The Sun.
London, England, 1869-10-04 00:00:00

THE EUROPEAN IN CHANCERY.

Saturday having been appointed by Vice-Chancellor James
to hear the various matters in connection with the Euro-

pean Assurance Company, the court was densely crowded.
On his Honour taking his seat, Mr. Kekewich proceeded
to make his application for the petitioher (Mr. Crawford)

;o inspect the books of the company.
Mr. Glasse, Q.C., said that he should have to take a

preliminary objection which would possibly preclude the
petitioner's counsel frcm being heard further. The pro-
ceeding was quite informal, and could be of no avail.
He might mention that the European was always looked
on as a most respectable office, and one in which the
employds of the Post Office were guaranteed.
Mr. Kekewich then proceeded to say that his client was
a shareholder, director, and policy-holder, and the only
feeling he had in the matter was for the protection of the
shareholders and policy-holders.
Mr. Glasse contended that the Vice-Chancellor could not
nterfere in the matter. He proceeded to state that by the
105th clause of the deed of settlement of the European
Company it was enacted that the subject of
dissolution could not be brought forward unless it had
been brought before two extraordinary meetings of the
company. That proviso was specially made to pro-
tect the interests of the policy-holders. Mr. Craw-

ford, as a director, could see the books and accounts at a
general meeting. By the Act of Parliament under which
the:company assumed its present name, it was enacted that
the deed of settlement should continue in force
so that it really existed up to the present day.
In Mr. Crawford's petition it was stated that the company
wal the result of amalgamations, and claims of policy-
holders to the amount of £lOO,OOO would soon be payable.
The original capital was £200,000, in 80,000 shares of
£2 10s. each ; but in 1862 the capital was increased to
£1,000,000, and Mr. Crawford said a " small portion of

which had not been paid up." (He, Mr. Glasse, was
instructed that half a million had not been paid
up.) Further on in the petition it was stated that a call
of ss. per share had been made during last midsummer.
Mr. Crawford held £4OO in shares, and had his life insured
for £3OO ; he had also an interest in two other poli-
cies, for which he was paying the premiums. The petitioner
hal been a director for four years, and had objected on
more than one occasion to the proceedings of the actuary
and manager, and two years ago he objected to £70,000
being paid to the shareholders, and also to the fees

received by the directors. In 1868 a committee of
investigation was appointed, of which Mr. Crawford was
a member ; but the persons forming the committee
pursued their inquiries under great disadvantages, and in
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some instance were denied information. Mr. Crawford

W&3 desirous of the business still being carried on; but
thought it best, for the sake of all concerned, that the
Court should interfere in the company's affairs.

He believed that the company was insolvent, and
cou'd not meet its engagements, and he was, therefore,
desirous that money should not be paid to one person in
preference to another. The assets, such as unpaid capital,
he believed to be very trifling. (Mr. Glasse said they
would be £500,000.) The learned counsel next read the
Act of Settlement, and concluded by stating that as the
preliminary steps mentioned therein had not been taken,
the petition was informal. It was the evident desire of
the petitioner to get rid of his liabilities.

The Vice-Chancellor : He cannot, unless this court agrees
to conspire with him. (Manifestations of approval.) Would
the counsel argue that the creditor for half a million could
not petition because of that deed of settlement ? Of course
such would be an extreme case, but it was extreme cases
they had to consider.
After some further discussion the Vice-Chancellor said
the demurrer would not go.'
Mr. Kekewich next referred to the production of the
books by Mr. Lake for the information of the petitioner.
The learned counsel also asked for the appointment of a
provisional liquidator.
Mr. Glasse never knew of such a course having been
taken beforo the order for winding-up was made, and he
designated the attempt to get the books as only fishing
for evidence to justify the petition. He felt sure that the
Vice Chancellor would not make the order, which was.
only asked for to furnish the petitioner with evidence.
The Vice-Chancellor asked if Mr. Crawford, in his
capacity of director could not see the books.

Mr. Kekewich said his client had asked to be allowei
to do so, and had been refused.
Mr. Glasse said that, as an individual director, he soul,
only see the books at a board meeting.

Mr. Kekewich did not know whether Mr. Glasse con-
tended that the court had no authority to make the order.
Mr. Glasse : Oh ! Yes, I do.
Mr. Millar at some length argued that there was no'
precedent for such an order being made. He then pro-
ceeded to read the answer of Sir Frederick Smith and the
remainder of the directors to the petition. They stated
that information had not been refused to Mr. Crawford,
that the petitioner the day before he presented his peti-
tion took an active part in a meeting of directors, that
persons representing £824,262 had expressed themselves
satisfied with the proceedings of the directors, that Mr.
Crawford owed the company £934, and until the petition
was served on the manager they had no knowledge what-
ever that such proceedings were contemplated.
A long legal discussion took place, and in the result the
Vice-Chancellor expressed himself averse to creating a
precedent. It bad been shewn that during the seven
years the court had had jurisdiction over such matters,
no such order had been made prior to a winding-up order.
He therefore refused to comply with the request of the
Petitioner. He also dismissed the undertaking for carry-
ing money now received to a separate account.
Mr. Glasse was glad that such was the case, as the inten-
tion of the petitioners was to get the funds of the company
blocked up so that creditors would not have their claims
settled, and thus be in a position to petition for a winding-
up order.
Mr. Rekewich denied that his client had any such inten-
tion.

Two counsel said they represented creditors whose claims
were matured, and if they were not paid, of course they
would be in a position to petition t,s a matter of right.
The proceedings were then adjourned to Wednesday
week.

Mr. Glasse, Q.C., then said he had :to move for leave to
commit Mr. Francis Goodlake, printer of the Times,
for contempt of court, for commenting on matters
sub judice. He was sorry that the leading journal should
have done so, but really the comments were utterly uncalled
for and untrue. On the 23rd instant the city article con-
tained assertions that were positively groundless. The
European was saidto havebought the goodwill of companies
that were "worthless." " The prospect of the liquidation was
said to be most discouraging." It is not the least lamentable
part of the affair that the board of directors comprises the
names of men of whose individual honour and intentions
there can be no doubt, and who, partially ignorant of prac-
tical business, must have been grossly misled by more
adroit persons." On the succeeding day another article
appeared, and the writer of it seemed to have gone quite
out of his way to spit dirt at the directors, and in it the
company was represented as insolvent. The learned
counsel then referred to the rule laid down by Vice-
Chancellor \\rood (Lord Chancellor) in the Tichborne case
in the cause of " Daw v. Eley," and others.
Mr. Wood, who appeared for the defendant, went
through the article, and at first denied that it referred to
matters sub judice, but ultimately he agreed to make a
public and humble apology, to submit to the decision of
the court, and to pay the costs of the motion.
Mr. Locock Webb said he had to make an ex parte appli-

cation on the part of certain shareholders to recover from
Mr. Crawford certain moneys, and for an injunction to
restrain him from parting with certain documenta,
The application ultimately stood over.

THE RESULTS OF POLYGAMY.—The mortality
among the children in Utah is reported to be very great.
Of sixty deaths in Salt Lake in a month, forty-four were
children. Heber Kimball is reported to have buried forty-
eight children out of sixty-three in his collection ; en
bishop had lost twenty children, another twenty-eight'
another seventeen. Joseph Smith had six wives, but left
only two sons.

GLOUCESTER DIOCESAN CHURCH CONFERENCE.
—A conference of clergy and laity is to be held at Glou •
cester next Friday, under the auspices of the lord bishop
of the diocese. The conference is to be held at the Shire
Hall, and the subjects to be discussed are-1. The best mode
of promoting and maintaining the spiritual efficiency of the
National Church. 2. Church organisation in the diocese,
present and future. 3. Middle-class education in town and
country, The subjects will be introduced by tho Earl of Ducie,
e Rev, Canon _Powell, 4n4 tll9 Rev, J. W. Sliernincham. '