The Sun.
London, England, 1869-09-27 00:00:00

case,

After a long conversation, it was agreed that Mr.
Straight should formally open his case, which he proceeded
to do at some length. The learned counsel said that ho
should go into the case without any exhibition of feeling,
though, of course, a good deal had arisen amongst the
many thousands who had been ruined. Ho should not
indulge in wholesale denunciations against the persons
who were now before the magistrate, but should quietly
and dispassionately state the case on which he proceeded
against the defendants. He must say that the
directors ought to have been, and must have
been, aware for four or five years past that the
company was in a state of hopeless insolvency, and yet
reports were published and bonuses paid, that would lead
to the belief that the company was in a solvent condition.
It would perhaps be said that the directors had been led by
'a
man who was now deceased; but it would scarcely be
fair to try and lay the blame on a dead mans' shoulders.
Mr. Straight then referred to the doctrine laid down by
Lord Campell in the celebrated British Bank case, and then
proceeded to give a résumé of the history of the company.
It was established in 1838 but it was not until 1865
that it assumed its present title of tho " Albert
Assurance Company." The capital of the com-
pany was £500,000, in 25,000 shares of £2O
each all of which were allotted. In 1865 the
defendants were directors of the company, with other per-
sons, named Jervis, King, Statters, Raymond, and Wilbra-
ham, who seemed to have subsequently withdrawn. In
1867 the defendants were also directors, and on each share
£3 had been paid, and further sums at the desire of the
shareholders. At the time of the crisis, in July, there was
a sum of £321,939 to be called up. The shareholders were
to receive 5 per cent., and the profits were to be divided
on a participating system between the shareholders and
the policy-holders. From 1855 to 1853 the pro-
fits were £27,108 14s. 3d. ; from 1359 to 1861,
£33,650 14s. 9d.; altogether £274,152 3s. Bd. had
been paid for amalgamations, and for tho time they
were made, the losses seemed to have commenced, for from
1862 to 1866 the loss was £281,702 Ils., and between that
period there had been amalgamations with the Western,
the Kent Assurance, and the Indian. Now, he would call
attention to the fact that in 1835 the defendants were
directors, and must and ought to have known that the
company was insolvent. They had the accounts and books
before them, and continued paying dividends and bonuses,
and he would ask the magistrate to say that this was done
to make the company appear a good and sound concern,
and this, he would argue, was criminally, wrong.
From 1867 to 1363 £1,360,630 13s. 7d. was lost, and yet
statements were put out calculated to induce the public to
buy shares and become policy-holders. Even on the 15th
January in the present year an advertisement appeared in
the papers stating that the half-yearly dividend was in
course of payment to the shareholders ; and he (Mr.
Straight) would sci.y that it was not right to conceal frcm
the shareholders and the public the trao state of the com-
pany's affairs. In February last, Mr. Lee bought Lis shares,
and then he believed the company to be in a good and
sound condition. The learned counsel at some length pro-
ceeded to speak of the amalgamations, to which he attri-
buted much of the company's misfortune, and concluded
by reading a report of the meeting of the shareholders on
the 30th August, on which occasion Mr. Price made
his celebrated statement as to the affairs of the com-
pany.

Mr. Edward Lee lived at 55, Lancaster-road, Notting-hill,
and was a law student. In the early part of this year he
had a few hundreds of his own, and was desirous of in-
vesting it. On the 15th of January he saw an advertise-
ment in the Times, stating that the half-yearly dividend of
the Albert Company was in course of payment. He also
saw two reports of the directors for 1865 and 1866. He
was led to believe from that that he would receive good
interest for the money he invested. Witness made in-
quiries with regard to the company. He gave instructions
to Messrs. Smith, brokers, to buy him 199 shares, for which
he paid £l2O. Witness then instructed Messrs. Smith to
buy whenever they could. For thirty or forty of the
shares witness never got a certificate. After pur-
chasing them, witness made certain inquiries at the office,
Waterloo-place, and from information he got there he
bought more shares, for which he received certificates.
After some considerable time he first learnt that the com-
pany was in trouble, and that was either in July or
August, and he learnt it from the newspapers. Witness
-eceived a circular from the secretary of the company, and
attended the meeting of the shareholders which was held
on the 28th of August, at the offices in Waterloo-place,
Mr. Neale in the chair. If witness had not believed that
the company was in a sound condition, he would not have
',ought the shares.
'By Mr. Metcalfe : Bought some of the shares at ss. 6d.
cm which £3 had been paid. Paid 28s. 6d. for others
and would imagine they were £lO paid up. When
he gave ss. 6d. for the shares he believed that profits
were being made, and attributed their low price to the
badness of trade.
By Mr. Poland : Held about 240 shares. Could not say
how many out of that had £lO paid on them.
By Mr. Begley : The capital represented that he pur-
chased was about £l,OOO. He was told that his liability
would be the uncalled capital out of the £23. Had trans-
actions with Smith for the last two years. Had been
studying with Mr. Valiance Lewis. Would swear he saw
the reports of the company for 1865, 1866, and 1867, in
Mr. Smith's office before he gave that person authority to
purchase.
Samuel Lowell Price, provisional liquidator of the com-
pany, said that his services were first brought into requisi-
tion on the 13th of August. Mr. Kirby, jun., for some
time acted with him as co-provisional liquidator. He first
prepared a report for a meeting of shareholders on the
28th of August. He framed certain tables from the
ledgers and cash-books and books in daily use.
The report he made was substantially correct. The
company was originally started in 1838 ; in April 1865 it
reassumed its present title. The capital now standing to
the credit of the shareholders was £178,011 ; the realising,
value was £325,989, which he thought would pro-
duce £150,000, but might produce more, and
‘.hus there was a deficiency of £971,857 2s. 2d.
in August last. In 1858 interest was paid to the amount
a £5133 4s. 2d. ; but there was no bonus. In 1859,
£6,034 lls. 8. interest was paid, but he did not think there
was any bonus • in 1860 £8,835 Bs. 11d. was paid; in 1861
£9,759 2s. 9d. ; in 1862 £12,607 10s. 7d ; in 1863
£23,530 7s. 3d. • in 1864, £12.610 10s. 74. ; 1865
£9,556 Bs. 6d. ; in 1866, £13,625 9s. ; in 1867
£9,041 15s. 3d.; in 1868, £9,059 15s. In January 1869
dividends at the rate of 5 per cent. were paid, amounting
to about £4,000. Between 1859 and 1861 a profit was made
of £54,235. The witness then gave evidence as to the
amount given to the various societies which were
amalgamated with the Albert. There was an arrangement
with Mr. Kirby, and 1'11,090 wal still due to
him. In point of fact that person was to
receive .C5OO per annum, 5 111kr cent. cn all premiums,
resMo on the promises, and be allowed to carry on his
own business. On the 4th of December, 18(37, the
arrangement was altered, awl Mr. Kirby agreed to
receive £15,000 payable in six half-yearly instalments,
in 5 per cent., and after that he was not to receive more
than £3.100 in one year.
At this point Mr. Straight asked if the case should go
further that evening, and Mr. Knox said the only question
he expressed an opinion on was as to inspecting books.
Mr. Metcalfe then questioned Mr. Price, who said thal
the books gave the fullest information, and there was not
the slightest wish to conceal on the part of the directors.
By Mr. Poland : There was a fair and legitimate diffe-
rence of opinion between accountants as to how accounts
should be kept. The directors were holders in the com-
pany to very large amounts.
Mr. Straight then asked that the case might be adjourned
for a fortnight so that he might personally inspect the
books, in order to see who really were acting in the control
of the company's affairs.
After some conversation the case was adjourned for three
weeks, the ,defendants being liberated on their Own
Eecegnkances in the sum of £lO each to appear.

MURDER AND ATTEMPTED SUICIDE.

On Sunday morning, at half-past five o'clock, a murder
was committed at No. 7, Little Suffolk-street, Borough.

It appears that a man named Charles Martin, a shoe-
maker by trade, residing in that street, hatl made
the acquaintance of a young woman named Johnson,
aged 21 years. She was a girl of some personal attrac-
tions, and had been married, it is supposed unhappily, for
she, shortly after her marriage, left her husband, and
lived for a considerable period with another man, and
during that time gave birth to a female child. Shortly
afterwards she met with Martin, who is a married
man with five children, and resides at a house in Lant-
street, in the Borough. At six o'clock on Sunday morning
Martin presented himself at the police-station, Stones
end, and asked to see the inspector on duty. He said, " I
give myself in charge for murder." The inspector said,
" You are joking." Martin replied, " I am not, for I
have murdered my dear Sarah ; I loved her, and rather
than see her in the possession of another man I killed
her." The inspector, seeing that Martin was -trapped
up to the threat, asked him what was the matter ?
Martin making no reply, a constable pulled his coat
down, and then a gash was discovered in his throat,
but the injury was comparatively trivial, and the officer
on duty considered that he was justified in sending him
to Guy's Hospital. The police authorities proceeded to
the address indicated by Martin. On the first floor they
found lying on a bed the_body of a young woman. Her
head was almost cut off from her body, the bedclothes
being completely saturated with blood, and the little child
was lying by her side unconscious of the sad fate which
had befallen its mother. Dr. Donohue, of Westminster-
bridge-road, was called in, and pronounced life to be
extinct,the wound itself being of a frightful nature. There
being no signs of a struggle, it is presumed the unfortunate
woman was murdered in her sleep. It is believed the
object of Martin in killing the unfortunate woman was to
prevent her making the acquaintance of a man of whom he
was jealous.