[2][3][1] In comparison with established institutions in the United Kingdom, banking in the Isle of Man was recent in origin.

Both banks later reopened, and in October 1861 George Dumbell, together with his partner Louis Howard, took over new premises on Prospect Hill, Douglas.

At that time George Dumbell was Chairman of the Great Laxey Mining Company, and by securing the account obtained an outlet for the circulation of the bank's notes: every miner whose weekly wage exceeded 20 shillings would be paid with a Dumbell's Bank note.

Baring Stevenson, J.P., Balladoole; Richard Penketh, MHK, Hampton Court; James Spittall, Ballaughton House.

[2][3][1] One incident at the time which indicated a degree of mistrust in Dumbell's Bank centred around a transaction involving Douglas Town Commissioners.

Many working people had not received their weekly wages and on the following day, referred to as "Black Saturday", the bank was still besieged.

[2][3][1] Another consequence of the bank's failure was that businesses which had incurred liabilities with Dumbell's were unable to arrange with other financial institutions to take over their liability to Dumbell's, and this led to a series of failures with a further knock-on effect; and the closing of the bank resulted in a long list of bankruptcies.

[6] On Monday February 5, the bank's Laxey Branch was besieged by people wishing to withdraw their money.

Alexander Bruce, the principal manager, wrote from his sick bed to deny a statement from the Chairman that the balance sheet had been drawn up irregularly.

The charges against Alexander Bruce were withdrawn due to the state of his health (he subsequently died before the end of the trial).

The charge against the defendants was one of: "unlawfully making, circulating and publishing three balance sheets which they knew to be false in certain material particulars, and which were intended to deceive the shareholders and creditors."

The liquidator in his evidence stated that he had extracted from the bank accounts £470,000 in bad debts to June 1898 of which approximately £200,000 was irrecoverable.

Another point of criticism was the sum of £65,000 owing to the London City and Midland Bank which actually appeared as a credit to Dumbell's.

Nelson's defence was that he had been: "drawn into a whirlpool of speculation by Alexander Bruce, and knew little of the inner workings and he had no intention whatsoever to deceive."

After two hours of deliberation the jury returned a verdict of guilty against Nelson; however his sentence was postponed until further charges against him and Shimmon had been heard.

[2][3][1] Nelson and Shimmon each received 5 years penal servitude for fraudulently appropriating money belonging to the bank.

On the charge of issuing false balance sheets Nelson and Shimmon received 3 years to run concurrently.