STOCKBROKERS' BIG FAILURE.

Press, Volume LVIII, Issue 17395, 4 March 1922, Page 11

STOCKBROKERS' BIG FAILURE.

THE AFFAIRS OF GERARD BEVAN. FORTUNE MADE AND LOST. (By Cain*—Prfas 4MociStioo— Copysilkk.) (Unifad SerrioeJ LONDON, March 2. How Gerard Bevan, chairman of the City Equitable Insurance Company, who disappeared front London after the company's failure, amassed a largo fortune in (iho post-war boom and lost it in the subsequent slump, was revealed at tlio Bankruptcy Court's enquiry into the affairs of Ellis and Co., the second oldest stockbroking firm in the city, of which Bevan was the principal partner. Tho other partners made statements that Bovan, in 1914, held 51 per cent, of the firm's capital of £200,000, but lie held £1,000,000 in 1921, whereas his partners' holdings Avero unaltered. Bevan controlled tflio financial operations, from time to timo reporting transactions of millions in connexion with new industrial issues. His partners disliked these largo commitments, but did not interfere until the spring of 1020, when Bevan promised to discontinue them, but ho resumed his old ways without consulting them. In the meantime, Bovan. made a fortune, while they were no richer. On the. contrary, compared with pre-war times, thfiy lived more economically. They had ho idea of trouble until January 10th, when Bevan asked to eeo the parners, but did not attend the meeting, sending a message saying that "It does not matter, as a lot may happen m tho next forty-eight hours." The receiver announced that the gross liabilities were £2,000,000," of which £536,000 had teen proved by the Eouitablo and ottocr companies with which. Bevan was connected. The assets were £47,500, plus book debts which would realise £300,000. The partners attributed the crash to the heavy depreciation of industrial securities in lfi2l, the immediate oause being the oollapso of the Equitable Company, in which, they Tfere large shareholders. The man attested at Naples (has convinced tho polioe that he is wit Bevan. The latter is still in concealment in the neighbourhood. The affairs of Mr Gerard I>. formerly chairman of the City Equitable Fire Insurance _ Company and the other companies with which he was connected. Ihafe been responsible for some interesting revelations during tho last month. Following the winding up of the City Equjtabie Company it.was announced that Bevan had disappeared from London, his wife explaining that be / had gone abroad under his doctor's orders. Later, it wae announced tHt, at tho instance of the chairman of vho City Equitable Company, a warrant had been issued for the arrest of Bevan_ for alleged fraud. Tho official receiver authorised an stating that the immediate causes of th© company's difficulties were highly specular tive financial dealings undertaken largely by BeviUi. Many of the investments, 1 he Said, were wholly unsuitable to an insurance "company business, and tho balance-sheet issued in February, 1920,, did not disclose the company s true position. A message on February 16th said * sensational sequel to the liquidation of the City Equitable Company was tfhe failure of tho Stock Exchange firm of Ellis and Company, of which the senior partner was Mr Gerard L. Beran. ; fll]i3 and Company wore one of the Oldest and most prominent stockbroking firms in the city. Established nearly 150 yaars. they raised a loan of £21.000.000 to finance the campaign against Napoleon in 1814. ! Bevan had a remarkably successful financial career in the City until 1939. He was a director of numerous companies, and belonged to a familv of tho highest flrfa'ncial repf.te. His deceased father was formerly chairman of a bank, and he had relatives occupying prominent financial He majried a niece of the Into Mr Joseph Chamber- i lain. A message frotrt Home on Fehru- ! ary 27th said tho Spanish Consul at Naples refused to grant Beran a passport to' visit Constantinople. Bevan then approached the British Consul, who impounded his passport and his arrest impending.