The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1866-06-27
THE MONEY CRISIS.
Meeting of Messrs. OVereBd, GuFney e.
COmpaDy's Creators.

from the London Star, June IL.
meeting of the shaTeho hare iers Of Messrs oyerend
Tavern, and was very numerously attended. The
chair was occupied by Mr.. John Henry GurneY.
The report of the IquIdatOrs, wh.ch has already
appeared, was presented TO the meeting.
The Chairman SAID he was certain the meeting
gave his colleagues and himself credit for the eX-
ceed ng sorrow which they tet at meeting those
present under circumstances so different from those
which had been confidently anticipated That
anticipation was shared Uy himself and his
leagues up 10 a very recent period -
With respect to the affairs OF the late company,
VIII ch were turned over to the new concern they
subjected at the time to the closest eXamna.
easy to form just estimate OF the value OF so enor'
nous a business After several weeks OF arduous
labor the directors came to the conclusion that there
was such property in the business as rendered o
guaraLt tee t. cover any losses; but those eXpecta.
tons had been lamentably frustrated, and TO an
extent which took them altogether by surprise He
thought II possible that IN some items on when
their calculations had been made they were too
gupe. at the time the company wss 1oImed the
minimum rate OF the Bank OF Eng aud was three per
cent, and there was no reason to apprehend the
high rates of interest which ensued
Referring to what had been given for the good
will OF the business there could be no doubt that
in Il management OF the last few years the old irm
had unfortunately embarked in certain transactions
out OF the epit mate line OF thei business, and that
these transactans, although productive In the first
instance OF great apparent profit, subsequen Iy
resulted in heavy losses. But 1t was also rtectly
true mat the circumstance of these transactIons
material extent with the sound and valuable regular
discount business whch Tor so many ears had
been carried on by the firm, and which, # adhered
to OF late years. would have prevented those losses
TO which he had alluded.
1t was for the sake of preserving that regular and
lucrative discount business that the company
was formed In estimating the profits OF the busI-
ness he and his colleagues eliminated the profits and
ness which the old firm had entered into, and winch
the new finn wished to avoid, and they thought
that f5OO,OOO for the goodwill was rather under
than over TWO and half years OF the regular profits
OF the business 1t was arranged that $500 900
should be paid Tor the goodwi, one-half to be paid
ha nf ho r Noly aka nF
| the new company. That arrangement was carried
out, and OF the f250 900 winch was to be taken IN
| shares, the moiety remaining unpaid at the period
dred shares.
voved the liquidation of the old company, the de.
posts turned over amounted to f5 100000 and the
eaolta, which was shortly paid up was FL 0e0 900,
OF The directors that II only ordinary times had
supervened, he lock up of $1,000 O0e could be safely
carried against The deposits and capital OF $4,000 600
bearing Ia m nd that 1t was expected that The lock-
| up would be OF a temporary charact r. and that il
would be rapidly reduced and run off within a
period of three and halt years Itwas not for hi m
perhaps, TO express any opinion on the matter; bu
his belief was that If toe times had not turned against
the liquidation it would have been successfully car
| ried out The fact was, when the shares fell into
the market the deposits were reduced to point
winch made the lookup exceedingly announcement
| and finally fatal.
With regardio the subsequent conduct of the busi
ness, he thought 1t due to those directors who
were not members OF the old firm to say that him
cou.d exceed their attention TO their duties aud
their anxiety TO transact business Of satIs acOry
character only. The fact was the directors of the
| new company undertook burden which proved
| mu;h heavier than they ever anticipated, and muc
heavier than 1t would have been but for the eXcep.
tonal state of things WI ich ensued, and that haC
ulquestionabl led to that collapse OF the COMPANY
and TO that widespread loss which II was scarcely
necessary for him TO refer to He would now br 'edJ
refer to the stoppage OF the company. Itwas Ger
taIny not the expectation Of the directors that The
stoppage would have taken place in the sudden
manner that It did short time previously
no such idea had crossed the minds of tn,
directors, but the TACT was, the strngencY
the money market had so operated as TO prevent
the use OF any bill except that OF drst.cias
Character, and Of the bills on hand not possI
Bile, on the pressure of the moment, to convert
sufficient quantity OF them 80 as TO avert the pres
sure which had suddenly and unex pectedlY arisen
lt might be said with very great fairness that th
directors might have fOreseen the pressure auC
should have made q call to put themselves in funds
Hear. hear That question was very anxiousy dis
cussed ten days before the stoppagei but was fel