the com- 
 pany ; and also whether he could be properly said to have been a receiver. 
 The third count charged him with robbery from a dwelling-house, but 
 he apprehended that a railway carriage could scarcely be called a dwelling- 
 house. 
 
 Mr. Baron MARTIN said that Mr. Justice Willes and himself were both 
 of opinion that it was clearly disproved that Pierce was a servant of the 
 company at the time of the robbery. On that count of the indictment 
 there was no evidence to go to the jury. His learned brother and himself 
 were also of opinion that Pierce could not be called a receiver. As to the 
 third count there would scarcely be any necessity to trouble the jury on 
 that. 
 
 The Court then adjourned until ten o'clock the next morning, the jury 
 being reconducted to the London Coffee-house under the charge of the 
 officers of the Court. 
 
 CESTBAL CRniurAL Corsi, January 15, 1857. 
 
 The trial of the prisoners Pierce, Burgess, and Tester was resumed at 
 10 o'clock, before Mr. Baron Martin and Mr. Justice Willes, and the court 
 was filled, as on previous occasions, with an anxious and attentive audience, 
 not the least interested of whom was the witness Fanny Kay, who was in 
 court throughout the whole of the day. 
 
 Mr. Serjeant PABBT. at once proceeded to address the jury on behalf of 
 his client Pierce. After calling upon them, in general terms, to dismiss from 
 their minds all that they had heard or read with respect to the case pre- 
 viously to entering the jury box, the learned counsel went on to observe 
 that it was one of the obvious consequences of a free press that there should 
 be from day to day a public report of what took place in our courts of jus-
 
 TACTS, FAILUBES, AXD FUAUDS. 549 
 
 tice, and far was it from him for one moment to complain of such reports. 
 He recognized the freedom of the press as one of the greatest blessings 
 which we enjoyed, for such publicity as he had alluded to threw a light 
 upon the administration of justice, which enabled every eye in the remotest 
 corner of the land to see that justice was fairly executed ; and without that 
 freedom it was not improbable that our courts might become corrupt, and 
 the administration of justice be poisoned at its source. But sometimes, in 
 addition to those ordinary reports which no one had any right to complain 
 of, it happened that comments were made upon cases which were still pend- 
 ing, which were in the course of primary investigation, and which would 
 have finally to be decided by such a tribunal as was there assembled ; and 
 when those comments were made in a spirit adverse to the persons accused, 
 he could conceive nothing more unfair or unjust. Whether such comments 
 had been made in this case ho was not personally aware ; but, if by any 
 accident such comments should have been made calculated at all to influence 
 the judgment of the jury, or to impair the impartiality with which they 
 should view this case, he trusted that they would endeavour to let them 
 pass away altogether from their recollection. This case was one of a most 
 peculiar character in reference to the legal principles which must guide the 
 jury in coming to their verdict ; and it arose from the circumstance that the 
 main witness he was almost going to say the only witness who proved 
 any real substantial act done by either of the prisoners in this robbery was 
 himself the perpetrator of it. That man had indeed given a detail and a 
 narrative of the robbery which it was extremely difficult for ordinary minds 
 not to act upon ; but in a criminal court it was their duty to act upon those 
 invariable rules which guided the administration of criminal justice in this 
 country, and which ensured to every one a fair and impartial trial. His 
 learned friend, Serjeant Shee, had said that he did not ask them to convict 
 either of the men at the bar unless the evidence of Agar, the accomplice, 
 were confirmed and corroborated by other witnesses. But there his learned 
 friend had stopped, and he had not explained to them the principle which 
 the judges invariably laid down on such occasions. It was his (Serjeant 
 Parry's) duty, therefore, at once to state the principle of law on which he 
 mainly relied, and he should quote one or two extracts from well-known 
 textbooks in support of the Tiew which he held. The principle which he 
 sought to establish was this that an accomplice should be corroborated in 
 his evidence, not merely as to the facts of the case, of which ho himself no 
 doubt well knew ths truth because ho had been a participator in them ; but 
 that he should be corroborated also in reference to the "person" of the 
 accused against whom he gave his evidence, and that he should be corrobo- 
 rated likewise in all material and substantial particulars. lie would now 
 read to the jury an extract from a judgment by Lord Abinger, in which 
 that learned person stated wliat was the law, or rather the rule of practice,
 
 550 FACTS, FAILUEES, A>T> FRAUDS. 
 
 on this subject. Lord Abinger said, in the case of a person who heel 
 been charged with an offence, and against -whom an accomplice had been 
 called : 
 
 " I am strongly inclined to think that you will not consider the cor- 
 roboration in this case sufficient. Ivo one can hear the case without enter- 
 taining a suspicion of the prisoner's guilt ; but the rules of law must be 
 applied to all men alike. It is a practice which deserves all the reverence 
 of law. The judges have uniformly told juries that they ought not to pay 
 any respect to the testimony of an accomplice, unless the accomplice is cor- 
 roborated in some material circumstances. Kow, in my opinion, that 
 corroboration ought to consist in some circumstance thct affects the iden- 
 tity of the party accused. A man who has been guilty of a crime himself 
 will always be able to relate the facts of the case, and if the confirmation be 
 only of the truth of that history, without identifying the person, that is 
 really no corroboration at all. If a man was to break open a house and 
 put a knife to your throat, and steal your property, it would be no corrobo- 
 ration that he had stated all the facts correctly, that he had described how 
 the person did put a knife to the throat, and did steal the property. It 
 v;ould not at all tend to show that the party accused participated in it." 
 
 The danger was, when a man knew that he was charged with an offence, 
 that he might endeavour to purchase immunity for himself by falsely 
 accusing others. He was sure that the jury would see how cogently this 
 applied to the case which they were now considering. However, he should 
 read one other short passage on which he strongly relied. Baron Alderson 
 in a case of a similar character "Erex v. Wilkes and Edwardes" 
 said : 
 
 " The confirmation of the accomplice as to the commission of the felony 
 is really no confirmation at all, because it would be a confirmation as much 
 if the accusation were against you and me, as it would be against those 
 prisoners who are now upon their trial. The confirmation which I always 
 advise juries to require is a confirmation of the accomplice in some fact 
 which goes to Sx the guilt on the particular person charged." 
 
 There again was the reiteration of the principle which he wished the jury 
 to act upon, and which he trusted they would excuse him for pressing 
 upon them so pertinaciously, becaiise he felt that unless he succeeded in 
 that it was hopeless for him to attempt to extricate his client from the 
 situation in which he stood. Those two judgments contained the pith of 
 the whole matter, and although he had intended to read a passage from a 
 judgment of Mr. Justice Williams, who was, perhaps, one of the most 
 eminent judges in the administration of the criminal law that ever sat upon 
 the bench, he did not think it would be necessary to trouble them with it, 
 as Justice Williams' s language was but ti repetition of what he had already 
 read to them from Lord Abiuger and Baron Alderson, Having thus en-
 
 FACTS, FAILURES, AND FBAUD8. -"")1 
 
 ed to explain the principle of the law which should guide the jury, 
 let them proceed calmly and dispassionately to consider the facts which 
 had been brought forward. This was not a case in which any advocate 
 could or ought to do more than calmly discuss the evidence, in order to 
 
 iin whether, by tho law and practice of the courts, that evidence 
 brought home the charge to tho persons accused. lie was perfectly free 
 to admit that his client, if guilty, had committed a grave and serious 
 offence, and no doubt, if the jury should find him guilty, a most serious 
 punishment would be attached to that offence. He believed, however, and 
 
 I (hat he should be able to demonstrate to them, that according to 
 the law and the practice of the courts tho evidence before them failed to 
 
 .itiatc his guilt. He was sure that he should not bo misunderstood 
 by tiie jury. It was not his intention to intrude a single personal observa- 
 tioi. upon them. His asseveration of his belief in the innocence of the 
 
 . r would be a great piece of folly and presumption on his part, 
 eminent cdvocatcs than he was, or ever should be, had, he believed, 
 
 that course ; and when they had done so they had damaged both 
 
 Ives and their client by it. The duty of the advocate was plain and 
 
 -it was, by every fair and honourable and legitimate argument that 
 
 he could use, upon tho evidence that was before the jury, to endeavour to 
 
 his client, and to. compel the jury, by the force of their own judg- 
 
 to give a verdict of " Not guilty." That being his notion of tho 
 duty of an advocate, he would now call attention to the history of this 
 
 He wns sure that it would be impossible, by any epithet that he 
 could employ, to add to the detestation which they must all feel for the 
 character of that man Agar. Earcly did they find entering a court of 
 
 such a man as Agar, having lived a course of crime and fraud of 
 
 every description from the time that he was eighteen or twenty 
 
 f age. During that period the jury could have little doubt that he 
 had been engaged in a most extensive and bold system of plunder, and that 
 lie had been associated with other men almost as bad as himself, not all of 
 whom had yet been detected. The jury would know with what distrust to 
 view the testimony of such a person, and he should therefore abstain from 
 heaping any vituperative epithets upon Mr. Agar his own demeanour, his 
 
 tures, his own life as ho had been compelled to reveal it, his own 
 acts in this particular robbery, as ho had coolly, audaciously, and impu- 
 dently related them, stamped his character at once, and that character he 
 wns sure they thoroughly understood. In addition to the fact that Agnr 
 was the planner and executor of this robbery, ho had, or pretended to 
 have, a personal animosity against Pierce ; and he now sought to be let 
 loose again upon society by giving this evidence. He (Serjeant Parry) 
 wondered whether the influence of the South-Eastcrn Railway Company 
 . le sufficient to induce the Government to let loose a criminal like
 
 552 TACTS, FAILURES, AND FRAUDS. 
 
 that again upon society. It was right that crime should be detected ; but 
 it was not right that men situated like Agar should be encouraged and 
 invited, as he had been in this case, to make these revelations. lie knew 
 not whether we should have the happiness of claiming for ourselves the 
 privilege of calling Mr. Agav a free fellow-subject ; he knew not whether 
 he was again to be let loose upon the world ; but evidently that was one 
 of the motives which operated upon his mind ; and the other was a feeling 
 of great malignity towards the prisoner Pierce. As to the conduct of Pierce 
 towards that young woman, Fanny Kay, and her child, it was impossible 
 for any one to explain it but himself. He waa entirely at the mercy of 
 two persons without character and feeling, except the feeling of animosity 
 which they cherished towards him ; but, fortunately for him, Mr. "\Vontuer, 
 his solicitor, had been enabled by his Lordship to make a statement w:th 
 respect to the 3000, which showed that instead of that money having 
 been appropriated as it was said it had been by Pierce, it had been in- 
 Tested in Turkish bonds at Agar's own request, ready for him at any time 
 he could have demanded it ; and he believed the only persons who wished 
 to get, at this moment, unlawful possession of that money were the South- 
 Eastern Railway Company, although he trusted they would not be suc- 
 cessful in that attempt. He did not propose to go through Agar's narrative 
 step by step, and should only allude to those passages which related to 
 Pierce; and he believed that he should demonstrate to them not only 
 that there was not sufficient corroboration as affected that prisoner, but 
 that there was an entire absence of corroboration, and in points, too, 
 where, if he had been implicated in the robbery, corroboration could 
 easily have been obtained. First, as to the visit of Pierce and Agar to 
 Folkestone in ISoi, that had been corroborated ; but he did not see that 
 any weight was to be attached to that circumstance. That Pierce knew 
 Agar, he had reason bitterly to remember, for without that knowledge he 
 never would have stood in that dock. No doubt the two men had known 
 each other for years ; it was by no means improbable that they might have 
 visited many places together for perfectly innocent purposes, and it was 
 not to be presumed that they associated for criminal objects unless that 
 were proved. They went to Folkestone, and walked about like any other 
 persons ; and no one corroborated what Agar had said relative to Pierce' 3 
 getting possession of the key of the safe, and Agar's taking the impression 
 of it ; not a soul saw that done. That Pierce and Agar were intimate 
 there could be no question, but in what their inthnacy consisted he knew 
 not, and he did not think that mere intimacy alone should weigh very 
 strongly with the jury. That was an element in the case which could not 
 be overlooked he admitted, but he asked them to treat the acquaintance of 
 Pierce with Agar, and their visit to Folkestone, as harmless and innocent 
 until they were proved to be otherwise by some better testimony than that
 
 FACTS, T-iTLUEES, AND FBATTDS. 553 
 
 of Agar. There was no doubt that Agar committed the robbery, and if ho 
 wished to convict Pierce of the crime nothing was easier than for him to 
 associate Pierce with himself upon that visit to Folkestone, although Pierce 
 might have been perfectly innocent of any criminal intention. Then came 
 Agar's account of constant interviews with Pierce in London, of which 
 there was not a shadow of corroboration. So, also, there was a long 
 story told by Agar about obtaining possession of the key, of which there 
 was no corroboration whatever. Then, again, no one proved the purchase 
 of the shot by Pierce except Agar. Notwithstanding the multiplicity of 
 visits which Agar said they had paid together to the railway station and 
 to St. Thomas's Street, the cabmen failed to identify Pierce j but even if 
 Pierce had been identified as accompanying him on one occasion, it by no 
 means followed that he did so with a criminal intention, for there might 
 Lave been scores of purposes perfectly innocent for which they might have 
 gone there together. At length the night arrived upon which Agar and 
 his associate, whoever he might have been, started upon their journey of 
 plunder. On the 15th of May, 1855, Agar went down by mail train to 
 Dover ; but what he did while ho was riding in the train, what he did at 
 Dover, how he returned and with whom he returned, of his arrival in, 
 London and his return home, of the sale of the moneys by Pierce, and of 
 every one of the circumstances which were really the leading circumstances 
 of this robbery, and about which he (Mr. Parry) should ask the jury to 
 apply the principle with which he had set out with respect to all these 
 points there was not a shadow of corroboration of the statement made by 
 Agar. There was no proof that Pierce had been his companion upon that 
 occasion, or that he had had anything whatever to do with the matter. 
 Bad, and tainted, and corrupted as Agar was they must believe his own 
 confession that he committed the robbery. Agar and his companion must 
 have been seen by scores of persons, yet there was not one single indi- 
 vidual who identified Pierce throughout the whole of this occurrence. 
 And the jury must remember that they were not deciding whether Pierce 
 had ridden in a cab with Agar ; they were not deciding whether Piereo 
 was intimate with Agar ; but they were trying what took place from half- 
 past eight o'clock on the night of the 15th of May, 1655, when the Dover 
 express started, until the time when it arrived in Dover, and they were 
 endeavouring to ascertain whether Pierce was the companion of Agar on 
 that journey of plunder, which no doubt would become memorable in the 
 annals of crime. He submitted that there was not one tittle of corrobo- 
 ration in that respect. At Dover they stopped at an inn for two hours- 
 from half-past eleven till half-past one they were seen by the two 
 Clarkes, the landlord and the waiter, in strong gaslight, and yet there was 
 no identification of Pierce. Pierce was by no means an ordinary-looking 
 man ; they passed through the station at two o'clock in the morning in
 
 554 TACTS, FAILTTEES, AIS'D TEAUDS. 
 
 such a manner as to attract the attention of three witnesses ; they stayed 
 twenty minutes on the platform ; Agar said that he gave money there to 
 a railway porter, and yet not one person identified Piei-ce. They came to 
 London and went through the same ordeal, and still not a single witness 
 identified Pierce. Two men no doubt were there ; but Pierce, although 
 he had been in the service of the railway company, and must hare been 
 known to many officers of the company, -was not identified. Agar stated 
 that Pierce had disguised himself with a wig and whiskers, and the only 
 evidence in support of that statement was that a wig had been dressed for 
 him in October, 1854. He did not see what relevancy an occurrence so 
 remote could have to this particular charge. So again with regard to the 
 sale of the bullion. It had been proved, no doubt, that the bullion had 
 been sold, but it had not been proved that Pierce was the man who sold 
 it. It appeared to him to be almost miraculous if Pierce were the man, 
 how he, being known to the railway officers, should have passed them 
 without being observed ; and there was no proof whatever that Pierce was 
 disguised upon the night in question, for the logic of a person who would 
 say that because a man had a wig dressed in October, 1854, therefore he 
 was disguised in it in May, 1855, although it might suit the brain of Agar, 
 was not logic he imagined which would impose upon the jury, or which 
 would induce them to say that there was'an atom of corroboration of the 
 statement of Agar, that Pierce was a co-operator and participator with him 
 in this particular act. Upon their return to London carts were hired to 
 cany the booty, still there was not a shadow of evidence to connect Pierce 
 with the hiring. Then came the story which Fanny Kay told them, and 
 which she alone had told them. Now, who was Fanny Eay ? It was very 
 melancholy to think that one so young should have been so profligate as 
 she evidently had been. It was melancholy to think what her character 
 had been ; and then let him remind them that she was a woman, and that 
 she sought to be revenged upon this man Pierce. Let him remind them 
 of that, and then ask them whether she was a witness on whom they could 
 rely ? Had she not in all probability gone there with a fixed resolution 
 to make good her object of revenge against Pierce? Did they believe 
 her story when she told them that her life had not been a life of im- 
 propriety ? He should be the last to say, because a girl had unfor- 
 tunately fallen from the position which a virtuous woman always occupied 
 in this country, that she was therefore not to be believed upon her 
 oath. God forbid! But that was not the case of Fanny Kay. She 
 had no doubt been immoral; he passed lightly over that, and touched 
 lightly upon it ; but he asked them to remember whose companion 
 she had been for two years. His learned friend Serjeant Shee, with 
 a face more innocent than his learned friend usually wore, in re- 
 examining that girl, asked her whether she had not had an honourable
 
 FACTS, FAILUBES, AND FRAUDS. 
 
 engagement with Mr. Hart, the gentleman who, when he came to town, 
 never saw her mother, but always saw her, and who generally gave her two 
 sovereign?, sometimes one never less. Mr. Tress also had known her 
 before, and Billy Barber likewise had been an acquaintance, although 
 apparently^ most innocent one. She was then introduced to Agar, accord- 
 ing to his own account, as a perfect stranger, and they lived together as 
 man and wife for two years ; and with all that before him, his learned 
 friend had the innocence, or assumed it, to re-examine her so as to induce 
 them to believe that all her attachments were honourable. Agar was the 
 participator in great crimes, some of them acknowledged, but scores, no 
 doubt, unacknowledged. His mind, probably, at that moment was the de- 
 positary of the history of the crime of this metropolis and elsewhere for the 
 last twenty years. He had visited America, where he said that he had 
 ** speculated ; " could the jury doubt that he had speculated in crime ? and 
 he asked them, could such a woman live with such a man and remain un- 
 tainted ? She knew that his name was Agar after the birth of her child ; 
 she was addicted to drunken habits ; ho asked again, could such a woman 
 live with such a man, and remain a pure-minded and honourable woman ? 
 Pure she could not be ; could she be a woman of a truthful and reliable 
 character ? He should ask the jury to say, with respect to that furnace 
 story which Agar had told, that there was not a shadow of reliable corrobo- 
 ration of it. Fanny Kay was anxious, for what he knew, to obtain the 
 release of Agar ; she was far more anxious to obtain the conviction of 
 Pierce, and he had no doubt that she had coloured and exaggerated if she 
 had net created the larger portion of her evidence. He admitted that 
 Pierce was frequently at Shepherd's Bush, because Charlotte Painter stated 
 that she had seen him there ; but as for anything that was done there 
 besides the "hammering" or "knocking," there was no corroboration 
 whatever. lie had heard more than one eminent judge say that there was 
 a testimony on which a jury need not and ought not to act, and yet their 
 non-acting upon it did not impute wilful and deliberate perjury to the per- 
 so:\ upon whose testimony they did not so act. As regarded Fanny Kay, 
 they might see that she was a malignant woman evidently, and that she 
 had a great object to gain. He remembered Justice Erie saying that there 
 was nothing of which juries should be so cautious as acting upon the testi- 
 mony of a witness who had a particular object in view altogether beyond 
 what was involved in the case. Fanny Kay had that particular object in 
 yiew here, and it was one of the worst objects which a human being could 
 seek to carry out it was revenge. She desired to convict and to punish, 
 and to be revenged upon Pierce. Would they, then, act upon her testi- 
 mony ? She had evidently become doubly corrupted. Not only was she 
 profligate, but she was addicted to habits of intoxication. That was a 
 habit which tended to weaken the intellect both of man and woman it was
 
 556 FACTS, FAILTTKES, AND FRAUDS. 
 
 one of the most degrading vices that either sex could be guilty of, and 
 every one must admit that its effect was to blind the moral sense, and to 
 darken and to diminish the distinctions between right and wrong. He 
 asked them, then, to reject the evidence of Fanny Kay as unworthy and 
 unreliable, and to consider that Agar and Kay were really one and the 
 same person in this trial, and that they were both actuated by the same 
 motives. That she was substantially the wife of that man Agar must be 
 admitted, and it had been laid down that corroboration by the wife of an 
 accomplice was not a corroboration which juries ought to act upon. What 
 more was there in this case ? Pierce had gone by the name of Peckham. 
 Well, he was not there to defend Pierce either for associating with Agar or 
 for assuming a false name ; but there might be financial embarrassments, 
 perhaps, rendering the use of a false name necessary, and which no one but 
 Pierce himself could explain. Another fact which had been triumphantly 
 relied upon by the prosecution, was the possession of one of the 100 notes 
 by Pierce, which note was the result, with five others, of the change for 
 600 sovereigns obtained at the Bank of England on the 28th of May. That 
 note was changed by Baffan for Pierce in the month of November, 1855. 
 At that time Agar had been arrested, and he asked the j ury how they could 
 say that that was not one of the notes which Agar had left with Pierce to 
 be applied to the support of Kay ? No other proceeds of this robbery had 
 been traced to Pierce, and if, as had been proved, Pierce had from time to 
 time advanced to Fanny Kay from 80 to 100, what more likely than that 
 he should have changed the note in question to supply her with money ? 
 And if he changed it for that purpose, was not the whole of the cogency 
 and value of that evidence in favour of his client ? Kaffan deposed that he 
 had frequently seen Pierce with a large amount of money, and that lie 
 knew that he had a large book upon the St. Leger in 1855, when Saucebox 
 won. He (Serjeant Parry) was informed that it was no uncommon thing 
 for betting-men to be worth 20,000 one day, and to be beggars the next, 
 and therefore it was not difficult to understand that Pierce, who was a 
 betting-man, might be one day seen pawning his shoes, and another in the 
 possession of plenty of money. Such occurrences, he was informed, were 
 by no means rare, and he believed that there was more roguery, fraud, 
 swindling, and blackguardism in the betting-ring than in any part of Her 
 Majesty's dominions. He believed that the jury had now the whole case 
 before them, and he hoped that he had made himself perfectly understood. 
 If they believed Agar they must convict Pierce ; if they believed Fanny 
 Kay there would be some evidence for them to consider ; but he submitted 
 that, even if they believed her, there was not sufficient in her evidence 
 which pointed directly to the personal act of Pierce in any crime whatever. 
 If they looked to the rest of the evidence, there did not appear to be any 
 confirmation showing a complicity in this crime. Confirmation as to occa-
 
 FACTS, FAILURES, A>'D FRAUDS. 557 
 
 sional journeys and Tisits, and as to being seen in a public-house now and 
 then together, there was, but that showed nothing beyond the bare fact 
 that Agar had been acquainted with this man, and it did not show any 
 complicity in crime. In conclusion, he asked them to be good enough to 
 weigh carefully such observations as he had made as they thought wero 
 entitled to consideration, and to apply those observations to that rule of 
 law, or that rule which had all the reverence of law, and which was almost 
 as binding as law, which he had pointed out. If they did that, and rejected 
 all external matter from their consideration, he believed that he was right 
 in thinking that he had demonstrated to them that upon that principle 
 they ought not to convict the man at the bar. 
 
 Mr. GIFFAHD next addressed the Court on behalf of Burgess. After 
 expressing his general concurrence in the remarks of Serjeant Parry with 
 respect to corroborative evidence, and urging also the necessity of corro- 
 boration with respect to each of the prisoners before them, he proceeded 
 to test the credit which was to be attached to Agar's statement. Ob- 
 serving in passing that Agar's character was so bad that it was impossible 
 to blacken it that he was there endeavouring to make capital out of his 
 former crimes, and that refuting the adage that there was " honour among 
 thieves," he was endeavouring to escape punishment or to avenge himself 
 by the betrayal of his accomplices, the learned counsel went on to say that 
 he did not deny that Agar's story that he stole the gold might be true. 
 It might be true that he had been meditatiug the crime for years, and 
 endeavouring to corrupt the railway servants, and that in the steady pur- 
 suit of that object he had scraped an acquaintance with some of them, and 
 had been seen from time to time in their company j and there could be no 
 doubt that the consequence of such an acquaintance was that the prisoners 
 at the bar were placed in some degree of peril. Suppose, however, that 
 instead of Burgess, Agar had fixed upon Sharman as having been an 
 accomplice, and had told them in a detailed form that Sharman had per- 
 mitted him to take an impression of the keys in wax, and suppose that 
 Sharman admittedly an innocent man stood at that moment at the bar, 
 in what position would he have been different from that which Burgess 
 was then in, for Sharman had been seen at the hotel taking refreshments 
 with them ? One great inconsistency, as it appeared to him, in Agar's 
 story was, that there did not appear to be any necessity for his employ- 
 ment in the matter at all. Pierce was stated to be the suggestcr of the 
 robbery; Burgess was a guard in the employ of the company, and ho 
 might have lived at Folkestone if he had liked, where he could have ascer- 
 tained without suspicion everything that it was requisite to know about 
 the key of the bullion safe ; Tester was the person who was alleged to have 
 got possession of the key in London after the locks went to Messrs. Chubb'a 
 to be recombincd ; and he (Mr. GiiTard), therefore, was really at a loss to
 
 558 FACTS, FAILURES, AND FRAUDS. 
 
 see what it was that Agar did which the others, if they were all implicated 
 in it, could not have doiie just as well without him. Agar stated that, in 
 order to fit the keys, he went down in the train with the bullion chest 
 upon six or seven different occasions. It had been elicited in cross- 
 examination that the bullion chest only went down by the train of which 
 Burgess was guard when it was too late for the tidal service train ; and 
 surely the company must know the occasions on which, in the months of 
 April or May, the bullion chest went down with Burgess ; yet there was 
 no testimony to corroborate Agar in the slightest degree respecting his 
 statement of going down with the chest six or seven different times to fit 
 the key. Surely that was a circumstance of materiality which the jury 
 would expect to find corroborated if Agar's evidence were true, because he 
 could scarcely get into the guard's van upon all those occasions without 
 having been seen by some of the porters or the under-guard. Another 
 remarkable circumstance was that Agar had never told them what he had 
 done with the key which he pretended to have made from the wax im- 
 pression. He had told them how he had disposed of the hammer and of 
 the chisel, and the hay and the shot ; but he had said nothing about the 
 key. If the key had been produced, any locksmith could have told them 
 whether it was the original key which had been made for the box, or 
 whether it had been filed from a blank key and taken from a wax im- 
 pression. It was not likely that such a circumstance would have escaped 
 Agar's mind, and what he (Mr. Giffard) submitted was, that the key 
 which the captain of the vessel had lost, Agar by some extraordinary coin- 
 cidence had found. Agar being compelled to fix the scene of the robbery 
 somewhere fixed it in the train ; but might it not have occurred just as 
 easily during the two hours and a-half that the box was at the station, or 
 on the quay waiting for the boat ? It was true that there was a watchman 
 there, who said that he watched the box ; but, if the watchman and Bur- 
 gess changed places, would not Burgess declare, as stoutly as the watch- 
 man had done, that he had kept a vigilant eye upon the bullion box during 
 the journey from London, and that no one had touched it ? He did not 
 for a moment say that the watchman was an accomplice in the robbery, 
 but he thought it extremely likely that his vigilance might have been 
 evaded. He presumed that the bullion box was a thing from its appear- 
 ance likely to attract attention; and instead of the times of its departure 
 being kept a secret, as was pretended by the officers of the company, it 
 appeared that the time of the train by which it was going was, in the ordi- 
 nary course of business, chalked upon it in large letters. Surely, then, 
 persons intent upon committing a robbery, knowing that the bullion box 
 was going down to a solitary seaport by a particular train, might concoct 
 some plan to lull the vigilance of the watchman during the two or three 
 hours that the box was to remain, at that place. Now, if Agar's evidence
 
 FACTS, FAILURES, AND FRAUDS. 559 
 
 wort true, let them consider whether in the progress of the train cm the 
 night i:i question there would bo any means of corroborating him. The 
 only person from whom he (Mr. Giflard) had endeavoured to elicit anything 
 was not a desirable witness ; it was Kennedy, the vmder-guard. He did not 
 mean thereby tliat ho was an accomplice of Agar's, but he was evidently 
 desirous to make the case perfectly conclusive, and, in spite of the hint 
 which he obtained from his learned friend Mr. Bodkin early in the examina- 
 tion in chief, he was much " too clever." Kennedy might have told them 
 at how many stations Burgess had to get out, what he had to do at those 
 station?, whom he would see there, and so on. Instead of that Kennedy 
 said, " From the moment I got in to the moment I got out of the train, I 
 never saw anything of Burgess." When asked who gave Burgess the 
 signal to go on, he replied, " Why, I did." He was asked, " Didn't you 
 see him then?" " No, I gave him the signal by a light." Again he was 
 asked, "Didn't you see Burgess when he gave you the answer?" " Yes ; 
 at leat I saw a light, but I did not know whether Burgess held it or not." 
 Now he (Mr. Giffard) submitted that that was not the proper mode of giving 
 evidence in such a case as this, because, but for the cross-examination, it 
 would have left the impression that Burgess was working away in the van 
 with Agar during the whole of the journey down. Again, there was this 
 difficulty in the case. The mail train stopped at a certain number of 
 stations ; not all. Now, if Agar and Burgess were in the break van on 
 the seven or eight occasions to which Agar had spoken, he wanted to know 
 where it was that they got out ? At Dover there were porters always in 
 attendance to take the luggage, and if Agar had got out of the guard's 
 Tan at the station would it not have created remark ? This was evidently 
 felt to be a difficulty by Agar, and he had therefore avoided the topic. 
 On the night of the robbery there were three of them in the guard's van, 
 because Pierce got in at Reigate. If three persons then got out of the 
 van at the station must it not have led to inquiry, and would not the jury 
 have cipected some evidence on that subject ? Agar had left that part of 
 the history a blank, although it afforded ample room for corroboration if 
 the story were true. Williams and Witherden were called to show that 
 two men answering the description given by Agar of himself and Pierce 
 went back to London by the train that night. That might be true. Those 
 mLht have been the two persons for all ho (Mr. Giffard) knew to the 
 contrary ; but it was singular that those two witnesses stated that Ken- 
 nedy, theunder-guard, and Burgess, the prisoner, 'were standing in the room 
 facing them at the time those two men went through, and that Agar did 
 not mention one word upon the subject. What he put to them was, tliat 
 in every circumstance in which Burgess was concerned there was an entire- 
 absence of corroboration. Tester was well-known by the officials of the 
 railway at Keigate, yet no one had been called to conOrm Agar's statement
 
 560 TACTS, FAILTJKES, A^D 
 
 that Tester lurked about on the down side of the line at that station for 
 the purpose of receiving the bar of gold. It was admitted that the ac- 
 quaintance between Burgess and Agar was very slight ; and, although 
 Fanny Kay had been introduced to Agar by Burgess, she never once saw 
 Burgess during the whole two years during which she lived with the 
 approver. This circumstance could not well be reconciled with the 
 alleged fact that Burgess was concerned in the robbery, and was, in- 
 deed, the principal actor in the drama, without whom, as guard of the 
 train, the crime could not have been committed. If that had been so, 
 surely he would have been seen some time or other by Fanny Kay in 
 Agar's company, while arranging their plans for the robbery, or while 
 conversing about the distribution of the booty after its commission. 
 Burgess had not been traced by any witness as having been in Agar's com- 
 pany after the robbery, and they were asked to believe that the first time 
 he saw Agar after the crime was completed was in August, when the fruits 
 of the plunder were divided among the four accomplices. It was not in 
 accordance with human nature that a man who had run such risks for 
 spoil should be so indifferent about getting his share of it as not to go and 
 look after his confederates' proceedings during the long interval between 
 May and August. There could be no doubt that the approver Agar had 
 played a very ingenious part ; yet the cleverest of his fraternity were some- 
 times led into mistakes. It so happened that iu Agar's statement there was 
 a remarkable discrepancy of no less than 220 between the amount of the 
 proceeds of the robbery and the aggregate sum divided among the four 
 persons concerned in it. That was a fact tending to throw discredit upon 
 Agar's evidence. The assertion that 600 in gold was changed at the Bank 
 for an equal sum in notes, also bore the stamp of extreme improbability. 
 Was it to be believed that persons trained in crime, who had got gold coin, 
 which could not be traced, as the fruits of their robberies, would be likely 
 to exchange it for bank-notes, for tracing which there were such faci- 
 lities ? It was not alleged that it was Burgess who obtained these notes 
 at the Bank, and little weight could therefore be attached to the circum- 
 stance of some of them coming into his possession eight or nine months 
 afterwards. As to Burgess having bought some Turkish bonds, it only 
 proved that by a successful speculation he was able to clear the sum of 60. 
 The guard of a train had many opportunities of knowing the state of the 
 market, and, hearing that those bonds were " up," he might reasonably 
 have thought it a good time for dealing in them. Burgess had been about 
 thirteen years in the service of the company, and might well have been a 
 richer man if all his speculations had succeeded. The statement of Agar 
 that Burgess came out of the station on the night of the robbery, and 
 wiped his face the preconcerted eignal that "all was right" was wholly 
 uncorroborated ; and as to Burgess's having been seen with Pierce and
 
 FACTS, FAILURES, AND FRAUDS. 5G1 
 
 Agar at the Marquis of Granbv, it was not to be supposed that Burgess 
 would hare gone to meet them at a public-house, where everybody might 
 go in and out, in order to plan a robbery. When Messrs. Abell and Co. made 
 their claim for compensation, the railway company resisted it from May to 
 September, on the ground that the gold must have been abstracted in 
 France, and not in England ; yet all this time the company knew that the 
 shot which was substituted by the thieves for the bullion was English- 
 made, and not French. The legal advisers of the company instituted an 
 inquiry immediately after the robbery, and Burgess was then examined. 
 Why had not Burgess's statement been produced in that court, that the 
 jury might have compared it with Agar's story, and then drawn their own 
 conclusions accordingly ? Instead of that, however, the whole transaction 
 had been "bottled up" for eighteen months by the company, and Burgess 
 had been most unfairly deprived of the legitimate means of making good 
 his defence. Agar was a man who had been steeped in crime from his earliest 
 years, while Burgess, on the other hand, was a man of honest character, 
 and a diligent and faithful servant, who had up to the present time main- 
 tained the confidence of his employers, by whom he was retained in his 
 responsible situation of guard long after the robbery. It was for the jury 
 to say whether they would depend upon the evidence of a witness like 
 Agar ; but he humbly submitted that the case was not one free from all 
 reasonable doubt ; that Burgess was, therefore, entitled to the benefit of 
 his previous good character ; and he confidently relied that his client would 
 meet with an acquittal. 
 
 Mr. Serjeant BALLANTINE then addressed the jury on behalf of the 
 prisoner Tester. Having implored them to dismiss from their minds all 
 that they had learnt of this case from the newspapers, and other extraneous 
 sources, he expressed his deliberate conviction that whatever might be the 
 amount of trustworthy evidence adduced at that trial, much remained 
 behind, which, if disclosed, would throw most important light on the ques- 
 tion they were investigating, and much had also been introduced that had 
 been invented and applied with an ingenuity perfectly devilish, but which 
 the careful scrutiny of honest and unprejudiced minds would unravel and 
 defeat. The prisoner Tester had been many years a clerk in the service of 
 the South-Eastern Railway Company, holding an onerous and well-remu- 
 nerated situation, and being the son of a man of substance and respectability. 
 He left this company's employ in the year 1856, taking with him the highest 
 possible character, and entered upon an office equally responsible and more 
 lucrative in the service of a railway company in Sweden. In the latter 
 position he remained until he heard, through the usual channels of informa- 
 tion, of the charge brought against him by the approver Agar ; upon which 
 he returned at once to this country, threw himself upon its justice, inviting 
 a full investigation of his conduct ; and now he abided the issue. If he 
 
 O
 
 5G2 TACTS, FAILUEES, AKD 
 
 was really a dishonest man, undoubtedly he was also a bold one ; for, 
 instead of staying in Sweden, where he would at least have been free, ho 
 had preferred to place himself voluntarily within the reach of punishment, 
 and now stood of his own accord in the felons' dock. Upon a man like 
 Agar he (the learned counsel) would not lavish epithets. He was, by his 
 own admission, a scoundrel, and a scoundrel of no ordinary stamp. As a 
 psychological phenomenon his character deserved careful study. According 
 to his own account of himself he was forty-one years old ; and the only 
 part of his life of which he was ashamed, and which he sought to hide, 
 was the three years of wasted honesty, during which he held a humble 
 situation, and did not sully his hands with renewed crime. His general 
 career, marked by masterly contrivance and perverted forethought, was that 
 of a devilish tempter of mankind of a man who, not content with carrying 
 his crimes on his own shoulders, and gaining a livelihood by them, wan- 
 dered through society to corrupt its honesty, and pollute everything that 
 came within his accursed touch. No more terrible scourge could be let 
 loose upon society than would flow from the liberation of such a miscreant. 
 At the commission of what baseness would- he be likely to hesitate if he 
 thought he might thereby shorten the term of bis own incarceration ? To 
 secure mercy for himself, he would not shrink from destroying the hap- 
 piness, the reputation, or the liberty of the innocent. The honesty towards 
 each other, proverbial even among thieves, was a weakness that he had left 
 far behind. But he had a livelihood to gain when he should emerge from 
 Portland prison, through the instrumentality of the South-Eastern Railway 
 Company, and he would, therefore, be only too glad to screen any accomplice 
 who could divulge deeds of his such as the last penalties of the law could 
 alone expiate at the expense of an innocent man who had incurred his 
 malignant revenge, for no deeper offence than that of resisting his diabolical 
 seductions. The disclosures of Agar had been ascribed to the fact that his 
 compassionate love for that sweet and sentimental young lady, the mother 
 of his child, had been keenly wounded through the unkind treatment she 
 had experienced from Pierce ; but when the matter came to be sifted, it 
 turned out that the infamous approver had deserted the woman to whom 
 he was so tenderly attached, and had taken up with another, with whom 
 he lived for some time before being taken into custody. There was no 
 immorality no species of villany in which he had not revelled, and his 
 whole ambition would indeed seem to have been to show himself a worthy 
 head of the noble guild of scoundrels. What would such a heartless 
 wretch care if his innocent victims were pining in prison provided he him- 
 self was at large enjoying the society of his Fanny Kays and Fanny Camp- 
 bells, and living by the spoliation of the public? The able argument of 
 his learned friend (Mr. Giffard) had shown pretty conclusively the absence 
 of satisfactory proof that the robbery was committed in the manner stated
 
 FACTS, FAILUHES, AITD PEAUDS. 563 
 
 by the approver, and it was unnecessary, therefore, to travel over that 
 ground again. But what he (the learned serjeant) charged against Agar 
 was, that he had fabricated a story based upon certain facts entirely inde- 
 pendent of this case, which he easily picked up through his knowledge of 
 Burgess, Tester, and the other officers of the company, and upon these 
 immaterial facts he had fixed as a means of confirming the accusation 
 against Tester which he had ingeniously engrafted upon them. For example, 
 haying learned from the railway officials that Tester came up from Ecigate 
 with a black bag, what was there to prevent his inventing the untruth that 
 that bag had been taken by Tester for the express purpose of bringing up 
 the bars of gold ? And how was it possible for the prisoner to contradict 
 that statement ? Again, Agar knew that Tester was a person manifestly 
 pointed out by his situation as likely to have access to the keys of the 
 bullion chest, and his knowledge of this fact enabled him to pass off his 
 storv about Tester giving him possession of the keys to take an impression 
 of them. So, likewise, having fixed on the railway as the scene of his ver- 
 sion of the robbery, he was obliged to implicate the guard in its commission. 
 Again, it was said that Tester and Agar were seen frequently together, and, 
 took tea and wine together. This might be very true ; but then Tester did 
 not know Agar's character at that time ; and was it not very probable that 
 all this while Agar was endeavouring, but without success, to induce him 
 to betray his trust, and allow him to get possession of the keys of the 
 bullion chest, over which he knew the prisoner had some control ? The 
 jury could not have forgotten that Agar swore positively that he was 
 innocent of the crime for which he had lately been convicted, and that he 
 was found guilty through the false testimony of an accomplice. By this 
 statement Agar was either committing deliberate perjury, or he presented 
 in his own person a terrible example of the danger arising from juries 
 attaching undue weight to the fabricated evidence of accomplices. The 
 learned counsel then remarked upon the scanty evidence adduced as to 
 Tester's control over the keys of the bullion chest. It was stated that 
 the keys were sent by Mr. Chubb to Mr. Brown, the superintendent ; and 
 it waa reasonable to suppose that the latter gentleman locked 1 hem up 
 safely in his own drawer. If he had not done so, he would no doubt havo 
 been called as a witness to prove the fact. It waa alleged that Burgess and 
 Kennedy were continued as guards of the eight P.M. down train lor moro 
 than one month through the intervention of Tester. If there was any 
 irregularity in this proceeding and it had been shown that there was 
 none, such extensions of a guard's time being not unusual the blame for 
 it rested with the superior officer who witnessed the prisoner making the 
 alteration in the list. Agar might easily have gleaned the circumstance of 
 Burgess being kept on the train for May, and make use of it to bolster up 
 the whole tissue of his other nicked inventions. Again, it wns not pro-
 
 56i. TACTS, PAILUEES, AND TEAUDS. 
 
 tended that Tester was seen with the black bag on the night of the rob- 
 bery. All that was proved was that he was seen somewhere about 
 the time of its commission. Surely that simple fact of itself was no sufficient 
 ground for the inference that he had a portion of the plunder in his posses- 
 sion. Moreover, was it to be credited for a moment that, if such had been 
 the contents of the black bag, he would have been so foolhardy as to 
 go out of his way to attract observation by proceeding to the Green- 
 wich Railway station, instead of going quietly at once to his own 
 residence, and hiding the stolen property ? But that was not all ; 
 he actually went up to the booking-clerk, voluntarily engaged in con- 
 versation with him, forced upon his attention the fact that he had 
 been to Eeigate and back since office hours, put down the black bag 
 with the bar of gold (as was said) in it, and went away for nearly ten 
 minutes, leaving the bag behind him until he returned to take his place in 
 the train. No criminal, unless he were positively insane and determined 
 not to escape detection, could have acted in this matter as Tester was re- 
 presented to have done. Agar might somehow have obtained a knowledge 
 that the prisoner came up from Keigate with a black bag, and then pounced 
 upon it as a further means of giving the semblance of confirmation to hia 
 story of Tester's complicity in the robbery. It certainly had the appear- 
 ance of fitting very neatly perhaps too neatly into his tale ; but whether 
 it had been made so to fit by Agar's own fertile invention, or by Tester's 
 conduct, the jury would have to decide for themselves. Then with regard 
 to the division of plunder. It was stated that Tester accepted some 
 Spanish bonds from Agar as his share of the fruits of the crime. Was it 
 to be believed that Tester would have run the risk of robbing his employers 
 for the sake of two or three Spanish bonds worth something, perhaps, to- 
 day, and nothing at all to-morrow when he could have hard cash in En- 
 lish sovereigns instead? This fiction was too transparent to deceive 
 senaible men. The truth was Agar must have come to know that the 
 prisoner had been dealing in Spanish bonds, and then he tried to make it 
 be believed that Tester got them from him. This was another sample of the 
 mode in which the approver had manufactured his confirmatory evidence. 
 As to the alleged changing of 600 sovereigns into six 100 notes, the story 
 bore the impress of a lie upon the very face of it, and was evidently trumped 
 up to give effect to his other base machinations. Thieves might be desirous 
 of changing notes into gold ; but who ever heard of their having the mad- 
 ness to change gold, so easily convertible and so difficult to be traced, into 
 bank-notes, which afforded so many facilities for detection? He (the 
 learned serjeant) charged him with being the concoctor of appearances 
 against his client. The notes were never in Tester's hands at all ; nor did 
 he write his name upon them. His name had been forged, perhaps not by 
 Agar himself, but by his ready agents. That infamous approver had shown
 
 FACTS, FAILURES, AKD FEATJDS. 565 
 
 himself capable of such a detestable deed be was connected with the noto- 
 rious "Jem Saward" and that organized and gigantic system of forgeries 
 which had so recently startled the commercial community. .A gar had been 
 a forger all his life his plots had had their ramifications in America as well 
 as in Europe, and they had extended over more than twenty years, during 
 which period he had contrived, almost miraculously, to escape detection. 
 The learned counsel, in conclusion, maintained that no confirmatory proof 
 had been adduced of the approver's testimony against his client, and 
 earnestly appealed to the jury not to allow a man who had hitherto borne a 
 high and unimpeachable character to bo the victim of the foul machina- 
 tions of one who sought his ruin. 
 
 Mr. Baron MAETIN then proceeded to sum up the evidence. He said, 
 Gentlemen of thejury, my learned brother and myself are both of opinion that 
 the prisoner Pierce cannot be convicted on the first count, which charges 
 him with larceny as a servant, seeing that at the time of the robbery he had 
 ceased to be a servant of the company. The only offence, therefore, of 
 which ho can be found guilty is simple larceny. With regard to Burgess 
 and Tester, however, the case is different. They vrere both servants of the 
 company, and were placed in situations of trust. You have been very 
 properly desired to dismiss from your "attention all the remarks which have 
 been made by the press in reference to this trial, and I also will make that 
 request of you, though I have no doubt that the evidence which you 
 have listened to during the last two days, must have made a much, 
 greater impression on your minds than' anything which you have read 
 in the newspapers. This case, it has been truly said, is one of the greatest 
 public importance. It is one of a class which has unfortunately become 
 very numerous of late, and for which I think the Legislature ought speedily 
 to make some special provision, where the great joint-stock companies which, 
 have come into existence in such numbers within the last quarter of a 
 century have been plundered by their confidential servants. It seems as 
 though the feeling of attachment and fidelity, which ought to exist between, 
 clerk and employer, is wholly wanting in the case of these companies, and 
 they appear to be regarded as a public spoil. This case rests mainly, no 
 doubt, on the evidence of the approver. To use his own expression, Agar 
 is, and has been for years, " a professional thief," and he was known to the 
 prisoners as such. He was no common thief, however. Before he engaged 
 in this transaction he waa in the possession of 3000 stock, besides Spanish 
 bonds to the extent of 700, and he appears to have been applied to on account 
 of his great professional skill to undertake this business, just as one would 
 apply to a great physician, or a great lawyer, or any man of great profes- 
 sional reputation for assistance in his particular walk. My learned brother 
 fiheo told you, very properly, at the beginning of this case, that, for the 
 purpose of convicting any one on the evidence of an approver, it is
 
 5GG TACTS, FAILURES, A2TD FRAUDS. 
 
 necessary that that lie sliould be corroborated by other witnesses. If 
 you are convinced from the evidence of other witnesses that the story 
 which Agar has told is a true story, if you are of opinion that there 
 are circumstances connected with it which must have happened, and 
 which he cannot have invented, and that the minute details which 
 he has narrated have been corroborated by independent witnesses with 
 whom he can have had no communication, and over whom he can have 
 had no control, then it is undoubtedly your duty to find the prisoners 
 guilty but if you have any doubt upon these points, then you must acquit 
 them. Agar was arrested on the 15th of August, 1855, and he was con- 
 victed at the October Sessions at this Court, and from that time he has had 
 no possible opportunity of making up a concerted story with any one, nor 
 indeed is there any one of the witnesses, except Fanny Kay, who would be 
 likely to enter into communication with him on the subject. His motive 
 for coming forward now is perfectly clear. He is actuated by a violent 
 feeling of animosity against the prisoner Pierce for the breach of trust which 
 he committed in appropriating to himself the 3000 intended for the sup- 
 port of Fanny Kay and the child. Eevenge is his object. Against Bur- 
 gess and Tester he appears to have no feeling of animosity, and it will be 
 for you to consider how far he would be likely, if his story were a false one, 
 to inculpate two persons who do not appear to have given him any cause 
 of offence. My learned brother Shee contended that even if Agar's evi- 
 dence were struck out altogether, there was still a case to go to the jury 
 against all the prisoners. I think my learned brother erred there as re- 
 spects Pierce and Tester. Against them there would be no case, I think, 
 without Agar's statement, but against Burgess I am of opinion that there 
 would be evidence to go to the jury even if Agar had not been examined, 
 you are of opinion that the robbery took place between London and 
 TTo Ikestone of which I think the evidence leaves very little doubt then 
 con es the question, how could it have been committed without Burgess's 
 knowledge, seeing that his station was in the compartment in which the 
 ;old was carried? But with regard to the other two, I am of opinion that 
 there would be no case if you disbelieve Agar's story. Substantially, how- 
 $ve.-, the case against all the three prisoners rests upon Agar's evidence, and 
 it will be your duty carefully to consider that evidence, not starting with 
 the assumption that it is false, but looking at it with great suspicion, and 
 noting how far it is corroborated by the evidence of independent witnesses. 
 If you are then of opinion that it is so completely confirmed in all its im- 
 portant points by the testimony of persons with whom he can have had no 
 communication, and no opportunity of concerting a story, as to make it 
 perfectly certain that his account of the mode in which this robbery was 
 committed is true, then it will be your duty to find the prisoners guilty. 
 The learned Baron then went through the whole of Agar's evidence, point-
 
 FACTS, FAILT'HES, AND FRAUDS. oC7 
 
 ing out those portions in which it was corroborated by other witnesses. 
 His account of the visits of himself and Pierce to Folkestone was confirmed 
 by Mrs. Hooker, at whose house they lodged on their first visit ; of Hazel, 
 the police inspector at Folkestone, who had watched them ; mid of Sbar- 
 man, Chapman, and Ledger. Chapman's evidence in particular ns to the 
 receipt of the parcel of gold by Agar at Folkestone, and his pretended in- 
 ability to write a receipt, because of his wounded finger, agreed in every 
 particular with Agar's statement. Agar said he had been informed by 
 Tester that one of the keys of the iron safe had been lost, and that it had 
 been sent to Messrs. Chubb to have the lock altered, and this was con- 
 firmed by Mr. Chubb, who produced the correspondence relating to this 
 transaction, which was in Tester's handwriting, showing that Tester was 
 acquainted with this circumstance, which it was not likely would have been 
 generally known among the company's servants. In like manner, the un- 
 usual circumstance of Burgess acting as guard to the mail train so much 
 longer than his regular term of duty (during which tune Agar was going 
 tip and down the line fitting the key to the safe), was shown to have been 
 arranged by Tester himself. Tester was shown to have travelled on the 
 line from Eedhill to London that night, and to have had a little black bag 
 with him, by the testimony of Jones and Russell, just as was alleged in 
 Agar's story ; niid Agar's account of the return of Pierce and himself from 
 Dover to London by the two o'clock train was confirmed in all particulars by 
 the waiter at Dover, and the porters at the Dover and London stations. 
 Agar's description of the manner in which the gold had been carried from 
 the station, and melted down, was confirmed by the evidence of the cabman 
 and the carter, and also by Mr. Rces, who found the fire-bricks behind the 
 grate, the burnt flooring at Agsr's old residence, and the box of tools at 
 Pierce's. The evidence of the Bank clerks respecting the six 100 notes, 
 and of the stockbrokers, of Lee, the stockjobber, and of Steam, the publi- 
 can, were all confirmatory of Agar's evidence as to the division of the plun- 
 der ; and the Spanish bonds, of which Agar had spoken, had been in the 
 same manner traced to the possession of the prisoner Pierce, and of Tester's 
 father. Having thus pointed out those parts of Agar's evidence which 
 were confirmed by other witnesses, the learned Baron dismissed the jury at 
 a few minutes to five o'clock to consider their verdict. 
 
 After an absence of little more than ten minutes, the jury returned into 
 court, and the foreman delivered in their verdict, Guilty cm the second 
 count (simple larceny) against Pierce, and Guilty on the first count against 
 Burgess and Tester. 
 
 The prisoners having been placed at the bar for judgment, 
 Mr. Baron MABTIX proceeded to deliver the sentence of the Court. 
 Addressing the prisoners he said You, William Pierce, James Burgess, 
 and George William Tester, have all been convicted, upou pretty nearly the
 
 568 PACTS, EAILTIEES, A^D FEATJDS. 
 
 most conclusive evidence which it was possible to lay before a jury, of the 
 offence with which you were charged. The mau Agar is a man who is as 
 bad, I dare say, as bad can be, but that he is a man of most extraordinary 
 ability no person who heard him examined can for a moment deny. I do 
 not entertain a doubt that it was because he was an old, experienced thief, 
 noted for his extraordinary skill, that he was applied to by you for the 
 purpose of getting this robbery effected by his instrumentality. Something 
 has been said of the romance connected with that man's character, but let 
 those who fancy that there is anything great in it consider his fate. It is 
 obvious, as I have said, that he is a man of extraordinary talent ; that he 
 gave to this and, perhaps, to many other robberies, an amount of care and 
 perseverance one-tenth of which devoted to honest pursuits must have 
 raised him to a respectable station in life, and considering the commercial 
 activity of this country during the last twenty years, would probably have 
 enabled him to realize a large fortune. But look at the consequences of his 
 career of crime. Instead of being a respected wealthy man, as he might 
 have been, he is a slave for life separate for ever from all he holds most 
 dear. It is perfectly clear that he was fond of associating with persons of 
 the other sex, but he is entirely cut off from all such associations. He is 
 condemned to a wretched and miserable life. He is dealt with as a com- 
 plete slave, and has no more control over his own actions than the veriest 
 slave that has existed since the world began. I did not think it right to 
 notice, while the trial was going on, the observations which were made by 
 counsel on the probability of his getting his discharge as the price of the 
 evidence he has given here to-day. That is entirely in the breast of the 
 Crown ; we have nothing to do with it ; but it does not at all follow as a 
 matter of course, that a man of his character will be released from prison 
 because he has given evidence which has had the effect of bringing you to 
 justice. He has related to us the various circumstances of this robbery, and 
 has narrated minute details which have been confirmed by upwards of 
 thirty witnesses, with whom it was perfectly impossible that he could have 
 had any communication. He could not have told us those details except 
 his story had been a true one ; and, for my own part, I believe every word 
 of his evidence from beginning to end. On you, Pierce, I am unfortunately 
 compelled to inflict a punishment less severe than upon the other prisoners. 
 They were servants of the company, and you were not. By a strained 
 construction of the law you might, perhaps, have been got into the same 
 category with the other two ; but I am unwilling, and my brother Willes 
 agrees with me, to strain the law against you. But I do declare, that if I 
 stood in that dock to receive sentence, I should feel more degraded to be in 
 your place than in that even of either of your associates. You had been 
 long connected with this man Agar ; he trusted you, and he gave you 
 3000 stock to be invested for the benefit of his child and its mother, toge
 
 PACTS, FAILURES, AND FBATJDS. 5G9 
 
 ther with GOO, his share of the produce of this robbery, and the rest of the 
 gold which bad not been sold. In all you must have got out of him about 
 15,000. This you stole and appropriated to your own use. It is a worse 
 offence, I declare, than the act of which you have just been found guilty. I 
 would rather have been concerned in stealing the gold than in the robbery 
 of that wretched woman call her harlot, if you will and her child. A 
 greater villain than you arc, I believe, does not exist. (This strong 
 language was received by the audience with a loud burst of applause.) I 
 greatly regret that I have it not in my power to inflict a heavier punish- 
 meut upon you ; but the heaviest sentence which the law allows for your 
 offence I will pass upon you, and that is that you be imprisoned, with 
 hard labour, for the space of two years, and that during three months of 
 that time the first, twelfth, and twenty-fourth month you bo kept in 
 solitary confinement. Aa for you, Burgess and Tester, there is no manner 
 of doubt that your case is that not unfrequent of late of men who, 
 having good characters, and being placed by your employers in situations 
 of trust, were unable to resist the temptation of getting possession of a 
 large sum of money all at once. Whether Agar tempted you or whether 
 you were tempted by Pierce, as is most likely, and that then Agar was 
 applied to as a man noted for his skill and ability in such matters, it is 
 impossible for us to know now. That you Burgess, a man who had been 
 fifteen years in the service of the company, and were receiving good wages, 
 and that you Tester, the son of a most respectable man, should have 
 yielded to this temptation, is greatly to be deplored; but we should be 
 departing from our duty to the public, particularly after what wo have 
 seen taking place during the last few mouths, the robbery of the Crystal 
 Palace Company and other offences of a similar nature, if we did not visit 
 you with the severest punishment. You knew when you engaged in the 
 commission of this crime that, though if you were successful, it would 
 place you in the possession of a large oum of money, yet that if you were 
 detected you would be liable to the severest punishment. You were willing 
 to play the game, and you must pay the forfeit. The learned counsel who 
 have addressed the jury on your behalf have spoken in the strongest terms 
 of Agar's character. No doubt ho deserves all they have said, but let it 
 be eaid in his favour that he remained true to you, that ho said not a 
 word about this robbery until he heard of Pierce's base conduct. As he 
 gave his evidence ho did not appear to feel towards you that bitter ani- 
 mosity which was so clearly manifested in him, and, I must say, not 
 unnaturally, under the circumstances, towards Pierce. lie had no motive 
 to accuse you falsely, and this to my mind is an additional proof of the 
 truth of his story. The sentence of the Court upon you, Burgess and 
 Tester, is that you bo severally transported beyond the seas for the term 
 of fourteen years.
 
 FACTS, rAILTJEES, A2O> FKATJDS. 
 
 The prisoners received their sentence without any change of de- 
 meanour, and were immediately removed from the bar. 
 
 Mr. BODKIN, addressing Mr. Baron Martin, said, in reference to his 
 Lordship's observations on the possibility of Agar's release, it was only 
 just to Mr. Sees, the solicitor for the prosecution, to mention that, when 
 he saw Agar at Portland, he had distinctly stated to him that he was not 
 to expect any remission of his sentence in return for the evidence which 
 he had consented to give. The learned counsel at the same time applied 
 to the Court that the property found in the possession of the prisoners 
 should be handed over to the South-Eastern Railway Company. 
 
 Mr. Baron MAKTIK declined to make any such order at present. The 
 Turkish bonds found in the possession of Pierce had been clearly pur- 
 chased with the money entrusted to the prisoner by Agar, and if he had 
 the power he should certainly order those bonds to be handed over to 
 Fanny Kay. 
 
 Mr. BODKIN said, the company had no desire to take possession of any 
 property which was not the produce of the robbery. 
 
 Mr. Baron MABTIN said that, if the solicitor for the prosecution would 
 specify on affidavit what property they thought themselves entitled to, he 
 and Mr. Justice "Willes would then make whatever order seemed right to 
 them under the circumstances. 
 
 THE G-REAT CHEQUE FORGERIES. THE TRIALS OF 
 SAWARD AND ANDERSON, AND HARD\VICKE AND 
 ATWELL. 
 
 CENTRAL CRIMINAL COURT, March 5, 1857. 
 (Before the CHIEF BAEOJT and Mr. Baron BEAMTVELL.) 
 
 At the sitting of the Court, James Townsend Saward, aged 58, de- 
 scribed as a labourer, and James Anderson, aged 36, described as a servant, 
 were placed at the bar to plead to several charges of forgery. 
 
 There were four separate indictments, to all of which the prisoners 
 pleaded " Not Gruilty." Both prisoners presented a very dejected appear- 
 ance, and Saward, in particular, had lost the confident demeanour he exhi- 
 bited while under examination at the Mansion House. 
 
 Before the trial was proceeded with, Saward addressed the Court, and 
 asked for a counsel to be assigned to him. He said that a brief had been 
 prepared, but he had been unable to retain counsel ; but if the brief were 
 to be placed in the hands of any gentleman at the bar, a delay of a quarter 
 of an hour would enable him perfectly to understand the case, and to show 
 that he was entirely innocent.
 
 TACTS, FAILURES, AND FBAFDS. 571 
 
 The CinrF BABO^ said, he had no power to assign him counsel. It 
 was arranged last week that the trial should come on to-day, and ho had 
 had ample opportunity to instruct counsel to defend him. 
 
 Saward said, that, under these circumstances, he should leave his case 
 entirely in the hands of the Court. 
 
 The prisoners were then jointly charged with having forged and uttered 
 an order for the payment of 100, with intent to defraud. 
 
 Sir F. Thesiger was specially retained with Mr. Bodkin and Mr. 
 Sleigh to conduct the prosecution. Uo counsel appeared for the prisoner 
 Anderson. 
 
 Sir F. THZSIGEE, in opening the case to the jury, commenced by observ- 
 ing that he could not help expressing his regret that the prisoner Saward 
 should have made the application they had just heard, and that it should 
 appear that he was deprived of the necessary legal assistance upon his 
 trial. It is (said Sir F. Thesiger) the first intimation the counsel for the 
 Crown have received, that the prisoner was unprovided with counsel ; and 
 certainly, so late back as Saturday last, both prisoners were distinctly in- 
 formed that the trial would come on to-day. What endeavours have been 
 made to procure counsel, I am of course ignorant of ; but it is clear that, 
 as the counsel for the Crown, I have only one duty to perform, and that is 
 to proceed with the task that devolves upon me. The case I have to lay 
 before you is one of the most serious character, involving the highest 
 punishment known to the law short of the capital, and I am sure I need 
 not ask for the most patient and careftd attention at your hands, to the 
 evidence which I shall lay before you in support of the charge. I regret to 
 eay that the prisoner Saward is a barrister, having been called to the bar in 
 1840 by the Society of the Inner Temple, to which I have the honour to 
 belong ; and I need hardly say how gratified I should be if it could bo 
 made out that the prisoner is not guilty of the serious offence that is alleged 
 against him. The other prisoner lias formerly been a gentleman's servant, 
 and latterly he has been a waiter at different hotels, and both are charged 
 with having jointly, and with other persons, carried on a most gigantic 
 system of forgery upon the bankers of this metropolis. The charge will 
 mainly rest upon the evidence of two persons named Hardwickc and At well, 
 who were undoubtedly concerned in all these transactions, and to whose 
 evidence the jury ought not to attach any weight, unless it be confirmed by 
 independent testimony. I believe, however, that corrobortition of the most 
 ample kind will be given of their evidence, and that in the result the jury 
 will only be able to arrive at one conclusion namely, that the prisoners 
 are guilty of the offence that is charged against them by the present in- 
 dictment. The prisoners stand charged for forging and uttering an order 
 for the payment of 100 ; but it is important that I should draw your 
 attention to other similar transactions in which they were engaged, so aa to
 
 572 FACTS, FAILUEES, A^D FEATJDS. 
 
 bare no doubt on your minds that they perfectly well knew that the cheque 
 in question was a forged cheque. The first transaction was one connected 
 with Mr. Doe, an ironmonger in Brick Lane, Spitaliields. In December, 
 1855, Mr. Doe's premises were broken open, and from his iron safe, among 
 other things taken away, there were two blank cheques and several other 
 cancelled cheques, which had been previously returned by the bankers, 
 Messrs. Barclay and Co. Atwell took these cheques to a person named 
 Saunders. Saunders said he thought these two cheques might be made use 
 of; and in a few days afterwards he introduced Atwell and Mr. Saward. 
 Mr. Saward was on that occasion desirous to know the sort of business 
 that was carried on by Mr. Doe, for the purpose, no doubt, of adapting the 
 amount of the cheque to his circumstances. He was accordingly taken to 
 Mr. Doe's, and, seeing that the business was not a very extensive one, he 
 said he was afraid that not much could be made of these cheques. He 
 told Atwell, however, that they would produce something, and he proposed 
 to introduce Atwell to a person whom he called Davis, a person who after- 
 wards appeared to be Anderson, to whom, shortly afterwards, Saward in- 
 troduced Atwell. It appears that Anderson took a lodging in Leman 
 Street, Goodman's Fields, under the name of Davis, and he there answered 
 persons and letters sent to him, among whom were two persons named 
 Driver and Brown. .He directed Driver to come to his lodging in Leman 
 Street, and Brown was to wait for him at the Eastern Counties Eailway. 
 On the 9th of January, 1856, the parties met in Spitalflelds. Saward pro- 
 duced two cheques which he had forged in the name of J. B. Doe upon 
 Barclay and Co., one for 46 15s. Gd., and the other, which was dated on 
 the 10th of January, 1856, for 95 17s. Gd. (They compared these cheques 
 with the cancelled cheques, and then Saward, having torn up the cancelled 
 cheques, gave the other two cheques to Driver, who had been desired by 
 Anderson, under the name of Davis, to come to him in Leman Street. 
 Driver accordingly went to the lodgings in Leman Street, and then Ander- 
 son (hi the name of Davis) sent him to Messrs. Barclay and Co. with the 
 cheque for 46 15-s. Gd. Atwell followed him to Messrs. Barclay's, where 
 the cheque was presented and was paid. Atwell having informed Ander- 
 son, who was waiting in the neighbourhood of his lodgings, that the cheque 
 was paid, went to Leman Street, and there received the money from Driver. 
 The parties then proceeded to the Eastern Counties Eailway, where the 
 other young man, Brown, made his appearance according to appointment. 
 Another cheque for 95 17s. Gd. was given to Brown by Atwell, just in the 
 same way as the former cheque was to Driver, to be presented to Messrs. 
 Barclay and Co. That cheque was also paid. Anderson met Brown on 
 his return from the bankers. He took him to a public-house, and there 
 received the money from him ; and then all the parties proceeded to the 
 Hackney Eoad. Mr. Saward said he would get the notes changed by Jack
 
 FACTS, FAILUEES, AND FBAUDS. 57$ 
 
 Hall, and he -went avrny and got the notes changed. He returned, and the 
 money was divided, Saward receiving his share from Atwell and Anderson. 
 An arrangement was then made between Atwell and Saward, that if Atwell 
 should procure any more cheques, he should communicate with Saward, 
 and, on the other hand, if he (Saward) had any more business for Atwell 
 to do, he would inform him. An occasion which the parties anticipated, 
 was not long in arriving. Atwell, under the name of Hawkes, had in the 
 meantime taken a lodging in Cottage Lane, City Road. A gentleman 
 named Ash, who carries on business as an iron-merchant in Upper Thames 
 Street, and who banks with Messrs. Smith, Payne, and Co., had his pre- 
 mises broken into, and had some blank cheques and also some cancelled 
 cheques taken away, and these had come into the possession of Mr. Saward. 
 Mr. Saward, according to an arrangement made with Atwell, called at. 
 AtwelTs house, and there was seen by Atwell's mistress, and also by Atwell. 
 Saward then produced to Atwell the cancelled cheques of Mr. Ash, and 
 also the blank cheques which I have mentioned. An arrangement was 
 made with regard to the filling up of these blank cheques, and to the 
 passing them off. Mr. Anderson had on this occasion taken a lodging in 
 the name of Hammond in Oakley Crescent, City Road. The usual course 
 was pursued ; an advertisement was inserted and answered, and a young 
 man came to Oakley Crescent. A cheque for 91 was delivered to this 
 young man to be presented at the bankers'. He went to the bank of 
 Smith, Payne, and Co., followed by Atwell ; but the cheque was stopped, 
 and the young man was detained ; upon which Atwell immediately went to 
 these parties at a place previously arranged among them, and of course they 
 forthwith dispersed. Inquiry was made at Oakley Crescent for the parties, 
 but of course they were gone. The next matter which occurred among 
 the parties, was the drawing of cheques of Messrs. Bramah and Sons on 
 Messrs. Ransome and Co., the bankers. These cheques were obtained by 
 means of a forged order for a cheque-book from the bankers. That cheque- 
 book having been got, Saward immediately proceeded to forge three cheques 
 one for 17 12*., another for 71 10*., and a third for 87 14*., all of 
 which were paid. Shortly afterwards, a cheque of Messrs. Dobreo and 
 Sons, who, I believe, arc merchants in Tokenhouse Yard, came into the 
 possession of Mr. Saward, and he prepared a bill of exchange for 386 
 17*. 10d., which purported to bo accepted by Messrs. Dobree and 
 Sons, payable at Hankeys and Co. Saward had for that occasion taken 
 lodgings under the name of White, in Cumberland Street, Hackney Road. 
 This bill, for 386 17*. 10J., was given to a young man to present at Han- 
 keys' for payment. Anderson, in disguise, watched the young man to the 
 bank, but the bill was stopped, and the money was not paid. The parties 
 having timely notice of this were soon dispersed. The next transaction 
 which I have to detail to you, is important to be borne in mind, and is one
 
 574 PACTS, PA1LTTEE8, A!ST> TEATIDS. 
 
 displaying rather a singular degree of ingenuity on the part of these 
 persons. A Mr. Alfred Turner, who is a solicitor in Eed Lion Square, had 
 his pocket picked, and Ms pocket-book was taken from, him, containing two 
 blank cheques, arid a letter addressed to himself, thus showing to whom, 
 the book belonged. Mr. Saward was particularly desirous of obtaining the 
 handwriting of Mr. Turner, and he therefore suggested the following inge- 
 nious mode of gaining his object : He prepared an I O U for 30 in 
 the name of Hesp, and it was arranged that Atwell should go to Mr. 
 Turner, and desire him, as his solicitor, to write to his supposed debtor 
 Hesp for the payment of this supposed I O U. Mr. Saward suggested 
 that when the payment was made, the money should be allowed to 
 remain in the hands of Mr. Turner for two or three days, in order, 
 probably, that he should pay it into his bankers, so that when it was 
 asked for, Mr. Turner should give a cheque bearing his signature for 
 the amount. Anderson took a lodging in the name of Hesp, and in 
 due form a letter was addressed by Mr. Turner for payment of the 
 I O TT. Mr. Hesp immediately paid the debt, but all the parties were 
 disappointed on that occasion, for Mr. Turner's clerk, who happened to 
 have received the money, paid the amount in cash. Mr. Saward consoled 
 himself by saying, " Well, we must wait a little, and then try it again." 
 Well, gentlemen, they did try it again. In the meantime in May, 1856 
 Mr. Hardwicke arrived from Van Dieinen's Land, and renewed his ac- 
 quaintance with Mr. Saward. They met first in Farringdon Market, and 
 then adjourned to a public-house near Southwark Bridge, and, having come 
 there rather late in the day, the landlord was without food to supply them 
 with, and was obliged to send out to a beef-shop ; in consequence of this 
 circumstance the house was always afterwards known by these parties by 
 the name of the " beef-house" a very important circumstance to be borne 
 in mind, as the parties were in the habit of meeting there. Hardwicke had 
 brought over with him, among other things, a bill of exchange for 200 
 drawn by Grossman and Co., of Hobart Town, upon Stephen Kennard 
 and Co., of Austin Friars, payable at Messrs. Heywood, Kenhard, and 
 Co's. It was endorsed to Hardwicke. At this " beef-house" near South- 
 wark Bridge, Hardwicke handed over that bill to Mr. Saward, who returned 
 it to Hardwicke in the course of the day. Saward then prepared, by 
 means of that bill, a bill for 1000, which purported to be accepted by 
 Messrs. Kennard and Co., and to be payable at Heywood, Kennard, and 
 Co's. He completed the bill with the exception of the date, and that was 
 left for some convenient opportunity to be filled in. Shortly afterwards 
 Hardwicke, Atwell, and Anderson were at Mr. Townsend's shop, a 
 natter, in Cheapside. A young man named John Clements came in and 
 asked for a situation"as light porter. Hardwicke followed the young man 
 out of the shop, and asked him his name and address, and then promised
 
 FACTS, PAFLTJBES, AND FHArD3. 575 
 
 to write to him. Anderson had taken lodgings in the Kingsland Road by 
 the name of Ryde, and ho addressed a letter to this young man Clements, 
 desiring him to call upon him. Clements called on him accordingly on the 
 13th of June. Anderson then made an appointment with him to meet on 
 the following day at the Sussex Arms, near the Kingsland Road, where all 
 the parties were assembled. On tliat occasion the bill for 1000 was pro- 
 duced. Saward took out a 20 bank-note and gave it to Clements, desiring 
 him to get it changed, and to bring him two 10s. foreign bill stamps. 
 Clements did as he was ordered, and brought back the change and the 
 stamps, which he gave to Anderson, and which were taken by him to the 
 Sussex Arms. There Mr. Saward took one of the stampa, wrote a receipt 
 across it, and filled up the date of the bill. He then delivered the bill to 
 Anderson, who went and gave it to Clements, who was directed to go and 
 present it at Heywood, Kennard, and Go's. Hardwicke had started to the 
 City, in order to be there before Clements. Clements went by an omnibus, 
 Atwell unknown to him, seated himself by his side, and they rode to the 
 City together. Clements went to the bankers, Heywood and Co., and pre- 
 sented the bill for 1000. Hardwicke was at the banking-house, and 
 Atwell just outside the .bank. The cashier counted out the notes, but just 
 at that moment he had some misgiving as to the genuineness of the accept- 
 ance. He accordingly took the bill, and was comparing it with some other 
 bills I suppose with some handwriting when Hardwicke became alarmed, 
 and left the banking-house. Atwell just went in and saw the cashier take 
 up the notes, payment was refused, and the young man Clements was 
 dt'tained. Saward and Anderson were waiting in Bishopsgate Churchyard, 
 where the other parties, Hardwicke and Atwell, joined them after the 
 failure of this large scheme. But their failure on this occasion induced 
 Mr. Saward to try another experiment on Mr. Turner, and this was more 
 successful than the first. These parties went to a public-house in Lincoln's 
 Inn Fields, and there Mr. Saward prepared an I O U in the name of Hart 
 for 103 15. 6t/. They rubbed it on the table to give it the appearance of 
 age. Anderson and Atwell (bearing the name of Hunter) went to Mr. 
 Turner's to procure payment of the I O U. AtwelTs brother was the 
 person who went and paid the money to Mr. Turner. They allowed the 
 money to remain in Mr. Turner's hands for a certain time, and that gentle- 
 man paid the amount into his bankers', Messrs. Gosling and Co. When 
 Mr. Hunter went to receive the amount of the I O U, Mr. Turner paid it 
 in a cheque, deducting his own charges, the cheque being for 103 8s. lOd. 
 This cheque was taken to Mr. Saward, and Mr. Saward set to work and 
 forged three cheques in the name of Mr. Turner, one of them being for the 
 sum of 410 7*. 4d. Mr. Anderson took a lodging in Albort Road, 
 Regent's Park, in the name of Taylor. Ho there issued an advertisement 
 in thj usual manner, and a young man named Hardy was engaged by him.
 
 576 TACTS, FAILTJELS, AlH) FRAUDS, 
 
 The cheque for 410 7*. 4d. was given to Hardy, who went to Messrs. 
 Gosling and Co., and the money was paid. Anderson received that money 
 from the young man, and the parties had agreed to assemble at the 
 Elephant and Castle to share it among them. But Hardwicke missed his 
 friends. Saward sought after him, and, among other places, he made 
 inquiry at Mrs. Dixon's, in Union Street, a cousin of Hardwicke's. The 
 experiment, however, was entirely successful, and the money was ultimately 
 divided among them. We are now approaching more particularly the 
 period at which the cheque in question which is the subject of inquiry 
 before you was forged by Mr. Saward, and at the same tune other sums of 
 a similar description upon Messrs. Hankey and Co. The cheque in question 
 is in the name of Baldwin. A cheque of Mr. Baldwin came into the hands 
 of some of the confederates of Mr. Saward, who prepared three cheques 
 under the name of Baldwin upon Messrs. Hankey and Co. ; one being for 
 50, and two for 100 each. Upon this occasion, the parties adopted a. 
 different mode for passing off the cheques. They determined to send the 
 porters from different hotels to present the cheques for them. They first 
 selected the Magpie public-house, in Bishopsgate Street, where Saward, 
 with Anderson and other parties, assembled. It was first proposed to pass 
 the 50 cheque, which was done in this way : Anderson went to the White 
 Hart public-house, in Bishopsgate Street, and there delivered the 50 
 cheque to the "boots" or porter to take to Hankey and Go's, and get 
 cashed 5 and having done so he returned to Saward at the Magpie. The 
 cheque was paid, and Anderson, hearing that fact, went again to the White 
 Hart and received the money from the boots, and then immediately changed 
 the money into Napoleons at a money-changers in Lombard Street. He 
 then despatched the porter at the Four Swans with a cheque for 100 upon 
 Messrs. Hankey and Co., which was also successful. The money was paid, 
 and Anderson received it at the Four Swans ; but when the porter got 
 back it was too late to present the remaining cheque. This being Saturday, 
 they all agreed to meet on Monday, the 14th, at Gregory's Hotel in Cheap- 
 side. They came according to appointment, and thence they adjourned to 
 a public-house in Wood Street, Cheapside, and there Anderson was seen to 
 pass over a sum of money to Saward, a circumstance not to be lost sight 
 of. Anderson then returned to Gregory's Hotel, and desired the porter to 
 take the remaining 100 cheque upon Hankey and Co. to the bank. The 
 porter accordingly went there, but the parties were not so fortunate as to 
 this cheque as they were with respect to the other two. The cheque was 
 refused payment, and the person presenting it was detained- Of course all 
 the parties dispersed as soon as they heard what had happened. Xow, 
 with regard to this part of the transaction, I must press most particularly 
 on your attention the fact of Saward being in the company of Anderson at 
 the Magpie pxiblic-house for a considerable portion of the day of the 16th
 
 PACTS, FAILTJBES, AND rHAUDS. 577 
 
 of August. I shall have the most clear and unquestionable evidence of 
 that fact both of the landlord and the bannan of the house. With regard 
 to his being at the public-house in Wood Street, and money passing 
 between him and Anderson, I have also tho disinterested evidence of a 
 gentleman who happened to be present at the time, and who saw the money 
 pass between the parties. I am now drawing to tho close of this extra- 
 ordinary case. It only remains for me to detail to you the manner in 
 which the detection of all these frauds occurred. A cheque upon Messrs. 
 Layton's bank, at Yarmouth, fell into the hands of these parties, and it 
 immediately suggested itself to them that there might be an opportunity 
 of doing some business hi that quarter. It was arranged that Atwell and 
 Ilardwicke should go down to [Yarmouth, Hardwicko under tho name of 
 Ralph, and Atwell under tho name of Attwood. They there applied to 
 different solicitors, as hi tho case of Mr. Turner, and instructed those 
 solicitors to write to certain supposed debtors in London, by which means 
 they would of course obtain the handwriting of those solicitors, and be 
 able to go to then: bankers with forged cheques. Mr. Hardwicke, before he 
 left London, had ordered his letters to be sent in the name of Kalph to the 
 Chapter Coffee-house, Paternoster Eow. It turned out that the Chapter 
 Coffee-house had been closed some time, but Ilardwicke went there, 
 and saw a party m the house, and he said that he had been in the 
 habit of having his letters left there, and the person said he would 
 receive any letters that were addressed to Mr. Ealph. Well, he and Atwell 
 went down to Yarmouth, and they applied to Mr. Chamberlain, to Messrs. 
 Reynolds and Palmer, and to Mr. Preston, all of whom were solicitors, 
 instructing them to write to persons in London for supposed debts. Atwell 
 went on to Norwich, and there employed Messrs. Miller and Son for a 
 similar purpose. Letters were written to the supposed debtors in London. 
 There were persons ready at the end of the journey to receive those letters. 
 Mr. Saward on the receipt of the letter from these several attorneys wrote 
 on the 3rd of September to each of them, complaining of the very harsh 
 manner of his creditor, but promising that the debt should bo paid. These 
 letters went to the solicitors, and will be produced in evidence. In due 
 time Atwell and Hardwicke came up to London, and the money for the 
 amount of the supposed debts was paid into different banks in London to 
 be forwarded to Yarmouth. On tho IGth of September, at a public-house 
 hi Queen Street, Mr. Saward wrote three letters to different attorneys 
 informing them that he had paid tho money, and he returned to Atwell 
 the letters of application which had been written by the attorneys at Yar- 
 mouth. Mr. Atwell and Mr. Ilardwicke immediately proceeded again to 
 Yarmouth, but an untoward circumstance occurred, which first led to 
 suspicion, and afterwards to detection, to which I will now call your atten- 
 tion. Mr. Ilardwicke, in order to keep up hia credit at Yarmouth, was 
 
 P P
 
 578 TACTS, FAII/CGES, A^D rEATJDS. 
 
 anxious to pay a sum of 250 into the bank of Barclay and Co. to the 
 credit of Mr. Ralph at Yarmouth. He accordingly went to Messrs. 
 Barclay and Co. and paid in the money in the name of Mr. Whitney ; but, 
 unfortunately for him, he forgot to pay it in as money to be paid to a Mr. 
 Ralph. The money was therefore sent down to Yarmouth to the credit of 
 Mr. Whitney. Of course when Mr. Ralph went to receive the money they 
 said they had no money in that name in their hands, but had such an 
 amount to the credit of a Mr. Whitney. This created great uneasiness, and 
 Hardwicke wrote to Saward under cover to Mr. Ralph at the Chapter 
 Coffee-house, giving an account of the unfortunate circumstance which had 
 occurred, and requesting him to interfere to get the matter rectified. 
 Saward sent Anderson to Barclay and Co., but they refused to pay the 
 money upon the representation he made to them, and they required that 
 Mr. Whitney must attend himself and explain the matter. Thus this 
 affair ended. In the meantime suspicions had been excited as to the 
 conduct of Atwell and Hardwicke at Yarmouth, and an inquiry was set on 
 foot, and those suspicions became so strong that the consequence was both 
 Atwell and Hardwicke were apprehended. On going to Atwell's lodgings 
 there were found all the letters which had been written by the attorneys at 
 Yarmouth, and which Saward had given back to Atwell when he wrote the 
 answers to those letters. But a more unfortunate event occurred to Mr. 
 Saward. On the 15th of September, 1856, Mr. Saward wrote a letter to 
 Hardwicke, addressing him by the name of Ralph, in answer to Hardwicke 
 respecting this unfortunate transaction as to the payment of the money 
 into Messrs. Barclay and Go's. bank. That letter, arriving at Yarmouth 
 after Hardwicke and Atwell had been apprehended, fell into the hands of 
 the police, and was opened and read by them. It certainly appeared to 
 them, not understanding all the extraordinary circumstances which I hare 
 detailed to you, a little ambiguous ; but when the letter was brought to 
 London, and as soon as it was shown to the solicitor for the prosecution, 
 the difficulty was dispelled, and afforded a clue to the whole mystery. It 
 explained everything, and the letter was of the greatest importance as 
 showing Saward's connection with Anderson and the other parties. [Here 
 Sir P. Thesiger read the letter, which was afterwards given in evidence.] 
 As to the handwriting of that letter I shall have no difficulty in proving it 
 to your satisfaction. Saward in the meantime, not seeing Hardwicke or 
 hearing from him, became uneasy, and he wrote a note and left it at Mrs- 
 Dixon's. He afterwards went there and asked for Hardwicke, upon which 
 she told him, to his great surprise, that Hardwicke had been apprehended, 
 and she asked what it was for, when he said, " Oh, nothing ; the circum- 
 stance will be settled in a few days." He told her that if any one came 
 there and asked for Hardwicke she was to say that Mr. Hardwicke's letters 
 were left there, but that a lady came for them. Saward then asked whether
 
 PACTS, FAILURES, AND FRAUDS. 579 
 
 any letters were in her possession. Two were produced, and on Saward 
 saying, li I think you bad better bum thoe letter?," tbe mother of Mrs. 
 Dixon said, "Perhaps the gentleman had better burn them himself." 
 Upon which Saward took the two letters and burnt them. Saward was 
 apprehended on the 26th of December by two City officers named Moss 
 and Huggett. They went to a coffee-shop in John Street, Oxford Street, 
 where they inquired for a Mr. Hopkins, when a woman said that he had 
 gone to a public-house in Oxford Market. They went there. Huggett 
 entered the house, Moss remained a little behind, and presently observed a 
 door opened rather gently. He immediately opened the door fully, and 
 found Mr. Saward there. He said, "My name is Hopkins." "~No" said 
 Moas, "your name is Saward." He said, "You are entirely mistaken." 
 Shortly afterwards Moss said, " You are James Sawnrd." Saward said, 
 " I know nothing at all about him." Huggett then said, " I must appre- 
 hend you for forgery, for forging a bill of 1000 upon Messrs. Heywood 
 and Co., and with also being concerned with Anderson, Hardwicke, and 
 Atwell." Saward said, "I don't know any such persons." The officers 
 then apprehended Saward. He shortly wanted to retire to the water-closet. 
 Huggett said, " You may go, but before you do you must be searched." 
 He was searched, and they took from him two blank cheques of the St. 
 James's branch of the London find Westminster Bank. Saward said to 
 Huggett, "Of course, you have no desire to do anything with them." A 
 little while after, as he was being taken in the cab, Saward said, " I suppose 
 I need not hold out any longer. My name is Jem Saward." 
 
 The prisoner Saward. I said no such thing. 
 
 Sir F. TUESIGEB. I am merely stating the evidence which I am pre- 
 pared to prove. 
 
 The prisoner Saward repeated that he never used the words attributed 
 to him. 
 
 The CHIEJ BAEON. It is very irregular to interrupt the counsel in 
 that way. If it be not true that will appear by the evidence ; but if it be 
 supported by the evidence the jury will have to consider it, but this is not 
 the time to do so. 
 
 The prisoner Saward. But, my Lord, the evidence may. not bo true. 
 
 The CHIEF BABOS. But we must hear it before we can judge whether 
 it bo true or false ; and before we can receive the evidence we muat hear 
 the narrative of the whole transaction. 
 
 Sir F. TIIESIGEB. Gentlemen, I believe I have most fairly, most faith- 
 fully, and most accurately detailed to you from beginning to end the whole 
 of the evidence which I shall have to depend upon, and it is neither for me 
 nor for the prisoner to judge of the weight of the truth of that evidence; 
 that is a matter entirely for you, Kcntluncn, and you will have the fullest 
 opportunity of considering and weighing Uiat evidence. You will observe.
 
 580 FACTS, FAII/UEES, AND FEATJDS. 
 
 from what I have stated to you, that it mainly depends upon the testimony 
 of those persons, Atwell and Hardwicke, who are implicated with the 
 prisoners, and who are accomplices with them, and who, therefore, unless 
 supported by testimony of credit, of course will not be able to establish a 
 case against the prisoners. Your duty will be to see whether there are 
 circumstances in this case which confirm materially the evidence of Atwell 
 and of Hardwicke, and which will leave no doubt upon your minds that 
 they have told you a true story. You can understand that it is not ex- 
 pected in cases of this kind that persons who are accomplices should be 
 confirmed in every statement they make. That in most cases would be 
 impossible ; but they must be confirmed upon such facts as will lead any 
 man to the conclusion that the substantial part of their story, which 
 perhaps might not be fully corroborated by other testimony, is true and 
 faithful. Iii regard to the connection between these and the other parties 
 I need do no more, after the denial of Mr. Saward, than refer you to the 
 astounding circumstances stated in that letter, or rather, I should say, 
 those letters, which were written by him upon the occasion of the trans- 
 actions at Yarmouth, and of which I have already intimated to you I shall 
 have distinct proof. I trust, gentlemen, I have now discharged my duty 
 faithfully. My object was to place before you a plain statement of the 
 evidence that will be submitted to your judgment and final decision. I 
 will not press any particular part of it on your attention. You alone are 
 the judges of its weight and tendency, and I feel that I should not be 
 discharging my duty fairly to the public if I were to press unnecessarily 
 any portion of those facts, evidence in support of which will now be offered 
 to your judgment. 
 
 Henry Atwell, the approver, was then called and examined by Mr. 
 BODKIN. In reply to questions he said I am at present a prisoner 
 in Newgate under sentence of transportation for life. I was con- 
 victed for forgery, with a prisoner named Hardwicke. I know both the 
 prisoners at the bar. I first became acquainted with Saward and was 
 introduced to Vn'm by a person named Saunders, a smith, who lived in the 
 Old Street Road. That is about twelve or thirteen months ago. I at that 
 time had a parcel of cancelled cheques and three blank cheques in my posses- 
 sion. They were part of the produce of a burglary which had been 
 committed. The cheques were drawn by a person named Doe upon Barclay's 
 bank. I had some conversation with Saunders about these cheques, and, by 
 his appointment, I was introduced to Saward, to whom I showed them. 
 He asked me if I knew where they came from, and I told him, and after- 
 wards went and showed him where Mr. Doe lived. When I showed him 
 Mr. Doe's premises he said it was a small place, and he was afraid they 
 would not get much out of it. I afterwards met Saward by appointment 
 in the New Eoad, when he brought the blank cheques filled up. He asked
 
 TACTS, FAILUBES, ASD FBAUDS. 5S1 
 
 me if I did not think the forged signatures to the cheques were a capital 
 imitation of the original ? I compared them with the cancelled cheques and 
 said they were very good tho cancelled cheques were then destroyed. The 
 cheques now produced for 46 15*. 6d. and 95 17*. 6d. are the two cheques 
 I saw upon that occasion. I afterwards went to Leman Street, White- 
 chapel, and was introduced to Anderson, who Saward said was his "sender," 
 and who had lodgings there. After a short conversation in the street 
 Anderson went in to see a young man who had advertised for a situation, 
 and whose advertisement he had answered. I saw the young man there ; 
 his name was Draper. It was the same young man that I see now in court. 
 That young man was sent to Barclay's with one of the cheques that 
 morning, and I followed him. lie got the money and came back with it 
 to Lcman Street, and gave it to Anderson. Afterwards Saward, Anderson, 
 and myself went to the Eastern Counties Railway. The gold we got from 
 the cheque was shared among five of us that is Saward, Anderson, and 
 myself, and two men called Tom and Fred. The notes were all given to 
 Saward. At tho Eastern Counties Railway we met a young man named 
 Brown, and Saward gave him the other cheque for 95. I followed Brown 
 as before, and saw lu'm, after getting the money, go over London Bridge, 
 instead of going back to the Eastern Counties Railway ; upon which I tapped 
 him on the shoulder, and said I thought he was going the wrong way ; when 
 he made some excuse about not meaning to be dishonest, and came back. 
 The money was given to Anderson. Afterwards Saward tried to dispose of the 
 notes. He was absent for about an hour, but then came back, and brought 
 some gold. He had sold the 10 notes for 8 10*. each. The whole money 
 was then shared among us. I got two shares for bringing the papers 
 (cheques), and I gave some to Saunders for the introduction to Saward. I 
 was then passing by the name of Hawkes, and Elizabeth Evans was living 
 with me as my wife. My aunt, Mrs. Haydon, used sometimes to call upon 
 me at my house in Cottage Lane. It was about two months after this 
 affair of the first cheques, that Saward called on me. I recollect the presen- 
 tation of a cheque on Smith Payne's. I saw Saward that day. He called 
 on me, and said he had "business" in hand, and asked me to join, which I 
 did. I saw some cancelled cheques in his possession, in the name of Ash 
 and Son, a forgery of one signature for 91, which appeared to be perfect. 
 I knew the cheques were the produce of a burglary. They were to be sent 
 to the bank as before, I following tho messenger. I went with Anderson 
 and Saward to a public-house in tho City Road, when Anderson was 
 dressed up in a wig as ho used to be. A young man, Humphries, came to 
 Anderson's lodging at Oakley Crescent, City Road, and was sent on an 
 errand, and then to the bank. I saw him present the cheque at Smith 
 Payne's. It was not paid, so I hurried back to prevent his meeting 
 the others. After that, Saward gave me a sheet of blank cheques at my
 
 582 FACTS, FAILURES, A>*D FRAUDS. 
 
 house in Cottage Lane, and told me to take care of them, as they would 
 come in very useful. Elizabeth Evans took care of them. Soon after that 
 I met Saward, who called on me, and told me he had a cheque-book of a 
 banker's in the Haymarket, and that they had taken lodgings, and -were 
 going to present some cheques, if I would follow the young men as before. 
 [A young man, named Powell, was here called into court, but the witness 
 said he could not be sure as to his identity.] That was accordingly done, 
 on three occasions. I afterwards saw Saward near Shoreditch Church, 
 and he told me he had got up a bill of exchange for 381 17*. 6cl., pur- 
 porting to be drawn by Jennings and Co., on Samuel Dobree and Co., 
 merchants, of Tokenhouse Yard, and made payable at Hankeys'. That 
 bill was sent by Anderson, who was disguised as usual, from the Hackney 
 Eoad, by a young man named "Wyzzell. I followed him to the bank, and 
 saw that the bill was not paid. I saw Saward write something upon the 
 bill just before it was sent. I think it was the date on w r hich it would 
 become due. In consequence of aa arrangement between Saward, Ander- 
 son, and myself, I took an I O U for 30 to Mr. Turner, a solicitor in Eed 
 Lion Sauare, to instruct him to recover the money due on it, in order that 
 we might get his cheque. I was to give the name of " Hunter," so that 
 Saward might be able to imitate the writing in filling up the cheque for 
 100. Letters were to be addressed under the name of " Hesp" to Ander- 
 son's lodgings in the 2vew Eoad. My brother took the money to Jlr. 
 Turner's when he wrote for it, and in a few days afterwards I called on ilr. 
 Turner, and his clerk gave me the money in cash. Saward said that that 
 could not be helped for once. About that time Saward introduced Hard- 
 wicke to me as an old friend of his who had just come from Australia. 
 Saward, Anderson, and myself went and met Hardwicke in Farringdon 
 Market, and, after some conversation as to getting more "papers," we 
 arranged to meet again the same evening at a public-house in S'outh- 
 wark. We called that house the "Beef-house," as the landlord once 
 sent for some cooked beef for us, as he had nothing in the house for 
 us to eat. "\Ye used often to meet there. On one occasion Hard- 
 wicke showed some papers he had brought from Australia. They were 
 blank forms of bills, which he said might be used for forgery. They 
 were ail given to Saward, who afterwards filled them up one for 1000, 
 and another for 900. I saw the former bill for 1000 on the morning it 
 was presented. [The bills were handed in, and read by the clerk of the 
 court.] About that time I was at a hatter's in Bread Street, Cheapside, 
 with Anderson and Hardwicke, when a young man came in, and said he 
 was out of a situation and wanted one. Hardwicke followed and spoke to 
 him, and afterwards told Saward that the young man was a likely young 
 fellow to present cheques. The young man was named Clements. He 
 was written to that evening, and Anderson took a lodging in the Kiugsland
 
 FACTS, TAILUnES, AKD mATTDS. 583 
 
 Boatl, under the name of Rielev. On the morning the bill was presented 
 we all met at a public-house in the neighbourhood. The young man. 
 Clements, who had been written to, was sent to get change at tho bank for 
 a 20 note, and to bring in two 10*. bill-stamps, which was done. One of 
 those stamps was put on the back of the 1000 bill by Saward, who wrote 
 the name Kieley and his address across it. I took the other stamp myself. 
 Anderson then took the bill, and, disguised as usual, gave it to Clements, 
 with whom I rode down to the City in a 'bus. Clements did not know 
 me. I saw him go into Ilaywood's bank with the bill. Saward waited 
 under the clock in Lombard Street. I went into the bank, and saw that 
 the money was stopped, and returned immediately and told Hardwicke 
 and Saward, and we all went to tho public-house in Bishopsgate Passage, 
 where we told Anderson, who was waiting, and then separated. After- 
 wards we went and tried Mr. Turner again with another I O U. There 
 were BO many names used, I can hardly recollect the name of the supposed 
 debtor on that occasion, but I think it was Hart. Anderson took his lodg- 
 ings in St. Pancras Road. I still kept the name of Hunter, and in a few 
 days after the application, Hardwicke paid 100 to Mr. Turner for the 
 supposed debt, for which I called, and got a cheque upon Gosling and 
 Co., which I gave to Saward. In about an hour and a-half, Saward re- 
 turned the cheque back to me, at a public-house in Lincoln's Inn, telling 
 me that he would soon have some blank cheques, which had been got from 
 Mr. Turner's pocket-book by robbery. The person who had those blank 
 cheques was with us that morning, but had not the cheques with him. He 
 is not now in custody. About that time, several letters were written in 
 answer to advertisements for situations, and Anderson took another lodg- 
 ing, under an assumed name, in Mornington Crescent. Soon after, Saward 
 produced a forged cheque for 410 7s. 4d., purporting to be drawn by Mr. 
 Turner. Anderson took the cheque, and gave it to a young man named 
 Hardy to take to the bank. I followed him, and saw him get tho money, 
 and on his return to Mornington Crescent, Anderson met him, and took 
 the notes and gold. We then went to the Blackfriars Road, to a coffee- 
 house, to look for Hardwicke, to whom we disposed of eight 50 notes* 
 which we had received for tho cheque. He gave 35 each for them'. The 
 money was shared equally, and a sliaro given to the person not in custody, 
 for the blank cheques he had stolen from Mr. Turner. I afterwards went 
 with Hardwicke to Hamburg, where we changed the 50 notes. About 
 tlas time Hardwicke received a cheque from some one whose name I do 
 cot know, and he showed it to Saward, who said he had some blanks that 
 would fit it nicely. Afterwards Saward produced some cheques, one of 
 widen was for 50, and he asked Anderson to take it to tho White Hart, 
 and send the "boots" there for tho money. Wo subsequently arranged 
 Low it should bo done at the Magpie in Bishopsgato Street, and I followed
 
 TACTS, FAILTJItES, ASD PEAUDS. 
 
 the messenger to the bank, and followed him back to the Magpie, where 
 Anderson and Saward were waiting when we returned. The money was 
 paid in three 10 notes, and the rest in gold. I changed the notes for 
 Napoleons in Lombard Street. Another cheque for 100 was then given 
 to Anderson to send from the Four Swans. That money was also paid, 
 and Saward took the largest share, on account of his getting the blank 
 cheques. We arranged to send another cheque for 100 next day from 
 Gregory's Hotel, in Cheapside. I followed the messenger (Saunders) 
 now in court to the banker's. Hardwicke gave me 50, so that if the 
 cheque was stopped, and I was asked what business I had in the bank, I 
 was to say I came to pay in the 50 to the credit of some one hi the 
 coxvntry. The third cheque was not paid, and I returned to Saward and 
 Anderson immediately, and told them of the fact. Soon after this, I went 
 to Yarmouth. Saward was aware of my going there. Hardwicke went 
 down about a week before I did. He had a small cheque upon a banker 
 then. Hardwicke passed under the name of Ealph, and I went under the 
 name of Attwood. I went to several solicitors, and employed them to 
 write for supposed debts, as we had done with Mr. Turner. Among others 
 we went to were Reynolds and Palmer, Chamberlain, Miller and Son, and 
 Preston. The persons by whom the supposed debts were owing, were 
 represented as living in London. I received the written applications about 
 the debts from Saward. We then came up to London, and I paid in some 
 money on account of the supposed debts, to a branch of the Royal British 
 Bank in Threadneedle Street ; and Anderson, I think, also paid in some 
 money for the same purpose, into Barclay's. The letters produced are in 
 Saward's handwriting. They are the answers to the solicitors' applications 
 for the supposed debts. On the day we came up we all dined together 
 Anderson, Hardwicke, Saward, and myself and shortly after that I was 
 taken into custody. 
 
 Both prisoners having declined to put any question to this witness, 
 William Salt Hardwicke was the next witness called, and examined by 
 Mr. SLEIGH. He said I am a prisoner in Newgate, under sentence of 
 transportation for life for forgery. Before this last charge I was transported 
 for ten years for a felony at Brighton, of which, however, I was not guilty. 
 After my sentence, I established myself in business in Australia, and after- 
 wards returned to England. I have known the prisoner Saward about 
 twenty or twenty-six years. I knew him well before the felony at Brighton. 
 Exactly this day twelvemonths I took my passage home from Melbourne, 
 with my wife, and arrived in England about the end of May, and took 
 lodgings in Nelson Square, Blackfriars Road. Soon afterwards I met 
 Saward in Suffolk Street, and he asked me how long I had been in Eng- 
 land, and why I had not called upon him. I said I had not been long 
 home, and had no wish to call upon him, as I thought he had treated me
 
 FACTS, FAILTJBES, AXD FBAUDS. 535 
 
 so badly. He said I was not to mind that, as he would soon put n:o in a 
 way of getting back my passage-money. Eventually, I agreed to meet 
 him, and did BO next day by appointment. He said he would introduce 
 me to the parties he was then working with, and so I became acquainted 
 with Anderson and Atwell. We used to meet at a public-house which we 
 called the "Beef-house." When I came from Australia, I brought some 
 bills with me. I had one genuine bill for 200 upon Kennard and Com- 
 pany. I showed some blank bills to Saward at the "Beef-house," and he 
 said he thought a good deal might be done with them. He took away the 
 genuine bill and the blank forms, and the next day he returned me the 
 genuine bill, and said he had done what ho wanted with it. It was then 
 arranged that I was to find all the money that was necessary, and that 
 a forged bill should be presented through the medium of Anderson, 
 who was known as the sender. I was present when the young man 
 Clements went into the hatter's shop, and I obtained his addresss, and 
 it was arranged that he should be applied to and employed to pre- 
 sent the forged bill. A lodging was taken by Anderson, where he was 
 to meet the young man Clements, and he disguised himself by putting 
 on a wig before we met him. We all went to a public-house on the 
 morning the bill was presented, and I gave a 20 note to Saward, and I 
 saw him write a name upon it. This witness then proceeded to narrate the 
 particulars of what was done when Clements brought back the change of 
 the 20 note and the 10*. stamps, giving exactly the same account of the 
 transaction as that given by the witness Atwell. He also said that he was 
 in the bank when the 1000 bill was presented, and he saw the clerk about 
 to hand the bank-notes to Clements, when a sudden thought seemed to 
 strike him, and he looked at the bill again and returned the notes to the 
 till, and the messenger and the bill were detained. The witness then went 
 on to give an account of all the other transactions that had been referred 
 to by the witness Atwell, in nearly the same terms as were used by that 
 witness, and he confirmed the evidence given by him with regard to all 
 these transactions. He said that he was present when the forged cheque of 
 Mr. Turner for 410 was paid by the clerk, and he directed his attention 
 from the cheque at the tune it was presented by making some inquiries about 
 a dishonoured bill, and he subsequently gave 35 for each of the 50 
 notes, and the money was divided between them. It is not necessary to 
 give any more of the evidence of this witness in detail, as it was merely a 
 recapitulation of the statements made by the previous witness. He said 
 that when he went to Yarmouth he assumed the name of James Ralph, 
 and he made an arrangement tliat the letters addressed in that name should 
 be received at the Chapter Coffee-house, in Paternoster Row, and that they 
 should be delivered to the prisoner Saward. The witness also prove I th;it 
 he paid in 250 at Messrs. Barclay's to be remitted to Yarmouth. He
 
 586 I-ACTS, FAILURES, A2TD TEAUDS. 
 
 paid it in in the assumed name of Whitney, but omitted to say it was to 
 be paid to the order of James Ralph, at Yarmouth, and the bankers, in 
 consequence, refused to pay it except to the order of Whitney, and before 
 the matter coiild be set right he -was taken into custody. He wrote to 
 Saward before this to inform him of the difficulty that had arisen, and a 
 letter was written by him in reply, which he identified as the one now- 
 produced. 
 
 The prisoners put no questions to this witness. 
 
 Mr. Stubbs deposed that the prisoner Saward had lodged in his house 
 for several years, and he stated that some of the letters that had been 
 produced resembled the handwriting of the prisoner, to the best of his 
 bsh'ef. He could not, however, give a positive opinion upon the subject 
 with regard to some of them. With regard to other portions of the 
 documentary evidence he stated positively that they were the handwriting 
 of the prisoner Saward. 
 
 The following letter, written by Saward to Hardwicke, at Yarmouth, 
 was then put in and read : 
 
 "My dear friend, I did not write on Saturday because I expected to- 
 day to have been able to have rectified your unfortunate mistake. Mr. 
 Roberts (the name Anderson was known by) attended again this morning 
 at B.'s (Barclay and Co.'s) to have their determination under the circum- 
 stances. It is this : That lur. Whitney must attend himself at B.'s, and 
 explain the matter, and sign a fresh note with his name, the same as he 
 signed the paying note (the writing being the same, of course, by compa- 
 rison) ; they will then send the fresh note as instructions for G.'s (Messrs. 
 Gurney of Yarmouth) to pay to J. R. (James Ralph). The paying-in note 
 has been sent to Gurney' s, and they have it. They would not show it to 
 Mr. Roberts when he applied there on Saturday last, but said that Whitney 
 had paid it in to his own credit. Now, I considered the matter seriatim 
 yesterday, and you must do this literally, just as I state it : Go to G.'s, 
 ses the paying-in note mind, you must see it state you have written to Mr. 
 WLitney and he will rectify it at Barclay's, and you will call upon them 
 again in a day or two. Come up directly. Go to B.'s, write a fresh note 
 for them to send to G.'s, and then return, and you will get the cash. Pray 
 do not move further in other matters until this is arranged. I beg of you 
 not to do so. I can see through a brick wall sometimes I see through 
 one now. Be guided by me, for I am generally secure by caution. Mr. 
 Roberts told B.'s this morning that he thought Mr. Whitney had gone on 
 a tour of pleasure up the Rhine, but he did not know positively. They 
 said they could not help that. If you can accomplish what you have to do 
 ws will meet you to-morrow night at nine o'clock at the beef-house, but if 
 we do not see you there at that time we will meet you the next day, Wed- 
 nesday morning, at twelve o'clock, where we had the chops when you were
 
 FACTS, FAILUEES, AlfD FRAUDS. 587 
 
 up on Thursday. Now, lastly, make no move in other matters until thia 
 is arranged. I have written fully, but I hope you will not think it a bore 
 reading it. Your faithful friend, " J. 
 
 "As wo can't see the note, and they will give no positive information as 
 to it, you must see it and know its exact import, or the cash may remain 
 longer in jeopardy. You must come xip directly." 
 
 Mr. J. B. Doe, an ironfounder hi \Vhitechapel, deposed that he kept an 
 account with Messrs. Barclay and Co. About Christmas, 1855, his pre- 
 mises were broken open, and among articles stolen were some cancelled 
 cheques and some blank cheques. He also proved that the two cheques 
 now produced were filled up on the blank cheques that were stolen, and 
 were both forgeries. 
 
 Mr. Duddson proved that ho was clerk to Messrs. Barclay and Co., and 
 that he paid one of the forged cheques referred to by the last witness for 
 : . Gd. 
 
 Mr. H. M. Nesley, another clerk, proved tliat he paid the second forged 
 cheque. 
 
 Draper, the young man referred to in the evidence of Atwell, proved 
 that he received a letter from a person named Davis, in answer to an ad- 
 vertisement he had inserted for a situation, and he saw the prisoner Ander- 
 son in Leman Street, and he gave him a cheque to present at Messrs. Bar- 
 clay's, the bankers. He took the cheque and received the money, and gave 
 it to Anderson. 
 
 Mary Anne Smith proved that Anderson hired the room in Leman 
 Street, Whitechapel, under the name of Davis. He only came for an hour 
 or two on three successive days and then left, and she saw no more of him. 
 
 Edward Brown, another young man who had advertised for a situation, 
 proved that ho was sent by Anderson to Barclay and Co.'s with a cheque 
 for 'J5 17s. GJ., and he obtained the money. As he was returning, a 
 young man tapped liim on the shoulder and asked him if he was not 
 going the wrong way, and he turned back. He was merely going to make 
 some inquiry relative to his character at the time he was stopped. Atwell 
 was the person who stopped him. He afterwards gave the money he re- 
 ceived to Anderson. 
 
 Elizabeth Evans proved that in the early part of last year she was living 
 with Atwell as his wife at Cottage Lane, City Road, and that the prisoner 
 Saward frequently came there to see Atwell. Upon one occasion elie said 
 she saw Saward produce some papers from his pocket that resembled 
 bankers' cheques in size and appearance, and some cheques were afterwards 
 given to her by Atwell to take care of, and she identified some that were 
 now produced as the same that were so given to her. 
 
 Elizabeth Hay don, the aunt of Atwell, proved that she had also seen 
 Saward at her nephew's house, and she had seen them conversing, and once
 
 588 TACTS, TAILUBES, AND FEATJDS. 
 
 when they were together, she observed a roll of papers on the table before 
 them. 
 
 Mr. C. F. Ash, a timber merchant in Upper Thames Street, proved that 
 his premises were broken into last year, and that some cancelled and blank 
 cheques were stolen, with other articles. The cheque for 91 that had been 
 produced, was drawn upon one of the cheques so stolen, and it was a 
 forgery. 
 
 James Humphries, another young man who had advertised for a situa- 
 tion, proved that Anderson sent him to Messrs. Smith, Payne, and Co., 
 with the cheque for 91. The cheque was not paid, and he saw no more of 
 the prisoner until he was in custody. 
 
 Andrew Stevens, clerk to Messrs. Bramah and Co., proved that the firm 
 kept an account with Messrs. Ransom and Co., and that these cheques that 
 were produced were forgeries. They had been paid by the bank. 
 
 One of the cashiers from Messrs. Ransom's proved that the cheques 
 referred to by the last witness were paid by the bank. 
 
 Henry George Vowels, another person who had advertised for a situa- 
 tion, proved that Anderson, who passed by the name of Bates, answered 
 his advertisement, and sent him to Messrs. Ransom's with a cheque for 
 47 16*., and he received the money and handed it to the prisoner. 
 
 John Wyzell gave similar evidence with regard to a bill for 387 16s. lOc? . 
 upon Messrs. Hankey and Co. The bill was not paid, and he was detained, 
 and when he returned to the place where he had seen the prisoner Ander- 
 son, he was not to be found. Anderson, upon this occasion, went by the 
 name of White. 
 
 Mr. T. Grey, a clerk in the firm of Messrs. Dobree and Co., merchants 
 of Tokenhouse Yard, proved that the acceptance to the bill referred to was 
 a forgery. 
 
 Mr. W. Inkersall proved that the acceptance, "Kennard and Co.," to 
 the 1000 bill was also a forgery. 
 
 John Clements proved that he was looking for a situation in June last, 
 and applied at a hatter's in Cheapside, and when he came out Hardwicke 
 accosted him, and he afterwards went to an address in the Kingsland Road, 
 where he saw the prisoner Anderson, who passed by the name of Rieley, and 
 after some conversation he gave him a 20 note which he was to get changed, 
 and to buy two 10s. stamps, and he did so, and gave them and the change 
 to the prisoner. Anderson afterwards gave him the forged bill for 1000, 
 and he went to Messrs. Heywood's with it, and he was detained, and saw 
 no more of the prisoner till he was in custody. 
 
 Mr. W. T. Nicholls, cashier at Heywood and Co.'s, said he remembered 
 the 1000 bill being presented. He had partly paid it, when some mis- 
 givings crossed him, and he stopped the bill and the person who had 
 brought it.
 
 FACTS, FAILURES, AND FRAUDS. 589 
 
 By the CorRT. The first part of tho signature was very much like the 
 genuine one, but the latter part was not so good. It alao required to bo 
 paid in 100 gold, eight 50 notes, and five for 100, and this struck him 
 as being rather an extraordinary mode for a private person to receive such 
 an amount, and the circumstance excited his suspicion. 
 
 Mrs. Davis, the landlady of the Sussex Arms public-house, in Do Beau- 
 roir Road, Kingsland, proved that on tho day the 1000 bill was presented 
 four persons were at her house, but she could not say positively who those 
 persons were. She had on other occasions seen Saward, Anderson, Atwell, 
 and Hardwicke at her house, but not all together. 
 
 Mr. Wilson, clerk to Mr. Turner, the solicitor, proved that Atwell 
 applied to him to recover a debt from a person named Hesp, and that the 
 usual proceedings were taken, and 30 were paid, which sum he handed 
 over to Atwell. He also proved that a similar proceeding took place with 
 reference to a supposed debt of 103, and ho afterwards gave a cheque to 
 Atwell for the amount. 
 
 Mr. Turner proved that in March last he was robbed of his pocket-book 
 while walking along the street, and that it contained some blank cheques. 
 The cheque for 410 7*. was drawn upon one of those cheques, and was a 
 forgery. 
 
 Evidence was then given that Anderson had represented the persons who 
 were supposed to have owed the money to Atwell, and that he received 
 the letter written by Mr. Turner, making application for the amounts. 
 
 A clerk from Messrs. Gosling and Co.'s proved that he paid the cheque 
 for 410, and that Ilardwicko was in the bank at the time, and put some 
 questions to him. 
 
 Hardy, another young man who had advertised for a situation, proved 
 that Anderson, under the name of Taylor, sent him with the cheque for 410, 
 and told him to get eight 50 notes, and the rest in gold. He obtained 
 the money and gave it to the prisoner. 
 
 Evidence was then given as to the payment of the two cheques, pur. 
 porting to be drawn by Mr. Baldwin for 100 and 50 at Messrs. Hankeys'. 
 A third cheque was presented a day or two afterwards, but this was not 
 paid. 
 
 Mr. Daniel Baldwin, of the firm of Smith and Knight, railway contrac- 
 tors, said it was his duty to sign the cheques of the firm, and that those 
 now produced were forgeries. 
 
 The boots and porter of the Four Swans and the White Hart, Bishops- 
 gate Street, proved that they presented the two cheques for 100 and 50 
 at Messrs. Hankeys', and that they handed the money to the prisoner An- 
 derson. 
 
 Mrs. Diion proved that she was cousin to Hardwii ke. She said that 
 she knew the prisoner Saward as Mr. Sharp. (A laugh.) After she had
 
 590 FACTS, FAILTTEES, A^D FRAUDS. 
 
 heard of Hardwicke being in custody, Saward came to her house and in- 
 quired if she had seen anything of Hardwicke, and she told him that the 
 officers had searched Hardwicke's apartments in Nelson Square. He ap- 
 peared very much surprised, and asked her if she knew what he was detained 
 in Yarmoiith for, and at the same time said there was nothing of any con- 
 sequence there, but there was no knowing what it might lead to. He then 
 asked if there were any letters there for Mr. Hardwicke, and she gave him 
 two letters, and he burned them, and said, that if any one inquired if any 
 letters had been left there for Mr. Hardwicke, she was to say that somo 
 letters had been left, but that a lady had called for them. 
 
 Samuel Cole, barman at the Magpie public-house, Bishop?gatc Street, 
 proved that Saward was at that house during the greater part of the day on 
 which the two forged cheques for 100 and 50 were presented. Ander- 
 son and Hardwicke were with him during some part of the time. 
 
 Mr. E. J. Wirnbush, the landlord of the Magpie, gave similar evi- 
 dence. 
 
 A number of witnesses were then examined to show that the prisoners 
 and Hardwicke and Atwell had been repeatedly seen together, and also that 
 Anderson had engaged different lodgings in false names, and that he had 
 obtained possession of the letters that were sent by the different attorneys 
 at Yarmouth applying for the fictitious debts claimed by Atwell. 
 
 Mr. Morris, a clerk at Messrs. Barclay's, proved that on the llth of 
 September Hardwicke paid in a sum of 250 hi the name of Whitney, to 
 be transmitted to Yannouth through then* agents, Messrs. Gurney. A 
 few days afterwards Anderson made an application respecting the money, 
 and wished that it should be paid to a person named James Ralph, at Yar- 
 mouth, and he said that Whitney had gone to Germany. 
 
 John Moss, a City police-officer, deposed that on the 26th of Decem- 
 ber he went to an eating-house in John Street, Oxford Street, accompanied 
 by Huggett, another officer, for the purpose of looking after the prisoner 
 Saward. He inquired for Mr. Hopkins, and was told that he was just gone 
 out, and that he would be found at a public-house in Oxford Market. 
 Huggett went to the place indicated and witness remained behind, and in a 
 short time he observed a door in a room of the back opened very gently, 
 and he immediately went in and found the prisoner Saward in the room. 
 He said to him, "Mr. Hopkins, I have been looking for you ;" and he re- 
 plied, " My name is not Hopkins." Witness said, " No, I believe it is not 
 it is Saward." The prisoner replied, that he was mistaken. Witness 
 then told him that he charged him with being concerned with two other 
 persons, named Hardwicke and Atwell, in forging a bill of exchange for 
 1000, and that he must go to the City with him. The prisoner replied 
 that he knew nothing about it. By this time Huggett, his brother officer, 
 had returned, and they were about to leave, when the prisoner wished to go
 
 FACTS, FAILURES, A2H) FRAUDS. 591 
 
 to the water-closet. Witness told him he might go, but ho must search 
 hi first, and he did so, and found two blank cheques upon the St. .! 
 branch of the London and Westminster Bank in his possession. When ho 
 took them from him the prisoner said, " Oh, they are nothing, destroy them." 
 After this the prisoner expressed no desire to go to the water-closet. As 
 they were going along in the cab the prisoner said, " Well, I suppose it is 
 no use holding out any longer, I am Jem Saward." 
 
 Saward here asserted that ho never made use of this expression, and said 
 that all along he had emphatically denied haying done so. 
 
 Huggett, the other officer, corroborated the evidence given by Moss, 
 and this concluded the case for the prosecution. 
 
 The prisoners did not put a single question to any of the witnesses, and 
 wh.cn they were asked if they wished to make any defence, they both 
 replied, that they had nothing to say, Saward adding that he left himself 
 entirely in the hands of the Court. 
 
 The CHIEF BABON then summed up, reading over carefully the evidence 
 given by the witnesses Hardwicke and Atwell, and pointing out where 
 they were confirmed by the other witnesses. 
 
 The jury were only in deliberation five minutes, and they then re- 
 turned a verdict of Guilty against both prisoners. 
 
 Sir F. THESIGEE said he was instructed by the Bankers' Association, who 
 were the prosecutors, to state on behalf of Anderson that there was reason 
 to believe he had been made a tool of others, and also that he had given 
 important assistance in getting up the prosecution. 
 
 The CHIEP BAEO>" said he should postpone passing sentence until the 
 next day. 
 
 CCTTBAI CsnirsAi, COURT, March. 6, 1857. 
 
 To-day James Townsend Saward and James Anderson, found guilty 
 on Thursday of forgery to a largo extent on the metropolitan banks, were 
 placed at the bar to receive sentence. 
 
 Both prisoners presented a very dejected appearance, particularly 
 Saward, who held his head down during the whole of the Chief Baron's 
 address to them previous to passing sentence. 
 
 On being placed at the bar, 
 
 The Clerk of Arraigns called on each of them, and said You are con- 
 victed of forgery. Have you anytliing to say why the Court should not 
 proceed to pass sentence upon you ? 
 
 Saward. Before your Lordship passes sentence in my ease, I humbly 
 ask you to defer it till next session. I have no objection to make of the 
 verdict on the evidence adduced, or of the impartial, just, and impressive 
 umming-up of your Lordship j but I make the application under the
 
 592 FACTS, FAILUBES, AXD 
 
 following circumstances : I ask at your Lordship's hands to be shown a 
 little consideration, in consequence of my unfortunate and defenceless posi- 
 tion ; and perhaps your Lordship will have the kindness to order that a 
 copy of your Lordship's notes on the evidence of certain witnesses which I 
 will name, shall be lodged with the Governor of Newgate, to be made such 
 use of as I may be hereafter advised. 
 
 The CHIEF BARON. Your request is entirely novel. I never heard in 
 the whole of my experience, nor have I met in the whole course of my 
 reading, of such an application being made, founded on no grounds what- 
 ever. 
 
 Saward. My position is a most unfortunate one. 
 The CHIEF BAEOX. You do not state for what object you want niy 
 notes of the evidence. 
 
 Saward. My reason is, that I consider much of the evidence received 
 yesterday was inadmissible. 
 
 The CHIEF BABOX. Then the proper course for you to have pursued 
 was to have objected yesterday to its admission. I thought the whole of 
 the evidence was admissible. It was the subject of continual consideration 
 in my own mind, and its admission was frequently the result of the joint 
 opinion of myself and Mr. Baron Bramwell, whose aid and assistance I 
 have had on this occasion. I was myself very careful not to admit any- 
 thing that did not appear to me to be evidence. I objected at first to the 
 admission of certain matters, but, after consideration, they appeared to me 
 to be admissible, and I admitted them. You do not now state any grounds 
 for your application, except that you want the notes. You do not state 
 what objection you have to take, and it appears to me that you only want 
 them to have ah opportunity of finding out some objection. 
 
 Saward. Just so, my Lord. I was not aware until yesterday morning 
 that I should be undefended. 
 
 The CHIEF BABON. I can be no party to your application founded on 
 that objection. The appointment for the trial was made, and the arrange- 
 ments concluded, as early as Saturday last. You are perfectly aware that 
 you ought to have made such an application earlier, or, at any rate, that you 
 ought to have made application on affidavit, prepared by an attorney, and 
 which should have stated why you were not prepared with counsel. I think 
 you are quite as well circumstanced now as you would have been had such 
 an application been made. 
 
 Saward. The briefs were prepared yesterday, but unfortunately I could 
 not get the money in time. 
 
 The CHIEF BAEON then proceeded to pass sentence in the following 
 terms : James Townsend Saward and James Anderson, you are to receive 
 the judgment of the Court, founded on the verdict of the jury delivered 
 yesterday, which pronounced each of you to be guilty of the offence*
 
 FACTS, FAILURES, AND TBAUDS. 693 
 
 charged in the indictment, that of forging and uttering, on the 18th of 
 August last year, uii order for the payment of 100, which order was 
 described in various counts of that indictment also as a cheque. The trial 
 lasted many hours. Much evidence was given, and much which in one sense 
 might be considered somewhat unusual, and which I pointed out to the 
 attention of the jury in summing up the case last night. It is not usual 
 in the administration of the criminal justice of this country to have more 
 than one crime proved at a time against one person charged with many, 
 but, as I then stated, and think it right again to state, for the purpose of 
 making out a guilty knowledge by any person included in the indictment, 
 it was necessary to prove the commission of crimes, and the rule that 
 excludes evidence of the commission of other crimes, for fear of creating 
 prejudice against a prisoner, ceases, and it then becomes the imperative 
 duty of the judge to admit that sort of evidence which otherwise he ought 
 to reject. The case against you, made out yesterday, presents one of the 
 most astonishing and alarming instances of crime that it has been my mis- 
 fortune to witness on any occasion since I have been a judge, and I am not 
 aware that the history of the criminal justice of tliis country presents any 
 case more formidable than that which was disclosed by the evidence adduced 
 against you yesterday. It is a maxim in the administration of the criminal 
 law, that combination renders crime more mischievous and alarming, and 
 that it calls for greater severity of punishment than when a crime has been 
 the single act of one individual ; and there never was a clearer specimen of 
 the proof of the propriety of that practical maxim than appeared yesterday 
 in the evidence against you. It was made out to the satisfaction of the 
 jury, and to my entire and perfect satisfaction, that there had existed for 
 many months, possibly for many years, a combination, of which you, 
 James Townsend Saward, were a party, by which the crime of forgery was 
 to be committed by a combination of parties, all of them involved in the 
 same guilt. With the assistance of a person unconscious of the crime he 
 was furthering innocent, so far as any intention on his part was concerned, 
 altogether of the offence, but, by extraordinary ingenuity and contrivance, 
 made not a reluctant, but a ready assistant in the crime by such means as 
 these, it is made perfectly clear that, in a great many instances, crime was 
 successfully perpetrated with perfect success and security, and for a long 
 period the guilty escaped the justice of the country. This scheme appears 
 to have been carried out, by a strange connection with burglars and pick- 
 pockets, to obtain blank cheques and cancelled cheques, and where the 
 latter could not be obtained recourse was had to fictitious actions, whereby 
 the writing of the party was obtained by his cheque being given for the 
 amount recovered, and thus facilities were obtained for imitating his liand- 
 writing. At length an accident gave a clue to the whole matter, it was 
 brought forward for public investigation, and then the whole truth became
 
 594i FACTS, FAILURES, A^D TKAUDS. 
 
 manifest. It was then distinctly proved that you, James Anderson, 
 inveigled innocent persons, as I have described ; and you, James Towns end 
 Saward, actuated by that caution in -which you apparently prided yourself, 
 freely communicated with those men who were stamped with the character 
 of felons, and who could scarcely be credible witnesses against you. 
 Tou cautiously kept out of the way when cheques had to be presented or 
 money to be paid or received ; but it so turned out that the proceedings of 
 some of the party at Yarmouth and Norwich were discovered, and there 
 could be no doubt that the letters were in your handwriting, as well as the 
 writing on the forged documents. It is impossible to donbt the truth of 
 the statements made yesterday by Atwell and Hardwicke, however 
 unworthy of credit they may appear to be from the crime which stains 
 their past life and character, that you both were parties to the entire scheme 
 of sending forth to the world the cheques and bills that were produced 
 yesterday, at the bottom of which scheme you, James Townsend Saward, 
 were probably the most conspicuous. Formerly, there can be no doubt 
 but that each of you would have expiated your crime by an ignominious 
 death. I rejoice, however, that I have not to pass that sentence, but what- 
 ever the law holds out with a view to deter from such offences, appears to 
 me to be the just measure of punishment to persons who have filled up the 
 largest measure of crime. I was requested yesterday to take notice of the 
 case as regards one of you, with a view to a mitigation of the sentence, but 
 after full consideration, I feel bound not to listen to the appeal of Sir F. 
 Thesiger; and had the prosecution been conducted by the Attorney- 
 General, and had he made a similar application, I should have felt bound 
 not to comply with it, but to pass the full sentence, leaving it to the Exe- 
 cutive to consider and determine thereon. Should an application be made 
 to the Home Secretary, and I am applied to, I shall have much pleasure hi 
 giving it my careful attention. In the present state of the case, I can 
 make no distinction between the cautious person who, though privy to the 
 whole transaction, screens liimself, as far as possible, from being personally 
 mixed up with it, and the person who has acted as agent, but who has dis- 
 played a capacity for crime, and an ingenuity and an abundance of resource 
 for the purpose of committing that crime, worthy of a better cause, and 
 which would, in all probability, have produced wealth, and whatever might 
 have rewarded successful ingenuity, if it had received a virtuous, instead of 
 a criminal direction. I lament, with respect to you, James Townsend 
 Saward, that you must have been at one period of your life in circumstances 
 far different from those in which the Court has found you involved. It is 
 stated, and not denied, that you are a member of an honourable profession ; 
 and I deeply regret that the ingenuity, skill, and talent which has received 
 BO perverted and mistaken a direction, has not been guided by a sense of 
 virtue, and directed to more honourable and useful pursuits. I am called
 
 FACTS, FAILURES, AKD FRAUDS. 595 
 
 upon to pass sentence upon you, and, for the reasons that I have assigned 
 it is impossible for mo to stop short of the utmost limit to which the law 
 permits the punishment to proceed. Any mitigation that may accrue to 
 cither must come from a different source. The learned judge then passed 
 sentence of transportation for life on each of them in the usual terms. 
 The prisoners were then removed from the dock.
 
 590 FACTS, FAILURES, AND FRAUDS. 
 
 CHAPTEE XI. 
 
 THE LONDON AND EASTERN BANKING COEPOEATION THE 
 FEAUDULENT TRANSACTIONS OF COLONEL W. PETEIE 
 WAUGH AND ME. J. E. STEPHENS. 
 
 The Formation of the London and Eastern Banking Corporation Species 
 of Business conducted The Parties who took the Lead in the Trans- 
 actions The Character of Operations intended The Divergence from 
 the regular Path into personal Advances to the Directors and Managers 
 The Prominent Parties in these Affairs were Colonel W. Petrie 
 Waugh, a Director, Mr. Stephens, the Manager, and Mr. Black, the 
 Secretary The Absorption by the former of nearly the whole of the 
 Capital of the Bank The Decadence of Business, and final Liquidation 
 of Affairs Flight of Waugh and Stephens The Bankruptcy of the 
 principal borrowing Director and Manager The Bankruptcy of the 
 Bank, and the Order for Winding-up in the Court of Chancery. 
 
 SOME years since, there existed a joint-stock company instituted 
 for banking purposes whose seat of management was in Lon- 
 don, but the scene of whose operations was India, known as 
 the London branch of the Simla Bank. Its connection was 
 not extensive, but so far as it went it was respectable, and 
 generally supposed to be profitable, though probably not suffi- 
 ciently so, in consequence of the limited amount of its business 
 to meet the expectations of its proprietors. It occurred to 
 certain gentlemen, who were associated in, and acquainted 
 with, the circumstances of the institution, that by widening the 
 sphere of its action, and superadding to the Oriental connec- 
 tion an extended London business, that the one would serve 
 the other, and that a bank might be established upon the 
 metropolitan joint-stock principle, which would afford an ample 
 return for the capital invested, or at least provide lucrative
 
 FACTS, FAILURES, AND FRAUDS. 597 
 
 appointments and valuable patronage for the projectors and 
 their friends. 
 
 Towards the latter end of the year 1854 the scheme of the 
 London and Eastern Bank was first submitted to the public. 
 In whose individual mind the idea originated does not now 
 very clearly appear, and as it rarely happens that men are over 
 anxious to claim the parentage of that which eventuates in 
 failure, and failure brought about by fraud, it is not likely that 
 upon this point the world will ever be more enlightened than 
 it is at present. Nor, unless it could be shown that those who 
 were the original promoters of the company were the same 
 persons who afterwards, as directors and managers, helped 
 themselves to the funds of their co-proprietors and the custom- 
 ers of the bank, is this a matter of any moment. Suffice it 
 to say, that the project was favourably received. The prospec- 
 tus, which announced its coming advent and detailed the 
 special advantages it offered to investing capitalists, did not 
 claim the countenance or support of any great financial autho- 
 rity, nor did the published lists of directors, at any period of 
 its comparatively brief history, include persons whose expe- 
 rience in commercial matters, known business habits, success, 
 ful dealings, or ample resources, entitle them to weight and 
 influence in trading and monetary circles. But the plan of 
 the London and Eastern Bank was an attractive one, and it 
 was conceived at an auspicious moment, when the tide of 
 popularity in favour of banking investments had decidedly set 
 in. The success of the joint-stock principle, as applied to the 
 trade of banking in London, had been established beyond ques- 
 tion, and was confirmed by the liberal profits those institutions 
 periodically divided amongst their proprietors; and notwith- 
 standing that there had been one or two serious failures of 
 Oriental banks, banking in India was regarded as a mine of 
 wealth, which only required to be worked with ordinary abilitv, 
 combined with prudence and integrity, to produce large returns
 
 598 FACTS, FAILTJEES, AND FBAUDS. 
 
 to those who embarked in it. Applications for shares were, 
 under these circumstances, numerous, and no difficulty was 
 experienced in allotting them to a respectable and solvent pro- 
 prietary. For the most part the shares were taken up by 
 persons who evidently connected themselves with the company 
 1)onafide as an eligible mode of investment, and not as mere 
 speculators, and the adhesion, as contributaries, of several 
 officers of high position and character in both the military and 
 civil services of the East India Company, at once gave to the 
 concern a prestige of stability, which, but for the fraudulent 
 conduct of those who were unquestionably trusted with the 
 management, would in the end, no doubt, have commanded 
 public confidence, and conduced to permanence and prosperity. 
 
 In September, 1854, the deed of settleni3nt was executed, 
 and in January, 1855, the requirements of the Board of Trade 
 having been 'duly complied with, a charter of incorporation, 
 under the Joint-Stock Companies' Act of 1844, was granted ; 
 whereupon the company opened its doors, and commenced 
 trading under the high-sounding title of the " London and 
 Eastern Banking Corporation." It would appear that the 
 selection of a suitable manager was a matter which received 
 from the first directors all the attention which so momentous 
 a question demanded. Mr. J. E. Stephens was a shareholder 
 he had had some Indian experience was known to Lord 
 Gough and other Indian officers of high rank, for whom he had 
 transacted business was presumed to be well acquainted with 
 the Indian exchanges and, to some extent, possessed the ad- 
 vantage of Indian influence. 
 
 Placed in a position of so much responsibility and import- 
 ance, it would naturally be expected that Mr. Stephens should 
 lose no time in affording tangible proof, not only that he pos- 
 sessed the mental resources, the experience, and the svray for 
 which his co-directors had given him credit when they made 
 the appointment, but that he also had the energy to make
 
 FACTS, rAILTJUES, AKD iT.AVDS. 599 
 
 : valuable qualities available in bringing business to the 
 bank. The mode in which he, in conjunction with certain 
 other members of the board of management, proceeded for the 
 accomplishment of this object was singularly ingenious. 
 
 Amongst the earliest customers who presented themselves 
 at the counter, introduced by the manager, was the Letts' 
 "Wharf Timber and Sawing Mills Company, the sole partners 
 in which were Mr. Stephens, the manager, and Mr. Black, 
 the secretary, of the London and Eastern Bank. The kind of 
 business which this firm sought to transact with the bank was 
 a cash-credit upon their notes of hand. In his examination, 
 under the Scotch process of sequestration, by which, subse- 
 quently to the failure of the bank, he endeavoured to release 
 himself from his liabilities, Mr. Stephens admitted that the 
 entire capital with which this timber and steam-sawing 
 concern was carried on consisted of loans obtained from 
 the bank. Another customer, brought through the influence 
 of the manager, was the firm of Minter and Co., upholsterers 
 and invalid chair-makers of Soho. What the extent of their 
 transactions averaged, or represented, in the absence of the 
 bank books, can only be matter of conjecture ; but they appear 
 to have been precisely of the same character as those of the 
 Letts' "Wharf Company ; and the only partners in the firm were 
 the same, viz., Messrs. Stephens and Black, who in this case, 
 as in the other, introduced themselves in their character of 
 customers, to themselves in their respective capacities of bank 
 manager and secretary. Barwise and Co., watchmakers, of 
 Piccadilly, were also borrowing customers of the London and 
 Eastern, but here there was a slight change in the personnel of 
 the firm one of the co-directors of Mr. Stephens being subdti- 
 tuted for Mr. Black, the secretary, as the second partner. 
 
 How many other trading firms, in and out of London, Mr. 
 John Edward Stephens and his coadjutors in the direction 
 of the London and Eastern Banking Corporation, were en-
 
 GOO TACTS, TAILUEES, AND TEAUDS. 
 
 gaged in, and for which all the capital was supplied from the 
 same source, or what was the aggregate loss that entailed upon 
 the unfortunate shareholders of this mismanaged undertaking, 
 it is difficult to estimate ; but, taken altogether, the amount 
 sinks into insignificance when compared with the total abstrac- 
 tions and sacrifices occasioned by the fraudulent advances 
 which, by the assistance of the manager and certain other 
 members of the board, one of their body, Colonel Waugh, lately 
 the proprietor of Branksea Island, was enabled to obtain. 
 
 Looking at all the circumstances of the colonel's connec- 
 tion with the bank, it is difficult to come to any other con- 
 clusion than that he originally conceived the scheme, and 
 selected directors, manager, and secretary, all the arrange- 
 ments of the establishment seeming to be made by him to 
 suit his own special purposes. That Mr. Stephens was his 
 subservient and pliant tool, is beyond doubt ; and it is equally 
 clear, that if the speculations to which the funds subscribed by 
 the too confiding shareholders were by these two gentlemen 
 predestined, turned out successful, he was to receive an ample 
 recompense for his services. Mr. Stephens had not long been 
 installed in his office of manager before the following entry 
 was made in the minute-book: "The manager brought before 
 the board the wish of Colonel Waugh, of Branksea Castle, to 
 become one of the bank's connections, and stated that his 
 account would be a very large and profitable one for the bank, 
 as he intended to embark in large transactions as a clay and 
 brick manufacturer at Branksea : Resolved, that Colonel 
 "Waugh's wishes with regard to opening an account, and re- 
 ceiving business accommodation from the bank, be duly met." 
 That Mr. Stephens had a direct interest in promoting this 
 arrangement for credit accommodation, he explains himself. 
 He was a partner, and the only partner, with Colonel "Waugh 
 in the clay and brick works at Branksea Island, of which -the 
 colonel was the proprietor in fee-simple, the conditions of the
 
 FACTS, FAILURES, AND FBAUDS. G01 
 
 partnership being, that the colonel should find the land and 
 the clay, and Mr. Stephens should facilitate the necessary ad- 
 vances of capital to work it. It is true that Mr. Stephens 
 paid in to the account of the Branksea Clay Company one sum 
 of 250, at the commencement of the partnership operations, 
 which, he says, was all the money he contributed, and which, 
 to judge from the total amount of the numerous cheques drawn 
 by the Branksea Clay Company in favour of that individual, 
 must have returned him some thousands per cent, per annum. 
 
 Colonel Waugh having been accepted as a customer, the 
 character of " the large and profitable" account he was to keep 
 witli the bank soon became apparent. On the 22nd of March 
 he commenced operations by lodging his acceptance for dis- 
 count for the sum of 2630 ; upon the 23rd he drew cheques 
 on the credit of this bill for 775, which were duly honoured ; 
 and between that and the 28th he drew altogether to the 
 amount of 2779, having paid in out of the proceeds of these 
 drafts 300. Upon this same principle the transactions be- 
 tween the bank and the colonel proceeded from the beginning 
 to the end the bank advancing its hard cash for the colonel's 
 paper affording the means for taking up the acceptances 
 as they became due, by discounting other bills, etc., ad 
 inftnitum. True, this system of false discounts afforded the 
 manager the opportunity of parading in his periodical balance- 
 sheets an apparent profit, and gave the directors the sem- 
 blance of a justification in declaring a respectable dividend ; 
 but it was a profit that was figurative in every sense of the 
 word, and represented money only in so far as it measured 
 the price which had been paid to Colonel Waugh and other 
 members of the board for their patronage and custom. 
 
 In the May of 1855 he had increased his debt to 17,000, 
 and then it occurred to him and his friend the manager 
 that it would be advisable to increase his interest in the 
 concern by becoming a shareholder to a considerable extent.
 
 G02 TACTS, rAILTJBES, AST) FBATJDS. 
 
 Accordingly lie purchased sixty shares from Mr. Stephens, 
 paying for them by a loan from the bank of 3000. In 
 July he had become a debtor to the concern to the extent 
 of 50,000, and then he is considered by the board to have a 
 sufficient stake in the concern to qualify him for the direc- 
 torate ; and at the annual meeting which took place on the 
 16th of July, 1855, he was nominated and elected, taking at 
 the same time a transfer of 134 shares from a Mr. Griffith, a 
 previous director, who then retired, no doubt delighted at the 
 opportunity of leaving a concern which he could not have 
 been but convinced would, sooner or later, bring all who were 
 connected with it to ruin, and many of them to disgrace. As 
 a matter of course, with Colonel "Waugh's position as a director, 
 " his influence over the till" increased; and accordingly it seems 
 that when, in January, 1857, the books were made up to the 
 end of the previous year, there was a balance due from him 
 upon his own private account of 52,962, which was liquidated 
 in the usual manner by discounting his acceptance for that 
 amount, charging him with 1348 Qs. Qd. for the accommo- 
 dation, and setting that sum down in the books as so much 
 profit realized by the bank. Besides this he owed 98,000 on 
 borrowed notes, and 44,000 on a promissory note given in 
 discharge of an adverse balance on another account, the Bed- 
 dington estate fund, the Beddington estate being a property in 
 which his step-son, a Mr. Carew, was interested ; while in the 
 April following there were further acceptances standing against 
 him of Carew's, but which he had discounted at the bank, 
 amounting to 18,001). Here is a total of indebtedness in- 
 curred within twenty-five months of 213,000 by one man, 
 practically without any available security; and this amount, 
 during the very few remaining weeks that the doors of the 
 bank continued open, was increased to 244,000, or within 
 6000 of the entire subscribed capital of the company. 
 
 How long this system would have gone on, or what the
 
 PACTS, TAILUKES, AND FBAUDS. G03 
 
 extent . :' the rum in which the proprietors aud creditors of 
 the Loadou aud Eastern Banking Corporation might have 
 been involved, had no extraneous occurrence interposed, can 
 only be estimated by the extent of credulity which in public 
 companies the plausible statements of directors generally 
 command. But in September, 1856, an event took place 
 which excited alarm and consternation in the joint-stock 
 banking interest generally, and led the proprietors of even the 
 soundest of these institutions to look vigilantly about them, 
 and satisfy themselves as to the security of their position and 
 the probity of those to whose hands they had entrusted the 
 management of their affairs. The failure of the Eoyal British 
 Bank, which induced the directors of the metropolitan and 
 other leading and well-established banking companies to 
 volunteer assurances to their constituencies and invite in- 
 vestigation, was not likely to pass unheeded by the active 
 managers of a concern like the London and Eastern Bank. 
 They therefore took steps to set their house in order, and 
 passed a resolution that for the future no sum be advanced 
 to any director without security of the same nature and 
 extent as would be required from any constituent ; and that 
 should a director be indebted in the sum of 5000, no further 
 loan or advance be made to him without the sanction of the 
 weekly board. A somewhat curious scene must have been 
 enacted at the particular meeting at which this significant 
 resolution was adopted. The chairman, having called attention 
 to the strictures of the press upon the practice of directors of 
 joint-stock banks helping themselves to loans, each person 
 present found it necessary to say something in excuse for 
 taking the money entrusted to their care ; one, as in the case 
 of the chairman, for the purpose of making a comfortable 
 settlement for his daughter on her marriage with the manager, 
 by converting into ready money certain worthless promises to 
 pay ; otLers, as the manager, Colonel "Waugb, and Mr. Latty,
 
 604 TACTS, FAILTJBES, A^D FUAUDS. 
 
 and perhaps Captain Fendall, for having employed the funds 
 of the bank in brick and tile works, watch-making, cliair- 
 making, carpet-weaving, and a score of other entirely specu- 
 lative enterprises, from which, upon the principle of " heads I 
 win, tails you lose," all the profit, if any, was to be their own, 
 and all the loss the luckless shareholders'. There can be very 
 little doubt that the termination of this instructive assembly 
 was a general shake-hands, and the confession mutually ex- 
 changed that they were all in the wrong. 
 
 But late, and practically useless, therefore, as was this 
 virtuous resolve, it was set aside the moment that the owner 
 of the Branksea estates required money. On the 26th of Xo- 
 vember, two bills of 4000 each were discounted for him, and 
 in the following month he obtained 20,000 more in the 
 same way ; and the only explanation the manager was able to 
 give for thus setting the resolution of the board at defiance 
 was, that " it was impossible to stop the account of Colonel 
 "Waugh suddenly." 
 
 Early in the following year (1857), the London and Eastern 
 Banking Corporation succumbed to a destiny which, with such 
 a species of management, it was impossible to avert. An 
 attempt had been made to wind-up the concern quietly, in 
 order to avoid the disgraceful exposures which have since taken 
 place. In some respects it is well that the endeavour was un- 
 successful, for the revelation and punishment of such offences 
 as those of which the directors of this bank were guilty are not 
 only necessary to prevent the repetition of them in their own 
 persons, but as an example to deter others. It is unfortunate 
 for the shareholders, who must make good the deficiencies, that 
 the more expensive process of winding-up in Chancery has 
 been resorted to for realizing the assets and liquidating the 
 debts, instead of the Court of Bankruptcy ; but the liabilities 
 having been ascertained, and the proceeds of Branksea Island 
 and Castle, with the other assets estimated, a contribution of
 
 FACTS, FAILURES, AND FBAUDS. G05 
 
 50 per share from such of the shareholders as are solvent, in 
 addition to the 50 paid up, will, it is thought, be sufficient to 
 provide the means for paying off the -whole of the depositors in 
 full, and defraying the heavy law costs of the proceedings. 
 Colonel Waugh, as might have been anticipated, decamped 
 immediately after the failure of the bauk was announced ; and, 
 with some 10,000 or 12,000, it is alleged he managed to 
 secure, is carrying on various mining speculations in Spain, in 
 the hope of retrieving his pecuniary position ; but the expo- 
 sure made in a case lately tried in the Court of Queen's 
 Bench would lead to the presumption that he will attempt to 
 seek even a more distant retreat, to avoid contact with the 
 " minions of the law," who may be supposed to be interested 
 in facilitating his return to this country. The power both of 
 Bankruptcy and Chancery can be brought into operation 
 against him, if the creditors or the shareholders think fit; but 
 it seems that, in these days of mercantile degeneracy, the 
 public allow great financial criminals to escape through the 
 absence of the proper co-operation.* A more barefaced and 
 disgraceful fraud than that perpetrated by Colonel "W. P. 
 "Waugh was never committed, and his ready assistant, Mr. 
 Stephens, found that his endeavour to avail himself of a Scot- 
 tish residence for the purpose of relieving himself from his 
 liabilities without publicity was unsuccessful, and having on 
 his examination compromised his position, he quietly with- 
 drew, and has also, like his great friend and prototype the 
 colonel, sought refuge abroad. Black, the secretary, has 
 made terms of compromise with his creditors, and is therefore 
 in a less embarrassing situation; but his conduct was in a 
 great degree culpable, having been mixed up with Stephens 
 in several of his pecuniary transactions. 
 
 At a meeting of the creditors held in December, 1858, it was agreed 
 to diride the assets under the estate of Colonel Waugb, leaving Chancery 
 to deal with the fugitive bankrupt, if his presence was necessary.
 
 606 FACTS, FAII/L T EES, AND FEATJDS. 
 
 The shareholders 'of the London and Eastern Banking 
 Corporation have been severely victimized ; and consisting, as 
 they do, of a class of titled personages and others associated 
 with high military and civil appointments in India and the 
 Colonies, the large proportion of shares they held has rendered 
 the pressure proportionably onerous. As, however, they stand 
 committed to the tender mercies of an official liquidation, with 
 all the machinery of managers, etc., any escape except under 
 judicial arrangement is impossible; and although the bank 
 itself has been made bankrupt, the process in that respect is 
 little more than formal, the entire control of the assets, their 
 distribution, etc., being still retained by the Court of Chancery. 
 Among the very worst cases on record must for the present 
 stand that of the suspension of the London and Eastern 
 Banking Corporation, with its model adventuring director, 
 Colonel W. Petrie "Waugh, and its trade-promoting manager, 
 Mr. J. E. Stephens. 
 
 THE BANKRUPTCY OF JOHN EDWARD STEPHENS, 
 MANAGER OF THE LONDON AND EASTERN BANK. 
 
 THE examination of John Edward Stephens, whose name was published as 
 a bankrupt in the Edinburgh Gazette, and who was described as " formerly 
 banker, and lately of Gothic Lodge, Twickenham, Middlesex," commenced 
 before Sheriff Hallard, at the Court of Bankruptcy, Edinburgh, on De- 
 cember 7th, 1857. The sederunt included Mr. George Young, advocate, 
 counsel for the trustee and creditors ; Mr. Graham Binney, trustee ; Mr. 
 James Webster, agent in the sequestration ; Mr. A. R. Clarke, advocate, 
 counsel for the bankrupt ; Mr. James F. Wilkie, agent for the bankrupt ; 
 Mr. Charles James Fife Stewart, London, interim manager of the London 
 and Eastern Banking Corporation; and a number of creditors. The 
 bankrupt, on being examined, deponed as follows : 
 
 " I came to reside in Scotland in June last. I was manager of the 
 London and Eastern Banking Corporation before I came to Scotland. I 
 was appointed to that office in June, 1855, and I was relieved from the 
 situation on the llth of April, 1857- I was a shareholder of the bank, 
 and was one of the directors from 1855 till July, 1856, when I left the
 
 TACTS, FAILUHE3, AND FRAUDS. G07 
 
 direction, and was reappointcd in September, 1856. I think it was upon 
 the 23rd of the month that I was re-elected, and thereafter I continued to 
 be a manager until I left in July, 1857. I was a director and shareholder 
 for four years prior to my sequestration of the Eastern Steam Navigation. 
 Company. From the end of 1855 till my present sequestration, I was a 
 partner of a company known as Letts' Wharf Company, sawyers and 
 timber merchants, Commercial Road, Lambeth. There my sole partner in 
 that concern was Mr. James Black, secretary to the London and Eastern 
 Bank. In 1856 I became a partner of the firm of Minter and Co., up- 
 holsterers, Frith Street, Soho Square. It was on the 29th of September 
 of that year that I became partner of that firm. Mr. James Black, already 
 mentioned, was my only partner in that concern also, and we commenced 
 it together. From October till November, 1856, I think I was also a 
 partner of the Branksea Clay Company ; but for a more accurate specifi- 
 cation of the dates than I can at present remember I refer to the cancelled 
 deed of copartnery now in the hands of the bank. My sole partner 
 throughout the hitter concern was Colonel William Petrie Waugh. He was 
 also a director of the aforesaid bank. I now remember that I was at one 
 time connected with a watchmaker's business, called Barwise and Co., 
 Piccadilly, London. I was a partner of that concern from 1855 to 1857. 
 The sole partners were Mr. Robert John Lattey and myself. Mr. Lattey 
 was a director of the London and Eastern Bank. The account kept between 
 Letts' Wharf and the bank was a cash credit account, upon security. It 
 was opened on the 22nd of December, 1855, by the authority of the di- 
 rectors of the bank ; and being asked how that appears, deponent desires 
 the minute-book of the bank to be shown ; and being shown the minute- 
 book of the directors from the commencement of the bank till the 14th of 
 August, 1857, depones : I am unable to find in that book any authority for 
 opening the account in question. The book shown to me is chiefly in my 
 own handwriting, each minute of a meeting being at the end thereof 
 initialed by the chairman. But I beg to say that a good deal of the 
 business of the bank does not appear in the said minute-book, which is the 
 weekly minute-book. I have no doubt but I obtained the authority of the 
 director of the day to open the account in question. The business was 
 entirely carried on with money drawn from the bank with the cognizance 
 of the directors. The business of Minter and Co., which I carried on along 
 with Mr. Black, was a business of upholsterers and manufacturers of invalid 
 chairs. An advance cf 2800 was taken for that business from the bank 
 on the 26th of September, 1836, and I now see a " borrowed note" of that 
 date for that amount. The whole of that document is in the writing of 
 Mr. Black, including the signature of Minter and Co. That advance was 
 passed by the directors, as shown by the minute of a meeting of the board 
 of directors of that date. The chairman of that meeting was Mr. John
 
 COS TACTS, rAILUBES, AXD FBArDS. 
 
 Morris, and the entry is in his handwriting. Mr. Morris is DOW my father- 
 in-law, though he was not so on that date. He became niy father-in-law 
 next day. (Laughter.) Colonel Waugh was proprietor of Branksea 
 Island and Castle, near Poole, Dorsetshire, and the Branksea Clay Works 
 are on that estate. [Shown the minute-book of the directors.] I find in 
 the minute of meeting of 30th March, 1855, which is in my handwriting, 
 the following passage : " The manager brought before the board the wish 
 of Colonel Waugh, of Branksea Castle, to become one of the bank's con- 
 nections, and stated that his account would be a very large and profitable 
 one for the bank, as he intended to embark in large transactions as a clay 
 and brick manufacturer, at Branksea Resolved that Colonel Waugh's 
 wishes with regard to opening an account and receiving business accom- 
 modation from the bank be duly met." On the 22nd of March, 1855, an 
 acceptance of Colonel Waugh's for 2630 was discounted to him by the 
 bank ; and on the 23rd of March his drafts to the credit of that bill were 
 honoured to the amount of 775. The result is, that the bill, minus the 
 discount, was placed to his credit on the 22nd of March, and that his 
 drafts on that bill, to the amount I have mentioned, were honoured on the 
 23rd. Between the 23rd and 28th of March inclusive, his drafts were 
 honoured to the extent of 2779. Against these drafts there stood at his 
 credit 1st. The sum of 2524 13s. 4d., being the amount of his foresaid 
 bills, minus the discount ; and 2nd. The sum of 300 which he paid in on 
 the 28th of March. His foresaid bill was discounted and put to his credit 
 by the authority of the directors of the bank ; and the matter was brought 
 before the directors at their first meeting on the 30th in the manner 
 before stated. These transactions were entered into Colonel Waugh's 
 private account with the bank in his own name. Colonel Waugh proposed 
 to me to become his partner in the Branksea Clay Company. I think he 
 must have done so about May, 1855. I agreed to become his partner, and 
 the partnership was formed accordingly between us. We were the only 
 partners in the concern. I was to help him to get the profit out of it, and 
 to assist the manager by my advice. On the 21st of May, 1855, I paid 
 250 to the Branksea Company's account with the bank. That was all I 
 contributed. My share was one-half, Colonel Waugh holding the other, 
 and I was to have half profits and bear half loss. I was a manager of the 
 bank during the whole time that I was a partner. Colonel Waugh's private 
 account with the bank was kept quite separate from the clay work account 
 with the bank. 
 
 Examined by Mr. WEBSTEB. I have before me a copy of Colonel 
 Waugh's private accounts with the London and Eastern Bank, and I see 
 there a sum of 52,962 entered at his credit, being the amount of a promis- 
 sory note by him to the bank, of date 16th of January, 1857, less the sum 
 of 1348 6s. 6d. for discount. The bill was discounted for the purpose
 
 FACTS, FAILUIIES, AND FBAUDS. GOO 
 
 of closing tho balance then at his debit, which was overdrawn by that 
 amouut. I see in that account an entry of a balance of 1562 12v. GJ. 
 against Colonel Waugh, of date 18th of April, 1857. Besides this balance, 
 Colonel Waugh was at that date indebted to the bank 52,962 in his pro- 
 missory note formerly referred to. [Shown acceptances of Mr. C. Henry 
 to Colonel Waugh, and all bearing his indorsation two for -1000 
 each, being dated 4th of November, 1856, and two for 10,000 each, dated 
 December 6, 185G.] These bills were discounted by Colonel Waugh at the 
 bank, and the contents were placed to his debit ; and they form liabilities 
 to the bank by him in addition to the 52,962. They formed liabilities, 
 however, to which Mr. C. II. Carew was a party. [Shown five borrowed 
 notes granted by Colonel Waugh to the bank two for 5000 each, two for 
 10,000 each, and one for 68,000, and dated respectively 17th November, 
 23rd November, 17th December, 31st December, 1855, and 26th September, 
 1856, amounting altogether to 98,000.] These are all liabilities by Colonel 
 Waugh to the bank over and above those previously mentioned. Besides 
 his private account already mentioned, Colonel Waugh kept another account 
 with the London and Eastern Bank, called the Beddington Estate Fund; 
 and in March, 1857, tho sum due to the bauk on that account was 
 1 1,082 3*. -id. A. promissory note by Colonel Waugh for this sum had, 
 on the 17th November, 1856, been placed to the credit of the said Bed- 
 dington Estate Fund account, to write off a debit balance of nearly that 
 amount. There was also an acceptance by Mr. Francis Carew to Colonel 
 Waugh for 15,000, of date 4th December, 1856, which was discounted by 
 the bank, and placed to the Branksea Clay Company's account, to right of 
 a previous balance. Colonel Waugh drew and endorsed that bill. The 
 date at which it was discounted was the date of the dissolution of the 
 company. I never, either as an individual or through the Branksea Clay 
 Company, of which I was a partner, received any of the money drawn from 
 the bank by Colonel Waugh, and placed to the debit of his private account. 
 Bankrupt's attention being called to the bank ledger, and to various entries 
 in Colonel Waugh's private account of sums debited to him as paid to tho 
 Branksea Clay Company, and one of 3800 paid to the bankrupt, and 
 being asked if he had any explanation to give which would reconcile those 
 entries with his last answer, said I never received for my personal benefit 
 any sum through the Branksea Clay Company, though suras wi-iv ;it 
 different times placed to the credit of that company, of which I was a 
 partner. My attention being called to the second entry, " 250 ditto, ditto," 
 I give the same answer. In reference to tho third entry, " Paid J. E. 
 Stephens 3064 2s. 2d.," that was for shares of the bank which I sold to 
 Colonel Waugh. Wi;h regard to tho next entry of tho llth Juno viz., 
 "900 paid to Branksoa Clay Company" I give the same answer as to 
 the first und second. In reference to the fifth eutry, "1000," tho sixth, 
 
 Jl li
 
 610 FACTS, FAILUEES, AND FRAUDS. 
 
 '1693 12s. Id.," and the last, "2500," on 29th December, I give the 
 same answer. "With reference to the absolute negative answer preceding 
 the answers I hare now given in detail, I have now to explain that I mis- 
 understood the general question then put to me, thinking it meant to refer 
 to my receiving the amount for my exclusive personal benefit and without 
 value. "Was the debt due by you and your partner in the Clay Company 
 not diminished by each of the sums so placed at the credit of that account 
 by transfers from the personal account of Colonel "Waugh? Yes, it was. 
 Was there any correspondence between you and Colonel "Waugh showing 
 the inducement which made Colonel Waugh ask you to become his 
 partner? I have no recollection of such correspondence, but such may have 
 occurred. Being shown a Tetter dated Saturday, 9th June, beginning 
 " My dear Stephens," and signed " W. P. Waugh," and containing the 
 following passage : " For joining with you I have a return, having capital 
 at my back to entirely liberate myself; and you for finding me such capital 
 have your share of the mineral property, whatever it may be ;" and being 
 asked whether this statement of the inducement of Colonel Waugh making 
 you his partner is or is not correct, and whether there was any source then 
 in your contemplation from which the capital was to be supplied excepting 
 what was to be obtained from the London and Eastern Bank, of which you 
 were the manager, said : There was. I had arranged with Colonel Waugh 
 to advance him 6000 on mortgage, but the intention was not carried out, 
 owing to the long delay which took place in preparing the mortgage papers ; 
 and Colonel Waugh having in the interval become indebted to :. 
 amount to the bank, I did not wish to hold any mortgage preferable to it. 
 Did you prefer letting him have 5000 from the bank without security, to 
 lending him 5000 of your own ? The advances given by the bank were 
 originally given on the security of a bond for 30,000 given by Mr. Francis 
 Carew to Colonel Waugh, and two policies of insurance for 4000 depo- 
 sited with the bank. Colonel Waugh deposited these securities on opening 
 an account with the bank, and it must be an error on the part of the transfer 
 clerk if it is not mentioned in the securities' book. 
 
 Mr. WEBSTEE. With reference to the two bills for 4000 each, dis- 
 counted to Colonel Waugh in December, 1856, at that date was the bank 
 solvent ? To my knowledge it was not insolvent. In reference to the 
 3064 2s. 2d. paid to you on 10th May, 1855, on Colonel Waugh' s private 
 account, did you receive the same in cash ? The amount was transferred 
 to my account with the bank in exchange for shares of the bank transferred 
 by me to Colonel Waugh. Being pressed for a direct answer to the fore- 
 going query, bankrupt said I did not receive it in cash. Besides the 
 several companies already mentioned, were you not also a partner with 
 Captain Henry Fendel in a carpet company, prior to 12th March, 1857 ? 
 I was not. Were you not connected with him in any undertaking ? I
 
 FACTS, FAILURES, AKD FBAUJU3. Gil 
 
 don't remember being so ; there wr.s a proposed company callcil the Patent 
 Carpet Company, but I did not join it, to the best of my recollection. 
 Shown the register-book of securities belonging to the bank, and his atten- 
 tion called to an entry on page 95, in which his name and that of Captain 
 1, and two others, occur in connection with the deposit of "patent 
 rights in a new company for carpets," as being given in security for an 
 o of 1000, and again asked if he was not connected with that 
 concern, bankrupt said Such a company was formed, but I did not join 
 it ; I was not a partner, but I was an intended partner. Had you any 
 connection with it except as proposed partner, who did not join it? I had 
 not. How did you dispose of your interest in it, did you not sell an 
 interest in it ? I do not remember doing so. 
 
 Ey Mr. YorxG. I was present at the meeting of the board of directors 
 On the 2Dth of September, 1856. Mr. Morris, who became my father- 
 in-law on the following day, was present as chairman. The other directors 
 were also present. The minute of that meeting contains the following 
 passage : " The chairman having drawn the attention of the board to the 
 remarks which had recently appeared in the Times newspaper relative to 
 advances made to directors of joint-stock banks, and specified the cir- 
 cumstances under which he deemed that he was justified in having sought 
 and received assistance from the bank, a similar statement was made in full 
 by Colonel Waugh, in respect both to the advances made to himself and to 
 the Branksea Clay Company ; and he stated his intention of paying into 
 the bank, early in November, a sum amounting to about 150,000 ; and 
 the manager having afforded an explanation relative to the account of 
 Messrs. Noakes, Chapman, and Parson, Letts' Wharf, and other commercial 
 accounts, and having stated the amount of each, these were approved of, 
 and the following resolution was passed : Resolved, that for the future 
 no sum be advanced to any director of the bank without security of the 
 same nature and extent as would be required from any constituent ; and 
 that, should a director be indebted in the sum of 5000, no further loan or 
 advance be made to him without the sanction of the weekly board." I 
 remember that two bills of 1000 each were discounted on the 25th of 
 November, 1856, to Colonel Waugh by the bank, and the amount placed to 
 Colonel Waugh's credit. And on 30th of December, same year, two bills of 
 10,000 each by Colonel Waugh were discounted, and the amount placed to 
 his credit in the same manner. At the dates when these four bills were so 
 discounted, Colonel Waugh \\ i to the bank in a lanri* amount, 
 
 much exceeding 5000. These discounts were made without the sanction 
 of the weekly board, but with the sanction of one of the directors. The 
 matter did not pass into tho book before the directors. It was really 
 sanctioned by tin- dim-tors, though not recorded. I mean it was 
 subsequently brought under the notice of tho directors. I own I have no
 
 G12 FACTS, TAILUEES, AND FEATJD3. 
 
 explanation to give why this was done in face of the resolution of 29th of 
 September, 1856, unless it is that it was impossible to stop the account of 
 Colonel Waugh suddenly. The director who sanctioned the discounts of 
 20,000 to Colonel Waugh on the 30th of December, was Mr. Latter, my 
 partner in the watchmaking business. The director who passed the dis- 
 counts of 8000 on the 25th of Kovember preceding was Colonel Chad wick, 
 who had no connection with me in business. I received a letter from 
 Colonel Waugh, dated the 5th of January, 1856, in which he writes 
 " My dear Sir, I understand more bills have become due. I shall be at 
 the bank by half-past 11 A.M. on Tuesday, the 8th, and shall feel obliged 
 by your having ready either a bill for my signature or a stamped receipt 
 as before signed, thereby doing away with the necessity of so many bills. 
 I had better sign sufficient to cover up till February what may be falling 
 due till then." Did Colonel Waugh come to the bank on the 8th ? I do 
 not know. Had you bills ready for his signature, or borrowed notes ? I 
 see from the book that he came to the bank on the 8th, and signed pro- 
 missory notes of that date for 30,000, which was then discounted, and 
 which bill was laid before the weekly board in the usual way. I wish to 
 explain that a list of bills discounted and advances made were laid before 
 the weekly board, as will be shown by the minutes. When I look at the 
 minute-book of the directors, I find it does not appear that the said pro- 
 missory note, or any list of the discounts and advances made, were laid 
 before the weekly board. Colonel Waugh fled the country, to the best of 
 my knowledge, in April last. He was then indebted to the bank to the 
 amount of 243,000 as shown in the accountant's statement. Did you 
 still remain manager of the bank at the time Colonel Waugh absconded ? 
 Until April 11. I was manager of the bank from its institution. I am 
 the owner of some heritable property in London, being a house and stable 
 at 17, St. James's Place. I bought the house and stable separately. I 
 purchased the house in 1853, and it cost me, with some improvements I 
 made in that year on it, 5010. I purchased the stable in September, 1854, 
 at a price of 1607 3*. M., making the total amount which I paid for 
 both house and stable, 7107 3s. 4rf. I was also proprietor of a hous^ at 
 Twickenham, called Gothic Lodge. I purchased the property on the 29th 
 of November, 1855. What was the total amount of capital you expended 
 on that house prior to the 18th of July, 1856 ? I paid 160 for a hot-water 
 apparatus that was fitted up, and I also purchased in addition some adjacent 
 cottages, which I turned into offices ; and the sum total which I spent on 
 the property, prior to the 18th of July 1856, was 3186, 12s. lOd. At the 
 time of the purchase, the property was in very bad repair. On the 18th of 
 December, 1856, 1 paid the builder's account for repairs and improvements 
 since I had the property, the sum of 2236 13s. I will furnish the ac- 
 count to the trustee. I had two or three acres of ground attached belong-
 
 FACTS, FAILURES, AND FRAUDS. 613 
 
 ing to this property. The total sura this property at Twickenham cost me 
 was 6423 5s. lOd. L was married 30th September, 1856, to a daughter 
 of Mr. Morris, who was chairman of the London and Eastern Bank. On 
 the occasion of my marriage, a marriage settlement was executed between 
 myself, my wife, and my father-in-law, and certain marriage trustees were 
 parties. The substance of it was that I was to settle 16,000, and my 
 father-in-law -1-000 on my wife, and that the trustees were to haTe the 
 money. The annual income of the said 16,000 was to be paid by the 
 trustees to my wife during the marriage, and the annual income of the 
 4000 was to be paid to mo unless I became bankrupt, in which case it 
 also was to go to my wife ; on the death of either, the survivor was to get the 
 income of the whole 20,000, and on the death of the survivor, the whole 
 20,000 was to go to the children. On tho 27th of September, 1856, 1 
 drew from the bank 12,000, and placed it to a deposit account in the 
 name of " Henry Morris and other?," the trustees. On the 29th of Sep- 
 tember, I gave Mr. J. C. Morris a cheque on my account for 4000, which 
 was paid the same day. I drew both these sums, and applied them in 
 anticipation of the marriage settlement, the terms of which had been 
 arranged,- and thereby implement my part of the money provisions in said 
 settlement. I believe the trustees got the deposit receipt for the 12,000. 
 I am still possessed of the house and stable in St. James's Place. At the 
 date of my marriage, my father-in-law, Mr. J. C. Morris, was largely in- 
 debted to the bank. He was due 12,000 upon a borrowed note, dated 
 24th of April, 1856, and he was also duo about 2000 in his current re- 
 ceipt with the bank. I had no other bank account except that kept in the 
 name of the London and Eastern Bank. This account was one debt, 
 which I owed at the date of my marriage. At that date I was indebted 
 as follows : Personal debts (1), the foregoing account to the builder, 
 3236; (2\ Mr. Roohat tho jeweller, 82 9*. 6d.; (3), Mr. Benson, 
 jeweller, 17 2-. ; (4), account to Messrs. Buckmaster, tailors, 10 9*. ; 
 (6), debt to Colonel M'Leod, in India, 1665; (6), debt to Captain 
 Stephens, 150 ; (7), calls due to Eastern Steam Navigation Company, 
 1350. At the date of my marriage I was not indebted to Lord Gough 
 for money he had lent me. He had lent me money (8000) before I left 
 India. I gave a bond for that sum. I do not remember when I paid him 
 back. Where did you pay him ? I paid him whea lie and I came home, 
 in 1850. I had many transactions with Lord Gough. In my account of 
 receipts and expenditure, I see, under date tho 2SJth of August, 1851, an 
 entry, "Lord Gough, interest of loan of 8000, 112 4s. 7d." I beg to 
 state I had money from Lord Gough to put into railway and other stock, 
 for which I paid him interest, and that tho amount of the principal so 
 handed over to me by Lord Gough, will not bo found either debited or 
 credited in my bank account. I had a deposit account for 3500 in
 
 G14i FACTS, FAILURES, AND FEAUDS. 
 
 my own name quite independent of the account with Mr. and Mrs. 
 Fox. 
 
 At this stage the bankrupt retired for about ten minutes, along with, 
 his legal advisers. 
 
 The bankrupt, on his return, continued I withdraw the answer above 
 given, that upon the 26th of September, 1856, 1 had 3500 at my credit 
 in deposit account. At the same time that I transferred to my credit the 
 3500, 1 also transferred to my credit the interest which had accrued 
 thereon to that date, being il Us. 2d, What was your reason for 
 transferring this money from the credit of the parties to whom it belonged, 
 to the credit of yourself, to whom it did not belong ? I must decline to 
 answer that question. On the Gth of Xoveniber following, I retrausferred 
 the said sum of 3500 from my own credit, to the credit cf the parties 
 from whose credit it had been taken. Did you retransfer the interest ? I 
 did not. After a minute or two the bankrupt said That is a mistake, I 
 wish to withdraw that last reply, and to say that I decline to answer. In 
 my current account with the bank, under date 22nd July, 1856, thera is 
 this entry on the credit side : "Purchased 120 shares L. and E. Bunk, E. 
 Griffiths, 6000." That entry refers to the purchase of 120 shares from 
 Mr. Griffiths, which were transferred from his name to mine. I purchased 
 them from him for the bank, and took the transfers in my own name. I 
 paid Mr. Griffiths by a cheque on my bank account for 6000, dated 22nd 
 of July, 1856 ; and the sum is entered to my debit of that date, in my 
 current account. Did you draw the dividends on these shares? Yes, I 
 did, and placed them to the credit of my account with the bank, where 
 they now appear. The amount of the second dividend was re-transferred 
 from my account to the interest account of the bank on the ISth of 
 February, 1857. Can you show any authority for the statement that these 
 shares were purchased by you for the bank? IS* o, I cannot. Do the bank 
 maintain you had no authority for that purchase on their behalf? Yes, 
 they do ; but it was understood by all the directors that these shares should 
 be purchased from Mr. Griffiths, in order to get his seat in the direction 
 for Colonel Yates. These shares were never transferred to Colonel Yates, 
 nor was it intended that they should be. Colonel Yates became a director 
 in July, 1856, on the date of the purchase. He had a sufficient numbsr of 
 shares to qualify him to be a director. Mr. Griffiths had a claim to a seat 
 falling vacant in the direction, and would not give it up, except on one 
 condition, that his shares were purchased, and which it was considered 
 expedient to do. When ho sold the shares, Mr. Griffiths agreed to give 
 the dividend, which was then past due, to the purchaser. He allowed me 
 to receive that dividend, and I did so. I can show no authority for placing 
 that 6000 to the credit of my account on 22nd July, 1856. With regard 
 to the state of my liabilities to the bank as regards the trading concerns
 
 FACTS, FAILURES, JLS'D FRAUDS. 615 
 
 N 
 
 with winch I was concerned at the time of my marriage, I have to state 
 that I was jointly liable with Mr. Black for the debt due to the bnnk by 
 Letts' Wharf; and Mintner and Co.; with Colonel "YV'augh for the debt 
 clue by the Branksea Clay Company ; and with Mr. Lattey for tho debt 
 due by Lattey and Co., including Barwiae and Co. 
 
 The bankrupt's examination having occupied tho court continuously 
 from Monday to Thursday evening, an adjournment took place to the fol- 
 lowing Monday. On that day, however, on the assembling of the court, 
 the bankrupt did not make his appearance, but an application was made 
 on his behalf for an adjournment, on the ground of ill health, and to give 
 him time to look over books and documents on which ho had been unex- 
 pectedly examined. 
 
 Application, on the other hand, was made by the trustee for a warrant 
 for his apprehension. Mr. Sheriff Hallard overruled the first application, 
 there being no medical certificate produced, and granted a warrant to ap- 
 prehend him. 
 
 In a letter to tho trustee, Mr. Stephens states that his health has suf- 
 fered greatly from his long-continued and harassing examination. It was, 
 he adds, unreasonable to expect he should on the instant account for the 
 contents of the many letters, books, and documents of the bank, kept by 
 subordinate officers, and that he should have the responsibility of all their 
 entries fixed on him. On subsequent inquiry he finds that ho has made 
 statements to his prejudice, which are acknowledged to bo erroneous, and 
 he therefore wishes ample time to look over the bank-books, that he may 
 rectify and prevent erroneous statements in future, and that he may show 
 that all the advances to Waugh were sanctioned by tho directors, and that 
 so late as February last, he was assured by Colonel Yates that YV'augh's 
 security only wanted time to be worth a million. 
 
 His agent has appealed to tho Court of Session against Sheriff Hal- 
 lard's decision, but this does not stay execution of the warrant to appre- 
 hend. 
 
 CUBIOUS REVELATIONS RESPECTING COLONEL W. 
 PETRIE WAUGH. 
 
 COTTBT OP QCEEN'S BENCH, December 13, 1858. 
 
 (Sittings at Niri Prim, at Guildhall, before LOUD CAUPBELL and a 
 Special Jury.) 
 
 WEAL V. ISAACS COLONEL WATIOH. 
 
 The plaintiff, Mr. Stephen Neal, a managing engineer, at Birchm Lane, 
 brought this action against tho defendant, Mr. Samuel Isaacs, an army
 
 616 PACTS, FAILURES, AND PEAUDS. 
 
 agent and contractor of St. James's Street, to recover a sum of between 
 1100 and 1200, the balance of an account. 
 
 Mr. E. James, Mr. Serjeant Ballantine, and Mr. Barnard appeared for 
 the plaintiff; Mr. M. Chambers, Mr. Denman, and Mr. Hawkins, for the 
 defendant. 
 
 The case only derived an interest from being mixed up with the affairs 
 of Colonel Waugh, formerly of Branksea Island and Castle, and 11, Upper 
 Grosvenor Street. It appeared, from the opening statement of counsel 
 and the evidence, that the plaintiff in 1857 was the manager of the alum 
 works at Brauksea, which then belonged to Colonel Waugh. lie was in- 
 troduced by the colonel to Mr. Isaacs in February in that year, and in 
 September following he went by the direction of Mr. Isaacs to Spain to 
 examine and report upon the St. Mary Copper Mines in that country. He 
 was to receive 100 for his trouble and expenses. Of that sum he received 
 50, and oil this account there remained a balance of 50. In December 
 following he made a second journey to Spain on the same terms, and 50 
 remained due on that account also. In February, 1858, Mr. Isaacs sent 
 for him, and said he had got into difficulties in consequence of having ad- 
 vanced 10.000 to Colonel Waugh ; that he had got security in the shape 
 of bills and judgments to the amount of 37,000 on the Beddington Park 
 estate, in Surrey, which belonged to Mr. Carew, a connection by marriage 
 of Colonel Waugh ; that Colonel Waugh had borrowed the judgments for 
 a temporary purpose ; and that they had been fraudulently deposited with 
 the London and Eastern Banking Corporation. He then requested Mr. 
 Real to go to Colonel Waugh at Seville, in Spain, and obtain an affidavit 
 from him, stating the truth with regard to the property in the judgments, 
 promising to give him (Mr. Neal) 1000 if he brought back such an affi- 
 davit. Mr. Isaacs gave him a cheque for 250, out of which he was to pay 
 his own expenses, and to give as much as he thought fit for the keep of 
 Colonel Waugh' s family, Mr. Neal accordingly went to Seville, saw 
 Colonel Waugh, and obtained from him an affidavit stating that the judg- 
 ments were improperly detained by the bank, and that they belonged 
 entirely to Mr. Isaacs. His journey cost 51 13s. 6d. ; he gave Miss 
 Maxwell (Colonel Waugh's aunt) 120, and the balance he paid to the 
 defendant. Under these circumstances the plaintiff sought to recover the 
 1000, as well as the balance he alleged to be due to him in respect of the 
 several journeys. 
 
 In the course of the plaintiff's case, the following letters were put in 
 and read : 
 
 " Rosemary Cottage, Lower Islington, April 6, 1858. 
 
 "Dear Sir, I have had the pleasure of calling upon you a few times as 
 agent to Colonel Waugh, that worthy and I being about to close our con- 
 nection, simply because I cannot bleed, or rather be used further by him.
 
 FACTS, FAILUEES, A2TD FRAUDS. 617 
 
 In my closing letter I have had occasion to refer to your name, and I have, 
 therefore, deemed it proper to send you the rough copy or draught of my 
 letter to Colonel Waugh for perusal, which when read please return. The 
 letter shadows forth some strange doings oil the part of my late client and 
 his 'perilous ' advisers, with which it may not be amiss for you to be made 
 acquainted, as there seems to have been a diabolical attempt to commit 
 great injustice towards you. Any of the facts contained in the letter you 
 are uvlcome to make use of if required. I have no doubt that Colonel 
 Waugh will have written to you, referring to my dealings with him ; but, 
 whatever he may say, the sum and substance of all that I have done and 
 said in respect to my visits to you as his ' agent ' is narrated in my letter, 
 and I shall feel happy at any time to come forward and state on oath what 
 I have written in my letter to him, which he will get in due course. Trust- 
 ing to continue in your honourable estimation as heretofore, 
 
 " I am, dear sir, very faithfully yours, 
 
 "STEPHEN NEAI. 
 M Samuel Isaac, Esq., St. James's Street West." 
 
 " Rosemary Cottage, Lower Islington, London, April 6, 1858. 
 " To W. P. Waugh. 
 
 "Dear Sir, I am in receipt of your last letter, wherein you have 
 thought fit to call in question my conduct towards you as your ' confiden- 
 tial ' agent. Now let us examine and see how the case really stands be- 
 tween us, so that an impartial and discerning public may judge as to the 
 right and wrong between you and me. 
 
 " My first interview with you was with a deputation on railway busi- 
 ness at the latter end of 185(5, at the London and Eastern Bank, C'auuon 
 Street. 
 
 " Shortly after our first interview you wrote to me, inviting me to meet 
 you at Branksea Castle, Dorset, which I did ; and you then engaged me to 
 inspect and report upon Branksea estate and Beddington Park estate, both 
 of which estates I inspected and reported upon to you. 
 
 " You subsequently engaged me to erect and manage chemical works at 
 Branksea, at a salary aud commission estimated to produce to me about 
 1000 a-year. 
 
 " You stated to me that the Beddington Park estates were your pro- 
 perty, and that you were in daily expectation of receiving upwards of 
 60,000 from the property, and you urged me to press on with the several 
 works, and spare nothing ; and by your representations in this respect I 
 was induced to make large purchases of materials, and which were delivered 
 at Branksea, the invoices being regularly submitted to you. Now up to 
 this day I have not been paid one single farthing for my services, although 
 (as I afterwards found out) my report ou tho mineral value of Brauksea
 
 618 TACTS, FAILUEE3, AXD FBAITDS. 
 
 estate enabled you to obtain several thousand pounds from Mr. Jolly and 
 others, at least so Mr. Aplin informed me. 
 
 "These proceedings you adroitly managed to carry on with me, or 
 rather through me, with a full knowledge that you were then in a hopeless 
 state of insolvency, as the sequel proved ; for at the commencement of my 
 works you suddenly left England, and your creditors seized and sold all the 
 chemical materials, and turned me adrift, thereby subjecting my friends to 
 serious loss, myself to several law suits, and almost irreparable ruin. Some 
 months after you had been on the Continent (at Seville) you sent me several 
 letters relating to a copper mine at Valverde, in Spain, and you represented 
 that there was then upwards of 40,000 tons of copper ore at the surface, 
 worth an immense sum of money, and you requested me to sell (in Eng- 
 land) a few hundred tons of the same to raise you money, and also suffi- 
 cient to pay myself for all my losses at Branksea. At your request I 
 visited this mine, and was met there by you and Admiral Maxwell and 
 Messrs. Thomas and Charles Dally Haffenden, of Valverde, but instead of 
 40,000 tons of ore I only found about 5000 tons. You represented to me 
 that Miss Susan Maxwell and the said Messrs. Haffenden were the owners 
 of this mine, whereas by investigation on the spot, it appeared that you and 
 the Messrs. Haffenden were the only owners of the mine, and upon which 
 you had advanced from 10,000 to 15,000, the shares being divided 
 between you as follows, viz.: 
 
 " Colonel "Waugh 65 shares. 
 
 Mr. Bonnor ... ... 5 
 
 The Messrs, Hafienden 30 
 
 A Gift 2 
 
 Total 102 
 
 " These shares were variously valued at from 100 to 1000 per share. 
 
 " It also appeared that at or about the time of your bankruptcy, a 
 second issue of shares was made in this mine (the St. Mary Mine), and 
 your 65 shares were then transferred into the name of Miss Susan Max- 
 well. 
 
 " These double sets of shares, you will recollect, were shown to me by 
 Mr. Thomas Haffenden, at Seville, in your presence, when they were all 
 given up to Mr. Haffenden to raise money on the mines at Valverde, and 
 you afterwards advised me that he had succeeded in doing so. Mr. Haf- 
 fendeu also advised me to the same effect. 
 
 " Previous to my going out to Seville the second time, I was autho- 
 rised by you and the Messrs. Haffenden, to negotiate a loan of 3000 on 
 the St. Mary Mines and Works, and which I did ; but when I came to 
 Seville to complete the business, both you and the Messrs. Haffenden
 
 FACTS, rAILUCZS, AXD FRAUDS. G19 
 
 declined to take up the said loan, alleging as a reason the stringency of the 
 terms imposed by the capitalists as to its application to the mine works, 
 which greatly puzzled me; but on my return to London the mystery was 
 solved, for Air. Bounor informed me that you had promised to remit him 
 : lar:.o sums of money, but that Mr. Neal had failed in his engage- 
 ments with you. Then it appeared that, instead of applying the 3000 
 loan to the development of the mine, as was stipulated, it evidently was 
 your intention to have privately divided the money between yourself and 
 the Messrs. Haffendcn, and which would certainly have been the case had 
 not the capitalists provided against its malappropriation. Mr. Bonnor 
 wrote you strongly on the subject. 
 
 " Mr*. Waugh informs mo that the Messrs. Haflenden had only acted 
 as her agents in working the mine, but this Mr. Thomas HafTenden denies, 
 and said from the first that the mines were to be -worked for your and their 
 joint and mutual benefit, and he positively declined to be a party to seizing 
 or selling the mines, or even to take up a loan thereon while there were 
 two sets of shares in existence. So, with a view to get over that difficulty, 
 the Messrs. EafFenden declared the agreements theretofore subsisting be- 
 tween you and them to be at an end and absolutely abolished, but that was 
 duly done, and a colourable pretext to meet events that might happen. 
 
 "I also ascertained that soon after you had commenced to work these 
 mines, both you and Mr, Bonnor executed a general power of attorney to 
 the Messrs. Hafiendm to act for you in Spain in all matters relating to the 
 mines. Such power of attorney was executed by you before the Spanish 
 consul in London, and forwarded by him to Spain, and duly registered. 
 Mr. Bonnor, however, subsequently cancelled his power of attorney, and 
 his declaration and revocation of the same were published in the Spanish 
 local newspapers, and at which both you and the Messrs. Huffenden bitterly 
 complained. Mr. Bonnor showed me his five cancelled shares. Your 
 power of attorney still remains in full force in Spain. These little facts the 
 Messrs. HafTenden can confirm. 
 
 " When 1 left you in Cadiz, in September last, you gave me letters of 
 introduction to Mr. C. H. H. Carew and Mr. Isaac, and you requested me 
 to see those gentlemen on your behalf, which I did, and reported to you the 
 result, which was to the elfect that Mr. Carew would scarcely give me a hear- 
 ing for you, and Mr. Isaac said that he only wanted his net money advances 
 returned, and that, so far as he was concerned, he would recommend at, the 
 proper time that any balance remaining from the 37,000, judgments 
 should be given to you to relieve you, provided that you were iu need. 
 That promise I feel confident Mr. Isaac will adhere to, when the proper 
 time arrives, provided he has any power over the surplus funds. 
 
 "You also gave mo a letter to the London and Eastern Bank, and I 
 had a long interview with Mr. Stewart, the manager, and I submitted to
 
 620 TACTS, PAILTJBES, AND FEATTDS. 
 
 him your proposition for a compromise between the bank and Mr. Isaac, 
 which you said would probably sustain your credit with both parties ; bat 
 Mr. Isaac declined to listen to your proposition in this respect, and he re- 
 fused to advance you one shilling on Miss Maxwell's bill, or on Mrs. 
 Waugh's jointure, which I reported to you. 
 
 " You also gave me letters and documents of authority to call upon Mr. 
 Lawrence, and submit to him certain propositions for a settlement with 
 your creditors, which I did, and reported to you the result. Mr. Lawrence 
 also wrote you a long letter on the subject. 
 
 "As regards your statement about the affidavit you sent by me to Mr. 
 Isaac, you too well knew that that was purely your own free will, act, and 
 deed, and on giving it to me you expressed your great regret that you had 
 subjected Mr. Isaac to any annoyance by your misconduct in the matter 
 of the judgments, but that you hoped your affidavit would set you all right 
 again in his estimation, and that you felt happy in making the amende to him, 
 and that you must meet the consequences of your error with the bank as 
 best you could, which you designated as a piece of rascality that had been 
 practised upon you by your own solicitor and the bank's solicitor. 
 
 " On delivering your paper to Mr. Isaac, I mentioned all that you 
 desired me to do, and, as I before mentioned, Mr. Isaac promised me that 
 if there should be any balance remaining on the judgments, so far as he 
 was concerned, you were welcome to it, when the encumbrances on the 
 Beddington estates should be cleared off; but, at the same time, he (Mr. 
 Isaac) animadverted, in strong terms, on your conduct in obtaining and 
 keeping the judgments from him in the manner you had done. 
 
 " As I informed you in my previous letter, your affidavit was wrong in 
 some very material points, and it was looked upon as being of little or no 
 importance in the matter between the bank and Mr. Isaac, as you had sup- 
 posed it would be, and I wrote to you to that effect. 
 
 " You may also recollect that I informed you that Mr. Bonnor had 
 shown me the affidavit which the London and Eastern Bank had sent to him 
 to be forwarded to you, likewise the solicitor's letter accompanying the 
 same, both of which I had read. That affidavit you promised to lend to 
 me immediately that you received it, so that I might fully understand what 
 they (the bank) had proposed for you to sign, in respect to the judgments 
 and certain bills, and which you said they would find would be ' simply 
 nothing,' inasmuch as from the first to last you had instructed Mr. Bonnor, 
 who you said was most clearly not to meddle in the matter of the judg- 
 ments with the bank, but you found that he had done so on his own 
 responsibility, but by that you were not bound, and you expressed your 
 determination to repudiate all that he had done or promised to the bank 
 on your behalf. 
 
 "When I was last at Seville, you stated to me that you had been
 
 TACTS, FAILURES, AND .FBAUDS. 021 
 
 applied to by Mr. Bonnor several times on behalf of the London and 
 Eastern Dank, to sign an affidavit to the effect that Mr. Isaac had applied 
 to you to join you in the Branksea Alum Works, but you believed that 
 that application was a mere ruse, and only made with a view to damage 
 Mr. Isaac's claim to the judgments, and to create a favourable feeling 
 towards the bank, but you said you had not replied to so monstrous an 
 application, because the very opposite was the fact. 
 
 " Then, with respect to your remarks that you wrote and signed Mr. 
 Isaac's affidavit when you were ill, I am prepared to make solemn oath 
 before any bench of magistrates, that on the several occasions when you 
 called on me at my inn, the ' Fonda d'Europa,' in Seville, and when I 
 visited and dined with you at your home, you appeared to be in a perfect 
 and sound state of health, both in body and mind, and could take your 
 refections quite as well as any other person. This I can vouch for, not- 
 withstanding any medical certificate or depositions you may get to the con- 
 trary. You only trump up sick certificates to suit your own nefarious 
 designs, and to deceive the unwary. 
 
 " On your leaving England, you possessed yourself of three different 
 passports in three different names, as your only means of safety, and you 
 cautioned me, when I was with you in Spain, not to call you ' Colonel' or 
 ' Waugh.' 
 
 " Your medical certificates sent to England from time to time, were 
 most certainly wrong, as to your place of residence, because you have 
 resided at 24, Calle do las Palmas, in Seville, ever since your first arrival in 
 Spain until your recent removal to the English hotel, Fonda Vista Allegro 
 Allameda, Cadiz ; you also stated to me that you had merely gone to San 
 Lucar Rhold Mangencines for a day or so, with a view to get your ' sick 
 certificates' and baffle detection. Mr. Charles Dalby Haffenden, of Val- 
 yerde, met you by appointment at Bayonue, in April last, to conduct you 
 and your family into Spain ; you have been over to England once since, 
 privately, for a few days to get money and arrange certain business matters 
 with Mr. Bonnor ; you have also been over to Paris, I think, three times 
 to meet Mr. Bonnor on the subject of your affairs. Now, were you danger- 
 ously ill on all those occasions ? and were you dangerously ill when you 
 rode about 160 miles over the rugged mountains from Seville to Valverde 
 and back, a journey of two days' and two nights' duration, and requiring 
 the stoutest heart to accomplish ? 
 
 "You stated to me at Cadiz, that when you left London in April, 1857, 
 you placed in Mr. Bonnor's hands a large sum of money for safe keeping, 
 and both you and Mrs. Waugh bitterly complained to me that he (Mr. B.) 
 had improperly applied that money, and that he now audaciously refused to 
 account for its disposition ; also, that you had left with Mr. Bonnor your 
 gold watch, which he had sold for, I think, 10. Now, Mr. Bounor has
 
 622 FACTS, TAmmES, A>~D 
 
 acknowledged all this to me, and he says that he is quite willing to account 
 to a mutual friend, but that he will not do so to you direct, as he believes 
 that you would make use of his statement of account against him, and he 
 will not, therefore, place himself in your power. 
 
 " Mr. Bonnor has shown and read to rae all your private and con- 
 fidential letters and correspondence, and I must -say that they disclose some 
 very startling facts. 
 
 " Mr. Bonnor has also admitted to me that he prepared a declaration to 
 the effect that the yacht and other valuable property, which was claimed by 
 Mr. F. B. Carew at the Brauksea sale, was the ~bonaf.de property of him, the 
 said Mr. F. B. Carew, when he (Mr. Bonnor) knew that such property 
 really belonged to you. The understanding between Mr. Bonnor and Mr. 
 Carew was, that Mr. Carew should pay over to Mr. Bonnor about 300 or 
 400 out of the proceeds of the property so claimed; this proceeding was 
 reported to you, and you expressed your surprise that Mr. Bonnor should 
 have lent himself to such a transaction. Mr. Bonnor informed me that he 
 would not have done so but for the hope of getting about 300, which he 
 failed in doing, as Mr. Carew would not hand over any of the money realized 
 from that property. 
 
 " You also informed me that you had furnished Mr. Bonnor's house for 
 him very expensively, and that, in point of fact, all Mr. Bonnor's costly 
 household furniture was your property ; this accounts for the strange 
 demand now made to Mr. Bonnor in your letter of December 28, 1857, 
 wherein you say that, in case of necessity, he (Mr. B.) must ' sell the bed 
 which is under him.' The terms of that letter to Mr. B. you can't have 
 forgot; besides which you said he had received several thousand pounds 
 of your money from the bank, but which you now considered as a 
 gift. The same also applied as to about 60,000 given by you to Mr, F. B. 
 Carew, and you referred me to the London and Eastern Bank, the Union 
 Bank, and Cocks' Bank, to prove this by cheques paid with your money 
 (query, Bank's). 
 
 "You also informed me that 'you held more than 100 letters of Mr. 
 Bonnor's, which, if made public, would expose him to very serious charges 
 in respect to his dealings with the bank affairs and other matters ; but that 
 if he would not hurt you, you would not hurt him.' You also said, that 
 ' among Mr. Bonnor'e letters in your possession were several relating to Mr. 
 Linklater's first appointment as your solicitor under your bankruptcy ; also 
 letters as to Mr. Bonnor's and Mr. Linklater's private arrangements, to the 
 effect that Mr. Linklater should abandon your case in favour of Mr. Law- 
 rence, and Mr. Linklater take up the case on behalf of the creditors.' Both 
 you and Mr. Bonnor said that it was chiefly owing to the private arrange- 
 ments that Mr. Linklater had acted so apparently friendly towards you 
 during the long protracted bankruptcy proceedings throughout which you
 
 TACTS, FAILUEES, AJTD FRA.TJDS. G23 
 
 said that the burden of Mr. Linklater's song had been, ' Oh, woodman, spare 
 that tree ' (laughter). 
 
 "Mr. Bonnor has informed me that he has written you letter upon 
 letter, requesting jou to destroy or to return to him all his private letters 
 referring to this subject ; but in your letter to Mr. Bonnor on the IGth of 
 February you inform him that ' in your hands both he and his letters are 
 safe, as long as he does what is right towards you,' and you decline to return 
 his letters ; and Mr. Bounor says that he only wants to be ' saved from his 
 friends.' 
 
 "Then, again, Mr. Bonnor has over and over again stated to ir.e that 
 all his dealings with the London and Eastern Bank during your absence 
 from England have been simply to ' amuse ' the bank people, and to keep up 
 a good feeling towards you, and that, in reality, he had told them nothing 
 c except lies by ths dozen ;' and that, as regarded the bank's claim to 
 the 37,000 judgments, they (the bank) knew very well that they had not 
 a leg to stand on ; and that was the reason why the bank had deemed 
 it necessary to send out an affidavit for you to sign in their favour. That 
 affidavit Mr. Bonnor said he had merely sent out to you as a matter of form, 
 because he knew that you could not, and would not, sign it, he having pre- 
 viously advised you to the contrary ; he had therefore made no remarks 
 upon it in sending it out to you. Your letter to Mr. Bounor, of which the 
 following is a copy, throws some light upon this matter : 
 
 " ' Feb. 16, 1868. 
 
 w 'Dear Sir, Colonel Waugh has left this (Seville), as I before men- 
 tioned to you he intended doing ; your letter of the 8th o? February, 
 enclosing affidavit, I therefore opened ; it shall be duly forwarded, but there 
 must be necessarily great delay before it reaches him, or be received back 
 by you. 
 
 " ' I bet: to bring to your notioe that Colonel Waugh did not pay back 
 the money received upon my jointure from the bank money, but from moneys 
 advanced from other sources. Of this we are the best judges. 
 
 " ' You are in a position now of considerable peril. You were confi- 
 dential solicitor to my husband, ind, should you betray the trust reposed in 
 you so sacredly and guilelessly by him, by telling such stories to the bank, 
 wo shall be obliged to protect ourselves at any risk to you ; and this I say 
 from knowing Colonel Waugh's determination. 
 
 *.' We have letter upon letter of yours, in reply to my husband, telling 
 you not to admit he ever had a shilling from the bank on the Beddingtou 
 judgments ; and this I know the colonel will maintain, on his death-bed 
 even, for he has written me out all instructions, in case of any accident 
 happening. I hope, therefore, you will be more careful and gr 
 for your own sake, and not swear yourself to anything either imparted to
 
 624 TACTS, I-AILTTBES, AND FEATJDS. 
 
 you in confidence, trust, and most sacred confidence, or without the know- 
 ledge of my husband, who is only anxious to do what is right, but will not 
 be betrayed, I can assure you, in his confidence without a full exposure of 
 all. You know the colonel received 7000 from India upon Agra Bank 
 shares, and also 1400 on Government Securities in Calcutta ; and his 
 notes left with me say that from that source my jointure money was 
 repaid. 
 
 '"The colonel, as you full well know, never borrowed a shilling from the 
 bank, save on Branksea estate and household furniture. You must allow 
 me to add, that it appears incomprehensible that you should have sent out 
 a document for the bank affidavit without a word or line of advice, and 
 more particularly as there is a letter of yours fully explaining almost exactly 
 the reverse to be the -case ; and, indeed, you wrote yourself in that letter the 
 very reply for the colonel to send the bank. 
 
 " ' You may rest assured you and your letters are safe if you do your 
 duty ; all your late letters state that you will write a letter of explanation 
 to-morrow, but that day has not yet arrived. Yours faithfully, 
 
 " ' MABT MUKBAY WATTGH.' " 
 
 " The above letter, although purporting to emanate from Mrs. Waugh 
 in your absence, at a 'great distance from Seville,' evidently fathers itself 
 upon you, it being in your handwriting the real truth being, as I sup- 
 posed, that you dictated it, and got Mrs. "Waugh to write the copy to be 
 sent to your solicitor, Mr. Bonnor, informing him of his ' perilous situa- 
 tion,' but the copy sent to me is certainly in your own handwriting. Pro- 
 bably you had not then left for the ' Wilds.' 
 
 " Last autumn I was informed by good authority that your man 
 Welby had got all your ' plate' in secret keeping, and, when I named this 
 to you, you did not deny it, but said that you would consider what was 
 best to be done about it, but the plate was not so valuable as was repre- 
 sented, as it only consisted of portions of the ' Carew, Maxwell, and 
 Waugh' families' old plate, and which you said was only worth from 100 
 to 200 altogether, and that you generally hired ' plate' for Mrs. Waugh's 
 large parties. 
 
 " I also informed you that it was rumoured that your housekeeper, Mrs. 
 Gerrard, has also possession of a considerable amount of your private pro- 
 perty, and that I have heard that the ' court officers' had been after her. 
 This, too, you did not deny, but, with a smile, said, ' Mrs. Gerrard would 
 prove too old for them.' 
 
 *' You have written to me as if I were in your power for rewards or 
 punishments at your pleasure. Now, I beg of you most distinctly to under- 
 stand, that neither by word, deed, counsel, or otherwise, have I mixed myself 
 up with you or your affairs improperly ; neither have I, up to this time,
 
 FACTS, FA1LUKE8, AIS'D FRAUDS. G25 
 
 disclosed, or made known, any of the secrets entrusted to me by you, or any 
 of the matters referred to in this letter. The withdrawal of ' your con- 
 fidence 1 from me is rather a relief than otherwise. 
 
 "At your break-up I was led to believe that good faith had not been 
 kept with you by the London and Eastern Bank, by their refusing to 
 advance the 15,000 to carry on the works at Branksea, as they had agreed 
 before me to do. I also believed that you had been badly advised by Mr. 
 Bounor and others to quit England, instead of meeting your difficulties 
 boldly in the face, as 1 recommended ; and, fully relying on the truthful- 
 ness of your several letters and statements to the effect that you had nume- 
 rous friends who would rally round you, and that from Mrs. Waugh'a 
 jointure, your brother's remittances, and other legitimate private sources, 
 I should be honourably paid for my loss at Branksea, and also all my other 
 current expenses incurred in attending to your affairs, and having confidence 
 in you as a gentleman, I confess that I willingly took up your cause a 
 second time, and have carefully, heartily, and faithfully served you, and 
 advocated your cause through evil and good report, as you know. From time 
 to time I have made most urgent appeals to you for some money on account, 
 but you have kept putting me off with, ' Wait a little longer,' and now, as 
 you cannot further use me, you abuse me, and try to pick a quarrel with, 
 me, on the ground that I have not been faithful to your interest. This is 
 a mistake. I have been faithful to you, and unfaithful to myself, by allow- 
 ing you to suck the orange dry without drawing a copper from you for my 
 long and devoted services to you. 
 
 " Mrs. Waugh authorized me to negotiate a loan of 5000 on her join- 
 ture, for which I was to receive 1000. I hold her and your note to this 
 eH'ect. You also stated that Miss Maxwell had 7000 coming to her, and 
 which was to pass through my hands, besides 3000 of Mrs. Waugh's 
 private money, and various other sources, and by means of these and simi- 
 lar promises, I was induced to discount Miss Maxwell's bill for 200 (or 
 rather to take up money at interest to enable me to do so). You also 
 undertook to cause 300 to be paid on my arrival in London in December 
 L have your letters promising all this, and much more, but not a single 
 promise have you fulfilled towards me. 
 
 " I have forgotten whether or not, in my last letter, I informed you that 
 Mr. Bonnor entertained strong hopes of being able to successfully resist his 
 liability on his eight bank shares, which he resold to you just before tho 
 bunk stopped payment. 
 
 " Mr. Bonnor tells mo he has obtained Mr. Stephens' (the late manager) 
 affidavit in his favour (Mr. B.'s), and last week Mr. Bonnor made a propo- 
 sition to me to come out to Cadiz to take your affidavit also. Mr. Bonnor 
 fully relies on your cordial support in this matter, because ho says that 'if 
 he does not set aside his liability, it will be certain destruction to him,' and 
 
 8 8
 
 626 PACTS, rAILTTKES, AND FRAUDS. 
 
 that both he and you will alike become annihilated, and 'like the baseless 
 fabric of a vision, leave not a rack (wreck) behind.' 
 
 "I have studiously avoided all reference to matters of a private and 
 sacred character, which it would be unmanly and dishonourable to mention. 
 I have been mindful only to toucli upon such topics of a public nature as 
 will best enable disinterested parties to judge between us, although your 
 conduct towards me throughout, but more especially your recent and 
 abusive letters, are calculated to destroy all consideration and sym- 
 pathy towards you ; yet I will not act a dishonourable part, either to you 
 or Mr. Bonnor. 
 
 " In conclusion, I have to request the payment of my account. The 
 amount is 1650, and a cheque for something on account will oblige, or I 
 must adopt such steps as counsel may advise. 
 
 " I am, yours, &c. " S. KEAL." 
 
 There was a note at the end : 
 
 " Mr. Bonnor writhed in his chair on reading this letter. I read it to 
 George Bonnor at his office, and in a conference of three hours which fol- 
 lowed, Mr. Bonnor did not impugn any of the statements, and admitted 
 that it was a proper letter to be sent to Colonel Waugh ; but as it appeared 
 directed against him more than against Colonel Waugh, lie implored me not 
 to make use of it to his prejudice." 
 
 " Private and confidential. 
 
 " Blane's Hotel, Cadiz, Jan. 2, 1858. 
 
 -my dear Sir, Your letter, dated Liverpool, Dec. 20, has just come 
 to hand, and as this is the first date that I have had an opportunity of writing 
 to you since my arrival in Spain, I shall give you a short history of my 
 proceedings. 
 
 " Colonel Waugh met me at Cadiz on the 26th ult. (we had a very 
 bad passage out), we at once proceeded to Seville, where both the Haffen- 
 dens had been waiting for me several days. When they found that I had 
 brought out no money with me, they became quite furious, as, during the 
 past three months, they had borrowed 800 on the strength of my several 
 letters and repeated assurances that the mortgage would be carried out. 
 The poor fellows almost became maddened to desperation; they charged 
 me with a breach of good faith towards them, and as being anything but a 
 man of business. However, when their rage had cooled down, I explained 
 the dreadful monetary crisis we had had in England, and delicately hinted 
 at the unfavourable circumstances which surrounded the case, arising from 
 the exposure of Colonel Waugh in the public papers. Upon this Admiral 
 Maxwell pitched into me right and left, in which the ladies joined, and so 
 I had to encounter the fire ol a legion of disappointed Hotspurs. At
 
 FACTS, FAILURES, AND FRAUDS. 627 
 
 length their steam was blown off, and we began to reason on the position 
 of nflairs, and to consider ns to what was best to be done. One proposed 
 one thing, and another another ; but no way could be seen to meet the 
 dilemma, until the end of the second day, when the Haffendens determined 
 to withdraw the Santa Maria Mine from the proposed mortgage, took all 
 the shares and documents from Miss Maxwell, and declared the agreement 
 between them and Colonel Waugh's family forfeited, and finally at an end ; 
 nnd at eight o'clock the same night they left Seville on horseback for 
 Trenzaneous, a town eighty miles off, to raise a sum of 500 or 600 on 
 the mortgage of the Santa Maria Mine ore, and Mark's shares. This was 
 absolutely necessary to meet their payments on the 1st inst. (Jan. 1, 1858), 
 and to throw off sequestration ; and so you see that our three months' 
 delay and broken promises have lost that mine to us and Colonel Waugh's 
 family for the present : so much for playing with people nnd their feelings 
 and property, especially when the sustenance of about 300 persons 
 depended on the regular payment for their labour monthly. The Haffen- 
 dens will now raise a sufficient sum of money to clear all up, and the mines 
 will be stopped for the present. I assure you I found it a most painful 
 and embarrassing case to meet and palliate. The Santa Teresa and 
 the mines I hare preserved intact ; and, in my opinion, we have still 
 the best of the bargain, as with those mines Colonel Waugh has never 
 had anything to do, and, until now, never heard of their existence. The 
 full particulars about these two mines I will explain to you oa my arrival 
 in England. 
 
 " Much good in many ways will arise out of my visit out here. I have 
 gone very fully into Colonel Waugh's affairs, both past, present, and the 
 probable future. He does not intend to return to England for the present,, 
 but in case of necessity he will go into n quiet hiding-place while the storm 
 blows over. The colonel has shown me letters wherein he has cautioned 
 Mr. Bonnor against making admissions to the bank respecting Mr. C. H. 
 Carew's or Mr. F. Carcw's supposed liability on their acceptances or other- 
 wise. Mr. B. was to declare, on behalf of C. W., that all the moneys 
 advanced to the Messrs. Carew, or either of them, were free gifts absolutely 
 from Colonel Waugh, and that the said Messrs. Carew were neither of 
 them indebted to the bauk to the extent of one farthing, inasmuch aa their 
 acceptances were covered by the borrowed notes given from time to time 
 to the bank by C. W. It is Colonel Waugh's express wish and desire that 
 the 37,000 secured by judgments on the Beddington estate should be 
 preserved intact to yourself (Mr. I.) and the younger branches of the Curew 
 family, and he has entrusted me with special instructions to settle the 
 matter with you and Mr. C. H. H. Carew, and ho (C. W.) will remain quite 
 passive in this matter. I have much to inform you about on my return. 
 I may say that Colonel Waugh has made a clean breast of various mutters,
 
 628 TACTS, FAILUEES, AND FBAUDS. 
 
 and his desire is to make restitution to you. Of course I never hinted that 
 you had sent me out about the mines. I thought it far the best to keep 
 your name sacred in the matter, so that neither him nor the Haffendens 
 know the names of the proposed mortgagees, therefore all the blame I took 
 on myself. The obvious reasons for this I will explain when I see you. 
 
 " On Dec. 9, Colonel Waugh sent a proposal to Lawrence for the 19th, 
 offering 2s. Qd. in six months, and 7s. Gd. in twelve months, but that pro- 
 posal is put in so vague a form that a fresh one has been prepared, and 
 which he sends by me to Lawrence. A vast struggle is to be made to get 
 the case adjourned sine die. If that can be done, the colonel says he can 
 pull all through this year, and liberate several sums of money to his use. 
 
 "Mrs. Waugh has authorized me to raise for her 1000 or 1500 on 
 her jointure to fight the colonel's battles, and keep the family out here ; 
 they are now living in a very humble manner, little better than cottagers. 
 They blame Bonnor very much, indeed ; but as he has to be used for our 
 purposes, the vile dog must be piped to, as and when his keep may be re- 
 quired, and the colonel says he dare but dance to the tune that is playing 
 to him, whatever that may be. The colonel has given me full power to act 
 for himself and family in all things, and independent of Mr. Bonnor. 
 
 "N.B. You will please consider this letter as confidential to yourself 
 and brother, and all the rest I will tell you when I see you. 
 
 "STEPHEN NEAL. 
 " Samuel Isaacs, Esq., London." 
 
 Mr. M. CHASIBEES, on the part of the defendant, said the real agreement 
 made between the parties was, that Mr. Isaacs should give Mr. Jfeal 1000 
 if the latter obtained the affidavit from Colonel Waugh, and Mr. Neal suc- 
 ceeded in enforcing his claim upon the judgments, but the document had 
 never been used. With regard to the different journeys to Spain, the 
 learned counsel contended that the whole of Mr. Neal's expenses had been 
 paid. 
 
 Mr. Isaacs, the defendant, on being examined, said Mr. Keal called at 
 his place of business to induce him to enter into various speculations with 
 which Colonel Waugh was connected. He asked him to invest 1000 for 
 the purpose of boring for coal at Beddington. In August, 1857, Mr. Neal 
 submitted to him certain letters of Colonel Waugh relating to mines in 
 Spain, which he said would realize a large fortune ; and as witness had 
 been a great sufferer by Colonel Waugh, he advised him to invest some 
 money in those mines. He then employed him to go to Spain to report 
 upon the mines. With reference to the affidavit, Mr. Neal called at the 
 latter end of January, 1858, and said he had been to Mr. Bonnor's office 
 and seen an affidavit of twenty or thirty pages, with a letter from Messrs. 
 Cbadfield and Co., which Messrs. Bonnor were then goiug to forward by -
 
 FACTS, FAILURES, A3TD FBAUDS. 629 
 
 express to Colonel Waugh. He said that was for the purpose of setting 
 aside his (Mr. Isaacs') claim to the judgments, and valued at 37,000. 
 He advised the defendant, it being most important that his claim should 
 be secured, that witness should allow him, to go out to Spain on his 
 account, in order to obtain for him a counter document. After some little 
 conversation witness agreed to that. The plaintiff then required a certain 
 sum of money to take with him for the purpose of assisting Colonel 
 Waugh, should he be in need. He asked for 250, which he had. Witness 
 told him that in the event of his obtaining the document for which he was 
 going to Spain, and if witness succeeded in getting a settlement of the 
 judgment in his favour, he would reward him liberally for the journey. 
 The affidavit had never yet been made use of. On that, or any other occasion, 
 witness never promised to give Mr. Neal 1000. . When Mr. Neal presented 
 him with an account of his claim after the third journey, he denied his 
 liability, and Mr. Neal said, " Give me what you please." Witness said 
 his brother was in Ireland, and that he had no means at his own disposal. 
 Mr. Xeal then went away. It was quite untrue that Mr. Neal ever men- 
 tioned on that occasion a balance of 1150. 
 
 Cross-examined. Witness had never any interest in the Branksea 
 works. He would swear he never saw before the letter produced from 
 Colonel Waugh saying he (witness) had in his possession a deed relative to 
 a quarter share in the alum mines. When Mr. Neal came from Spain he 
 showed him several of Colonel Waugh's letters, but he never saw the one 
 produced before. The debt due to witness by Colonel Waugh was for 
 money advanced upon bills. Witness never proposed to advance 1000 
 upon the bills. He would swear he never gave the 250 to Mr. Neal in 
 order that he might pay Colonel Waugh for signing the affidavit. He 
 knew Colonel Waugh was in needy circumstances, and he told Mr. Neal 
 to give him some money out of that sum or not, just as he liked. Witness 
 was very anxious to get the affidavit. He filed a bill in Chancery against 
 the Eastern Bank. It was still going on. 
 
 Mr. John Greenwood, attorney for Mr. Isaacs, in the Chancery suit, 
 "Isaacs v. Stewart and others," said the answers to the amended bill were 
 not yet filed. He was never consulted with reference to the affidavit. He 
 had seen the document. It had not been used, and, according to the 
 forms of the Court of Chancery, it could not be used. 
 
 Cross-examined. No attempt had been made to compromise the suit. 
 The question was whether Mr. Isaacs or the bank was entitled to 
 judgment. 
 
 No other evidence having been adduced, the counsel on each side 
 addressed the Court, and 
 
 Lord CAMPBELL summed up. In the course of his observations to the 
 jury, his lordship said it certainly did rather appear from the evidence that
 
 630 TACTS, FAILUBES, AND FEATJDS. 
 
 the defendant gave Mr. Neal the 250 with the intention that a portion of 
 it should be paid to Colonel Wangh for making a declaration in favour 
 with regard to the judgments ; but the jury would form their own opinion 
 upon the matter. 
 
 The jury, after a brief absence from court, returned a verdict for the 
 plaintiff Damages, 317 5s.
 
 APPENDIX. 
 
 THE LONDON AND COUNTY AND THE TIPPEEAEY BANKS. 
 (From the " Banker's Magazine") 
 
 THEBE cannot be a doubt in tbo mind of any person who has dispassion- 
 ately and impartially reviewed all tbo facts of the case In re Burmester 
 and Others, as brought out in the arguments of counsel before the Irish 
 Landed Estates Court that the decision which Judge Longfield gave on 
 the 6th ultimo is correct, as well in equity as in law. This, it will be re- 
 collected, was one of the numerous suits that have arisen out of the Sadlcir 
 frauds, and the main question at issue was, whether the official manager of 
 the Tipperary Bauk, or the London and County Bank, was entitled to the 
 proceeds of the sale of the late John Sadleir's Irish Estates ; both banks 
 being his creditors, and both having had the property in question pledged 
 to them as security for their respective debts. 
 
 A mere superficial glance at the relative positions of the litigant parties 
 would probably enlist the sympathies rather in favour of the unfortunate 
 and ruined shareholders of the Tipperary Bank, than of the well-to-do and 
 opulent proprietors of the London and County. Popular sympathy is 
 certain to bear towards that side which has suffered most, and which is the 
 weaker in the contest ; but in questions of abstract right and substantial 
 justice, it would bo fraught with consequences of permanent danger to 
 society in general, if the decision could bo taken upon first impressions 
 based upon feelings of commiseration, instead of upon mature judgment, 
 grounded on careful examination and calm reflection, as to the bearing of 
 the evidence pro and con. 
 
 In the case under consideration, it would bo difficult to deny that the 
 fault of misplaced confidence is chargeable to both parties ; but that was 
 an error which they shared at the time in connection with a largo propor- 
 tion of the moneyed world. The apparently inexhaustible resources, mental 
 as well as pecuniary the business-like habits, and the high social status 
 which John Sadlcir had so rapidly attained, naturally commanded a corres- 
 ponding degree of public trust ; and when it is recollected that the 
 Government of the day entertained so high an opinion of his financial
 
 632 APPENDIX. 
 
 knowledge and his individual influence, that they associated him in their 
 ranks as a member of the Treasury board, it can scarcely be matter of sur- 
 prise that bank directorates, both in England and in Ireland, should regard 
 it as an honour and an advantage to be able to point to him as one who 
 took a prominent interest in the management of their affairs. That he 
 was selected to preside over the London and County Board, and that the 
 Tipperary Bank shareholders appointed him as one of their directors, and 
 in order that his weight and influence might be brought to bear with 
 greater force in their favour made his brother, James Sadleir, their 
 chief mnr.ager, can therefore scarcely be brought against the proprietors or 
 directors of those institutions as a charge. The almost unlimited pecuniary 
 credit that was extended to him by his co-directors in both of these con- 
 cerns, is, however, a very different affair ; and had the decision been ad- 
 verse to the London and County Board, their shareholders would have as 
 much right to complain of them, as the Tipperary Bank shareholders have 
 to accuse those to whose care they had intrusted their money, of gross 
 negligence, amounting to a breach of trust. But it is the different course 
 of proceeding adopted by the two boards that constitute the right and the 
 wrong between them ; and the first cause of this difference of proceeding 
 being due to the shareholders themselves, it equally constitutes the right. 
 and the wrong as between them in the "assertion of their respective rights 
 against each other. The Tipperary Bank proprietors trusted to the 
 Sadleirs, and to the Sadleirs only ; but the London and County share- 
 holders, though probably entertaining equal confidence in the honour and 
 character of their chairman, took the precaution of surrounding him with 
 gentlemen of at least as high a position in the commercial, if not in the 
 political world, as Mr. John Sadleir men who had characters to lose 
 whose independent means placed them above temptation and who, they 
 were quite certain, would not only not lend themselves to dishonourable 
 courses, but who would protect the property of which they were the trus- 
 tees, from the dishonesty of others. In both cases, therefore, the share- 
 holders owe the results, in the first instance, to themselves. It is a fact on 
 record, and therefore cannot be disputed, that that extraordinary power of 
 fascination, which was the peculiarity of John Sadleir, was for some time 
 effectively exercised over his colleagues at the London and County Board 
 as shown by the accommodation which was afforded him out of the 
 funds of the bank, and the extent to which he was permitted to overdraw 
 his account. But this was not done altogether without security ; for they 
 had deposited with them, as a sort of collateral pledge, the title-deeds of 
 certain properties belonging to their chairman, which had been purchased 
 by him in the Irish Encumbered Estates Court, together with the Chandos 
 mortgage for 134,000. 
 
 Being largely in debt to the bank, and having imperative need for fur-
 
 APPENDIX. 633 
 
 thcr heavy advance?, partly to discharge pressing liabilities in connection 
 with the Tipperary Bank, an application which he made to the board for 
 :L-O was met by a demand for available security to cover the amount 
 then asked for, together with the balance of account already standing 
 him. There was but one mode by which that security could be 
 given, and that was by assigning the whole of his Irish estates to certain 
 trustees, with a power of sale for the benefit of the bank. This was done ; 
 and it is out of this transaction that the suit has arisen ; the Tipperary 
 IBank claiming the property under an equitable, but unregistered, mortgage 
 of a previous date. The official manager, acting on behalf of the Tippe- 
 rary Bank creditors, and of course of the shareholders also seeing that 
 the larger the amount of assets, the less would be their individual respon- 
 sibility alleges notice given to the London and County of the existence 
 of the prior mortgage at the time it was made ; and if this were proved, 
 not only would the London and County have no case to stand upon, but 
 their directors would be amenable to the serious charge of conspiring with 
 the Sadieirs to defraud the Tipperary Bank of its property. But the 
 proof of notice altogether fails ; the only evidence in support of it being 
 that Mr. Keating, one of the London and County directors, and a cousin 
 of the Sadlcirs, had assisted to negotiate the arrangement, and was one of 
 the trustees named in the deed. On the other hand, there is the fact that 
 the mortgage to the Tipperary Bank was never registered, and never in 
 any way made public. It is exceedingly hard, no doubt, that the Tipperary 
 Bank, from whom the money was obtained to purchase the property in 
 dispute, should be deprived of all share in it ; but the fault is their own, 
 or rather it ia the crime of those in whom they trusted, for that the con- 
 cealment was intentional the evidence leaves little even for questioning. 
 The law had provided a means by which such deeds might be made opera- 
 tive, as against all subsequent encumbrances ; and if the means was not 
 resorted to, it is not competent for the Tipperary Bank to take advantage 
 of their own laches. The reciting of the judge is sound law, " that the 
 question of the validity of the deeds must depend upon the nature of the 
 securities themselves, and the circumstances under which they were exe- 
 cuted, and not upon any assumption of what were the intentions of the 
 parties." 
 
 Now, the circumstances attending the execution of these rival deeds are 
 these : John Sadlcir having occasion for an advance in March, 1855, to 
 meet pressing engagements, applied to the bank, of which he was chairman, 
 to discount for him the acceptance of the Tipperary Bank for 20,000, 
 which they consent to do. Thereupon he desires his brother, as the manager 
 of the Tipperary Bank, to accept for that amount. This James Sadleir 
 refuses to do, although he had up to that time been his subservient tool, and 
 bad advanced to him, as he says, in his letter of refusal, 174,000 of the
 
 634 APPENDIX. 
 
 funds belonging to the bank, reducing it thereby to the verge of nun. As 
 the acceptance must be had, Keating, the cousin of the Sadleirs, and the co- 
 director of John in the London and County, is sent over to arrange about 
 some security which shall satisfy James's scruples ; and it is agreed that a 
 deed shall be executed by John, giving to James Sadleir and Keating, 
 jointly, full power to sell certain estates belonging to John Sadleir in Ire- 
 land, for the benefit of the Tipperary Bank, in consideration of certain 
 advances made and to be made to him, the said John Sadleir, and em- 
 powering the Tipperary Bank, or their trustees, in the meantime to take the 
 rents and profits arising from those estates on account of those advances. 
 
 That this document, which was duly executed, and in consideration of 
 which the required acceptance was given, is upon the face of it a good 
 equitable mortgage there can be no question ; but it was never registered, 
 although the machinery for registration in the Encumbered Estates Court 
 is so exceedingly simple and inexpensive ; and the explanation given by Mr. 
 Kennedy, the solicitor of the Tipperary Bank, who drew it up, why that 
 necessary process was omitted is, that if he had registered the deed it might 
 have injured John Sadleir's credit, thus showing that there was an object on 
 the part of those who acted for the Tipperary Bank in keeping the transac- 
 tion concealed, viz., to uphold the credit of their own directors, the two 
 Sadleirs. 
 
 John Sadleir's difficulties continued to increase rapidly, and the Tippe- 
 rary Bank being almost in extremis in consequence of the large advances it 
 had made to him, pressed upon him to reduce his debts ; and in July 
 James Sadleir applied to the London and County on behalf of his brother 
 and the Tipperary Bank, conjointly, for an advance of 90,000. He had an 
 interview with the directors of the London and County, at which he 
 furnished them with an account of John Sadleir's affairs, and the securities 
 it was proposed to deposit for the money John already owed to the London 
 and County, together with the new loan then asked for. After some nego- 
 tiation his proposal was accepted; the deeds were executed, formally 
 assigning to J. W. Burmester, F. J. Law, and James Sadleir all the Irish 
 estates of John Sadleir in trust, including those which had been previously 
 mortgaged of the Tipperary Bank. By virtue of these deeds, which were 
 duly registered, the London and County claimed priority over the equitable 
 mortgage of March, contending that the claim to the Tipperary Bank upon 
 that mortgage was barred by fraudulent concealment. 
 
 The ruling of the judge upon this, which is the whole point of the case, 
 is clear, simple, and conclusive. He says, " the claim of the London and 
 County Bank is simple, and it rests upon their opponents to displace it. 
 They claim under the first registered deed, and they are entitled to priority 
 (anless actual notice can be proved against them) over any unregistered 
 contract." And he adds that, "to rule otherwise would be to declare that
 
 APPENDIX. 635 
 
 nil the directors of the London and County Bank were engaged in a con- 
 spiracy to defraud the Tipperary Bank, which is most unlikely on the one 
 hand, and is distinctly contradicted by the testimony of the witnesses 
 on the other." A fact strongly corroborative of the bond fides of the Lon- 
 don and County is, that the sum they advanced in August, when the deeds 
 were executed, and which amounted altogether to 95,000, was very nearly 
 equal to the full value of the property included in the equitable agreement 
 of March, exclusive of the estates, the title-deeds of which were in their 
 hands already as collateral security for advances previously made. The 
 appointment of James Sadleir as one of the three trustees was, Judge Long- 
 field considers, consequent upon the Tipperary Bank for whose benefit the 
 money was partly required having undertaken as an additional security to 
 the London and County to guarantee John Sadleir's debts ; and it appears 
 that the whole of the money was drawn out by the joint draft of the three 
 trustees, not in favour of John, but of James Sadleir as manager of the 
 Tipperary Bank, to whose credit -10,000 of the money was actually paid 
 into Glyn's, thus reducing John Sadleir's account with them by that 
 {mount, and relieving their immediate necessities. 
 
 Upon the question of notice one very strong fact came out in the course 
 of the proceedings. When the deeds were executed, Mr. Stevens, the soli- 
 citor of the London and County, was sent to Ireland to register them, and 
 although he consulted Mr. Kennedy, the solicitor of the Tipperary Bank, 
 that gentleman never mentioned the existence of the equitable mortgage of 
 the previous March, though he did state that there were certain other liens 
 upon the property by a Mr. Eyre, which the London and County insisted 
 upon having cleared off before they made good the advance, 
 
 Sudi is a general resume of the facts, upon which Judge Longfield has 
 decided in favour of the London and County Bank, and however much the 
 position of the Tipperary Bank shareholders is to be commiserated, it is 
 impossible not to recognize tho truth of the learned judge's dictum when he 
 say?, " I cannot be influenced by any considerations of the loss which may 
 fall upon the insolvent shareholders and creditors of the Tipperary Bank. 
 I must not, to alleviate their loss, indict an injustice on the equally inno- 
 cent shareholders of the London and County Bank." In concluding his judg- 
 ment, Judge Longfield expresses a wish that in a case of so much import- 
 ance an appeal should bo made to the highest tribunal. In that wish few 
 who care for tho interests of those who have already suffered so severely w ill 
 join. However desirous it may be to have the case re-argued and decided 
 finally, so as to prevent expensive litigation in future cases of a similar 
 nature, still, as there would be little or no chance of reversing tlie 
 common sense aa well as obviously equitable decision of Judge Longfield, 
 it would indeed bo a subject of ngn-t if more mouey were wasted in what 
 would, in that case, bo useless litigation ; and it would be most unjust to
 
 636 APPENDIX. 
 
 the creditors that the proceeds of the Sadleir estates should be further 
 diminished by the costs of such proceedings. 
 
 ENCUMBERED ESTATES COUET. 
 DUBLIN, December 6, 1858. 
 
 THE JUDGMENT IN EE BUEMESTER'S ESTATES. 
 
 JUDGE LONGFIELD delivered judgment as follows : This case is a contest 
 for priority between the London and County Joint-stock Bank on the one 
 side, and the Tipperary Joint-stock Bank on the other side, both banks 
 being undoubted creditors of the late John Sadleir, and incumbrancers on 
 the estate. The claim of the Tipperary Bank rests upon a certain equitable 
 memorandum or agreement, bearing date 15th of March, 1855, which has 
 not been duly registered. The London Bank rests its case upon a deed 
 (one of twenty-one executed on the same day), by which the legal estate 
 was conveyed to J. W. Burmester, Farmery John Law, and James Sadleir. 
 This deed was only registered, but no trusts were declared by it. There 
 was however, it is alleged, a cotemporaneous declaration by the grantees of 
 a trust to sell for the purpose of paying the large debt which was then due 
 by John Sadleir to the London and County Bank, as well as a considerable 
 advance which was then about to be made to him. Both parties also 
 rely on the effect of the two deeds bearing date, respectively, the 7th 
 and 8th of September, 1855. The Tipperary Joint-stock Bank was 
 established in the year 1842, and James Sadleir, a brother of the late John 
 Sadleir, was from the commencement its managing director. In the deed 
 by which the bank was constituted, there are several clauses to regulate the 
 powers of the directors, and the manner in which those powers should be 
 exercised and the general business of the bank conducted, but it appears 
 that those clauses were habitually disregarded from the beginning, and that 
 James Sadleir, the managing director, was permitted to exercise uncon- 
 trolled authority in the management of the bank, without the slightest 
 attempt at interference on the part of the directors, or of the shareholders 
 at large. This state of things is admitted, and is even relied upon in argu- 
 ment by both the contending parties. Even in such matters as discounting 
 bills permitting customers to overdraw their accounts to any extent 
 Mr. James Sadleir acted according to his own unlimited discretion. Among 
 the parties who overdrew their accounts to a considerable amount, was the 
 late John Sadleir. Indeed, it appears to have been the state of hisaccount that 
 ultimately drew down ruin upon the Tipperary Bank, and the objection in 
 this case is filed by the official manager for the purpose of recovering some 
 part of the large balance which was due to the bank by the late John Sad 
 leir at the time of his decease. There is no evidence to show for what pur- 
 poses all those sums were borrowed, but it is stated and admitted that a 
 considerable portion, probably the chief part thereof, was borrowed for, and
 
 APPENDIX. 637 
 
 applied to, tho purpose of buying lands in the Encumbered Estates Court, 
 which began its sales in tho year 1850. Few men purchased more exten- 
 sively or more judiciously than he did, and the increase in the value of 
 land since the time when he began to purchase in this court has been so 
 great, that one cannot doubt but that if he had confined his speculations to 
 Irish land he would have been able, not only to fulfil all his engagements, 
 but to realize a very handsome fortune. In order to understand the manner 
 in which it is alleged that the London and County Bank and the Tipperary 
 Bank became related to each other through their common relation to John 
 Sadleir, I must, for the present, leave him in the midst of his successful 
 career, drawing excessive sums of money from the Tipperary Bank for his 
 Irish land purchases, and, perhaps, for other purposes also, and proceed to 
 his connection with the London and County Bank. He had become an exten- 
 sive landed proprietor, a member of Parliament ; ho had many of his near 
 relations in Parliament, and was a powerful and influential member of a 
 powerful and influential party. He had in tho year 1849 (before ho began 
 to purchase land) become a director and chairman of tho London and 
 County Bank, and, in violation of the by-laws of the bank and of the 
 duties of his co-directors, and of his own duty as chairman, he obtained 
 considerable sums of money from this bank also. The directors defend their 
 conduct on this occasion, and allege that those advances were made to John 
 Sadleir in the same manner only as they would have been made to any other 
 person, on obtaining sufficient security that the by-laws of the bank 
 obliged them to require such security in their dealings with their co-direc- 
 tors, and that, without the light which subsequent experience throws upon 
 past transactions, there was at the time every reason to trust, and none to 
 distrust, John Sadleir. I cannot agree with any part of this defence. The 
 directors neglected their obvious duty to the bank in all their dealings with 
 their chairman. They permitted him to overdraw his account to an exces- 
 sive amount without any adequate security. Indeed, such transactions 
 must occur when the chairman is permitted habitually to overdraw his 
 account. It cannot be expected that the co-directors, many of them, 
 perhaps, introduced into the bank by hia influence, or the officers, who are 
 in some respects dependent on the chairman for tho emoluments and com- 
 forts, and, perhaps, to some extent for the stability of their offices, should 
 be very vigilant in scrutinizing his accounts or in weighing the value of his 
 securities. The course for men of courage and honesty to take, under such 
 circumstances, is to tell the chairman that the first duty of a bank is to 
 provide for the security of its depositors ; that it requires the assistance of 
 the chairman's judgment in dealing with extraordinary cases ; that they 
 are deprived of this assistance when tho chairman overdraws his account, 
 and is a habitual applicant for extraordinary advances, and that he must, 
 therefore, cease to be chairman, and must not even remain a director of tho
 
 APPENDIX. 
 
 company. No director, however, took tins step, and I am therefore not sur- 
 prised to find that the chairman's account went on increasing that the 
 by-laws afforded no protection to the bank that they were either ex- 
 pressly suspended in his favour, as in the case of the by-law limiting 
 the amount of the advance to be made to him, or were habitually neglected, 
 as in the case of the by-law requiring a half-yearly report of the state o* 
 the securities. Besides the general course of dealing of John Sadleir with 
 the London and County Bank, some particular instances are adduced to 
 show the extreme partiality with which his conduct was overlooked by his 
 co-directors, and his securities accepted without question or examination. 
 Thus, in the case of the Chandos mortgage, as it is commonly called in the 
 evidence in this matter, this was a mortgage for the sum of 134,000 given 
 to John Sadleir by the Marquis of Chandos on his English estates, dated 
 in July, 1849. This was first offered to the bank as a security in 1852, 
 and it is made a charge against the directors that they made no inquiries 
 to ascertain whether John Sadleir was really the owner of the mortgage. 
 I cannot concur in that charge. There was no circumstance to put them 
 upon inquiry, or even to suggest the name of any person from whom such 
 inquiry could be profitably made. He was the apparent owner on the face 
 of the deed, and had the custody of the instrument. He produced a letter 
 from the Marquis of Chandos on the subject, and the loan was transacted 
 with as much openness as could reasonably have been expected. The right 
 to the mortgage is in litigation. The money, about 100,000, is therefore 
 in danger of being lost, but the loss is intended to fall upon the share- 
 holders, not on the directors. Another transaction connected with this 
 mortgage places the conduct of the directors in a still worse light. In 
 August, 1853, John Sadleir proposed to reduce his debt to the London and 
 County Bank by borrowing 55,000 on the Chandos mortgage, which was 
 one of the securities then held by that bank. The deed was accordingly 
 sent out and left with Mr. Barker, the solicitor, for the parties who were 
 about to lend the money. The rest of the transaction was entrusted to the 
 honour of John Sadleir, who received the money, but converted it to his 
 own purposes, and did not pay it to the bank. It is true that Mr. Wilkin- 
 son, in his evidence, states that he believed the 55,000 was paid to the 
 bank ; but looking at the manner in which he gave his evidence, and to the 
 testimony of the other witnesses, I cannot doubt but that John Sadleir 
 kept the money, and thus showed himself to be a man utterly undeserving 
 of confidence, and that the directors complained of his conduct on that 
 occasion, and yet continued to retain him as their chairman. With such a 
 chairman it was impossible that proper vigilance should be kept over the 
 dealings of the other directors and officers of the bank, and the report of 
 the securities committee, on at least one occasion, gives an alarming picture 
 of the state of the accounts between the bank and its chairman, directors*
 
 APPENDIX. 639 
 
 and principal officers. It is, however, only justice to state that none of the 
 present directors of the bank appear to have been engaged in those dis- 
 creditable transactions, and I heard with much pleasure the statement 
 made by one of the witnesses that none of the existing directors owed any 
 money to the bank. I have referred, in some detail, to those matters in 
 order to ascertain the grounds upon which my judgment rests. I think 
 the charges made by the official manager of the Tipperary Bank against 
 the directors of the London and County Bank in 1854 and 1855 are to a 
 great extent established, and that the defence sent up for their conduct has 
 failed ; but I consider those charges immaterial to the question now before 
 me. They could only be relied upon to corroborate any direct evidence 
 adduced to show that the directors, in August, 1855, knew that they were 
 advancing the money of the bank on a worthless security. In themselves 
 they are irrelevant, for I cannot concur in the view put forward hi the able 
 statement by which the case was opened, and which assumed that every 
 advance recklessly made by the manager of the Tipperary Bank was a 
 fraud upon that bank, and that similar advances made by the managers of 
 the London Bank were frauds committed by the latter bank. I must 
 consider that both banks were in the same predicament. The managers of 
 both banks neglected their duty, yielding to the influence which John 
 Sadleir exercised, in the one case as brother of the manager, in the other 
 case as chairman of the bank. But all this does not prove any connection 
 between the two banks, or that either had any knowledge of John Sadleir's 
 connection with the other. However, it is proved that among the docu- 
 ments from time to time discounted for John Sadleir by the London Bank, 
 there were letters of credit of the Tipperary Bank, and it is contended 
 that the number, and amount, and the form of those orders were such as 
 ought to have excited in the minds of the managers of the London Bank 
 suspicion that John Sadleir, through his brother James, exercised an undue 
 influence over the Tipperary Bank. The substance of the argument drawn 
 from the amount of those orders is, that John Sadleir's rents paid into the 
 Tippcrary Bank did not exceed 80,000 a-year, while it appears that in 
 the year 1855 the letters of credit to the amount of 107,000 of the 
 Tipperary Bank were negotiated by, or in behalf of, John Sadleir, and 
 that the London Bank must thereby have known that John Sadleir 
 was obtaining those orders without consideration. I do not yield to 
 that argument. John Sadleir's transactions were so complicated and 
 extensive that no man could have drawn any inference from any amount 
 of paper of any description that ho brought into the bank, and if letters of 
 credit of another bank were brought in and were duly honoured there was 
 no reason to make any inquiries about them. Mr. M'Eewan, the manager 
 of the London and County Bank, distinctly swears tliat there was nothing 
 unusual or contrary to banking rules in the manner in which these letters
 
 640 APPENDIX. 
 
 of credit were passed, and the official manager of the Tipperary Bank ha3 
 brought no evidence to contradict that assertion. Those orders must, in fact> 
 have been generally taken up with money supplied by John Sadleir, as 
 their amount, together with the sums lent for the purpose of purchasing 
 Irish land, far exceeds the debt due by Sadleir to the Tipperary Bank. 
 But the letter of the 16th June, 1853, from Mr. Frith to John Sadleir, is 
 relied upon as showing that these letters, both in amount and form, were 
 in fact looked upon with suspicion by the bank, and the subsequent change 
 in their form was urged as a proof of the knowledge of the London and 
 County Bank of the undue influence which John Sadleir exercised over his 
 brother James. I do not view it in that light. The nature of letters of 
 credit was well known. In form it was a request from the Tipperary Bank 
 to its correspondent in London, Messrs. Glyn and Co., to honour the 
 drafts of John Sadleir to a certain amount, after the expiration of a par- 
 ticular period therein named. The proper mode of using them would be 
 for John Sadleir to keep the letter, or to present it to Mr. Glyn ; and when 
 the proper time arrived to draw a cheque on Messrs. Glyn and Co. for the 
 amount specified in the order. It is proved not to be unusual for banks to 
 discount such letters, but they were not strictly negotiable. The London 
 and County Bank, if those letters of credit were dishonoured, would have 
 had no remedy against either Glyn's Bank or the Tipperary Bank. Its 
 remedy would be only against John Sadleir. His remedy would be only 
 against the Tipperary Bank, and theirs against Messrs. Glyn and Co. The 
 inconvenience of the roundabout liability on those letters of credit was not 
 felt in practice, as the holders regard more the certainty that they will bo 
 regularly paid than the nature of the remedy which they would have in 
 the event of then- being dishonoured, and as a set-off they had the conve- 
 nience of not being liable to stamp duty. But when the London and 
 County Bank saw the magnitude of those orders, they required them to be 
 given in a form to bind the bank which issued them ; and this is accordingly 
 done, and the form is changed. I see ha this no proof of any undue influ- 
 ence over the Tipperary Bank. It would equally have been done if John 
 Sadleir had given to the Tipperary Bank full value for those orders. It 
 would not be an unreasonable request to be made to a bank by a customer, 
 whose transactions with it amounted to 100,000 a-year, to say, " I wish 
 to have your letters of credit given in a form in which they would be 
 negotiable in London." I rather think the London directors would have 
 felt considerable astonishment if the Irish country bank had not at onca 
 altered its forms to meet the views of the metropolitan establishment. 
 Mr. Frith' s letter shows that the London and County Bank was by no 
 means anxious to get those orders, and it rather disproves the notion of any 
 conspiracy among the directors of the London and County Bank to rob 
 the Tipperary Bank through the instrumentality of John Sadleir, and yet*
 
 APPENDIX. 641 
 
 unless it is used for this inference, the evidence is immaterial. The main 
 question will turn on the proof of notice, actual or constructive, of the 
 memorandum of the 15th of March, 1855, and it would be difficult to 
 draw any inference of notice of that memorandum from facts which occurred 
 before that memorandum was in existence, or even in contemplation ; and 
 if any inference was to bo drawn, it would be rather on the other side, 
 since the more reason there was to believe that John Sadleir exercised an 
 unlimited influence over James, the less reason there would be to suspect 
 that James had required any security from John. For these reasons, which 
 I have endeavoured to state very concisely, I have formed a very decided 
 opinion that the rights of the parties claiming under the different securities 
 must depend altogether on the nature of those securities, and the circum- 
 stances under which they were executed. The following is a short account 
 of the circumstances preceding and attending the execution of the docu- 
 ment of the 15th of March, 1855, which is the security on which the 
 official manager of the Tipperary Bank relies : On the 6th of March, 1855, 
 John Sadleir applied for and obtained a promise from the directors of the 
 London and County Bank to discount an acceptance of the Tipperary 
 Bank, at two months' date, for 20,000. This is urged as a clear proof 
 of the improper control which John Sadleir exercised over the Tipperary 
 Bank. I cannot see it in that view without the light which subsequent ex- 
 perience has shed on the transaction. John Sadleir might have procured 
 the acceptance of the Tipperary Bank in exchange for tenants' notes or 
 other Irish securities satisfactory to the Tipperary Bank, although they 
 might not be negotiable in London. In fact, he had not the acceptance in 
 his possession at the time, neither had ho such influence over lus brother 
 James as to enable him instantly to procure it. James Sadleir, when 
 applied to by his brother, refused to accept the bill, and wrote a very 
 angry letter to John Sadleir, dated March 7, and in his correspondence of 
 that week he complained of the unsuccessful speculations and the large 
 advances (about 174,000), which had brought his bank to the brink of 
 ruin, and ho declared that he would not make further advances without 
 security and authority to sell the Irish estates. On this Mr. Keating, their 
 cousin, who was a director of the London and County Bank, was sent over 
 as ambassador from John Sadleir to the Tipperary Bank. The account 
 then given by Mr. Murphy and Mr. James Baron Kennedy of the prepa- 
 ration of the memorandum of the 15th is this : On Monday, the 12th of 
 March, James Sadleir, Robert Keating, Mr. Kennedy, the solicitor for 
 the Tipperary Bank, and some of the directors of that bank, met by 
 appointment in the bank parlour of Clonmel, and calling in the aid of 
 Mr. Murphy as counsel, the memorandum of the 15th of March was pre- 
 pared, and was entrusted to Mr. Keating, together with the acceptance of 
 the Tipperary Bank for 20,000, with instructions not to deliver the latter 
 
 X T
 
 APPENDIX. 
 
 to John Sadleir until the former was duly executed. Keating performed 
 his task with fidelity ; he altered the memorandum, by inserting some 
 denominations of land which had been inadvertently omitted, and he got 
 it duly executed by John Sadleir, in the office of the London and County 
 Bank, in the presence of Mr. Nichols, the secretary to the bank, who set 
 his name to it as a subscribing witness. This latter circumstance was 
 pressed a little as a proof of notice, but I consider it immaterial, as ilr. 
 Nichols' evidence is very distinct, that he signed the document as witness, 
 without any knowledge of its contents, and that he was in the habit of 
 attesting documents in that way. It is also urged that the delay of more 
 than a week, which occurred between the agreement of the directors of the 
 London and County Bank to discount the acceptance, and the presentation 
 of that acceptance by John Sadleir, ought to have led the directors to 
 suspect something wrong. I see nothing in the matter to have caused them 
 a moment's thought. When once the consent had been given, the dis- 
 count itself would have been matter of routine. The delay might have 
 been caused by many reasons, but surely it cotild not have suggested to any 
 mind that John Sadleir possessed unlimited influence over James, when it 
 was the absence of that unlimited influence that had been the cause of that 
 slight delay. The form of the memorandum of the loth of March was an 
 agreement by John Sadleir in consideration of advances made, and to be 
 made, by the Tipperary Bank, to give James Sadleir and Eobert Keating 
 full power to sell the lands mentioned in the schedule annexed thereto, and 
 in the meantime to receive the rents and profits, to pay the sums due to 
 the bank, with the usual agreement for further assurance. It was a good 
 equitable mortgage, of which James Sadleir and Robert Keating were the 
 trustees. This document was not registered. Mr. Kennedy's evidence on 
 this point in cross-examination is, " James Sadleir gave me instructions not 
 to register the deed, although I told him the effect of not registering it. I 
 advised him to register it, and he said not. He said that the effect of it 
 might be to injure John Sadleir's credit ; he would not have it registered." 
 This is fully corroborated by Mr. Kennedy's letter to Mr. Murphy on the 
 preparation of the more formal deed which was to carry out the intention 
 of the parties, and which shows the anxiety of the parties that nothing 
 should appear which might show to the public that John Sadleir had given 
 any security or mortgage affecting his Irish estates. However, notwith- 
 standing the assistance which he received on this occasion from the Tip- 
 perary Bank, he fell again into difficulties, from which the Tipperary Bank, 
 itself being in a similar state of embarrassment, was unable to relieve him ; 
 and James Sadleir went to London, in order to procure a large advance 
 from the London and County Bank to John Sadleir. Accordingly, he had 
 an interview with a committee of the directors, to whom he professed to 
 give an account of the state of John Sadleir's affairs, and of the security
 
 APPENDIX. 648 
 
 which ho proposed to offer, not only for the largo sums which were already 
 due, but also for the further loan of 90,000, which was required to meet 
 his pressing engagements. This took place in the hist week of July, 1855, 
 and the proposal then made was substantially, although not hi form, 
 accepted. Mr. Wilkinson, the solicitor of the London and County Bade, 
 was directed to make a report to the board of the securities offered on behalf 
 of John Sadleir, and the view which he took of his instructions, and of his 
 duty as solicitor, was to prepare a report simply describing the securities 
 according to James Sadleir's statement of their nature and value, without 
 any comment, even when that statement was palpably erroneous. Tbo 
 report was adopted, and never, perhaps, was a transaction of such mag- 
 nitude negotiated and completed with such a cursory and negligent exa- 
 mination of the securities. Accordingly, twenty deeds are executed on the 
 2nd of August, assigning his Irish estates in form to J. W. Burmester, F. 
 J. Law, and James Sadleir. Those deeds were duly registered. They 
 were mere assignments of the properties to the grantees. The trust was 
 not declared in the body of the deeds, but they were undoubtedly executed 
 to secure the debt due to the London and County Bank, and a valid decla- 
 ration of trust was subsequently executed. The London and County Bank 
 chum priority by virtue of those deeds over the equitable mortgage of the 
 15th of March, on the grounds of their having been duly registered, and of 
 their passing the legal estate, and of their having been accompanied by the 
 possession of the title-deeds, and of the alleged fraudulent concealment of 
 the equitable mortgage ; and on an examination of all the evidence and 
 documents in this case, I am of opinion that they are entitled to the 
 priority which they claim. Their case is a very simple one, and it rests 
 upon their opponents to displace it. They chum under the first regis- 
 tered deed, and they are entitled to priority (unless actual notice can bo 
 proved against them) over any unregistered contract. The word "fraud" 
 has been frequently used in the argument, but unless there was notice, I do 
 not understand how there can have been any fraud relevant to the matter 
 in issue. On the point of notice, not a single fact is elicited which 
 would suggest the belief that any one of them had notice (or even 
 a suspicion, although that would not be material) that John Sad- 
 leir had given the memorandum of the 15th of March, or any other 
 charge on his real estates, to the Tippcrary Bank. The official 
 manager produces no witness to prove notice, or any fact suggestive 
 of notice. Moreover, it is proved by the concurrent testimony of 
 several witnesses that James Sadleir, the managing director of the Tip* 
 perary Bank, was asked by Mr. Wlicdtou, the chairman of the com- 
 mittee of directors of the London and County, when they were hi negotia- 
 tion for the loan and securities in July, 1855, whether John Sadleir owed 
 any money to the Tippcrary Bank; to which ho replied, in a careless moil-
 
 644 APPENDIX. 
 
 ner, that he owed about 10,000. He -was then asked whether the bank 
 held any security, and he answered that it did not. I cannot believe that 
 all the evidence given before me is that of perjured witnesses, and that the 
 directors of the London and County Bank, with knowledge of the condition 
 of affairs, and without any prospect of gain to themselves or to their bank, 
 were engaged in conspiracy to defraud the Tipperary Bank by making large 
 advances to John Sadleir. The sum of 95,000 advanced in Angust, 1855, 
 to John Sadleir, was very nearly equal to the full value of the estates in- 
 cluded in the agreement of March, exclusive of those lands already pledged 
 by deposit of title deeds to the London and County Bank. The evidence 
 rather shows that both John Sadleir and the Tipperary Bank were unable 
 to meet their engagements the failure of John Sadleir would bring instant 
 ruin to the Tipperary Bank, and that therefore its manager, James Sadleir, 
 and John Sadleir engaged in a fraud to obtain a large advance of money 
 from the London and County Bank upon representations which they knew 
 to be worthless. On the whole, I must consider the charges of actual 
 notice and actual fraud in the body of directors as being effectually dis- 
 proved, and it remains only to consider the legal effect of that actual know- 
 ledge which really did exist in certain individuals. Three persons engaged 
 in the transaction certainly had knowledge of the existence of the agreement 
 of the 15th of March, 1855, namely, John Sadleir, the chairman of the 
 London and County Bank, Robert Keating, one of the directors, and James 
 Sadleir, the manager of the Tipperary Bank and one of the trustees of the 
 deeds of the 1st of August, 1855. Even if it could be contended, with 
 respect to ordinary cases, that notice to the chairman was notice to the 
 bank, still there could be no room for such an interference in this case. 
 John Sadleir was not acting as an agent of the bank on this occasion, nor 
 were the directors reposing any confidence in him. They were holding him 
 at arm's length so much so, that they would not accept his statement of 
 his assets except on the guarantee of his brother James. The notice to 
 Robert Keating is not liable to the same observation, but I consider his 
 notice immaterial. His knowledge was knowledge of a document which it 
 was the intention of all parties to it from the beginning to keep secret. 
 The memorandum of March was not a document accidentally left without 
 registration. It was left unregistered in contradiction of the policy of the 
 Registry Acts, for the purpose of keeping that secret which the Legislature 
 intended to be disclosed. It would be contrary to every principle of justice 
 to extend any presumption of notice to such a case. In order to judge of 
 the effect of the notice to James Sadleir, it is necessary to consider the rea- 
 son upon which it has been held that notice of a prior unregistered instru- 
 ment prevents (hi equity) a party taking under a subsequent instrument, 
 duly registered, from availing himself of the priority given to him by the 
 terms of the Registry Act. The first instrument is binding, in moral equity,
 
 APPENDIX. 645 
 
 on the granter. It is a fraud on his part to execute a second instrument 
 in violation of it, and the second grantee taking, with knowledge of that 
 fraud, becomes a participator hi it, and cannot rely upon a deed which ho 
 knew to be fraudulent at the tune when he became a party to it. Moral 
 fraud, which requires actual notice, is the foundation of the rule. Notice 
 to the agent in the transaction is notice to the party himself, who has put 
 the agent in his place for the purpose of managing the transaction. If this 
 were not the rule, a purchaser might always avoid notice merely by em- 
 ploying an agent to do his business. But it is difficult to apply such an 
 argument to the case of knowledge possessed by a mere trustee one John 
 Doe or Richard Koc to whom the parties, for some purpose connected 
 with the rules of conveyancing, find it convenient to give the legal estate. 
 It frequently happens that the legal estate (as in the case of merely equitable 
 mortgages) remains in the mortgagor, who thereby becomes a trustee for 
 the mortgagee ; but it never has been contended that his knowledge of a 
 prior unregistered equitable mortgage executed by himself would have the 
 effect of setting it up against the subsequent equitable instrument duly 
 registered ; and if he presented a petition for sale, the Court would distri- 
 bute the proceeds according to the Registry Acts, without considering what 
 equities personally affected the mortgagor himself. He would be allowed 
 no voice in determining the question for what party he should be consi- 
 dered a trustee. It is true that in order to defeat a settlement it is often 
 important to fix the trustees with notice of prior equities ; but this is for 
 the protection of the issue of the marriage. Notice to the trustees is re- 
 quired in addition to, and not hi substitution of, notice to the parents. No 
 case has been cited in which, hi the absence of notice to the contracting 
 parties and to their agents, a prior unregistered instrument has been set up 
 in consequence of a notice of it in a bare naked trustee of the settlement. 
 But this case rests upon still stronger grounds. James Sadlcir was not so 
 much a trustee for the London and County as for the Tipperary Bank. 
 That bank was intended to have an interest in the deeds of the 1st of 
 August, as it was expected to guarantee the payment of the debt due by 
 John Sadleir. It was right, therefore, that the Tipperary Bank should be 
 consulted hi the nomination of the trustees, who were to carry out the sales, 
 and this was fairly done by appointing James Sadleir, the manager and 
 director of the Tipperary Bank, to be one of the trustees on the part of the 
 Tipperary Bank, hi addition to two trustees appointed on behalf of the 
 London and County Bank. This is confirmed by the subsequent conduct 
 of the parties. The money, 95,000, lent on the security of those deeds of 
 the 1st of August, is placed to the credit of the three trustees, to be drawn 
 out on their joint drafts. They disburse it in drafts, not hi favour of John 
 Sadleir, but of James, the manager of the Tipperury Bank, and when the 
 money is thus placed within his control, he pays nearly one half of it viz.,
 
 646 APPENDIX. 
 
 more than 40,000 into Glyn's Bank to the credit of the Tipperary Bank, 
 thus reducing its account with John Sadleir, and relieving its own most 
 pressing necessities. It is true that the account with John Sadleir subse- 
 quently increased, and that the Tipperary Bank failed; but those sub- 
 sequent advances were made by James Sadleir with the full knowledge that 
 they never could be paid. Early in August, after the execution of the 
 deeds of the 1st of August, the London and County Bank sends Mr. Ste- 
 phens, one of their solicitors, to Ireland to make further inquiries respect- 
 ing the properties, and to register the deeds. He applied to Mr. Kennedy, 
 the solicitor for the Tipperary Bank, for information and for assistance in 
 registering the deeds. Mr. Kennedy did not disclose the memorandum of 
 the 15th of March, which he thought was abandoned, and which he knew 
 was to be kept a secret ; but he does inform Mr. Stephens that Mr. Eyre 
 held securities affecting some of the estates. Mr. Stephens then wrote to 
 his clients in London, and accordingly part of the money about to be lent 
 was stopped until those securities were released. Mr. Kennedy also gave 
 some advice and assistance in registering the deeds, and it is contended that 
 this made Mr. Kennedy the solicitor and agent of the London and County 
 Bank, for the purpose of fixing them with the notice which he possessed of 
 the agreement of the 15th of March. It would, I conceive, be inequitable, 
 and contrary to the principles upon which notice to the agent is held to be 
 notice to the principal, to hold that the purchaser (who employs an agent 
 who really does the work) is to be affected by notice given to a person who 
 is employed only for some specific purpose, and who is under no obligation 
 to communicate the knowledge which he possesses. Two deeds are executed 
 in September, the utility of which I do not comprehend. I think the 
 proper mode would have been to have only one deed instead of two, and 
 for some tune I looked with great suspicion upon the first of those deeds, 
 dated 7th September, declaring a trust for John Sadleir. Their effect was, 
 oy the first, to declare a trust by the three trustees for John Sadleir ; and 
 by the second, bearing date the following day, but obviously forming part 
 of the same transaction, the trusts are declared to be, in the first instance, 
 to pay the debt due to the London and County Bank, and out of the resi- 
 due to pay the debt due to the Tipperary Bank. Under those deeds por- 
 tions of John Sadleir's estates were in his lifetime publicly sold by auction 
 in Dublin, and the proceeds applied in payment of the debts which were 
 due to the London and County Bank. Another circumstance occurred 
 which showed the openness with which the affair was transacted on behalf 
 of the London and County Bank, and the audacious fraud practised by the 
 manager of the Tipperary Bank. The deed of guarantee of the Tipperary 
 Bank required for its validity to be signed by several directors, and ap- 
 proved of by them at a board. Application is accordingly made to Mr. 
 Kelly, the manager at Clonmel. He regrets that the letter came too late
 
 APPENDIX. 647 
 
 to be laid before the board of directors that day, and he finally goes through 
 the force of sending the solicitors for the London Bank an official copy of 
 the minutes of the board of directors of the Tipperary Bank, recording the 
 names of the directors present at the meeting, and a deed of guarantee 
 dulv executed by the directors. However, on investigation it turns out 
 that those gentlemen named as directors in the minutes of the proceedings 
 were only sham directors : that they did not even ostensibly fill the office, 
 and an attempt is made to show that the directors of the London and 
 County Bank, or then: solicitors, were parties to this fraud upon themselves. 
 A copy of the minute was sent over from London, and, when now pro- 
 duced, it has the names of the sham directors introduced in pencil in the 
 handwriting of John Sadleir. The evidence, however, on the part of the 
 London Bank directors completely disproves all participation on their part 
 in this fraud. It would, indeed, have been a fraud without an object. It 
 would have been engaging in a conspiracy to rob themselves. They never 
 could have hoped to make the Tipperary Bnnk liable by means of an instru- 
 ment not executed by any of the directors of that bank. It is too much to 
 call upon the Court, in opposition to the testimony of many witnesses, to 
 believe that the directors of the London and County Bank were aware of 
 the fraud of James Sadleir, which he could so readily have concealed, and 
 wliich he had no interest in disclosing. There could be no security in 
 dealing with any establishment if the Tipperary Bank is not bound by the 
 representations of James Sadleir and the correspondence with Mr. Kelly. 
 This seems to bo a stronger case than " Perry Herrick 0. Attwood," where 
 a security was postponed because the party taking it entrusted the deeds 
 to the mortgagor for the purpose of enabling him to raise a limited sum of 
 money, which he in fact exceeded. I feel bound, therefore, to overrule the 
 objections of the official manager. I cannot be influenced by any considera- 
 tion of the loss which may fall upon the innocent shareholders and creditors 
 of the Tipperary Bank. I must not, to alleviate their loss, inflict an injus- 
 tice on the equally innocent shareholders of the London and County Bank. 
 I have entered at more length than usual into the circumstances of the case, 
 in order that both parties may have an opportunity of correcting, on the 
 hearing of an appeal, any erroneous inferences of law or fact which I may 
 have drawn from the evidence ; and a case of such importance and difficulty 
 ought not to be terminated without an appeal to the highest tribunal. I 
 have only to add, with regard to costs, that the general practice is to award 
 the costs to bo paid by the defeated party ; but when the case at issue is a 
 contest for priority between two undoubted creditors, it is not unusual to 
 award costs out of the funds in the matter. Considering that the defeated 
 party suffers enough by the loss or diminution of the security for his debt, 
 I shall follow the latter practice in this instance, as I am of opinion that 
 the official manager, after tho information which he received from James 
 Sadleir, one of the petitioners, was bound to institute the investigation
 
 (>48 APPENDIX. 
 
 which has taken place. He would hare neglected his duty if he had per- 
 mitted all the funds to be paid out without objection to the London Bank. 
 He found that the prior equitable instrument under which he claimed was 
 opposed by a subsequent transaction, in which all the parties to the prior 
 instrument were concerned. It has been insinuated that certain charges 
 were made less with any hope of succeeding than for the purpose of terrify- 
 ing the solicitors and directors of the London and County Bank into a 
 compromise by a threat of exposing their misconduct. If I thought there 
 was any ground for such an insinuation, my ruling as to the costs would 
 have been different ; but I award no costs personally, because I believe 
 that those charges were honestly and sincerely made, without any indirect 
 purpose, and that the only mistake into which the official manager has 
 fallen (and perhaps the result of the appeal may be to show that he was not 
 in error there), was in inferring any fraudulent dealings with theTipperary 
 Bank from certain acts of some of the directors of the London and County 
 Bank, of which their own shareholders alone had any reason to complain. 
 Rule Overrule the objections to the schedule filed by the ofEcial manager 
 of the Tipperary Bank, and let the petitioners have their costs in the 
 matter. 
 
 Notice of appeal was given. 
 
 THE PROCEEDINGS IN THE BANKRUPTCY OF MESSES. 
 DAVIDSON AND GORDON. 
 
 APPLICATION TOE THEIB CEBTIFICATES. 
 (Before Mr. Commissioner GoraBUEH', November 13, 1858.) 
 
 Mr. Linklater appeared for the assignees 5 Mr. Roxburgh for Daniel 
 Mitchell Davidson ; and Mr. Lewis for Cosmo Willliam Grordon. 
 
 The following is a copy of the report of the balance-sheet and accounts, 
 prepared by Mr. Hart, acting for Mr. Nicholson, official assignee. 
 
 The petition bears date June 20, 1854, and the 19th of August, 1854, 
 was originally fixed for the last examination, upon which day the bank- 
 rupts did not surrender. Both bankrupts surrendered on the 16th of 
 December, 1857, and the 10th of March, 1858, was appointed for their 
 last examination. On the 10th of March the last examination was ad- 
 journed until June 2. The accounts not being then filed, the meeting was 
 adjourned to July 7. The balance-sheet commences the 1st of January, 
 1853, with a surplus of 52,520. It embraces a period of one year and six 
 months, and shows the following figures : 
 Creditors ....... 36,023 2 1 
 
 Creditors holding seccurity . . 231,329 5 7 
 
 Less value of security . . . 120,425 18 1 
 
 110,903 7 6 
 
 Liabilities ....... 74,874 7 2 
 
 Carry forward . . 221,800 16 9
 
 APPENDIX. 
 
 649 
 
 Brought forward . . 221,800 16 9 
 To meet which the assets are returned 
 
 Debts contracted, good . 378 6 
 
 Ditto, doubtful .... 5,349 13 8 
 
 Property . . . . . 2,600 
 Amount, standing to the debit of the West 
 
 Ham distillery, being cost thereof . 206,189 1 10 
 
 214,517 1 6 
 
 
 
 
 
 
 
 
 
 
 
 3,871 
 12,272 
 2,440 
 11,371 
 1,104 
 2,660 
 74,874 
 198 
 
 7 
 3 
 19 
 13 
 16 
 13 
 7 
 2 
 
 
 
 52,520 
 26,576 
 22,413 
 
 8 
 
 8 
 13 
 
 
 10 
 
 
 108,794 
 9 
 5 
 4 
 9 
 2 
 3 
 2 
 3 
 
 3 
 
 I 
 
 Leaving a deficiency of . . . 7,283 15 3 
 
 To which must be added 
 Surplus in January, 1853 . 
 Profits on trading . . 
 
 Ditto, West Ham distillery 
 
 Which is disposed of as follows 
 
 Sundry expenses in trade 
 
 At distillery . 
 
 Losses . . 
 
 Bad debts . 
 
 Amount drawn out by Da? dson 
 
 Ditto by Gordon 
 
 Liabilities per contra 
 
 Difference in balance 
 
 108,794 3 1 
 
 The bankrupts state that they commenced business in 1841, in partner- 
 ship with Thomas Sargant, under the firm of Sargant, Gordon, and Co. 
 The capital of the firm was 7500 ; each of the bankrupts had about 3000. 
 Subsequently thia capital was largely increased by additional money brought 
 in by Davidson and Gordon. Thia partnership continued until 1849. 
 About 1847 the firm of Sargant, Gordon, and Co. stopped payment, and 
 compositions were paid to the various creditors, varying from 10*. 6d. to 
 12*. in the pound. The liabilities were then about 60,000. In ISM) 
 Davidson and Gordon commenced by themselves, and by a statement 
 entered in their books they appear to have had a capital of 5300. By an 
 account taken in December, 1850, this capital appears to have increased to 
 8750. No other statement of capital, for any period subsequent to 
 1850, appears to have been made. Messrs. Davidson and Gordon had 
 large transactions with Mr. Webb. These transactions commenced about 
 the end of 1848. Webb was introduced to them by Mr. Tindall, who gave 
 them a guarantee to the extent of 3000. Davidson and Gordon pur- 
 chased for Webb molasses and sugar, and they also advanced him cash i'rom 
 time to time to pay duty. The transactions in 
 
 1849 were about . . 82,000 
 
 1850 
 1851 
 1852 
 1853 
 
 275,000 
 500,000 
 598,000 
 402,000
 
 650 APPENDIX. 
 
 About July, 1851, finding that Webb's account was so heavy, and that he 
 was entering into other matters, Davidson and Gordon obtained security 
 for their debt by taking a mortgage upon the distillery at West Ham. In 
 July, 1853, Davidson and Gordon took possession of the distillery under 
 the mortgage, at this time Webb owing them about 184,000. Davidson 
 and Gordon were then liable on Webb's bills to the amount of about 
 38,000, and subsequently they advanced money to Webb's creditors in 
 the shape of a composition upon his debts. Upon closing the account with 
 Webb, the debit against him amounted to 209,000, which is taken as the 
 cost of the distillery. The surplus with which the accounts commence 
 arises from a statement showing that in January, 1853, the bankrupts had 
 assets consisting of debts and property amounting to the sum of 325,121, 
 against which the liabilities were 272,601, leaving a surplus of 52,520. 
 The figures in this statement are extracted from the bankrupts' books and 
 accounts. The liabilities are returned at the sum of 1 64,874 7*. 2d., of 
 which 104,000 were upon bills renewable, the remainder upon bills in 
 connection with Cole Brothers and Webb. Of these liabilities about 
 90,000 have run off, and will not be proved upon the estate, leaving, 
 therefore, a net liability of about 74,800. The profits on trading, also 
 the profits upon the West Ham distillery, are vouched by the bankrupts' 
 books. The expenses are also vouched. The drawings are also vouched, 
 with the exception of two sums of 200, which the bankrupts have charged 
 as drawings, and which in fact represent the amount disbursed by the 
 bankrupts between the time of their leaving this country and their sur- 
 render, The official assignee concludes his report by stating the books 
 given up by the bankrupts, which it is needless to detail, as admitted upon 
 all hands, had been well and accurately kept. An analysis of the separate 
 balance-sheets is also given, but this it is needless to publish. 
 
 Mr. LINKLATEB, on behalf of the assignees, addressed the Court. It 
 was impossible for the assignees to ignore the fact that the bankrupts had 
 been convicted elsewhere, and had undergone a considerable punishment, 
 having been convicted and sentenced to two years' imprisonment and hard 
 labour. It was with a feeling of regret that the assignees, in discharge of 
 their duties to the creditors, to the Court, and to the public, had instructed 
 him to bring under the notice of the Court, the facts of this singular case. 
 He must ask the Court wholly to refuse the certificate. Gordon was for- 
 merly a member of the firm of Sargaut, Gordon, and Co. That firm made 
 a composition with its creditors. Subsequently Gordon and Davidson 
 entered into partnership, and carried on business as colonial brokers and 
 metal agents. The balance-sheet of the bankrupts was of a very startling 
 character. It stated that in January, 1853, the bankrupts had a surplus 
 or capital of 52,000, but this capital consisted wholly of figures, and was 
 entirely unreal and unsubstantial. In January, 1853, they owed to unse-
 
 APPENDIX. G51 
 
 cured creditors, 86,859 ; to secured ditto, 185,741 ; the property held 
 by creditors was 15,600; Messrs. Overend, Gurney, and Co., were credi- 
 tors, Jan. 1, 1853, for 151,277, aud held against it property about 
 15,000. The debts were said to amount to 305,600, of which sum, due 
 to the bankrupts, no less than 235,000 was said to be due to them by a 
 person named Webb, who carried on the West Ham distillery ; 50,000 
 was due to them by Joseph Windle Cole, so that 285,000 was owing to 
 them by Webb and Cole. Advances to a very large amount were made by 
 the bankrupts to Webb, and it would be a question whether the bankrupts, 
 when they made those advances, could have any reasonable prospect of 
 their repayment. The alleged surplus of 52,000 consisted, for the most 
 part, of Cole and Webb's debts, which the bankrupts must have known 
 was hopelessly lost. The bankrupts, the Court would observe, had com- 
 menced business with only a few thousand pounds capital; but had, in a 
 few years, increased their dealings to the amount of from 500,000 to 
 1,000,000 annually. During this time, their bill dealing and bill dis- 
 counting were enormous. In October, 1853, the bankrupts discovered 
 that some spelter wan-ants, handed to them by Cole, representing property 
 to the amount of many thousands, and deposited with Messrs. Gurney, 
 Overend, and Co., were fictitious ; that there was no spelter to represent 
 those warrants ; that the spelter had been removed by Cole ; and under 
 such circumstances it was manifestly impossible they could hope to receive 
 one shilling of the debt due to them by Cole. In August, 1853, it was 
 also obvious to them that Webb was utterly insolvent. When Webb 
 stopped, the bankrupts became guarantee for the payment of 2s. 6d. in the 
 pound, taking the distillery into their own hands. In October, 1853, the 
 bankrupts must have been aware that the warrants were fictitious, and they 
 had, or at least Gordon had, an interview with Chapman. Cole had con- 
 fessed to Chapman that the warrants were fictitious. Overend and Gurney 
 had received a promissory note of the bankrupts for 120,000 a note 
 drawn by the bankrupts in favour of " Cole Brothers," and endorsed to 
 Messrs. Overend. The day after the interview between Gordon and Chap- 
 man (one of the members of Messrs. Overend's firm), the title-deeds of 
 the distillery were deposited with the latter, and they were not obtained 
 from the hands of their solicitor until after the bankruptcy. The inter- 
 view between Gordon and Chapman was, at Chapman's request, kept con- 
 
 COMMISSIONED. Concealed ? 
 
 Mr. LIXKLATEB. Yes ; and here he must state, with whatever re- 
 luctance, that although Messrs. Overend, Gurney, and Co. knew Messrs. 
 Davidson and Gordon were guilty parties, they, nevertheless, permitted 
 Messrs. Davidson and Gordon, and J. W. Cole, to go on, with what ob- 
 ject, might be best judged from the fact that in January, 1853, the debt
 
 G52 APPENDIX. 
 
 due by the bankrupts to Overend and Co., was 150,000, whilst at the 
 time of their failure it had been reduced to 110,000, thus Messrs. 
 Overend clearing themselves to the extent of 40,000 ; and it should be 
 also borne in mind that a considerable portion of Messrs. Overend's debt 
 was represented by interest with which they charged Messrs. Davidson 
 and Gordon. The bankrupts had also given a promissory note to Cole for 
 120,000, which was passed to Messrs. Overend and Co. as security. The 
 firm of Overend also held, at the time of the bankruptcy, the title- 
 deeds of the distillery. They (the bankrupts) now owed about 150,000, 
 for which they had assets, good debts, 378 ; doubtful debts, 5304 ; in 
 property, 2600. It was greatly to be lamented that in October, 1853, 
 when Messrs. Overend discovered Messrs. Davidson and Gordon's, and 
 Cole's position, they did not at once put a stop to their career. It was to 
 be regretted that for any consideration or for any pecuniary advantage, 
 Messrs. Overend had been induced to continue their course with the bank- 
 rupts. Cole became bankrupt ; he was indicted for frauds committed with 
 the dock warrants, and sentenced to four years' imprisonment. Davidson 
 and Gordon went on as long as they could, and when they could go on no 
 longer, they left the country. They travelled over a great part of the con- 
 tinent, visiting Ostend, Berne, Malta, and Naples, and, in fact, they left 
 England when their embarrassments could no longer be concealed, and re- 
 turned when foreign states became too hot to hold them. 
 Mr. KOXBTTBGH. My client came voluntarily from Malta. 
 Mr. LiSKiATEB. Yes ; you may call it " voluntarily" if you like, but 
 they were under surveillance, and felt it abroad. The detective officer re- 
 turned with them. 
 
 COMMISSIONER. Can it be said that bankrupts who so act, have, in 
 the words of the statute, conformed to the law of bankruptcy ? 
 
 Mr. LINEXATEE. Well; I should think not. When the bankrupts 
 landed at Southampton, they were in custody at that moment. Mr. Link- 
 later then alluded to the offences for which they had been tried ; but as 
 those trials have been before the public, it is needless to recapitulate the 
 circumstances. The last trial that upon which they were convicted 
 under the 253rd section of the Bankruptcy Law Consolidation Act, which 
 is to the effect that if any bankrupt shall within three months next 
 preceding his bankruptcy, under the false colour and pretence of carrying 
 on business and dealing in the ordinary course of trade obtain on credit 
 from any other person any goods or chattels with intent to defraud the 
 owner thereof; or if any bankrupt shall within such time or with such 
 intent remove, conceal, or dispose of any goods or chattels so obtained, 
 knowing them to have been so obtained, every such bankrupt shall be 
 deemed guilty of a misdemeanor, and on conviction be liable to imprison- 
 ment for any term not exceeding two years, with or without hard labour.
 
 APPENDIX. 653 
 
 This eitreme sentence tho bankrupts had undergone, and this was the main 
 reason the assignees did not wish then to press more severely on them 
 than their duty compelled them to do. Since the bankruptcy he cheerfully 
 admitted that the bankrupts had given to the assignees, in the realization 
 of their estate, all the assistance in their power, and their aid had been of 
 much use in collecting the assets, though not at all adequate to the repara- 
 tion of the grievous injury which they had inflicted upon their creditors. 
 On behalf of tho assignees he felt bound to ask that the certificates be 
 wholly refused. 
 
 The COMMISSIONER reminded Mr. Linklater of tho maxim, nemo bis 
 pvnitvr pro eodem delicto. 
 
 Mr. LurziATEB replied that this was an overt act on the part of the 
 bankrupts. They asked the certificate of the Court to go into trade again j 
 they asked the Court to state that they had conformed to the law of bank- 
 ruptcy. How could the commissioner do this ? Mr. Linklater referred 
 to the case of " Ex parte Dobson," 25 L. J. Cases in Bankruptcy. 
 
 The COMMISSIONEB admitted, after hearing the dicta of Lord Justices 
 Knight Bruce and Cranworth, that the authority for Mr. Liuklater's view 
 was very strong, and added that it was very fortunate for the creditors and 
 the public that the assignees were represented by Mr. Linklater. 
 
 Mr. BOXBTTBGH said that in the case of Dobson, to which Mr. Link- 
 later referred, there had been no indictment. 
 
 Mr. LINKLATEB. I am not aware of any case where a bankrupt, 
 having been convicted, applied to the Lords Justices for a certificate. 
 There is no such precedent. 
 
 Mr. ROXBURGH. Then perhaps we would make a precedent. 
 
 COMMISSIONBB. Suppose the case of a pardon from the Crown. It is 
 laid down that having undergone a punishment is equivalent to a pardon. 
 
 Mr. LINKLATEB. In the case of outlawry, upon reversal, the civil 
 rights which had been suspended revive. 
 
 The COMMISSIONER said this was a case which ought to be fully and 
 thoroughly investigated. It was one of much importance to the commercial 
 public, and nothing ought to be left undone to elicit the whole truth. The 
 bankrupts' transactions with Mr. Chapman, of the firm of Overend, Qur- 
 ney, and Co., ought to be well sifted, for otherwise it would be impossible 
 for the court to arrive at any satisfactory conclusion relative to the conduct 
 of Davidson and Gordon. He desired, therefore, that Mr. Chapman 
 be called and examined in this court, so that he might tell them what he 
 recollected of the interviews with the bankrupts. I say again, it highly 
 imports commerce itself that those transactions be fully explained ; and 
 upon former occasions I was always of opinion that upon this head they 
 stopped rather short. I think Mr. Linklater, as representing the assignees, 
 is bound to see to this.
 
 APPENDIX. 
 
 Jlr. LIXEIATEB. I certainly will. 
 
 Mr. LEWIS. What the bankrupt Gordon stated to-day is all fours with 
 one of Mr. Chapman's statements. 
 
 Mr. LINKLATEB. Which of them ? I believe there are three or four. 
 It is not consistent with that made under the bankruptcy. 
 
 ComnssiONEE. I think it is your duty to summon Mr. Chapman. 
 
 Mr. LnrtLATEB. I will. His position shall not deter me from treat- 
 ing him as an ordinary witness. 
 
 CoiiMissioifEE. You will of course treat him as A. B. or C. D. 
 
 Cosmo William Gordon examined by Mr. LINKLATEE. [The witness 
 did not seem in the least cast down. He leaned over on the side of 
 the witness-box, put up his glass, surveyed the bench and bar with 
 admirable coolness, and seemed as unconcerned as any other man in court.] 
 He deposed : I was formerly in partnership with Sargant, Gordon, and Co. 
 It failed in 1847. The debts of the firm were about 60,000. A compro- 
 mise was made with the creditors of from 2s. 6d. to 10s. or more. I entered 
 into partnership with Davidson in 1848 or 1849. He brought in some 
 capital ; I cannot say how much. He, too, was in the firm of Sargant and 
 Co. Our capital was about 3000, 4000, or 5000. In December, 1849, 
 it was 5300. Prior to January, 1853, we had made large advances to Mr. 
 Webb, who was introduced to us by Mr. Tindall, a deputy chairman 
 at Lloyds', a Quaker. Noble was a distiller ; we purchased molasses and 
 sugar from him. In January, 1853, Webb was indebted to us more than 
 230,000. We held produce to the amount of 62,000, produce purchased 
 for him, and not delivered. We drew^upon Webb, and discounted with 
 Messrs. Overend and others. The report of the official assignee is cor- 
 rect. We held security for the whole of Webb's debt. We held beside 
 produce shipments 22,000, and the mortgage of his distillery for 144,000. 
 A portion of that sum was for advances to Webb to carry on the distillery, or 
 for goods delivered. The title-deeds of the distillery were with us in January, 
 1853. Webb failed in August or September, 1853. I think he paid 
 a composition of 10s. in the pound. We paid 2s. 6d. in the pound, 
 and guaranteed 2s. 6d. more for Webb in the pound. Webb then retired 
 from the distillery. We got nothing from Webb for our own debt. "\Ye 
 then took possession of the distillery, and carried it on on our own account. 
 The title-deeds of the distillery remained with us to the latter end of 1853. 
 A portion of the deeds was deposited with Mr. Nicholson. We did not 
 deposit the mortgage or lease at all with Messrs. Overend. We owed 
 Messrs. Overend 151,000 in October, 1853 ; they held warrants as secu- 
 rity, and they held securities for the whole amount of their debt, with 
 a margin. In October, 1853, I had an interview with Mr. Chapman, of 
 the firm of Overend, Gurney, and Co. I deposited spelter warrants with 
 Messrs. Overend, but do not know there Tras any spelter to represent them j
 
 APPE2TDH. G55 
 
 I was not so told by Chapman or Cole. Cole did not say the warrants 
 were fictitious, nor anything to that effect. Cole said he had taken the 
 matter upon himself. Cole said he was not able to get possession of the 
 spelter. Chapman told me that Cole had stopped the goods, and could not 
 get possession of them. Chapman asked me, that being so, how I should be 
 able to liquidate their debt ? Cole said, as he could not get the goods, he 
 had taken means to cover liimsclf. These warrants represented about 
 60,000. Cole had stopped the goods to which the warrants referred. I 
 did not inquire whether the spelter was at the wharf or not. At the inter- 
 view with Mr. Chapman it was my belief Messrs. Overend would get pos- 
 session of the spelter ; how it was I know not. Cole was not in October, 
 1853, indebted to us ; he did not give a promissory note to Messrs. Overend 
 and Co. for 120,000. I gave such a note, payable to " Cole Brothers," on 
 the understanding that it was going to Overend and Co. I waa not 
 then indebted to Cole for 120,000 ; I was indebted to Cole, but we did not 
 agree as to the amount ; but it was not so much as 120,000. As 
 we could not get the spelter warrants for 60,000, we were not indebted so 
 much to Cole. The promissory note was sent to Messrs. Overend. Our 
 indebtedness to Cole was not discussed at the interview with Mr. Chapman. 
 I went into the particulars of the distillery business with Chapman. I did 
 not deposit the deeds with Chapman. I heard Cole had deposited the deeds 
 of the distillery with Chapman. We transferred the deeds to Cole to pro- 
 tect the distillery from Webb's creditors, so that we might be secure. The 
 consideration for the transfer was the sum in which Cole said we were 
 indebted to him 150,000. We did not owe him that sum. If the war- 
 rants held by Overend and Co. had been delivered we would owe him 
 60,000. In August, 1853, the deeds of the distillery went out of our 
 possession and into that of Cole. Messrs. Overend sold some of the 
 warrants. I never got any ; heard some were delivered to buyers. I know 
 of no fictitious warrants. At the interview with Mr. Chapman the details 
 of the distillery were discussed. The warrants were valueless to Messrs. 
 Overend by reason of Cole's stoppage. I believe that all the spelter v. as at 
 the wharfs through the whole transaction, and that the warrants were 
 genuine. The reason alleged by Cole for the non-delivery of the spelter 
 was because there was a dispute between us as to advances. I understood 
 Cole to say the spelter would bo delivered. The spelter was always in Cole's 
 name. There was no transfer ; it was a mere deposit of the warrants. I 
 do not recollect it being stated by Cole, at the interview with Chapman, that 
 the spelter had been recovered. I was introduced to Webb by Mr. Tiudall, 
 who guaranteed his transactions to a certain amount. I dealt with him so 
 extensively in consequence of that introduction. Warrants were sold 
 to various parties by Messrs. Overend to the value of 20,000. At (lie time 
 I gave Cole tho deeds I believed that all the goods represented by the war-
 
 656 APPENDIX. 
 
 rants were delivered, and I never knew they were not. I expected that the 
 spelter which the warrants represented would be delivered. I supposed the 
 spelter was there ; that Cole would remove any stop that might be upon it. 
 I did not know Cole had any difficulty in getting at the spelter. Cole had 
 formerly stated that he protected himself to the amount of 60,000. We 
 might have given our acceptances for the amount, but I am sure we did not 
 for the full amount. In October, 1853, we owed Cole 600. When I gave 
 the promissory note for 120,000 to Cole I must have considered I owed 
 him that sum. I did not keep the books. The cash was entered day by 
 day, excluding the 60,000 warrants. I do not know I owed Cole anything. 
 Cole had the distillery deeds in his possession before the interview with 
 Chapman. The promissory note and deeds were not given at the same time. 
 I gave Cole the note for 120,000 because I thought it better to do 
 so. Cole claimed that amount. Cole was to have cleared all the warrants j 
 the warrants were delivered to the extent of 20,000. I did not hear the 
 other 40,000 spelter was removed. I believe the spelter was at the wharf. 
 I went to the wharf after I saw Chapman. I saw a vast quantity of spelter 
 at the wharf j I believe it was all there, even 60,000 worth. I did not 
 calculate how much spelter and copper were at the wharf. I believed it was 
 all there that I swear. This was after the interviews with Mr. Chapman. 
 I did not hear Cole say there were no goods to represent the warrants I 
 swear that too. 
 
 Mr. Chapman's evidence was then referred to. It was objected to by 
 Mr. KOXBTJBGH. 
 
 Mr. LINKLATEB. I only want to ask the witness whether what Mr. 
 Chapman says is correct or incorrect. 
 
 Mr. ROXBTJBGH. The evidence was taken behind the back of the bank- 
 rupt, who could not cross-examine him. 
 
 Mr. LINKLATEB. I am about to read the evidence given by Mr. Chap- 
 man at the trial. 
 
 Mr. KOXBTJBGH. And I object to that. If there be a short-hand 
 writer's note it must be proved. The Old Bailey reports are not authorized. 
 You might as well read a newspaper. 
 
 Mr. LINKLATEB would put the question differently. Witness said that, 
 according to his recollection, what Mr. Chapman stated about a conversa- 
 tion regarding fictitious warrants was not true ; that it was not taken for 
 granted at the interview in question the warrants at the wharf were 
 fictitious. I heard the warrants could not be delivered. I heard fifty-three 
 warrants had been stopped by Cole, but I never heard they were without 
 value; I never heard until after my bankruptcy that the warrants held by 
 Messrs. Overend were without value. I should say there was a loss of 
 40,000 by the warrants. Mr. Chapman used no unkind language to me, 
 The interview lasted about half an hour. No one was present. I had an
 
 APPENDIX. G57 
 
 interview afterwards with Cole. The interview with Chapman did 
 not last three or four hours, up to twelve o'clock at night, as well as I 
 remember. Chapman said, " I wish the matter to remain between our- 
 selves." After we went away Colo got into difficulties. I do not recollect 
 that Chapman told me there were not any goods at the wharf to represent 
 the warrants. I heard Overend and Co. lost 40,000 by the warrants ; but 
 I do not know it. We became indebted as agents to Messrs. Freeman and 
 Co. Mr. P. Vaughan was a partner in that house. We had communica- 
 tions with him ; wo did not tell Mr. Vaughan we were using their moneys 
 in our business. If Mr. Vaughan said I stated we had been using their 
 moneys for our purposes he must have misunderstood me. That is not 
 true. We owed Freeman and Co. 14,000 in October, 1853. I do not 
 recollect having given Messrs. Freeman warrants for goods at the wharf 
 before October, 1853. I gave Mr. Vaughan one warrant. I heard that 
 the goods were there, and that the goods were not there, and that Messrs. 
 Freeman got nothing. Wo gave them our note for what we owed them, 
 aud continued to bo their agents down to the time of our leaving the 
 country. Messrs. Freeman pressed us to make largo sales of property. 
 We did so, and made the sales to ourselves, and shipped the copper on our 
 own account. We did not inform them we made the sales to ourselves. 
 I do not recollect we told them we made the sales to any one else. Yes, 
 in one or two cases, it was so to the extent of about 5000, perhaps. 
 It was our duty to send true accounts of the sales, but I do not consider 
 we tent untrue accounts. We paid Messrs. Vaughan, Freeman, and Co. 
 a part of their debt in bills and money. They are not creditors now. 
 There are some liabilities on bills of Mr. Hudson, but I believe they got 
 security. They appear on the balance-sheet as liability creditors on bills 
 receivable, 11,000. Wo owe to unsecured creditors 150,000, and in 
 January, 1853, 86,000 to unsecured creditors. We went on down to 
 June, 1854, buying goods and raising money on them. I considered I was 
 eolvent after both Cole's and Webb's failure. We had the distillery, and there 
 was a large amount of consignments. Those consignments were not pledged. 
 I flud there was an unsecured margin of upwards of 100,000. I gave up 
 good debts, 378 ; property, 2200 ; doubtful debts, 5349. Up to the 
 last I purchased and consigned goods, generally borrowing money upon the 
 goods. I went abroad June 17, 1851. I left because I could not mqct the 
 debt due to the Excise, 7100. I knew there were other engagements 
 coming due. Davidson and I went to Ostend. Wo took 1500 with us 
 in bank-notes ; 500 I got from Davidson, and the other 1000 from bills 
 discounted. I paid on the day I left for spirits 3100 for Grinnell, Clarke, 
 and Co., and Hayes. I got bills, 3100, discounted. I received 2600, 
 but I may bo wrong. We got 500 besides from Messrs. Nicholson. Ben- 
 nison and Leonard discounted the bills I had in my possession on Juno 17, 
 
 V U
 
 G5S APPENDIX. 
 
 3100. I considered the DCO as Davidson's own. A pcrticn v.-ns given 
 to Mr. Elmslie, 1COO ; he was our solicitor a portion for law costs and a 
 portion to retire, I think, Sardinian bonds, which I had received of my 
 mother, who lent them to me, I forget when. I borrowed inoncv on the 
 bonds of Mr. Edwards. I think as much as 200. I left it to Mr. 
 Elmslie's discretion whether or not he would redeem the bonds and give 
 them to my mother. I did not think when we went away there would be 
 a bankruptcy. I thought we would be back in a week cs soon as the 
 Excise were off. We invested 1100 of the money we took away in 
 Prussian Railway Stock, and spent the rest. We wsut to Ostend an 1 
 Aix-la-Chapelle. At the latter place we bought the railway stock. "\Yc 
 stayed there two or three days. We then went to Cologne. We did not 
 hear of the bankruptcy for some time after. I heard of my bankruptcy for 
 the first time in Berne. We went to Baden, thence to Berne, and arrived 
 there about a fortnight after we left England. We did not come back then, 
 because we heard Cole had got into trouble about the warrants, and we wished 
 to see the result. I heard there was a warrant out against us. I antici- 
 pated there would be proceedings against us under the bankruptcy. We 
 offered to come back to our solicitor, Mr. Ehnslie. We were at Iseufchatel 
 t-.vo or three months. Mr. Beard, a creditor, took steps against us and 
 obtained the railway shares, but I am informed he is not entitled to them. 
 Y\~e were at Genoa. We went from there to Naple?, thence to Malta, We 
 travelled in our own names. We found no one watching us except at 
 Naples. Part of our object, no doubt, may have been to avoid pursuit. 
 Erom Malta we came to Southampton, where the officer, who travelled with 
 us, arrested us. We were arrested at Malta, and discharged by the magis- 
 trate. We offered Bull, the detective, to go to England at Malta, and he 
 accepted our invitation. 
 
 Examined by Mr. RoXBrEGH. I left because I was unable to pay the 
 Excise. I intended to arrange with the Excise and return in a few clays. 
 I had no idea of bankruptcy when I went abroad. I did not intend to 
 delay my creditors. The distillery at West Ham cost 300,000, and the 
 profits by it during nine months were 10,000. Several London firms 
 attempted to ruin the distillery, but failed. Webb's security increased 
 with his debt. We wished to have the distillery under our own control. 
 Estimating the distiller)' at cost price, we were not insolvent. I thought 
 the distillery would have paid us 40,000 a-year, and it would if we could 
 have carried it on. I considered myself solvent in October, 1853. I 
 thought the spelter warrants were genuine. I had in my possession in 
 1853 large quantities of sugar, by which we hoped to clear a large amount. 
 I explained the whole nature of my dealings to Mr. Yaughan, who was 
 satisfied, and continued us as agents of his firm up to our leaving England. 
 The warrants I gave him I believed to be genuine. Whenever I dealt with
 
 APPEXDIX. G59 
 
 the spelter warrants I believed them to bo genuine. In tho interriew with 
 Chapman the genuineness of the warrants was never mentioned, and Chap- 
 man so stated in his evidence. 
 
 Mr. LEWIS. I intend to postpone my cross-examination until Mr. 
 Cliapman has been examined. 
 
 COMMISSIONER. I do not know that you ought to do that. 
 
 Mr. LEAYIS. I surely have a right to examine him after Chapman P 
 
 COMMISSIONER. Do you oppose that course, Mr. Linklater? 
 
 Mr. LEWIS. If not, I shall have to cross-examine the bankrupt twice, 
 instead of once, and go over the same ground. 
 
 Mr. LISKLATEB. I am in the hands of the Court. 
 
 COMMISSIONED Well, in bankruptcy we do not tic ourselves down to 
 triet rules. 
 
 The further proceedings were then adjourned. 
 
 (Before Mr. Commissioner GouLBUEN, December 7.) 
 
 Mr. Linklater appeared for the assignees ; a gentleman from the office 
 of Mr. Elmslic for Davidson ; Mr. Lewis for Gordon ; and Mr. Hawkins 
 for Mr. David Barclay Chapman. 
 
 Mr. LINKLATER called Mr. John Eobert Edwards, colonial broker, of 
 Mincing Lane, who deposed that he had made advances to the bankrupts 
 upon warrants which turned out to be valueless. 
 
 Mr. Stovell, another colonial broker, was shortly examined. It ap- 
 peared that Mr. Stowcll had proved against tho bankrupts' estate for 
 8100, and that he also had made advances upon warrants which proved 
 to be of no value. 
 
 Mr. Philip Vaughan, of the firm of Messrs. John Freeman and Copper 
 Company, Bristol, upon being examined said, Messrs. Davidson and 
 Gordon had been the agents of his firm, and that in such capacity they 
 had misappropriated goods belonging to himself and partners to tho 
 amount of 18,000. As security for the repayment of this stun the bank- 
 rupts gave him some Westminster Improvement bonds, which bf&mo in 
 course of time worthless. He had made an advance of 1900 upon 
 warrants which proved worthless. Ho recovered a verdict against Mr. 
 Maltby, the wharfinger, but nothing more. (A laugh.) He was now a 
 large creditor. He confirmed much of the evidence given by |tie bankrupt 
 Gordon with reference to his having misappropriated the goods of his firm. 
 
 Mr. David Barclay Chapman was then examined by Mr. LINKLATER as 
 follows : I was formerly a member of the firm of Overend, Gurney, and 
 Co., and previously to the bankruptcy of Davidson and Gordon tho 
 bankrupts had had transactions with them. I have known Gordon for 
 several years. I knew him when he was of tho firm of Sargant, Gordon, 
 and Co. Our firm had transactions with them. They foiled in 1847. I
 
 GGO APPENDIX. 
 
 think we were creditors at that time. I knew the firm of Davidson and 
 Gordon as soon as they commenced business, and had transaction s with 
 them, those transactions being advances upon the deposit of securities and 
 the discounting of bills. I knew Joseph Windle Cole. He had been a 
 partner in the firm of Johnson, Cole, and Co. "We had transactions with 
 that firm. I think we were creditors at the time of then* failure. I 
 cannot say the amount. I can only tell you that we wiped it out of our 
 books after the failure of Johnson, Cole, and Co. I do not know when our 
 transactions began with Mr. Cole. Our transactions continued with him 
 to a certain extent down to the time of his bankruptcy. We lent Davidson 
 and Gordon large sums of money upon securities. On the 13th of October, 
 1853, our balance stood at 118,675 4s. 6d. That had nothing to do with 
 any discounts. These were simple loan transactions. Against that 118,000 
 we held warrants for spelter among other things, which we considered 
 would leave a very large margin indeed in our favour. There is nothing 
 that you shall not know fully from us. Shall I enter into the whole 
 particulars ? It will be a very long story to tell you. About 150,000, 
 our clerk says, was the value of the securities we held. 
 
 Mr. LINKLATEK. How much did you receive by the realization of 
 those securities after the 13th of October, 1853? 
 
 Mr. Chapman. 38,200 in the rough. 
 
 Mr. LISKLATEB. Did any of the warrants you held at that time 
 profess to represent spelter ? 
 
 Mr. Chapman. They did, and I believe copper too. I remember 
 perfectly well having an interview with Mr. Gordon on the 13th of October, 
 1853. I had previously had an interview with Mr. Cole. I was not 
 aware until very recently before the 13th of October that Davidson and 
 Gordon and Cole had had very large transactions together. I have no 
 objection to enter into the details as to how much Cole was indebted to us, 
 but I do not understand the motive of it. 
 
 Mr. LrN'KLATEB. I should hardly, probably, have a strict right to 
 inquire into these transactions but for the circumstance of a promissory 
 note for 120,000 given by Davidson and Gordon having been pkced to 
 the credit of Cole's account by Messrs. Overend and Co. 
 
 The COMMISSIONER decided that the proposed evidence was relevant. 
 
 Examination continued. On the 13th of October, 1853, we held spelter 
 warrants which had been deposited by Cole. 
 
 Mr. LIXKLATEB. To what extent did you hold warrants in respect of 
 which it afterwards turned out there were no goods ? 
 
 Mr. Chapman. You must be patient, if you please ; I will not keep 
 you a moment longer than I can help. 
 
 The COMMISSIONS. Take your time. 
 
 Mr. LISKLATEB. Was it about 320,000 ?
 
 APPENDIX. GGL 
 
 Mr. Chapman. I think not ; it was about 200,000. According to 
 the valuation which our clerk, Mr. Bois, has made, they would be 101,000. 
 Iha%v iv.ul M^srs. Quilter, Ball, and Cos. report this morning. 
 
 Mr. LIXKLATEB. Let Mr. Bois just look at bis own affidavit. 
 
 Mr. Chapman. I hope you will understand that we desire to let you 
 know everything. 
 
 Mr. LiXKiATEB. Do you find it there stated that the warrants held 
 by your house amounted to 323,000 ? 
 
 Mr. Bois. That includes all. You are asking about Mr. Cole. 
 
 Mr. LIXKLATEB. Is it a fact that to the extent of 269,000 the 
 warrants which you held had been issued by Maltby ? 
 
 Mr. Chapman. You are now speaking about Cole. The amount was 
 164,000 from Cole. 
 
 Mr. LINKLATEB. And how much from Davidson and Gordon ? 
 
 Mi-. Chapman. Mr. Bois thinks 110,000, making 271,000. No- 
 tiling has been realized from those securities, 
 
 Examination continued. The amount of our claim upon the bankrupts 
 on the 13th of October, 1853, was 118,000, and when we finally closed 
 the account it left a deficit of 80,000, of which we have received 38,000 
 by the realization of securities deposited with us. Between the 13th of 
 October, 1853, and June, 1851, I am not aware that we received a single 
 shilling except from the securities I have mentioned. Two days after tho 
 bankrupts absconded we did not receive from Messrs. Grcgson and Co. 
 upwards of 1500 on account of the bankrupts. 
 
 Mr. LIXKLATEB. There is a letter dated the 19th of June, 1851, and 
 Messrs. Davidson and Gordon left on the 17th of June. 
 
 Mr. Chapman. I know nothing about that. 
 
 Mr. Lttf KLATEB. It is to this effect : " We do ourselves the pleasure 
 of acknowledging tho receipt of your favour of this date endorsing your 
 cheque for 1610 Os. lid. for account of Davidson and Gordon, being tho 
 surplus resulting from the shipments assigned to us by then: letter of tho 
 17th of October last." 
 
 Mr. Chapman. That is quite correct. 
 
 Mr. LINKLATEK. Did you on tho 17th of October, 1853, receive this 
 letter ? 
 
 "London, October 17, 1853. 
 
 " Gentlemen, We request you will hand over to Messrs. Overend and 
 Gurney any surplus that may arise on our copper shipments tlirough your 
 medium, nfter repaying yourselves the advance. Your obedient servants, 
 " Messrs. Grogson and Co. " DAVIDSON AJU> GOBDON." 
 
 Mr. Cliapman. Wo did. 
 
 Mr. LIXKLATEB. Look at this letter :
 
 G62 APPENDIX. 
 
 * 
 
 "(Private.) 
 
 "Lombard Street, Oct. 18, 1853. 
 
 " Dear Sirs, We beg to hand you herewith a letter addressed to you 
 by Davidson and Gordon, assigning to us whatever surplus may remain on 
 copper consigned through you after liquidating your advance thereon, and 
 shall thank you to take note thereof, and to favour us with a line in 
 acknowledgment. We remain yours truly, 
 " Messrs. Gregson and Co. " OTEKEXD, GTJKN-EY, AivD Co.'' 
 
 Mr. LIXKLATEH. Is that the transaction in respect to which you 
 received the 1500 on the 19th of June, 1854 ? 
 
 Mr. Chapman. It is. 
 
 Mr. LINKLATEE. Will you be kind enough to tell us whether that had 
 reference to any securities in your possession on the 13th of October, 1853 ? 
 
 Mr. Chapman. It had, and I will relate to you the circumstances 
 under which it was given, and everything connected with it. On the 17th . 
 of October, after the discovery of the fraud, up to which time we had no 
 reason whatever to allege any moral delinquency against Mr. Gordon, 
 because Mr. Cole had taken that entirely upon himself, Mr. Gordon called 
 at our office, and I said to him, " I should like to go through your war- 
 rants with you." He assented, upon which I called Mr. Bois, who brought 
 a parcel of warrants. Upon turning them over we observed three warrants 
 endorsed by a most respectable house Messrs. Gregson and Co. I imme- 
 diately said it is impossible there can be anything wrong with such war- 
 rants as these ; upon which Gordon said, " Xo, there is nothing wrong 
 with the warrants, but the fact I have shipped the copper." I was shocked. 
 He stood before me in a different light, and has done from that moment, 
 and I immediately requested him to give an order on Gregson and Co. for 
 the payment to us of whatever surplus might remain upon that. He sent 
 the letter down within an hour afterwards, which we forwarded to Gregson, 
 and that ends the whole transaction. I do not believe I have ever ex- 
 changed a single word with Mr. Gordon since, even by mouth or pen. Vf e 
 traced the copper, and found Gordon had shipped it, and that he had giveu 
 Gregson and Co. claims upon it. 
 
 Mr. LIXKLATEK. Did you after the 13th of October, 1853, discount 
 bills for Davidson and Gordon? 
 
 Mr. Chapman. I think you must remember that I have answered that 
 question elsewhere. We discounted some 70,000 worth of bills, in order 
 to enable them to take up a loan which we made them on some shells. 
 
 Mr. LINKLATEE. Did you on the occasion of those discounts retain on 
 each transaction a considerable sum as against prior advances ? 
 
 Mr. Chapman. Most distinctly not. We held the shells on the 13th 
 of October. We have not since realized, and they are at your service. I
 
 APPENDIX. GG3 
 
 believe they arc at t!io brokers'. The assignees of Davidson and Gordon 
 have never applied for the warrants. I find on asking Mr. Bois that we 
 gave some up to Mr. Gordon. We shall bo most happy to give thera up 
 to you if you will pay the balance of the loan. I think about 50 is still 
 owing to us upon the shells. This loan was made to Mr. Gordon out of 
 our ordinary transactions as a matter of kindness to him, upon his repre- 
 sentation that they were wortli a great deal more. We advanced about 
 2000 on the shells. We reduced our general account with Davidson and 
 Gordon by the 1500 odd received from Gregson and Co. "We revived 
 several other sums arising from securities. After tho 13th of October we 
 received from Cole a promissory note of Davidson and Gordon for 
 120,000. The total amount we received after the 13th of October I will 
 explain. It appears we received 450 also on account of that shell loan ; 
 also the surplus of a loan on some coffee which was hypothecated at the 
 same time. Altogether wo thus received 1990, and 15GG from Gregson. 
 "Wo also received a sum of 3318 upon giving up some securities. "We 
 placed the promissory note for 120,000 to the credit of Cole on receipt. 
 Our transactions with Cole continued after the 13th of October, 1853 ; but 
 we could not help ourselves, inasmuch as we had an immense amount of 
 property in our hands belonging to Cole, which we had to depend upon 
 him for realization. 
 
 Mr. LIXKLATEB. Is it the fact that after the 13th of October, 1853, 
 you received on account of new transactions \vith Cole upwards of 19,000, 
 which went in reduction of tho amount owing to you on the 13th of 
 October? 
 
 Mr. Chapman. That will lead us into explanation. From Mr. Quilter's 
 report I will assume that wo did so. I consider that we received alto- 
 gether 15,000. 
 
 Mr. LIXKLATER. That is, without reckoning tho 3000 you paid back 
 to Cole's assignees. 
 
 . Chapman. I will explain that by and by. 
 
 Mr. LIXKLATEE. You have seen the report of Messrs. Quilter and' 
 Co., and you deny that you received in reduction of your debt 19,000 
 and odd ? 
 
 Mr. Cliapman. That will depend on the way of stating it. JI 
 Quilter have included a sum of 1G50, which we say they have no ; : 
 do. Why did Quilter and Co. begin previously to the 13th of October ? 
 I say that, with the exception of 5800 or thereabouts, wo received nothing 
 but what we were legally and properly entitled to. That was without any 
 solicitation whatever on our part. I sn\ ': !(!00, which 
 
 we had to disgorge most disgustingly to pny for our own spelter back again. 
 We had sold a large quantity of spelter on tho 27th of September in 
 : of warrants deposited with us j tho amount of tho sale was about
 
 664 APPENDIX. 
 
 8000, -which had been effected through our broker. After the discovery 
 of the fraud, we found we had not spelter sufficient to enable us to perform 
 that contract. I believe the quantity of spelter we had sold was 400 tons. 
 We sold it on the 17th of September, long before we had discovered the 
 fraud. 
 
 Mr. LISKLATEE. Did you not know at the tune you delivered those 
 warrants that but for the assistance of Cole you would not have sufficient 
 spelter to meet them? 
 
 Mr. Chapman. Most certainly. But we knew nothing at all about it 
 till after the discovery of the fraud. 
 
 Mr. LIXKLATEB. Did you not advance money for the purchase of 
 spelter to enable you to complete that contract ? 
 
 Mr. Chapman. I must explain that if you will allow me. I may be too 
 anxious to speak most accurately, and appear confused, but I think I am 
 perfectly clear, and I shall be happy to tell you all about it. When these 
 warrants were applied for by the parties of whom we received the money, 
 it appeared there was not a sufficient quantity of spelter on the wharf to 
 satisfy them. There were only eighty-two tons. Mr. Cole sent his clerk 
 to inform us that he could not supply the spelter unless we paid him 15 
 a ton, because he had abstracted the spelter and borrowed 15 a ton upon 
 it. We said we would have nothing to do with Hagen's wharf, but if he 
 would bring our warrants, with the parties' receipt upon them whose money 
 we had obtained, we would pay the 15 a ton. We did not pay the money 
 until the warrants were returned to us. The purchaser of our warrants 
 never became aware that they were of so doubtful a character ; but you will 
 find, from Mr. Tooney's evidence, that they were constantly delivering 
 spelter in this way at that wharf. 
 
 Mr. LIXKLATEE. Was not your object, in the mode in which you 
 carried out this transaction, to conceal from the purchaser the fact that the 
 warrants which he held were of a fictitious character ? 
 
 Mr. Chapman. I really must decline to answer that question. I only 
 know the object was to fulfil our contract with the man whose money we 
 had received. After the interview with Cole on the 13th of October, I 
 determined to go down and see about these warrants. I had a broker 
 of the name of Boyle, who had been instrumental in our making 
 these large advances, and when we found so many belonging to Maltby, 
 Boyle made an observation about Maltby being the creature of Cole. 
 I immediately put on my hat and went to Cole, and asked him 
 whether all was right with our warrants. He said some of them were 
 not right. I asked him what portion, and he said those at Hagen's 
 wharf. I asked him whether he knew anything about our loan to 
 Davidson and Gordon, and he said he believed their warrants were in 
 the same position. I do not know how long the interview with Gordon
 
 APPENDIX. 665 
 
 and Cole lasted ; I thought more of tho amount of our involvements than 
 of tho time the interview lasted. It camo to bo a question what had 
 become of the money. It came out that Cole had lent Davidson and 
 Gordon 120,000 of the money for the purposes of the distillery. Gordon 
 certainly admitted that. There was no objection made by Gordon to it. 
 From thence our conversation took the course of the future prospects of 
 the distillery, and it was said the distillery would soon liquidate all David- 
 son and Gordon's liabilities. Gordon went into a lengthened statement, 
 which I took down in writing at the time. I do not know tliat I said to 
 Gordon, either on the 13th or on the 17th of October, " I believed you to 
 be an upright man ; I now look upon you only as a thief." I know what 
 I thought. I know what I did say on the 17th. I said to Mr. Bois, " I 
 will never breathe tho air with that man again alone," and I never have. 
 I considered that we had no right to impute any moral delinquency to 
 Gordon till the 17th of October. If ot a single word was said upon the 
 occasion of the interview I have spoken of about giving our house tho 
 security of the distillery, nor was a single security ever asked. Mr. Bois 
 never could say that anything was said about the security of the distillery. 
 The prospects of the distillery were discussed. Mr. Gordon represented 
 the distillery at West Ham to be a very valuable property. The deeds of 
 the distillery afterwards came into our possession ; they were sent to us by 
 Mr. Cole. They remained in our possession only two days ; they wero 
 sent to our solicitors. At the time of Davidson and Gordon's bankruptcy, 
 they were either at our place in Lombard Street or with our solicitors. 
 Mr. Cole never asked for them back again, and therefore we did not trouble 
 ourselves about them. At tho time of Davidson and Gordon's bankruptcy 
 you (addressing Mr. Linklater) sent to us to ask whether we would con- 
 sent to a sale of tho distillery ; you stated that tho Crown was going to 
 break it up, and that a gentleman of the name of Chamberlain, of Norwich, 
 was ready to give 24,000 for it ; but that it could not be sold unless the 
 lease was produced. You asked us whether we would produce it ; and we 
 said we had no title whatever to the distillery, but that we should have 
 no objection to join in a sale of it if the proceeds were placed in tho 
 Bank of England to the credit of whom it might concern. It would 
 have been very hard if we had put ourselves in the way to prevent any- 
 thing so favourable to Davidson and Gordon's estate. You drew up a 
 statement, wliich was sent to Messrs. Young and Vallings, it came back 
 with some observations of theirs upon it. I said, " We will not defile 
 ourselves with the distillery upon any consideration whatever," and when 
 Mr. Murray, the solicitor to the assignees of Cole, applied for it, we sent it 
 him, without making the slightest claim to it as a security. I may stato 
 this, that the day after the discovery of tho fraud, Mr. Gurney, my late 
 revered partner, camo to town, and I thought it was important that ho
 
 666 APPENDIX. 
 
 should see Mr. Cole. He consented to do so at two o'clock and Mr. Cola 
 came. Mr. Gumey asked Mr. Cole what had become of the money, r.s I 
 had done myself, and he said he had lent it to Davidson and Gordon for 
 the purposes of the distillery. Mr. Gurney seemed to be incredulous, and 
 said it was a large sum of money to lend, upon which Cole said Gordon 
 had muddled it away ; that he either did not understand his business or 
 did not attend to it; but he added, "I have a lease of the distiller;-, in 
 which the debt of 120,000 is admitted. Mr. Gurney then said, " Well, 
 I should like to see the lease." Mr. Cole replied, " Mr. Gurney, I have 
 no objection." ' He sent it to us, and I do not believe a single word 
 between us and Cole on the subject of the lease afterwards. The leas; was 
 sent to us by Cole the next day or the following morning, and Mr. Gurney 
 said to our solicitor, whom we consulted, " Here is the lease of the dis- 
 tillery, take it, and see what sort of a document it is." In a few days Mr. 
 Tailings brought it back again, and said it was such a " higgledy pi;, s 
 thing, he could make nothing of it ; but he said, " If you mean to make 
 the thing a security, you must take it and work it." Before he had finished 
 the sentence, Mr. Gurney started up and said, " I would not do it if I got 
 every shilling of the money back again." From that time the lease lay 
 dormant in our hands. We never asked for it as a security ; we never took 
 it as such, and never intended it as such. I most distinctly state that we 
 never represented that we had any interest in the result of the sale of the 
 distillery. We have not proved for any debt under the estate of Davidson 
 and Gordon. We did prove for a debt under the estate of Cole, but we 
 expunged it afterwards. I believe we proved for Davidson and Gordon's 
 note, 120,000. That was not in consequence of proceedings by the assig- 
 nees. We paid to Cole's assignees 3000, and I will explain how that 
 arose. Mr. Quilter made out a report without ever showing it to us. If 
 ho had done so, he would not have done us so much injury as he did. 
 He called on me one morning, and expressed himself in a way that asto- 
 nished me. He said, " I should like to see that d d business" (or he used 
 some such expression) "settled." I said, ' ; Do you mean that in con- 
 nection with this house there ever was a transaction that would not bear 
 the face of the sun ? I have been in the house forty years, and I do not 
 believe there ever was a single transaction that I would care for everybody 
 to see." I continued, " I should like to see the thing settled, for we do 
 not like to sec these Brings in the newspapers, and such shameful things r.s 
 the pamphlet of Mr. Laing, after he had been a party to receiving the 
 money from us." M:\Quiltersaid, "I should like to have a cas? drv.v.n 
 up and submitted to Sir Frederick Thesiger." " Is it possible," 
 " that we should require Sir Frederick Thesiger to settle any question 
 matter connected with this house ? If there be a question, I am p. 
 certain tLat the house will decide against itself, or.ly let us know v
 
 APPENDIX. 667 
 
 is." Ho said there were items, and he took them seriatim. I said we had 
 long ago determined to expunge our proof against Cole's estate, and at last 
 he said it resolved itself into one point " The advance you made on cop- 
 per, upon which you got 3000 after the bankruptcy." I replied, " I tell 
 you what, Mr. Quilter, if the assignees of Cole had been aware of the cir- 
 cumstances, they could have got that for the benefit of the estate ; wi> \\ ill 
 not take advantage of any laches of that sort, but will let them have the 
 benefit of that 3000, precisely as if they had brought us the money." 
 He said that was perfectly fair and right, and he would go to Mr. Murray 
 to see if it could be arranged. We paid the 3000 within a week. Mr. 
 Laing, one of the parties consenting, published a book of a most venemous 
 kin*. 
 
 Mr. Laing. It is all true. 
 
 Mr. Chapman. It is false. 
 
 The COMMISSIONER. We can have nothing to do with Mr. Laing here, 
 and I wish Mr. Chapman would confine himself to the matter before the 
 Court. 
 
 Examination continued. The payment of the 3000 was a voluntary 
 act on our part. The transaction out of which it arose was this : We had 
 advanced him 8000 on the 3rd of January, 1854, a week before Cole 
 stopped payment. The loan was not paid ; and we shipped the copper out 
 to India. It produced about 3000 surplus. That went to the credit 
 of Cole's account. We did not realize till long after Cole became bankrupt. 
 
 Cross-examined by Mr. LEWIS. I have said that I did not think there 
 was any moral delinquency on the part of Gordon on the 13th of October ; 
 on the 17th there wae. The expression that " I would never breathe the 
 air with Gordon alone again" was used on the 17th of October. I am 
 positive of that. On the 13th of October Cole distinctly told me that he 
 had removed the goods. He did not tell me that Gordon knew it. Cole 
 took the blame wholly upon himself, but he said that originally there was 
 metal on the wliarf to answer all the wcrrants. I have been examined on 
 this matter ei^ht times. The interview on the 17th of September made a 
 very painful impression on my mind. I never mentioned it before this day, 
 and the reason why I mention it now is in answer to Mr. Linklater when 
 he asked me why we received the 1560, and because I did not wi<h to 
 volunteer an accusation. I have never distinctly stated upon oath that I 
 had no conversation with Gordon after the 13th of October, but afh r tho 
 17th : and I do not believe I have ever spoken to Gordon since. On the 
 several occasions that I have been examined, I have been pressed with 
 questions as to my conversations with Gordon about the warrant s ^ni > i-:illy, 
 and tho reason I have not mentioned this is because, as I have si 
 did not wish to volunteer accusation against Gonlon, as hi- had enough (o 
 answer for. I do not know that we had many warrants from Davidson
 
 668 APPENDIX. 
 
 and Gordon and Cole, bearing Gregson and Co.'s endorsement. Bois was 
 present on the 17th of October when I used the expression to which I have 
 referred, The conversation took place between ten and eleven in the 
 morning. On the 13th of October, my impression is that Cole took the 
 whole onus upon himself ; but I am speaking of a conversation of con- 
 siderable length, and it is very difficult to be pinned down to a word. My 
 belief is that the conversation proceeded without any observation being 
 made by Gordon. I do not know that I ever called Gordon a " thief," and 
 so forth, though he has said I have. 
 
 Mr. LEWIS. It came out of the mouth of a person named Webb. 
 
 Examination continued. I had previously to seeing Gordon on the 
 13th of October seen Cole, and he admitted he was the person who had 
 lent Gordon the Hagen wharf warrants. I consider, as I have said, that 
 he took the whole thing on himself. Gordon had nothing to do with the 
 transaction about making up the spelter, which had been sold by us. He 
 knew nothing about it. I did not send for Gordon on the 17 th of October ; 
 he came to our office, and we went through the warrants in a cursory man- 
 ner. He said the warrants were all right. I said, " It is impossible there 
 can be anything wrong with such warrants as these." He replied, " The 
 warrants are all right, but I have shipped the copper." I believe those are 
 the identical words he used. The quantity of copper he had shipped was 
 about 70 tons ; the value of it would be about 100 a ton, which would 
 make 7000. We have nothing to charge Gordon with, with reference to 
 the warrants, and we only complain of his shipping our copper to the 
 extent of 7000. 
 
 Examined by Mr. Elmslie's clerk. I know nothing against Davidson, 
 and I am not aware that I should know him if I met him. 
 
 Ke-exammed by Mr. LINKLATEK. You have been asked by Mr. Lewis 
 respecting an interview with Mr. Gordon on the 13th of October. I find 
 that you stated in one of your depositions before the magistrate on the 
 17th of May, 1855, in allusion to that conversation" I asked Gordon 
 whether all these warrants represented nothing. He shook his head, admit- 
 ting it, and began to account for what had become of the property" is 
 that true ? It is perfectly consistent. Is it true ? I should think it very 
 likely to be true. Do you repeat the statement you made then ? I think 
 everything I have said is perfectly consistent. Is this true : " I asked 
 Gordon whether all these warrants represented nothing. He shook his 
 head, admitting it, and began to account for what had become of the pro- 
 perty, referring to the distillery at West Ham" ? I believe that to be true j 
 that is to say, that Gordon came to that interview, fully knowing the cir- 
 cumstance that those goods did not exist, and our conversation altogether 
 proceeded upon that admitted fact. 
 
 After a few questions had been put by Mr. HAWKINS to Mr. Chapman,
 
 APPENDIX. GG9 
 
 the Court intimated an opinion that questions could only bo put by way of 
 eliciting explanation upon some point which had arisen in the previous 
 examination. 
 
 Mr. LINKLATEB. Was your object in concluding the transaction for 
 the delivery of the 400 tons of spelter in the manner in which you con- 
 cluded it, partly for the purpose of preventing the purchaser learning that 
 the warrants he had were of a fictitious character ? My answer is, in the 
 first place, there were already 82 tons of spelter ready for delivery on the 
 wharf. The next is, we were bound to deliver the remainder of that 
 spelter, having received the money for it ; and wo did so. That is to say, 
 we said, when wo were satisfied that our contract with the purchaser had 
 been fulfilled, we would pay 15 a ton for our own spelter, which had been 
 obtained upon those warrants. "Was your object in so concluding the 
 transaction partly to conceal from the purchaser the fact that the warrants 
 had been fictitious ? I speak of facts ; I decline to say what the object 
 was. 
 
 The COMMISSIONED. Will not that satisfy you, Mr. Linklater ? 
 
 Mr. LINKLATEE. I am obliged to travel one step further. It is painful 
 to have to trouble you again on this subject, but I really do not quite under- 
 stand what was meant by your saying your " own spelter." Will you tell 
 me from whom the spelter came for which you paid 15 a ton ? All I 
 knew about it was this : that Cole said he had got the spelter ; that he had 
 borrowed 15 a ton upon it, and that he could not deliver the spelter unless 
 we paid 15 a ton. Did Mr. Cole say where the spelter was ? No ; he 
 did not. You never heard where it was ? No. Have you ever heard it 
 was at Hagen's wharf? Certainly not. Or at Maltby's wharf? No. At 
 Grove's wharf? No ; I know nothing but that when the warrants were 
 brought back to us with receipts upon them we paid 15 a ton, and not 
 before. Was not your money paid in consequence of Cole having pur- 
 chased in the market spelter sufficient to make up the 400 tons ? Certainly 
 not ; for this reason, that we should have had to pay 20 a ton for it, and 
 he let us have it for 15. Have you never heard by whom the spelter was 
 delivered ? No ; we did not interfere in any way whatever. Did you pro- 
 ride Cole with money to take up the spelter. Certainly not, till after he 
 brought us our warrants back receipted, and then we gave him 15 a ton 
 for those warrants. Those were the fictitious warrants ? The warrants 
 upon which there was only a portion of spelter. Do I understand you to 
 say that the spelter that was actually delivered to the purchaser had at any 
 time formed a portion of the spelter represented by your warrants ? That 
 we could assume from what passed. Do I understand you by that to say 
 that, as Cole managed to get the spelter to complete your contract, you 
 assumed he was dealing with spelter which had formed tho subject of your 
 own warrants ? Yes ; that was the ground upon which ho gave us spelter Unit
 
 670 APPENDIX. 
 
 vas worth 20 at 15 a ton. Ycm told the learned counsel, in answer to r 
 question, that Mr. Cole informed you ths spelter had been shifted from one 
 wharf to another, and that second warrants had been issued ? I have 
 stated this, and I believe I have been consistent throughout, that when the 
 warrants were issued there was metal on the wharf to represent them, and 
 that afterwards the metal was removed, upon a promise that the warrants 
 should be returned, which Cole never fulfilled. Did I not understand you 
 to say, in answer to the learned counsel, that Cole informed you that the 
 spelter had been shifted from the wharf where the warrants were originally 
 issued, and that second warrants had been issued at another wharf? I 
 think I did say so. And that Cole admitted at the interview with you that 
 the spelter had been so dealt with ? Yes. 
 
 His HONOTTK then suggested that the evidence should be transcribed ; 
 that Mr. Chapman should read it over, and, in the presence of all par- 
 ties, any explanation, if necessary, should be added, which course was 
 acceded to. 
 
 Mr. Bois, clerk in the house of Messrs. Overend, Gurney, and Co. was 
 next examined, and, in answer to questions why he had not before 
 mentioned the interview of the 17th of October, at which he was stated 
 to have been present with Mr. Chapman, said it had not occurred to 
 him until recently, when he had read the letters which passed about that 
 time, which suggested the circumstance to his mind. 
 
 Joseph Windle Cole, examined, said, he carried on business in Birehin 
 Lane as a merchant. He was a member of the firm, of Johnson, Cole, and 
 Co., which failed through Johnson's own difficulties. Their house had had 
 transactions with Sargant and Co. Both firms failed about the same time. 
 Savgant and Co. might have been creditors. Johnson, Cole, and Co. paid 
 a very small dividend in 1847. He established himself in May, 18-18, as 
 Cole Brothers. Had no partner. He knew Mr. Maltby. He was then 
 alive ; he knew him before 1848. They had both been clerks in the house 
 of Forbes and Co. In 1849 or 1850 he and Maltby had transactions 
 together. For a few days Maltby assisted him in his office. He assisted 
 him (Cole) when he was out of employ. Maltby was well connected. 
 Did not know what became of Maltby after he left his employ. Did 
 not know when he first found him established at Maltby 's wharf; 
 it was about 1849 or 1850. He did not put him in Maltby's wharf, 
 or help him to take it. He had nothing to do with Maltby's wharf in the 
 way now put. Maltby did not communicate to him from tune to time what 
 was going on. The lease of Maltby's wharf was taken in his (Cole's) 
 brother's name and that of another person. His brother intended to be 
 the wharfinger, but after staying a month Maltby took his place. He was 
 instrumental in looking out for some one to take his brother's place, and 
 he got Maltby. Had had transactions with Davidson and Gordon, but he
 
 APPENDIX. 671 
 
 was not identified with them. In 1818 and 1819 they sometimes lent each 
 .loney. This was going on in 1851, he thought. In August, 1853, 
 he took a security from Davidson and Gordon over the West Ham dis- 
 tillory and plant. Davidson and Gordon then owed him 150,000, all for 
 including tin. (A laugh.) He would not have got so heavily in if 
 he had known it. He (Colo) was exceedingly successful after hia bank- 
 , and had made the 150,000 between 1851 and 1853. He made 
 the money by spelter and tin. The security given him by Davidson and 
 Gordon was for money due to him, and not to protect the distillery from 
 the claims of their creditors. In October, 1853, he had received krge 
 cs from Overend and Co. Davidson and Gordon were then his 
 8 for 3000 or 4000. Prior to October, 1853, he had lent and 
 sold warrants to Davidson and Gordon. He did not lend them the war- 
 rants for any particular purpose. He did not lend the warrants volun- 
 tarily. They had lent money on the warrants, and he had lent them some 
 of the warrants that they (Davidson and Gordon) might obtain temporary 
 advances upon them. These warrants amounted to 10,000. Ho after- 
 wards asked Davidson and Gordon for the warrants. This occurred in 
 1852. He did not get them. They said they had them, but he did not 
 for them. His legal adviser (Mr. Digby) said the warrants were 
 waste paper, because he (Cole) only could obtain the goods. 
 
 COMMISSIOJTEB. That was the legal opinion ? 
 
 Witness. Yes. (A laugh.) 
 
 Examination continued. Finding he could not get the warrants, he 
 took away the goods. He took care to remove them from Maltby's charge. 
 Maltby was equally advised that he was not liable to keep the goods. He 
 ascertained this from counsel's opinion. The warrants did not represent 
 that the goods lay at a particular wharf. 
 
 Mr. LINKLATEB. Oh, that was the nice distinction. (A laugh.) 
 
 Examination continued. The whole of the wharf was licensed to 
 Grove. He (Cole) removed the spelter represented under the warrants ho 
 had lent to Davidson and Gordon. Finding Davidson and Gordon did 
 not return the warrants, ho sold the spelter. He gave notice to Maltby 
 not to honour any warrant without first communicating with him. In the 
 middle of 1852 he began removing the goods. He could not say that ho 
 did not lend Davidson and Gordon any warrant after that, but he thought 
 he had not. In June, 1852, he did not know tliat Overend and Co. held 
 any of the warrants entrusted to Cole. About this tune he told Davidson 
 and Co. that if they used the warrants they must do so on their own 
 responsibility. A short time before October, 1853, he heard from David- 
 eon and Gordon that warrants were deposited with Overend and Guruoy. 
 He did not advertise in the papers what Maltby had done in respect to 
 the warrants. In August, 1853, when ho waa pressing them (Davidson
 
 672 
 
 and Gordon), Gordon said they were pressed for money, and he admitted 
 that they had borrowed money upon the warrants. He did not run on to 
 Overend and Co.'s and mention the subject. He first took care of him- 
 self acting on the mercantile view. (A laugh.) On the 13th of October 
 he first had conversation with Overend and Co. on the subject. Did not 
 hear that they were then pressing Davidson and Gordon. In October, 
 1853, when Mr. Chapman first called upon him the following took place : 
 I think Mr. Chapman asked me about a quantity of warrants he had from 
 me and from Davidson and Gordon whether they were right or not. I 
 don't remember the precise words. I told him there was something wrong 
 about them. He pressed me to explain what was wrong. He said, " I 
 think this affects Davidson and Gordon very deeply ; will you allow me to 
 send on to them at once? I should prefer stating before them what I 
 should state to you," and after some little discussion, not very long, Mr. 
 Chapman agreed to appoint a meeting in the evening, to which Mr. Gordon 
 should come. I think I told him the goods had been removed before 
 Mr. Gordon came. At any rate a meeting was fixed to see him in the 
 evening with Mr. Gordon. 
 
 Mr. LINKLATEE. Now refresh your memory a little, and tell us more 
 particularly what took place. We are all attention. 
 
 Cole (covering his face for a tune, and after much apparent thought in 
 the direction of the ceiling of the court). If you could go on to something 
 else just now I think it would be the best course. I shall better recollect 
 what took place by and by. 
 
 Examination continued. Thought he and Davidson went to Overend 
 and Co.'s together. It was after business hours. They went into the 
 state-room at the bank the dining-room. In the afternoon he had told 
 Mr. Chapman that he had removed the spelter represented by the warrants 
 lent to Davidson and Gordon, as also some other warrants. Being under 
 the impression that they could not lay claim to the spelter, he told Mr. 
 Chapman that he had used it for the purpose of raising money to get 
 control of the distillery. He had availed himself of spelter, etc., of the 
 value of about 100,000, upon strength of the legal opinion to which he 
 had referred. The withdrawal of the goods continued from 1852 to 1853. 
 Mr. Chapman first learnt from him that the spelter, etc., was withdrawn. 
 Mr. Chapman said he would have preferred that the spelter had not been 
 removed, but he did not express himself as much dissatisfied. (A laugh.) 
 His (Cole's) impression was that as the goods remained at the wharf in 
 his (Cole's) name, Messrs. Overend and Co. had no legal claim. The war- 
 rants not represented by goods issued by himself and Davidson and Gordon 
 had been about 160,000 they did not amount to 220,000. It was 
 admitted by Gordon at the interview to which reference had been made 
 that he owed him (Cole) 120,000, and for which a bill was given. After
 
 AFPEXDIX. 673 
 
 wards had an interview with Mr. Gurney, senior, when Mr. Gurney re- 
 quested him to bring the deeds of the distillery. His impression was that 
 Messrs. Overend and Co. wpre to take the distillery for the 120,000. He 
 afterwards took the deeds, and saw Mr. Gurncy again. He considered he 
 left the deeds for the 120,000. He assured Mr. Gurney at this time that 
 lie was solvent. He was requested to get the deeds to hand over to Messrs. 
 Overend, Gurney, and Co., and ho did get them and leave them. They 
 took that instead of his other securities. He afterwards applied for his 
 warrants, and they refused to give them up on the understanding that they 
 were cancelled. He afterwards gave the promissory note for 120,000. 
 Messrs. Overend and Co.'s solicitor called upon him about the transfer of 
 the lease of the distillery, and subsequently a rough draft was sent to him 
 for inspection, and he afterwards heard that the security could not be made 
 perfect unless it was put in the name of Overend and Co. He sent the 
 draft back to Young and Vallings. As early as June, 1852, he warned 
 Davidson and Gordon that they must act on their own responsibility. The 
 acceptance of Davidson and Gordon for 120,000 would not have been 
 accepted by Messrs. Overend and Co. without the distillery. He endorsed 
 the bill for 120,000. He could not say he endorsed it without intending 
 to pay it, however gentlemen might laugh at the idea of his paying it. His 
 transactions with Messrs. Overend and Co. continued till Davidson and 
 Gordon's bankruptcy, and their claim had been reduced to the extent of 
 some 40,000. In reference to the transaction of supplying Messrs. 
 Overend and Co. with the 400 tons of spelter to complete the contract, 
 and for which he got from them 15 per ton, he went to them and told 
 them ho would deliver the spelter if they gave him 15 per ton. They 
 undertook to do this, spelter being then worth 20 per ton. He could 
 not say off-hand where he got tho spelter from. He (Cole) had taken 
 possession of the distillery. Messrs. Overend and Co. would not take 
 possession of it. 
 
 Cross-examined by Mr. LEWIS. -The bankrupts (Davidson and Gordon) 
 had had nothing to do with taking the wharf. About 1853 the bankrupts 
 might have told him that they liad borrowed money from Messrs. Overend 
 on warrants. Ho (Cole) did not remember, but it might have been that 
 he had lent Davidson and Gordon some of tho warrants to carry on tho 
 distillery. Tho bankrupts might have told him that they intended " to 
 raise money for an hour" on the warrants. Mr. Digby was the gentleman 
 whoso legal opinion ho took upon the warrants. 
 
 The COMMISSIONER (to Mr. Linklatcr). What do you propose now 
 to do? 
 
 Mr. LHTKIATEB. To allow Mr. Cole to depart in peace, and have the 
 case resumed on a future day. 
 
 Mr. HAWKIXS wished it to bo clearly understood that Mr. Chapman 
 
 X X
 
 " C74 APPENDIX. 
 
 would be allowed and enabled on a future occasion tr give an explanation 
 pf some parts of his evidence which might appear to require explanation. 
 An adjournment then took place. 
 
 (Before Mr. Commissioner Gori-BUKX, December 15). 
 Mr. Linklater appeared for the assignees ; Mr. Hawkins for Mr. 
 Chapman ; Mr. Lewia for Gordon ; Mr. Elmslie for Davidson. 
 
 Mr. LnrELATEB then examined the bankrupt Gordon as follows : 
 Were not Barnett, Hoare, and Co. your bankers ? 
 
 Bankrupt. Yes. Look at the letter of March 4, 1854, and tell me 
 whether you did not, at that date, borrow of them 3000 on the deposit 
 of warrants ? That was a renewal. Do you mean to say that you had 
 previously borrowed 3090, and that you renewed the loan in March, 1854, 
 by the re-deposit of warrants ? My impression is that the loams with 
 Messrs. Barnett and Co. were remaining, and possibly, at that period, part 
 may hare been paid and the remainder renewed. 
 
 Letter of March 4, 1854, read, enclosing promissory note of bank? 
 due June 7, requesting discount, and giving warrants as security. 
 Bankrupt. That letter is signed by me. 
 
 Mr. LryKLATEE. Look at the letter date, April 3, 1354 ; did you not 
 apply for a further loan of 2000 of Messrs. Barnett and Co. ? 
 
 Bankrupt. Judging from that letter, I appear to have done so. The 
 letter is signed by me. 
 
 Letter of April 3, 1854, read, asking for advance of 2000 on deposit 
 as security of warrants for 100 tons of spelter ; 50 tons being at Eagen's 
 Sufferance "Wharf; also warrants previously deposited, to be held by 
 Messrs. Barnett and Co. as security for that advance. 
 
 Bankrupt. That was not a new loan ; it referred to an old transaction. 
 Mr. LnfKLATEB. What do you mean ? did you not require an advance 
 of 2000 on the deposit as security of the warrants mentioned in the letter ? 
 Bankrupt. Yes. And that advance was made, I suppose ? I suppose it 
 was. On September 13, 1854, did you request Messrs. Barnett and Co. to 
 make you a further advance of 1000 ? Yes. The advance was made, I 
 presume ? I presume so. 
 
 Letter read, asking for loan of 1000 on warrants for 50 t::. 
 spelter, 70 tons and 120 tons of ditto ; date, April 13, 1854. 
 
 Mr. LIXKLATEB. Upon June 7, 1854, did you apply to 31 
 Barnett and Co. for a further advance of 1200 ? Bankrupt. Yes. 
 
 Letter of latter date read, requesting an advance of 1200 upon spelter 
 warrants, as also upon Cole Brothers' acceptance for 2500, due June 13, 
 1854 in default, sale of spelter, 340 tons. 
 
 Mr. LIXELATEE. On June 14 did you again apply to Messrs. BL. 
 and Co. to discount Cole's acceptance for 1000 on deposit of warrants ?
 
 APPENDIX. 675 
 
 Bankrupt. Xo ; the letter to which you refer alludes to a renewal. 
 Look at that letter, and attend to my question. Did you not, by that 
 letter of June 14, ask Messrs. Barnett and Co. to discount your draft upon 
 Cole for 1000. Did you or did you not ? I applied to Messrs. Baniett 
 and Co. to renew the acceptance. Did you draw upon Cole Brothers for 
 1000 ? Yes ; I presume I did. Was that acceptance discounted by 
 Messrs. Barnett and Co. ? I suppose it was. At your request ? At my 
 request no doubt it was done. 
 
 Letter of the 14th June read. In consideration of discount of said 
 acceptance, warrants of spelter 50 tons, 50 tons, 50 tons deposited as 
 security and as a general security for Messrs. Barnett and CO'B. advances ; 
 empowering sale of spelter by Messrs. Barnett and Co. in case of non- 
 payment by Cole, or any other default. Letter signed "Davidson and 
 Gordon." Loan due June 19. 
 
 Mr. LnncLATEB. When the 19th of June arrived you did noi pay 
 the loan? Bankrupt. No, I did not. Messrs. Barnett and Co. paid 
 themselves. (Holding up warrants) Were these deposited by you with 
 Messrs. Barnett and Co. ? I believe they were. Did Messrs. Barnett and 
 Co. ever get any of the spelter represented by these warrants ? I do not 
 know. Did you get these warrants from Cole Brothers ? Yes. When ? 
 I cannot answer that. In 1853 ? I cannot state the date. Did you get 
 any from Cole Brothers in 1854? I cannot state the date. I should 
 think not ; indeed, I may say certainly not. In 1853 you did ? I cannot 
 say. Have you not a record in your book ? No, I believe not. How 
 much did you owe Messrs. Barnett and Co. at the tune of the bankruptcy ? 
 I think they were nearly cleared. Nearly cleared ? Why, look at your 
 balance-sheet. You made the same answer as regards Freeman and Copper 
 Company. It appears 1448 11*. 6d. is in the balance-sheet for Messrs. 
 Barnett and Co. under the head of "creditors holding security." I 
 suppose Messrs. Barnett and Co. lost their money ? I do not know what 
 became of it. What do you think ? I suppose so, but I do not know. 
 You told us on a former occasion that the debt of Freeman and Copper 
 Company had been paid. Turn to your balance-sheet, under the head of 
 liabilities, and sec how much you owe to Freeman and Copper Company. 
 Was there not 12,000 due upon your promissory notes ? Yos, but some 
 of them were paid. How much ? I cannot say. i "hink my account in 
 the ledger would show. Mr. Vaughan said 9000 wiw due. It arose in 
 this way. We gave them 6000 hi Westminster bonds, and 3000 of 
 which was paid in cash. I do not tliink they credited us with this. How 
 much did you owe Freeman and Co. at the tune of the bankruptcy ? 
 Taking into the account the bonds, I should say scarcely anything at all. 
 Just before your bankruptcy did you give acceptance to Cole Brothers for 
 30,000? Y^. Eefer to your ledger, and tell me the date of that trans-
 
 C7G APPENDIX. 
 
 action. Those transactions are entered in the bill-book, not in the ledger. 
 An agent was to sell the bonds. Why, this agent was the person who 
 drew bills for you, was he not ? I do not remember. With whom did you 
 negotiate this transaction ? I negotiated it with Cole. Was not the 
 negotiation with Cole that somebody should draw bills upon you ? I do 
 not know that there was any such arrangement. "Why, was it not a man 
 named Molineux who was to draw the bills ? I do not know that Moli- 
 neux ever drew any bills. What commission did you get ? I do not 
 know that Molineux ever drew for me. However, you did not get the 
 Westminster bonds ? We did not. What was the date of that trans- 
 action ? I do not remember. How long before you went away ? I do 
 not recollect. Did you make any inquiry after the Westminster bonds ? 
 I did. Did you ever get them back ? No. How came you to part with 
 30,000 worth to Cole? Because I expected to get the bonds. What 
 other transactions had you with Cole after the 13th of October, 1853, 
 without reference to this 30,000 ? About 100,000, 1 should think. No, 
 I am wrong. Well, tell me within 10,000 or 20,000. I should think 
 about 60,000. What was the balance due from Cole in January, 1851 ? 
 About 80,000. What was the extent of your transactions with Cole 
 since January, 1851 ? Guess. No, I will not guess. (After looking at 
 his books) About 450,000, 1 should think. 450,000 in three years and 
 a-half ? About that. 
 
 Memorandum of agreement put in and read, signed by both bank- 
 rupts, in reference to the West Ham distillery. Distillery to be given 
 up, with quiet possession, to Messrs. Davidson and Gordon, plant, horses, 
 pigs, etc. Webb to be discharged for 84,793 12s. 8d. Date, October, 
 1853. 
 
 Mr. LlNKLATEE. You left England, June 17, 1854 ? Bankrupt. 
 Yes. Before you left had you more than one interview with Mr. Beard, of 
 Manchester ; and did he not threaten proceedings ? He did not threaten 
 proceedings. Be particular in your answers, Mr. Gordon. Had you not, 
 for several days before you left, been pressed and threatened by Mr. Beard ? 
 No ; I have no recollection of it. Such may have been the case, but I do 
 not remember. Why, do you mean to say you recollect no interview with 
 Mr. Beard ? I will tell you how it was. We held the acceptances of Hud- 
 son's, of which we were the endorsees. Mr. Beard wished us to pay him. 
 I said the acceptor must pay. I believe Mr. Beard did receive the money 
 for these acceptances of Hudson's. Was not Mr. Beard your creditor at 
 the bankruptcy ? Yes, I think for 1600. He sold us a parcel of goods, 
 and brought a person to us who would make us an advance upon them > 
 but I declined. Refer to the account of Messrs. Russell, Douglas, and Co. 
 How much did you owe them ? 1397 16*. 3d. The debt was contracted 
 in 1851. That was the first transaction with that house. Were you not
 
 APPENDIX. 677 
 
 convicted in respect to obtaining these goods ? I was. How much did 
 you owo to Mr. Hesse ? 1400 or 1500. Did you pay anything ? No. 
 \Vas not that credit obtained within three months of your bankruptcy ? 
 Yes. That was one of the transactions upon which you were convicted ? 
 It was. The drawer's name of the bills which Cole had for 30,000 is not 
 entered. The transaction not having been complefoJ, is not regularly 
 entered in the books. Our acceptances had been given, and had gone forth. 
 You said on a former occasion that you had not travelled in an assumed 
 name ? No ; I do not think I said so in a general answer. I spoke of a 
 particular time. Very welL When did you first travel in an assumed 
 name ? I think in January, 1855. Where were you when you assumed 
 this false name ? In Naples, I think. What was the name you took then ? 
 Hodding, I think. What name did Davidson take ? I do not think he 
 took any. Why, he acted as your servant, did he not ? It may be that it 
 waa so ; if so, it is stated in the passport. What was in the passport ? I 
 cannot remember. Do you mean to say that Davidson never used a false 
 name ? Never. Did he not use the name of Smith at Neufchatel ? Cer- 
 tainly not. Had you not a passport with the name of Sedgwick upon it ? 
 Yes. And also with the name of Gray ? Yes, but I did not use it. It 
 would be handy, I suppose, if necessary ? (Laughter.) Well, it might be. 
 I did not use it. Did you not at Genoa travel under the names of Jones, 
 of Canada, and of Emsly, of Scotland ? It might be so. Did you not at 
 Genoa go to the Hotel Albergo d' Italia, and did you not use those names 
 there ? I do not remember. I do not think they required us to give any 
 name. Are not all the debts in respect of wliich you were convicted still 
 owing ? Yes. And in reply to further questions he said they were still 
 due to Douglas and Co., to Bryant, to Hesse, and to M'Millan. All these 
 debts are still due, are they not ? Yes ; so far as I know. 
 
 The bankrupt was then examined by Mr. LEWIS. He said he had 
 been indicted for non-surrender. The jury found him guilty, but the Court 
 of Error, upon appeal, quashed the conviction. Was also indicted for 
 embezzling money, but the judge stopped the case ; was convicted of ob- 
 taining goods within three months of his bankruptcy. The bankrupt went 
 on to explain the various transactions which he had had with M'Millan 
 and others. Was solicited by their agent to purchase the goods. Also got 
 goods of Mr. Fickford, and also after solicitation of his agent. Both these 
 parcels of goods were shipped for India. Obtained goods from Alexander 
 and Co., 3300 worth of which were paid for 2500. Obtained advances 
 upon these goods generally, but none upon the goods of Hesse. Had had 
 considerable dealings with Bryant, and had paid him something like 8000. 
 The last transaction was for 1600 worth, of which 850 were paid in cash. 
 No part of the proceeds of these goods was taken away by us when wo 
 went abroad.
 
 678 APPENDIX. 
 
 Mr. LEWIS. Tell us the amount of your purchases during the year 
 preceding your bankruptcy. Bankrupt. 147,197 12s. lOd. How much 
 did you pay out of that ? 127,839. How much were you indebted during 
 the same twelve months ? 221,783. How much did you pay ? 214,000 
 and upwards. The amount of debts incurred for goods and duty was 
 368,980, and payments 342,542. I paid all but 22,000 or 26,000 out 
 of transactions amounting to nearly 400,000. I did not know that the 
 warrants were fictitious. I thought the goods were at the wharf. I had 
 no idea the warrants did not represent goods. I did not know Cole 
 had withdrawn the goods at the time I deposited the warrants with Messrs. 
 Overend. I did not know Cole stopped the goods or sold any of them. I 
 did not know at any time previous to the 13th October, 1853, that Cole 
 had dealt with the goods which the warrants represented. Did you hear 
 Cole examined ? Yes. He stated that finding he could not get back the 
 wan-ants from you, he should deal with the goods upon his own responsi- 
 bility ; when was the date of that ? I cannot fix the date of that observa- 
 tion, for I do not recollect it. Had he said so, I could not have interpreted 
 it in that point of view. Cole never told me he had taken a legal opinion 
 as to what he might do with the wan-ants not to my recollection. In 
 June, 1852, Messrs. Overend and Co. had got all the wan-ants. Subsequent 
 transactions were, I think, on warrants. I think I had no warrants of 
 Cole after October, 1853. I know that some of the copper and spelter was 
 actually delivered from Hagen's "Wharf. I had nothing whatever to do 
 with Maltby taking the wharf, or with his keeping it, or his transactions, 
 any more than any ordinary wharfinger, and paid the ordinary dues. The 
 bankrupt was then examined regarding his transactions with Mr. Chapman, 
 formerly of the house of Messrs. Overend, Gurney, and Co., bill discounters. 
 Now, as to the interview with Mr. Chapman, did any such take place 
 on the 17th of October, 1853 ? No, it did not. Are you positive about 
 that ? Quite certain, for I was otherwise engaged during the greater part 
 of that day. You heard Mr. Chapman say that the interview took place 
 between ten and eleven in the morning ? Yes, I was on that day with iny 
 partner, Davidson, at our solicitor's residence, Mr. Elmslie. We were 
 engaged with him for many hours in the course of the morning. Have you 
 any doubt but that Mr. Chapman was entirely mistaken ? Mr. Chapman 
 is entirely mistaken upon that point. Do you remember having said to 
 Mr. Chapman, on the 13th or on the 17th of October, 1853, in reference to 
 Gregson's bond or security, " These warrants are all right, but the fact is I 
 have shipped the copper ? " Certainly not. Did you say any tiling of that 
 sort ? Certainly not. Or anything of the kind ? Certainly not. Did you 
 ship any copper pretended to be represented by those warrants, bearing the 
 endorsement of Gregson and Co., and which warrants were in Messrs. 
 Oyerends' hands ? Certainly not,
 
 APPENDIX. G79 
 
 The bankrupt then went on to explain that the warrants to which Mr. 
 Chapman referred in his evidence were not the same, and had no reference 
 whatever to the transaction with Messrs. Gregson and Co. ; and that neither 
 in quantity or quality did the goods correspond. Ho also explained his 
 transactions with respect to Messrs. Freeman and the Copper Company of 
 Bristol, but this portion of the evidence is so dry and uninteresting, that it 
 will suffice to say that the bankrupt's version of these transactions differed 
 very materially from that which lias been already published ; 400 tons of 
 spelter were delivered from Hagen's Wharf in October, 1853. Knew 
 nothing of the arrangements between Chapman and Cole, and had nothing 
 whatever to do with Cole's transactions in supplying the spelter at 15 per 
 ton. In the course of this evidence, the Commissioner asked if Maltby had 
 not died in gaol ? 
 
 Mr. LINKLATEB. Yes, in November. This was in October. Mr. 
 Vaughan, of the firm of Freeman and Copperley, brought an action, and a 
 verdict was given against him ; in fact, he absconded. 
 
 Mr. LEWIS denied that. 
 
 Examination continued. In July, 1853, we took the distillery from 
 "Webb. At that time we had considerable advances from Bennet and Co., 
 and we deposited warrants. "When we took the distillery we took the 
 whole of Webb's debt upon ourselves. That was part of the arrangements 
 concerning the distillery. We gave Messrs. Barnett, Hoare, and Co. secu- 
 rity for Mr. Webb's debt, and our promissory note subsequently. I did 
 not deposit any new warrants with Messrs. Overend after October, 1853 ; 
 it is impossible we could have done so. The greater portion of Messrs. 
 Barnett's debt was paid off. Their debt was 16,000 when we took upon 
 ourselves Mr. Webb's debt, and it was only 1100 at the time of our 
 bankruptcy. How much were your transactions with Cole during the 
 three years anda-half? 450,000. Cole's account was to be easily ascertained, 
 but not without reference to thecash book and theaccountcurrentbook. The 
 cash book was not made up at the time of the bankruptcy, but it contained 
 entries up to the day I left, and I have not been obliged to add anytlung to 
 either of the books for the purpose of making up the ledger. The distillery 
 cost UB 206,000 in cosh and debts we undertook to pay, and which are all 
 proreable under my bankruptcy. We afterwards made an arrangement with 
 the London distillery, which was that the quantity of spirits we sold should 
 from time to time be regulated so as to enable us all to obtain a certain 
 profit. I suppose the English of that means that you were admitted to the 
 monopoly of the London spirit merchants ? Yes, certainly (laughter). I 
 suppose before that they used to " nurse" you as the omnibuses do each 
 other ? Yes, exactly. After that they allowed us to go on in peace. Our 
 gross proQts during the first nine months, when quite inexperienced in 
 business, were 22,000, and our expenses 12,000, showing a net profit oi
 
 680 APPENDIX. 
 
 10,000. Afterwards the whole of the plant of the distillery was sold 
 piecemeal as old copper, while Messrs. Overend and Gurney, our assignees, 
 and other parties were disputing about it. I surrendered to my bank- 
 ruptcy on the 23rd of December, 1857, and I did that only on the consent 
 of my assignees. The assignees have freely used my services in realizing 
 the estate. I have done all in my power to assist them, and I have been 
 employed almost day and night. 1000 of the money I took away was 
 the produce of sales previous to the 17th of June, 1854. It is requisite 
 to dispose of spirits very shortly after preparation, because within 
 twenty-four hours it will lose by evaporation two or three per cent. 
 When I went away I took the same notes that I got from the bank, 
 and I changed them at Aix-la-Chapelle in my own name. I invested a 
 portion of the money in Prussian securities to get interest upon it. 
 Mr. I3eard (the creditor who pursued the bankrupt) went in a dif- 
 erent name, and disguised in his appearance, wearing a beard and blue 
 spectacles. A brother of my partner (Dr. Davidson) resided at Naples ; 
 and when Mr. Beard arrived at that city he wrote to Dr. Davidson, saying 
 that lie was a large creditor on our estate, and had pursued us from Keuf- 
 chatel to that place, and " they cannot now escape, and should they wish to 
 avoid further steps being taken, an immediate settlement of my claimmust 
 .be made. If I do not hear from you in half an hour, I shall conclude I 
 must proceed." In reply to that letter Dr. Davidson wrote: "I have 
 well considered your letter ; and, being of opinion that the attempt to 
 obtain by intimidation a liquidation of your own particular debt would be, 
 if successful, a fraud upon the other creditors, of whom I am one, I have 
 prepared copies of your letters to be sent to the assignees, through my 
 London agents, that they may take the proper steps under the circum- 
 stances." Mr. Beard then wrote another letter, saying that he was not 
 surprised at the contents of a letter coming from a relation of such men 
 as the bankrupts : " I have yet to learn, after much business experience, 
 that my claim against them is extinguished by roguery or the collusion of 
 friendly creditors ; and rest assured that I shall be most happy to meet 
 the bankrupts in London, when you and other relations have ceased to aid 
 them in defrauding either one or the whole body of their creditors." Copies 
 of this correspondence were sent to the assignees. This was long before I 
 was imprisoned at Malta. At that time I believed myself to be possessed 
 of the Prussian securities. I was totally unaware that Mr. Beard had 
 attempted any attachment upon them, and I am not aware that the assig- 
 nees have taken any steps to prevent that attachment. The cause of my 
 going away on the 17th of June was the attachment placed on my account 
 at the banker's on that day. At that time I had given drafts to the Excise 
 on account of duties, and I knew consequently that they would be dis- 
 honoured. My object in going away was to enable me to treat for an
 
 APPZ3TDIX. G81 
 
 arrangement with regard to the attachment. Mr. Henry Barnett, iny own 
 banker, advised me that I had better go away for a few days. I kept an 
 account of our personal expenditure in a book. We spent 400 between 
 Juno 1854, and April, 1855. The assignees have that book. A week be- 
 fore we left, from June 10 to Juno 17, we paid away in the ordinary course 
 of business, about 15,000. A payment of 200 was made to the Copper 
 Company within a few days of our going. 
 
 Mr. LINKIATEB, in reply to the Court, said the distillery had realized 
 ll,G28. 
 
 The bankrupt, examined by Mr. LIXKLATEB, said I state positively 
 that on the 13th of October Mr. Chapman asked me if we had any margins 
 we could give him, and I mentioned one of Qregson's, about 1400. Wo 
 had a larger margin of Messrs. Hoffman's some thousands but I did not 
 think it prudent to give him that. I had margins in the hands of a dozen 
 houses, but I could not give him them without injuring my credit ; and Mr. 
 Chapman said he did not wish us to do anything to injure our credit. 
 
 Mr. Chapman. That is false. 
 
 The Bankrupt. I did not tell him of the margins which we had in the 
 hands of other houses. I believe that the warrants held by Barnett, Hoare, 
 and Co. had been lodged by Webb to secure his debt of 15,000. To the 
 best of my belief they are the same. Will you swear it ? The bankrupt 
 hesitated to answer this question, and then asked to be allowed to see the 
 warrants again. 
 
 Mr. LINZLATEB. Yes, certainly, you shall look at them again, and as 
 long as you like, before you answer that question. 
 
 After perusing the warrants, the bankrupt said : I believe that they are 
 the same warrants. They were warrants which Mr. Cole had had in his pos- 
 session, and they are from me to Mr. Webb. We were Webb's supporters. 
 We saw all the payments and receipts of the distillery. Mr. Webb became 
 indebted to Messrs. Barnett, Hoare, and Co., and we gave him the warrants 
 which he lodged with them. He paid us nothing for them, but ho gave us 
 a general consideration for transacting his business ; he allowed us so much 
 a gallon on all the spirits we sold. To the best of my belief, wo lent him 
 the warrants to deposit with Barnett and Co. Wo did not go to Naples in 
 our own name, but we took our own names twenty-four hours after wo had 
 arrived there. Wo were not induced to do so by being taken before a 
 magistrate. Had you any dirks or revolvers about you ? I had a revolver, 
 and found it very useful. I do not know whether Mr. Davidson had a 
 dirk or not. No wonder, then, that Mr. Beard found it necessary to dis- 
 guise himself. No, it was the lazzaroui who proved the utility of my 
 revolver. 
 
 Mr. J. W. Cole was briefly re-examined by Mr. LIXKLATEB as to the 
 spelter which he supplied to make up the amount represented by certain
 
 682 APPE1TDIS. 
 
 \varrants held by Overend, Gurney, and Co. He stated that the 400 tons 
 supplied did not belong to those -warrants. Messrs. Overend, Gumey, and 
 Co. had no claim oil it. He supplied it at 15 a ton, but for that they 
 would have had to pay 25. Overend and Co. gave him credit for 
 120,000 with respect to the distillery, and allowed him interest upon that 
 sum. In 1853 the amount of interest with which he was so credited was 
 1000, and the balance owing by him to the bank was about 40,000 ; this 
 was subsequently reduced. Thought he had communicated to Mr. Gordon 
 the effect of his interview with Mr. Beard, who came to ask him for advice 
 as to how he was insured himself against loss as to the amount Davidson 
 and Gordon owed him ; told Beard that he had acted rather sillily in 
 attaching their account at their bankers and then coming for advice as to 
 what they should do. Putting the cart before the horse? Yes, just so; 
 the end of it was. I was not the originator of the transaction with the 
 Westminster bonds. He saw Davidson and Gordon on the 17th of June 
 (the day they left). Gordon said he could not meet his cheques, and did 
 not know what to do. He said Mr. Elmslie had told him to keep out of 
 the way. Acceptances of Davidson and Gordon for 30,000 had passed 
 through his hands ; did not know they were drawn by Mr. Molineux. 
 They were for "Westminster bonds which were not forthcoming. He held 
 them as between the parties, but did not give them back to Davidson and 
 Gordon. They went into the hands of a solicitor. At the interview with 
 Mr. Chapman, on the 13th of October, did not hear Mr. Chapman ask 
 about Marquis. Mr. Beard told him that Messrs. Overend, Gurr.ey, and 
 Co. had thrown discredit on Davidson and Gordon at the time ho had 
 given them credit, but that he had given them credit notwithstanding. 
 
 By Mr. LEWIS. I merely held the 30,000 worth of bills as a trustee 
 or stakeholder. At that time there had been large dealings in Westminster 
 bonds ; they had sold for as much as 90 or 100, and interest had been 
 paid upon them. Beard's debt arose from Mr. Hudson, M.P., having dis- 
 honoured his acceptance. He believed the bill had since been paid. 
 
 His HOJJOTJE. here intimated that Mr. Hawkins was at liberty to put 
 any question he chose to Mr. Chapman, though he might not address the 
 Court. 
 
 Mr. Chapman, being recalled, produced a note signed by Davidson and 
 Gordon, dated April, 1853, for 92,000. He also identified five warrants, 
 representing 300 tons of spelter, arid verified his deposition of the 10th 
 June, 1855. He adhered to the statement that he had conversations with 
 Gordon on the 15th and 17th of October. He had no more doubt of it 
 than he had of his own existence. 
 
 By Mr. LEWIS. In my examination on the 20th December, 1S55, I 
 stated that I had no separate conversation with Gordon, but that refers to 
 the interview of the 13th, and not of the 12th. After 1S53, nj new
 
 APPENDIX. 
 
 warrants were deposited. In my examinations of August and December, 
 1855, I did not express satisfaction with Gordon's conduct as to the 
 warrants. Did you not express your satisfaction with Gordon's con- 
 duct (upon being examined at these dates) with regard to the warrants ? 
 I say I have not done so. Not at all ? No, certainly not. I should say 
 I have never spoken except in terms of disparagement of them. I have no 
 legal ground for making any charges against Davidson and Gordon of 
 having concocted warrants ; Mr. Cole has taken that on himself. Has Mr. 
 Cole taken on himself the charge of having concocted warrants ? Well, 
 not of concocting warrants exactly, but of having removed metal. Did 
 you hear Mr. Justice Erie make this observation ? (Impatiently) : No, I 
 did not. I know nothing about Mr. Justice Erie. 
 
 Mr. LEWIS remonstrated with the witness upon his having replied so 
 hastily, and reminded him that the question about to be put to him had 
 reference to an observation made by Mr. Justice Erie while he (witness) 
 was under examination before that learned judge, and might naturally be 
 supposed, therefore, to have heard all that passed. 
 
 Witness. I was prevented from answering Mr. Justice Erie, or I 
 should have been glad to have done so. 
 
 Mr. LEWIS. Pray have the goodness to answer my questions simply, 
 Mr. Chapman. It is a feature of your evidence, that we have too many 
 explanations and too few facts. 
 
 Witness. I do not see it. 
 
 Mr. LEWIS. I am about to read from the short-hand notes you have 
 yourself produced of your own examination. Mr. Justice Erie says, " The 
 observation upon it, according to this witness is, that he clears Gordon 
 from any fraud." Mr. Chambers upon that replies, "Yes, he does quite, 
 from that." Did you hear Mr. Justice Erie say that? I cannot say, but 
 it is entirely consistent with what I now state. 
 
 His HONOUB thought the whole examination should be read. 
 
 Mr. LUTKLATEB thought it of much more importance to Mr. Chapman 
 than he imagined to have this matter cleared up. If Mr. Justice Erie 
 made that observation in the hearing of Mr. Chapman, it would become ex- 
 ceedingly important. 
 
 The COMMISSIONS. Repeat the question, and then read the whole of 
 the examination. 
 
 Mr. LEWIS again put the question. 
 
 Witness. I will just read the answer in my own words that I gave to 
 a question. No, no, Mr. Chapman ; I asked you ft direct question, whe- 
 ther you heard that observation ? I really cannot say whether I did or 
 not. Did you hoar him say it or not ? If you aak me the question, I 
 should say I do not remember it, but I will read from the short-hand note* 
 what I did say. Then I will ask you whether you believe Mr. Justice
 
 684 APPENDIX. 
 
 Erie said it ? I say I am not conscious of it. I cannot remember what 
 was said by a judge two years ago. Do you believe Mr. Justice Erie said 
 so ? I should say certainly I do, because it is in the short-hand writer's 
 notes ; but I recollect particularly that I left it quite an open matter. I 
 said we have been defrauded, but I did not say by whom. Do you mean 
 that you purposely omitted all mention of the 17th cf October ? I had 
 no opportunity of mentioning it. 
 
 Mr. LEWIS then read the whole of the examination of Mr. Chapman 
 on the 25th of August at the Old Bailey, upon the occasion of the trial of 
 the bankrupts for non-surrender to their bankruptcy. 
 
 Mr. Lwis. Now, having heard that read, I ask you, did you pur- 
 posely omit any mention of the conversation of the 17th ? Mr. Chapman. 
 Xo. Did you not say you had not mentioned it before, because you did 
 not wish to be a voluntary accuser of Mr. Gordon ? I did not wish to do 
 so. But is that the reason you kept it back ? I had no opportunity of 
 stating it. You see you place yourself in a dilemma. You give two 
 reasons ; it cannot be both ; which is it ? because you had no opportunity 
 of mentioning it, or was it because you did not desire to do so ? My 
 answer is, because I was never asked. In my examination of the 10th of 
 July, 1855, my statement that I had no communication with Cole or 
 Gordon " on this subject," refers to the warrants for 400 tons of spelter 
 which had been alluded to. 
 
 By Mr. HAWKINS. At the previous examinations, not a single ques- 
 tion was put to me with respect to any other interview than that of the 
 13th of October, 1855. When I said on the last occasion that I traced 
 the copper shipped by Gordon, I meant that I did so by Gordon's admis- 
 sion, which enabled me to get the letter directing Gregsons to pay the 
 balance to me. I never spoke in favour of Davidson and Gordon after the 
 13th of October, but frequently the reverse. On one occasion, hearing 
 that some one was discounting their paper, I held up both my hands, and 
 said, " Is it possible that you can be doing business with those people ?" 
 Again, Messrs. Sichell and Co., of Manchester, wrote to us shortly before 
 October 13, to ask us our opinion of the standing of Davidson and Gor- 
 don, to which we replied that they were respectable, active young men, 
 and we thought thriving ; but that they were colonial brokers, and we 
 could not understand what gave rise to these inquiries from Manchester 
 why they should be buying Manchester goods. After the 13th, it occurred 
 to us that we had written this account of them, and we wrote again, re- 
 ferring to our former letter, and said that in consequence of something 
 that had occurred, we had changed our opinion, and recommended exceed- 
 ing caution. I likewise said to Mr. Beard that I should not trust them. 
 He said, " That is a very different opinion to the rest of the world." I 
 said, " Any one else may say what he likes I should not trust them."
 
 APPEJTDIX. 685 
 
 Gordon's statement that I asked on Oct. 13, if they could give us any 
 margins, is perfectly false. 
 
 By Mr. LI>*KLATEB. The paper produced is an account of our trans- 
 actions with the bankrupts after Oct. 13, 1853, but they are all continua- 
 tions of old transactions. We discounted bills for them after our inter- 
 view with Mr. Beard ; the reason was that we had an enormous amount of 
 property in our hands belonging to Mr. Cole, consisting of metals of 
 which we knew nothing, and for the realization of which we were de- 
 pendent on him. I recollect discounting two bills in January, 1854, which 
 were accepted by George Hudson and C. J. Hair. We discounted some 
 other bills for them in April, but we charged something out of them for 
 previous loans. I had previously told people that I had not much faith in 
 Davidson and Gordon. 
 
 Mr. LEWIS. Do I understand you to say that you were giving a bad 
 account of them while you were discounting their bills ? 
 
 Witness. That is not so ; you have the facts as I have stated them. 
 
 Mr. LEWIS again put the question, and pressed the witness repeatedly 
 upon it, and at length he said, " I recollect discounting bills for them, but 
 we took those bills at our own hazard, to get out of other things." 
 
 Mr. LINKLATEB then said, in support of the charges against the bank- 
 rupt?, that the assignees, though admitting the bankrupts had suffered 
 severely, were bound by a sense of public duty to oppose their application 
 for certificate. The case derived a more painful interest from the fact that 
 others had participated in their irregularities. After reviewing the course 
 of their trading, and their connection with Joseph Windle Cole and Webb, 
 Mr. Linklater observed that these parties had only been enabled to embark 
 in their gigantic transactions by means of the funds supplied by Overend, 
 Gurney and Co., and others. Webb was the first to stop, and in July, 
 1853, the bankrupts took upon them the distillery at West Ham. Referring 
 to the warrants, he said that their form, if carefully examined, could 
 deceive no one. Cole had obtained advances on these warrants from 
 Overend, Gurney, and Co., and had also lent some to the bankrupts. The 
 whole found their way to Messrs. Overend and Co., to the amount of 
 323,000 ; but during 1852 and 1853 Colo contrived, with the consent of 
 Maltby, to get property away to the extent of 430,000. Some was 
 removed to Grove's Wharf, and the rest disposed of. So early as June, 
 1852, Cole had told Gordon that if he dealt with those warrants, he would 
 do so on his own responsibility. In October, 1853, Messrs. Overend and 
 Gurney held warrants for 373,000 worth of property which represented 
 nothing. Of those 10-1,000 had been deposited by the bankrupts. When 
 Overend, Gurney and Co., on September 24th, determined upon realizing, 
 the bankrupts knew that the bubble must burst, and this accordingly took 
 place at the interview of the 13th October. It was then distinctly brought
 
 686 APPENDIX. 
 
 to the knowledge of Gordon that the property had been removed. Not- 
 withstanding this he had over and over again denied the fact iu his exami- 
 nation. Mr. Linklater then proceeded to remark upon the conduct 
 and transactions of Mr. Chapman with the bankrupts. It was manifest, he 
 said, that Mr. Chapman wished to get from Davidson and Gordon all the 
 property they possessed. Mr. Chapman had said his firm had never 
 intended to accept the West Ham distillery as a security for the enormous 
 debt due to the house of Overend, Gurney and Co. by Cole Brothers 
 and Davidson and Gordon : but he had produced the draft of a transfer of 
 the distillery from Davidson and Gordon, and Cole Brothers, to the house 
 of Overend, Gurney and Co., for 120,000. It appeared that Davidson and 
 Gordon, and Cole and Mr. Chapman had all been acting together. Indeed, 
 it would seem that Mr. Cole had acted as the agent, if not the friend of Mr. 
 Chapman ; for when Davidson and Gordon lodged warrants for 400 tons of 
 spelter with Mr. Chapman, he sold the spelter, and if the purchasers had 
 applied for their goods, they would have found they had long since 
 been removed from Hagan's Wharf. The warrants were dated as far back 
 as 1831, and the advances were made by Overend and Co. in the year 
 1834. When Mr. Chapman found there was something wrong about 
 the warrants, he got Cole to procure for him 320 tons of spelter at 15 per 
 ton. Why ? Mr. Chapman was bound to deliver 400 tons to the persons 
 to whom he had sold the spelter j he had delivered fictitious warrants for 
 that spelter ; he did not know they were fictitious beforehand, but after- 
 wards he did. To whom then did he apply ? To his friend and customer, 
 Mr. Cole. Mr. Chapman knew that there were no goods at the wharf to 
 represent those warrants. He knew that it must have been a dishonest act 
 that abstracted them from the wharf, but he found that Cole could find him 
 850 tons of spelter at 15 a ton, when its market price was 25. How 
 could Mr. Cole manage that ? Could Mr. Cole afford to make the firm of 
 Overend and Gurney a present of the difference ? 
 
 Mr. Cole. Yes. (Laughter.) 
 
 Mr. LINKLATEB. Then I hope that Mr. Chapman feels complimented 
 by the gracious act of a gentleman in so high and important a position as 
 that occupied by Mr. Joseph Windle Cole. (Laughter.) A very serious part 
 of the case, however, was that Mr. Chapman had withheld the fact of that 
 important confession of Gordon's on the 17th October, that he had extracted 
 the spelter to which the warrants referred, which he had deposited with 
 Chapman. The bankrupts had been acquitted on two indictments, because 
 Mr. Chapman had suppressed the fact that they had robbed him of spelter 
 to the value of 8000, and left him in possession of worthless papers. 
 Again and again had Mr. Chapman protected Gordon, and thrown around 
 him the shield of the house of Overend, Gurney, and Co., and it was not 
 until the expiration of the sentence the bankrupts had undergone that Mr.
 
 APPEMJIX. 687 
 
 Chapman disclosed the interview with and confession of Gordon on the 17th 
 October, by his evidence in this court. Mr. Chapman had put the assignees 
 to very large unnecessary eipensos by thus defeating the prosecutions they 
 had instituted; but, fortunately for the ends of justice, Messrs. David- 
 son and Gordon had been convicted after escaping two indictments, which 
 were overthrown upon purely technical grounds. But beyond this Messrs- 
 Ovcrend and Gurney had proved against the estate of the bankrupts for 
 upwards of 120,000, but they afterwards withdrew that proof, and agreed 
 to pay 3000. He (Linklater) could not regard this as anything but 
 an attempt to silence the assignees. 
 
 Mr. LEWIS objected to this being imported into the case ; they were not 
 upon the case of Cole, but upon the application of Davidson and Gordon 
 for certificates. 
 
 His HOUOUB said, it was clear that Cole had conspired with Davidson 
 and Gordon, and there was quite sufficient evidence to connect them 
 together. Indeed, this was very much like a trial for conspiracy, and he 
 should take the act of one of those persons as the act of the others. 
 
 Mr. LDTCLATEB then proceeded to state the four grounds upon which 
 the assignees considered they had cause to complain of Mr. Chapman's con- 
 duct in connection with the bankrupts. First, that Overend and Gurney, 
 on discovering the great fraud committed upon them, on the 13th October, 
 1853, not only warned no one of the danger of dealing with Cole or David- 
 sou and Gordon, but when questioned (according to the evidence of Mr. 
 Chapman), never hinted a suggestion that either of them was dishonest. 
 Secondly, that Overend and Gurney continued their transactions with Cole 
 down to the time of the bankruptcy of Davidson and Gordon, and also with 
 Davidson and Gordon, and tliat the accounts consequently with Colo and 
 Davidson were reduced by no less a sum than 23,000. Thirdly, the trans- 
 actions with Cole with the spelter accepting it at 15, when the market 
 price was 25 per ton, giving thereby a benefit to the extent of 4000, 
 which must either have been a present of Mr. Colo's, or must have belonged 
 to tome other persons, from whom Mr. Colo had taken the spelter which he 
 could control for 15 per ton ; and fourthly, that Mr. Chapman had 
 concealed information of vital importance in the prosecution of the 
 bankrupts. 
 
 The sitting was then adjourned for the purpose of enabling the counsel 
 of Mr. Davidson (absent on the present occasion) to be present, when Mr. 
 Liuklater would proceed to address the Court upon that part of the case 
 with which he (Davidson) was more particularly connected, lus Honour 
 expressing his opinion that it was probable the learned counsel in question 
 might be desirous of showing a distinction to exist between the cases of the 
 two bankrupt*, a probability for which his Honour thought there was 
 eonae ground.
 
 688 APPE5TDIX, 
 
 (Before Mr. Commissioner GoriEUBX, December 24, 1858.) 
 
 Mr. Linklater appeared for the assignees, Mr. Roxburgh for Davidson, 
 and Mr. C. E. Lewis for Gordon. 
 
 Mr. Thomas B. Sparkes, clerk to Freeman and Co., produced two orders 
 from the bankrupts, dated July 16, 1853, and July 23, 1853, to deliver 50 
 tons of copper. The order was to deliver the copper to Messrs. Gregson 
 and Co., and no doubt the copper was delivered to that firm, as per Mr. 
 Gregson's signature produced. The copper had never been out of the 
 Copper Company's warehouse until delivered to the order of Messrs. 
 Gregson and Co. 
 
 The handwriting of the bankrupts, ordering the copper, was next 
 proved. The shipment of the copper per "Alfred" was also proved ; as also 
 were the invoices of the bankrupts, and the account sales of Messrs. 
 Gregson and Co., dated February and April, 1854, by Messrs. Gregson's 
 agents in Calcutta. 
 
 Mr. LINKLATER said the object of the evidence was to show that 
 Mr. Chapman must have been mistaken when he stated that the margin on 
 copper, by which they had benefited, had been the proceeds of warrants 
 for copper as held by them (Messrs. Overend and Co.). 
 
 Mr. Bois, examined, said he was present at the interview of the 17th of 
 October, 1853, between Mr. Gordon and Mr. Chapman. On that occasion 
 he produced to Mr. Gordon the list now shown. It was in his (Bois's) 
 handwriting. The bankrupt and Mr. Chapman went through that list for 
 the purpose of ascertaining where the goods were. Mr. Gordon on that 
 occasion said the copper represented by a warrant dated June 21, 1851, had 
 been shipped by him. He found the word " No " written in pencil by Mr. 
 Chapman on the list of warrants. On the 17th of October, Gordon said 
 the property represented by the warrants had been shipped. The word 
 " No" meant that there was no copper. 
 
 By Mr. ROXBURGH. The interview took place between ten and four 
 o'clock, at G5, Lombard Street. Mr. Chapman, Mr. Gordon, and himself 
 were present. He (Bois) was called in to see the warrants when Mr. Gor- 
 don was there. He was present at the interview on the 13th of October ; 
 it took place about 7 P.M. Nothing was then said about the warrants, 
 except in a general way. The warrants were not produced. Mr. 'Chapman 
 had a list of the warrants as supplied by Cole. The list produced is that 
 list; it was prepared by Mr. Chapman to know the extent of Cole's 
 warrants as held by the house of Overend and Gurney. The list was made 
 out on the afternoon of the 13th, after Mr. Chapman had seen Mr. Cole. He 
 (Mr. Bois) was not present at the first interview between Mr. Chapman and 
 Cole. He first recollected the interview of the 17th of October, at the pre- 
 sent certificate meeting ; it was brought to his recollection by a letter of the 
 bankrupt produced, requesting the balance of Gregson's copper to be paid to
 
 I'ESDIX. 
 
 Messrs. Ovcrcnd and Co. It was in consequence of the letter to -which he 
 had referred, and another letter of the 17th of October, that he recollected 
 the interview of the 17th. The letter was written by Gordon in their 
 office, at the interview in question, and on considering the matter the event 
 was brought to his mind. The corresponding marks on the paper pro- 
 duced, and the letter being written on their paper and not on Gordon's, 
 brought the mntter to his recollection. The reference in the letter to 
 " shipments per Gregson and Co.," assisted him. The letter was prepared 
 on the llth by Mr. Chapman. Until yesterday he had had no conversa- 
 tion with Mr. Chapman on the subject of the interview of the 17th. One 
 letter of the bankrupt came enclosed to them in the other. Gordon took 
 away the letter to keep a copy of it. This was on the 17th ; it was 
 returned afterwards in the other letter. Gordon was present when 
 the pencil-marks were made on the warrants on the 17th by Mr. Chapman. 
 It was only from the date of the letters that he was able to swear to the 
 date of the interview on the 17th. Ho never searched for any of these 
 papers on the occasions of the trials of the bankrupts. 
 
 The COMMISSIONER. I hope we have done with the evidence at last. I 
 don't much like this aftermath. (Laughter.) 
 
 After a pause, Mr. LEWIS said he would only call one more witness ; 
 and Mr. William Thorogood Harkness, clerk to Messrs. Joyce, having 
 proved the shipment of the copper in July, 1853, per "Alfred," to Messrs. 
 Gregson and Co., the evidence in the case was concluded. 
 
 Mr. LISKLATEB. Without reference to anything that has transpired 
 elsewhere, the Court will permit me to say that if it should be attempted 
 to be said on the other side that Messrs. Overend, Gurney, and Co. within 
 a few days after they had parted with these warrants got them back again 
 into their possession, that, sir, would be an entire fallacy ; as it would, 
 also, be a fallacy to say that Messrs. Overend, Gurney, and Co. had no 
 transaction with Cole or with Davidson and Gordon which had not 
 reference to some previous transactions between the bankrupts and that 
 house. Nor would it be correct to say that the debt of Messrs. Overend, 
 Gurney, and Co. with those two houses was not reduced to the amount of 
 some 23,000 in respect of new transactions. Now, sir, the facts, as your 
 Honour has heard them, with reference to these warrants, as to which 
 I will say but a very few words, were these : I find, by documents which 
 Overend, Guruey, and Co. have furnished me, that they did receive in 
 respect of the 400 tons of ppclter on the 5th of October, and on the llth of 
 October, the amount of the sales from the purchaser. On the 13th 
 of October, two days afterwards, there was the discovery, as Mr. Chapman 
 says, of the fraud ; and it becomes important for this Court to see how it 
 was that the bankrupts and Mr. Cole because Mr. Cole's case is that he 
 was supporting the bankrupts were euablcd to go ou from the mouth of 
 
 T T
 
 G90 APPENDIX. 
 
 October, 1853, down to the month of June, 1834, keeping up their credit 
 to the very last. It appears that Messrs. Overend, Gurney, and Co., on the 
 llth of October, sold a portion of the spelter represented by these fictitious 
 warrants ; and a few days previously they eold other 300 tons, and received 
 the money from the purchaser, it is true, a day or two before the 13th of 
 October part on the 5th and part on the llth the total amount of the 
 sale being 8000. The warrants given out by Overend and Guruey repre- 
 sent all the spelter which they had sold as lying at Hagen's Wharf, and on 
 the 13th of October they knew that those persons who had purchased 
 from them this spelter had in their possession warrants to all intents and 
 purposes utterly valueless as valueless as would be a forged bill of 
 exchange. 
 
 The CoiraisslONEE. Did they know that on the 13th? 
 
 Mr LIKKLATEB. On the 13th I speak only from Mr. Chapman's own 
 evidence, which entirely contradicts a statement made elsewhere on the 
 13th of October they became aware that all those documents were as value- 
 less and as far from genuine as would be a forged bill of exchange. They 
 knew that those documents were transferable by endorsement, and would 
 in all probability be dealt with from week to week, or perhaps from day to 
 day, and that the purchaser would take only the documents, the property 
 represented to be lying at the wharf having no existence. Messrs. Over- 
 end, Gurney, and Co. on that 13th of October knew that they could go to 
 their purchaser and say, " The documents you have got we find have some 
 irregularity connected with them; don't endorse them away in the world ; 
 don't put your name at the back of a paper which is in reality only a forgery, 
 but return them to us, and we will perform our contract, which is to deliver 
 you 400 tons of spelter." The accounts which Messrs. Overaid, Gurney, 
 and Co. themselves render show, that although they were aware that these 
 warrants were out in the hands of the purchasers, or those who had bought 
 from them, some of them for no less than four months, they allowed those 
 warrants to be available in the market, to be transferred, endorsee!, and dealt 
 with as the purchasers chose. Sir, it became necessary, in order to con- 
 ceal from the purchaser their fictitious character and give a colour of genuine- 
 ness to that which they knew to be fictitious, that somehow or other, 
 when the purchaser presented his warrants at the wharf, there should be 
 found spelter to meet them ; and accordingly they employ Mr. Cole 
 the last gentleman in the world according to Mr. Chapman's evidence, for 
 Mr. Chapman says, as far as the moral delinquency was concerned, Mr. 
 Cole took all that upon himself they employ Mr. Cole as their agent, and 
 they say to Mr. Cole, " Although we can't get spelter in the market under 
 20 a ton" or, as Mr. Cole says, 25 a ton "we beg that you will, 
 somehow or another we don't care how you do it have spelter at the 
 wharf ready to be delivered to the purchaser when he presents his forged
 
 APPENDIX. C91 
 
 document. Let him remain unrler the impression that it is perfectly 
 genuine." Mr. Cole says, " I will do so if you vill pay me 15 a ton." I 
 
 veforo how it was that Mr. Cole could afford to make Messrs. Over- 
 end, Gurney, and Co. a present of spelter at 15 a ton. Mr. Cole said he 
 was in a position to do that and a great deal more. But something more 
 was wanted than mere passiveness on the part of Overend, Gurney, and 
 Co. Then, when that false warrant was produced at the wharf, the wharf- 
 inger must be a party to the fraud, in order to keep up the deception to be 
 practised on the purchaser, because the warrant itself says that the pur- 
 chaser is to take the goods from Maltby's Wharf, paying rent from a day 
 very long preceding namely, January, 1851, or June, 1851. When, there- 
 fore, the warrant was presented at Maltby's Wharf, it became necessary for 
 
 '. altby to bo an accomplice with Mr. Cole, who was employed by 
 Ovcrend, Gurney, and Co. to prepare an invoice, or rather to make out a 
 bill of charges against the purchaser, charging the purchaser for spelter 
 that was lying there as from the month of June or January, 1851. Why, 
 sir, Mr. Chapman knew that the purchaser took it subject to the payment 
 of those charges, but he knew well enough that there were no such charges 
 applicable to that spelter, for it had been taken away by Mr. Cole long 
 before. But when the purchaser applied for the spelter, Mr, Maltby ren- 
 dered to him an account for spelter delivered under that warrant, as if that 
 were the spelter represented by that warrant, and alleging that that spelter 
 had been there from January, 1S51, the time of its delivery. That was the 
 necessity of the case. Mr. Chapman knew perfectly well that unless Mr. 
 Maltby, the wharfinger, was guilty of a fraud ; unless Mr. Cole, the accom- 
 plice of the wharfinger, as Mr. Chapman must have known, was a party 
 with him to such au arrangement as that, the irregularity of this warrant 
 must have been discovered, and Messrs. Davidson and Gordon's career and 
 that of Mr. Cole must have ceased long before. Sir, there is no difference 
 whatever between this spelter warrant and a bill of exchange ; and it may 
 be likened to the case of a bill drawn by Cole on Maltby, endorsed to Over- 
 end and Gurney, and discounted by them. Within two days, or shortly 
 after the discount, we will assume that Messrs. Overend, Gurney, and Co. 
 are told that the acceptance of Maltby is a forgery. Wo will assume that, 
 before they learn it is a forgery, they have themselves discounted this bill with 
 some bill-broker, in whose hands they know it is at the time they discover 
 the forgery. They don't go to the bill-broker and say, " Give us back the 
 bill, and we will pay you the money." Although they know that thid forgery 
 may be passed by endorsement from day to day, and at last come into tho 
 hands of any person who has given his money for it, they permit that bill 
 to remain out in the world for months for the last delivery of tho epeltcr 
 is, I think, on the 4th of February, nearly four months after tho transac- 
 tion, and after they discover the fraud and their excuse for doing that is
 
 G9LJ APPEKBTX 
 
 this : "We did not go to the person with \vhom we discounted the bill an'1 
 get it back from him ; vre warned no one of the consequences of taking that 
 bill, because, forsooth, we ourselves, when that bill was presented at Mr. 
 Maltby's, managed to place, somehow or other, in Mr. Maltby's hands so 
 many guineas to meet the acceptance. That is really the case of these 
 spelter warrants. Is is all very well to say that the house of Overend and 
 Co. were able to make good that loss ; but assume that this was a forged 
 bill for 8000 ; it is parted with in the world ; for four months that bill is 
 circulated as a genuine document ; and suppose before the time of the matu- 
 rity of that bill, for which Messrs. Overend and Gurney profess to be will- 
 ing to provide the money, Overend and Gurney had, in fact, failed. It 
 may be, as it has been said, an impossible occurrence. Suppose it had. 
 occurred, the person who had taken the bill months after Messrs. Overend 
 and Co. knew it to be a forgery would lose his money, and when Overend 
 and Gurney were applied to on the subject they would say, " Friend, we 
 are very sorry, but we really intended to take it up when it became due, but 
 circumstances have changed." Was there ever a clerk who embezzled his 
 master's money who did not say, " I took it intending to restore it ; cir- 
 cumstances have overtaken me, I cannot return it ; I am very sorry you 
 should be a loser ?" It happens in this case, owing to their good fortune, 
 that Overend and Gurney were able to provide the means to meet this 
 document when it was presented, and therefore the purchaser remained in 
 ignorance. It is clear, therefore, that Overend and Guruey were not only 
 consenting parties to not exposing this fraud, but that they were really 
 permitting a continued deception to be practised by Mr. Cole and Mr. 
 Maltby oil the public, representing to the public that they were genuine 
 documents when, in fact, they were fictitious. With reference to the 
 transactions of Messrs. Overend and Gurney, it appears that they con- 
 tinued their transactions with Cole ; and although with Davidson and Gor- 
 don the amount was only 7000, the extent of the transactions with Cole 
 was between 40,000 and 60,000, making, therefore, the amount of trans- 
 actions with both houses nearly 70,000, out of which transactions, to the 
 prejudice of the new creditors, Messrs. Overend and Gurney got into their 
 pockets some 23,000. 
 
 The ConmssioSEE. I do not quite follow that. 
 
 Mr. LINKLATEB. The evidence shows that after the 13th of October 
 and this is Mr. Chapman's own statement he continued his dealings 
 with Mr. Cole, and that those dealings were to the extent of 50,000 or 
 60,000. They had new transactions with Davidson and Gordon to the 
 extent of 7000, and, out of those new transactions with Davidson and; 
 Gordon and Cole, Overend and Gurney retained, as against then- old debts, 
 some 23,000. I say the evidence shows most clearly that those trans- 
 actions had no reference whatever to any previous dealings, either between
 
 APPENDIX. G93 
 
 Overend and Gurney and Cole, or Overend and Gurncy and Davidson and 
 Gordon, and the facts stand admitted on Mr. Chapman's own examination, 
 and arc abundantly proved even by the accounts they render, that they did 
 get into their possession, by their new dealings with these gentlemen, soino 
 23,000. The case, therefore, stands just where I put it on the last occa- 
 sion, that for months Messrs. Overend and Gurney permitted these false 
 warrants to be circulated in the world, keeping up the credit of Davidson 
 and Gordon for so long a period ; they permitted them to be represented 
 as genuine documents, when, in fact, they were fictitious ; that they did 
 continue their transactions, and we know were gainers to the extent of 
 23,000, which otherwise they would not have got. I say that it is the 
 admitted fact upon the evidence, and it is for those who have the facts 
 stated to them, to judge with what motives those subsequent dealings wero 
 continued. With reference to the mode in which the spelter was provided 
 for meeting the warrants, that appears to me to be one of those irregulari- 
 ties connected with the case, because this spelter was spelter supplied on 
 account of Davidson and Gordon ; and I am obliged, therefore, in dealing 
 with the position of Messrs. Davidson and Gordon, to introduce the names 
 of those who have been so mixed up in transactions connected with their 
 affairs. It has been utterly impossible for me to avoid it. With reference 
 to the interview of the 17th of October, about which some additional evi- 
 dence has been introduced now, I confess it is a question on which the 
 Court will, no doubt, have regard to the statements on all sides. It will 
 have to consider whether or not the circumstances in which Mr. Chapman 
 is placed by his evidence at so late a stage, induces the Court to disbelieve 
 his statement. 
 
 The COMMISSIONER. He is supported by Mr. Bois. 
 
 Mr. LINKLATBB. It is a question of credit. I have been impressed 
 with circumstances which undoubtedly require very serious consideration, 
 in judging of the credit and credibility to which Mr. Chapman is entitled 
 in respect of that. I myself have come to the conclusion that, in the 
 main, Mr. Chapman and Mr. Bois aro speaking the truth. Of course, 
 when Mr. Chapman tells us that from the 17th of October, 1853, down to 
 nearly the end of 1858, some five years, although these bankrupts were 
 subjected to prosecutions, in the course of which he was called as a witness 
 over and over again, when he tells us that for the purpose (and he could 
 have no other object) of shielding these bankrupts from the consequences 
 of their delinquency, Mr. Chapman withheld that information from a 
 court of justice, it necessarily shakes one's belief in the story which Mr. 
 Chapman tells us when ho conies at hist and confesses it, and says 
 in the witness-box it was provoked from him by Mr. Gordon, but after- 
 wards says it was provoked from him by me. Mr. Chapman stands, there- 
 fore, by his own confession, convicted of having wilfully withheld that in-
 
 694 APPENDIX. 
 
 formation with the object of protecting these gentlemen from the conse- 
 quences of their misdeeds, when the law was pursuing them ; and I feel 
 that that is, in judging the question of the credibility of Mr. Chapman, a 
 most important ingredient. Mr. Bois has been examined, and he confirms 
 the statement of Mr. Chapman ; but the most singular part of the case is, 
 that time after time we have new documents introduced of the utmost im- 
 portance, which, in all probability, if they had been produced before, would 
 hare left the matter without the possibility of doubt ; and now we have 
 something produced at the tenth examination which Mr. Chapman wrote 
 at the time, which has heretofore been withheld ; when these things are 
 produced, almost torn from Mr. Chapman, one cannot help coming to the 
 conclusion that even to the last hour, if he could, he -would have withheld 
 the information, which is clearly of great importance to the interests of 
 justice. Mr. Chapman admits that on the 17th of October Gordon ad- 
 mitted that he had robbed him of his copper, and he says he thought him, 
 on that occasion, a thief. 
 
 The COMMISSIONER. Does he say that ? 
 
 Mr. LINKLATER. "When asked by my friend, Mr. Lerds, if he called 
 him a thief, he says, " I don't know what I called him ; I know what I 
 thought him." What is the course which Mr. Chapman pursues with a 
 person whom he thinks a thief? He gets from him an order, out of which 
 results a payment of 1500 two days after Davidson and Gordon had 
 absconded. Of course it is not for me to suggest that that is not the way 
 in which such great houses should deal with persons whom they believe to 
 be such great delinquents. 
 
 Mr. LEWIS. You must not for one moment suppose that I am Mr 
 Chapman's advocate. 
 
 Mr. LINKLATER. I was about to say, when my friend interrupted me, 
 that it would be for him to show that Mr. Gordon was not the delinquent 
 he was represented to be. 
 
 The COMMISSIONER. I do not think, Mr. Lewis, you can quarrel with 
 Mr. Linklater's mode of putting it. He is giving the preponderance of 
 credit to Gordon. 
 
 Mr. LIXKLATER. I really must not be supposed to say that, if your 
 Honour will pardon me. 
 
 The COMMISSIONER. Very near it. 
 
 Mr. LIVKLATER. I merely say this, that one thing is clear, and that 
 is, that in the statement with reference to the shipment of the copper, Mr. 
 Chapman is mistaken beyond all question. I do not think Mr. Chapman, 
 supported by Mr. Bois, supported by the documents produced, is mistaken 
 -when he says the meeting of the 17 th of October did take place. I think 
 he is mistaken when he says Mr. Gordon stated that the copper repre- 
 sented by the warrants in their possession, was in the hands of Gregson
 
 AITEXI G9o 
 
 and Co. Mr. Linklater then proeeedftd to review tho bankrupts' conduct, 
 and c stating that there would not bo a farthing for the 
 
 tors, vi deuce given in this court should lead to the recovery by 
 
 the assignees of sonic thousands of pounds from Messrs. Overcnd and 
 Gurney, with respect to tho transaction in which the narnca of Messrs. 
 
 on and Co. had been mentioned. 
 
 Tho CcnixnssiosEii. It occurred to me at the time that this sum 
 miglit be recovered. 
 
 . Ll3>"ELATER resumed. It had been a painful duty to review the 
 circumstances of this painful cnso, and had the bankrupts alone been con- 
 cerned, the assignees would have been content that they should, after the? 
 punishment they had undergone, receive certificates. He would now leave 
 the case in the hands of tho Court. 
 
 COIIMISSIOXEB remarked that it was proper that it should be 
 known that Mr. Chapman's counsel could not address the Court in reply 
 to any evidence or statements which he might consider capable of explana- 
 tion. 
 
 . RoxBtTKGH addressed the Court for Davidson. Divested of stage 
 clothing, the conduct of his client had been very different from that in 
 which it had hitherto been enveloped by a mass of prejudice. Whatever 
 might have been the conduct of Messrs. Overend and Gurney, his client 
 had nothing to do with that or with the warrants. 
 
 The CoirmssiolTEE. Do you not think that Cole is identified with the 
 bankrupts? 
 
 ROXBTTBOII. lie had noticed a remark of the Court to the effect 
 taai the case had been one of conspiracy. 
 
 The COMMISSIONS. Conspiracy means concert, and perhaps concert 
 would have been the better word. 
 
 ROXBURGH submitted that there had been neither conspiracy nor 
 
 ' . He was at a loss to conceive on what evidence either could be 
 
 sustained what evidence there was on wliich a guilty knowledge by the 
 
 bankrupts of tho character of the warrants could be maintained. Their 
 
 transactions were faithfully recorded in their books, event ' mchcd 
 
 to a shilling, and Mr. Clmpman had fully acquitted tho bankrupts of any 
 
 lodge of the fraud that had been commii ; uition 
 
 of the warrani#. The Court was not to assume the guilt of tho ban! 
 
 from the number of indict) . '.vieiTe.l nu'.iinst them. 
 
 The bankrupts miqht attribute their misfortunes to tho date of their intro- 
 
 ducti' \Vubb luul, however, bivn introduced to them 
 
 ntrty-chainnnn of Lloyd's, and they had no reason 
 
 io anticipate evil. It was not disputed th:;t the distillery had cost 
 200,000, and it was on the strcn"'.i of this that tins bankrupt- 
 advan. I the amount > l ' l: ^ moment tho dis-
 
 G9G APPENDIX. 
 
 tillerj had been " nursed," and it was felt that if that could oe got rid of, 
 the distillery would become a source of profit. In June, 1853, they took 
 security. Davidson and Gordon had subsequently got introduced into the 
 distillers' monopoly, and from that time an actual net profit at the rate of 
 nearly 20,000 a-year had been realized. In the first eight months the 
 bankrupts being men inexperienced in the business the profits had been 
 10,000, as proved by the books. At the time of the bankruptcy, how- 
 ever, the works at the distillery, which had cost upwards of 200,000, 
 were torn down piecemeal, and that circumstance was the cause of the 
 present position of the bankrupts' estate. But for the loss thereby occa- 
 sioned, there would never have been any occasion for the bankrupts to 
 appear here. It was easy when the ruin had been inflicted to say what 
 ought to have been done. No doubt the bankrupts acted unwisely in 
 leaving the country, but they had done so under advice. At the time of 
 leaving they had a fair right to believe that the profits accruing from the 
 distillery would be sufficient to pay their debts, and that their absence 
 would only be of a temporary character. Cole was a person who earned 
 on a very large business in metals, the largest in London, and so large 
 that at one time he had the control of the market. His dealings were 
 principally in tin, copper, and spelter, and he had at one time unquestion- 
 ablv control over the spelter market. Dock warrants were instruments 
 that passed from hand to hand, but it was incumbent upon parties in this 
 case if they intended to retain their individual rights to see that the spelter 
 purporting to be represented by the warrants was registered at the wharf 
 in their names. It did not, however, appear that they had taken even the 
 trouble to ascertain that the goods were there. 
 
 Mr. LIKKLATEE remarked that the warrants themselves set forth that 
 the goods passed by endorsement. The learned counsel had probably 
 never seen a warrant in his life, or he would not advance his present 
 arguments. 
 
 Mr. ROXBURGH continued. It was clear from the warrants that their 
 holders could only sue the wharfinger in the name of the person to whom 
 they were originally granted. If no notice to " stop" the delivery had 
 been given to the wharfinger, he might deliver them to Cole. Messrs. 
 Overend and Gurney had not sent to the wharf to make any inquiry, 
 neither had they given any notice to the wharfinger. If they had given 
 the notice Cole could not have removed the goods. It had been alleged 
 that Mr. Edwards' s evidence must destroy the case of his client ; but 
 what did it show ? Merely that he had been introduced to Cole by the 
 bankrupts, and in such a way that the commission resulting from the 
 transaction had been actually divided between them the bankrupts and 
 Edwards. Gordon had been in the habit of raising money for Cole. This 
 was done as an agent. Cole had held the bankrupts his debtors for the
 
 APPEXDU. G97 
 
 amount of his warrants less the brokerage. His excuse for removing the 
 spelter, in fact, was that they held the warrants, and there was between 
 them a disputed account. There was not a tittle of evidence that the 
 bankrupts had the slightest knowledge of the character of the warrants 
 prior to October 13, 1853. Gordon had been to the wharf and seen a 
 quantity of spelter which he believed to be that represented by the war- 
 rants. Mr. Chapman had always stated that they had no right to impute 
 any moral delinquency to the bankrupts up to the date of the 13th of 
 October. Up to that day he was persuaded that the bankrupts liad been 
 the dupes of Cole. He did not make them a party to the matter at all. 
 Still " harping on my daughter" (laughter), he had said that Cole had 
 taken the entire matter upon himself. Mr. Edwards had so far confirmed 
 this view that he had remained on friendly terms with the bankrupts up to 
 the present hour. Mr. Roxburgh proceeded to quote from Mr. Vaughan's 
 evidence, and in so doing read th passage, "And had sold it to the 
 persons they represented." 
 
 Mr. LIXKLATEB begged to correct the learned counsel. The words 
 should be " And had not sold it to the persons they represented." The 
 omission of the word " not" in the copy of the evidence quoted by the 
 learned counsel was evidently a mistake on the part of the party who had 
 taken the copy of the depositions from which he quoted. 
 
 The COMMISSIONER. It is singular that this little word "not" should 
 have formed the subject of correction hi two different instances. How 
 stands the fact ? 
 
 Mr. LIXKLATEE. In the original transcript of the short-hand writer's 
 notes the word " not" appears. 
 
 Mr. ROXBURGH resumed. The omission of the word in his copy was 
 clearly a mistake. If Mr. Vaughan and Freeman and Copper Company 
 had been so wronged, as was alleged, was it not strange that they should 
 have retained the bankrupts as their agents up to the time of the bank- 
 ruptcy ? There could not have been the flagrantly fraudulent conduct on 
 the part of the bankrupts that was now urged, or Freeman and Copper 
 Company would not have advanced the bankrupts 2000 some months 
 afterwards on securities. If the securities handed Freeman and Copper 
 Company had been realized at the time, they would scarcely be creditors at 
 all at the present moment. As regarded the alleged confession of the 
 bankrupt Gordon on the 17th of October, the whole story was consistent 
 with the bankrupt's evidence that no such interview or conversation had 
 taken place as that alleged by Mr. Chapman and Mr. Bois, and was 
 wholly inconsistent with its occurrence. Gordon said, on the 13th of 
 October, that he could give margins on warrants. Mr. Chapman jumped 
 to the conclusion that there must be margins on the warrants ho held. It 
 TSM clear that Mr. Chapman and his clerk were so confused and bothered
 
 698 APPENDIX. 
 
 by what passed that they at length had brought themselves to the conclu- 
 sion that there had been an interview on the 17th. Their interview was 
 inconceivable on any other hypothesis. Mr. Chapman, who had forgotten 
 BO much, had, it was obvious, worked himself into the belief that an inter- 
 view had taken place and statements been made which had not occurred. 
 There was no reason why the bankrupt Gordon should have volunteered a 
 statement that he was a rogue. Mr. Koxburgh proceeded to refer to other 
 allegations in the case. Having been subjected to the severe punishment 
 of two years' imprisonment, with hard labour, and a further imprisonment 
 of ten months, the bankrupts had undergone sufficient punishment, and 
 the Cotu-t would not now inflict a severe penalty of a total refusal of 
 certificates. The bankrupts had kept proper books ; their expenditure had 
 not been excessive. It was desirable that a chance should be given them 
 of becoming honest and respectable men. They were both but young ; 
 justice was not vindictive ; and the extreme penalty of the law was not, 
 after the punishment the defendants had undergone, necessary as an 
 example. 
 
 Mr. LEWIS addressed the Court for Gordon. He did not complain of 
 the opposition ; on the contrary, his client challenged inquiry. He was 
 desirous to give such explanations here as he was not permitted to give in 
 another court. It was very easy to indict bankrupts for obtaining goods 
 within three months of their bankruptcy, under the false colour and pre- 
 tence of carrying on trade ; but it was not easy in a criminal court, where 
 the mouths of the persons indicted were stopped, to explain their conduct 
 as occasion might require. Whether Overend and Gurncy had conspired 
 to conceal the fraud was a matter upon which he would not here enter. 
 One thing was clear, that it was admitted on all hands that Davidson and 
 Gordon knew nothing about the fraudulent character of the warrants until 
 the 13th of October. The manner in which Mr. Chapman had quibbled in 
 giving his evidence was deserving of notice, and the evidence itself was a 
 confused mass, contradictory in its parts, and undeserving of credit. The 
 evidence tliat had been given by Cole in respect to Ins having stated that 
 the bankrupts must issue the warrants on their own responsibility, admitted 
 of a satisfactory answer. Cole said he thus told the bankrupts about June, 
 1852. Now the warrants had all passed out of Gordon's possession before 
 the end of the year 1851. Gordon did not recollect Cole making the re- 
 mark, but if he had made the remark, the obvious interpretation would be 
 that he held Gordon responsible not for the character of the warrants, but 
 for the amount they represented. The Court would not, upon such a casual 
 observation, if really made, fix Gordon with a guilty knowledge and com- 
 plicity. The wan-ants being out of Davidson and Gordon's possession in 
 1852, why should Cole have made the remark that they (Davidson and 
 Gordon), in 1852, would issue them upon their own responsibility ? The
 
 APPENDIX. 699 
 
 bulk of the warrants were, in 1851, in the hands of MV'sr?. Overdid and 
 Gurney, snd the Court would not assume a guilty knowledge on the part 
 of the bankrupts from the large amount that the warrants represented. 
 Pavidson and Gordon could not have derived any personal benefit from tho 
 issue of the warrants. Mr. Laing and his pamphlet had dug up Edwards, 
 wlio, it was alleged, would prove the case against the bankrupts. So far 
 from it, however, he rather proved the ease in favour of the bankrupts. Ho 
 had divided brokerage with them, and the whole tenour of his evidence was 
 to show that the bankrupts were innocent of any complicity. Up to the 
 prescr.t moment Mr. Edwards had the fullest confidence in Gordon. Mr. 
 Lewis proceeded to quote a letter of the 28th of September, 1853, addressed 
 by the bankrupts to Messrs. Overend and Gurney, as also a letter to them 
 of the 10th of October, 1853, in which tho bankrupts wished the sale of 
 certain warrants to bo effected. Would they have done that if they had 
 possessed a guilty knowledge of their character ? The warrants which they 
 suggested should be sold represented goods which had been removed, and 
 it was impossible that anyone could arrive at the conclusion, after a perusal 
 of those letters, that at the time they were written the bankrupts could have 
 had a guilty knowledge. It was a fortunate tlu'ng for the bankrupts that 
 they were able to produce these letters ; and the Court would not, because 
 the bankrupts laboured under a cloud of suspicion, do violence to the first 
 principles of evidence by pronouncing them guilty of complicity. To refer 
 to the alleged transaction of the 17th of October, as related by Mr. Chap- 
 man and Mr. Bois, ho would candidly admit that if that evidence were 
 received, he could not ask for a certificate. It would be like asking for the 
 certificate of a spoliator and a robber. But the whole case was adverse to 
 such a conclusion. If his client was the cold-blooded robber alleged, lu's 
 case must fall to the ground. Mr. Chapman stated that on going through 
 the list of the warrants, he had been struck witli seeing the names of 
 Messrs'. Gregson and Co., whom lie knew to be a leading firm in the Cit v, 
 and Mr. Chapman said that nothing could be wrong with those warrants, 
 and that therefore Gordon said, " There is nothing wrong with the war- 
 rants, but the fact is, that I have shifted the copper." Mr. Chapman had 
 first denied having reduced his balance against the bankrupts after tho 13th 
 of October, and it was not until Mr. Linklater had pressed him that In- 
 admitted having received 1660 from Messrs. Gregson as a margin on (In- 
 copper in question. " Oh, yes," then said Mr. Chapman, in his bland way, 
 " I did receive the 1660 ; but allow me to explain ; " and he then lets Mr. 
 Gordon into the hole. Tho only way in which Mr. Chapman eoni 
 out of the charge which Mr. Linklater made was by fixing tipon the bank- 
 rupt this charge of the 17th of October. Mr. Chapman had been examined 
 eight linn's without disclosing this alleged intervir lie said In- 
 
 did not wish to volunteer a charge, and, next, tliat C onion had proroked
 
 700 APPENDIX. 
 
 it, and ultimately, -when further pressed, lie said Mr. Linklater had pro- 
 voked it. Could the Court believe Mr. Chapman's own statement ? If it 
 did, his (Mr. Lewis's) client must be an uncertificated bankrupt for life. 
 The observation which Mr. Chapman said he made on that occasion, " I 
 will never breathe the air again with that man," was really dramatic, but 
 notwithstanding that Mr. Chapman had refused to breathe the air with 
 him again, he did not decline to discount his bills or receive his copper. 
 (A laugh.) Mr. Gordon might have committed forgery in handing bills 
 for discount, and he was not sure that that would not have been a less 
 offence than ^the other. The only excuse Mr. Chapman could give for 
 receiving the proceeds of the margin on copper, was to give this story, and 
 state that the warrants he held were the wan-ants that represented the 
 copper in question. But it had been clearly shown that the warrants he 
 held had no reference to the copper hi the hands of Messrs. Gregson and 
 Co. A kind of fatality seemed to accompany Mr. Chapman's statements- 
 If six questions were put to him it would be strange if, in giving his 
 answers, he did not contradict himself three tunes. Was it likely that a 
 man would, without solicitation, go and disclose to parties that he had 
 robbed them ? Mr. Chapman said the confession had occasioned a painful 
 recollection on his mind, but he had not fully recollected it till a few weeks 
 ago. The whole story had its origin in the natural confusion which was 
 evidently part of Mr. Chapman's character, and owing to which natural 
 confusion it could only be said that he had unintentionally mis-stated any- 
 thing. He was like the mendicant who so often said that he was blind that 
 he actually at length believed himself to be blind. (A laugh.) Mr. Bois, 
 standing at the time at his master's elbow, had been forced by circum- 
 stances to corroborate his statements. The manner in which questions had 
 been quibbled with by these gentlemen warranted these observations. Mr. 
 Bois could not, however, at first recall the singular circumstance of Mr. 
 Chapman saying he would never breathe the ah* again with that man. 
 Fortunately, Mr. Bois had been examined before, and his evidence, as com- 
 pared with his present evidence, was so at variance that the Court, having 
 regard to all the circumstances, would, he was persuaded, have no difficulty 
 in arriving at the conclusion that his (Mr. Lewis's) client was the witness 
 of truth. He had said on one occasion that after the discovery of the 13th 
 of October he had seen Gordon, who behaved like a gentleman, and he 
 (Bois) treated him as one. If Bois could not recollect the transaction of 
 the 17th of October a year and a-half after its alleged occurrence, how 
 could he recollect it after the lapse of five years ? It was to keep Mr. 
 Chapman's reputation on its legs that this story had been invented. The 
 evidence of the bankrupt was, as compared with that of Mr. Chapman and 
 Mr. Bois, as light compared with darkness. 
 
 Mr. LINKLATEB here remarked that Mr. Chapman must have been
 
 APPENDIX. 701 
 
 telling an untruth if the warrants he held did not actually represent the 
 copper referred to on the 17th. 
 
 Mr. LEWIS proceeded to refer to the other charges against the bank- 
 rupt?, and to contend that they admitted of satisfactory explanation as 
 now given. After the bankrupts left the country, they had kept an account 
 of every shilling they expended down to a sixpennyworth of brandy-and- 
 water. 
 
 Mr. LINKLATEB. There were plenty of them. (Laughter.) 
 
 Mr. LEWIS. Then there were plenty of entries. The bankrupts had 
 been hunted when abroad by Mr. Beard, under the pretence of watching 
 them for the creditors, when his only object was to get a preference for 
 himself. He had, however, since had occasion to go away from his credi- 
 tors. The distillery, which had cost the bankrupts 206,000, had been 
 torn down piecemeal, and sold for 8000, at a tune when it was producing 
 a profit of 20,000 a-year. The difference between the two sums of 
 206,000 and 8000 would pay the bankrupts' debts in full. Mr. Nichol- 
 son, the distiller, had said that having regard to the fact of the bankrupts 
 having beeu admitted into the monopoly of the London distillers, their 
 distillery was capable of producing a profit of from 20,000 to 40,000 
 a-year. The bankrupts' error had been over-trading. Their advances to 
 Webb, and the discovery of their loss on Cole's warrants, had overwhelmed 
 them. During the seven days next preceding their leaving the country 
 they had paid away 15,000, as duly recorded in their books. This did 
 not look like dishonesty. The bankrupts had, it was true, been convicted 
 of obtaining goods improperly within three months of their bankruptcy ; 
 but if traders could be convicted on such evidence as had been adduced 
 there was not one bankrupt in a hundred who might not be similarly con- 
 victed. It was not fair to worry and persecute the bankrupts after the 
 punishment they had undergone. They had been put on their trial for 
 almost every offence of which they were alleged to have been guilty, and 
 the justice of the case would now be satisfied by a judgment short of the 
 total refusal of their certificates. 
 
 His HojiOUB. I will give my judgment on Wednesday, the 5th of 
 January. 
 
 THE TY.lfTS-CHAPMAN CONTROVERSY, 
 
 ABISING OUT OF THE INVESTIGATION INTO THE AFFAIRS OF MESSES. 
 DAVIDSON AXD GOUDON AND ME. JOSEPH WUfDLE COLE. 
 
 (From the Times of December 18th, 1858.) 
 
 MB. DAVID BABCLAT CHAPMAN has addressed us a letter in explanation 
 of the transactions of the great house of Overend and Gurney with the
 
 702 APPENDIX. 
 
 bankrupt firm of Davidson and Gordon. It was quite time. "We cannot 
 afford that the commercial honour of our chief London establishment 
 should be lightly canvassed, and that public opinion should :e nain unde- 
 cided. It is well that -we should be in a position to form a stable judg- 
 ment ; and that the public may be resolved either that the operations of 
 Messrs. Overend and Gurney have been of a strictly proper character, or 
 that they have been such as are repudiated and condemned by the com- 
 mercial world. The case seems to have now arrived at a point where we may 
 all form a definitive conclusion. In niauy numbers of the Times, and 
 notably in those of the 8th and 16th of this month, the evidence of all the 
 parties is recorded. In the letter we publish to-day, Mr. Chapman, the 
 gentleman so grievously implicated as the managing partner in the cen- 
 sured firm, oilers his own version of the transactions and his own expla- 
 nation of the statements made in the witness-box. There is no reason to 
 suppose that any after-proceeding can alter the facts as they now present 
 themselves. 
 
 The story of the bankruptcy is as involved as the plot of one of Mrs. 
 Sadcliffe's romances ; but if we clear away all the extraneous facts, and 
 apply ourselves only to those which appear to incriminate the honour of 
 the great city house, they may be stated within veiy reasonable limits. 
 Tor this purpose we have to go back to the 17th of October, 1853. At 
 this date Messrs. Overend and Gurney had advanced very large sums of 
 money to Davidson and Gordon on the security of warrants for a certain 
 quantity of spelter, supposed to be lying at a wharf known to both the 
 parties. At the same time, as we read the case, Overend and Gurney were 
 in this further position : Relying upon the possession of the metal under 
 the warrants, they had one month before sold in the market, for delivery 
 on a named future day, a quantity of spelter equal to that which the war- 
 rants represented. So far everything was straightforward. Overend and 
 Gurney had advanced money upon the security of goods, and they had 
 contracted to sell those goods to repay themselves. But upon this 17th of 
 October a very different state of circumstances was disclosed. On account 
 of some suspicions, Mr. Chapman (whom we must throughout identify 
 with Overend and Guruey, for he was the managing partner) said to 
 Gordon, " I should like to go through your warrants with you." Gordon 
 assented, and Mr. Bois brought in the parcel of warrants. " Upon turning 
 them over," says Mr. Chapman in his evidence, " we observed three war- 
 rants endorsed by a most respectable house Messrs. Gregson and Co. I 
 immediately said, ' It is impossible there can be anything wrong with such 
 warrants as these;' upon which Gordon said, 'No, there is nothing wrong 
 with the wan-ants, but the fact is, I have shipped the copper.' " There is 
 nothing ambiguous about this statement. It was as if A. had said to B.> 
 " You hold my cheque for 100 ; it is a capital cheque with a genuine
 
 APPENDIX. 703 
 
 c. and drawn upon a good bunk, but the fact is I have just dra\ra 
 out ail il no dispute at all ns to the fact that both 
 
 an and Gordon on this 17th of October camo to tho clear under- 
 standing that those warrants were shams and swindles that they were at 
 beat but like a duplicate bill of exchange after the first has been paid, 
 warrants professed to give a title to goods expressed to be lying at 
 
 I's Wharf, and both Chapman and Gordon knew that no such goods 
 
 here. When this discovery 'as made, what did Messrs. Overend 
 and GuniL-y tell Mr. Bois to do with those warrants, now detected to bo 
 
 lent and lying papers? Forgery apart, they were as fraudulent aa 
 false notes or fraudulent money. A solvent commercial man must shrink 
 from touching such things. There could be no compromise in a matter of 
 this kind. Xo honest man could deal with a forged note or a fictitious 
 warrant, knowing its true character, unless to destroy it. There were two 
 courses of action which were compatible with honour. The amount of 
 
 .;s so great that it might be dangerous to rnako it known even to 
 such a house as that of Orerend and Gurney ; then burn the documents, 
 terminate your connection with Gordon, and endure the loss. The delin- 
 quents are solvent as to the rest of the world. Keep your costly secret, 
 and pay for it like honourable men. If this is too costly, then there is an 
 alternative. Denounce the fraud at once, and fear not ; break up this 
 dishonest firm ; it is your duty to take care that they do not acquire credit 
 hereafter from smaller men by the idea that they are leaning upon Over- 
 end and Gurney. These appear to us to be the only two courses con- 
 sistont with commercial honour or commercial honesty. There was one 
 other course. It was to reissue these empty paper falsehoods with the 
 names of Overend and Guraey upon them, and to retard tho detection of 
 Davidson and Gordon until more victims had fallen into their snares, and 
 perhaps their estate might bo better worth dividing. Such a suggestion, 
 we grant, is fit only for Petticoat Lane. It is impossible that such a 
 thought could pass through tho mind of an English merchant. Yet, 
 unless we entirely mistake the evidence, this was what Messrs. Overend 
 and Gurney did. Mr. Chapman, who tells us that he would not " defile 
 himself" with a distillery, did defile himself with these false warrants. 
 We should like to hare a photograph of that first-rate City man, when he 
 handed over those orders upon llagen's Wharf for goods which he knew 
 not to be there. Ho had sold the goods, and he had received the money. 
 At the specified time, instead of revealing to the buyers the fraud that had 
 radioed upon him, he in his turn practised the same fraud upon 
 
 -he handed over to the buyers of those goods those fictitious war- 
 rants. This, again, is not a disputed fact ; Mr. Chapman savs, " The 
 er of our warrants never became aware that they \\ero of eo 
 doubtful a character." Mr. Liukluter thou asks, " Was not your object,
 
 70i APPENDIX. 
 
 in the mode in which you carried out this transaction, to conceal from the 
 purchaser the fact that the warrants which he held were of a fictitious 
 character ?" To this very pertinent question Mr. Chapman returned this 
 very significant answer " I really must decline to answer that question." 
 The witness's objection was allowed no man is by our law compellable to 
 incriminate himself. But Mr. Chapman intended to procure the goods 
 elsewhere, and thus complete his contract. Of course he did. So also, in 
 all probability, did Cole, and so also did Davidson and Gordon. But let 
 us suppose and we must try great houses by the same rules as we try 
 little houses that between the issue of these false warrants and the ob- 
 taining the goods to meet them, Overend and Gurney had become insol- 
 vent. What difference would there then have been between Messrs. Over- 
 end and Gurney and Messrs. Davidson and Gordon ? We may be told 
 that the supposition is impossible. Granted ; but the mere capacity to 
 indemnify parties against loss does not justify, either legally or morally, 
 the act of issuing false securities. The moment those false warrants had 
 been issued by Mr. Chapman as substantial securities, Mr. Chapman was 
 guilty of a false pretence. His intention was not to defraud the parties, 
 but only to deceive them ; but that is the case with nearly every man who 
 does a wrong act. The only difference is that Mr. Chapman was able to 
 make up his deficiencies, and your ordinary criminal defaulter is not. The 
 consequences, however, were as disastrous to innocent parties as if Mr. 
 Chapman had not been able to fulfil his engagements. The purchasers of 
 the spelter got their goods and were satisfied, but other people, relying, as 
 they affirm, upon the notorious relations between Overend and Gurney 
 and Davidson and Gordon, trusted the fraudulent firm, and fell with them, 
 in their inevitable crash. The fact, we fear, is beyond denial that this 
 great firm, having fallen in with swindlers, and having discovered their 
 frauds, did not denounce those frauds, but used the instruments of the 
 swindlers, and so far acted in complicity with them. 
 
 To all these facts Mr. Chapman offers the defence which we print else- 
 vrhere. Every reader will give to it the weight which he may think it 
 deserves ; but to us it appears to be no defence and no denial. It is a 
 question of morals and of honour, and Mr. Chapman pleads that his firm 
 lost more than 126,000. Again it is a question of morals and of honour, 
 and Mr. Chapman pleads that " its magnitude took it out of all ordinary 
 course of proceeding." We can make allowances for the necessities of 
 struggling men ; but we have here to deal with a star of the first magni- 
 tude. We must believe that to Overend and Gurney the loss of a sum 
 under 200,000, entering, of course, as it must, into the average of their 
 calculated losses, could excite no more anxious feeling than vexation. In 
 speaking of such men as these, we do not understand the argument which 
 puts commercial rectitude in one scale and gold in another. We cannot
 
 APPENDIX. 705 
 
 admit, that because a large sum was at stake, this house was justified in 
 confederating with swindlers in the circulation of false securities. We 
 cannot allow that the laws that protect property do not apply to very large 
 transactions, or that magnitude in the operation converts wrong into right. 
 The little episode of the distillery may excite disgust, and can only serve 
 to keep alive the sentiment of suspicion against lofty professors which has 
 not been suffered to sleep since Sir John Paul's case first aroused it. 
 There is something dramatic in the comicality of Mr. Chapman selling 
 these fictitious warrants, and starting at the idea of " defiling himself" 
 with a distillery. Wo mark the prdgress of the scene wherein the dis- 
 tillery is valued, its probable profits are noted down, its title-deeds are 
 handed over, " to see what the lawyers can make of them," to the moment 
 when the fact comes forth that the money-profits of this gainful traffic 
 cannot be secured without the house of Overend appearing as the osten- 
 sible workers. Then, for the first time, Mr. Gurncy starts up, and, full of 
 indignation, declares that he would not do this great sin, or scandal, to 
 recover every shilling of his money ; for the sale of English gin is so 
 much more defiling than the sale of fraudulent and worthless securities. 
 The whole story resembles nothing but some touches in Moliere. Such 
 doings by such men do not give us much inclination to laugh ; otherwise 
 nothing could bo more ridiculous than these conscientious capitalists 
 straining at the gnat while the hump of the swallowed camel is protruding 
 under their waistcoats. 
 
 Letter referred to in the preceding leader : 
 
 To the Editor of the Times. 
 
 Sir, As my name has been injuriously mentioned in connection with 
 this case, and, as my position before the Court as a witness only did not 
 admit of my making the statements I could have desired, I hope you will 
 allow me a space in your columns to make the following remarks : 
 
 1. With reference to our loss by Cole, it might be supposed that it 
 resulted in only 5000 or 6000, whereas, the actual sum was more than 
 126,000'; for, though we carried to the credit of his account current David- 
 son and Gordon's note for 120,000 (because we could not bring it into 
 affairs without so doing), his indebtedness to us was not thereby reduced, 
 though the form was changed, as he remained equally liable by his endorse- 
 ment on it ; and having thus brought it in, it became necessary, when 
 making up his account current, that we should compute interest to the credit, 
 as the note carried interest to the debit. 
 
 The note itself was never out of our possession, or made use of in any 
 thape or form, excepting for production in courts of law. 
 
 2. As to the impression which Cole has stated he was under, that we 
 intended to take the distillery at 120,000, it was a most erroneous one, 
 
 z z
 
 700 APPENDIX. 
 
 for such an idea never entered our minds. It seems to have arisen from 
 my asking him whether he would be perfectly solvent as regards his 
 other creditors if the 120,000 which he Lad abstracted from us, and lent 
 to the distillery, were not pressed against him, and to which he replied that 
 he was abundantly solvent, confirming the same by his late evidence, that 
 he was at that time worth 150,000. A good deal of mystery which has 
 surrounded the lease has been cleared up by its having lately transpired 
 that our solicitors, under a misinterpretation of instructions, when the 
 papers were given to them to see " what they could make of them," actually 
 prepared a draught of a mortgage without our privity, and in doing so had 
 to communicate with Cole, which, no doubt, led him to suppose we were 
 going to take one ; but when they came to make their report to us, and 
 stated that no mortgage could be available without the premises were 
 entered upon, and the business worked, they were stopped in limine by my 
 late partner, Mr. Grurney, who declared that nothing should induce him to 
 do it, and the subject was never referred to afterwards. 
 
 3. As to any subsequent transactions with the parties, we never had any 
 that could in the slightest degree give them a credit in the commercial 
 circle, and I believe I may say there was not one which had not some 
 reference to outstanding affairs. 
 
 The amount received by us by voluntary payments from Cole does not 
 amount on our claim to the sum which his other creditors have received 
 under his bankruptcy, so that in this respect we have had no advantage over 
 them. And, as regards their new creditors since 1853, much as we lament 
 their loss, we cannot take blame to ourselves, as, leaving out our large 
 claims on the parties, their solvency could not be doubted ; in fact, to this 
 moment I cannot understand how they can have got rid of the enormous 
 sum derived from us. 
 
 It is a satisfaction to us that no case has appeared of loss by any new 
 advance on Hagen's warrants since October, 1853. It was most painful 
 to us not to divulge the fraud under which we were suffering, but its mag- 
 nitude took it out of all ordinary course of proceeding, and compelled us 
 to have consideration for our own position with the public. 
 I remain, sir, your obedient servant, 
 
 December 16. D. B. 
 
 (From the Times, December 20, 1558.) 
 
 When Mr. David Barclay Chapman sought the use of our columns to 
 explain his relations, and those of the house he represented, with the firm 
 of Davidson and Gordon we had a right to conclude that he submitted the 
 affair finally to the judgment of the public. He had made his statement 
 on oath in court, and he had added his coalmen tary in this journal. Having
 
 APPENDIX. 707 
 
 deviated from the ordinary course of merely reporting the case, and having 
 permitted Mr. Chapman to give his own interpretation of the proceedings, 
 it became our duty to review those portions of the evidence which applied 
 to the issue Mr. Chapman had raised, and to record our impressions upon 
 the judicial facts then patent before the world. Perhaps wo were a little 
 premature so far as the interests of other parties are concerned. Mr. 
 Gordon's solicitor informs us, in a letter printed elsewhere, that Mr. Chap- 
 man's statement is to be contested hereafter, and if we had been aware of 
 this we should probably have delayed the publication of Mr. Chapman's 
 letter until the whole investigation was completed. We should also, of 
 course, have deferred our own comments. But, so far as Mr. Chapman is 
 concerned, it is not suggested that he has not put before the world all that 
 he is desirous should bo read. In choosing our time and opportunity we 
 may possibly have done Mr. Gordon some wrong, but wo have done none 
 to Mr. Chapman. It was his appeal to public opinion which called forth 
 our comment. 
 
 Of that comment Messrs. Overend and Gurney and Mr. Chapman now 
 complain. Mr. Chapman, it will be seen, accompanies his complaint with 
 a threat of legal proceedings. This part of the matter must be left, if the 
 occasion should ever arise, to the verdict of a jury. No one is so silly as 
 to suppose that we can be deterred by any such threat from doing that 
 which we believe to bo legally right and morally obligatory, and no one 
 will imagine that we record any imputation upon the commercial honour of 
 a conspicuous merchant without reluctance, or would not repair any error 
 on such a subject with prompt alacrity. But it is not we who accuse Mr. 
 Chapman. We have not stated a single fact against lu'm. Wo have no 
 private knowledge of the affairs of Messrs. Overend and Gurney. All wo 
 know of them is from the evidence given in court. It is not the Times, 
 but it is Mr. Chapman, who makes assertions against Mr. Chapman, and he 
 makes those assertions upon oath. Wo were careful not to form our 
 judgment upon the evidence of the other witnesses in the case. We took 
 Mr. Chapman's own words, and we quoted them. He has never hinted an 
 objection to the correctness of the report. He has even confirmed it as 
 accurate by commenting upon it without taking exception to it. Tlio only 
 question is, whether the evidence doe*, or does not, disclose a moral wrong. 
 We must now, in our own justification, more largely reproduce those por- 
 tions of Mr. Chapman's evidence which determined the judgment wo 
 formed on that issue. In Mr. Chapman's examination on the 7th iust., he 
 says: 
 
 ' On the 17th of October, after the discovery of the fraud, up to which 
 time we had no reason whatever to allege any moral delinquency against 
 Mr. Gordon, because Mr. Colo had taken that entirely upon himself, Mr. 
 Gordon called at our office, and 1 said to him, ' I should like to go through
 
 708 APPENDIX. 
 
 your warrants with you.' He assented, upon which I called Mr. Bois, who 
 brought a parcel of warrants. Upon turning them over, we observed three 
 warrants endorsed by a most respectable house Messrs. Gregson and Co. 
 I immediately said, ' It is impossible there can be anything wrong with 
 such warrants as these ; upoe which Gordon said, ' No, there is nothing 
 wrong with tJie warrants, but the fact is, I have shipped the copper? I was 
 shocked. He stood before me in a different light, and has done from that 
 moment, and I immediately requested him to give an order on Gregson 
 and Co. for the payment to us of whatever surplus might remain upon that. 
 He sent the letter down within an hour afterwards, which we forwarded to 
 Gregson, and that ends the whole transaction. I do not believe I have 
 ever exchanged a single word with Mr. Gordon since, even by mouth 
 or pen. 
 
 " Examination continued. We traced the copper, and found Gordon 
 had shipped it, and that he had given Gregson and Co. claims upon it. 
 
 " Mr. LDTKXATEK. Did you after the 13th of October, 1853, discount 
 bills for Davidson and Gordon ? 
 
 "Mr. Chapman. I think you must remember that I have answered 
 that question elsewhere. We discounted some 70,000 worth of bills, 
 in order to enable them to take up a loan which we made them on 
 some shells. 
 
 " Mr. LlKKLATEE. Did you on the occasion of those discounts retain 
 on each transaction a considerable sum as against prior advances ? 
 
 " Mr. Chapman. Most distinctly not." 
 
 The examination then diverges to other matters ; but the same subject 
 is afterwards resumed. Mr. Chapman says : 
 
 " We had sold a large quantity of spelter on the 27th of September, in 
 respect of warrants deposited with us ; the amount of the sale was about 
 8000, which had been effected through our broker. After the discovery 
 of the fraud we found we had not spelter sufficient to enable us to perform 
 that contract. I believe the quantity of spelter we had sold was 400 
 tons. We sold it on the 17th of September, long before we had discovered 
 the fraud. 
 
 "Mr. LISKLATEK. Did you not know at the time you delivered those 
 warrants that, but for the assistance of Cole, you would not have sufficient 
 spelter to meet them ? 
 
 " Mr. Chapman. Most certainly. But we knew nothing at all about 
 it till after the discovery of the fraud. 
 
 "Mr. LnnEXATEB. Did you advance money for the purchase of spelter 
 to enable you to complete that contract ? 
 
 "Mr. Chapman. I must explain that, if you will allow me. I may be 
 too anxious to speak most accurately, and appear confused, but I think I 
 am perfectly clear, and I shall be happy to tell you all about it. When
 
 APPENDIX. 709 
 
 these warrants vcere applied for by the parties of whom tee received t7te 
 money, it appeared there was not a sufficient quantity of speller on ike wharf 
 to satisfy them. There were only eighty-two tons. Mr. Colo sent his clerk 
 to inform us that he could not supply the spelter unless we paid him 15 
 a ton, because he had abstracted the spelter and borrowed 15 a ton upon 
 it. \\e said we would have nothing to do with Hagen's Wharf, but if he 
 would briny our warrants, with the parties' receipt vpon them whose money 
 we had obtained, we would pay the 15 a ton. Wo did not pay the money 
 until the warrants were returned to us. The purchaser of our warrants 
 never became aware that they were of so doubtful a character ; but you will 
 find from Mr. Tooney's evidence that they were constantly delivering spelter 
 in tliis way at that wharf. 
 
 " Mr. LINKLATEK. Was not your object, in the mode in which you 
 carried out this transaction, to conceal from the purchaser the fact that the 
 warrants which he held were of a fictitious character ? 
 
 " Mr. Chapman. I really must decline to answer that question. I only 
 know the object was to fulfil our contract with the man whose money wo 
 had received." 
 
 This is the evidence upon which we formed our opinion that Mr. Chap* 
 man, acting for Overend and Guruey, did pass away for valuable considera- 
 tion warrants which he knew to be of a fictitious character. If languago 
 has any meaning, the evidence we quote must bear tho meaning we have 
 affixed to it. It may be all a mistake. Mr. Chapman may have mistaken 
 tho facts, but certainly Mr. Chapman is his own accuser. We ask any 
 commercial man in the world to read this evidence and our comments upon 
 it, and to say whether he does not assent to every word we have written. 
 
 Now, however, Messrs. Overend and Gurney write, " None of the war- 
 rants alluded to ever left our possession after tho discovery of the fraud ;" 
 and Mr. Chapman writes, "We never did issue a single one of the fraudu- 
 lent warrants after the discovery of the fraud." If this be so, we have no 
 more to say. The evidence upon which we commented was a mylh. But 
 is this so ? We do not, of course, suspect these gentlemen of making any 
 disingenuous distinction between any one class of fraudulent warrants and 
 nny other class. We take it that they, in an unqualified manner, deny that 
 they ever did issue to parties for a money consideration warrants which they 
 knew to be fictions, or that they ever, after such knowledge, suffered them 
 to remain out as securities for money which they had received. Wo read 
 this denial, and we re-read Mr. Chapman's evidence, but wo arc without 
 any means of deciding which we are to credit. Wo must believe that thcro 
 is some means of reconciling Mr. Chapman in tho witness-box and Mr. 
 Chapman writing to tho Times, but tho task is beyond our powers. Wo 
 must leave it to Mr. Chapman and the public. We will only say that, if it 
 be possible to render to tho world any explanation which shall remove this
 
 710 APPENDIX, 
 
 great commercial scandal a scandal which is not of our creation, but which 
 has risen up in our law courts it would be a great satisfaction to us and 
 to all classes of commercial men. We all have a common interest that such 
 a house as that of Overend and Gurney should be able thoroughly to vindi- 
 cate its commercial honour. 
 
 Letters referred to in the preceding article : 
 To the Editor of the Times. 
 
 Sir, Allow me to say that the injurious article which you have written 
 in your impression of this date, is founded entirely on a misunderstanding 
 of the evidence. 
 
 We never did issue a single one of the fraudulent warrants after the 
 discovery of the fraud, but adopted precisely the course which you say we 
 ought to have done by determining that on no consideration would we 
 ever part with a warrant that had been deposited with us by Cole and 
 Gordon ; and they remain with us to this day. 
 
 As to the 400 tons which were delivered at Hagen's Wharf, the warrants 
 for these were issued and the money received for them some time pre- 
 viously. 
 
 It appears from the evidence of the wharf porter that there was nothing 
 new or uncommon in the deliveries from Hagan's Wharf, but that shipments 
 thence were large and frequent ; and nobody has pretended to say that they 
 have been misled by such delivery having taken place. 
 
 I quite agree with you that the amount involved does not affect the 
 moral consideration, nor was it referred to by me with any such object, but 
 simply to confute the impression which was endeavoured to be conveyed to 
 the public, that we had escaped nearly scatheless. 
 
 I trust to your sense of justice to insert this in your next publication. 
 I remain, sir, your obedient servant, 
 
 December IS. D. B. CHAPMAN. 
 
 To the Editor of the Times. 
 
 Sir, Since writing to you my letter of the 18th inst., I have been advised 
 that the article therein referred to is of so libellous a character as to justify 
 legal proceedings against you ; and I feel that I have no alternative but to 
 adopt such a course for the purpose of vindicating my character, which has 
 been so wantonly, and, as I shall be prepared to prove, so unjustly assailed. 
 
 I shall fortwith instruct my solicitors to commence such proceedings, 
 unless an immediate and satisfactory retractation be published in your 
 journal ; and under these circumstances I beg to withdraw my letter of the 
 18th inst., or should it already be in type in your columns, to request that 
 you will append this to it. I remain your obedient servant, 
 
 December 19. D. B. CHAPMAN.
 
 APPENDIX. 711 
 
 To the Editor of the Times. 
 
 Sir, Referring to tho charge against us in your article of this date, 
 respecting our transactions with Davidson and Gordon, wo must request 
 that yon will allow us, through your columns, to givo it the most unquali- 
 fied denial, as none of the warrants alluded to ever left our possession after 
 the discovery of tho fraud, and they are still in our safe ; and, further than 
 this, our late partner, Mr. Chapman, gave the strictest instructions to his 
 junior partners upon no consideration to part with any of them, even 
 should Cole offer the bank-notes for them, as he would not have it said that 
 we had reduced our debt to the prejudice of others. We remain yours 
 respectfully, OVEKEND, GUEXEY, AXD Co. 
 
 Lombard Street, December 18. 
 
 To the Editor of the Times. 
 
 Sir, I trust to your sense of justice to insert this communication upon 
 the subject of your leading article on this case. That article assumes the 
 guilt of Messrs. Davidson and Gordon, and as neither of the advocates of 
 the bankrupts has yet been heard, it is not too much to ask both the public 
 and yourself to suspend their judgment till the case is finally closed. At 
 present the case has been so overlaid with extraneous matter, that it has 
 assumed rather the shape of an indictment against Mr. Chapman than an 
 inquiry into the propriety of granting the bankrupts their certificates. With 
 regard to the charge, made against the bankrupts, of complicity with Cole 
 in issuing fraudulent warrants, or in rendering good warrants worthless, I 
 trust I may bo allowed to eay (having heard every word of the evidence), 
 that if the bankrupts are to be tried upon the testimony adduced, they can 
 look forward with confidence to an acquittal. Your article also assumes 
 that the interview of the 17th day of October is a proved or admitted fact. 
 
 Not only is the fact of tho interview on the 17th of October denied upon 
 oath by Mr. Gordon, but also the conversation spoken to by Mr. Chapman. 
 You will not have failed to notice, that this most incriminating statement 
 is made for the first time by Mr. Chapman on his ninth examination, and 
 that it was then brought forward to excuse and account for his receipt of a 
 considerable sum of money, which it is suggested he never would have had, 
 cr been entitled to, had he taken n proper course on the 13th of October, 
 1853, when Colo admitted that ho had made the warrants worthless by 
 removing the goods represented by tho warrants. 
 
 The steps which have been taken to trace the particular transaction 
 with Gregson and Co., referred to in tho alleged conversation, have resulted 
 in the most clear and convincing proof that Mr. Gordon never could have 
 made such a damaging charge against himself; for it was totally untrue 
 that the copper shipped through Grcgson and Co. was the same as that 
 represented by the warrants held by Mr. Chapman. It agreed neither in
 
 712 APPENDIX. 
 
 description nor in quantity -with that mentioned in the -warrants, and is 
 proved to have been shipped direct from the warehouse in Cousin Laue into 
 Joyce's lighter (Messrs, Gregson's lighterman). I remain, sir, your obe- 
 dient servant, CHAELES E. LEWIS, 
 G, Old Jewry, Dec. 18. Solicitor for C. W. Gordon. 
 
 To the Editor of the Times. 
 
 Sir, My attention has been called to the statement of Mr. Cole, of my 
 having advised that wharfingers' warrants were mere waste paper. 
 
 My advice, -which was given at the end of September, 1853, was that 
 these warrants had not the transferable character of bills of lading, so as to 
 pass the property in the goods they purported to represent by mere 
 endorsement and delivery of the warrants ; but that the purchaser should 
 get the transfer entered in the wharfinger's books, or something should be 
 done tantamount to delivering possession of the goods ; adding that in the 
 event of bankruptcy of the person transferring the warrant, the goods, being 
 allowed to remain in his name, would pass to his assignees. 
 
 I had no knowledge or suspicion of any kind that goods had been 
 severed from warrants purporting to represent them, or that anything was 
 wrong respecting any warrant, until after Davidson and Gordon's bank- 
 ruptcy in June, 1854. I am, sir, your obedient servant, 
 
 1, Circus Place, Finsbury Circus, Dec. 16. AETHTTE DIGBT. 
 
 (From the Times, December 21, 1838.) 
 
 We yesterday encouraged Mr. Chapman to offer any explanation which 
 could clear him of the imputations cast upon him by his own evidence in 
 the Court of Bankruptcy. To-day he accepts our overture. For the first 
 time he impugns our report, and insists that the very important vrord 
 " not " has been omitted in one of his answers. The error, if it be an error, 
 is not without its importance, for it tends to show that Mr. Chapman, at 
 the time he issued the warrants, was not aware of their being fictitious. 
 The Morning Herald and the Morning Post concur in the following ver- 
 sion of this part of the examination. Mr. Chapman being in the witness- 
 box, the examination proceeds as follows : 
 
 " Mr. LINKIATEB. Did you not before the 17th of October discover 
 that there was not a sufficient quantity of spelter to fulfil the contracts ? 
 
 " Witness. It was not until some days after the 13th of October we 
 discovered that the warrants were not represented by spelter, and the whole 
 amount of spelter at the wharf was only 82 tons. We told Cole whenever 
 he brought the warrants back we would pay 15 per ton, and we did pay 
 Cole 15 per ton on 300 tons and upwards. 
 
 " Mr. LINKLATEE. Now, did you not pay the money in order to get 
 back those fictitious warrants ?
 
 APPENDIX. 713 
 
 " Witness. No ; we would not pay the money until the warrants were 
 restored to us. 
 
 " Mr. LINKLATEK. Who delivered the spelter ? 
 
 " Witness. We delivered the spelter in order to fulfil our contracts ? 
 
 51 Mr. LISKLATEB. In fact, you enabled Colo to deliver the spelter? 
 
 " Witness. The understanding was that Cole was to have 15 per ton 
 when we got back the warrants. 
 
 " Mr. LINKLATBB. Was not your object in acting as you did so that 
 the purchasers might not know that the warrants were fictitious ? 
 
 " Witness. Our object was to get back the warrants to complete our 
 contract. 
 
 ' Mr. LINKLATEB. I am rery sorry to tell you, Mr. Chapman, that 
 your answer is neither candid nor straightforward. I ask you again, in 
 the presence of the Court, was not your object, in getting back those 
 warrants, to conceal from the purchasers their fictitious character? 
 
 " Witness. My answer is, that we were bound to fulfil the contract into 
 which we entered, and to do so we must get back the warrants. 
 
 " Mr. LI> T KLATEE. I say again that that is no answer, and I now put 
 the question for the third time Was not your object, in the mode you took 
 of carrying out that transaction, to conceal from the purchaser the know- 
 ledge that those warrants were fictitious ? 
 
 " Witness. I decline to answer that question. We wished to fulfil the 
 contract, and I have stated so. 
 
 " Mr. LINKLATEB. If you decline to answer the question, then I am 
 quite satisfied." 
 
 Upon collating this with our report, it will be seen that there is a vari- 
 ance. According to our contemporaries' report, Mr. Chapman stated at the 
 time of the issuing of the warrants he was not aware of their fictitious cha- 
 racter.The fact, then, would appear to be reduced to this that, having un- 
 knowingly issued fictitious warrants, and having subsequently become aware 
 of the character of those documents, Mr. Chapman appears, from his own 
 evidence, to have taken no steps to inform the parties who held them 
 of their real character that he suffered them to hold for money which they 
 had paid to Overend and Gurney securities which they believed to be sub- 
 stantial, but which Overend and Gurney knew to be worthless. 
 
 Our invitation to Mr. Chapman was to deny explicitly that " ho ever 
 did issue to parties for a money consideration warrants which he knew 
 to bo fictitious;" or, secondly, "that he ever did, after such knowledge 
 obtained, guller them to remain out as securities for money which they 
 had received." The first denial has been given, and wo withdraw any 
 imputation that might have existed in its absence ; the second has not 
 been given, and that question remains precisely as it was. We hope 
 to receive yet another communication from Mr. Chapman, wherein he will
 
 714 APPENDIX. 
 
 successfully show that immediately ho discovered the character of these 
 securities, he revealed the fact to the holders of them. 
 
 Letter referred to in the preceding leader : 
 
 To the Editor of the Times. 
 
 Sir, It is not difficult to explain what has appeared to you inconsistent 
 between my letters and my evidence. It arises chiefly from misquotations 
 by you of the latter. In your extract you make me to say, in answer to 
 Mr. Linklater's question, " Did you not know, at the time you delivered 
 those warrants, that but for the assistance of Cole you would not have 
 sufficient spelter to meet them ?" " Most certainly. But we knew nothing 
 at all about it until after the discovery of the fraud." Whereas my 
 answer was directly to the contrary viz., " Most certainly not ; we knew 
 nothing at all about it till after the discovery of the fraud," as appears by 
 the short-hand writers' notes, and signed depositions. 
 
 Again, the transaction referred to in the first part of your extract had 
 no connection whatever with the one mentioned in the latter part, though 
 you connect them. 
 
 The former relates to some warrants for copper, endorsed by Gregson 
 and Co., which formed the subject of my interview with Gordon on the 
 17th of October. These warrants have never been out of our hands, ex- 
 cept for production in courts of law. 
 
 The latter refers to the 400 tons of spelter which we sold, and received 
 the money for at the time we delivered the warrants for it viz., on the 
 5th and llth of October before we had discovered the fraud, which was 
 on the 13th of October. These warrants we required to have returned to 
 us after the purchaser had received the spelter for them, in order that we 
 might be satisfied that our contract had been fulfilled, and to prevent the 
 possibility of their ever being reissued, and hence they remain with us to 
 this day. I remain, sir, your obedient servant, 
 
 Dec. 20. P. B. CHAPMAN. 
 
 P.S. You have also again misquoted the amount of bills discounted 
 for Davidson and Gordon as " 70,000," instead of " 7000" only. 
 
 To the Editor of the Times. 
 
 Sir, I hate controversy at all times, and most certainly in my present 
 position I have no desire to enter upon one in your columns, but the fre- 
 quent references therein of lats to my name, compel me to request of you 
 in common fairness, to announce that my silence must not be misconstrued 
 into inability to answer and to refute any statement from any quarter im- 
 pugning my evidence where correctly reported. 
 
 Permit me to add that many gross calumnies have previously, from 
 time to time, been circulated against me, while I had no opportunity of
 
 APPENDIX. 715 
 
 * 
 
 answering them. When (as I hope shortly to do) I can obtain that oppor- 
 tunity, I shall not be found to neglect it. I remain, sir, your very 
 obedient servant, 
 
 15, Broad Street, Dec. 20. J. W. COLB. 
 
 (From the Times, December 23, 1858.) 
 
 We publish in another column a fourth letter from Mr. D. B. Chap- 
 man, and we may now congratulate ourselves upon having induced this 
 gentleman to follow up his first volunteer explanation by others which are 
 more explicit, and in some respects more satisfactory. The first com- 
 mercial establishment in the City of London bas been compelled, by a very 
 general feeling, of which we were only the exponents, to appear at the bar 
 of public opinion, and ofier an explanation of transactions which appeared 
 to be of a most questionable character. We are bound to say that certain 
 inferences which seemed to arise naturally from the evidence, have been 
 disproved. Messrs. Overend and Gurney did not issue the fictitious war- 
 wants knowing them to be fictitious ; and after they had become aware of 
 the fraud committed upon them by Davidson and Gordon, they did not 
 discount for that firm 70,000, but only 7000. 
 
 On the other hand, Mr. Chapman's letter, which requires some study, 
 does not seem to us to aver that Messrs. Ovorend and Gurney took any 
 immediate steps to get back into their hands the fictitious warrants which 
 they had unwittingly sold. If we rightly read this letter, there existed 
 some interval of time, during which Messrs. Overend aud Gurney wqre 
 aware of the character of the warrants they had sold, yet made no attempt 
 to get them back from the purchasers until the purchasers themselves put 
 the warrants in action. How far this was right or wrong, we leave com- 
 mercial men to judge. It seems to us that if we had accidentally passed a 
 forged 10 note, and discovered the fact, we should not have waited until 
 the party came to us ; even if we desired to shield the forger, we should at 
 east feel bound to seek out the unconscious holder of the base instrument, 
 and ofier him back hi* money. But there may possibly be differences be- 
 tween a fictitious warrant and a fictitious bank-note, which we cannot 
 appreciate. The third point, however, is without any ambiguity. This 
 great commercial house, Laving discovered that a firm with which they 
 had relations had been committing frauds to an immense amount, did not 
 denounce those frauds and stop the action of that firm, but allowed it to 
 continue doing business, and sustained it for a season by a discount of 
 7000. Mr. Chapman, in bis volunteer letter of the 16th inst., explains 
 this matter thus " It was most painful to us not to divulge the fraud 
 under which wo were suffering, but its magnitude took it out of all ordi- 
 nary coarse of proceeding, and compelled us to have consideration for our 
 own position with the subject." When wo took exception to what we
 
 7 1 6 APPENDIX. 
 
 bought the bad morality of this excuse, Mr. Chapman further explained 
 in his letter of the 18th inst., " I quite agree with you that the amount in- 
 volved does not affect the moral consideration, nor was it referred to by me 
 with any such object, but simply to confute the impression which was en- 
 deavoured to be conveyed to the public, that we had escaped nearly scathe- 
 leas." Again we leave it to the reader's judgment to say how far these two 
 passages are consistent. The facts of the concealment of the fraud, and of 
 the pain Messrs. Overend and Gurney felt while concealing it, are, however, 
 placed beyond all dispute. 
 
 This matter has now been so elaborately discussed that every man 
 whom it may interest has all that can be said upon it before him. We do 
 most unfeignedly regret that the occasion for the discussion ever arose, but 
 having, through much difficulty and some error, at kst evolved an ex- 
 planation, we think it will be generally admitted that it was not unneeded, 
 and that the discussion is calculated to produce a healthier atmosphere 
 where some ventilation was required. 
 
 To the Editor of the Times. 
 
 Sir, It is a satisfaction to me to find that you withdraw all imputation 
 with regard to the first point between us ; and as to the second, for which 
 you express a hope to receive a further communication from me, I beg to 
 state that it was not till some days after the discovery of the fraud that vre 
 were informed by Cole's clerk that the spelter for which we had sold and 
 delivered the warrants previously (believing them to be perfectly valid) had 
 not till then been applied for, but that the purchasers were requiring it. 
 He further stated that there were only about 80 tons on the wharf, but 
 that they could deliver the remaining 320. tons on our paying 15 per ton 
 for it. 
 
 Tin's we declined to do till the warrants were returned to us for the due 
 delivery of the spelter. We then paid the 15 a ton and recovered the 
 warrants, which remain with us still, and Overend, Grurney, and Co. were 
 thus the only sufferers by tlie transaction. I remain, sir, your obedient 
 servant, D. B. CHAPiiA^. 
 
 Dec. 22. 
 
 I shall be obliged by your inserting this in your next publication, as I 
 was prevented writing yesterday. 
 
 (From the Times, January 6, 1859.) 
 
 To-day it becomes our duty to report the judgment of Mr. Commis- 
 sioner Goulburn in the case of " Davidson and Gordon." This case has 
 now been decided ; the certificate has been refused upon grounds which 
 all who read the judgment must recognize as abundantly sufficient, and 
 protection has been granted upon considerations which are rather senti-
 
 APPENDIX. 717 
 
 mental than legal, but which, upon the whole, are, perhaps, not unreason- 
 ably indulged. The bankrupts were great sinners, but they had suffered 
 grievous punishment. They have undergone enough to servo tho purpose 
 of a great commercial example. They will scarcely bo able again to raise 
 370,000 upon fictitious warrants, and they may perhaps live and prosper 
 to illustrate by a different line of conduct the truth of that waning proverb 
 current among the grandfathers of the present generation of City men, 
 that " honesty is the best policy." 
 
 But it is not upon the fete of Cole, or Davidson, or Gordon, tliat tho 
 interest of commercial men was Gxed. It was the collateral issue that 
 arose during this inquiry which made it a cause cttbbre. That a firm 
 should commence with little capital and should break, should rise up again 
 upon the ruins of its former failure, and, after expanding into great 
 magnificence, should again collapse, is not so unusual an occurrence as to 
 excite great attention. Even frauds to vast amounts must sometimes 
 succeed, and a lucky pickpocket may now and again creep into the golden 
 sanctuary of commerce and come forth a millionaire. We defend ourselves 
 as we may against vulgar thieves, or we make an average of our losses 
 from such causes and set them off against our profits. But here, to the 
 surprise of the whole commercial world, a suspicion arose against the 
 commercial honour of the very first monetary house in London. It ought 
 to have been impossible ; it was so improbable that people could not be 
 brought to read the evidence ; the imputation was absurd. So we also 
 thought until the facts became too patent. But, at last, through all the 
 mystery through all the industrious complications of facts and dates and 
 sums and names it was but too evident that there really was something 
 wrong. It was a hard thing to believe. You may easily come to think of 
 a man in the same rank of society with yourself that he has done some- 
 thing in bad taste or in bad morality, but you do not easily admit the idea 
 that he has done anything which a judge could characterize as a criminal 
 act. But, the facts once made plain, the duty becomes obvious. There 
 are some rare occasions when a voice which knows neither fear nor favour 
 is required to give sound to a million unaltered thoughts. 
 
 We have had to defend ourselves before the public against charges of 
 undue severity brought against us by Mr. Chapman. The office of public 
 prosecutor against an individual is always most unpleasant, and any 
 suggestion of having made a voluntary step beyond the bounds of duty, 
 and of having exercised unreasonable severity, is an imputation very pain- 
 ful to undergo. We beg attention, therefore, to Mr. Commissioner 
 Goulburn's judgment in this day's paper. All that we have ever said is as 
 milk and honey compared to that which the judge, speaking with the 
 responsibilities of his station strong upon him, has enounced from the 
 judgment-seat. The press has chastized with whips, the bench has
 
 718 APPENDIX. 
 
 scourged with scorpions. Mr. Goulburn treads the ground with a firmer 
 step than -we could, for he has the advantage of having heard all the 
 evidence and read all the documents, and he is in possession of minut 6 
 details and of recollections of the manner of witnesses, which could not be 
 portrayed in a report. His judgment upon the bankrupts very judiciously 
 tempers justice with mercy ; his observations on the conduct of Mr. 
 Chapman will commend themselves to the common sense of every one who 
 has read the evidence. 
 
 CoiTET OF BANKETTPTCY, TtasingTiall Street, January 5, 1859. 
 
 (Before Mr. Commissioner GrOTJLBUBN.) 
 
 IN EE DAYIDSON AHT> GOBDOK. 
 
 To-day judgment was given in this important case on the question of 
 certificate. 
 
 His HONOUR said I am now to give the judgment of the Court 
 upon the question which the bankrupts have brought before it namely, 
 then* right to a certificate of conformity in bankruptcy. This case has 
 occupied a very considerable portion of the time of the Court, and a vast 
 body of evidence has been taken on it ; but long as it has occupied, and 
 great as has been the cost, I do not think either time or money has been 
 misspent. The case is of great importance, not only to the debtors, David- 
 son and Q-ordon, but also, as it seems to me, to the trading community at 
 large ; indeed, I have not yet, in the course of my experience, adjudicated 
 in any case of greater importance. I must state in the outset, before going 
 into the evidence, that this case has completely satisfied my mind if ever 
 I had any doubt upon the subject that these public inquiries result in a 
 great benefit to the community. They are of importance not only to the 
 debtor, because if a debtor has conducted himself properly, the public 
 investigation of his conduct induces a favourable feeling towards him, and 
 he leaves the court without any imputation ; but it is of equal importance to 
 the creditors, and it is a mistake to suppose that these investigations concern 
 only the bankrupt. This case shows that public inquiries of this descrip- 
 tion concern others very much, and that it is quite right and proper that 
 those persons who have had dealings with the bankrupt should have their 
 conduct submitted to searching investigations quite as much as that of the 
 bankrupts. Formerly long after I became acquainted with the adminis- 
 tration of the bankrupt law, which now covers a period of nearly forty 
 years the mode of proceeding with respect to certificates was quite dif- 
 ferent. A man had then to seek his way to a certificate by creeks and 
 corners by getting his creditors, upon any motive, to sign his certificate 
 in sufficient numbers to obtain it. The consequence was, that the conduct 
 of a bankrupt was never fully and truly investigated ; it was left to be dis- 
 cussed in the precincts of the Guildhall, or in the obscure holes and corners
 
 APPENDH. 719 
 
 of coffee-houses adjoining thereto. In those holes aud corners only could 
 the conduct of a failing trader be investigated, and the only mode of obtain, 
 ing a certificate at the time of which I am speaking was to seek out the 
 creditors individually. I think that everybody must admit that the altera- 
 tion that was made about twenty years ago, bringing all proceedings under 
 bankruptcy into open court, has been most advantageous. I am aware 
 that this publicity is by no means popular ; indeed, I think all the very 
 many schemes of reforming the bankruptcy law have this object in view 
 to get back, if possible, to the system of private arrangement. Everybody 
 will, doubtless, see that a debtor who has acted wrongfully desires to shun 
 publicity in this court, where the misdeeds of individuals are, tlirough the 
 medium of the press, proclaimed far and wide ; but I do not think the 
 objection to publicity is confined to debtors. The real objectors are the 
 creditors creditors who have made large bad debts, and who are extremely 
 loth to acquaint the public with the fact, and creditors who have in the con- 
 traction of their debts as is sometimes the case even with those who 
 stand highest done something which will not quite bear the light, or in 
 whose conduct there is some dark passage which they would rather have 
 concealed. To such persons it is extremely troublesome to have to come 
 forward, and in tlie witness-box expose the whole of such conduct. These 
 are the persons who wish to shirk publicity ; these, those who would 
 exclaim, " Why not arrange the matter hi private, where no person is 
 present, and where there are no eyes upon us but those of the persons 
 intrested in the matter?" It is, therefore, I repeat, a matter of much 
 importance that not only the conduct of bankrupts, but the conduct of 
 creditors also, should be investigated and probed to the bottom. In the 
 course of this inquiry we have had a merchant ranking among the first in 
 position and importance in the city of London brought before the Court. 
 This gentleman has been treated fairly the same as any one else but we 
 have forced him to tell things which, as a great man, he would, I have no 
 doubt, rather not have exposed before the public. I dare say that gentle- 
 men in such a position as Mr. Chapman would say, " The sooner this pub- 
 licity is done with, the better for all parties," but I must be permitted, 
 before closing a very long career, and a very long acquaintance with the 
 admiiiiet ration of the bankrupt law, to express my earnest hope that by the 
 changes that are about to be made, the old system will not be revived, and 
 my belief that the present mode of publicity is most beneficial, both to 
 creditors, debtors, and the public generally. Having paid a high com- 
 .t to Mr. Hart, for the diligent and faithful manner in which he had 
 discharged his duties as acting for Mr. Nicholson, the official assignee, and 
 reporting upon cases that came before the Court, and expressed regret at 
 his retirement, in order to take upon himself new duties, his Honour pro- 
 ceeded : The report upon the case now under consideration is extremely
 
 720 APPENDIX. 
 
 well compiled, and gives an account of siich facts as are necessary for the 
 guidance of the Court. The bankrupts, it seems, are both young men, 
 extremely well connected, and persons who would feel with acuteness the 
 punishment that they have endured two years and ten months' imprison- 
 ment. That they have undergone most intense punishment, no one can 
 doubt; but this case may, I think, be looked upon in another point of 
 view we may consider what the bankrupts would have suffered if the law 
 had remained as it stood twenty years ago. The act of concealment of 
 property alone would have subjected them to severe punishment, even if it 
 had not placed their lives in jeopardy. I think they have no cause to 
 complain beyond what they must feel, that gentlemen in such a position 
 should so have subjected themselves to punishment. It seems that the 
 bankrupts had been in trade, originally, under the firm of " Sargant, Gordon, 
 and Co. ;" that they failed, and paid a very inconsiderable composition not 
 above 2s. 6d. in the pound to some creditors, and more to others, which I 
 call a disreputable arrangement, because every arrangement is disreputable 
 where the debtor does not pay alike to all. Having so failed in 1847 I 
 think in the year 1848 we find them again in business, and engaged in 
 transactions of a magnitude that is really astonishing ; indeed, it can 
 hardly be believed that the transactions could have been so extensive. The 
 bankrupts embarked in business without any real capital, 5000 being the 
 outside of the amount they had, and how they obtained this does not 
 appear. These gentlemen, just fresh from failure, rush into business, and 
 we find them engaged in transactions to the amount of 100,000, 200,000, 
 and 300,000 per year. One would naturally ask how it was possible that 
 persons emerging from failure could obtain the necessary credit ; one could 
 not imagine how persons could have been found to trust them. The result 
 in this case shows the evil effect of that mischievous system of trading 
 without any capital to fall back upon. Here are men, with a capital of 
 5000, rushing into speculations amounting, in the course of one year and 
 a-half, to no less than a million and a-half of money. What are the exact 
 figures? 
 
 Mr. HART. In 1849, 82,000; in 1850, 270,000 ; in 1851, 500,000 ; 
 in 1852, 598,000 ; and one-half of the year 1853, 492,000. 
 
 His HONOFB proceeded : That is at the rate of 1,000,000 a-year for 
 the last year. The result of this overtrading is not peculiar to this case ; 
 it accounts for nine-tenths of the misery and ruin which many persons have 
 inflicted. But I must now advert to the case of Mr. Cole, who is so very 
 much mixed up with these men that it is impossible to separate their cases, 
 and Mr. Cole, singularly enough, was just in the bankrupts' position. Mr. 
 Cole was a member of the firm of Johnson, Cole, and Co., and he failed 
 about the same time as Sargant, Gordon, and Co. Cole, like them, failed 
 disreputably ; for when Mr. Linklater asked him what he paid his creditors,
 
 APPENDIX. 721 
 
 be said, "A small dividend." Mr. Linklator says, "Did you give them 
 anything ?" " Why, yes," says Mr. Cole, " I gave them something." Mr. 
 Cole, we find, soon begins to deal in hundreds of thousands, and, according 
 to his own statement, made 120,000 in a few months ; indeed, so good 
 was his position, that he was enabled to make Mr. Chapman and his part- 
 ners a present of 3000, by getting them, for 15 per ton, spelter for which 
 they would have had to pay 20 per on. This is a very curious state of 
 facts. Cole had no capital, not a farthing ; he was an adventurer. What 
 must this sort of trading be likened to ? Why, simply staking counters 
 against ready money. But what astonishes me is, not that they should get 
 credit from other people, but that they should bo assisted by such persons 
 as Orel-end and Gurney. Mr. Chapman says Messrs. Ovcrend and Gurney 
 were creditors of the late firm of Sargant, Gordon, and Co. " Well, did 
 you get anything ?" was the question. " Xo," in effect, said Mr. Chapman 
 in his nonchalant manner, " We scratched it out 5 we got rid of it, and 
 then \vo trusted them again, and not only Sargant, Gordon, and Co., but 
 Cole also." That seems to be a very extraordinary state of things. But it 
 is necessary for persons in the position of Cole, and Davidson, and Gordon, 
 having no capital of their own, to obtain money, and this is how they do 
 obtain it by discounting their bills, and by depositing as security certain 
 warrants. These warrants, of which we have had so much to say, repre- 
 sented on the face of them a certain quantity of spelter, copper, or tin, as 
 the case might be, and appeared to give to the person to whom they \\ eiv 
 endorsed the right of going to the wharf indicated in the warrants, and 
 there obtaining the specified amount of metals ; and so little doubt existed 
 in the mind of the commercial world as to the validity of these documents, 
 that they everywhere passed as good securities ; they changed hands the 
 same as bank-notes, were treated as security, and Overend and Gurney took 
 from Davidson and Gordon no less than 220,000 of those warrants. 
 Mr. LHTKLATBB. 370,000. 
 
 The COMMISSIONER. I did not wish to overstate the figures. His 
 Honour then gave an account of the form of the warrants alluded to in this 
 case, and proceeded : Now, would it be credited, tliat without inquiry at 
 the wharf, the warrants should have been treated by merchants in the city 
 of London as a valid security ? The first inquiry is, " Are these warrants 
 any security ; are they quite safe ? " Why, if Cole's plan of raising money 
 upon them bo correct, they are wortliless, because Cole informs us he took 
 a legal opinion upon the question, and he was advised that he had a right 
 to withdraw the goods from the wharf, although the warrants were endorsed 
 by the most respectable men in the City. But the question is, what will 
 you do with the wharfinger? for it is a very serious matter to the v- 
 inger he may be responsible. However, the wharfinger took a legal 
 opinion, and ho was told that Cole had been rightly advised, and that he 
 
 A A A
 
 722 APPENDIX. 
 
 (the wharfinger) was to allow Cole only to remove the property. It is, 
 indeed, most astonishing that such a proceeding should be permitted year 
 after year for three or four years, and that the merchants of the city of 
 London, having the means of inquiry at command, did not ascertain the 
 fact. To resume the story : This person Cole, and Davidson, and Gor- 
 don, were throughout acting in concert ; nobody who has read these papers 
 with the attention I have can doubt it ; the bankrupts went on as long as 
 they possibly could, and at last, when difficulties came upon them, what 
 assets had" they ? They go forward until their bankers will lend them no 
 more money, and then they resolve to depart the country that is, they are 
 fearful of an " extent " from the Crown, 7000 or 2000 being owing by 
 them. Leaving England with bank-notes in their possession, they wan- 
 der about the Continent, until at length, on their return to tin's country, 
 they are arrested, and indicted upon several charges and convicted. I 
 should mention that I do not consider that the bankrupts were discharged 
 upon the indictment for surrender in such a manner as to justify me in 
 taking that part of the case out of my consideration ; it was an acquittal 
 upon a formal objection, and not tipon the merits. Upon the point of non- 
 surrender alone I am compelled to refuse the bankrupts any certificates. I 
 am of opinion, also, that the bankrupts have improperly concealed their 
 property. The next objection to the granting of certificates is the transac- 
 tion with Freeman and the Copper Company ; and it appears to me that 
 the bankrupts confessed to Mr. Vaughan that their conduct had been most 
 wicked and improper ; that while they had reported to him sales as made 
 to others, they had, in fact, used the goods alleged to be sold for the pur- 
 poses of the distillery. Mr. Yaughan, however, said that he " felt kindly 
 towards them," and took securities from them for the deficiency, the result 
 being that Mr. Yaughan lost 9000. What took place subsequently to the 
 transactions resulting in this loss ? On the 16th of February, 1854, a very 
 short time before leaving this country, the bankrupts go and ask Mr. 
 Yaughan to lend them 1500. He agrees to do so, and what do they give 
 him ? Why, one of these worthless pieces of paper a warrant for 100 
 tons of spelter, which was non-existent. This is how the bankrupts treated 
 Mr. Yaughan. I now travel to that part of the case which excites the 
 most interest in the public mind the dealing with the fictitious warrants, 
 and the position of Mr. Chapman. Isow, I could wish very much to be 
 spared from expressing any opinion upon Mr. Chapman's conduct. Mr. 
 Chapman is before the Court as a witness only, and I would wish to guard 
 my own mind from entertaining any undue prejudice against him. It 
 must be remembered that Mr. Chapman is under great disadvantages, and 
 that he had scarcely the fair play to which a man who is sought to be 
 inculpated is entitled. He was so scourged by Mr. Linklater and Mr. Lewis. 
 Mr. LINKLATEE was sure the Court did not mean to say that Mr.
 
 A.PPENDH. 723 
 
 Chapman had been improperly treated upon examination ; he (Sir. Link- 
 Inter) had expressed a wish that Mr. Chapman's counsel should be heard. 
 
 Ilis HOXOTTB. I do not say improperly scourged ; but I think no one 
 would say that Mr. Chapman, between Mr. Lewis and yourself, was 
 favourably examined. (A laugh.) I think you did your duty ; no one 
 could have done it better ; but I never heard a more searching or trouble- 
 some inquiry in my life. I only wish to say that Mr. Chapman had not an 
 opportunity of cross-examining witnesses, and that his counsel could not be 
 allowed to address the Court in his favour. But I cannot shrink from ex- 
 amining Mr. Chapman's conduct in this way : Mr. Chapman has now 
 made a statement against the bankrupt Gordon in particular, which, if true, 
 it is admitted would put Gordon out of Court. Mr. Lewis says that, if 
 Mr. Chapman is correct in his statement that Gordon said to him on the 17th 
 of October, 1853, " The warrants may be all right on the face of them, but 
 the fact is that I have shipped the copper," he could not ask for a certificate. 
 Mr. Lewis says Mr. Chapman may have been mistaken as to the day. But 
 there could be no mistake as to what Gordon has told Mr. Chapman that 
 he had shipped the copper ; and ho could hardly be mistaken in what he 
 said subsequently that this came upon him so by surprise that he was 
 shocked, and told Mr. Bois, his clerk, that he would never breathe the air 
 with that man again ; he called him, he thought, a thief, and said he had 
 robbed him. It is a very remarkable fact that Mr. Chapman should, know- 
 ing the feet of this interview, have concealed it until he came here. Mr. 
 Chapman lias been examined eight times without saying one word of this 
 important evidence. Why does he state it now ? He states at first that 
 he was never asked the question, and next that he was provoked to it. If 
 this charge against the bankrupts had rested upon Mr. Chapman's own 
 evidence, I should not, I think, have acted upon it at all. But I can only 
 treat Mr. Chapman as any other witness. It is said, how can Mr. Chap- 
 man's story be credited, when it is clear that Gordon could not, on the 
 17th of October, 1853, have made the statement alleged ? I have no doubt 
 that Mr. Chapman so confused and mixed up the remarks that he made a 
 mistake. But the question is, whether that allusion did not convey enough 
 to indicate that Mr. Gordon had a guilty knowledge throughout ; that is 
 the point here, and my opinion is that ho had such guilty knowledge that 
 he did, at that interview, leave the impression upon the mind of Mr. Chap- 
 man that the warrants generally had nothing to represent them. Mr. Chap- 
 man is partly confirmed by Mr. Bois, his clerk ; and, although I know 
 clerks will go a great way to support their employers, I find it impossible 
 to moke any imputation against Mr. Bois a most respectable man in 
 this matter. It is said by the bankrupts that they had no guilty knowledge 
 until the 13th of October, 1853. Can any one believe, who has been 
 through the facia of this cose tho close connection with Cole, the vat
 
 724 
 
 amount ot money and other transactions interchanged between the bank- 
 rupts and Cole that Gordon was receiving these warrants time after time 
 60,000 or 70,000 of warrants were lent to him, and he the intimate 
 friend' of Cole without knowing the false character of these warrants ? 
 Let its see what the evidence is. The first witness is Mr. Edwards. His 
 testimony is that he had had transactions with the bankrupts, and that 
 they brought him a warrant and asked him to lend so much money upon 
 it for Cole. The amount is lent. There was a stop on that warrant by 
 Leo Schuster and Company, and Mr. Edwards could not get his goods. 
 It was not a light matter for Mr. Edwards, for we find he talks of taking 
 the bankrupts to the Mansion House. Gordon says, " Give me a little 
 time." Mr. Edwards does, and they arrange to set that matter right. 
 Gordon had thus, in July, 1851, his attention expressly called to the fact 
 that these warrants were not to be depended upon. This being so would 
 he not have said, " Mr. Cole, what is the meaning of this ? I hope the 
 warrants are all right." That circumstance confirms my view that Gor- 
 don must have known the character of the warrants. Again, there is the 
 case of Mr. Stovell, the gentleman who had lost 8000 by the warrants, and 
 who, on his examination, said, " The warrants have been my ruin, and I 
 am sick of the matter." The date of this transaction is most important. 
 Gordon was, after the 13th of October, 1853, found to be passing warrants 
 to Mr. Yaughan after the date when it was admitted he knew their 
 character. I am, upon the whole, compelled to say that Gordon had a 
 guilty knowledge. I arrive at this conclusion without Mr. Chapman's 
 evidence. His Honour then proceeded to refer to a letter written by Mr. 
 Gordon to Mr. Chapman, complaining that he had disposed of, or was 
 about to dispose of, certain warrants without his consent, and continued: 
 Mr. Chapman must, on the 17th of October, 1853, have had a suspicion 
 that all was not right. If the warrants could be passed by endorsement, 
 where was the necessity for Mr. Chapman to obtain Mr. Gordon's assent 
 before disposing of them, unless there had been some promise that he 
 would not part with them without giving notice? Mr. Chapman appears 
 to have, subsequently to the 13th of October, taken advantage of Cole to get 
 spelter at 15 a ton, in order that the purchaser from him (Chapman) 
 might not know of the fraud ; this is one of the dirtiest parts of the trans- 
 actions. Mr. Cole had been the tool of Mr. Chapman, and Mr. Chapman 
 says to him, " You imist let me have at 15 per ton that which would cost 
 elsewhere 25 per ton." Cole, upon being asked whether he was in a 
 position to make Mr. Chapman a present of 4000, replied that he was, and 
 that he did make him the present. I think this is a very unprecedented 
 transaction ; it appears to me to be what the French would call petitesse, 
 or what we should call petty larceny. I think it was a very shabby 
 proceeding, to go to Cole and get out of this wretched man, a mere
 
 APPENDIX. 725 
 
 creature under his thumb, 4000. I cannot understand how it is con- 
 ceded throughout that Chapman could have committed himself to conceal 
 this matter so long. He has been accused erroneously of issuing these 
 warrants after he knew they were worthless. He stands acquitted of that 
 charge, but it does not seem to have occurred to him that ho had been an 
 accessory. A party who, knowing that a felony has been committed, lies by 
 and conceals it, does his best to keep it from the public view and to allow the 
 culprit to escape, which Mr. Chapman clearly did that man is an accessory 
 after the fact, and may be indicted as such. He might have arrested Cole at 
 the instant, but the point was that he might get out of it in the best way ho 
 could, and keep it secret. What Gordon says, and in which Mr. Chapman 
 does not contradict him, is this : On the 13th of October Mr. Chapman 
 said to him, "Keep this matter between ourselves; do not let it go forth." 
 "Why so? In order that he may get out of it. Mr. Chapman did reduce 
 the damage, but at what price ? By doing that which lie ought not for 
 one moment to have thought of doing by doing that which has placed a 
 blot on his escutcheon which no time can remove. Are we to have one of 
 the first merchants in the city of London a man first in reputation 
 keeping a matter of this sort to himself? "The magnitude of the sum," 
 says Mr. Chapman, " and regard for our position, compelled us to thus 
 act," which means regard for own pockets. Mr. Chapman has, therefore, 
 been an accessory after the fact to a most gross and wicked fraud. Under 
 these circumstances, how can I say that these bankrupts arc entitled to 
 what they ask certificates of conformity ? I was very much surprised 
 when I heard they were asking for their certificates. How can it be said 
 that they have conformed to the law of bankruptcy ? Formerly a bank- 
 rupt who had acted in the manner these persons have would have sought 
 to hide his diminished head instead of applying for a certificate. The 
 bankrupts' certificates will therefore be refused, but, upon the authority 
 of the case of "Holthouse," and having regard to the intense punishment 
 the bankrupts have endured, I shall recommend the assignees to consent 
 to their having protection. 
 
 M r. LINKLATEB said the assignees did not desire to increase the suffer- 
 ings of the bankrupts by a refusal of protection ; on the contrary, they 
 wished them to be protected from arrest. 
 
 The COMMISSIONER then allowed protection. His Honour observed, 
 in conclusion, that the assignees and those who represented them had dono 
 their duty most fully and ably, and that the Court was indebted to them 
 for the manner in which the matter had been brought forward. It ap- 
 peared to him that the more these cases were investigated, the better it 
 nould bo for the commercial community and the public generally. 
 
 Certificates refused accordingly, with protection. 
 
 Mr. LEWIS wished to state, in reference to some observations which ho
 
 726 APPENDIX. 
 
 had made on a previous day in respect to Mr. Beard, that Mr. Beard de- 
 nied that he went away from his creditors, although in the year 1857 he 
 made arrangements with his creators; and he also denies that in ob- 
 taining the assistance of the English and foreign ministers he stated that 
 he was acting for the creditors generally, but that he stated he was 
 endeavouring to recover his own debt. 
 
 The bankrupts, it was intimated, intend to appeal from the judgment 
 of this Court. 
 
 (From the Times, January 7, 1859.) 
 
 The judgment of Mr. Commissioner Goulburn in the case of Davidson 
 and Gordon has during the last twenty-four hours been, no doubt, very 
 carefully considered by the English public. " Mr. Chapman," said the 
 Commissioner in passing judgment, " has been an accessory after the fact 
 to a most gross and wicked fraud." To-day we print a letter received 
 from the great house of Overend, Gurney, and Co., by which we are in- 
 formed that the partners are prepared to endorse the conduct of their late 
 partner in every particular. Their statement is, "We believe not a single 
 step was taken throughout the affair without the concurrence of the whole 
 firm." What can we say but that we regret to hear it ? All particulars 
 necessary for the formation of a correct judgment upon the whole case are 
 now before the public, and we can have no wish to interfere further in the 
 matter. Messrs. Overend and Gurney are, as it appears, dissatisfied with 
 the manner in which the existing bankruptcy law is worked. They com- 
 plain that facilities of defence were denied to Mr. Chapman, otherwise he 
 could have explained in a satisfactory way every point which was urged 
 against him. Now, is this so ? Surely the machinery of the Bankruptcy 
 Court is not so defective but that the presiding judge can arrive at 
 correct conclusions. Granted that the examination of Mr. Chapman, as 
 conducted by Messrs. Linklater and Lewis, was a severe one, but the 
 Commissioner was fully aware of the technical disadvantages to which 
 Mr. Chapman was exposed, and, no doubt, in delivering his judgment 
 would take them fairly into account. It is rather too heavy a tax upon 
 the public credulity to ask us to believe that explanations which were not 
 forthcoming at the proper time might be now urged in a convincing 
 manner. But, even now, are they given? All we are told is, that his 
 former partners know that Mr. Chapman might or could offer them if he 
 chose, and meanwhile they desire to share his responsibilities. On the one 
 side we have this assertion of Messrs. Overend and Gurney, upon their 
 own showing particles factl, on the other the judgment of the Commis- 
 sioner, based upon evidence taken in open court. We cannot but think 
 that one sentence of the Commissioner's judgment contains an answer to
 
 APPENDIX. 7 '2 7 
 
 the only point in the letter of this great monetary firm : " In the course 
 of the inquiry we hare had a merchant ranking among the first in the city 
 of London brought before the Court. This gentleman has been treated 
 fairly the same as any one else but we hare forced him to tell things 
 which, as a great man, he would, I have no doubt, rather not hare exposed 
 before the public." 
 
 RE DAVIDSON AND GORDON. 
 To the Editor of the Times. 
 
 Sir, As our late partner's (Mr. Chapman's) name nas again been 
 brought very injuriously before the public in connection with tho above, 
 we feel it but an act of justice to him to state that we believe not a single 
 step was taken throughout the afTair without the concurrence of the 
 whole firm. 
 
 Had the usual facilities of defence which are allowed to the commonest 
 defendant been permitted to him, he would have had no difficulty in re- 
 pl; ing to every point which haa been alleged against him. 
 We are, sir, your obedient servants, 
 
 OVEBEND, GUBNET, AND Co. 
 
 G5, Lombard Street, January 5. 
 
 To the Editor of the Times. 
 
 Sir, Although entirely separated from Davidson and Gordon since 
 1847, yet, as a member of the late firm of Sargant, Gordon, and Co., may 
 I beg, through your influential medium, to correct an important error, 
 with reference to the settlement with their creditors, into which the 
 learned Commissioner has been led ? Not one of their creditors had the 
 slightest preference over the others, which can easily bo confirmed by the 
 highly-respectable professional firms in the City to whom the creditors had 
 entrusted the affairs. So far from any preference being shown, one or two 
 kindly waited some time for their dividends, which were paid by us jointly 
 out of subsequent earnings in the two following years, to the eitent of 
 fully 2000 beyond the assets of the estate, owing to the reduced dividends 
 paid by several of the leading East India firms indebted to ours, as well as 
 tho depreciation in produce, which causes jointly reduced the estimated 
 outturn below the 2*. 6d. dividend agreed to, and eventually paid by the 
 addition of the 2000 above. I remain, sir, your obedient servant, 
 
 W. T. SABGANT. 
 131, Fenchurch Street, January G. 
 
 THE END. 
 
 Thorn*! Harrild. Printer, Stliibur; Bqtur* Vleet Street. London.

 
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