The Sun.
London, England, 1870-08-20 00:00:00

THE IMPERIAL LAND COMPANY AND THE

NATIONAL BANK.

M. Eugene Lafitte, the original conductor of the busi-
ness now possessed by the Imperial Land Company of
France, seems not to have enjoyed greater immunity from
litigation than his successors ; for prior to the transfer of
the undertaking to the existing campany he had various
extensive monetary transactions with the National
Bank, which -have resulted in Chancery proceedings
during the last five years, and respecting which he has filed
a new bill, the object being to attach a certain liability to
Mr. Harvey Lewis, M.P., Sir J. McKenna, and other
directors of the bank. The suit has, of course, been hotly
contested up to the present time, and M. Lafitte, finding
that some of the allegationi in his original bill were
founded on slightly inaccurate data, made an application
yesterday before Mr. Allen, chief clerk in the chambers
of Vice-Chancellor Bacon, for leave to amend the
bill. To this an objection was raised on the ground that
it was not, strictly speaking, vacation business. The Chief
clerk intimated that he could not accede to the appli-
cation in consequence of the objections urged on the
defendant's behalf ; but the plaintiff said that the matter
was so urgent that he should feel bound to make an imme-
diate appeal to Vice-Chancellor Malins, in whose branch of
the court the proceedings had beeninstituted.

THE COMMERCIAL INDEMNITY
CORPORATION.

At the Mansion House yesterday the Hon. James Tobin,
Andrew Clark, Josiah Robert Pearse, Philip Lincoln
Carman, William Frederick Tritton, and Herbert Lloyd
Thomas were again examined before the Lord Mayor on
the charge of issuing a false prospectus relating to the
affairs of the Commercial Indemnity Corporation of
Great Britain, of which they were directors.
Mr. George Lewis again appeared for the prosecution,
and Mr. F. H. Lewis, Mr. Montagu Williams, and Mr.
W. H. Roberts appeared for the defence. The corn-
' pany, it may be remembered, commenced business in
December last, and was ordered to be wound up in June.
Liabilities had been incurred on policies to the
extent of many thousand pounds, but there were no
assets whatever, and it was alleged that a statement
which appeared in the prospectus, that upwards of £70,000
worth of shares had been subscribed for, was entirely
untrue.
To-day the following additional evidence was given
Mr. Abraham Judah Levi, printer, who was examined
on the last occasion, was recalled, and stated that the
company owed him £407. The large prospectus regarding
a further issue of shares was printed at his office. There
were ten thousand copies, and these were put in
separate envelopes and delivered at the company's office.
He knew. all the defendants, and had seen them at the office.
of the company ; he had known Mr. Tobin, Mr.
Tritton, and Mr. Thomas for two or three years. After
witness had filed a petition to wind up the company,
Mr. Thomas and Mr. Pearse came to his office, and said
they would have a meeting in a few days, and that
they would do all in their power to settle his
claim. On a subsequent occasion he attended at the
company's office. The board was sitting specially. Mr.
Braithwaite, the managing director, came out and spoke
to him.
Mr. F. H. Lewis objected to the statements of Braith-
waite being taken as evidence.
Mr. G. Lewis said Braithwaite was one of the defen-
dants, and a co-conspirator.
The Lord Mayor allowed the evidence.
Examination continued : Braithwaite said the directors
wen willing to give me bills of the company for my debt.
I said I would take them if the directors put their names
on the back, but they would not do that, and I therefore
declined to take the bills, and the petition went on.
In reply to the Lord Mayor,
Mr. Lewis said if the directors had put their names on
the bmk of the bills they would have been personally
liable. Otherwise the company only would have been
liable.

Examination continued : I never got a farthing.
Cross-examined by Mr. F. H. Lewis : I signed the
articles of association. I had fifteen shares. 1 did not
pay anything for them. They were given to me by Mr.
Braithwaite, and from his statements I believed the com-
pany was a flourishing one. I received all my orders for
printing from Braithwaite and Jenkins, the secretary.
Pearse and Carman gave me no orders.
By Mr. Williams : I believed the representations of
Braithwaite. I had known him in other matters of busi-
ness. For a long time I had no reason to doubt his
representations. lam no party to this prosecution, but I
should like to get my money back. (Laughter.) I do
riot expect to get any of it though. (Renewed laughter.)
Mr. Henry Walter Wheeler : I am an accountant at
Gresham Buildings. Under a voluntary liquidation I
was appointed liquidator of the old company.
I do not know of any landed estate which
that company ever had. I have received nothing as
assets of the old company and I have spent 3s. out of it.
(Laughter).
(Agreement produced by which the new company were
to pay 30,000 shares for the good-will of the old
company).
Mr. Wheeler : I am unable to say whether the old
company ever had more than five or six premiums. The
new company was to pay the old 15s. of its premium
income, but they had paid nothing.
Mr. Lewis : It was stated in the agreement that
the debts of the old company were £2,800. Who told you
that ?
Witness : Mr. Braithwaite.
Mr. Lewis : Have the goodwill shares been handed to
you, or to any nominees for you ?—Witness : No.
Mr. Lewis : Has any proposition been made by the
defendants to hand the shares to you ? Witness : No.
Examination continued : I have handed the books of
the old company to Mr. Parry, the liquidator of the new
company. There was no other agreement but that re-
ferred to. In reference to the old company I have liqui-
dated nothing. (Laughter.)
By Mr. F. H. Lewis : I was appointed liquidator by a
resolution of the board. I think I got the appointment
through Braithwaite. I knew from him it was only
being liquidated for the purpose of forming a
new one. I did not go into the affairs of
old company as liquidator. I asked Braithwaite for the the
books, but could not get them from him. The agreement
was prepared by Mr. Agar in the interest of the old com-
pany. I did not know, as a fact, one way or the other,
whether the debts were £2,800. The 30,Q00 shares were
to be divided among the shareholders of the old com-
pany upon my nomination, but as a fact I did
not know whether there were five or 30,000 shareholders.
I signed the deed, believing the statements of Braith-
waite to be true, and believing myself to be acting as the
intermediary between the old and the new company. I
had known Braithwaite for five years.
By Mr. Williams September 1869, I had a conver-
sation with Braithwaite in relation tot he formation of a
new company. He said the old company could not suc-
ceed because it had not sufficient power to do ordinary fire
business, and he said that complaints had been made on
that head. Generally, he said, the thing was very pros-
perous so far, as they could do business, and he wished the
establishment of a new Company, with powers to do
the ordinary fire business, and with a new board
of directors. He asked me if I knew of
any persons that would act as directors and I
told him I did not at that time. He said there were a
good many shareholders, and that they were all to become
shareholders of the new company. Subsequenty to that
I had many interviews with him, and he told me it would
be a very good company, and that it would be worth any
gentleman's while to become a director of it. He told
me there were 9,710 shares fully paid up, and 20,000
with 2s. 6d. paid. I remember hearing something
from Braithwaite about a landed estate in connection
with the company. I remember Mr. Tritton calling at
my office in November, 1869, and that during that inter-
view Mr. Jenkins, the secretary of the company, came
in. Mr. Jenkins had the articles of the company-,
and some one was signing them, and I remarked
to Mr. Tritton, " I think this will be a very
good concern." I repeated the substance of what
Mr. Braithwaite had told me, and Mr. Tritton then and
there agreed to become a director, and signed the articles
of association. Mr. Tritton had come in accidentally,
and not by appointment. In the beginning of December
Mr. Agar called with the prepared agreement between the
two companies. I had not previously seen a draft of it.
I signed the agreement, and I did so because Mr.
Agar told me it was all correct and formal,
and after I signed it he took it away with him,
Some time after Mr. Tritton signed the agreement at my
office. He asked me if it was all right, and I said, "Oh
yes, I have already signed it." Mr. Jenkins was present.
About the month of April, my suspicions having been
aroused in consequence of my inability to get the books,
I spoke to Mr. Tritton,, and asked him to look at the
share list, and he promised to do so. In the following
month Mr. Tritton ceased to be a director. £15,000 capi-
ta was to be called up from the shareholders of the old
company.
Mr. Thomas Martin, one of the firm of Messrs. Walker,
Martin, and Cu. ship and insurance agents, Leadenhall-
street, said that he effected several insurances in the com-
pany, and that before doing so he was furnished with a
number of small prospectuses, which he distributed
among his clients.
Mr. Daw, insurance agent, deposed to effecting in-
surances in the company to the amount of £B,OOO or
£lO,OOO. His commission was 25 per cent.
Mr. Parry, the official liquidator of the new company,
said that the books of the old company were in his
possession, and it appeared that the total amount of pre- -
miums received by that company was £1 14s. lid., paid
on two policies on the 7th and 9th April. 1869. One
thousand six hundred and ninety shares were marked as
fully paid upon the old company, and 150 in the name of
Mr. Levi, with 20s. paid, leaving £l5O to be paid. That
was all the goodwill transferred to the new company.
Mr. Levi said he never heard of these one hundred and
fifty shares.
Upon this evidence Mr. G. Lewis asked the Lord
Mayor to commit the defendants for trial, for publishing
false statements relative to the company; also for con-
spiring to make these statements and to keep a false
register.
Mr. F. H. Lewis then proceeded to address the Lord
Mayor, on behalf of Messrs. Pearse and Carman, and
stated that he would call witnesses to chew that they were
highly respectable gentlemen, and not adventurers in any
way.
Mr. Williams next spoke on behalf of his clients.
His lordship adjourned the inquiry till Monday week,
stating that in the meantime he would go over the whole
of the evidence with the chief clerk and consider its bear-
ings in reference to each of the defendants.

The matter was adjourned accordingly and the defen-
dants were admitted to bail.

A' New York paper says the island of Jamaica has
been visited in the present season by heavy rains such as
it has not experienced for the last forty years.