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

" The Right Hon. Lord Keane, Chairman.

" Major James Adair, Royal-crescent, Notting-hill.
" The Rev. W. Bean, 6, Angel-road, Brixton.
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 05,000. This transaction may possibly
involve soma further 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 businesa
of :the company had been then disposed of to different
offices, and the shares had merely a nominal value. The
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 £5,408 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 lls. 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 lls. ld.

" We have endeavoured, in the shortest time possible, to
present a statement to the depositors which should contain
a broad outline of the general features of the ease. There
are many matters which need further inquiry, some of
which, with details of minor transactions, may hereafter
form the subject of another report; but we are satisfied that
further investigation will not elucidate anything 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 matters which have
come under our notice. We have done so intentionally,
as the effect of some of the transactions, as well as the con-
duct and liabilitymoefnttheosfethwehaoffhaaivrse
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had
doubt, form the subject of consideration elsewhere.
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t‘ we are, Gentlemen, yours obediently,
the manage

ig HARDINC;, PULLEIN, AND CO., Accountants.
"3, Bank-buildings, London, Nov. 23,1861."
APPROXIMATE STATEMENT OF AFFAIRS, OCT. 31, 1861.
DR. LIABILITIES. £ A. d.
To amount appearing to the credit of sundry
depositors, holders of "Investment
Stock " certificates .................... 362,597 15 7
To sundry creditors .................... 2,038 7 6
To sundry creditors fully secured, as per
contra, £ll,BOO.
To liabilities 54 respect of life assurance