The Sun.
London, England, 1869-11-05 00:00:00

BARNED'S BANKING COMPANY.

At the Mansion House, on Thursday, Mr. Chark s Moseley
and Mr. Lewin Earned Moseley, two of the directors of
Borne O's Banking Company, were summoned before the Lord
Mayor on the charge of obtaining £2,000,000 from the
public by means of false and fraudulent representations
with regard to the business of the company, of which
they were directors.

Serjeant Parry, who appeared for Mr. Charles Moseley,
said he was unable from illness to be present, but he would
attend at the next examination.

Mr. G. Lewis, who appeared for the prosecutor, said he
believed the fact was as stated by the learned Serjeant, but
he proposed to proceed against the other defendant, Mr.
Lewin Mosely.

Mr. G. Lewis, in opening the case, said it was one of
great importance,the allegation on the part of the prosecu-
tion being, that the defendants had, by false and fraudu-
lent representations, and by issuing false prospectuses, ob-
hsained from the public no less a sum than £2,000,000
ta' terling. He then went on to say that in the year 1809
here was established at Liverpool a banking firm,
t that time no doubt of very great convenience, and
poszessing great wealth, trading under the style of
Israel Earned and Co. A change seemed to take place in
the affairs of the company, and in the year 1865 there was
no doubt that the firm was in a state of hopeless insol-
vency. Being in this condition it appeared that it was
arranged to establish a joint-stock ccmpany, under
the title of Barned's ranking Company, and this
was proposed to be carried out with toe co-opera-
tion of the Contract Corporation Company, and
the Joint-Stock Discount Bank, both of which companies
were now in course of liquidation. The capital of the com-
pany was to be £2,000,000, to be made up of 40,000 shares
of £5O each, a great proportion of which were to be taken
ty the two companies above-mentioned and other bankers.
The arrangement was carried out, and the new company
of Barned's Banking Company was brought out in June 1865,
and it stopped payment in the following April 1866, the
qesult being a most ruinous loss to the shareholders, who
:were called upon to pay up the whole amount of their
shares. The purchase money for the old bank of Israel
Earned and Co. was fixed at £160,000, the payment of
which was to be spread over upwards of two years. Mr.
Lewis said he should show that, although this large sum
was paid for what was called the good will of the
old bank, he should shew that at the time of the sale
the bank was hopelessly insolvent, and that
the defendants actually owed £883,000 in their
own private account in connection with the affairs
of the bank. Mr. Lewis then read portions of the prospec-
tus of the company which represented that the business
of the bank of Israel, Darned, and Co., was in a very
flourishing condition, and was in a position to pay large
dividends, and it was held out to the public that by the
purchase of the business the new ccmpany of Barned's
Banking Company, a most flourishing business was certain
to be carried on. Mr. Lewis went on to read other portions
of the prospectus, and said that at the time the defendants
held themselves out to be men of large wealth, and imposed
upon the public, and induced them to take shares in the
company by means of this representataticn, they were in
reality in a condition of hopeless insolvency. The effect
of these proceedings was to induce the public to take a
large number of shares, and the whole affair collapsed af:.er
a few months had elapsed, and the public were de:rauded
to an enormous amount. These were the material point,
upon which the charges against the dr:rendants would
depend; and he said he had no do-abt that after the
evidence for the prosecution had been laid before his
lordship, he believed he would entertain no
doubt that it would be his duty to send
the case for further int estintien in another court. In
conclusion, Mr. Lewis said that the portion of the frau('
he proposed to establish was that ten thousand shares
were allotted to the contract corporation, and ter
thousand to the Joint Stock Discount Company,
but as this fact was likely to create great suspicion,
arrangements were fraudulently made for all these
shares to be placed in the hands of nominees, and
it was at the same time arranged that all the
share applications should be made in red anti
blue ink, and that the genuine applications from
the public should be in black ink. In fact, he insisted
that the whole proceeding was a gigantic fraud, and it was
most astonishing that men of high position like the
defendants should have lent themselves to such fraudulen+
ti :acticos.

At the close of his address, Mr. Lewis asked that
his lordship should attend at the future examinations and
complete the case, although the period of his mayoralty
will have concluded.

The Lord Mayor said he had, no objection to this, but he
suggested that as only one cleiendant was present thebetter
coul7e would be not to go into any evidence until the

next examination.

This was agreea to, and the case was formally adjourned

for a week,

The defendant was admitted to bail until the next ex

amination.

At the meeting of the Royal Geographical Society,
to be held on Monday next, Sir Roderick Murchison, the
President, will read letters from Dr. Livingstone, dated
rang w rub°.

The Limerick Farmers' Club hare published an
address in reference to the disturbance at the late meeting
by the Penians, stating their determination to persevere is
the ngitation on the land question, which must now occupy
the gravest attention of every true friend of freedom atd
justice in Ireland.

THE ALBERT ASSURANCE COMPANY.—An appli-
cation has been made at the chambers of Vice-Chancellor
James on behalf of a policy-holder for leave to inspect the
&cd of sc_ttlement of tho Kent Mutual Assurance Com-
pazy, arnalza.mated with the Albeit. It was oppocod on
the part of the ofileLil liquidator, and reflzod by tkq. ChiQf
Verk, who dis#sej Gots-