The Sun.
London, England, 1866-06-12 00:00:00

Overend, Gurney, and Co.

A numerously attended meeting of the share-
holders of the above company was heldin the London

Tavern yesterday. The 'meeting was convened by
the directors, but it was suggested on their part that
some shareholder should take the chair: A sharer
holder proposed Mr. Kingscote, but an amendment
to the effect that Mr. H. E. Gurney should take the
chair was carried.

The CHAIRMAN expressed his sorrow at meeting
the shareholders under such lamentable circum-
stances, and referred to the state of the affairs of
the late company at the time they were turned over
to the present one. nose affairs were subjected to
a close examination. It was not easy to arrive at a
very approximate idea of such a large business, but
the opinion entertained regarding the assets had been
lamentably frustrated. It would be in the recollec-
tion of those present that when the new company
was formed the minimum rate of discount of the
Bank of England was only 3 per cent., and there
was no reason to apprehend that loss which had re-
sulted from the very increased rates. With reference
to the amount paid for the goodwill, there was no
doubt the firm had embarked in transactions out of

their ordinary business, which had subsequently re-
sulted in heavy loss. The sum of £500,000 was
rather under than over two and a half years' average
of the regular profits. As to the subsequent ma-
nagement, be believed the directors had endeavoured
to carry out the views expressed in the prospectus
and to transact a first-class business only ; but they
undertook a burden much heavier than they ex-
pected, and which had been rendered heavier by
events which ensued. That miscalculation of forces
had led unquestionably to the collapse of the com-
pany, and to that widespread loss which he confessed
it was misery for him to refer to. On the day of
suspension an attempt was made to obtain assistance,
but that attempt had been unsuccessful, and it was
found necessary to file an application in the Court
of Chancery for the winding up of affairs.
In answer to a question,

The CHAIRMAN said the names of the partners of
the old firm were Samuel Gurney, llenry Edwatd
Gurney (of Nuffield), David Ward Chapman (of
65, Lombard-street), Robert Birbeck (of Gatton),
B. Gurney, John Henry Gurney, Francis Hay
Gurney, Henry Birbeck (of Stoke), and William
Birbeck (of Thorpe). The new directors were
Messrs. Barclay Gibb, Gordon, and Rennie.
In answer to further questions,

The CHAIRMAN said the late firm sustained losses
in consequence of making advances not in the course
of regular discount business. The suspension of the
present company had been brought about by the
belief of the directors that the company was strong
enough to give the old firm time to liquidate the
"lock-up" which they had become involved in owing
to transacting improper business. (Cheers.)

Mr. HA ES said the mode in which the directors
took over the old business was highly discreditable
to them. (Hear, hear.)

A SHAREHOLDER asked whether the directors
looked carefully at the assets and the guarantee.
He wanted to know the nature of the guarantee.
Mr. JONES, solicitor to the company, said it was a
joint and several bond or guarantee, binding every
shilling of the joint and private assets of the old firm
to the fulfilment of the liability of the new company.
Mr. RENNIE was sorry he had to come forward in
vindication of the steps taken at the time the old
firm was taken over. He remarked that a state-
ment of its affairs was made out by Mr. J. H.
Gurney and Mr. Birbeck, who took the manage-
ment. At that time there was a lock up of
millions, against which there were special securities
held to the amount of about a million and a quarter.
This left £1,400,000, for which the partners gave a
joint and several bond that it should be paid up,
capital and interest, within three years and a half.
Besides these there were about five millions of bills
to be taken over. It was a matter of serious con-
sideration whether they should call in an accountant
to examine these bills, but at that time publicity
would have been considered destruction. As
showing the opinion entertained of the business by
the old partners, he remarked that they wished
the amount of the goodwill to be given in shares,
but they only received £2,600 in shares, and
the remainder in cash. At the present moment
they held £2,200 worth of shares, one of
them being besides a very large depositor. (Ap-
plause.) The business done during the nine months
showed a profit at the rate of £240,000 a year.

In answer to a Shareholder,

Mr. JONES said th© guarantee given by the old
partners was perfectly good to the very last shil-
ling. Every shilling of their assets had been realised
from their private estates, and had been carried to
the credit of the company. (Hear, hear.)
It was ultimately agreed, on the motion of Mr.
Alderman LAWRENCE, that the company should be
voluntarily wound up with Messrs. Turquand and
Harding as liquidators.

Mr. TURQUAND, one of the official liquidators,
stated that the amount of cash in the hands of the
the liabilities had been reduced
Bank of England at the credit of the company was
£208,243 14s. 3d. Since the 10th of May—the date
paid £4,600,375. He thought
same time to state that there had
bio
tfy
rtibhgilehl
sts ura sutp:
tnohsffei o
ann—d
been bills returned amounting to £846,993 19s. 7d. ;
but he had gone over the list of these bills, and he
believed a very considerable portion of them would
be paid within a reasonable time. There would be
some loss from them, but a large number of them
would be these bills would not
have
for Manyfetllof
weeks.
The amount of
position of commercial
ff airs duringpaid
back
in
thebutf
upl
liabilities to be run off between the present time and
acome
al .
s
the end of August was £8,353,904 leaving, after
the end of August, £1,343,592 16s. They believed
that one million and a quarter would be produced
under the guarantee of the old partners. (Hear.)
Mr. Alderman LAWRENCE moved that the com-
pany could not, by reason of its liabilities, continue
business, and that it was advisable to wind up the
same voluntarily, and that Messrs. William Tur-
quand and Robert Harding be appointed liquida-
tors. He proposed this resolution, he said, in order
to relieve the estate of the expensive assistance of
the Court of Chancery. (Cheers.)
After a lengthened discussion :the motion was
carried almost unanimously, only one hand being
held up in opposition to it.
The meeting shortly afterwards broke up.