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Title: Notebook “Trade and Finance 1869”. IV. The European Assurance Society, American safe deposit companies and the gold ring at New York, September–November 1869
Description: Newspaper cuttings pasted by Jenny Marx (daughter) for Marx into the notebook “Trade and Finance 1869”: letters and reports from the Daily News of September to November 1869 on schemes for reviving the Albert Life Assurance Company, the meetings of policy-holders, the winding-up proceedings against the European Assurance Society, American safe deposit companies, and the “gold ring” at New York.
Author: Karl Marx
Date: 1869-09
URL: https://marxismo.school/archivo/marx-engels/originales/1869%20Notebook%20%E2%80%9CTrade%20and%20Finance%201869%E2%80%9D.%20IV.%20The%20European%20Assurance%20Society%2C%20American%20safe%20deposit%20companies%20and%20the%20gold%20ring%20at%20New%20York%2C%20September%E2%80%93November%201869
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*Newspaper cuttings, from the manuscript, MEGAdigital (MEGA² IV/19).[^lic] [Traducción al español](https://marxismo.school/archivo/marx-engels/1869%20Cuaderno%20%C2%ABTrade%20and%20Finance%201869%C2%BB.%20IV.%20La%20European%20Assurance%20Society%2C%20las%20cajas%20de%20seguridad%20americanas%20y%20el%20%C2%ABanillo%20del%20oro%C2%BB%20de%20Nueva%20York%2C%20septiembre-noviembre%20de%201869)*

#### THE ALBERT ASSURANCE COMPANY.

##### TO THE EDITOR OF THE DAILY NEWS.

SIR,—Now that every morning’s post brings a scheme for the resuscitation of the Albert Assurance Company, it is desirable to remind the policy-holders of a few indisputable facts which must not be lost sight of in judging of the practicability of either of these proposals. In the first place, an order having been made for a compulsory winding up, every policy-holder, annuitant, and creditor is entitled to his dividend, or pro rata share of the assets of the company. Unless, therefore, the aggregate claims of all those who would stand upon this right are so insignificant as to admit of voluntary adjustment in such a manner as would enable the others to put a stop to proceedings under the winding up order, the assets of the company must be collected, and every legitimate means used for the purpose of bringing those assets together as speedily as possible. To this end—notwithstanding a willingness on the part of certain policy-holders to assist the directors in stifling inquiry—there must be a searching investigation into the past transactions of the company, especially with a view to test the continuing liability of the several companies absorbed by the Albert, and to recover some portion of the enormous sum of 274,000l. paid for the amalgamations. Every scheme, therefore, which ignores this inevitable consequence of the winding-up order draws its conclusion from premises which can never be brought face to face with the actual position of the company; and all such schemes are really undeserving of serious attention. Keeping this consequence in mind we have next to inquire whether the assets of the company are of such an amount, and so far within the reach of the liquidators, assisted by the machinery of the court, as to warrant an expectation that the share of those assets devolving upon any number of section of the general body willing to unite for the purpose would be sufficient to constitute a basis for the formation of a new mutual assurance company.

I have looked at this question from every point of view, and with a sincere desire to evolve a satisfactory answer—but the facts are too plain. Every proposal that has yet been put forward for a mutual assurance (without fresh subscribed capital) has been based upon a reduction of the amount already assured (varying, according to age, from 20 to 40 per cent.), and upon the continuance of the old premiums; that is to say, taking the average of such reduction at 25 per cent., each insurer would in future pay for a policy of 75l. what before he paid for one for 100l.; or, in other words, he would pay for the reduced policy one-third more than the proper premium, such addition being apparently intended to form a substitute for paid-up capital. If calculated on sound actuarial principles, this should be equivalent to re-insuring members at the rates proper to their actual ages. Obviously this offers no advantages above that of re-insuring in some well-established and secure office, except it be the saving do damaged lives of the payment for additional risk resulting from a change in their family or personal health bill. In this partial advantage, no doubt, a considerable section of the Albert policy-holders would participate; but it would be an element of danger to the new society, into which every member ought to enter after re-examination and paying for any extra risk. Before enumerating the disadvantage of joining the resuscitated company, allowance must be made for the claims of annuitants and general creditors, which are stated to amount to about 250,000l. The reservation of a proportionate dividend, therefore, say of ten per cent., would reduce the estimated assets of 300,000l. to about 275,000l. Provision would also have to be made for the large amount of policies that will have fallen in since the stoppage of the company, and before any scheme for reorganisation can be matured. But, adopting the most favourable calculation on behalf of the reuniting body of policy-holders, we will base our argument upon the assumption that the new company might even reckon upon eleven-twelfths of the entire assets, or 275,000l., and suffer no material defection on the part of the younger lives, whose adhesion would be absolutely essential to the vitality of the scheme. In thus forecasting contingencies, we shall have endorsed the most sanguine view that any actuary has hitherto taken of the actual position of the old company’s affairs. The mutual assurers would, nevertheless, labour under the most serious disadvantages. First, the company would be of damaged character, and so less able to secure new business. Secondly, it would contain many bad lives and a preponderance of old lives, the former not paying for their risks. Thirdly, and above all, it would have but 275,000l., and that not in hand, to meet the claims of six millions of policies (the reduced amount). Supplement this with the fact that during the last few years the annual claims from deaths have amounted to five-sixths of the entire income of the company, and the prospect for the survivors of the first year’s existence of such a resuscitated company may be read at a glance. The claims paid in 1868, after deducting 18,500l. for annuities, amounted to 263,000l. In short, it is manifest that with the assets so small and the claims so enormous, any reorganisation without a large fresh capital actually paid up, can offer to the policy-holders no solid or substantial advantage whatsoever above that which would attend a reinsurance in any sound office already existing.

As to feasibility of forming such a combination, it must be remembered that the policy-holders are scattered over all parts of the globe, and even if all stood upon an equal footing with regard to rights and remedies, it is highly improbable that any such number could be brought together as would be willing—or if willing as would suffice—by united action to form a secure mutual assurance. A great deal has been said about the “good-will” of the company’s business, and the very persons who, besides squandering all the paid-up capital, have well-nigh dissipated the entire the income of the company from 1838 to 1869, are now pleased to claim a good-will in the future premiums of the policy-holders, and to calculate their value as an asset of the company. The fallacy is so palpable that it scarcely deserves exposure. This utterly bankrupt company, whose shareholders the official liquidator assures us cannot pay six and eightpence in the pound upon the uncalled capital, has no “good-will” to be disposed of for the benefit of its creditors, the policy-holders—save that which may attach to its ruined name, or to the premises in Waterloo-place, where it earned its evil repute. The goodwill of every policy, or, to speak more correctly, the value of every future premium, belongs to the assured; and there is nothing to prevent any number or any section of the policy-holders from combining for their common advantage, and taking their policies over to any office willing to assist them. The various equities involved in the several amalgamations with the Albert Company will necessarily have the effect of separating the policy-holders into different sections, each having its peculiar interests, the pursuit of which through the mazes of the Court of Chancery might or might not operate for the benefit of the general body. It is in view of those possibly divergent interests, and of the impracticability of any united action on the part of the general body, that I would advise each policy-holder to make the most of what his dividend may yield him for investment or future insurance, and to place his future premiums beyond the risks attending calculations not of what is, but of what may be; and I would also venture to recommend each section of the policy-holders who have claims upon the absorbed company in which they were originally insured to unite its forces for securing the best means of escape.—I am, &c.,

P. H. EDLIN. Sept. 25.

#### THE EUROPEAN ASSURANCE SOCIETY.

A meeting of policy-holders in the Royal Naval, Military, and East India Life Assurance Society, which was amalgamated with the European Society about three years ago, was held yesterday afternoon at Grindlay’s Rooms, Parliament-street; Mr. S. F. Low in the chair.

The CHAIRMAN, after reading the proposal of amalgamation, dated August 18, 1866, said that their object in meeting together was not to become “wreckers” of the European Society, but simply with a view to self-protection. They wanted to know their position with reference to the European as policy-holders in the Royal Naval and Military Society, and then to ascertain whether they had better go on with the old office than remain with the new one. Petitions had been presented for winding up the affairs of the European, and the directors had issued a circular showing that there was no occasion for it. The press had commented upon the affairs of the society as shown in its balance-sheets, and the policy-holders as business men could also form their opinion from those balance-sheets, whether it would be best to support or oppose the directors of the European. It would be a matter for inquiry whether the late Naval and Military Society had the power to transfer their interests, and whether the policy-holders should attack the position of the directors. Applications had been made to the European to surrender policies, and a letter had been received, dated September 20, declining, in the interest of the general body of policy-holders, for the represent to purchase more policies. He (the Chairman) had looked upon that as tantamount to an admission of bankruptcy. After consulting with their solicitors, it had been thought best not to add to the difficulties of the European Society. The meeting would have to consider whether they should take steps for winding up the affairs of the Naval and Military Society, or confer with the directors in order to resuscitate it. He did not think its policy-holders would suffer, as they had no power by their deed to amalgamate with any other office.

Captain JONES, a policy-holder, and also a director of the European, said that the late Naval and Military Society was wound up voluntarily.

Mr. GREY moved a resolution to the effect that no steps should be taken in connection with the directors of the European Society.

Mr. CLARKE said that it would be useless to waste time and money in watching the proceedings in Chancery. With reference to what had been said by Captain Jones, he could say that the shareholders of the Naval and Military were liable to the full extent of their liabilities, and that winding up by shareholders could not affect the policy-holders. Nothing could be done until the deed of amalgamation had been seen and the decision of the Court of Chancery given. At the suggestion of the Chairman, the resolution was altered to the following:—“That this meeting be adjourned for a week, and that a committee of three policy-holders be appointed in order to obtain the facts of the Naval and Military Society.”

Mr. PYKE, solicitor, said the European directors were the custodians of all the documents, including the deed of amalgamation, and that they had refused to give any information.

Captain JONES, in reply to the Chairman, said that when the application had been made the officials and documents were at the Vice-Chancellor’s Court under examination. He did not think the chairman or directors of the European would refuse to grant every facility for examination of the deed and other documents. The petitions in Chancery had been filed by shareholders who were not able to pay their calls, and who had been taken in hand by some parties, and had been led to present these petitions. The guarantee business of the European amounted to 50,000l., and the clear profits on it of 22,000l., which in itself ought to be able to cover the whole expenses of the life department. The office had an income of 300,000l. a year, and taking the claims upon it to amount even to 200,000l. a year, there was a profit left of 100,000l. a year, which was sufficient to place the company, in a few years, in the position of one of the largest companies in England. The company was perfectly able to meet every claim as it fell due, and they had now a very good margin of young lives.

Mr. DENIS WALKER (actuary of the European) said every claim on the European could be met as it came due, and the company could call up capital, by calls upon the shareholders, to the extent of 500,000l. It had acquired within a few years 2,000,000l. of insurance. In a short time the American business would be withdrawn, as the American Government would not permit them to transact other business than life assurance; consequently there would be the whole of the American funds to be received. He believed that the petition in Chancery would be dismissed, on the ground that the European had ample funds to meet all claims as they should fall due.

The CHAIRMAN asked how it was that the letter he now preferred to was issued on the 20th September, before the petition was filed.

Captain JONES explained that in consequence of the Albert Company’s troubles, and the fact that rumours had been circulated with respect to the European, a large number of holders had applied to surrender their policies, but that the directors, in order to prevent a run upon the funds, declined, for the present, to purchase any beyond the 20th September.

Captain OMMANNEY said that the small amount which the directors gave for a surrendered policy, as in a case which he instanced, made him think the company was not in a solvent state. It could not be perfectly solvent, he thought, with the small amount they had to meet policies to the extent of 8,000,000l. The point to be looked at, however, was the position of the Naval and Military Society, whose directors had amalgamated with the European without a single word being said to the policy-holders on the matter.

In reply to the Chairman,

Captain JONES said that, so far as he was concerned personally, and he thought he was also speaking the opinion of his brother directors, and of Sir F. Smith, the chairman of the European, every facility should be given to a committee appointed to inquire into the circumstances of the Naval and Military Society.

Upon the motion of Mr. PILLEAU, a committee consisting of the chairman, Captain Ommanney, and Mr. Clarke, was appointed, and the meeting was adjourned until Monday next.

* * *

A meeting of policy- European Assurance Society was held on Saturday in Dublin, Mr. J. H. Owen, C. E., architect to the Board of Works, presiding. The Chairman said that the object of calling that meeting had been simply to form a body possessing the confidence of the policy-holders to represent them, to obtain information, and to assist in the proceedings which were about to be taken in England. He animadverted strongly on the statements made by the chairman, manager, and officers of the company, regarding the flourishing prospects of the company, and said that the facts disclosed a gross amount of carelessness, if not something else. Resolutions in support of the object of the meeting were adopted.

#### DEFAULTING ASSURANCE COMPANIES.

##### (From the Solicitors’ Journal.)

Close on the fall of the Albert Assurance Company is announced to follow that of the European Assurance Society. The application to wind up this company was made before Vice-Chancellor James on Wednesday, and the petitions (two in number) stand over to be heard, in court this day week, at half-past ten a.m. It is rather significant that, a little more than a year ago, the European Assurance Society was the subject of a very disagreeable scandal in Ireland, in consequence of conduct which the Lord Chief Justice stigmatised as “embarrassing, evasive, and unsatisfactory,” in resisting the payment of a genuine claim. In that case a writ was at length issued against Sir Frederick Smith, K. H., F. R. S., the chairman, to enforce payment. After severely condemning the conduct of the defence, the court exonerated Sir. F. Smith form blame, believing him to have been ignorant of the abuse which had been made of his name. Like the Albert, the European is the result of an enormous number of amalgamations, having absorbed since 1859 no less than thirty-three other companies. The effect of such “amalgamations” upon shareholders and policy-holders respectively is just now exciting a good deal of attention. As to the shareholders in the companies which were swallowed up one after another, their rights to decline the change originally would depend upon the deeds of settlement of their own companies. As Vice-Chancellor Wood observed in “Re Empire Assurance Corporation, ex parte Bagshaw” (15 W. R. 889, L. R. 4 Eq. 347), it might be that the directors were authorised to hand over all the assets to the other company, leaving the objecting shareholders to lose their money simply, or it might be that the objecting shareholders could claim to be paid off, or the arrangement might be ultra vires. But it could not be that the objecting shareholders should be bound to accept the arrangement and become contributories of the new company. The Vice-Chancellor confessed that he had not the least conception what might be the full legal effect of the word “amalgamate”; but, at any rate, he said it was not a word by which people, having subscribed to company A., were inevitably bound to become subscribers to company B. And if, after the “amalgamation,” the shareholder in the swallowed company took simply no steps at all, he “simply became no shareholder in the consolidated company” (“Higg’s case,” 13 W. R. 937). Probably in the majority of instances the shareholder accepted a status in the latter company, but in either case it would not be very difficult to determine the whether or no. As to the policy-holders there may be more difficulty. It is customary where an “amalgamation” takes place between two assurance societies to get the assured to adopt the consolidated one by accepting a new policy. Where that has not been done there may be a serious question as to what quarter the assured may be entitled to look for payment of their claims. Pending the Vice-Chancellor’s decision upon the European petition, we shall not enter into the details of the case. If the failure of the Albert demonstrated the necessity for Government interference in the audit of insurance companies’ accounts, the difficulties of the European afford about as strong a corroboration as could be imagined. Few will dispute this when it is stated that this society lately withdrew from business in the United States, where the system of public supervision is in full force.

#### THE ALBERT ASSURANCE COMPANY.

The first of a series of meetings of policy-holders in the Albert Assurance Company (to be held in various districts), called under an order of the Vice-Chancellor, to consider the best means for the arrangement of the affairs of the company, was held in Manchester yesterday. Mr. S. Lowell Price (the provisional official liquidator of the company), Mr. A. R. Kirby (the present manager), and Mr. Lewis, of the firm of Lewis, Munns, Nunn, and Longden, solicitors to the company, were present. There was a large attendance of policy-holders, and the proceedings, which were protracted over three and a half hours, were very excited and noisy. The first two hours were occupied by the liquidators and Mr. Lewis answering questions addressed to them by the policy-holders. There appeared little, if any, readiness on the part of the policy-holders to suggest any course of action, and the general feeling appeared to be in favour of an adjournment. It was pointed out, however, that the adoption of this course was impossible, inasmuch as by the Vice-Chancellor’s order the answer of the policy-holders is returnable on the 10th inst. Ultimately Mr. Lewis, on the part of the liquidators, suggested that the following resolution should be adopted:—“That (without prejudice to such further investigation into the state and transactions of the Albert Life Assurance Company as may be necessary) this meeting of policy-holders and claimants approves generally of the plan of arrangement of the affairs of the company proposed by the provisional official liquidators, and recommends the same for acceptance, subject to such modifications thereof as may from time to time be sanctioned by the Court.” Mr. Lewis said that the liquidators could not propose this resolution themselves, but they submitted it to the policy-holders as the best means of relieving themselves from the difficulty in which they were at present placed.

Mr. HALSE, solicitor, London, moved:—“That in lieu of the scheme proposed by the provisional liquidators, it is desirable that negotiations be opened with an established insurance office of standing, or that a mutual society be formed for taking over the Albert policies and annuities, and it being admitted that the assets of the Albert Company are wholly insufficient to meet the claims of their policy-holders and annuitants, the Vice-Chancellor be requested to place the carriage of the proceedings for compulsory winding-up in the hands of liquidators, to be nominated on behalf of the original and amalgamated policy-holders and annuitants.” This motion was seconded, and for some time appeared to gain the support of the meeting; but, in opposition, it was pointed out that the expenses of a compulsory winding-up would be much greater, without conferring any greater advantage upon the policy-holders, than a voluntary winding up under the supervision of the Court of Chancery. Mr. Challoner, London, moved, “That a committee, consisting of the four largest policy-holders in Manchester, or four policy-holders to be nominated by them respectively, with the addition of three policy-holders to be named at this meeting, be appointed to consider the circumstances of the society and the proposition made, and what course it will be most beneficial to take in the interest of the policy-holders, and to report to a future meeting.” The course proposed in the last motion appeared to meet with general approbation, with the exception that a large number of policy-holders objected to the constituents of the proposed committee, and ultimately the following resolution was adopted by a large majority:—“That in the opinion of this meeting it is advisable that a committee of policy-holders be appointed to confer with the liquidators, to consider what is best to be done in the interests of the policy-holders.” Six gentlemen were then nominated.

The following resolution was also unanimously agreed to, and ordered to be advertised in the London and leading provincial newspapers:—“That this meeting of policy-holders of the Albert Insurance Company, resident in Manchester and district, feels bound to express its opinion that for several years past the management of the company in London has been conducted in a most reckless and extravagant manner, and seeing that since 1862, the losses have amounted to nearly 1,250,000l., they cannot but censure, in the strongest possible manner, the board of directors, and especially the late and present manager; nor will it have any confidence whatever in the liquidation of the affairs of the said company as long as Mr. Kirby remains in the position of joint liquidator. Further, it hopes that every means available will be used to bring to a proper tribunal the guilty parties in the said reckless extravagance.”

#### THE EUROPEAN ASSURANCE SOCIETY.

At Vice-Chancellor James’s Chambers yesterday Mr. Lording (of the firm Freshfield and Co.) made an application to Mr. Bloxam, the chief clerk, to have the order made on Wednesday last by Vice-Chancellor James signed. The undertaking of the directors was that they should keep a separate account of all monies paid into their hands, and give all persons so paying an indemnity for the same.

The Chief Clerk said he must know who the directors were.

Mr. Lording said he had the names of the whole of the directors—except two—Mr. Crawford and Mr. Hayward.

The Chief Clerk, being answered that there was no appearance by the directors, said he would give them till 2 o’clock to hear anything on their behalf.

In the interval elapsing the representative of the official liquidator stated that he wished, through the reporters, to make public that the number of letters sent to the Judges’ Chambers by policy-holders and others, asking the assistance of the judge or his chief clerk, were of no use being sent in that way, and that policy-holders and others ought to put themselves in communication with the provisional liquidator. In this the Chief Clerk acquiesced.

Mr. W. Moon said he represented various policy-holders in the European Society, and before paying the premiums he would like some authority for their doing so.

The Chief Clerk said in the order the company gave an undertaking to carry the premiums paid to a separate account. The premiums would be returned in case of the company not being resuscitated.

The time having lapsed for some one on behalf of the directors appearing to show why their names should not be attached to the Vice-Chancellor’s order giving an undertaking about the separate account.

Mr. Lording said he could produce the books showing the directors’ names; and it would have been an easy matter for them to have appeared if they had been so minded.

Some time afterwards the Chief Clerk duly signed the order, attaching the following directors, leaving out Messrs. Crawford and Hayward:—General Sir Frederick Smith, George Frederick Anderson, Edward Hamilton Anson, George Bermingham, Henry Deffell, James Furnell, Robert Wallen Jones, Lord George Gordon Lennox, M.P., Robert Norton, M. D., Admiral Michael Quin, and Reginald Read.

* * *

#### THE ALBERT ASSURANCE COMPANY.—

At the Chancery Chambers, yesterday, two summonses appeared in the list of vacation business before Mr. Bloxam, the chief clerk of Vice-Chancellor James, in reference to the affairs of the Albert Life Assurance Company. One was respecting a scheme to be put forth to prevent the winding-up order being carried out, and the other was in regard to the payment of premiums by the policy-holders. The second summons was by anticipation in effect granted by Vice-Chancellor James on Wednesday last: The first-mentioned summons as to the scheme to get rid of the winding-up of the company stands over until Tuesday next. Other proposals are expected to be put before the public to take the case out of court.

#### AMERICAN SAFE DEPOSIT COMPANIES.

##### (FROM OUR SPECIAL CORESPONDENT.)

NEW YORK, SEPT. 4.

I have been very much struck by a story on which the Daily News received by the last mail bases a leading article, of a man in England who, having no place of security in which to place his bonds or other valuable papers, carried them with him in a carpet bag when he went on a summer tour, and consequently lost them. Even the resource hitherto offered to possessors of valuables by bankers’ vaults has, it seems, been cut off or rendered unsafe by the recent decision pronouncing bankers not liable for the loss of securities which they have simply taken charge of as a favour to their customers. Now, people here have been suffering seriously from this same difficulty for several years back; but they have, I believe, found a remedy as nearly perfect as anything that can be devised, and it may be interesting to your readers to have it described. It was, until three or four years ago, the custom here, as in England—indeed it may be said to be still the prevailing custom—to keep these valuable papers in boxes in bankers’ vaults. But, then, the banker gives no receipt for them, and is not responsible for them in case they are lost through other causes than gross negligence. If his safe should be entered by burglars, or robbed by dishonest employés of his own, the unhappy owner of the valuable deposited with him for safe keeping has to put up with the loss as best he may. The defects of the arrangement have not, however, been seriously felt until within the last nine or ten years. During that period government bonds, railroad bonds, and other negotiable securities have multiplied enormously—partly owing to the creation of the public debt, and partly to the great and rapid increase in the number of industrial enterprises. Railroads, for instance, were formerly constructed by means of subscriptions to the stock of the companies. They are now mostly constructed, wholly or in great part, by the sale of mortgage bonds—or debentures, I believe you call them—and these are almost as easily transferred as money itself, and are found now in the hands of large and small investors by the million all over the country; the larger portion being, of course, concentrated here in New York, as being the great financial centre and the principal seat of capital. Many people, of course, keep them at their banker’s; but them, as I have said, the banker is not responsible for them, and the bank vaults are accessible to many different persons, and it is troublesome and inconvenient to get things as frequently as one may require in a bank vault. Consequently a great many persons got into the habit of keeping their securities in their own iron safes in their offices; but here, as it turned out, they were far more exposed than anywhere else. For, in obedience to the great law of supply and demand, with the multiplication of bonds there arose a large band of thieves, specially devoted to the work of stealing bonds, and now well known to the public as a distinct profession called “bond robbers.” I think I am within bounds when I say that they have during the last seven years relieved the lawful owners in this city of transferable securities to the value of a million sterling. They have performed some very remarkable exploits in what is known as the “butcher’s cart game.” In that two or three confederates cruise along the streets, towards the opening or close of business hours, in a light butcher’s cart, with a fast trotting horse; they see a porter of clerk walking along with a tin box; perhaps they have watched him from his bank or counting house,—in the full confidence inspired by the presence of crowds of his fellow-citizens, and the presumptive nearness of the police. They drive rapidly up beside him; one of the gang descends, knocks him down by a smart blow in the eyes, perhaps peppers him profusely at the same moment, flings his box into the cart, and off they go at the rate of a mile in three minutes, and are out of sight before the bystanders have fairly begun to comprehend the nature of transaction. This has led of course to extra precautions, and now no clerk or porter goes to and fro in the streets alone with a box in his hand; he has a companion, and the two are apt to be armed.

But the thieves were not foiled. They followed the bonds into the offices and counting-houses, and some of their most tremendous strokes have actually been performed in the offices of bankers and brokers in the middle of the day, during business hours, and in the presence of the clerks. They go in couples, or trios, having of course previously reconnoitered the ground; one or two to distract attention by a pretence of business, while another calmly walks up to the safe, draws the securities from it, and goes out with them, the employés not noticing him. This may seem incredible, but it has been done over and over again. In the famous Lord case, two years ago, nearly, 300,000 dollars worth of Government bonds were taken out of an office in this way; and nearly a similar amount in the Royal Insurance Company’s case. In neither, I believe, was there the slightest proof or suspicion of complicity on the part of the clerks. Each was simply an illustration of the art of distracting attention, to which the success of so many jugglers’ tricks is due, carried to the highest point. Their boldness and dexterity were well illustrated in a case which came under my own knowledge a year ago. A friend who had been passing two years in Europe, on returning went to his bankers, and took out the tin box containing his whole fortune, and it was a tolerably large one, in Government bonds, some of which he had determined to convert into something else. He walked down to his broker’s, a few doors off, for this purpose, carrying the box in his hand, went down to the lower end of the office, put the box on the counter at his side, and leaning forward on his elbows, entered into conversation with the broker. He was followed in, however, by a bond robber, a young respectable-looking man, who went boldly up, removed the box, and walked slowly out with it, nobody noticing him, except a clerk near the door, who asked if that was his employer’s box, and was courteously informed “that it was the other gentleman’s.” When the hue and cry was raised he was out of sight, and my friend’s sensations—a young man recently married—during the first ten minutes afterwards may possibly be imagined. Happily the bonds were nearly all registered, and were consequently not transferable, so that the actual loss was, after all, very small. Some of these raids on the banks have been somewhat astounding, both for their magnitude and success, though in two of the worst cases they undoubtedly owed their success to gross carelessness on the part of the banks, in having no watch during the long interval between Saturday night and Monday morning. In one of these—that of the Ocean Bank, in this city—about three months ago, they entered the bank through a hole cut in the floor below, blew the safe open with powder, and took everything. They entered a savings bank in Philadelphia about the same time, in the same way, and with a somewhat similar result.

The general alarm and anxiety caused by this state of things called into existence what we call “Safe Deposit Companies,” of which nearly every large city has now two or three. There are two at least in New York. They are corporations, chartered by the State Legislature for the safe keeping of valuables, and offering as a guarantee to depositors unlimited liability on the part of the directors and stockholders. Of course it is a prime requisite that the directors should be men of high standing, both as regards wealth and character, and they are. I may take one, with the working of which I am personally acquainted, as a sample of all of them. Its premises are in the basement of a fire-proof building in Broadway, the offices occupying the front, and its vaults, all lined with iron, extending some distance back, with the usual defences in the shape of double iron gates, patent locks, and so forth. These vaults are pierced by three or four long passages, lighted with gas, and each of these passages are lined, from the floor up as high as a man can reach, with small iron safes or closets of various sizes, in which tin boxes containing valuables can be placed. These safes are rented only by the company, at prices varying from 2l. to 8l. a year, according to size; the hirer keeps the key, of which there is no duplicate, and over the key-hole lies another lock, or stopper, of which the company keeps the key. At night the gas is kept brilliantly lighted, rendering every part of the premises, including the passages in the vaults—for they are closed by gates, and not solid doors—visible from the street; two watchmen keep watch and ward within, and two without, and to obtain access to the vaults, the combination of three different persons—the President, secretary, and safekeeper—in necessary. Suppose I wish to hire a safe. I go there, and in the first place am required to have myself identified by some person of respectability known to the company, in order to make sure that I am the person whose name I give, and that I am a person of good character, and likely to want the safe for proper purposes. This done, a page in a great book is given up to me. Here is inscribed my name, my age, my occupation, my address, my height and weight, and a full description of me; the character of my face, the colour of my eyes and hair, the impression produced by my nose, and any peculiarities, such as marks or scars, that may be apparent. If I have no such marks visible, I am asked to mention and show any there may be on any easily accessible portion of my person, and of these a description is also put down. I then choose a pass-word, for which I may be called upon, if thought necessary, when I seek admission, and I choose one, and it is set down. I then select my safe from amongst those that are vacant, and am furnished with a small flat key with a number on it, which is, however, not the number of the safe, so that anybody who found it could make no use of it. I purchase a tin box from the company, which exactly fits the safe, and in it I deposit my valuables. I may come and examine it as often as I please; if the officer outside knows me by sight he at once accompanies me into the vault; if he does not know me he looks me up in the book and tests me, and then removes the cap from my keyhole with his little key. I open the safe with mine, and take out my box, locking the safe after me. But as the vault is not a proper place to examine my papers in, I pass into a room adjoining the main office, where I find several long rows of desks, with stalls on them marked off by high partitions. In one of these I insert my box and my head, and produce my securities. If I wish to cut off coupons I find a pair of scissors, hanging by my side; if I want to know where and at what dates the dividends or interest of the principal stocks and bonds are payable in New York, I find a book close by in which it is all set down; and if I wish to make memoranda, I find pen and ink on my desk. Having finished my examination, I replace my papers, and set out on my way back to the vault, but go along a passage fenced in from the outer office by a tall and close iron railing or wire work, so that nobody from the outside can “grab” my possessions. But I find the company has suspicions of me too. I may have robbed some of my companions in the examining room, and it will not do to let me pass suddenly out or it; so I find my progress arrested by a gate, which can only be opened from the outside, and through and over which a full view of me is obtained by the porter in charge of it. I again enter the vault, accompanied by the keeper, deposit my box in the safe in his presence, and march off.

Now the company does not offer you any legal guarantee for the safety of what you place in these safes. As they have no knowledge of what you keep in them, to offer to become liable for the contents would of course expose them to innumerable fraudulent claims, and a combination amongst the principal officers undoubtedly might bring about a robbery. The advantages of hiring a safe are that you have one to yourself, of which you hold the key, and that extraordinary precautions are taken by men of undoubted character to prevent anybody but you getting access to it, and that the whole concern is occupied with nothing but keeping watch and ward. In short, the security is as complete as is consistent with giving you unrestricted and uninspected access to your property. The extent to which these safes are now used by professional men, ladies, and annuitants of all kinds who have no offices or means of security of their own, is very great.

Should you, however, not wish to hire a safe, and desire to have the company liable for the safe keeping of your property, you have simply to take your bonds, or stock, or other property down and present them, and take a receipt for them, and pay one dollar a thousand per annum on their nominal value, and the company will charge itself with their safe custody, will deliver them to you on demand, and will, if you desire it, collect the interest or dividends on them, and forward to you. If you wish to deposit plate or jewellery with them, you can put it in a box, seal it with your seal, and they will receive it, charging you one per cent. per annum on the declared value of the contents—the valuation they leave to yourself—and undertake to return it to you with seals unbroken. To persons leaving town for the summer, or going abroad, this furnishes an invaluable resource; in fact, there is no species of valuable property of small bulk of which they are not made the custodians. The business is growing rapidly, and nothing has as yet occurred to shake people’s confidence in it. I have described, as I have said, the office of which I have personal knowledge, and which was the first started; there are others with better accommodation. Of course, however, there is no use in trying to start such an enterprise unless men of the highest commercial standing can be secured for the board of direction.

#### THE EUROPEAN ASSURANCE SOCIETY.

On Saturday morning the petition of Mr. Robert Crawford for the winding up of the company came before Vice-Chancellor Sir W. M. James upon an application that Mr. Henry Lake, the manager, now in course of being cross-examined upon oath before the special examiner, might be ordered forthwith to produce book, and documents relating to the matter in question. The petition, which was presented on the 21st of September, describes the petitioner as a contributory, and also a policy-holder of the company.

Mr. Kekewich, in support of the motion, stated that the cross-examination was practically stopped by Mr. Lake’s refusal to produce the books and documents from which the petitioner was desirous of providing his allegation that the available assets were insufficient to meet the liabilities.

Mr. Glasse, who with Mr. Miller represented the company, took a preliminary objection to the title of Mr. Crawford to be heard as a petitioner. Mr. Crawford was a shareholder and a director, and like all the other shareholders was bound by the deed which declared that two successive extraordinary general meetings should, provide a majority of at least two-thirds in number of the shareholders personally present should be in favour of a dissolution have full power at any time to resolve upon a dissolution of the company. There had been no attempt to hold a general meeting for the purpose, and even if the court were not disposed to dismiss the petition of a shareholder presented under such circumstances, the hearing ought not to be proceeded with till the preliminary steps prescribed by the deed had been taken, and the sense of the other shareholders and policy-holders ascertained with regard to the propriety of winding up. The capital of the company was 1,000,000l., divided into 400,000 shares of 2l. 10s. each, and there remained unpaid something like half a million, which afforded ample security for the policy-holders. Even if it were not for the deed of settlement the court had no power or jurisdiction under the Act of 1862, to interfere in this matter, there being no evidence whatever that the company was unable to pay its debuts beyond the statement of the petition.

Mr. Fry (with whom was Mr. Bevir) stated that he appeared for the holders of nearly one-fourth of the shares and about one-eighth of the policies, and concurred in Mr. Glasse’s objection. Each shareholder had contracted with every other shareholder that no dissolution of the company should take place, except upon the judgment of two-thirds of the body at two successive meetings, and therefore the court had no jurisdiction at the instance of a shareholder to order the winding up.

Mr. L. Webb, on behalf of a number of policy-holders, pointed out that there was nothing in the petition to show what amount Mr. Crawford had paid upon his shares, and it had been held that a shareholder upon whom no further call could be made was not in a condition to present a winding-up petition.

The Vice-Chancellor was of opinion that the objection could not hold. The petition alleged that the company was insolvent and unable to pay its debts, and if that were made out at the hearing the case would come within the Act of Parliament, and the court would have power to make the winding-up order. The only question was whether there was anything in the deed of settlement which would preclude the right of a particular person to avail himself of the law which made joint-stock companies liable to be wound up on the petition of a creditor in certain cases. It must be made out very clearly indeed that a man was precluded from applying to the court before a judge could hold that he was deprived of his legal remedies. In his opinion the true meaning of the clauses which had been cited from the deed was that the company was not to dissolve itself without complying with the conditions laid down, and that they did not preclude any individual from availing himself of the provisions of the general law, which were in fact incorporated with the deed of settlement.

Mr. Glasse—Then I ask your Honour to hold your hand in the matter till there has been a meeting of the shareholders.

The Vice-Chancellor—I will hear the motion opened.

Mr. Kekewich said the motion was that all books and papers relevant to the inquiry should be produced before the special examiner. Mr. Lake had declined to produce the documents, stating that they were in the custody of the company, who by their counsel had positively refused to produce them except under the order of the court. The notice had been framed in a general form which had been found useful in other cases, but he should be prepared to mention before the examiner each document that was required, so that there might be a fair discussion as to whether it was important or not. Mr. Lake had admitted that there was a claim book, and one of the principal allegations of the petition was that there were claims now payable or about immediately to become payable to the extent of 119,000l., while there was not in the bankers’ hands more than 10,000l. to meet them, and there were no other available assets. It was admitted that the claims did amount to something of that kind, but the company tried to make out that some were not admitted, and that others would not become payable for a short time. He believed, however, that they admitted 60,000l. to be due at the present time, and that they had not more than 12,000l. at their bankers.

The Vice-Chancellor—I suppose that Mr. Lake has got the personal control of these documents as servant of the company. I see the notice is addressed to him.

Mr. Kekewich said it was addressed to Mr. Lake, to all the directors by name, and to the solicitors of the company, and the counsel appearing before the official examiner, for Mr. Lake represented the company also. Moreover, the affidavit on which the cross-examination was proceeding stated that it was filed on behalf of the company; and there was not one statement in it that was worth anything unless it could be proved from the books.

The Vice-Chancellor thought when the application for the production of the books first came under his notice that the petitioner might have trusted to the effect upon the judicial mind of the refusal to produce evidence in contradiction of his allegations.

Mr. Kekewich said the company did not exhibit a single book.

The Vice-Chancellor observed that cross-examination before special examiners generally went to an inordinate length.

Mr. Kekewich said his clients wished to have the whole matter fully investigated, and would have been glad if the cross-examination could have been taken in court.

The Vice-Chancellor—I understand, then, that you are not prepared with the present material to go on with the petition.

Mr. Kekewich had got secondary evidence in support of the petition, but the statements were entirely founded upon documents which the company would not produce.

Mr. Glasse did not want to make evidence for the petitioner, and therefore declined to produce the books unless compelled to do so by the court.

Mr. Kekewich said if his Honour thought the company ought not to be called upon to produce the books publicly, a provisional liquidator might be appointed to examine them.

The Vice-Chancellor remarked that the appointment of a provisional liquidator would be in the nature of a judicial decision that liquidation was necessary.

Mr. Kekewich was of opinion that the court might, for the protection of the assets, make such an order.

Mr. Whitehorne suggested that an accountant should be appointed with the consent of all parties to examine the books.

The Vice-Chancellor—I should suppose that Mr. Crawford, as a director, has a right to see every book of the company.

Mr. Kekewich—He swears positively that he is not indebted to them, as they allege, and that he has called on that account to inspect the books, and has not been permitted to see them.

Mr. Glasse said that no individual director was entitled to see the books except at a board meeting.

The Vice-Chancellor—How can a director perform his duties if he is not?

Mr. Glasse—If he is, there is an end of this application.

Mr. J. N. Higgins said he appeared for another petitioner, and it had been agreed that the same order should be taken on both petitions.

Mr. Glasse observed that if the court were to order a general meeting to be called under the 82nd section of the Winding-up Act, every shareholder would have the right to inspect the books.

Mr. Kekewich said Mr. Lake had sworn that in the present year an advance of 15,000l. had been made to the company by their bankers, almost contemporaneously with the call, and that letters had passed between the bankers and the company. The present proceeding was in the nature of a bill filed by Mr. Crawford against the company, for taking the accounts of this large partnership, and upon a bill filed for the purpose the court would at once make an order for the production of the documents.

The Vice-Chancellor—Has application ever before been made to the court for the production of books under similar circumstances?

Mr. Glasse—Never before the winding-up order.

Mr. Kekewich said it had not been necessary, because where large sums were going out and coming in, a provisional liquidator had been appointed to take charge of the books.

Mr. J. N. Higgins mentioned that in the case of the Credit Foncier and Mobilier, Vice-Chancellor Malins directed an inspection of the books, and the only difference between that case and the present was that a voluntary winding up had been resolved upon, and the petition was to make it compulsory, or to continue it under the supervision of the court.

Mr. Kekewich submitted that his Honour had full power to make the order whether there was any precedent or not, but if there was any doubt upon the point, the object could be attained by the appointment of a provisional liquidator. Justice absolutely required that the books should be produced, and that these gentlemen should not be allowed to file a host of affidavits containing statements which were not verified.

Mr. Glasse asked the court not to make an order now which would have the effect of a winding-up order, without giving the company the opportunity which the law allowed of considering the property of going into liquidation. The notice was informal, inasmuch as it failed to specify the documents required, and would be in effect equivalent to a bill of discovery; and the court had no jurisdiction to require the production of documents until after a winding-up order had been made. It was asking the court for an order to enable the petitioner to make out his case.

Mr. Millar said that in the seven years of hostile and often speculative litigation which had followed the Act of 1862, the court had never yet made an order for the production of documents in support of a winding-up petition. When the matter came on for hearing, the company would meet the case in the most liberal, generous, and straightforward spirit. The directors having been most shamefully attacked in the newspapers, had taken the earliest opportunity of putting an affidavit on the file, in which they stated that, to the best of their belief, no inspection of any books, accounts, or documents of the society, or any explanation was asked for by, or on behalf of, the petitioners till after the petition was filed; that the shareholders had always expressed satisfaction with the conduct of their directors, and a large number of shareholders and policy-holders had very recently declared their unabated confidence in the board. The affidavit further asserted that when the petition was presented the company had 17,000l. at its bankers, and that Mr. Crawford was indebted to the society. The directors expressed their belief that a party had been organised to create a panic in this and other insurance societies, and that this was a mere fishing attempt to prolong the exanimation of witness, in the hope of eliciting something which would justify the filing of the petition.

Mr. J. N. Higgins stated that in the case of the petition he supported a subpoena duces tecum had been issued, under the Chancery Amendment Act, requiring the manager to attend the examination and produce accounts.

The Vice-Chancellor said the ordinary practice upon a bill of discovery was to order the defendant within a certain time to make affidavit showing what books and documents he had in his possession relating to the matters in question, and to produce them, unless he should show cause to the contrary. No such order had, however, been made upon a petition to wind up, and he felt loth to make a precedent of the kind, especially having regard to the fact that if he made the order he would probably have to suspend its operation to enable the opinion of another court to be taken upon it. Moreover, it would be a strong measure to require every one of these-large companies, the moment a petition was filed against them, to produce every book and document which the petitioner might suggest as relevant to the inquiry. With regard to the subpoena duces tecum, it ordered the manager to produce documents which were in the custody of his masters, and which he could not produce without their direction; and the matters scheduled showed to what a very wide scope it was intended to carry the inquiry. He should make no order on either notice, but left it to the directors to consider what course they would take, knowing the effect it must have upon their evidence if the books were not forthcoming.

Mr. Kekewich asked that the undertaking of the defendants to carry all moneys received to a separate account should be continued till the hearing of the petition.

The Vice-Chancellor said he put them upon the undertaking with a view to the appointment of a provisional liquidator, but it had been decided that he had no power to make such an appointment, except with the consent of the company.

Mr. Glasse said there were certain claims which it was necessary to the carrying on of the business should be met from day to day, and there was no intention to give an unfair preference to any creditors.

The Vice-Chancellor, as those who presented the petition were not in a condition to have it heard, declined to make any order tying up the hands of the company.

Some conversation then took place as to the day on which the petition should be proceeded with, and ultimately the hearing was fixed for Wednesday, the 13th inst.

##### THE COMMENTS OF THE “TIMES” NEWSPAPER.—CONTEMPT OF COURT.

Mr. Glasse then moved that Mr. Goodlake, the printer and publisher of the Times, should be called upon to show cause why he should not be committed for contempt of court in publishing on the 23rd and 24th of September comments upon the matter of the petition. The comments were comprised in the City Article, and were to this effect:—“An assurance collapse, which has been apprehended for some weeks, and which it is feared may prove more disastrous than that of the Albert, has been announced. Two petitions were heard to-day before Vice-Chancellor James for the winding-up of the European Assurance Society, and it was ordered that the case should stand over until Saturday week, all receipts on account of premiums being meanwhile kept separate. The outstanding policies of the society are stated to be for an amount of between nine and ten millions sterling, in addition to which they are under contract for the payment of annuities, amounting, according to a recent statement, to 16,000l. per annum, but which are believed now to be considerably beyond that sum.” Further comments introduced a statement of the receipts and assets of the society, as well as an allusion to their having “absorbed 33 other companies, the great majority of which were, doubtless, got up by the usual adepts for the purposes of sale.” In conclusion there were the following observations:—“So far back as 1865 pamphlets were published to awaken the vigilance of all persons interested, and yet at the general meeting of the shareholders in March last there was perfect unanimity in denouncing the statements and motives of every one who had questioned the position of the society, and votes of thanks to all concerned were passed with acclamation. It is not the least lamentable part of the affair that the board of directors comprises the names of men of whose individual honour and intentions there can be no doubt, and who, partially ignorant of practical business, must have been grossly misled by more adroit persons.” These certainly were not comments that ought to have been inserted, and he was astonished that a paper like the Times, when its attention was called to the matter, should not have taken the course which was followed by three other papers, of inserting some expression of regret. It had been said by Lord Hardwicke that nothing was more incumbent upon courts of justice than to preserve their proceedings from being misrepresented; nor was there anything of more pernicious consequence than to prejudice the minds of the public against persons concerned as parties in causes before the cause was finally heard. The decision of Lord Hardwicke had been followed by Lord Hatherley and Vice-Chancellor Malins in very recent cases, and the words used by the Times came fully within those decisions.

Mr. Wood, who appeared for the publisher of the Times, submitted that every word of the article could be justified by statements already published by the company themselves. He did not see, therefore, how the Times could withdraw the statements. Suppose it were a libel against the company, then it could be punished in a court of law, but it was no contempt of this court to put forward true statements and to comment upon them without any malicious intention, but merely for the purpose of giving information to the public.

The Vice-Chancellor said the attempt at justification only increased the fault committed by the Times. The question was one of prejudicing the minds of the public against persons concerned in the suit, and not whether the statements were true or not. He had no doubt these comments were calculated to have the effect of influencing the minds of the public and the decision of the court, and they came within the principles always acted upon, and constituted an interference with matters pending litigation. The press must learn to restrain their observations until after the hearing of the suit. He did not understand even now that counsel for the Times was instructed to express regret for the insertion of such comments.

Mr. Wood said that he was instructed to express regret at the publication, and to give an undertaking that it should not be repeated.

Mr. Glasse said he would be satisfied if an undertaking were given to state in the Times City Article that the comments in question were inserted through inadvertence, and the defendants paid the costs of the application.

The Vice-Chancellor—By their counsel they express in open court their regret for having been guilty of contempt, and they will, of course, have to pay the costs. I am not aware that the court has ever put persons upon terms of publishing an apology in such a case.

Mr. Locock Webb moved, on behalf of the company, for an injunction to restrain the defendant, Mr. Crawford, from parting with, destroying, or mutilating a certain agreement entered into by him for the lease of certain premises occupied by the European Assurance Company. It was stated in support of the motion that Mr. Crawford had been instructed by the directors to look out for new offices, and to make arrangements for leasing them; that in pursuance of these instructions he had negotiated with the owner of certain premises, and had entered into an agreement with him for a lease at a rental of 180l., and that he subsequently made an agreement with the company in his own name to let to them the same premises at a rental of 650l., by which he had made a considerable profit on his own account; and further, that he had required payment of 150l. in consideration of some expenses alleged to have been incurred by him. The plaintiffs apprehended that Mr. Crawford would destroy or put away the original lease of the premises to prevent its being seen by them, and consequently they asked for an injunction to restrain him from so doing.

The Vice-Chancellor said there was no equity for coming to the court for an injunction to restrain a man from parting with or destroying an agreement upon the mere allegation that he intended to do so. There was no evidence in support of the case, and the motion must be refused.

NEW YORK, SEPT. 29.

I, who have neither gold to sell nor anything wherewith to buy that useful commodity, have been of late almost pestered out of my life by hearing from morning to night nothing—in hotels, in private houses, in railroads, and in steamers—talked about but gold. I have positively sometimes almost believed myself to be a millionaire from living in this atmosphere of gold and golden promises. The fluctuations in the price of gold have been so great, and it has appeared so easy a thing to make a few thousand dollars in the course of a morning, that all the inhabitants of this city have been bitten with the gold-gambling mania. Are you “short” or are you “long”? is a question which has superseded “Good day” when friends meet. I called a few days ago upon a young lady, aged 18, in whose virgin bosom I imagined I had inspired an interest, not to say a tender one. I found her elated, and imagined that my visit was the cause. Not at all: she had been a bear, and had made several hundred dollars. The cause of this mania was the attempt of a powerful combination to raise the price of gold in the market, and the desperate effort with which those who were not in the clique resisted them. One day the “bulls” would push gold up several points; the next day the “bears” would drag it down again. But for the last three weeks the “bulls” have had it all their own way. The price of gold has steadily advanced. The facility with which united action may produce this result is one of the consequences of the United States Government continuing long after the necessity for such a system has passed to make their 70,000,000l. inconvertible greenbacks legal tenders. The transactions of the New York Gold Room on certain days have exceeded 500,000,000 dollars, and as there are only about 15,000,000 dollars of gold in the city, any body of men who are able to lock up the greater portion of this amount, and then to sell daily gold in large quantities, and call for a settlement of the difference, or its delivery, must, if they have sufficient funds at their disposal to resist opposition, realize vast sums by the speculation. This fact occurred to Mr. James Fisk, of Erie Railroad notoriety, and he proceeded to form what is called a “ring,” to buy gold, having first, through the action of several banks which he and his friends controlled, rendered it scarce. Day after day the price of gold advanced; all that was thrown upon the market was bought up by the clique. In vain appeals were made to the Secretary of the Treasury to relieve the stringency by selling his surplus gold. He refused to interfere. On Thursday gold had reached 145, and on Friday morning there appeared no reason to doubt that the clique would carry out their boast of putting it up to 200. That day had been fixed upon for the final tug of war between the bulls and the bears, and in order to witness it I went down town at an early hour. A dense crowd already filled Broad-street, although the Gold Board had not commenced operations, and seedy individuals were offering recklessly to sell millions to anyone who confided in their solvency. I soon found a friend who took me into the Gold Room. It somewhat resembles a circus; in the middle there is a fountain, which falls into a large basin, around which is an iron railing about 100 feet in circumference, with a space of some 20 feet between the walls and the basin. Before the fountain sits the secretary recording sales, and by his side is a telegraph clerk. Wires run from the telegraph to about 500 brokers’ offices, who are thus able, if they prefer it, to make their bids without appearing on the scene. On one side of the room there are two galleries, one for spectators and the other for errand-boys, and from this latter I surveyed the fray. For about half an hour after the opening of the Board there was not more noise than in the London Stock Exchange; but this comparative calm did not last long. Gold went rapidly up to 160, and the respectable and well-dressed crowd below me degenerated into a wild, surging mass of shrieking fiends. Men were hanging on to the iron railings; standing up on the window-sills; some were fighting to get in; others were fighting to get out; all were screaming, gesticulating, and thrusting each other out of the way; while those who had managed to get to the iron railings were shaking their memoranda and howling at each other. Gold was at 160; the bears were worsted, for a margin of 25 per cent. had been exacted on all operations, and this margin had now been exceeded. They still desperately held their ground, and, with purple faces and eyes starting out of their heads, yelled defiance; but they felt and knew that their last financial hour had sounded, and that nothing remained for them but to die game, for their ammunition was all expended, when—like the Prussians at Waterloo—just in the nick of time, the Secretary of the Treasury poured in reinforcements. He had at length yielded to the applications which had been made to him by the respectable merchants of New York and other important towns, and let loose the gold stored up in the Treasury. At the same time it was rumoured that Baring Brothers had telegraphed to their agents here to endeavour to stem the upward current by large sales—the bubble had burst—in half an hour gold tumbled down to 135—and the bears, so lately in the agony of despair, literally danced with delight. One old gentleman I watched leaping up in the air for five minutes at least, and clapping his hands over his head. As for the poor bulls, but a few minutes before so jubilant, they appeared stunned by the blow which had converted their victory into defeat. One leading broker, who had remained calm and collected during the battle, now began wildly to offer to buy gold at 170. His friends got him away, for his mind had gone. But now a new element of disorder was imported. The Gold Exchange Bank, where almost all the brokers keep their accounts, refused to pay any further cheques until they could ascertain the precise standing of their customers, and thus virtually suspended. It was noised about, too, that many of the prominent bull-brokers would be unable to meet their engagements, and that Fisk, the chief of the bull-ring, refused to recognise sales made for him and his party on verbal orders. This damped the triumph of the bears: none could tell whether he was a rich man or a beggar. Those who had sold gold above 150, and bought it below 140, now felt that they had built their castle on the sand, and that very possibly they had lost their fortunes instead of doubling them. In vain the leading bulls now offered to buy at 160; none would sell to them at the price, while the bears were selling to each other at 135. The fight was over, and I left the battle-field with the conviction that 500 human beings, in a frenzy of avarice and greed, is the most repulsive sight it is possible to imagine. When I emerged from this pandemonium Broad-street was full of people, eagerly gazing at the indicator outside the building, which marks on a dial the price of gold. Crowds were endeavouring to force their way into the offices of the bull-brokers who had suspended, and were resisted by posses of sheriffs’ officers, who had been sent for to keep the peace. The largest and most noisy crowd were round the doors of James Fisk. That worthy had invited several blonde beauties of questionable virtue to see him smash Wall-street, and these frail goods were just driving away amid the yells of the crowd when I came up. On their departure there were loud cries for the great man himself. After a few minutes, as it appeared probable that if he did not come out the crowd would come in, the door opened, and he stepped forth. He is a young man, stout, and with curly hair, and dressed in the extreme of the fashion. He commenced a speech, of which, of course, not one word could be heard; but his eloquence was soon effectually cut short by some one, probably a holder of Erie stock, hitting him a blow between the eyes. Fortunately for him a large body of police came up at this minute, who dragged him within his door, and closed round it to keep out his assailants. As nothing more was to be seen, and as the crowd was rapidly assuming the apathetic and patient air of persons who stare at a house in which a murder was committed two days before, and as it did not appear likely that any one would be hung, I went home to dinner.

SEPT. 30. To-day the Gold Board has passed a resolution adjourning over until Monday, and all outward manifestations of excitement have disappeared. The bull broker offices are still guarded by sheriffs’ officers. The shutters are up at the Gold Exchange Bank, although the directors announce that they will resume business on Monday. No one seems to know who has failed, and who has weathered the storm. James Fisk has gone into that somewhat vague place—the country. The newspapers are full of articles protesting against the iniquitous conduct of the “men who combined to disturb the commerce of the country by an unprincipled attempt to force up the price of gold;” although it is difficult to understand why, if the law makes gold coin a commodity to be bought and sold, they had not a perfect right to turn that law to their own advantage. It is to be hoped that the common sense of the nation will go to the root of the evil, and put an end to a system which enables half-a-dozen men to raise in a day the value of all commodities by twenty-five per cent. A country cannot make itself richer by agreeing to call counters money. It would have been far better if the inconvertible greenbacks had never been issued. They have inflated prices, raised to an artificial standard the price of necessaries and wages, depreciated the credit of the country, destroyed fixity in values, and only promoted reckless speculation. No doubt that an attempt to withdraw them at once from circulation would precipitate a commercial crisis; but the policy of Mr. Macculloch, gradually to call them in, ought never to have been overruled, and must sooner or later be resumed. Their place would speedily be taken by the national currency, secured by the deposit of Government securities, and the amount of notes necessary for the commercial transactions of the country would then regulate itself. Many of the leading men in the South are recommending their States to resume specie payments in all their transactions. They consider that this policy would attract capital to their section of the country.

#### THE ALBERT LIFE ASSURANCE COMPANY.—

An application was yesterday made to Mr. Leman, the chief clerk of Vice Chancellor James, by Messrs. Brandon, to appoint Mr. Chatteris, the accountant, as “representative” of the policy holders, at the expense of the company. It was supported by policy holders to upwards of 400,000l. Mr. Mackenzie, for policy holders representing 2,000,000l., opposed the application, and asked that a committee should be appointed at their own expense. The goodwill of the company was valuable, and should be realised. Mr. Lindo proposed Mr. Alfred Good on policy holders to 9,000l. at some length. Mr. Lattey represented Indian policy holders to 2,000,000l., and supported the application of Mr. Mackenzie. Messrs. Lewis and Munns opposed Messrs. Brandon’s application. Mr. Brockbank, for the liquidation, objected. A long discussion followed, and ultimately the chief clerk dismissed the summons of Messrs. Brandon, and said all parties must go before the Vice Chancellor on the question.

#### ALBERT ASSURANCE COMPANY.—

An adjourned summons was yesterday heard before Mr. Bloxam, the chief clerk to Vice-Chancellor James, being an application by Mr. Welford for an order to inspect the deed of settlement of the Kent Mutual Assurance Society, which was in 1865 amalgamated with the Albert Company. Mr. Tucker, on behalf of Mr. Welford, stated that the Kent Mutual Company’s business was sold to the Albert Office without the concurrence of his client, and on the stoppage of the latter company, counsel’s opinion was taken as to the course Mr. Welford had best pursue, and an inspection of the deed of settlement of the Kent Mutual was advised in order to determine future action. Mr. Musgrave, of the firm of Messrs. Lewis, Munns, and Co., solicitors to the liquidators, opposed the application as being inconvenient and unnecessary. There were 22,000 policy-holders, and each had as great a right as the present applicant to inspect deeds in the custody of the liquidators. It was manifest, therefore, that serious delays would occur in the winding up of the company if these irregular applications were granted. The Chief Clerk said that no ground had been shown sufficient to authorise him to make the order asked for. The judges seldom allowed inspection of documents until litigation had commenced, and it would be unfair to permit an inspection for discovery such as this would be. The summons would be dismissed with costs, but an appeal to the judge would be allowed, if applied for within a reasonable time. Mr. Musgrave then applied that Mr. Price, the official liquidator, should be allowed to retire from the provisional liquidatorship, on the accounts being carried in. This matter was ordered to stand over. Mr. Musgrave then said the liquidators were endeavouring to carry out an arrangement with another assurance company for the transfer of some of the business of the Albert Office, and wished to go before the judge to-morrow upon the matter. The Chief Clerk gave his assent to this course.

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