New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1869-01-27
OyEREYD GURNEY q Co.. LIMITED"

ODEKEND, u UhhBI az tO'' LiMAfH|N'
The fnanciers of Wall-st. and OF the Eric
and Central Railways may learn a new lesson
if they are not already practicing 1t, ID inc
sublime art of quilting the public, from the lacts
developed by the examination, before the
Court of Queens Bench at London, into the
charge of conspiracy made against Six OF the
Directors of Overend, Quincy 81 Co. Qimited).
The old firm of 0verend, Quincy g. Go.
achieved great reputation as bill brokers'
money lenders, guaIantors, bankers, and as a
sort of private Credit MobiIler for assuming
the risk of heavy contracts and undertakings
of all kinds. For the years Immediately pre-
ceding their failure they divided among their
partners some G19O0OO (or nearly $1,OOOOOO) per
year in the profits" of a business that was all
the while hopelessly insolvent Mr. Oswald
Howell, an accountant appointed by the Court
of Chancery TO investigate the accounts both
of the old firm and Of the limited company,
shows that most of these net profits arose from
calculating the interest on their Dad ueOts'
Even after the firm failed, and Its assets
passed into the hands of the company
organized to purchase them they exhibited
an apparent profit" of E22O,OOO III nine
months, by computing the interest on Dad
debts as profits. 1t seems amazing that
the credulity of "financiers." is equal to the
task of extending confidence to such sharpers.
Yet it is gratifying to find that in England
these sharpers sometimes find their way into
Police Court. Here they operate only IN the
Civil Courts, where they have a better stand
ing than honest men.
1t also appears that, in 1865, the firm oil
Oyerend, Quincy g. Co. was known by its
members TO be hopelcssly insolyent, owing
f24, 500 900, and having assets amounting to
only G9i, 100000, leaving net deficiency OF
ca 800 OOO But they succeeded in selling out
this deficiency to a new stock company with
capital of 100000, of which the old firm
received One-sixth for the good WILL" ana
two of the members in addition were secured
salaries Of $4,000 each to conduct the new
business, under the name of "Overend, Gurney
:" g. Co., limited" The public were invited to
subscribe TO the f5000,000 of capital stock OF
the new company, which consisted OF lOO,oVO
shares of ESQ EACH of which 1865 shares
were given to the members of the old hrm, ana
the remaining 1884 shares were all sold III the
market 10 the confding British public at
slight premium. The Smart directors OF the
new firm, Mr.. Henry Edmund Quincy and
John Henry Quincy, continued to draw their
salaries out of the cash paid in for the shares
sold. and to certify handsome premiums to the
deluded shareholders. by charging up the inter
est on their losses as profits of the business.
II remains to be seen whether the English
Courts will be able to detect any irregularlty
in this mode of doing business. Should it be-
come necessary for 0verend, Quincy Co.,
Qimited,) to retire from business in London, and
should the Government have no lien on their
personal liberties, we think of one or two rail
roads in this country which will shortly need
Presidents, and certainly no more eligible sue
cessors could be found than this firm would
annnlv