Aus:
The Money Market Review, 23. November 1867. S. 534/535.
Schließen

Bk. o. Europe stopped payment 19 May, ’66. It was first known, for brief period, als „Union Bank of England and France“. Its prospectus appeared November 1862, and it proposed to raise a capital of 1 Mill. £ in 10,000 shares of 100£ each, in order to meet „the growing wants“ of the extended trade between England und France expected to arise out of the commercial treaty with France. Schon its birth shows extraordinary disposition to appropriate or „take over“ other people’s businesses instead of minding its own, by „taking over“ an existing business which had been established for several months. After carrying on business mit moderate success for about 7 months, this Union Bk. o. E. and F. contemplated another union, found in the „English, Belgian, and Netherlands Bank“ a mate in every way worthy of its alliance. This latter lady was somewhat younger than the intended spouse, its prospectus having only appeared in March 1863. It was first the „English and Belgian Bank“ only, but agreed to embrace the Netherlands also; with Capital of 1 Mill. £, in 20,000 shares of £50 each. Before it had organised commencement of its business, invited to alliance mit der Union Bank, Sept. 1863 definitively amalgamated. Henceforth the 2 wedded Cos took the title of „European Bank“, mit united Capital of £2,000,000, in 40,000 shares of 50£ each, of which 20,000 had been subscribed, £10 p. share paid upon them, zusammen £200,000. The amalgamated Co. had commenced business in October 1863 und in May 1864 they concluded an arrangement for the amalgamation with them of the „English and Irish Bank“. This Bk. established in Nov. 1862, Capital 2 Mill. £, in 20,000 shares of £100 each, of which 7,282 shares had been subscribed. Board composed of Sir Robert Walter Carden , chairman, Alderman Rose, then Lord Mayor, and a number of other city men of commercial repute. Had for some time some success, very moderate too. Concern now „European Bank“, nominal capital of 2 Mill. £, of which 34,443 shares subscribed, and £10 p. share paid thereon, making paid up capital of £344,420. Now amalgamation arranged mit London, Birmingham, and South Staffordshire Bank – a Co. started in Dec. 1862 mit Capital of 1 Mill. £, in shares of £100 each, had commenced business in Cheapside in early part of 1863 mit paid up capital of £120,000. Result of this last operation: Nominal Capital of the European raised to 42,966 shares, 15£ p. share paid, paid up Capital of £644,490. Accounts of June 30, 1865 show that the Bk. was then doing a considerable business, deposits über £780,000 und bills payable über £844,000. On 31 Dec. 1865 balance sheet showed deposits to £1,138,319 und bills payable £974,520. In June 1865 dividend paid 5%, in December ’65 3%, zusammen 8% p.a. und Reserve of £45,000. Shares, nevertheless, fell to heavy discount in 1866, und in Folge von call of £5 per share still lower; 19th May 1866 Bank stopped payment. Now what has become of the large paid up Capital of the Co. and its Reservefund? Mr.  Conrybeare Conybeare at the meeting of 19 Nov. ’67 said: „the manner in which this Bank had been conducted, was a disgrace to the mercantile community.“ Liquidation had gone on for 12 months, creditors had only yet received 5s. in £. Sir R. W. Carden , he said, one of the directors, ought to be removed from the liquidation. Mr. Kintrea (also a shareholder) said: In the last balance sheet said that the concern was paying 10%, and was in a position to pay other 10%, „but that document“, inducing many to buy shares, „one of the grossest illusions perpetrated. He, for one, desired to bring the directors to a court of justice, to compel them to repay him“. Charges against the directors, besonders the chairman und Sir R. Carden of the gravest character. Mr. Finley said that at the very last meeting of the Co. he was advised by the directors to buy more shares. The chairman of the meeting said that „he had called upon Sir R. Carden on the day before the day on which the Bk. stopped payment, and that Carden had then assured him, on the honour of a gentleman, that the Bank was perfectly sound“.

Mr. Hoskins, another shareholder said that in 1866 Charles Bye Colchester, the Chairman of the Bank, had stated that „the Bk. was in such a prosperous condition that he would recommend anyone who, as a trustee, had funds to invest, to invest them in this Bank“. On his question to Colchester what their liabilities were on Foreign Securities, he stated them to be between £70 and 80,000, whereas it now appeared that they were at the time £280,000.

Aus:
The Money Market Review, 23. November 1867. S. 546/547.
Schließen At the meeting der shareholders (19 Nov.) chairman Potter said: Carden had told them they would have von £7 to 10£ per share of their capital returned to them. Stattdessen they were called upon for instalment of £2. 10s. to meet their liabilities, other calls would follow in quick succession. Oliver says: all the original directors of the European Bank , who were so at the time of the amalgamation, had all withdrawn, except Thompson. They had also, at different periods, got rid of their shares. The „English und Irish Bank“, when they absorbed it (June 1864) had up to that time paid no dividend but incurred losses etc. At last meeting, March 1866, Sir W. Carden presided, made highly favourable statement, dividend 6%, Reserve fund 13–14,000£. A retired colonel bought 100 shares on Carden’s Representations. Harding und Morgan, their auditors, at same meeting told, that they were doing profitable business. It was necessary to investigate the transactions with M. Lafitte et Co und namentlich mit der St. Nazaire Co. Die original proprietors der St. Nazaire Co were 8 men, seven of whom held 1 share each; und advance of £120,000 made to it before it was registered. It now appears that another Co. puts in a claim to the land assigned to the Bk. as a security for the advance in question, und die St. Nazaire Co., instead |282 of aiding the Bk. to realise that property, turned round and said they considered they were freed from all liability, since the suspension of the European Bank had led to their embarrassments. … Since it became known that a call of £2. 10s. was about to be made, a great many shares had been transferred to men of straw. There were 2 or 3 clerks in the office whose names now on the register for a large number of shares. One held 200, another 250 (a nephew to Colchester who never held a share while the Bank was a going concern, diese 250 shares). Colchester selbst (der chairman) »who held 2,467 shares, does not hold a single share now.« Kintrea (shareholder) says: „Colchester the high priest of the sacrifice of the Bank; was it true that for getting the advance made to the St. Nazaire Co. he obtained 600 paid up shares in that Co … During the whole time the shareholders were being propitiated by high dividends und deluded by favourable statements, they made loss after loss. There was so much rottenness und foul play going on in the management of the concern that it was questionable if a criminal court was not the proper tribunal to inquire into what had taken place.“