London (England) -- Social life and customs -- 19th century
“The Royal British Bank.—Stopped payment in 1856. The failure was
caused by making advances to directors and others on improper and
insufficient securities. Capital, £200,000; deposits, £540,000; on
which 15s. in the pound has been returned; deficiency, 5s. in the
pound; £135,000; total, £335,000.
“The Tipperary Bank.—Failure caused by the frauds of Sadleir.
Accounts were wilfully falsified. Capital, £500,000; deposits,
£700,000; total, £1,200,000. The whole has been lost.
“The London and Eastern Bank.—In this case the notorious Colonel
Waugh appropriated to himself an amount equal to the whole paid-up
capital of the bank, and has since absconded and set his creditors at
defiance. The loss exceeds £250,000.
“The Crystal Palace Company.—The frauds of Robson, committed by
tampering with the transfer-books, entailed a loss of £100,000.
“The Great Northern Railway Company.—Redpath’s frauds, committed in a
similar manner to Robson’s. The auditors here were greatly at fault,
as I understand that dividends were paid on a larger amount of stock
than had been issued. Loss, £250,000.
“The Union Bank of London.—The frauds just discovered, committed by
the head cashier, William George Pullinger, by means of a fictitious
pass-book, representing the account between the Union Bank and the
Bank of England. The frauds are said to have extended over a period
of five years, and with a proper check in the audit, ought to have
been detected in the first half-year.”
The men who did these things—the Redpaths, and Sadleirs, and Colonel
Waughs—were men known and respected, be it remembered, in London life.
Public-domain text, read in full here on John Shaqi.
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