Ag
193
You took a very large part in the formation the company bears one of your names ? Yes, I took in fact no part in the actual formation of the company, but I would give the facts if desired.
In
One of the objects of forming the company was to take over the benefit of an Agreement of the sale of certain bond securities which had been entered by you? Quite true. fact, the whole of the idea of the bank emanated from me, but the actual formation of the Company I had nothing to do with that. I canvassed no shareholders nor did I make arrangements. I produced the idea.
The pbjects for which this company was formed included, of course, banking ?
Yes.
And it also included trustee business ? It was a trustee bank,
that was the idea.
1
The trustee business was intended to be a very prominent feature of the Instone Banking Corporation's activities? Yes.
And very considerable importance was attached to that branch of the Company's business? It was the sole reason for forming the bank, trustee and bond. That was the initial reason for forming the company.
At the meeting of Directors held on 24th December, 1927 this is your Minute book ? Yes, that is my Minute book (Ex. NIB 1
On the 24th December, 1927, a meeting of directors was held at which a resolution was passed, at which you were to cease to take such an active interest in the banking part of the business, in order to devote your whole attention to the trustee business? I cannot guarantee the date, but I remember the resolution.
They were to appoint a Managing Director to supervise the banking business in order that you might be at liberty to devote your attention to the trustee business? Yes.
In December 1927 the trustee business was still the prominent feature of the bank's business? Yes.
C
The trustee business I take it that the bank would act as financial advisers to people to look after their money, their property and investments in fact, to act as a highly respectable family solicitor ? In loco parentis, I may say.
In order to establish that relationship between your Company and the people they dealt with, public confidence would be of vital necessity for your bank ? It was existent at that date.
It would be a vital necessity that it should possess the public confidence to carry on a business of that nature ? It
was existent.
Judge:- That was necessary ? That is a matter of deduction,
My Lord.
Do you consider it is likely that if there was any doubt as to the financial stability of your bank, there would be any sort of trustee business? No, except such as came through trusting in me personally even after our bank's stability was questioned, there were those who thus showed their trust in me.
A
2.