New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-02-11

main business was "the legitimate OF a build
Ing society" In point OF fact though this contin-
uel 10 be, up to the very OF the smash, the
Keynote Of all the published statements. the bulk
of the transactions had become of a widely
different character In 1875 another associa-
ton was Matched. the Lands Allotment Com
pany,' with practically the same directorate and
Jabez Spencer Balfour the controlling genius.
The relations between these were extensive and
peculiar; In five years the Liberator had financed
the 'other two to the extent OF $o.oo0; its share
holders and depositors knew little. II anything. Of
the state OF affairs. while. according the exam
nation In the bankruptcy Court, It's leading direc-
tors and officials equally innocent OF all knowl-
edge-the one thing in which they all agreed being
implicit and unlimited confidence in "Mr. Balfour.'
From this period onward there a regular
succession Of new companies 1t has been well said
that the secret OF Balfourian finance was. when
IN difhcu.ty start a new company" Thus there
followed in succession Hobbs & Co.. the London
and General Bank, the Building Securities Com
pany. George Newman & Co.. the Real Estates
Company. and the Sheringham Development Com
piny. In most OF these concerns there reg
nlarly paid dividend of 3 per cent 10 the share
ness OF the financing was never surpassed. Bafour
Hobbs. a man in comparatively small way Of
business Vn sE IN by ana member or the House and
Hobbs that In 1885. when he practically inso-
Ten ne 9Wea the nera5Gr S and The Bulb
were successfully started to take up the concern
CONSTRUCTED those huge blocks. the Whitehall Court
on on tie Thames embankment; Hyde Park Court
and ,others-this limited concern was indebted to
the liberstor to the extent Of sl0is5co From lss.
forward there was no choice but TO make fresh and
ever-fresh advances to Hobbs. and the parent COM
pany had 10 forego its claims and negotiate first,
second and third mortgages in front OF its own.
The system on which this was done was simplicity
Itself Each new company took OF the
Liabilities OF the old ones. and these put down
as so many successful transactions severally yield
ing a handsome profit and splendid security-or. IS
TIE phrase went "a large and noble property"-to
the l.iberator.
Apart from these Transactions 1.-THE Balfour
Group were financing properties of a less
speculative character ali over the country There
were the nfori, the Tllbury and the Romford es-
tates, Meersbrook Park the Billiter-st property,
the Hockey Hall Colliery and sundry chemical
works. All these involved scores of thousands %
pounds, paid apparently with a magnificent disre-
on an equally liberal scale The sum of s2S5 eo was
allowed 10 "A Mr. Kenyon Benham. who alleged that
lost On the Underground RAILWAY but never Legally
proved Richard Kenyon Benham and Albert BEN
including fOr y Of h w nTs are
terms or fourteen and five years penal servitude.
space would fail to tell OF the manner in which
tne l$altour Group financed Newman another pro-
into limited company. Newman has been sen.
fenced to tve years, Hobbs to twelve years and
mixed up with all these proceedings 10 twelve
years penal servitude. Though disaster followed
these concerns from first to last dividends were al
ways found in the new subscriptions and DEPOSITS
and directors remuneration never failed Under
ne latter head Jabez Bafour and his colleagues d.
nles total OF sS92.7'o The total amount OF ruin
prorsnt upon investors through the final crash may
SS05325, and depositors. $s26l 400; Lands Allotment
SaRay trust stpal sSSssrsed xs House and
sl s; 20; Building Securities Company capital SUBJ
s SCRIBE . slSSS'5 and Hobbs Co capital SUBJ
scribed S5oSlO. These aggregate 500 2S9 40 a colos.
sal sum; But there various other items which,
~, a az, s would bring 1t up to nearly or quite