The Sun.
London, England, 1861-11-25 00:00:00

LITERA 2 URE.

ne Last of the Mortimers. A Story in T o
Voices. By the author of " Margaret Mantell,"
" Adam Grsomo," etc., etc. 3 vols. Hurst and
Blackett.
The author of these delightful works has long
oeen ranked among the most successful writers of
fiction that the present day possesses. There is
the charm of a natural manner that especially at-
tracts in all her novels. Nothing can be more
easy and flowing than her style, and the simple
occurrences of daily life are so truthfully depicted
that they impart a reality to the tone of the entire
narrative. In the present instance the tale is not a
stirring and eventful one by any means, but the
descriptions of the few important things that take
place are most vividly related. Sarah Mortimer is
a very masterly sketch, and in the delineation of
this lady the authoress achieves a marked success,
and displays her consummate dexterity in the draw..
ing of characters. We meet with a woman who is
deaf to the strongest appeals that can be made to
the feelings of humanity, who
is not endued
with that love of her child which is so deeply
implanted in the heart, and often forms a
strong sentiment in those who are otherwise weak.
The plot of the tale is a peculiar one and very skit.
fully carried out. Sarah Mortimer, who ha,i been
a great beauty in early life, goes abroad with her
father, and while in Italy was secretly married to
an Italian Count ; but her father found it out, and
insisted on his coming back with them and taking
the name of Mortimer. This the haughty Count
Sermoneta refuses to do, and the consequence was
that a separation took place. Mr. Mortimer and
his daughter returned to England. The life that
she led was the best punishment that any judge
could have inflicted for her sins. It was not till
many years had rolled away that the crisis came
which furnishes the subject of this story. Count
Sermoneta in dying charged his son to find out the
unknown mother in England, and to offer to bear
her name. He arrived at the right place, but he
could not ascertain where the object of his
search resided. The name of the Countess
Sermoneta was unknown to all the inhabi-
tants of the village, where the " Park," the
beautiful inheritance of the Mortimers, stood, one
of those stately homes of England that are alike her
ornament and pride. The second Miss Mortimer's
curiosity was aroused by the numerous inquiries
made by the Italian youth, and above all she was
amazed by her sister's manner. If she knew nothing
of the affair, as she pretended, she could not have
comported herself so strangely. She alternated
between rage and sarcasm, and altogether the
advent of a youth from a foreign land of whose
existence'all had been ignorant, convulsed the house,
excited the village, and even disturbed the hum-
drum serenity of the neighbouring town. Milly,
the second Miss Mortimer, was a very timid person,
who was much dismayed at the aspect of affairs.
She endeavoured to ascertain the secret that hung
over them with a veil of impenetrable mystery, but
to no avail. Now she was her sister's equal,
but the ten years that then made no difference
was once the boundary line between childhood and
womanhood. When Miss Mortimer was a reigning
beauty Milly was a child, and she was left behind
on the excursion to Italy, which lasted ten years.
Hence the exciting epoch of Miss Mortimer's life
was a sealed book to her nearest relative, and all
attempts to gaze into its mysteries were futile.
However, circumstances conspired to bring the deeds
of darkness to light, and one ingenious disclosure
after another at last brought the truth before those
who were so bewildered with the actions of Sarah
Mortimer, and so amazed at the pertinacity of the
young Italian. The scene in which he declares
his identity is avery striking one, and very power-
fully described. Then the guilty woman, who
persisted in denying her marriage, from the old
feelings of revenge and malice which still rankled
in her heart, was caught in her own toils. She rose
up with clenched hands to deny again the true
tale, but here she was stayed. Thus far shalt thou
go, but no farther, was pronounced against her,
and she crept away in a fearful state to her
own room, which she never left alive. The
ruling passion, strong in death, roused her to make
a will, leaving all her possessions to a young lady
relative, instead of him who, in the eyes of God
and man, was her heir. The details of that dread-
ful death-bed are vigorously told to us, and it is a.
solemn warning to all guilty like her of such dire-
ful faults. The hardened life she led, crushing down
love, extinguishing natural feelings, and indulging
pride in all its worst forms, bore its bitter fruits
and told its sad tale in the last hour. There is a
beautiful thought in one of the verses for childhood :
" In the days of my youth I remembered my God,
And He hath not forgotten my age."
Sarah Mortimer's career was the reverse of this.
She, studiously neglected her Creator, and mercy
and peace were far from her old age. Milly, the
sister, was in every respect different from Sarah.
She was mild and considerate to all, and in her
way she did far more good in her generation than
the grand Miss Mortimer, who was so vaunted in.
her youth. There was a younger " Maly," who is
very pleasing ; she was the daughter of the cousin
of the Miss Mortimers, and she was long in igno-
rance of her connexions, having been left in charge
of her mother's aunt, who also was unaware of her
father's real rank in society. She was married
early to a young officer, and some of their
home-scenes are very feelingly narrated, and also
there are some touching scenes relating to their
separation when the regiment was ordered to the
Crimea. Poor Milly was very sad at being left
among strangers, but she had a trusting spirit as
well as a loving heart and strove to take courage.
" I was not even to hear of him for a long time ;
and when I was to see him God knew alone, I was
swept out of his sight, and he out of mine as if we
did not belong to each other. There was only One
now in heaven or earth, that at the same moment
could see him and me. When I thought of that
it melted all my heart. Our Father, the only
father we two had, saw us both with no boundaries
between us—all that time when I could neither see
nor hear of Harry, God was kind to my husband.
He knew we were both in His eye if we were
worlds asunder." It is satisfactory that the sol-
dier returned safely from the wars, and thus the
most pleasing group in the story was not broken
into by the casualties of battle fields. This work
is on the whole to be regarded as a successful at-
tempt to portray the character of a remarkable
woman, one of those who, few and far between, show
us how human nature can be perverted, and the
strong will turned to the cause of wrong instead of
influencing aright, and leading many to good. This
authoress always sets high aim for her endea-
vours, and for the most part attains the
lofty eminence to which she aspires. ,he
reader finds the best possible advice in the illustra-
tion of character and the record of events which
far outweigh all sermonising in stories, and often
effect more ultimate good than many serious werks
that are too solemn and forbidding to make any im-
pression, and thus repel instead of attracting. The
chronicle of daily existence is in itself enough to
furnish innumerable instances of warning, endless
examples of evil, and countless messages of mercy
to all with eyes to see the things around in their
true light. In this capacity the authoress of this
work has long been pra-eminent, and no one who
peruses her pages attentively can be otherwise than
impressed with the superior style of the works she
produces. It is now some years since Margaret
Maitland appeared, and amid the many failures
that have been made by some moat promising
authors, it is refreshing to find ono who has not
deteriorated in her works, but still fulfils the
expectations her first production called
commendedlledforth. '
to
The
Last of the Mortimers" may be
notice with the confident assurance of success, and
the pleasing thought that it deserves that success.
It is not exaggerated in its style, although the
contents are often peculiar, but the juste milieu is
maintained between romance and tameness. It is
always a welcome sight to meet with a first-rate
i
novel, and n !his instance amusement and instruc-
tion are combined. The lessons are taught in the
account of the life and death of Sarah Mortimer.
He who runs may read; they are not forced upon
us ; and the intelligent and discerning among the
perusers of these animated pages will acknowledge
the merit, while they are fascinated by the interest
of this brilliant and vigorous novel.

THE GRATUITY TAX.—I believe that none but
very stringent measures will ever be of service in getting
rid of the gratuity tax. I have heard, though I cannot
vouch for the fact, that there are some proprietors of coun-
try mansions who put up in all the spare rooms in their
houses an earnest request that no money may be given by.
any guest to the servants of the establishment, as it con-
trary to the rule of the house that they should receive
It must be owned that such a system as this would
a country house rather the look of an inn, but th
i e rule,e in
itself, would be an excellent one. The question s, whether
it would be in any degree more effective than tho somewhat
similar anu atouncement found railway stations ? Would it
really at rest the hand of the guest on its way to his waistcoat
pocket ? I should be disposed to feqr not. The real fault
in this matter lies more, far more, with the giver of the
gratuity than with the receiver. It is not, as mignhatonradatnsfitor
hoos:
be supposed, an evidence of generosity that a man is in this
way what is called "ready with his money." It is
a,lnsiu.deeh uftroorme
itairepaeowi vdviaedyerefsi ns
ohc
being
estoi
the
egvhwai vanity
edul
onhrdtt
worse
lrmoonrvesseae
noht,fhi
saaonprlpibramwoleolbrro—aaa:plt,spiieetooor;bno,htr.aiag.pi
nsAtnhmeegagnl
neglects
charnelsjust aim
sinupwohniehhimitinmiogrhaterdtohagtohode,
opinion of the servants'-hall, or be thought a fine fellow
by a railway porter pr a tavern waiter,—Dickciis's "
tho iroir Round."

THE BANK 01 DEPOSIT AND NA-
TIONAL ASSURANCE AND INVESTMENT
ASSOCIATION.

TO THE EDITOR OF THE ST;N.

Sir,—Herewith you will receive the report of
Messrs. Harding, Pallein, Whinney, and Co., on
the affairs of this disastrous institution.
We consider every attempt to bring the affairs
into bankruptcy opposed to the true interest of the
depositors, entailing additional costs to the estate
without any advantage. We believe we can,
through the Court of Chancery under the Acts of
Parliament now in force, exercise as full power as
,can be exercised in the Court of Bankruptcy.
We are endeavouring to make arrangements
whereby needy depositors can receive assistance so
soon as the probable amount of the dividend which
will be payable has been ascertained.
We arc, Sir, your obedient savants,
CHAS. HENRY EDMANDS,
GIBBS AND TUCKER,
Joint Solicitors to the Committee.
1, New•inn, London, W.C., Nov. 23.

" BANK OF DEPOSIT.

"THE NATIONAL ASSURANCE AND INVESTMENT ASSOCIA.

TION.

I To the Committee of Depositors in the National Assur.
ance and Investment Association.

" Gentlemen,—ln accordance with your request, and at
the desire of depositors who communicated personally with
us, we have made a searching investigation into the affairs
of this company, and now beg to submit the result of our
labours as embodied in the accompanying statements and
in the following report :
" The National Assurance and Investment Association
appears to have been formed by deed poll, bearing date the
2Sth of May, 1841. The parties thereto were John Blunt,

John Elijah Blunt, Edwarl Hamilton, Joseph Macardy,
John Yato Lee, William Preston Landor, Joseph Heapy
Watson, Robert Scurr Scowler, and Robert Henry Wilson.
The said deed provided that the association should consist
and be composed of the persons before named, • and of

such others as should thereafter become members thereof,
either as assurers or as the holders or proprietors of stock
and should signify their consent, either express or implied,
to the agreement or declaration thereby made, or execute
the deed of settlement,' which it was intended should be
prepared. The objects of the association were stated to be :
" 1. The mutual insurance of lives, endowments, and
deferred sums and annuities.

" '2. The receipt and investment of money in progressive
stock, either for accumulation by adding the annual interesst

to the principal sum, or tor yearly income by paying the in.

terest as dividend.

" ' 3. The granting of loans upon real 'and personal se
_ _

eurities, and advances upon investment stock.'
" The association was, on the Bth of January, 1815, for-
mally registered at the Joint-stock Companies' office, pur-
suant to the 7th and Bth Victoria, cap. 110, sec. 58, as a
joint-stock company, existing on the Ist of November, 1844.
" Shortly after the date of the deed poll, the business of
the association was commenced and carried on under that
deed until December, 1851. The first place of business was
at No. 4, Lancaster-place, Strand ; and from 1854 to the
present time at No. 3, Pall-mall-east. There have also been
numerous agencies in various parts of the kingdom, and
there are now branch offices at Aberdeen, Bath, Birming-
ham, Brighton, Bristol, Dublin, Edinburgh, Glasgow,
Gravesend, Liverpool, Lewes, Manchester, Northampton,
and Portsmouth. At Bath and Bristol there are local
boards of management.
" In December, 1851, a deed of settlement was prepared
which bears date the 9th day of that month. It has been
executed by the following persons, who have acted as
directors—viz., Lord George Paget, Matthew Hutton Chai-
tor, Nicholas Dernys, Joseph Macardy, Frederick John
Mai illier, Peter Morrison, William Simpson Potter, William
Henry Rough, Charles Saunders,George Forbes Thompson,
James Adair, Benjamin Boothb), Lord Keane, William
Wells,Edward John Hobhouse,and Joseph Hullett Browne,
and by Henry Murray and John Chapman Dale, as cove-
nantees. This deed provides that the parties thereto and
every other person who had effected or should effect any
assurance with the association, 'on condition -of parti

cipating in profits,' or who then was or should become the
holder or proprietor of any stock of the association,' should
so long as such persons kept their policies in force, or
should continue to hold or be proprietors of stock of the as-
sociation, be and continue an association by the name of
the' National Assurance and Investment Association.'
" The funds of the association were directed to be divided
into three classes, viz.:
"' The Mutual Investment Fund,' to be ' composed of
that portion of the moneys received and to be received for
investment, and of the additions to be made thereto from
time to time by accumulation and otherwise,' such mutual
stock to be exempt from all liability arising out of the as-
surance department.

" The Mutual Assurance Fund,' to be composed of
moneys received and to be received in respect of asstvancei

on lives, 'on condition of participating in profits thereof.'
" ' The Genral Fund,' to be composed of meneys re-
ceived and to be received for investment in the capital
stock of the association (which was limited to X 100,000), and
of all:moneys received in the assurance department other
than those belonging to the Mutual Assurance Fund.

" The holders of mutual stock' were to be ' entitled to
such interest on the amount of the stock held by them, not
exceeding at any time the rate of 5 per cent. per annum,' as
should be from tTme to time determined by the board of
management, to be payable solely out of the profits,' which
should have accrued out of the said mutual investment
fund.' If such profits should be more than sufficient for
the payment of interest, it was competent for a general
meeting to direct the division of the surplus by way of bonus
among the holders of mutual stock,' which had been
created more than six months.

" The qualification of a director, until the ordinary gene-
ral meeting in the year 1857, was that he should hold stock
to the amount of £lOO, or a mutual policy or policies to the
amount of £999. After such meeting in the year 1857 the
qualification was that he should hold stock to the amount
of £250, or a mutual policy or policies to the amount of
£1,998.
" The deed further provides that ordinary general meet-
ings:of the members of the association should be held in
every year after 1856 ; also that 50 members of the associa-
tion, being each of them a proprietor 'of paid-up stock of
the association' to the amount of £2OO, or being the holder
of a policy for not less than £999, might at any time require
the dirt ctors:to call an extraordinary meeting of the asso-
ciation. It will be observed that no distinction is here made
between the proprietors of " capital stock' and the proprie•
tors of ' mutual investment stock.

" The names of the several persons who have acted--as
directors of the association since June, 1851, with their re-
spective qualifications (if any), will be found annexed to
this report. . .

" This deed was not registered at Joint-Sbck Companies'
dike, the association not being within the provisions of the
Joint-Stock Companies' Act, 7th and Bth of Victoria, cap.

110.

"In June, 18.54, an Act for granting certain powers to
the ' National Assurance and Investment Association,' 17th
of Victoria, cap. 43, was passed. This Act contains pro-
visions relative to the members of the association, which
will no doubt be found to have an important bearing upon
their rights and liabilities. By the 13th section, individual
members are to be reimbursed out of the funds of the asso-
ciation, or 'by contribution from the holders of capital
stock of the association,' and by the 15th section, contribu-
tion is to be paid by ' each holder of capital stock,' in ' such
proportion,' as the amount of capital stock held by such
capital stockholder shall bear to the total amount for the
time being of the capital stock of the association.'
"Many of the printed documents issued from time to
time contain the words and figures 'capital stock, £100,000,'
but it door not appear on investigating the ' capital stock'
account that the amount ha 3 at any time exceeded
120,050 103. Of this amount only £8,593 10s. appears to
have been paid for in cash. £7,100 appears to have been
"
sue_d in satisfaction of claims against the association ; and
entered£l,337 to (making
up the £20,050 10s.) arises from amounts
the credit of parties as cash payments by them
for
capital stock. Such amounts, however, were not really
paid, but were at-the same time charged to them in another
account as loans, and
which
',' The entries last referred The ns
appear remain
in unpaid
ahoi d
0.
ks under
dates December, 1852, sand Dsseoember, 1853, and of the
amounts so enterel a sum of £0
appears in the name of
the Marquis of Abercorn, and a Similar
name of Lord Templemore; who,ea sum of £5Ol in the
memorial
saare included as the
trustees of the association in a
September, 1854, made and enrolled izaguelianiiteielpd
;rat-mat
the 6th of
to toe 19th section of the 'National
.ment Association Act, .1854.' A. sum of sr,oo-030
appearsn 't-
in the name of Lord Keane, one of the directors; a liimof
£1,500 in the name of William Simpson Potter, another of
the directors; and sums of £3OO and £lOO in the name of
Nicholas Dennys, also one of the directors ; the remaining
portion of f • the £1 357 is composed of smaller sums. The
amount of ' capital stock' held wag varied from time to time
by additions thereto and by amounts which appear to have
la ,cn repaid to or credited in account with parties upon the
repurchase of their stock. The following statement shoals
the variation and the total amount of ' capital stock' held on
the 31st of December in each year:—
Additions Amounts Amount held on
Year. during the Repurchased
Dec,. 31
Year. or Cancelled. in each Year.
£ s. d.
£ s. d. £ s. d.
„,. 1852 .. 6,307 7 6
1111 .18i i 3 13,743 26 . .... f. 0 0 0 .. 20,000 10 0
A
1A
.. 100 10 0.. 19,900 0 0
55 • •
.. 19,000 0 Q
556' .. .. 19,000 0 0
1857 .. .. 19,000 0 0
1858 .. 300 0 0 .. 19,600 0 0
1859 .. 700 0 0 .. 18,900 0 0
1860 .. 5,500 0 0 .. 13,400 0 0
-:k` No change appears to have taken place in the 'capital
6404,V accounts since December, 31, 1860.
`llls 'capital stock,' which appears to have been re-
Puxell*464 or cancelled in the year 1860, is entered in the
capital 1147'1)7e, ttlklyietlg,+::in the names of Lord George Paget
klAnger. The sum appearing_ to havp
. ;0...- .. . LAI

been repaid to Dr. Rayner was £l,OOO for capital stock of
the same amount of which he had been the holder from
1853. With Lord George Paget an arrangement appears to
have been made by which ' capital stock' for 500 (held
by him from 1853) was given up in exchange for ' invest-
ment stock' certificates for £2,520.
"By the Approximate Statement of Affa-i s' at the 31st
of October last, it will be seen that the total liabilities
amount to £364,636 3s. Id., and that the assets are not ex-
pected to realise more than £55,086 13s. 4d., leaving the
large deficiency of £309,549 9s. 9d. Upon discovering that
the amount which the assets would be likely to realise
would be but small in comparison with the extent of the
liabilities, we considered that a strict examination into the
transactions of the company during the past 10 years was
absolutely requisite ; and the result of investigating and
analysing the accounts will be found in the ' deficiency
account.' We do not find that any profits have at any
time arisen from the business which has been carried on.
In every year the total amount allowed for interest on de-
posits has exceeded the amount charged to borrowers,
while the income derived from the assurance department
has never been sufficient to meet the expenses incurred at
the chief office, branches and agencies. The difference
between income and expenditure (the recognised loss in
each year) has been from time to time been written off in
reduction of the ' stockholders' fund,' the assurance fund,'
and (after those funds had been exhausted) din reduction of
the annuity fund. The annuity fund consisted of sums
paid for the purchase of annuities. The business of the
association in this department had been very ;small until
the year 1858, when an arrangement was made with the
Defender Fire and Life Insurance Company, by which the
liabilities in respect of foreign annuities granted by that
office were undertaken by the National Assurance and In-
vestment Association. Since that time the business has
materially increased ; but with few exceptions the annuities
have been purchased by persons resident in France, who in
most instances re iuired that the purchase money should be
invested in French Rentes or other securities, in the joint
names of the annuitants and of the company, until by the
death of the annuitant the amount was released. Under
these circumstances, it was not possible to exhaust the
annuity fund,' nevertheless, by entries in the books a re-
duction from time to time appears to have been made, so
that at the 31st of December, 1860, the balance appearing
to the credit of that account in the books was only
£62,536 17s. Ild., whereas the actual amount of the in-
vestments existing, and beyond the control of the associa-
tion, was about £156,690.
" The following analysis of entries contained in the books
shows the gradual prcgress of the insolvency fram the year
1852. The amounts inserted in the first column do not in-
clude any losses by bad debts or by unsound investments,
as it does not appear that such items have at any time been
dealt with :

Loss by Interest and Amount appearing
Expenses to Dec. to be due to De-
Year 31 in each year. positors on Dec.
31 in each year.
£ s. d. £ s. d.
1852 .... 4,969 10 0 4,303 8 0
1853 .... 12,259 610 30,543 0 5
18.54 .. .. 18,105 15 5 79,196 16 4
1855 .... 33,804 17 5 118,205 15 9
1856 .. .. 48,782 5 6 164,822 12 5
1857 .... 66,661 16 5 179,740 17 3
1858 .... 92,376 3 1 226,362 8 1
1859 .... 112,628 15 0 296,078 9 0
1160 .... 147,935 14 9 348,096 18 9

" The debts due to the association appear to be for moneys
advanced and interest thereon, and in some few cases for
' capital stock.' From an examination of the bonds and
other securities held, we have come to the conclusion that
the loss by doubtful and bad debts will be very little short
of £65,000. The largest amount owing by any debtor is
£16,280, which sum appears to be due from M. Julian Ber-
nard, and the security held is a mortgage of shares in Ber-
nard's Patent Boot and Shoe Company (Limited) ; at the
present time these shares have no market value. There are
amounts, also, appearing to be due from the following joint-
stock companies—viz., the State Fire Insurance Company,
the Consols Insurance Association, the Agricultural Cattle
Insurance Company (winding up), the Alderahott Manure
Company, the British Provident Life Assurance Company
(winding up) the Mitre Assurance Company (winding up),
the North of Ireland Mining and Pier or Harbour Com-
pany, and the Times Fire Insurance Company. Included
in the list of debtors are the following trustees end direc-
tors, viz. :—The Marquis of Abercorn (for capital stock),
£500; Lord Templemore (for capital stock) £500; Lord
Keane (for capital stock), £5OO ; William Simpson Potter,
£4,334; James Adair, £945; Nicholas Dennys, £720; and
the Hon. B. Boothby, £2BO.

_ .
"Large losses also appear to have resulted from arrange-
ments entered into with L'lmperiale, the State, and the
Defender Assurance companies, and with the agent or ma-
nager of the Livorno Bank of Commercial Credit, in Leg-
horn. In 1854 an agreement appears to have been entered
into with L'lmperiale Assurance Company (which carried
on its business in Paris), by which the National Assurance
and Investment Association subscribed a portion of the capi-
tal of that office and became interested in the business. The
connection continued until 1858, and including the expenses
incurred, appears to have resulted in a loss to this associa-
tion of nearly £20,000. With respect to the State Fire In-
surance Company, the loss has been far more considerable.
This office was established in Dec., 1853, and the advertise-
ments contain the following names of directors who are or
have also been directors of this association : •

" The Right Hon. Lord Keane, Chairman.
"Major James Adair, Royal-crescent, Notting-hill.

" The Rev. W. Bean, 6, Angel-road, Buixton.

" The Hon. B. Boothby, Judge of the Supreme Court,
Adelaide.
" Peter Carstairs, Esq., 1, Portland-terrace, Richmond.
" Henry Clark. Esq., M.D., Southampton.
" Nicholas Dennys, Esq., F.G.S., Devonshire-road,
Holloway.
"Peter Morrison, Esq., Managing Director, 44, Per -
chester-square, Hyde-park.
" Wm. S. Potter, Esq , 1, Adam-street, Adelphi.

"Wm. H. Rough, Esq., M.A., Sandown-lodge, Brixton.
"The deed of settlement of the State Fire Insurance
Company has been signed by Mr. Peter Morrison, as the
' Managing Director of the National Assurance and Invest-
ment Association,' for 50,000 shares of £1 each. On these
50,000 shares calls to the extent of 14s. per share have been
made, and the amount paid by the association in respect of
such shares has been £35,000. This transaction may possibly
involve some farther liability on the part of this association.
A Petition for the winding-up of the State Fire Insurance
Company has been presented, and is now pending before
the Vice-Chancellor Wood.
" The arrangements entered into with the Defender Life
Assurance Company in 1858 were for the transfer of a por-
tion of the business of that office, and the more fully to
secure existing and future business ; and to continue it
under the same name or style a considerable number of
shares in that company was purchased. All the business
of .the company had been then disposed of to different
offices, and the shares had merely a nominal value. Tho
company not having been dissolved, the new proprietors ar-
ranged that all subsequent transactions should be carried
on in the name of the Defender, although virtually on the
responsibility of the National Assurance and Investment
Association.

"In 1859, several payments, amounting in the aggre-
gate to £7,477 16s. 6d., are stated to have been made to or
on account of one F. Garelli, described as the gerant ' or
manager of the Livorno Bank of Commercial Credit, at
Leghorn, with whom arrangements had been made to the
effect that the Livorno Bank should become proprietors of
capital stock of the National Assurance and Investment
Association to the amount of £80,000; no cash was to be
paid by the bank, but the amount was to be secured by the
deposit of' certificates for shares in the capital of the bank.
This arrangement appears to have been carried out so far
as the exchange of certificates, but some of the ' Capital
Stock' certificates of the association were circulated. and
the above amount is alleged to have been expended in
buying them up. The certificates of shares in the Livorno
Bank are still among the securities, but we have not
valued them in the statement of affairs.
" The books which have been kept by the association are
in an imperfect state ; the system upon which they were
commenced was a good one, but unfortunately this was not
strictly carried out, owing to which large sums of money
amounting in the aggregate to £36,279 ss. Bd., received over
the counter by one of the cashiers, were not properly entered,
and no account whatever was kept of the manner in which
this sum was disbursed. Up to the present time we have
only succeeded in tracing the application of £30,871 125.,
leaving £5,403 4s, 6d. still unexplained. The account of the
managing director, Mr. Peter Morrison, is also in an unsatis-
factory state, and requires further adjustment. At present
he seems to be indebted to the extent of £1,235 Ils. 7d.
His remuneration appears to have been by a commission of 5
per cent. upon life assurance premiums, and of 2 per cent.
upon the purchase-money for annuities, and by fees as
director. The commission appears to have amounted to
£7,937 3s. ld., his fees as a director to £2,191 Bs.—making
together £10,128 Ils. Id. '
." We have endeavoured, in the shortest time possible, to
.p.resent a statement to the depositors which should contain
a broad outline of the general features of the ease. There
velligatio
are many matters which need further inquiry, some of
whieh, NCith details of minor transactions, may hereafter
fo
furrththe in
thersubjectt of 7wotallel
nrortepelourcti;dbatuet
awneyathirenagatcaisfilceuld
calculated
to remove the unfavourable impressions which will be
created by the perusal of the
present statement.
" It will, no doubt, be observed that throughout this re-
port we have abstained from making any comment or ex-
pressing any opinion relative to the which have
come under our notice. We have doreneettsoere intentionally,
as the effect of some of the transactions, as weuasthe
con-
duct and liability of those who have during the past 10 years
had the management of the affairs of the association, will,
no doubt, form the subject of consideration elsewhere.
" We are, Gentlemen, yours obediently,
HAR DINO, PULLEIN, AND CO.' Accountants.
443, Bank-buildings, London, Nov. 23, 1861;'

APPROXIMATE STATEMENT OF AFFAIRS, OCT. 31, 1861.
DR. LIABILITIES. £ s. d.
To amount appealing to the credit of sundry
depositors, holders of " Investment
Stock " certificates ......
2,038 7 6
To sundry creditors ..............
To sundry creditors fully secured, as per
I contra, £ll,BOO.
;To liabilities in respect of life auurauco .
Is

policies, transferred to the Waterloo Life
Assurance Company in September last,—
amount assured £97,009 ls. 6d.
To liabilities in respect of annuties, amount-
ing in the aggregate to about d 14,000 per
annum.

£364,636 3 1

In September last an arrangement was made with a com-
pany in Paris—La Caisse des Families—by which these re-
sponsibilties of the National Assurance and Investment
Association were to be assumed by La Caisse des Families,
upon the transfer being made of French Rentes and other
securities then standing in the joint names of the annui-
tants and of the company.
(It is not supposed that any claims against this estate
will arise out of these liabilities.)

Cu.
By cash :
At bankers' •
In hand
By sundry debtors :
Considered good .. 24,402 15 5
Considered
doubtful... £52,802 16 2
Considered bad 21,337 9 7

ASSETS,
s. d.
32 7 7
26 10 4

2 B.d.

G 8 17 11

74,140 6 9
Estimated to
realise.... 13,000 0 0 13,000 0 0
37,402 15 6

Amount carried
to deficiency
account .... 61,140 5 9
By property es-
timated to re-
alise
By securities held bycreditors,
estimated value
Less amount of claims as
per contra .. 11,800 0 0
Surplus

65,086 13 4
(L 54,742 would be required to pay 33. in the pound.)
By deficiency 309,549 9 9

£364,636 3 1
DEFICIENCY ACCOUNT FROM JUNE 1, 1851, TO OCTOBER
31, 1861.
To deficiency : —As per ap- £ s. d. £ s. d.
proximate statement of af-
fairs
To amount of capital stock
Less amount repurchased

15,380 0 0

To amount received in respect
of life assurance premiums,
&c 64,384 3 7
Less amount paid for reassur-
ance and for claims
- 37,066 12 8
_ _

To amount received as pur-
chase-money for annuities :
By, transfer from the Defender
Fire and Life Assurance
Company £69,313 13 1
Amount re-
ceived from
sundry per-
SODS
-- 203,688 16 0
Less amount now invested in
French Rentes and other se-
curities in the joint names of
annuitants and of the com-
pany 176,893 0 0
-- 26,795 16 0

Difference in balancing books not yet recon•
cited 398 0 3

£389,189 18 8
CR. a. d. £ 8. d,
By amount allowed to deposi-
tors for interest 84,057 5 2
Less—Amount charged
to borrowers, &c 23,709 11 4
60,347 13 10
By preliminary expenses, including cost of
establishing branches .. 20,175 1 8
By expenses as under ..
Advertising, chief
office 25,426 2 1
Salaries 15,695 15 11
Rent, rates, taxes,
repairs, &c. 10,855 5 7
Printing, station-
ary, stamps,&c. 6,628 16 10
Incidental ex-
penses, medical
fees, &c .. 6,823 6 8
Law charges.... 2,303 16 10
Travelling ex-
penses
Directors' fees 13,705 15 10
82,737 6 9
Agency expenses at 14 branch offices
Advertising, salaries, rents,
travelling, printing, medical
fees, petty disbursements,
and fees of local direc-
tors 35,101 15 4
Expenses in con-
nection with
theFrenchAn4
nuity business,
and with
L'lmperiale
Co., in Paris 11,322 13 0
46,424 8 4

Commission—
Allowed to

agents and
others 17,615 1 8
Allowed to ma-
naging direc-
tor in lieu of
salary.. .• • • 7,937 3 1
26,452 4 9

154,613 19 10

By amount paid to annuitants 67,621 2 9
Less Amount
received from
Frenchßentesl4,947 6 10
Investments:re-
alised upon
deaths of an-
nuitants ..... 11,901 12 6
-- 26,848 19 4
30,772 3 5
By losses as under 117,872 16 6
Shales taken in L'lmperiale
Assurance Co .. 7,900 0 0
Shares in the State Fire In-
surance Co
Bad and doubtful debts—esti-
mated loss by....
Property—estimated loss on
realising
F. Garelli and others ..... 7,477 16 6

117,872 15 6
By cash deficiency not yet ex-
plained

£389,189 18 8
" HARDING, PULLEIN, AND CO.
" 3, Bank-buildings, Nov. 23."

NB. GLADSTONE ON ,MIDDLE• CLASS
_EDUCATION IN PUBLIC SCHOOLS.

OXFORD, FRIDAY.

A highly important meeting was held in the Sheldonian
Theatre this afternoon, for the purpose of promoting the
establishment of cheap public schools for the lower middle
classes. The Vice• Chancellor occupied the chair, and
among those present wero the Bishop of Oxford, the
Bishop of Rochester, the Bishop of Chichester, the Right
Hon. Mr. Gladstone.

The Vice-Chancellor opened the proceedings in an elo-
quent speech, in which he explained that the object of the
meeting was to procure the sanction and support of the
University for a class of schools which had been established
by Mr. Woodard, in Sussex, and which was the beginning
of a great movement throughout the kingdom for the esta-
blishment of public boarding schools, for the sons of the
upper class of tradesmen, farmers, clerks, &c., at payments
from £2O to £3O a year, and to support a scheme for the
erection of premises to accommodate 1,000 boys, sons of
small shopkeepers and others of what might be termed the
lower middle class, near Shoreham, The masters of such
schools to be clergymen, graduates, and trained school.
masters.

The Chancellor of the Exchequer moved the first resolu.
tion, which was as follows :—" Considering the growth of
intelligence among the lower classes, owing to the impulse
given of late years to education, the establishment of public
boarding schools for the education of the lower and middle
classes, which may be cheap and self-supporting, is of great
national importance." After some preliminary remarks,
eulexistic of the scheme of Mr. Woodard as established
and-iil 'action at Hurstpierpoint and Shoreham, the right hon.
gentle Man proceeded to address himself to the general ques-
tion of education among the middle classes and the advan-
tage of public schools. Ho said— Mr. Vice Chancellor—Tho
place in which we are assembled is no inappropriate place,
and the framers of the resolution have reminded us that
this is no inappropriate time, for stating the object of the
work they have in hand. The resolution I am to move
states that the grow th of intelligence among the lower classes
is the reason why the establishment of certain schools among
the middle and lower classes is of great national importance.
There can be no doubt thtit we have reached an epoch at
which the wise munificence of the Legislature directed to the
cause of popular education in its broadest sense has produced
a great and visible effect upon the general intelligence of the
masa of the population, and depend upon it there is no com-
munity that can be in a perfectly healthy state without
something in the nature of a pressure upwards. As the sap
rises from the ground in vegetable nature, so it is in the
various stages of human society : with a stagnant lower
class no society can do well—no country can be power-
fal or secure. (Cheers.) On the recognition of that
principle the Universities of England have, from the first,
been founded; and although in the lapse of time a larger
portion of their special work has come into immediate con-
nection with the higher orders of the community, yet even
now they cannot afford to disregard that rich mine of wealth
in the lower strata of society, from which fresh treasures
may ever more be obtained to vary, to enrich, and to enlarge
the resources of mind, of talent, and of character, which the
et
universityhouu us
t benr :aa has to train and to apply to the service of this
Y
adtloifekitesniendsitaituthtieons.
lowestß ueltesweheiel,eainnd amongsttelligence thehas
mesamiddle of
classes,th the pop population, atthioen,th advantageer eca n
obfewnho theideohubmtrthawtood
ard lower
has
addressed himself specially, is at this moment in a position
r of some danger. And itle no unkindness
terms, because nothing is more difficult-8s: asaioyw so
atundpluanin.
t
perceived, though sure, are social movements—nothing
is more difficult than to bring home to the mind
of the members of any class the dangeis that it may 4.aya