The New York herald., 1866-06-27


apprehend The high rates Of interest which snsued Re-
ferng To what had been given for The good will Of the
ment OF the last few years the old nrm had unfortu-
natey embarked In certain transactions Of the eg
although productive in the first instance Of great ap
parent profit subsequently resulted in heavy ossea But
was also perfectly true that the Circumstance OF these
To material extent with the and valuable regu
lar discount business which for many years had been
carried on by the firm, and which, adhered - OF late
years. would have prevented those losses 70 which he
had alluded 1t for the sake preserving that
gular and lucrative discount business that the new
company was formed In estimating the profits Of the
business he and his colleagues eliminated the profits aud
losses which had resulted from the extraneous business
which the old firm had entered into and which the new
firm wished to avoid, and they thought that f500 600
for the good will was rather under than over two and
half of the regular profits of the business II
arranged that f50O 600 should be paid for the good w
one-haf TO be paid in cash and the other half to be
taken in shares OF the new company That arrangement
carried out, and OF the f250 000 which to be
taken in shares the moiety remaining unpaid at the
dred shares With reference to the lock.up with
which was involved the liquidation OF the old COM
pany the deposits turned over amounted TO f5 000
and the capital, which shortly paid up, FL 000
600, besides tho good will. Therefore. the cnlcu!a.
ton OF the directors was that II only ordinary
times had supervened the lock up of f3O00 600 could
be safely carried against the deposits and capital
OF 30 bearing in mind that was expected the
lock up would be Of temporary character and that IL
would be rapidly reduced and run on within period Of
three apc half years II was not for him. perhaps TO
express any opinion on the matter but his belief
liquidation it would have been successfully carried
out The fact was when the shares fell into the
ket the deposits were reduced 10 point which made
the lookup exceedingly announcement and finally fatal
With regard to the subsequent conduct OF the business
he thought II was due 10 those directors who not
members Of the old firm t, say that nothing could
exceed their attention TO their duties and their anxiety
to transact business of satisfactory character only
The fact the directors Of the company under
tack a burthen which proved much heavier than they
ever anticipated and much heavier than IL would have
been but for the exceptional state Of things which
sued and that had unquesOnaby led To that collapse OF
the company and to that widespread loss which II
scarcely necessary for him refer to- He would
briefly refer to the stoppace of the company. 1t
certainly not the expectation OF the directors that the
stoppage would have taken place in the sudden manner
that it did short time previously such idea had
crossed the minds OF the directors but the fact was the
strhgency of the money market had operated az to
prevent the use of any bin except that of first class
character, and Of the bills hand it not possible,
On the pressure of the moment 10 convert sufficient
quantity OF them so to avert the pressure which
had suddenly and Unexpectedly arisen. It might he
said, with very great fairness that the directors might
have toreseen the pressure and should have made
cail to put themselves in funds. (llear, hear)
That question was very anxiously distressed ten
days before tho stoppage but it was felt that in all
probability, If cali were made, it would diminish the
deposits more than tho call would bring in On the day
OF the soppagc every effort was made that could be
procure that assistance which was needed but
II was not TO be had He lamcnted that it had dcvovcd
on him to mako so painful statement, but IL was
correct onc-tcheers)-and having made IL he would
leave further explanations to the lqnidators. loud and
prolonged cheers)
A silARruoI DER asked who we're the members of the
old firm who had been transferred To the new.
The Gu rRMAN, from recollection said the vendors OF
tie old firm the following Samuel Gurney, OF
Carshaton; Henry Edmund Gurney, of Nutheld; David
Ward Chapman Robert Birkbcck, 65 Lombard street;
Daniel Gnrney, John Henry Gurncy and Francis a. Cur
beck The new directors were Mr Barclay, Mr.. Gibbs
and Mr.. Gordon.
A smrReroLprR askcd-Did the now directors look TO
the nature OF the guarantees they received from the old
directors and, they did not in what position did they
stand?
The 'n,rRn,v-The guarantee was that OF all the mem.
bcrs OF tho old firm Jointly and secerally.
Mr. Josts the solicitor 10 the company said the guar
antee was joint and several bond bndEg every anil
na OF the private OF the old firm for the liabilities
OF that firm.
Mr. RrsyIr, one OF the new directors said that the
Affairs af the old firm looked into most carefully
by the new board but impossible for ,hn new d.
rsctor to scruinze billie amounting = 900 COO and
If accountant had been called in az the TINE u soad
hdvc eypocd the busiaess 9 Oceread Garney aad cas-
detrrc ir
A sn,Rgno1,En-H ougat b here Jec, Z paad
MI REsME did not say the new directors were Tree
from blame but he felt that in taking the old
confidence in the statements Of 0verand, Quincy 4
Co. When the property OF the old directors about
to be realized lss January C y brought dcred On ne
half months % that the shareholders need not be sur
prscd at the collapse
Mr. JAWS sp.RKs Of Bnry g. Fdmunds asked
whether the bond guarantee of the old directors
Mr. JoNgs said he was happy 10 he ahic 10 answer in
vate estates or those gentlemen had been carried 10 the
credit o. The company Applanse ,...,..,....
tory. Hear hear
Mr. bAnpisG, accountant said .ha, The operations OF
the company had been all through of very hopeful
character, and that proved by the small number OF
commercial bills which had been returned. Hear,
hear) The position Of the company last Saturday
was az foliows.-Thcro was 2l3 in tho bank.
Since the 10th of May, tho date OF the stoipag",
the Liabilities hal been reduced oy bills paid on
Ga COO 600. Cheers The amount Of bills returned
paid subsequent to the stoppago was t.si6s0a 10. ID
He had gone through the rest Of those bills aud lie
sldered that considerable portion Of them would be paid
within reasonable time. He estimated that the amount
OF liabilities paid between the present time aud the 3lst
cf August next would be es 1853 ao3 lis Id afcr the
3lst oil August there would he left fl $40 los
that that day they would know the actual position OF
the company Tho estimated yalue OF the guarantee was
fl $50 600 for which the Joint aud several estates OF tho
old nrm were liable and he SAID that after going very
carefully into the matter Cheers
Mr. LrcAs moved the following resolution THAT IL
has been proved 10 the satisfaction of this meeting that
overend Gurncy 4 Co lmited) cannot, by reason Of
their Liabilities continue their business and that IL Is
the supervision or the court and that Messs rrquand
and Harding be hereby appointed lqu da'ors'
Nj LAWRENCE advocated q voluntary winding up
Mr. H'hRr in scconding the motion, regretted the
mismanagemcnt which had brought about such state
OF affairs but at the same time he was sorry TO see is
old trends the ifm in such poston-they who were
ever ready 10 give helping hand to those who wanted
IL Chccrsl There was no use going into bygnncs,
trying 20 hit upon weak pont-(hear, hear-as the
future was what was now TO be looked to- tHen hear
Mr.. KNoscoTT, as one Of tho committee appointed to
report upon question OF the Of the
pany ad that no doubt very large profit was being
made by the company while operating and a very mag
that although some OF the prestige OF the company
gone, such business could be conducted as would re-
the property. The majority OF the depositora how
ever against the resuscitation Of the company.
Mr. UspoRs. spoke in favor OF speedy realization of
the Assets and the issue OF certificates Of indebtedness
which would be transferable and negotiable in business.
Mr. SrsRKE asked whether it was true that certn
OF Indebtedness would be issued 10 the depos tors
A GENTLEMAN connected with the iqudaton said that
the machinery already in motion for issuing these
certificates Hear, hearl " the resolution adopting
voluntary liquidation passed the creditors depo
stors would be communicated with, and, II they agreed
to certificates they would be sent them In the
IL n few posts for the amount OF their debts with
interest to the 10th Of May, and their claims would be
registered for that amount lApplause)
Mr. CRzriE in favor Of carrying on the business
at The time that the liquidation was being proceeded
with. II that done tho.crcdors would have their
share In tho magnificent Of f2i0 600 year and
ten years would receive their twenty shprs IN the
pound. Overcnd, Gurney Co were still worthy of the
confidence OF their creditors Hear, bcar.l
SuAHEHotDrrl from Norfolk, said that Gurney' Rank
in Norwich stood as high in the estimation OF the public
as any banking concern could