Chapter 12

_Q._ He found that an inconvenient one and he took these rooms in Shorter's Court, he and Mr. Johnstone?

_A._ Yes.

_Q._ Those were taken for Mr. Butt, were they not?

_A._ I believe so.

_Q._ I believe you went to the rooms as to the rooms of Mr. Butt?

_A._ I did.

_Q._ I believe you thought upon seeing Mr. Butt's room, that the situation was a very convenient one for yourself?

_A._ Yes.

_Q._ And therefore you suggested, did you not, that you should like a room in the same house?

_A._ I think I did.

_Q._ In consequence of this suggestion did not Mr. Butt give up to you the room he had taken for himself, and take another in the same house for himself?

_A._ Yes, he did.

_Q._ And the room being taken in this manner, you put up your name "Fearn, Stock Broker."

_A._ On the Monday.

_Q._ Did you do that at your own idea or was it suggested to you by any body?

_A._ It was the same transparent blind I had at my former office, which I removed and put in the window.

_Q._ Your name in gold letters?

_A._ In black letters.

_Q._ You took your furniture?

_A._ The rooms were furnished.

_Q._ I believe after thus finding your Customers liked the situation, you desired Mr. Johnstone to purchase the lease of the house for you.

_A._ Yes, I did.

_Q._ Was that before or after the 21st?

_A._ I think after.

_Lord Ellenborough._ Then that does not apply.

_Mr. Serjeant Best._ You had taken it before the 21st and got into possession on the 21st.

_A._ Yes.

_Q._ One of your reasons for taking it was that some of your customers were particularly pleased with it.

_A._ Yes.

_Q._ That was on the Thursday in the week before.

_A._ I believe it might be.

_Q._ You have told us you did not see Lord Cochrane on that morning, how many days previously to that had you seen him?

_A._ I think I saw him on the Saturday.

_Q._ You are not quite certain of that?

_A._ No, I am not.

_Q._ Does it appear whether he bought any thing on that day.

_Mr. Gurney._ It appears from the account that he bought 20,000 and sold 17,000.

_Mr. Serjeant Best._ You have told us that all those three persons, Mr. Cochrane Johnstone, Lord Cochrane, and Mr. Butt, were very large speculators; did they always speculate the same way, or on the contrary, when one bought did not the other very often sell?

_A._ It has been the case.

_Q._ Has not that happened often, several times?

_A._ Yes it has, several times.

_Re-examined by Mr. Gurney._

_Q._ On that day they all sold?

_A._ Yes they did.

_Q._ They all acted together on that day.

_A._ Yes they did.

_Q._ Where did Lord Cochrane reside on the 21st of February?

_A._ I do not know.

_Q._ How soon after did you know his residence in Green-Street?

_A._ Not at all until the printed paper of the Stock Exchange came out.

_Q._ Did you know that Lord Cochrane resided at the time in Green-Street?

_A._ Only by report.

_Q._ Not from Lord Cochrane?

_A._ No.

_A Juryman._ You say they did not sell any stock but what they had before purchased, do you mean such as they had bought and paid for, or only such as they had contracted for the purchase of, was it actually bought and transferred to them?

_Mr. Taddy._ That is the very thing I have taken the liberty of suggesting to your Lordship.

_Lord Ellenborough._ He has before said they had not sold any of which they had not become the proprietors before, so that he is predicating of them that they had purchased this, for they could not otherwise become proprietors.

_A Juryman._ Is it not a purchase for time altogether, are they not all time bargains both the omnium and the stock?

_A._ This is one of those questions I cannot answer.

_Lord Ellenborough._ Gentlemen, he objects to answering the questions as it may criminate him, but the offence charged may have an effect upon the funds, in which not only these individuals are concerned, but every person who has transactions in Stock, the persons belonging to the Court of Chancery, who have to purchase or sell, may be influenced by an improper elevation or depression of the funds, that does not affect the question as to the crime charged upon this record, you will consider Mr. Gurney whether you will persist in the questions, because this man demurs to the answering the questions, being a party in the transaction.

_Mr. Gurney._ You do decline answering that question?

_A._ Yes I do.

_Mr. Robert Hichens sworn._

_Examined by Mr. Gurney._

_Q._ I believe you are a Stock-Broker?

_A._ Yes I am.

_Q._ Have you for some years past known Mr. Cochrane Johnstone?

_A._ Yes.

_Q._ I believe you have not done business for him till the present year?

_A._ No.

_Q._ From the 8th of February to the 19th did you make various purchases for him.

_A._ Yes I did.

_Q._ At the leaving off of the business on Saturday what was the balance.

_A._ £250,000.

_Q._ That was all omnium.

_A._ Yes it was.

_Q._ Have you taken from your books a statement of the business you did?

_A._ I have memorandums that will enable me to answer any questions.

_Q._ Has Mr. Baily from your books taken an account of purchases and sales?

_A._ I furnished Mr. Baily with a copy of it.

_Mr. Gurney._ Then through Mr. Baily I will give all the particulars of it.

_Lord Ellenborough._ Whether purchased with money or no they take upon themselves the disposition of that fund, shewing that they had an interest in the rise and fall of the funds, and that they sold on the Monday and gained a profit.

_Mr. Gurney._ Yes my Lord. On Monday morning the 21st how soon did you see Mr. Cochrane Johnstone?

_A._ I think between ten and eleven I cannot say exactly.

_Q._ Where did you see him?

_A._ I think I met him as I was coming out of the Stock Exchange.

_Q._ How near ten or eleven?

_A._ I think it must have been about a quarter before eleven but I cannot say positively.

_Q._ Did you receive any directions from him as to what you were to do with respect to the omnium?

_A._ I received an order from him on the Saturday, to sell £50,000 at one per cent. profit, and that I had sold before I saw him.

_Q._ At what had you sold it?

_A._ At 29.

_Q._ Did he give you any further instructions what to do with the remainder?

_A._ He then ordered me to sell a certain quantity at an eighth per cent more.

_Q._ In short did you sell the whole of it that day by his directions?

_A._ I did.

_Q._ At what prices?

_A._ At 29, 29-1/8, 29-1/2, 30-3/4, and 30-7/8.

_Lord Ellenborough._ At those different prices did you dispose of the whole which Mr. Cochrane Johnstone held on that 21st.

_A._ Yes.

_Q._ At one or other of those prices.

_A._ Yes.

_Cross-examined by Mr. Topping._

_Q._ Can you tell me what was Mr. Cochrane Johnstone's balance on the 15th?

_A._ I think £465,000.

_Q._ On the 16th how much was that reduced?

_A._ On the 16th I sold £200,000.

_Q._ Reducing the balance of course to £265,000.?

_A._ Yes.

_Q._ Upon the 17th what did you sell?

_A._ On the 17th I bought £50,000. and sold £115,000. reducing the balance to £200,000.; on that Saturday I bought £50,000.

_Q._ And you had his directions upon that Saturday to sell at one per Cent.?

_A._ To sell £50,000. at one per Cent. profit.

_Q._ And you had done that before you saw Mr. Cochrane Johnstone at all?

_A._ Yes, I had.

_Mr. William Smallbone, sworn._

_Examined by Mr. Gurney._

_Q._ You are a Stock-broker, I believe?

_A._ Yes.

_Q._ Did you shortly before the 21st of February make any purchases for Mr. Cochrane Johnstone?

_A._ Yes.

_Q._ You had made two purchases only, I believe, the 12th and the 14th?

_A._ Yes, only two purchases of £20,000. each.

_Q._ When did you sell them out?

_A._ On the 21st of February.

_Q._ At what did you sell them out.

_A._ 28-1/8, 29-1/4, and 29-1/2.

_Q._ By whose order did you sell them out?

_A._ I sold Mr. Johnstone's by his order; I sold Mr. Butt's by his order.

_Q._ Was that order from Mr. Cochrane Johnstone received on the Monday, or before the Monday?

_A._ In part it was received on the Monday, but a part on the Saturday.

_Q._ You had also, I believe, made purchases in Omnium for Mr. Butt?

_A._ I had.

_Q._ To the amount of £40,000 I believe?

_A._ Yes.

_Q._ Was that £40,000 left as a balance on Saturday the 19th?

_A._ Yes.

_Q._ And all sold out on the Monday?

_A._ Yes, all sold on the 21st.

_Q._ Have you given Mr. Baily a statement from your books of that?

_A._ Yes.

_Q._ And of the prices at which it was sold?

_A._ Yes.

_Lord Ellenborough._ Now what is the result of all these accounts?

_Mr. Gurney._ I am going to call one person more, and then I will give your Lordship the totals.

_Q._ You had bought for Mr. Cochrane Johnstone, £40,000, and on that 21st you sold it all?

_A._ Yes.

_Q._ You had bought for Mr. Butt £40,000, and on the Monday you sold it all?

_A._ I sold it all on Monday.

_Lord Ellenborough._ If he sells all the sum is immaterial, if you prove that he sold all of the several amounts, it furnishes a constructive motive for what has passed.

_Cross-examined by Mr. Scarlett._

_Q._ When was it you had purchased the £40,000 for Mr. Cochrane Johnstone?

_A._ On the 12th and the 14th.

_Q._ Did Mr. Johnstone send you the order to purchase it?

_A._ Yes.

_Q._ Was it upon his own account?

_A._ No, it was upon his own account, the order was from him.

_Q._ But not upon his own account?

_A._ No, it was not.

_Q._ Was the whole £40,000 purchased at two different times?

_A._ Yes, it was.

_Q._ You stated to my learned Friend, that he gave you an order to sell a part of it on Saturday?

_A._ Yes, he gave me an order on Saturday.

_Q._ What was it?

_A._ To sell at a quarter profit if I had an opportunity.

_Q._ I take for granted that opportunity did not occur on the Saturday?

_A._ No, it did not.

_Q._ Otherwise you would have sold it on the Saturday?

_A._ Certainly.

_Q._ On the Monday you say he gave you an order as to the other £200,000?

_A._ Yes.

_Q._ Had you sold the first £20,000 before you saw him on the Monday?

_A._ Yes, I had.

_Q._ At what time in the morning had you sold it?

_A._ I think about half past ten.

_Q._ When did you first see Mr. Johnstone?

_A._ I saw him soon after I had sold out, between ten and eleven.

_Q._ His order had been confined to £20,000 on the Saturday?

_A._ Not exactly to £20,000; if I saw an opportunity of selling any at a quarter profit I was to sell.

_Q._ When you saw him on the Monday, did he then order you to sell the remainder?

_A._ Yes.

_Q._ Did you sell it immediately.

_A._ As soon as an opportunity offered to sell it at a profit.

_Q._ Was that early in the day?

_A._ Yes, about eleven I believe.

_Q._ When was it that you first heard any rumour of good news in the morning?

_A._ Soon after the market opened, between ten and eleven.

_Q._ You say you had purchased £40,000 for Mr. Butt?

_A._ Yes.

_Q._ When was that?

_A._ The 12th, 14th, and 18th of February.

_Q._ Different sums on those days?

_A._ Yes.

_Q._ Had you any order from Mr. Butt as to the sales?

_A._ To sell whenever I saw an opportunity of selling at a quarter profit, or three eighths as the circumstances might allow.

_Q._ How long have you known Mr. Butt?

_A._ About six months.

_Q._ Had you had any transactions with him before in that way?

_A._ Yes.

_Q._ He had occasionally employed you?

_A._ Yes, he had.

_Q._ Who introduced you to Mr. Johnstone?

_A._ Mr. Johnstone was in Mr. Butt's office when I first saw him there in Sweeting's Alley.

_Q._ It was through Mr. Butt you became acquainted with Mr. Johnstone?

_A._ Yes, it was.

_Q._ If any person had known that this news was false, and had been disposed to be a bear, he might have made his fortune by selling that day, might not he?

_A._ Certainly.

_Q._ By selling for account?

_A._ Certainly.

_Q._ You had no directions from either of those Gentlemen to sell more than they had bought that day?

_A._ No I had not.

_Cross-examined by Mr. Richardson._

_Q._ You stated to my learned Friend that you had bought large quantities of Omnium on account of this Gentleman, had any of it been paid for.

_A._ Shall I answer that question my Lord?

_Lord Ellenborough._ If the Witness looks at me I must tell him he need not answer any question that implicates him in a crime.

_Mr. Richardson._ You decline answering that question?

_A._ Yes, I do.

_Q._ You will decline answering any other questions that you think implicate yourself.--Were any of those purchases real purchases for stock transferred, or on account?

_A._ It was for Omnium--that cannot be transferred.

_Q._ You spoke of Consols?

_A._ No this was Omnium.

_Q._ Was it all bought or paid for, or on account?

_A._ I decline answering that question.

_Q._ With respect to the Consols had any of them been paid for or transferred?

_A._ I had no Consol account.

_Mr. Richardson._ I will state to your Lordship the object I have in that; I submit it is incumbent upon the prosecutors to prove in support of the allegations of their indictment, which charge a conspiracy for the purpose of enabling Mr. Cochrane Johnstone and the other gentlemen, to sell divers large sums of Government Securities, and so on, that they had an interest in those Government Securities.

_Lord Ellenborough._ That applies only to the two first counts.

_Mr. Gurney._ If I leave my case imperfect, my learned friends will take advantage of it.

_Lord Ellenborough._ It does not apply to the third count, certainly there is a particularity which is quite unnecessary in the others; it states that by certain devices and contrivances they endeavoured to raise the price of the funds, to the prejudice of His Majesty's subjects, to an undue elevation, and so on, there is enough to let in the general evidence.

_Mr. Gurney._ And there is enough in the first count, independently of the sales.

_Mr. Richardson._ The first count states this to be to enable these gentlemen to sell Omnium, and Three per Cent. Consols, at larger prices than they would otherwise have sold for; I submit to your Lordship, that in support of that it is for the prosecutors to shew that they had such to sell?

_Lord Ellenborough._ That will be an observation at the close if they leave their proof imperfect; perhaps I accede to you, but that would only apply to one count, they have six more counts, I do not say that they are all safe counts, but you will see what they propose taking their verdict upon.

_Mr. Malcolm Richardson sworn._

_Examined by Mr. Gurney._

_Q._ I believe you are a bookseller and also act as a stock broker.

_A._ I am.

_Q._ You are not a Member of the Stock Exchange.

_A._ No, I am not.

_Q._ In the afternoon of Saturday the 19th of February, did Mr. Butt, make any application to you on the subject of stock.

_A._ On the morning of that day.

_Q._ What did he apply to you to do?

_A._ He applied to me to purchase a quantity of Omnium.

_Q._ How much did he mention?

_A._ He mentioned on the first instance as much as £150,000.

_Q._ What answer did you give to that?

_A._ I hesitated to execute such a commission as that to that extent.

_Q._ How much did you purchase for him?

_A._ £20,000.

_Q._ On that Saturday?

_A._ Yes, in the morning I speak of.

_Q._ What did you do with that £20,000?

_A._ I received instructions to sell it again, if I could get a quarter per cent profit.

_Q._ Did you get a profit and sell it again?

_A._ In a short time I did get three-eighths per cent profit, and consequently sold it again without waiting for instructions.

_Q._ Did you then by his instructions make any further purchase for him?

_A._ I did in the latter part of that day purchase first £20,000 and then £10,000.

_Q._ On the morning of Monday the 21st did you sell out that £30,000?

_A._ I did.

_Q._ In pursuance of instructions received on the Saturday or on the Monday?

_A._ On the Saturday, at the time I saw him.

_Q._ At what profit did you sell?

_A._ At three-fourths per cent profit.

_Q._ What was the price?

_A._ 28-1/4.

_Q._ Have you given the account of this to Mr. Baily?

_A._ Yes I have.

_Cross-examined by Mr. Brougham._

_Q._ You were partner with Mr. Fearn, Senior, Mr. Butts, broker, were not you?

_A._ Yes, formerly I was.

_Q._ Did you not apply to Mr. Butt, stating that you had a wife and family, and wishing him to give you some employment.

_A._ Mr. Butt had been known to me ten or twelve years, and known to Mr. Fearn, Senior, only as being one of my customers in the book line.

_Q._ Did you not apply to Mr. Butt yourself to ask him to serve you.

_A._ Not upon this occasion at all.

_Q._ Will you hear the question first, and then answer it. Did you never before this apply to Mr. Butt to give you some of his business?

_A._ Yes I did.

_Q._ And he did give you some of his business upon this day?

_A._ He did.

_Cross-examined by Mr. Richardson._

_Q._ Was any of the Omnium bought for Mr. Butt, paid for?

_A._ I would rather decline answering that.

_Mr. Francis Baily called again._

_Examined by Mr. Gurney._

_Q._ These gentlemen have informed us that they have furnished you with the exact statements of all the purchases and sales; have you drawn out from their statements the purchases and sales, and the daily balances of each?

_A._ I have. It may be necessary to state, Mr. Richardson has not furnished me with a written account, but I have taken it down now from his own mouth.

_Q._ Have you from that made out a general statement of the several accounts containing the daily purchases, the daily sales, and the daily balances?

_A._ I have.

_Q._ For Mr. Cochrane Johnstone, Lord Cochrane, and Mr. Butt?

_A._ Yes.

_The account was delivered in and read, as follows;--_

====================================================================== | || | General Statement of A. Cochrane Johnstone's Omnium Account, || | from 8th to 21st Feb. 1814 || | || |-------------------------------------------------------------------|| | | through Fearn || through Hichens || |-------------------------------------------------------------------|| | | Daily | Daily | Daily || Daily | Daily | Daily || | |Purchases| Sales |Balances||Purchases| Sales |Balances|| |----------|---------|--------|--------||---------|--------|------- || |1814, Feb.| | | || | | || | 8 | 10,000 | | 10,000|| | | || | 9 | 47,000 | 10,000| 47,000|| 20,000 | | 20,000|| | 10 | 78,000 | 105,000| 20,000|| 150,000 | | 170,000|| | 11 | 115,000 | 35,000| 100,000|| 95,000 | | 265,000|| | 12 | | | 100,000|| | | 265,000|| | 14 | 96,500 | 100,000| 96,500|| 200,000 | | 465,000|| | 15 | 13,500 | | 110,000|| | | 465,000|| | 16 | 18,500 | 10,000| 118,500|| | 200,000| 265,000|| | 17 | 11,000 | 19,500| 110,000|| 50,000 | 115,000| 200,000|| | 18 | 38,000 | | 148,000|| 50,000 | | 250,000|| | 19 | | 18,000| 130,000|| | | 250,000|| | 21 | | 120,000| 10,000|| | 250,000| || ======================================================================

====================================================================== | || | General Statement of A. Cochrane Johnstone's Omnium Account, || | from 8th to 21st Feb. 1814 || | || |-------------------------------------------------------------------|| | | through Smallbone. || TOTALS. || |-------------------------------------------------------------------|| | | Daily | Daily | Daily || Daily | Daily | Daily || | |Purchases| Sales |Balances||Purchases| Sales |Balances|| |----------|---------|--------|--------||---------|--------|--------|| |1814, Feb.| | | || | | || | 8 | | | || 10,000 | | 10,000|| | 9 | | | || 67,000 | 10,000| 67,000|| | 10 | | | || 228,000 | 105,000| 190,000|| | 11 | | | || 210,000 | 35,000| 365,000|| | 12 | 20,000| | 20,000|| 20,000 | | 385,000|| | 14 | 20,000| | 40,000|| 316,500 | 100,000| 601,500|| | 15 | | | 40,000|| 13,500 | | 615,000|| | 16 | | | 40,000|| 18,500 | 210,000| 423,500|| | 17 | | | 40,000|| 61,000 | 134,500| 350,000|| | 18 | | | 40,000|| 88,000 | | 438,000|| | 19 | | | 40,000|| | 18,000| 420,000|| | 21 | | 40,000| || | 410,000| 10,000|| ======================================================================

========================================================================= | | || | | | A. Cochrane Johnstone's || Lord Cochrane's | | | Consol Account || Omnium Account, | | |from 12th to 21st Feb. 1814 ||from 14th to 21st Feb. 1814 | |-----------------------------------------------------------------------| | | through Fearn || through Fearn | |----------|------------------------------------------------------------| | | Daily | Daily | Daily || Daily | Daily | Daily | | |Purchases| Sales | Balances ||Purchases| Sales | Balances | |----------|---------|--------|----------||---------|--------|----------| |1814, Feb.| | | || | | | | 8 | | | || | | | | 9 | | | || | | | | 10 | | | || | | | | 11 | | | || | | | | 12 | 100,000| | 100,000|| | | | | 14 | | | 100,000|| 100,000| | 100,000| | 15 | | | 100,000|| | | 100,000| | 16 | | | 100,000|| 50,000| | 150,000| | 17 | | | 100,000|| | 50,000| 100,000| | 18 | | | 100,000|| 36,000| | 136,000| | 19 | | | 100,000|| 20,000| 17,000| 139,000| | 21 | | | || | 139,000| | =========================================================================