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

PROQBEDINGS AGAINST THE DIRECTORS
OF OVEREAT, GU-BNB'', AND CO.

from the 0 erend, Gurney, and Co. to the Overend,
Gurney and Co. (Limitd),tileave the court to believe that
Mr. Gordon had an interest in that transfer, and that the
amount had risen from 111,000 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 vrattli
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, and
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.

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 bad 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 1865, 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
bad not kept. A settlement was granted for the sale of
shares.

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
0,147,444 in Overend, Gurney, and Co.'s books. The
amount handed over by Overend, Gurney, and Co: in
cash towards the payment of the 25,147,444 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 lelger ; 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
186.5 £95,000 was written off as above.

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 forniatrorf Ora-ccimi3any ;
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.

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 realized; or did they profi',
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 ;
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
.-C321,900, 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 £345,000.
At the conclusion of the cross-examination of this wit-
ness, the inquiry was adjourned until to-morrow, the Lord
Mayor intimkting that it would be advisable to sit ou
Saturday.

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 received from them a certificate of incorporation,
and the original deed of covenant transferring the 1
business from Overend, Gurney, and Co. to Overea cl,
Gurney, and Co. (Limited). [A deed, purporting to be
the deed sent into the committee of Stock Exchange, was
banded 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 224,484
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 25-0,323,
leaving a balance of 13,015 shares. On the Bth A gust,
at a meeting, there were five resolutions agired to.
but these had not appeared in the minute book under that
date. There were four resolutions entered in reference to 1
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 c-Jrnpany ; 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 severaloccasions fre m 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 basis 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 29th 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 i
83,180, leaving 153 shares unappropriated to meet the con-
tingencies which might arise in the hurry of closing the
allotment. Ceased to be secretary of the company on 16th ROYAL GEOGRAPHICAL SOCIETY.—At tne meet-
February 1866, when the bulk of the shares bad been issued ing of the Royal Geographical Society, on Monday even-
to the public. ing next, a paper will be read, entitled " A Journey in the
Cross-examined by Serjeant Parry : Witness acted as Caucasus and Ascent of Kasbelo and Elbruz," by Douglas
secretary pro tem, for the share department. Mr. Bois NV. Preshfield, Esq. Sir R. I. Murchison, Bart., will
was the permanent secretary. Mr. Barclay left England Ireside,
on board his own yacht from the 14th of July to the sth of CHANNEL RAILWAY BRIDGE. Marshal Vail-
August 1865. The Bth August was the first meeting Mr. lant, Minister of the Emperor's Household and of the
Barclay attended. Did not remember Mr. Bois then Fire Arts, has given a site on the territory of the Depot
asking Mr. Barclay to certify to the seal of the company pf Marbles for the erection of the model of the railway
to three documents, viz., the first deed of mutual covenant, bridge from Calais to Dover. The model is about to be
dated the 27th of July, 1865 ; the deed of the arrange. erected.
meat on the basis of a contemporaneous indenture, dated PRIVATE BILLS IN PARLIAMENT.—The number of
the 27th of July, 1865 ; and a deed of further covenant private bills deposited in the House of Commons for the
and arrangement. Mr. Barclay took 1,000 shares, and session 1869 is 212. Of .these, 59 are English railway bills,
paid on them £l5 per share. Did not-know of further 9 Welsh, 5 Scotch, and 11 Irish railway bills ; 5 are tram-
payments of £lO per share. Was not aware that Mr way bills, 26 waterworks, 26 gas, 12 harbour, dock, and
Barclay had paid £35,000 on his shares. tort bills, 23 town improvement, market bills, &c., 5 road
Mr. Serjeant Parry asked Mr. Lewis to admit the last 'bills, and 31 miscellaneous bills,
item.—Mr. Lewis said he knew nothing about it ; but he A meeting of the Executive Committee of ,
knew that Mr. Barclay held the Norwich bank, which the
was reputed to be worth £1,000,000. (A laugh.)
National Reform Union was held in Manchester on 1 ues-
Re-examined by Mr. Lewis : Was the deed of further day. After several matters of routine and been disposed of,
covenant and arrangement ever shown to the public ?
the question of the action of the Union was introduced, and
resolutions to the effect that an
effort should be made to
Witness : Not that I am aware of.
The public allotment-book was handed to witness, and
unite more fully the various Liberal associations,
that new
he was asked to state what were allotted to the defendants, branches should be formed, and thatarrangements for a
Witness could not give them, as there was no entry in this complete system of meetings and lectures should be orga-
nised were carried.
book. He said it was not necessary to enter them here,
as the shares had been allotted under the articles of The remains of the late Sir Thomas Edsmonde,
association. Bart., of Johnstown Castle, arrived in Dublin on Tuesday
Mr. Lewis then said there were 83,344 shares allotted to morning. The funeral cortege proceeded to the Roman
Catholic Cathedral in Maribor ugh-street. Amonst those
the public, which would leave 16,666 shares to make up
Present the 100,000 shares to be taken up ; and if so taken up, theresent were the Lord Chancellor, the Lord Chief Justice of
amount would be about £250,000.
otmen -book was handed to the court, the Common Pleas, the Lord Chief Baron, John o'l:Eagan,
The public a
Q.C.., and Sir .Tames Power, Bart. At the conclusion of the
ll
burial services, the coffin containing the remains was con-
witness having previously stated that there were 83,314
ireeyesdittoithe family vault beneath the building, and there
shares. and again gave 70,034 shares. The Lord Mayor
asked witness how he came at this discrepancy, and wit-
PA
SMALL DEALER.—The celebrated Archaeacon
news answered that he had deducted what was allotted to
the defendants, as it did not appear in the book, Paley used to relate that he had a kinsman who kept a
.
His lordship said the names of the defendants did little grocer's shop at Settle, in Craven, and whom he
appear in the book.
took great delight, when a boy, m assisting to wrap up
Witness proceeded to read from it the allotments :—D
Ir. aar. tobacco. The archdeacon held out this little grocer to
his family as a model of perseverance and industry,
.aordon, 200 shares ; Mr. Gibbs, 1,000 shares : Mr. Rennie
401 shares ; Mr. Henry Ford Barclay, 1,000 shares ; ant:because he separated two pounds of black and white
pepper which had accidentally been mixed, and went
Mr. S. G. Buxton, 600 shares.
Mr,
thirty-six times (as he used to calculate) into his shop for a
Mr.
Edmund Gurney, or Mr. Birkbeck allotted 10,000 or farthing,
any shares? When the Duke of Montrose quitted office an
address was presented to him by the officers of the General
Witness (after looking at the book some time) said he
could not find any entry. Post-office. The duke replied by I( ttcr, in which he said,
" I must state that 1 have received the kindest assistance
Mr. Lewis : To whom were the 16,666 shares allotted?
Witness: Samuel Gurney, 4,666 shares; from all those with whom I have come in contact, and
Henry Birkbeck,
2,606 , hares ; Henry Edmund Gurney, 4,000 shares ; Mr, have witnessed the greatest zeal nod activity in affording
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-
many to the correctness of the public conviction, that there
Mr. Lewis : Was one farthing ever paid on these
shares? Witness : According to the banker's book, J is no c face avl. ich is so ably conducted by the permanent
should say yes.
officials as the Post-office."
[The banker's book was here asked for ; and the cour. A serious gas explosion occurred on Tuesday at
adjourned for a quarter of an hour.] Beixt on, in the house of a gentleman named Taylor. Some
Mr. Slater's evidence was resumed by Mr. Lewis ask- of the people in the Louse havkinga statedcqtdi 0 that 'there was a
ing whether anything had been paid on the 10,666 shares, and went overd
Witness said he had looked over the banker's book, but he smell
of
vas,
Mer'd
Taylor took
lthoe
1:'-'1".;-''
was.
'''''
the house to fi where found
could not find any payment ; but he had an impression that it only t("o e-'i'Y. A ro.,iu which Lidl been c'.7l wl,sitfhuilsl
something was paid• of gas, and as soon as Mr. Taylor opened thu th,o:, v. n -out
By the Bench: I believe it was effected by a counter lighted candle, an explosion took place, which blew
entry; but no money was received at the office in respect several of the windows of the house, and severely burnt 31 r.
of any of the shares. Tay:or, who had to bo taken to the hospital.
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 : IVavertree, came before the Commissioner for the purpose
Believed that there was some hesitation on the part of of passing Lis last examination and receiving his order
Mr. Rennie in taking up the 500 shares, on account of the of discharge. During his examination the bankrupt con-
. high premium at which the shares were being taken up. ducted hinrelf in so offensive a manner that his
tlr. Oswald Howell was again placed in the witness-box own attorney had to remonstrate with him. His liabilities
and examined by Mr. Lewis, Ids previous evidence having incurred in Liverpool during the last
nine
months amounted
first been read by the clerk of the court. Ao £1,497; the assets being
£lO2. The list of creditors
Mr. Serjeant Sleigh (interrupting) said lie hoped Mr:
contained the names of sonic of the princii al local jewellers,
Lewis would retract what he had stated in his opening E J:id it was stated that the tankrupt 4ad pawned the jewel-
Arith reference to Mr. Gordon being a director in the i aTy and everything else ho could obtain. The case ma I
Ebb Vale Company, which had transferred R 11.00(/ 1 at fjourned for a month.