Punch (31.1856)

Vol. XXXI.]

INTRODUCTION.

[July to December, 1856.

Company, against these unhappy persons. Some declared
themselves insolvent, others suddenly disappeared, and fled to
the United States with such of their property as they could
hastily secure. Mb. James Sadleib absconded, under cir-
cumstances which gave rise to much comment.

It is believed that the forgeries which Mb.. John Sadleib
had committed were fraudulent deposits of deeds in his cus-
tody, he being agent for some of the largest estates in Ireland.

The author of all this misery was a person of very good
appearance and address, but by no means showy. His dress
was habitually neat, but not smart, nor did he affect any style
of manners ; he appeared a clear-headed active man of
business, without pretensions to high-breeding, but not
deficient in proper courtesy. His habits were very moderate,
and his residence was rather well than handsomely furnished.
In no respect had he the pretentious bearing of an habitual
and dashing swindler. It is said that at one time he was
actually possessed of £200,000.

The failure of the Royal British Bank followed consequent
upon the alarm created in the public mind by the Sadleir
Frauds and the revelations conne5ted with the Tipperary
Bank. It is impossible to describe the general confusion that
arose among the shareholders and depositors, when the real
state of the bank affairs became known. The share capital
was put at £300,000, of which £150,000 was said to be " paid
up." The debts due to depositors were upwards of £500,000 ;
The assets consisted of bills discounted and other securities.
It soon became known that the greater part of these securities
were worthless ; that more than £100,000 had been advanced
under extraordinary circumstances, to a Welsh coal-mine,
which was not one-third of the value ; and that the directors,
manager, and auditors had been helping themselves to the
funds without scruple. Ms. Gwynne, a retired director, was
indebted £13,600; Me. John M'Geegoe, M.P., the founder
of the Bank, £7000; Me. Humphrey Brown, M.P., upwards
of £70,000; Me, Cameeon, the manager, about £30,000;
so that the loss by money taken by the directors exceeded
£120,000. The general aspect of affairs was, that when the
shareholders had paid up their calls, there might be about
eight or ten shillings in the pound for the creditors, with the
entire loss of the capital of the bank. This state of things
was bad enough ; but what ensued rendered the calamity still
more serious. The lawyers got hold of the debts, and sued
the individual shareholders right and left; sometimes a
hundred writs were issued for a single claim. To avoid this
ruinous procedure, an attempt was made to wind up the
Company under the Winding-up Act. This prooeeded to some

extent; an official manager was appointed, who got in a large
sum of money, and called upon the shareholders to pay up a
call of £75 per share. But another set )f creditors resolved
to have the affairs of the Company wound up by the Court of
Bankruptcy, and a fiat was accordingly issued, and assignees
appointed. This step was resisted, on the ground that the
Winding-up Act being in operation, the power of the Bank-
ruptcy Court was superseded. But it did not appear that
there was any express provision to that effect; and the official
assignee proceeded to enforce his call upon the unhappy share-
holders of £50 per share. Thus the unfortunate persons,
having already paid one-half of their undertaking, were now
called upon to pay £125 per share more. Many were abso-
lutely unable to meet the demand by the sacrifice of all they
possessed ; others could have only done so by robbing their
trade creditors. In consequence, some fled abroad, and left
their creditors to seize their property ; others carried off what
they could, and settled with their legitimate creditors at a
safe distance ; many went through the Insolvent and Bank-
rupt Courts. The two official gentlemen then commenced a
fight between themselves for the plunder. In short, such a
scene of waste, litigation, and misery ensued, as is painful to
contemplate.

The affairs of this unfortunate undertaking, therefore, be-
came more and more complicated as time went on, and came
to a climax in the following year, when, in consequence of the
decision of the Judge in Bankruptcy, upon the conduct of the
directors and officials, the Government took up the matter,
and ordered some of these persons to be criminally prosecuted.

The year was particularly prolific in fraudulent discoveries,
and William Robson, a clerk to the Crystal Palace Com-
pany, was found to have forged transfers of shares, and
committed other frauds on the Company and the public, to
the amount of £28,000. He was sentenced to twenty years'
transportation, but is at present one of Sir Joshua Jebb's
lambs with a " ticket of leave " (1863).

Another fraud connected with the transfer of stocK and
shares of the Great Northern Railway, was perpetrated by
Leopold Redpath, who passed in society as a gentleman of
great wealth, refined taste, and liberal charity. He succeeded
by a long continued system of fraud to rob the Company and
the public of, it was said, nearly £250,000. His property was
estimated at £30,000 at the time he was committed for trial.

To particularise our differences with the United States,
would occupy too much space, and they are so fully tres ted by
Mr. Punch in the present volume, that further refej -inee to
them is really unnecessary.