Chapter 13

==================================================================== | || | General Statement of R. G. Butt's Omnium Account, || | from 8th to 21st Feb. 1814. || | || |-----------------------------------------------------------------|| | | through Fearn || through Richardson || |--------|---------|---------|--------||---------|-------|--------|| | | Daily | Daily | Daily || Daily | Daily| Daily || | |Purchases| Sales |Balances||Purchases| Sales|Balances|| |--------|---------|---------|--------||---------|-------|--------|| |Feb. 8 | 10,000| | 10,000|| | | || | 9 | 50,000| 10,000| 50,000|| | | || | 10 | 78,000| 110,000| 18,000|| | | || | 11 | 115,000| 33,000| 100,000|| | | || | 12 | | | 100,000|| | | || | 14 | 96,500| 100,000| 96,500|| | | || | 15 | 13,500| | 110,000|| | | || | 16 | 18,500| 10,000| 118,500|| | | || | 17 | 11,000| 19,500| 110,000|| | | || | 18 | 38,000| | 148,000|| | | || | 19 | | 18,000| 130,000|| 50,000| 20,000| 30,000|| | 21 | | 154,000| 24,000|| | 30,000| || | | | |Sold too|| | | || | | | | much. || | | || ====================================================================

=================================================================== | || | General Statement of R. G. Butt's Omnium Account, || | from 8th to 21st Feb. 1814. || | || |----------------------------------------------------------------|| | | through Smallbone || TOTALS || |--------|---------|----------------||---------------------------|| | | Daily | Daily| Daily || Daily | Daily | Daily || | |Purchases| Sales|Balances||Purchases| Sales |Balances|| |--------|---------|-------|--------||---------|--------|--------|| |Feb. 8 | | | || 10,000| | 10,000|| | 9 | | | || 50,000| 10,000| 50,000|| | 10 | | | || 78,000| 110,000| 18,000|| | 11 | | | || 115,000| 33,000| 100,000|| | 12 | 20,000| | 20,000|| 20,000| | 120,000|| | 14 | 10,000| | 30,000|| 106,500| 100,000| 126,500|| | 15 | | | 30,000|| 13,500| | 140,000|| | 16 | | | 30,000|| 18,500| 10,000| 148,500|| | 17 | | | 30,000|| 11,000| 19,500| 140,000|| | 18 | 10,000| | 40,000|| 48,000| | 188,000|| | 19 | | | 40,000|| 50,000| 38,000| 200,000|| | 21 | | 40,000| || | | 24,000|| | | | | || | |Sold too|| | | | | || | | much. || ===================================================================

======================================== | | R. G. Butt's | | | Consol Account, | | |from 11th to 21st Feb. 1814 | |--------|-----------------------------| | | through Fearn | |--------|-----------------------------| | | Daily | Daily| Daily | | |Purchases| Sales| Balances | |--------|---------|-------|-----------| |Feb. 8 | | | | | 9 | | | | | 10 | | | | | 11 | 46,000| 20,000| 26,000| | 12 | 87,000| | 113,000| | 14 | | | 113,000| | 15 | 55,000| | 168,000| | 16 | 40,000| | 208,000| | 17 | | | 208,000| | 18 | | | 208,000| | 19 | | 30,000| 178,000| | 21 | |168,000| 10,000| | | | | | | | | | | ========================================

_Q._ What appears at last to be the gross balance held by each of them on the 19th February; what is Mr. Cochrane Johnstone's balance of Omnium from all those different accounts, on the 19th February?

_A._ £420,000.

_Q._ Now state Mr. Cochrane Johnstone's Consol Account.

_A._ £100,000.

_Q._ What was the balance of Lord Cochrane's Omnium account?

_A._ £139,000.

_Q._ Now state Mr. Butt's.

_A._ £200,000.

_Q._ And it appears, I see, that there were £24,000 sold too much on the Monday.

_A._ Exactly so; there was that quantity sold more than he had purchased.

_Q._ What was Mr. Butt's Consol Account?

_A._ £178,000, and he sold only £168,000.

_Lord Ellenborough._ Then there was £24,000 too much of his Omnium, and £10,000 too little of his Consols sold?

_Mr. Gurney._ Exactly so. Now what was the gross amount of their account of balances on that day?

_A._ £759,000 Omnium, and £278,000 Consols.

_Q._ As we are not so well acquainted with Omnium as you are, if that were reduced to Consols what would they have amounted to?

_A._ It may be necessary to state, that every thousand pounds Omnium consists of £1100 Reduced and £670 Consols, therefore the whole amount of that would be £1,611,430 three per cents.

_Q._ Now upon that amount, what would the fraction of a single eighth per cent. be?

_A._ £2014:5:9.

_Lord Ellenborough._ The whole of this fund was cleared on the 21st, except £10,000 Consols, and it was oversold by £24,000 Omnium?

_A._ Exactly so.

_Mr. Gurney._ Have you calculated from the accounts, the profits made by those sales of the 21st?

_A._ I have.

_Q._ To what does it amount?

_A._ Exactly £10,450.

_Q._ That is the total of the three. Can you give me the proportion of each?

_A._ For Lord Cochrane £2470, Mr. Cochrane Johnstone £4931:5, Mr. Butt £3048:15.

_Q._ From the state of the market on the morning of the 21st if no news had arrived such as raised the funds on that day, could any persons have sold this large quantity of Omnium and Consols without very much depressing the market?

_A._ I should think not certainly.

_Q._ Do you remember at what price Omnium left off on Saturday the 19th?

_A._ I have referred back to the books; I cannot state from my own memory.

_Q._ Have you the books here?

_A._ No; they are the books of the Stock Exchange.

_Q._ Mr. Wetenall's accounts?

_A._ Yes.

_Q._ How soon after the business at the Stock Exchange began on the morning of the 21st did the news arrive there?

_A._ I should think in about half an hour after, but I really am not quite certain to that point.

_Lord Ellenborough._ The business begins at ten, I believe?

_A._ Yes.

_Mr. Gurney._ As soon as the news came, had it a sensible effect on the funds?

_A._ Yes; a gradual effect, according as the report was believed.

_Q._ Do you remember after some time whether there was any check or decline?

_A._ Yes; there was about the middle of the day.

_Q._ I mean the first decline.

_A._ Yes; afterwards they recovered.

_Q._ To what was that recovery owing?

_A._ It was generally attributed to the news that came through the city.

_Q._ You mean the chaise coming through the city?

_A._ Yes; it was generally believed it was a confirmation of the former report.

_Q._ Did that second rise which took place upon the chaise going through the city, extend still higher than it had been on the report of the arrival of the messenger?

_A._ I think it did.

_Cross-examined by Mr. Park._

_Q._ You are not under the same restraint as the other persons are, can you tell us whether these were real transactions, or only fictitious ones which daily take place at the Stock Exchange?

_A._ The accounts which were given in, I think were given in for time, but I have only taken out the figures.

_Lord Ellenborough._ I should imagine the witness would say that from the magnitude of the accounts he would think they were for time?

_A._ Certainly.

_Mr. Park._ I want to know, for I have never had Omnium in my life, whether you are not competent to say from your knowledge of these accounts, that these are all what they call time bargains?

_A._ There is nothing stated upon the face of these accounts as to what days the purchases are made for; possibly they may be for time.

_Q._ I ask you whether from your knowledge of these accounts and the investigations you have made, they are not time bargains?

_Lord Ellenborough._ He has no personal knowledge of them, he can know nothing but from the magnitude of the sum, he may suppose they must have been time bargains.

_A._ Certainly; there is nothing upon the face of the accounts to lead to any such conclusion.

_Mr. James Wetenall, sworn._

_Examined by Mr. Gurney._

_Q._ I believe you are employed by the House to take the prices of the day at the Stock Exchange?

_A._ I am.

_Q._ At what price did Omnium leave off on Saturday the 19th of February?

(_The Witness referred to a paper._)

_Mr. Serjeant Best._ Where do you get those accounts from?

_A._ I collect them from the Stock Exchange.

_Mr. Gurney._ Do you go about all day long taking the prices?

_A._ I collect them at different times in the course of the day.

_Q._ You go about taking an account from all the persons who are there?

_A._ I take them from different persons who are in the market.

_Mr. Serjeant Best._ This is a printed paper?

_A._ Yes.

_Mr. Gurney._ It is printed under your directions, I believe?

_A._ Yes.

_Q._ Is your original paper destroyed?

_A._ It is.

_Q._ Is this paper a copy from that of yours?

_A._ Yes.

_Mr. Serjeant Best._ Did you ever compare this with the paper on which you took down the prices?

_A._ Yes.

_Q._ Where do you get the contents of your written paper?

_A._ From the gentlemen in the Stock Exchange.

_Mr. Serjeant Best._ I submit that this paper cannot be evidence. The Witness states that he collects from the gentlemen in the Stock Exchange, the prices at which they buy and sell, from time to time, in the course of the day; he says he compares this printed paper with the original written paper; I am not objecting to that, but I submit, the written paper itself could not be evidence.

_Lord Ellenborough._ It is all hearsay, but it is the only evidence we can have; it is the only evidence we have of the price of sales of any description. I do not receive it as the precise thing, but as what is in the ordinary transactions of mankind received as proper information, and I suppose there is hardly a gentleman living who would not act on this paper.

_Mr. Gurney._ At what price did Omnium leave off on Saturday the 19th of February?

_A._ 26-3/4.

_Lord Ellenborough._ Do you furnish the Bank with these papers?

_A._ Yes.

_Mr. Gurney._ Was that 26-3/4 the money price or the time price?

_A._ The money price.

_Q._ The time price, I believe, is about one per cent. higher?

_A._ In general.

_Q._ At what price did Omnium commence on the Monday following?

_A._ 26-1/2.

_Q._ That is the money price?

_A._ The money price.

_Q._ Therefore the time price was 27-1/2?

_A._ I did not take the time price.

_Q._ After this news arrived what did it get up to?

_A._ As high as 30-1/4.

_Q._ At what time was that?

_A._ That is impossible for me to say.

_Q._ How soon did it get up to 30-1/4?

_A._ I cannot say; it did rise to that by degrees.

_Q._ Did it stand at that, or rise or fall?

_A._ It fell by degrees to 30, and from that to 28.

_Lord Ellenborough._ So that the rumour had a continuing effect to the close of the day?

_A._ Yes.

_Mr. Gurney._ Did it fall back so low by one and a half as it began in the morning?

_A._ No.

_Cross-examined by Mr. Serjeant Pell._

_Q._ Do you remember at what time in the course of the day the report came to the Stock Exchange, of a chaise coming through the city?

_A._ I cannot say at what time it was.

_Q._ Then perhaps you cannot tell whether or not the Stocks rose again upon any report of that kind arriving there?

_A._ According to my recollection the Stocks rose a second time; they rose at first, then they fell, and then they rose again.

_Q._ But you cannot tell at what time that was, or to what cause it was attributable?

_A._ It was attributable to a chaise arriving.

_Q._ You remember that?

_A._ Yes.

_Q._ See whether you cannot remember how long it was after the opening of the business of the day that they so rose; might it be three hours afterwards?

_A._ It was in less than three hours, I think.

_Q._ It was less than three hours that they rose the second time you mean?

_A._ Yes; the second time.

_Q._ Have you a distinct recollection of this. Though you cannot remember the precise point of time at which it took place, have you distinct recollection that they rose at first, then fell, and then rose again.

_A._ Yes; I have a perfect recollection of that, but I cannot tell the time.

_Cross-examined by Mr. Park._

_Q._ How often in the course of the day do you take that account?

_A._ Not at any particular stated times.

_Q._ You have nothing to do with buying or selling stock, I presume.

_A._ Not on my own account.

_Q._ But you are a Stock Broker?

_A._ I am.

_Q._ Then when you are not otherwise employed you fill up that paper from time to time?

_A._ No; if I perceive there are any particular fluctuations, I then make it my business to collect the prices.

_Q._ Do you mean to represent that the Stocks had not risen from what they ended at on Saturday before any news came to the Stock Exchange; had not they risen considerably that morning?

_A._ I think not, because if I recollect, there were reports in the morning that news had arrived.

_Q._ We have heard from some gentlemen that they sold stock as soon as the Stock Exchange opened; now I ask whether stock had not been sold at a rise before the news arrived?

_A._ Yes.

_Mr. Gurney._ But you say before the market opened there were some reports of a Messenger having arrived?

_A._ Yes.

_Mr. Charles Addis, sworn._

_Examined by Mr. Gurney._

_Q._ Have you a house in Shorter's-court?

_A._ No, I have not; I am concerned for a gentleman who has some property there.

_Q._ You have the letting of a house for a gentleman there?

_A._ I have.

_Q._ Was any application made to you in the week prior to the 21st of February for any part of that house?

_A._ Yes, on the 15th or 16th, I think Mr. Cochrane Johnstone applied to me for an Office in a house, the letting of which was under my management.

_Q._ What number in Shorter's-court did he finally fix upon?

_A._ It is number 5, the house almost immediately adjoining the Stock Exchange.

_Q._ Did he on that day take any part of the house of you?

_A._ He took one room for an office in that house on that day.

_Q._ The house in which Mr. Fearn is now?

_A._ Yes.

_Q._ How soon did he take any more?

_A._ He called on the following day and engaged another office.

_Q._ That was the 16th then?

_A._ I believe it was the 16th, I will not be positive, and he called on the following day the 17th, being the third time.

_Q._ Did he, when he called on the 17th, write that letter in your office (_handing it to the Witness_.)

_A._ This is a letter he left in my absence in the office, on which day I cannot say, but this was a letter that he left for me.

_Q._ That was on the third day after he had engaged the three offices?

_A._ Yes.

_Q._ He had then engaged all three?

_A._ Yes.

_Q._ Are they three rooms in the same house?

_A._ Three rooms in the same house.

_Q._ (_To Mr. Fearn_) Is that letter Mr. Cochrane Johnstone's hand writing? (_handing it to the Witness._)

_A._ I believe it is.

_It was delivered in, and read as follows:--_

"Sir,--I called again upon you to know if you have Powers to sell the house, part of which I have taken, as I find there are several persons in the house at present, which is rather awkward, and makes it too public.

"If you have powers to sell I will immediately treat with you; have the goodness therefore to leave the terms with your clerk, or send them to me at No. 18, Great Cumberland-street. I will however call again this day before I return to the West end of the town.

I am, Sir, Your obedient Servant, (Signed) A. COCHRANE JOHNSTONE."

_(Addressed) Mr. Addis._

_Cross-examined by Mr. Serjeant Best._

_Q._ I believe he took the first room for Mr. Butt expressly?

_A._ Yes; and gave me a reference to him at Mr. Fearn's, who then lived in Cornhill.

_Q._ And the next time he came he said he wanted it for Mr. Fearn?

_A._ No; he said then he wanted it for Mr. Butt.

_Q._ And the third time he said he wanted it for Mr. Fearn?

_A._ Yes.

_Q._ Mr. Fearn has now the whole.

_A._ Yes.

_Mr. James Pilliner, sworn._

_Examined by Mr. Gurney._

_Q._ Are you a Stock Broker?

_A._ Yes.

_Q._ Prior to the 21st of February had you made any purchases for the Defendant Holloway, in Stock or Omnium?

_A._ I had, in both.

_Q._ How much of either was he possessed of before business began on Monday the 21st of February?

_A._ £20,000 Omnium and £20,000 Consols.

_Q._ Did you sell that out on that Monday?

_A._ I sold £20,000 Omnium and £14,000 Consols.

_Mr. Serjeant Pell._ Does your Lordship think, in consequence of what you have suggested already, that the Witness is bound to answer to the nature of the stock?

_Lord Ellenborough._ I am not apprized whether it is a real sum or not at present.

_Mr. Serjeant Pell._ The reason I now interpose is, that if this should turn out to be a transaction which was not real, the Witness would not be bound to answer any question respecting it, because it may tend to criminate himself, and involve him in penalties. The mere circumstance of his having sold stock at all that day, supposing it not real stock, would warrant him in declining to answer these questions.

_Lord Ellenborough._ Whether he sold any thing is a link in the chain, or else you might exclude all the transactions of the day, because they might ultimately connect with the vicious sale.

_Mr. Serjeant Pell._ Suppose it should turn out to be a time bargain, these questions would be material to convict this person of an offence, the amount sold would be very material; therefore if he is not bound to answer the last question----

_Lord Ellenborough._ I do not prohibit him; I am only to tell him that if these are bargains which are against law, he is bound to know the law, and if it would involve him in any penalty he need not answer the question.

_Mr. Serjeant Pell._ All I would request then is, that your Lordship would now suggest to the Witness that he need not answer any question that will tend to criminate himself.

_Lord Ellenborough._ If it will convict you in penalties, you are not bound to answer any question.

_Mr. Serjeant Pell._ I was only taking the liberty to suggest that that admonition may be given in the early part of the examination.

_Lord Ellenborough._ I cannot tell a witness he is not bound to answer a question, until I see that it has some bearing and probable tendency to accuse him; otherwise I must rummage all the statute books for penalties to put the witnesses on their guard--I must not only carry all the penal laws in my head, but mention them to every witness who comes before me upon any subject.

_Mr. Gurney._ Did you see Mr. Holloway on the morning of the 21st?

_A._ Yes I did.

_Q._ Did he give you any directions?

_A._ I beg to decline answering that question.

_Mr. Gurney._ I submit to your Lordship he is not at liberty to decline answering that question.

_Lord Ellenborough._ You may answer that question. Did he give you any directions?

_A._ He did.

_Mr. Gurney._ What to do?

_A._ I must beg to decline answering that question.

_Lord Ellenborough._ You need not answer to what you did; but you must state what he proposed to you to do, unless you did it afterwards, and the having done it would involve you in a penalty.

_Mr. Gurney._ What did he give you directions to do?

_A._ To sell stock.

_Q._ Was it to sell all he had, or part of what he had?

_A._ To sell all.

_Q._ At what time on Monday was it?

_A._ About the middle of the day.

_Cross-examined by Mr. Serjeant Pell._

_Q._ What is Mr. Holloway?

_A._ A wine merchant.

_Q._ Where does he live?

_A._ In Martin's-lane, Cannon-street.

_Q._ Have you known him any time?

_A._ I have known him upwards of twenty years.

_Q._ How long have you acted for him as his broker?

_A._ Perhaps two years.

_Mr. James Steers sworn._

_Examined by Mr. Gurney._

_Q._ Are you Stock Broker to the Accountant General of the Court of Chancery?

_A._ I am.

_Q._ Did you as broker to the Accountant General, make purchases on Monday the 21st February?

_A._ I did.

_Q._ At what prices?

_A._ I made purchases to the amount of £15,957:10:8, at 71-5/8 per cent.

_Q._ Consols I suppose?

_A._ Yes, I have got them down in various sums.

_Q._ Was that the high price of the day, or the price at which stock opened in the morning?

_A._ I got to my office I think about eleven o'clock, or a little before, I took the orders from the Accountant General's office.

_Q._ At what time did you begin making your purchases?

_A._ I think from eleven to a quarter after eleven.

_Q._ Had the news then considerably raised the Stocks?

_A._ It had.

_Lord Ellenborough._ Is that all you did that day?

_A._ That is all I did that day.

_Mr. Gurney._ Did you do business for any body besides the Accountant General on that day?

_A._ I cannot speak to any thing but what I did for the Accountant General.

_Lord Ellenborough._ Though you cannot speak to any thing else in precise sums, do you recollect that you did buy for any body else on that day besides the Accountant General?

_Q._ I can speak to an entry on my books on that day, but I cannot say whether I did the business myself. I do not recollect doing any thing else myself besides that bargain.

_A Juryman._ At what price could you have bought that lot of Consols on Saturday?

_A._ I can state the purchases I made on Saturday to the Court; I purchased on Saturday the 19th for the Accountant General £6894:11:4 at 70 per Cent.

_Mr. Gurney._ I have called for Lord Cochrane's Affidavit, it is admitted by my learned friends that notice has been given to produce it, and it is not produced.

_Mr. John Wright sworn._

_Examined by Mr. Adolphus._

_Q._ Where do you live?

_A._ At No. 5, Panton-square.

_Q._ Do you know where Lord Cochrane lives?

_A._ At No. 13, Green-street, Grosvenor-square.

_Q._ Had you occasion to see Lord Cochrane in February or March last?

_A._ Almost every day in February and in March last.

_Q._ In the course of that time did he deliver in a paper to you?

_A._ Yes he did.

_Q._ What was it?

_A._ He delivered several papers to me.

_Q._ What was done with that? (_shewing a paper to the witness._)

_A._ Lord Cochrane brought me that affidavit for the purpose of getting it inserted in the newspapers.

_Q._ Did you do so?

_A._ I did, I got it printed in slips, and distributed a copy of it to each of the newspapers.

_Q._ Have you a copy of it?

_A._ I have not.

_Q._ Have you one of the slips?

_A._ No, I have not.

_Q._ Did you receive any other copies of affidavits purporting to be affidavits of persons of the name of Smith?

_A._ No, I had no concern whatever with Smith.

_Q._ Smith and his wife?

_A._ Certainly not, I know nothing of the printing of them.