The Sun.
London, England, 1869-01-07 00:00:00

PBOCEEDINi

OF OVE.REND, GURNEY, AND CO.

On Wednesday the hearing of this case was resumed
'at the Court of Queen's Bench, Guildhall, before the Lord
Mayor and Alderman Sir Thomas Gabriel. The de-
fendants Henry Edmund Gurney, John Henry
Gurney, Robert Birkbeck, Henry Ford Barclay,
Harry George Gordon, and William Rennie—sur-
-rendered to their bail, and took seats below their
counsel. The prosecutor, Dr. Thom, was again represented
by Mr. George Lewis, jun. The defendants' representa-
tives were—For the two Gurneys and Birkbeck, Serjeant
Ballantine and Mr. J. C. Matthews ; for Barclay, Serjeant
Parry and Mr. Montagu Williams ; for Gordon, Serjeant
Sleigh and Mr. Ledgard ; and for Rennie, Mr. Hardinge
Giffard, Q.C., and Mr. Gardyne. The court was crowded,
and many were refused admission.
Mr. Lewis made an application to the bench to have
evidence given of the prospectus which had been objected
to previously ; and on the court assenting,
Mr. Francis Levi (the secretary of the London Stock
Exchange) was called. He said : An application, dated
August 1,965, was made by Overend, Gurney, and Co.
to the London Stock Exchange Committee, and documents
were handed to the committee, in answer to the require-
ments, purporting to be the original deed of covenant
transferring the business of Overend, Gurney, and Co. to
Overend, Gurney, and Co. (Limited). The prospectus,
the articles of association, bankers' vouchers, and specimens
of scrip he had retained in his possession ; the deed he
had not kept. A settlement was granted for the sale of
shares.

Mr. Lewis hoped that the evidence would entitle him to
to put in the prospectus ; but the defendants' counsel
objected.

The court over-ruled the objection, and the prospectus
was then read by the clerk of the court. Objection was
again taken that it was not evidence till the secretary of
Overend, Gurney, and Co. (Limited), was called.
Mr. Robert Slater, 26, Cornhill, said he was a member
of Lloyd's. He received a request from Mr. Gordon to
keep himself in readiness for the formation of a company ;
that was about three weeks before the formation of the
Overend, Gurney, and Co. (Limited). Mr. Gordon had
been connected with witness, who acted as secretary to
several companies. Was requested to attend at the offices
of Messrs. Young, Jones, and Co. Was not told for what
purpose. Attended on the 12th of July and found Mr.
Gordon there. Witness had to attend to the business.
The prospectus was issued on the 13th of July. On the
20th July commenced keeping a minute book.
Mr. Lewis : Was there no entry made between the 12th
and 20th of July ?—Witness : No, excepting application
for shares.
Examination continued : On the 13th of July most of
the defendants looked in, but there was no board
meeting. Received a bundle of prospectuses, and knew
from them the directors. They were issued to the
public on application. Between the 12th and 20th July,
believed all the directors, excepting perhaps Mr. Gibbs,
were at the offices, 51, Lombard-street. There was general
conversation with regard to the business of- preparing for
the allotment of shares. Remembered the application
from the Stock Exchange Committee with regard to a
settlement ;it was on the Bth of August. There was a
board meeting on this application, at which there were
present Mr. John Henry Gurney (in the chair), Mr.
Barclay, Mr. Birkbeck, Mr. Gibbs, and Mr. Rennie. In
accordance with a resolution, he applied to Messrs. Young
and Jones, the solicitors of the company, for documents,
and reef.; vsnl from them a certificate of incorporation,
and the original deed of covenant transferring the
business from Overend, Gurney, and Co. to 0 veret. d,
Gurney, and Co. (Limited). [A deed, purporting to be
the deed sent into the committee of Stock Exchange, was
handed to witness.] Witness could not say that it was the
same as sent ; there was only one parchment document sent
to the committee. The documents with witness's signature,
bearing date 12th August, 1865, were then read. They
were sent to have a settling day for quotation of shares on
the Exchange. The documents purported that 224,454
shares were applied for by the public, and 365 of these had
been withdrawn. There were 83,340 shares allotted
unconditionally ; and at 7 per share amounted to p:1-0.323,
leaving a balance of 13,015 shares. On the Bth A •gnst,
at a meeting, there were five resolutions agreed to.
but these had not appeared in the minute book under that
date. There were four resolutions entered in reference to
the deed of transfer of 27th of July : the custody of the
deeds in the hands of Messrs. Young and Jones, the soli-
citors to the company; the custody of the keys by the
chairman (Mr. Edmund Gurney), and Messrs. Barclay,
Bevan, and Co., and Mr. Heskitt, valuer of premises. On
the Bth of August was not present when the resolutions
were passed ; was there at part of the meeting. Was
requested to withdraw on several occasions fr in the board-
room, and this may have been the case on this occasion.
This took place up to the time of witness leaving the com-
pany in the following January. Saw seals affixed to three
deeds on the Bth of August ; was not aware of their
contents. On the 12th of August forwarded the deed of
transfer of 27th July to the Committee of the Stock
Exchange ; it bore the signatures of the defen-
dants and attesting witnesses. The deed of arrange-
ment, on the b is of the deed of transfer,
also bore signatures of the defendants, excepting Mr.
Gordon's. The shares allotted to Mr. John Henry Gurney,
irrespective of those allotted for good will, was not known
to witness. At the allotment of shares on the 22th July
there were present Mr. John Henry Gurney, Mr. Birk-
beck:, Mr. Gibbs, Mr. Gordon, Mr. Henry Edmund
Gurney, and Mr. Rennie. The total number allotted was
83,180, leaving 153 shares unappropriated to meet the con-
tingencies which might arise iu the hurry of closing the
allotment. Ceased to be secretary of the company on 16th
February 1866, when the bulk of the shares had been issued
to the public.
Cross-examined by Serjeant Parry : Witness acted as
secretary pro tem. for the share department. Mr. Bois
was the permanent secretary. Mr. Barclay left England
on board his own yacht from the 14th of July to the sth of
August 1865. The Bth August was the first meeting Mr.
Barclay attended. Did not remember Mr. Bois then
asking Mr. Barclay to certify to the seal of the company
to three documents, viz., the first deed of mutual covenant,
dated the 27th of July, 1865 ; the deed of the arrange-
ment on the basis of a contemporaneous indenture, dated
the 27th of July, 1865 ; and a deed of further covenant
and arrangement. Mr. Barclay took 1,000 shares, and
paid on them £l5 per share. Did not know of further
payments of £lO per share. Was not aware that Mr
Barclay had paid £35,000 on his shares.
Mr. Serjeant Parry asked Mr. Lewis to admit the last
item.—Mr. Lewis said he knew nothing about it ; but he
knew that Mr. Barclay held the Norwich bank, which
was reputed to be worth £1,000,000. (A laugh.)
Re-examined by Mr. Lewis Was the deed of further
covenant and arrangement ever shewn to the public ?
Witness : Not that I am aware of.
The public allotment-book was handed to witness, and
he was asked to state what were allotted to the defendants.
Witness could not give them, as there was no entry in this
book. He said it was not necessary to enter them here,
as the shares had been allotted under the articles of
association.
Mr. Lewis then said there were 83,344 shares allotted to
the public, which would leave 16,666 shares to make up
the 100,000 shares to be taken up ; and if so taken up, the
amount would be about £250,000.
The public allottnen -book was handed to the court,
witness having previously stated that there were 83,31 s
shares. and again gave 70,034 shares. The Lord Mayor
asked witness how he came at this discrepancy, and wit-
ness answered that he had deducted what was allotted to
the defendants, as it did not appear in the book.
His lordship said the names of the defendants did
appear in the book.
Witness proceeded to read from it the allotments :—Mr.
cordon,. 200 shares ; Mr. Gibbs, 1,000 shares : Mr. Rennie
401 shares ; Mr. Henry Ford Barclay, 1,000 shares ; ant.
Mr. S. G. Buxton, 600 shares.
Mr. Lewis : Do you find that Mr. John Henry Gurney,
Mr. Edmund Gurney, or Mr. Birkbeck allotted 10,000 or
any shares ?

LAW AND POLICE.

- a--

I MR. RUSSELL GURNEY'S ACT.—A curious point, a point
exceedingly interesting to members of benefit societies, has
been raising concerning the meaning of the word
" servant," in the Act passed in the last Parliament,
under the auspices of the Recorder of London. At the
Middlesex Sessions a man named Tyree, who had
acted as treasurer to a loan society established in
Marylebone, was indicted under the Act for having
embezzled £lB6 belonging to the members. The
prisoner's counsel submitted that his client, having been
paid no salary, was neither a clerk nor a servant within
the meaning of the statute. He was, however, found
guilty, but the judge reserved the point which had been
raised, and deferred passing sentence until it can be decided
upon by a superior court. In the meantime the pi isoner
is admitted to bail.

BANTING IN COURT. —Mr. Banting, the Court under-
taker and anti obese writer, seems to be " fated " to be
kept prominently before the public. He has been sum-
moned at the Hammersmith Police-court frt. having allowed
a person in his service to stand on th , sill of a window for
the purpose of cleaning it, That the window was so
cleaned there was no question, but the work was clone,
not by one of Mr. Banting's servants, but by a competent
glazier employed for the purpose. The complainant, a
man named Hanson, contended that the tradesman was
Mr. Banting's servant whilst employed under his roof ;
but the magistr _te decided otherwise, and dismissed the
summons with costs.

THE ELECTION DISTURBANCES.—A case arising out of
the recent disturbances in the northern division of
Leicestershire has been heard at Leicester. Fourteen
men were charged with "unlawfully, riotously, and
wantonly, with divers other evil - disposed per-
sons, to the number of fifty and more, assembling
together to disturb the public peace at Sheepshed, on Nov.
20." Several farmers described the outrageous treatment
they received from a mob as they were proceeding to vote
for Lord J. Manners and Mr. Clowes. The counsel
f•or the defence urged that the proof of identity
rested entirely n the evidence of the policemen,
and even they could not speak to any particular
acts committed by his clipr_ts, only that they formed part
of a crowd who were guilty of riotous conduct. He asked
the jury not to convict the defendants, wim we -e y,ung
men of good character, of the serious off nce w ih which
they were charged. The jury, however, f. and all the
prisoners guilty, and they were sentenced to three months'
bard labour each.

ROYAL GEOGRAPHICAL SOCIETY.—At tne meet-
ing of the Royal Geographical Society, on Monday even•
ing next, a paper will be read, entitled " A Journey in the
Caucasus and Ascent of Kasbek and Elbruz," by Douglas
W. Freshfield, Esq. Sir R. L Murchison, Bart., will
'reside.
CHANNEL RAILWAY BRIDGE. Marshal Vail-
lent, Minister of the Emperor's Household and of the
Flee Arts, has given a site on the territory of the Depot
a Marbles for the erection of the model of the railway
"bridge from Calais to Dover. The model is about to be
erected.
PRIVATE BILLS IN PARLIAMENT.—The number of
private bills deposited in the House of Commons for the
session 1869 is 212. Of these, 59 are English railway bills,
Q Welsh, 5 Scotch, and 11 Irish railway bills ; 5 are tram•
way bills, 26 waterworks, 26 gas, 12 harbour, dock, and
tort bills, 23 town improvement, market bills, &c., 5 road
bills, and 31 miscellaneous bills.
A meeting of the Executive Committee of the
National Reform Union was held in Manchester on Tues-
day. After several matters of routine and been disposed of,
the question of the action of the Union was introduced, and
resolutions to the Effect that an effort should be made to
unite more fully the various Liberal associations, that new
branches should be formed, and that arrangements for
complete system of meetings and lectures should be orga-
nised were carried.
The remains of the late Sir Thomas Edsmonde,
Bart., of Johnstown Castle, arrived in Dublin on Tuesday
morning. The funeral cortege proceeded to the Roman
Catholic Cathedral in Marlbor ugh-street. Amonat those
present were the Lord Chancellor, the Lord Chief Justice of
the Common Pleas, the Lord Chief Baron, John O'llagant
Q.C., and Sir James Power, Bart. At the conclusion of the
burial services, the coffin containing the remains was con-
rued to the family vault beneath the building, and there
lepositeil.
A SMALL DEALER.—The celebrated Archdeacon
Paley used to relate that he had a kinsman who kept a
little grocer's shop at Settle, in Craven, and whom he
took great delight, when a boy, in assisting to wrap up
tobacco. The archdeacon held out this little grocer to
his family as a model of perseverance and industry,
because he separated two pounds of black and white
pepper which had accidentally been mixed, and went
thirty-six times (as he used to calculate) into his shop for a
farthing.
When the Duke of Montrose quitted offi,

ice an
Witness (after looking at the book some time) said he address was presented to him by the officers of the General
Post-office. The duke replied by letter, in which he said,
could not find any entry.
Mr. Lewis :To whom were the 16,666 shares allotted ? " I must state that 1 have received the kindest assistance
from all those with whom I have come in contact, and
Witness: Samuel Gurney, 4,666 shares; Henry Birkbeck,
have witnessed the greatest zeal and activity in affording
2,606 f.hares ; Henry Edmund Gurney, 4,000 shares ; Mr.
John Henry Gurney, 4,000 shares ; Mr. Robert Birkbeck me all the information which might be necessary to enable
2,000 shares.
me to master the business of the office; and I can bear testi-
Mr. Lewis : Was one farthing ever paid on these mony to the correctness of the public conviction, that there
shares? Witness: According to the banker's book, I
is no cffice which is so ably ccnducted by the permanent
should say yes,
officials as the Post-office."
[The banker's book W 2 S. here asked for; and the cons; A serious eas explosion occurred on Tuesday_at
adjourned for a quarter of an hour.] Brixton, in the house of a gentleman named Taylor. Some
Mr. Slater's evidence was resumed by Mr. Lewis ask- -
f
othe people in the house having stated that there was a
ing whether anything bad been paid on the 16,066 shares. 'el
Witness said he had looked over the banker's book, but he thesu llico of
gas,
Mr. Taylor took a candle and went over
useto.7. A room which had been closed was full
find where the leakage was. Ho found
could not End any payment ; but he had an impression that it only too easey.
something was paid,
of gas, and as soon as Mr. Taylor opened the door, with his
By the Bench : I believe it was effected by a counter lighted candle,
.an explosion took, place,. which
burntblew mount
• l of the windows of the house, and severely
1
entry; but no money was received at the office in respect several
of any of the shares.
Taylor, who had to bo taken to rhohospital.
Cross examined by Mr. Serjeant Sleigh: Mr. Gibbs In the Liverpool Court of Bankruptcy on Tuesday,
took part in all the business.
a clergyman named Duncan, curate of Holy Trinity Church,
Cross-examined by Mr. Giffard, for Mr. Rennie :
W
avertree, came hefore tLe Commissioner for the purpose
Believed that there was some hesitation on the
part of of passing his last examination and receiving his order
Mr. Rennie in taking up the 500 shares, on account of the high premium at which the shares were being taken uof discharge. During his examination the bankrupt con-
p. ducted himself in eo offensive a manner that his
11r. Oswald Howell was again placed in the witness-box
and examined by Mr. Lewis, his previous evidence havin2. own attorney had to remonstrate with him. Ibis liabilities
first been read by the clerk of the court, incurred in Liverpool during the last nine months amounted
to ..£1,497; the assets being
.£lO2. The list of creditors
Mr. Serjeant Sleigh (interrupting) said he boped Mr. contained the names of some of the principal local jewellers,
Lewis would retract what he had stated in his opening ' and it was stated that the Lankrupt had pawned the jewel-
with reference to Mr. Gordon being a director in the 'errand everything else he could obtain. The Case wets
Ebb Valo Company, which had transferred 131.009 adfigglied for a m94th•
I

'S AGAINST THE DIRECTORS from the Overend, Gurney, and Co. to the Overend,
Gurney and Co. (Limited),.leave the court to believe ghat
Mr. Gordon had an interest in that transfer, and that the
amount had risen from £ll,OOO to £48,000. His client
(Mr. Gordon), was not a director of the Ebb Vale Company,
and was not in any way connected with it. The Ebb
Vale Company had actually taken off £48,000-,aroeth
from Overend, Gurney, and Co. (Limited) of the Millwall
Company, a perfectly worthless concern. He hoped,
therefore, Mr. Lewis would make the retractation.
Mr. Lewis utterly denied that Overend, Gurney, ana
Co. (Limited) possessed a single farthing of Ebb Vale
Company. The only mistake was that Mr. Gordon was
a director of the old Ebb Vale Company, with whom they
had transactions, and not of the new. with whom they
had nothing to do.
Mr. Oswald Howell, examination resumed : The
list of debts of £4,214,896 was transferred by the old
company to the new as cash ; that appeared
from the general ledger of the company. The
..mount due in deposit and drawing accounts was
£5,147,444 in Overend, Gurney, and Co.'s books. The
amount handed over by Overend, Gurney, and Co. in
cash towards the payment of the £5,147,444 was
£120,000. Before the 31st of July the amounts in the
books as due had represented £4,448,000. Mr. Leopold
Lewis's debt had £70,000 written off in March 1865, and it
was debited to the reserve fund of Overend, Gurney, and
Co. in the private ;eager; in May £90,000 was treated in
a similar manner, as was also £35,000 in the same month.
The whole amount transferred was £330,000. The Millwall
Company was transferred as £566,000 ; and in March
1865 £95,000 was written off as above.
Mr. Lewis : Have you examined the books to ascertain
whether of this £4,000,000 odd transferred to the Limited
Company any portion had been realised; or did they profit
or lose by the transference?
Witness : The losses were very serious. The Atlantic
Royal "Mail Company's debt had increased by £8,764 ;
Astley and Co.'s balance of £4OO, as due to the transfer,
had increased by business done to £11,870, which had
turned out a total loss. Bruzewitch's debt was originally
£54,000, and this was increased by £BO,OOO, the
total loss to the new company being £135,344. Messrs.
J. H. Cox and Co. owed £lBO, and at the stoppage
of the company it had increased to £4,575. The Greek
and Oriental Company's debt at the transfer was £144,144 ;
:t was not increased, but nothing came from it. The
East India Shipping Company's debt commences
with £406,264, and it left off with £578,218—an
increase of £171,954. F. and F. Gurney's account
began at £190,000, and ended with an increase of
£1,279. Halliday, Fox, and Co., £44,000, and at the
stoppage of £66,000. Mr. Thomas Howard's debt was
£321,000, and it remained about the same. Mr. John
Jones's account was £22,000, and at the stoppage £61,000.
Mr. J. E. C. Cock's account, £243,000 at the time of
transfer, and at the stoppage it was £345,060.
At the conclusion of the cross-examination of this wit-
ness, the inquiry was adjourned until to-morrow, the Lord
Mayor intimating that it would be advisable to sit on
Saturday.