The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-12-15

The story OF 0verend, Quincy Co, told by OF
In many an impoverished household in this kingdom it
will be read with feelings into which indignation and
pared. notwthstaneins much that calls for commits
seration, to say that such feelings without
warrant in the facts before u.s. The foundation Of the
great establishment the fall OF which has shaken the
financial world, laid in the last century, and for
fifty at least business conducted with extra
ordinary success reputation and profit. The trans
actions OF the house were stupcndous At one
tme il used to be said that couple of millions passed
partners wore on scale Commensurate With the extent
of the trade The Gurneys became one OF the richest
mercantile families in England and the renown Of their
wealth combined with signal responsibility OF char
acer and position. So TOO things continued with them
until the year 1857, after which period new manage
ment, under a new system, introduced the decline
recently consummaed in most appalling ruin. One Of
the partners under whose superintendent the affairs Of
the house had so marvelousy prospered died In 1855
another retired in the year following Their
appear almost at once to have entered description
Of business known in later days rs financing" They
made enormous advances to adventurous customers
exceptional securities, until at length immense
amount OF capital was placed in jeopardy.
However, the partners divided more
money, although the Invisible amount had actually
ragged for the five years ending with $780, less than
f1o0 900 per annum We hnd therefore, that the great
firm Of Overend, Quincy Co. reduced, long ago
1881, TO suspension of dividends among themselves
in order that fund might be provided In compensation
Tor losses incurred But this proceeding insufficient
for the purpose and We are brought TO tine second
chapter Of the story.
The house in Lombard street was seriously shaken
large amount Of its assets locked up heavy losses
had been experienced, and more might be apprehended
At this therefore was considered saws Mr.
J. II. Quincy, desirable that the business should be
strengthened by fresh capital and 1t also de-
termined that the mode Of accomplishing that object
should be by the formation OF Joint Stock Company
Q.imted which might take over the whole assets and
liabilities .of the arn.n This project was accord
ingly carried out, and in it the irst step Of
course TO ascertain by what figures these assets and
Liabilities were respectively represented To do the
old partners justice We can discern no suppression Of the
ing directors OF the new concern. II was found and
confessed that certain balances OF the aggregate
amount Of "a 100 900 due to the old firm, aggregate
loss OF than ca III 900 DO anticipated
Besides this the Arm Ind become surety for other parties
in transactions though these RISKS at the time
w hand. The question what the Old hrm 10 do
for the new limited company with respect to these
ugly accounts, and IL agreed that all the private
estates and saleahle property Of the old partners
should be held liable for the sum-. On this footing
the now company Of Ovcrend, Quincy Co. tlimitcd)
established in August 1895 the articles OF the nogo
tiation being contained and expressed in separate
a r . ho new INC
f50000 purchase money the other provided for the
liquidation Of the exceptional accounts at the private
expense OF the old partners before described But
when tho public invited to find capital for the
concern, the FIRST half only Of these negotiations
veaed 70 them The subscribers the fresh capital OF
fJ, 900 knew nothing Of the proceedings by which
the old capital had been squaudered or Of the arrange
ments by which the losses were to be made good
We think the public was hardly used In the sale
and transfer OF the business the old firm appears ~
have acted with honesty and though Us estimate Of So
curitics not have been realzsd that kind OF dis
appointment cannot be thought surprising Indeed, in
the whole crash, there greater victims than tho
Gurneys They havA been sold 70 the last stick and
stone and ono Of the chief houses Of our mercantile
arsiocracy has been utterly ruined. How il could
should commit ess competent hands tho
manage nent CT business which their all involved
cannot understand but that Is not question Of pub
lie interest II must rather be asked whether there
good justification for the invitation given to the public
by those managers OF the company, who knew the
history Of the old firm. When people all over the
country-ladie9.
asked 10 embark their savings in the establishment
tboy COULD not have suspected the real truth Of tho
affair They supposed themselves 10 be strength
cnins" shattered concern by fresh capital
drawn from their little boards They believed them
selves 10 30 entering into participation In the large and
well established profits OF approved and stable house,
and cannot how II il to be deDied that their sub
scrptoDs were given under misrepresentation of the
truth or il will said that TO have published
tho second deed and dvulged the history Of the firm
Tor the ve years previous would have been iaa 70 me
assumes that II the public had known what they were
doing they would never have done H. The new direc
tors no doubt concluded that they had balanced the
liabilities Of the old firm by the private property OF the
old partners which had been assigned to them,
aud then assumed that the ordinary profits OF
the business would yield very handsome revenue
available for dividend Ta,s whoe question Of prcdn
APPEARS 70 rs otsssrs nor eon 'oe vel pnderand p'aa
The net gains n e firm for The five ysnrs precedng
hc transfer. Apart, however from this point, on which
tho new directors may be supposed TO have informed
themselves II n certainly unfortunate. as events have
happened that very much should have been disguised
bargain which the unslspectng public was Invited
70 share, and ths fart alone IL enough 70 Explain
the dstrust and aversion with which all such
investments are now regarded. Who after this pre-
cedent himself that behind an attractive
prospectus there may not lie few secret articles Affect
Ing the complexion OF the whole anairf Who can tell
that the directors OF submitted with apparent
confidence TO his appreciation may not be oognizant OF
circumstances which IL openly known. would deter him
from the bargain The assumed EXCUSE Of commercial
necessity good far goes. viii carry very little
consolation to ruined investor In this case the
public askcd contribute capital OF no less than
f5, 900 O00 In 100000 ESQ shares and as on each Of
these shares f3S left unpaid, the liability OF the sub
scrbcrs virtually unlimited, az " Ia now, indeed.
but too painfully N 10 te Into this terrible risk the
Subscribers practically went bndfod and N u said,
said II may be- that except with this reticcnce the new